Sa isang approved resolution ng Office of the Quezon City Prosecutor last April 14, ni-recommend na kasuhan ng violation of tax laws (Sections 5 and 14 of the Tax Code of 1997.) si John Lloyd dahil sa hindi nito pag-surrender ng kanyang accounting books sa Bureau of Internal Revenue (BIR).
Ayon pa sa BIR, John Lloyd is a no-show sa dalawang beses nilang invitation para i-surrender nito ang kanyang accounting books. Una ay noong June 15, 2007 and another request to appear before the tax bureau's Chief of Legal Division office ay na-schedule noong July 10, 2007. This prompted the filing of the case. "His failure to appear and bring the records as demanded by the subpoena consummated the offense charged," according to the resolution signed by 2nd Assistant City Prosecutor Rogelio Velasco.
Mabilis namang nagpalabas ng statement ang Star Magic, talent arm ng ABS-CBN through its head Thess Guibi. Ayon kay Guibi, "Malinis ang financial record ni John Lloyd. Naniniwala kami na wala siyang utang. As far as I know, malinis ang record niya. Wala ding kameng natanggap na subpoena galing sa kanila."
Ayon naman sa legal counsel ng aktor na si Atty. Marc Perez, invalid and subpoena na na-issue ng BIR dahil hinde ito alam ng aktor.
"This case had been previously dismissed by the prosecutor's office only to be surprisingly reversed when BIR filed its motion for reconsideration. We are confident this case will be dismissed," Perez said.