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The Department of Justice (DOJ) has found probable cause to charge businessman Cedric Lee with tax evasion.
The DOJ found probable cause to indict Lee, president and chief executive of Izumo Contractors Inc.; Izumo chief operating officer John K. Ong; and Lee’s estranged wife and Izumo chief financial officer Judy Gutierrez Lee for tax evasion before the Court of Tax Appeals.
The case involves an aggregate tax liability amounting to PHP194.47 million for taxable years 2006 to 2009, broken down as follows:
- PHP89.77 million for 2006
- PHP33.78 million for 2007
- PHP8.27 million for 2008
- PHP62.65 million for 2009
In a 14-page resolution obtained by ABS-CBN News, assistant state prosecutor Stewart Allan Mariano recommended their indictment. The recommendations were approved by senior assistant state prosecutor Susan Dacanay and prosecutor general Claro Arellano.
The case stemmed from a complaint filed by the Bureau of Internal Revenue (BIR), which alleged that Izumo substantially underdeclared its income for the said taxable years.
The BIR said Izumo received income payments amounting to P303.62 million for the said years, but declared only P72.22 million as aggregate income.
“Respondents Cedric Lee, Judy Gutierrez Lee and John K. Ong, as responsible officers of Izumo, committed the crime of failure to supply such correct and accurate information for taxable years 2006, 2007, 2008, 2009. Izumo Contractors Inc., as a corporation established under Philippine laws, is civilly liable for payment of income tax deficiencies for [2006, 2007, 2008, 2009] but respondents who are the responsible officers thereof are criminally and civilly liable for such infraction for aforesaid taxable years,” the resolution read.
Text: Ina Reformina, ABS-CBN News
Photo: News clip
This article has been re-published with permission from ABS-CBNnews.com.
