DOJ rejects Napoles couple's counter-affidavit in tax case

The Department of Justice (DOJ) on Tuesday rejected the counter-affidavit submitted by controversial trader Janet Lim-Napoles and her husband in connection with the P61-million tax evasion complaint filed against them.

At the resumption of a preliminary investigation on the complaint, the DOJ panel headed by Senior Assistant State Prosecutor Edna Valenzuela did not accept the couple's sworn statement as they did not subscribe to it before a public prosecutor.

"The joint counter-affidavit of spouses Napoles was subscribed by them before a private lawyer, a notary public, and not before a public prosecutor," Valenzuela told GMA News Online.

This was confirmed by lawyer Ian dela Cruz Encarnacion, the couple's legal counsel.

The panel gave the couple three more days or until Friday to submit the correct duly-subscribed joint counter-affidavit.

Encarnacion, meanwhile, requested the panel to issue an order authorizing a jail official at Fort Santo Domingo in Laguna, where Mrs. Napoles is detained in connection with a serious illegal detention case, to accompany her to a public prosecutor.

The Napoles couple must submit a counter-affidavit or else the tax evasion complaint against them would be "deemed submitted for resolution" without their side.

During a hearing on November 5, the DOJ panel handling the complaint had already given the Napoles couple a deadline until November 19 to submit their counter-affidavit.
Lawyer Francisco Tolentino, one of the Napoleses' lawyers, said at that time that their clients were requesting an extension because they have yet to look for a tax lawyer to represent them in the case.

The Napoles couple were charged with willful attempt to evade paying taxes for taxable years 2004, 2006, 2008, 2009, 2010, 2011, and 2012.
 
The Bureau of Internal Revenue (BIR) also accused Napoles, prime suspect in the P10-billion pork barrel scam case, of either failing to file an income tax return from 2010 to 2012 or supplying incorrect information in her income tax returns in 2004, 2006, 2008, and 2009.
 
BIR's investigation found out that Napoles' acquisitions amounted to P4.17 million in 2004, P22.29 million in 2006, P4.35 million in 2008, P9.84 million in 2009, P6.33 million in 2010, P5.64 million in 2011, and P6.89 million in 2012.
 
Despite these "acquisitions" consisting of condominium units, land parcels, and vehicles, Napoles had only declared an income of P195,800 in 2004 and 100,744.59 in 2008.
 
The BIR said that in 2006 and 2009, Mrs. Napoles declared a "P0.00" income. Meanwhile, she did not file any ITRs for the years 2010, 2011, and 2012.
 
As for Mr. Napoles, his acquisitions amounted to P1.42 million in 2004, P5.51 million in 2006, P780,000 in 2008, P9.25 million in 2009, P2.1 million in 2010, P1.17 million in 2011 and P3.65 million in 2012.
 
In contrast, Mr. Napoles did not file any ITRs for these years, except for taxable year 2009 where he declared nothing.
 
Mrs. Napoles' acquisitions included condominium units in City and Land Mega Plaza and the Discovery Center, parcels of land in Pangasinan and Kidapawan City, insurance policies with Insular Life Assurance Co Ltd, Philippine American Life and General Insurance Co Inc, and Philippine Axa Life Insurance Corp and vehicles such as Ford Lincoln Navigator, Honda Civic and Porsche Cayenne.
 
The BIR said Mrs. Napoles declared "sole proprietorship of merchandising goods" as source of her income. Her tax registration was then canceled in 2010. — KBK, GMA News