REPUBLIC OF THE PHILIPPINES)

City of Bacolod
) s.s.
COUNTER-AFFIDAVIT
I, Jeffrey David, through the undersigned counsel, a resident of
Bacolod City, Philippines, Filipino, of legal age, after having been duly
sworn to in accordance with law, do hereby depose and state that:
1.
I am the owner and operator of the Wash and Go Laundry with
business address located at Lacson Street, Bacolod City. I may be served
summons and other process at this address.
2.
That I have duly filed and paid my income tax for taxable year
2014 in accordance with Section 24 of the National Internal Revenue
Code of 1997. Attached hereto is my Income Tax Return for taxable year
2014 as Annex A, and made an integral part hereof.
3.
On February 7, 2015, I received a letter of notice from the
Commissioner of Internal Revenue that the BIR conducted a
computerized matching on information/ data provided by Withholding
Agent/ Payor and Payees/ Income Receipts against my declaration per
Income tax and VAT returns with the discrepancy on the amount of
P6,972,532.00 for calendar year 2014.
4.
On April 21, 2015, I received a Letter of Authority and First
Request of records and have faithfully complied with the same. I
submitted the following required accounting records and documents:
a.
b.
c.
d.
e.
f.
g.
h.

accounts payable
check vouchers
journal
list of transactions
invoices
official receipts
credit memoranda
Independent Certified

(Annex B)
(Annex C)
(Annex D)
(Annex E)
(Annex F)
(Annex G)
(Annex H)
(Annex I)

Public Accounts (ICPA)

final report
5.
On February 26, 2016, I received a summon from the Office of
the Prosecutor and a copy of the Complaint-Affidavit filed by Special
Investigator (SI) Usi Sador and Intelligence Officer (IO) Manugtiktik
alleging that I have violated the provisions of R.A. No. 8424.
6.
I deny all the allegations of the said complaint specifically
paragraphs 2, 13, 14, 16, and 17, the truth of the matter being that I have
faithfully filed and paid my income tax for the year 2014. I do not have
the intention or will to commit fraud as to evade from my obligation as a
taxpayer.
7. I deny the allegations on Paragraphs 2 and 13 that there is a willful
failure on my part to supply the correct information for my 2014 Income
Tax Return. All information reflecting on my Income Tax Return for the
said taxable year are truthful declaration of all transactions by my
laundry shop business, those that involves necessary expenses and those
that earned profits. From the truthfulness of my declaration, I have paid
the correct tax amount due for that year and from my gross income of
Php 1,152,680.00 I have not reached the VAT threshold as provided by
the Code to require me to register as Value-Added taxpayer. (PLEASE
INSERT NECESSARY ANNEXES)
8. The alleged transactions with ABC 5 Star Hotel as stated in Par. 14 do
not exist and never existed. I had never dealt with the said hotel for any
business purpose nor them availing my laundry services. The alleged
transactions are considered fictitious for there is no evidence to support
them. The sworn statement executed by ABC 5 Star Hotel does not
inspire belief for there's no any single copy of official receipt issued by
my laundry shop under their name. And most importantly, the alleged tax
deficiency in Par. 17 is short of legal basis and supporting evidence from
the fact that there was no any business transactions as claimed by ABC 5
Star Hotel in 2014.
9. Neither I intend to commit fraud for the payment of my tax due nor
attempt to evade from my tax obligations, contrary to Par. 16. I declared
correct information of my income (evidenced by ANNEX ?) and paid the

correct amount of tax for the year 2014. More so, there is no basis for the
finding of probable cause that there is willful attempt on my part to evade
or defeat tax for that taxable year.
7.
The assessment of my income tax for the taxable year 2014
through my income tax return is true, correct and in accordance to
Section 24 of the NIRC.
(Computation of Income Tax)
8.
The computation of my income tax is based on my accounting
records as herein attached. The complainant alleged that there was an
undeclared transaction with ABC Star Hotel P6,972,532.00. On the
contrary, these transactions were absent as evidenced by the same records
which were submitted upon request of the Commissioner of Internal
Revenue. The latter failed to consider these proof and relied only on the
Third-party matching result and a sworn statement of Mr. Ramon Tee.
9.
Furthermore, the complainant alleged that I failed to file and
pay the required Quarterly Value-Added Tax Return for the four quarters
of taxable year 2014. As provided by Sec. 236 (G) of the NIRC:
(Copy Provision)
The taxable income, as computed, for my business is only
P1,152,680.00. It did not reach the threshold of P1,500,000.00 as
stipulated in the NIRC. Such would not hold me liable for failure to file
and pay for VAT.
10.
11.
12.