WHEREAS,
the periods granted under Presidential Decree No. 23, as amended,
proclaiming a tax amnesty on the disclosure of previously untaxed
income and/or wealth acquired in 1971 and prior years and Presidential
Decree No. 157 proclaiming a tax amnesty on undeclared income and/or
wealth acquired in 1972 have already expired; chanroblesvirtualawlibrary
WHEREAS, notwithstanding the unprecedented response of taxpayers who
availed themselves of the tax amnesty provided by Presidential Decree
No. 23, there still remain considerable number of taxpayers willing to
avail of the aforesaid tax amnesty or make amendments on their tax
amnesty returns;chanroblesvirtualawlibrary
WHEREAS, it is the avowed policy of the government to afford every
opportunity for all taxpayers to come within the fold of the reforms
under the New Society;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines and
pursuant to Proclamation No. 1081, dated September 21, 1972, and
General Order No. 1, dated September 22, 1972, as amended in order to
enlarge the coverage of the tax amnesty on previously untaxed income
and/or wealth, subject to certain conditions, do hereby order and
decree that: chanroblesvirtualawlibrary
1. A tax amnesty is hereby granted to any person,
natural or juridical, who for any reason whatsoever failed to avail of
Presidential Decree No. 23 and Presidential Decree No. 157; or, in so
availing of the said Presidential Decrees failed to include all that
were required to be declared therein if he now voluntarily discloses
under this decree all his previously untaxed income and/or wealth such
as earnings, receipts, gifts, bequests or any other acquisitions from
any source whatsoever which are or were previously taxable under the
National Internal Revenue Code, realized here or abroad by condoning
all internal revenue taxes including the increments or penalties on
account of non-payment as well as all civil, criminal or administrative
liabilities, under the National Internal Revenue Code, the Revised
Penal Code, the Anti-Graft and Corrupt Practices Act, the Revised
Administrative Code, and the Civil Service Laws and Regulations, laws
and regulations on Immigration and Deportation, or any other applicable
law or proclamation, as it is hereby condoned, provided a tax of
fifteen (15%) per centum on such previously untaxed income and/or
wealth is imposed subject to the following conditions: chanroblesvirtualawlibrary
a. Such previously untaxed income and/or wealth must
have been earned or realized prior to 1973, except the following:cralaw:red
(1) Capital gains transactions where the taxpayer has
availed of Presidential Decree No. 16, as amended, but has not complied
with the conditions thereof;chanroblesvirtualawlibrary
(2) Tax liabilities with or without assessments, on
withholding tax at source provided under Sections 53 and 54 of the
National Internal Revenue Code, as amended;chanroblesvirtualawlibrary
(3) Tax liabilities with assessment notices issued as
of December 31, 1973;chanroblesvirtualawlibrary
(4) Tax cases which are the subject of a valid
information under Republic Act No. 2338 as of December 31, 1973; and
(5) Property transferred by reason of death or by
donation during the year 1972.
b. The taxpayer must file a return with the
Commissioner of the Internal Revenue on or before June 28, 1974,
showing such previously untaxed income and/or wealth in the prescribed
BIR Form, which shall be kept confidential and shall not be subject to
verification and/or investigation.
c. If such previously untaxed income and/or wealth or
a part thereof, consist of cash hoarded abroad, such cash must be
repatriated and deposited with any bank in the Philippines or invested
in any of the following within six (6) months from time of such
disclosure: chanroblesvirtualawlibrary
1. Government bonds;chanroblesvirtualawlibrary
2. Government securities;chanroblesvirtualawlibrary
3. Government debentures;chanroblesvirtualawlibrary
4. Bonds, notes, or other commercial papers issued by
domestic corporations; or
5. Any productive enterprise. chanroblesvirtualawlibrary
2. The tax imposed under paragraph 1 hereof shall be
paid within the following period:cralaw:red
a. If the amount due does not exceed P10,000.00 the
tax must be paid at the time of the filing of the return, but not later
than June 28, 1974;chanroblesvirtualawlibrary
b. If the amount due, exceeds P10,000.00 but does not
exceed P50,000.00, the tax may be paid in two equal installments, the
first installment to be paid upon the filing of the return not later
than June 28, 1974, and the second installment shall be paid on or
before September 30, 1974;chanroblesvirtualawlibrary
c. If the amount due exceeds P50,000.00 but does not
exceed P300,000.00, the tax may be paid in three equal installments,
according to the following schedule: chanroblesvirtualawlibrary
(1) The first installment shall be paid upon the
filing of the return but not later than June 28, 1974;chanroblesvirtualawlibrary
(2) The second installment shall be paid on or before
September 30, 1974;chanroblesvirtualawlibrary
(3) The third installment shall be paid on or before
December 31, 1974.
d. In meritorious cases and where the amount exceeds
P300,000.00, the Commissioner of Internal Revenue may grant extension
of time for the payment of the tax in equal installments but the first
installment must be paid at the time of the filing of the return, but
not later than June 28, 1974 and the last installment not later than
May 31, 1975.
e. If any installment payment is not paid on the due
date of said installment, there shall be collected as part of the tax
interest upon such unpaid amount at the rate of 14% per annum from the
due date of the installment to the date of payment, which must be made
not later than three (3) months from the due date of such installment,
otherwise the entire amount including all unpaid installments shall
automatically be due on such date and failure to pay the same within
thirty (30) days shall render the amnesty granted herein null and
void. chanroblesvirtualawlibrary
3. After the tax imposed under this Decree shall have
been paid, the taxpayer shall not be subject to any investigation,
whether civil, criminal or administrative insofar as such previously
untaxed income and/or wealth is concerned and shall not be used as
evidence against, or to the prejudice of, the declarant in any
proceeding before any court of law or body, whether judicial,
quasi-judicial or administrative in which he is a defendant or
respondent, and such declaration shall not be examined, inquired or
looked into by any person, government official, bureau or office. It
shall be unlawful for any person having knowledge of such declaration
to disclose any information relative to such declaration and any
violation hereof shall subject the offender to an imprisonment of not
more than five (5) years.
Any government official or employee who would inquire, question or
attempt to inquire into the tax amnesty return filed by any taxpayer
pursuant to this Decree shall be guilty of grave misconduct for which
he may be summarily dismissed from the service.
4. The Secretary of Finance, upon recommendation of
the Commissioner of Internal Revenue, shall promulgate the implementing
regulations of this Decree.
Done in the City of Manila,
this 9th day of January in the year of Our Lord, nineteen hundred and
seventy-four.
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