WHEREAS, pursuant to General Order No. 2-A
dated September 26, 1972, a large number of motor vehicles transferred
from tax exempt person/entities to non tax exempt persons/entities or
imported motor vehicles where the correct duties and taxes have not
been paid, have either been impounded by or are being voluntarily
surrendered to the authorities and are now under government custody
pending the assessment and collection of the correct duties and taxes
due thereon;chanroblesvirtualawlibrary
WHEREAS, only a few, if any, of the owners or possessors thereof will
be able to pay the correct duties and taxes on these motor vehicles for
the reason that under the present rates and system of computation the
correct duties and taxes will exceed the present market value of the
vehicles such that the strict enforcement of the existing pertinent
laws will have a confiscatory effect against personal property which
may have been acquired in good faith;chanroblesvirtualawlibrary
WHEREAS, it is the policy of the government to encourage the payment of
the duties and taxes due thereon and put a stop to graft and corruption
in the different revenue collection and enforcement agencies of the
government brought about by the existence of this so-called "hot-car"
racket. chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic 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,
whereby I have assumed direction of the operation of the entire
government, do hereby decree and order that;chanroblesvirtualawlibrary
1. A fifty per cent (50%) and a seventy percent (70%)
across the board deduction be allowed on the duties and taxes
collectible by the government on vehicles transferred from tax exempt
persons/entities to non tax exempt persons/entities, or such vehicles
where the correct taxes and duties have not been collected, depending
upon the year models of such vehicles and under the following mechanics:cralaw:red
The Bureau of Customs shall:cralaw:red
a. Compute the correct duties and taxes on these
vehicles based in the present rates of duty and tax and the current
conversion rate of foreign exchange;chanroblesvirtualawlibrary
b. Reduce the total duties and taxes arrived at by
50% for vehicles with year models 1970 to 1972 and 70% for year models
1969 and below;chanroblesvirtualawlibrary
c. Deduct whatever duties and taxes might have been
originally paid on these vehicles, upon presentation of evidence of
payment to be verified by the Bureau of Customs;chanroblesvirtualawlibrary
d. Collect the balances still due the government as
duties and taxes on these vehicles;chanroblesvirtualawlibrary
e. The current year (1972) shall be considered as the
date of the first sale or transfer for purposes of assessment of the
customs duty and compensating tax;chanroblesvirtualawlibrary
f. If the amount of duty and tax still found due
would exceed five thousand pesos (P5,000) the owner may pay the same in
two (2) equal installments, the second installment to be paid not later
than March 31, 1973, otherwise the motor vehicle shall be subject to
outright forfeiture in favor of the Government with prejudice to refund
of duty and tax previously paid.
2. This tax amnesty shall apply only to vehicles
which have been acquired or transferred prior to October 12, 1972.
3. The tax amnesty shall be effective only up to
December 31, 1972.
4. After the duty and tax shall have been paid
pursuant to this Decree the taxpayer shall be cleared of all criminal
responsibility by reason of the nonpayment of the correct duty and tax
on such motor vehicles. chanroblesvirtualawlibrary
The Department of Finance shall promulgate the rules and regulations
for the effective implementation of this Decree.
Done in the City of Manila,
this 16th day of November, in the year of Our Lord, nineteen hundred
and seventy-two.
|
