BIR slaps P194-M tax evasion raps vs. Cedric Lee, Izumo Contractors, others  

The Bureau of Internal Revenue is suing businessman Cedric Lee, who earlier figured in the mauling of showbiz personality Vhong Navarro, his company and others for supposedly not paying taxes to the tune of P194.47 million.

The bureau accused Izumo Contractors Inc., its president and chief executive officer Lee, chief operating officer John King and chief financial officer Judy Gutierrez Lee of willful attempt to evade paying the right amount of taxes and deliberate failure to supply correct and accurate information on the company's annual income tax return 2006 to 2009.

The BIR said those acts violated Section 254 and 255, in relation to Section 253(dl) and 256 of the amended National Internal Revenue Code of 1997.

According to the bureau, it received "confidential information" that Izumo Contractors had been remiss in settling tax liabilities. After a preliminary investigation that established a "prima facie" case of fraud, it issued a letter of authority to examine the company books and other accounting records.

Certifications secured by the BIR from clients of Izumo Contractor revealed the company had earned P302.63 million from 2006 to 2009.

Among its clients were the local governments of Butuan, San Juan City, Pasay City, Davao del Sur, and Tagudin, Ilocos Sur.

However, the company declared an income of only P76.22 million from 2006 to 2009, according to the BIR.

"A comparison of the gross income declared by Izumo in the said years as against the income it received... revealed that Izumo deliberately failed to declare its correct taxable base," the BIR said in a statement.

The bureau said Izumo Contractors underdeclared its income by P88.79 million in 2006, by P36.93 million in 2007, by P9.49 million in 2008 and by P91.20 million in 2009.

"Under declaration of taxable income by more than 30 percent is considered substantial and constitutes a prima facie case of fraud tantamount to tax evasion," said the BIR.

The bureau said Izumo Contractors had incurred a tax liability of P194.47 million, including surcharges and interest.

In January, Lee was embroiled in the mauling of Navarro inside a condominium unit at Forbeswood Heights in Taguig City.

He is currently facing criminal complaints for illegal detention, serious physical injuries, grave threats, grave coercion, illegal arrest, and blackmail. He has denied all charges. – Mark Merueñas/VS, GMA News