THENATIONAL INTERNAL REVENUE CODEOF THE PHILIPPINES[Tax Reform Act of 1997]Republic Act No. 8424AN ACT
AMENDING
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR
OTHER
PURPOSES
TITLE IITAX ON
INCOME
CHAPTER XIOTHER
INCOME
TAX REQUIREMENTS
SEC.
67. Collection of Foreign Payments. -
All persons, corporations, duly registered general co-partnerships
(companias
colectivas) undertaking for profit or otherwise the collection of
foreign
payments of interests or dividends by means of coupons, checks or bills
of exchange shall obtain a license from the Commissioner, and shall be
subject to such rules and regulations enabling the government to obtain
the information required under this Title, as the Secretary of Finance,
upon recommendation of the Commissioner, shall prescribe.
SEC.
68. Information at Source as to Income Payments.
- all persons, corporations or duly registered co- partnerships
(companias
colectivas), in whatever capacity acting, including lessees or
mortgagors
of real or personal property, trustees, acting in any trust capacity,
executors,
administrators, receivers, conservators and employees making payment to
another person, corporation or duly registered general co-partnership
(compania
colectiva), of interests, rents, salaries, wages, premiums, annuities,
compensations, remunerations, emoluments or other fixed or determinable
gains, profits and income, other than payment described in Section 69,
in any taxable year, or in the case of such payments made by the
Government
of the Philippines, the officers or employees of the Government having
information as to such payments and required to make returns in regard
thereto, are authorized and required to render a true and accurate
return
to the Commissioner, under such rules and regulations, and in such form
and manner as may be prescribed by the Secretary of Finance, upon
recommendation
of the Commissioner, setting forth the amount of such gains, profits
and
income and the name and address of the recipient of such payments:
Provided,
That such returns shall be required, in the case of payments of
interest
upon bonds and mortgages or deeds of trust or other similar obligations
of corporations, and in the case of collections of items, not payable
in
the Philippines, of interest upon the bonds of foreign countries and
interest
from the bonds and dividends from the stock of foreign corporations by
persons, corporations or duly registered general co-partnerships
(companias
colectivas), undertaking as a matter of business or for profit or
otherwise
the collection of foreign payments of such interests or dividends by
means
of coupons or bills of exchange.
SEC.
69. Return of Information of Brokers.chanrobles virtual law library
- Every person, corporation or duly registered general co-partnership
(compania
colectiva), doing business as a broker in any exchange or board or
other
similar place of business, shall, when required by the Commissioner,
render
a correct return duly verified under oath under such rules and
regulations
as the Secretary of Finance, upon recommendation of the Commissioner,
may
prescribe, showing the names of customers for whom such person,
corporation
or duly registered general co-partnership (compania colectiva) has
transacted
any business, with such details as to the profits, losses or other
information
which the Commissioner, may require as to each of such customers as
will
enable the Commissioner to determine whether all income tax due on
profits
or gains of such customers has been paid.
SEC.
70. Returns of Foreign Corporations. -
(A)
Requirements.
- Under rules and regulations prescribed by the Secretary of finance,
upon
the recommendation of the Commissioner, any attorney, accountant,
fiduciary,
bank, trust company, financial institution or other person, who aids,
assists,
counsels or advises in, o with respect to; the formation, organization
or reorganization of any foreign corporation, shall, within thirty (30)
days thereafter, file with the Commissioner a return.
(B)
Form and Contents of Return.
- Such return shall be in such form and shall set forth; under oath, in
respect of each such corporation, to the full extent of the information
within the possession or knowledge or under the control of the person
required
to file the return, such information as the Secretary of Finance, upon
recommendation of the Commissioner, shall prescribe by rules and
regulations
as necessary for carrying out the provisions of this Title. Nothing in
this Section shall be construed to require the divulging of privileged
communications between attorney and client.
SEC.
71. Disposition of Income Tax Returns, Publication of Lists of
Taxpayers
and Filers.
- After the assessment shall have been made, as provided in this
Title,
the returns, together with any corrections thereof which may have been
made by the Commissioner, shall be filed in the Office of the
Commissioner
and shall constitute public records and be open to inspection as such
upon
the order of the President of the Philippines, under rules and
regulations
to be prescribed by the Secretary of Finance, upon recommendation of
the
Commissioner.
The Commissioner may,
in each year, cause to be prepared and published in any newspaper the
lists
containing the names and addresses of persons who have filed income tax
returns.cralaw:red
SEC.
72. Suit to Recover Tax Based on False or Fraudulent Returns.chanrobles virtual law library
- When an assessment is made in case of any list, statement or return,
which in the opinion of the Commissioner was false or fraudulent or
contained
any understatement or undervaluation, no tax collected under such
assessment
shall be recovered by any suit, unless it is proved that the said list,
statement or return was not false nor fraudulent and did not contain
any
understatement or undervaluation; but this provision shall not apply to
statements or returns made or to be made in good faith regarding annual
depreciation of oil or gas wells and mines.cralaw:red
SEC.
73. Distribution of dividends or Assets by Corporations. -
(A)
Definition of Dividends.chanrobles virtual law library
- The term "dividends" when used in this Title means any
distribution
made by a corporation to its shareholders out of its earnings or
profits
and payable to its shareholders, whether in money or in other property.
Where a corporation
distributes all of its assets in complete liquidation or dissolution,
the
gain realized or loss sustained by the stockholder, whether individual
or corporate, is a taxable income or a deductible loss, as the case may
be.
(B)
Stock Dividend.
- A stock dividend representing the transfer of surplus to capital
account
shall not be subject to tax. However, if a corporation cancels or
redeems
stock issued as a dividend at such time and in such manner as to make
the
distribution and cancellation or redemption, in whole or in part,
essentially
equivalent to the distribution of a taxable dividend, the amount so
distributed
in redemption or cancellation of the stock shall be considered as
taxable
income to the extent that it represents a distribution of earnings or
profits.
(C)
Dividends Distributed are Deemed Made from Most Recently
Accumulated
Profits.
- Any distribution made to the shareholders or members of a
corporation
shall be deemed to have been made form the most recently accumulated
profits
or surplus, and shall constitute a part of the annual income of the
distributee
for the year in which received.
(D)
Net Income of a Partnership Deemed Constructively Received by
Partners.
-
The taxable income declared by a partnership for a taxable year which
is
subject to tax under Section 27 (A) of this Code, after deducting the
corporate
income tax imposed therein, shall be deemed to have been actually or
constructively
received by the partners in the same taxable year and shall be taxed to
them in their individual capacity, whether actually distributed or not. |
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