Tax appeal court affirms guilty tax evasion verdict vs beauty doctor Mendez

Photo from Court of Tax Appeals website

MANILA, Philippines—The Court of Tax Appeals (CTA) en banc affirmed the decision of its second division finding beauty Dr. Joel C. Mendez guilty of tax evasion.

In a 41-page decision, the tax court through Associate Justice Olga Palanca Enriquez said Mendez is guilty of violating Section 255 of the National Internal Revenue Code or failing to make or file his tax return in 2002-2003 and failing to supply the bureau with correct and accurate information in 2003-2004, which amounted to P1.5-million and P2.1 million, respectively.

“The Court En Banc, therefore, sustains the ruling of the Second Division finding petitioner Mendez guilty beyond reasonable doubt of failure to make and file a return for 2002…the prosecution was able to prove that petitioner Mendez earned substantial income in 2003 but petitioner Mendez’s ITR (Income Tax Return) shows a net loss incurred in 2003…for all the foregoing, the Court En Banc finds that the prosecution has clearly established the above-prescribed elements for violation of Section 255 of the NIRC of 1997 as amended,” the CTA en banc decision said.

The Tax Court sentenced him to suffer 1 to two years imprisonment for each tax case and a fine of P10,000 or a total of P20,000 for the two cases.

Mendez owns and runs five skin and weight loss clinics: Mendez Body and Face Salon and Spa that had two branches in Quezon City, the Mendez Body and Face Clinic in Greenbelt and the Weigh Less Center in San Fernando, Pampanga and in Dagupan, Pangasinan. He also tapped several celebrities as endorsers.

The BIR presented 20 witnesses and several documents such as lease contracts and registration papers of Mendez’s clinics among others.

“Finding no reversible error, the Court En Banc affirms the assailed decision dated January 5, 2011 of the second division,” the court said.