REPUBLIC ACT NO. 6141 - AN
ACT TO CREATE A PEACE AND ORDER SPECIAL ACCOUNT IN THE GENERAL FUND TO
FINANCE THE ACTIVITIES AND FUNCTIONS OF THE POLICE COMMISSION AS
DEFINED IN THE POLICE ACT OF 1966 AND CERTAIN POLICE ACTIVITIES OF THE
NATIONAL BUREAU OF INVESTIGATION AND FOR OTHER PURPOSES
Section 1.
Purpose. — It is hereby declared to be the purpose of this Act to
support local governments in improving their police forces to attain
the objectives set forth in the Police Act of 1966.
Sec. 2. Creation of a Peace and Order Special
Account in the General Fund. — To carry out the purpose of this Act,
there is hereby created in the General Fund a Peace and Order Special
Account, hereinafter referred to as the Account, which shall be used to
finance the activities, functions and program of the Police Commission
to carry out its powers and duties as defined in the Police Act of 1966
and certain police activities of the National Bureau of Investigation.
Sec. 3. Financial Sources of the Account. — The
Account shall be constituted out of all the revenue collected from the
following sources:
(a) The tax on stock transactions imposed under
Section four hereof; and
(b) An additional tax on travel as imposed under
Section three of Republic Act Numbered Fourteen hundred and
seventy-eighty, as amended, imposed under Section six hereof.
Sec. 4. A new section is hereby inserted between
Section s one hundred and ninety-five-A and one hundred ninety-six of
the National Internal Revenue Code, to be known as Section one hundred
and ninety-five-B, which shall read as follows:
"Sec. 195-B. Percentage tax on stock transactions. —
There shall be levied, assessed, collected, and paid on every sale,
exchange, transfer or similar transaction intended to convey ownership
of, or title to, any share or shares of stock, a tax equivalent to two
per centum of the gross selling price of the share or shares of stock
sold, or of the gross value in money of the share or shares of stock,
exchanged or transferred, which shall be paid by the teller or
transferor.
“he tax herein imposed shall not apply to:
"(1) The issuance by a corporation of shares of
stock, whether original or additional issues;
"(2) The donation of any share or shares of stock
made to any educational or charitable corporation, institution,
foundation, trust or philanthropic organization or research institution
or organization as defined in and subject to the conditions imposed by
Section one hundred ten of this Code;
"(3) The exchange of any share or shares of stock
effected pursuant to the plan for merger or consolidation under
paragraph (2), (b), section thirty-five of this Code;
"(4) The transfer of shares of stock by testate or
intestate succession; and
"(5) The sale, exchange or transfer of shares
acquired before the effectivity of this Act, in which case the
pertinent provisions of this Code shall apply.
"For a period of five years from the effectivity of this Act, any
capital gain arising from a stock transaction on which the tax herein
imposed has been paid shall not be taken into account in computing net
capital gain or loss under Section thirty-four of this Code if (1) both
the acquisition and the disposition of said stock by the taxpayer are
effected after the effectivity of this Act and (2) the sale, exchange,
and transfer in bona fide and the consideration for the transaction
represents the substantial fair market value of the stock: provided,
that, in case of gain not arising from, but realized out of the said
stock transaction, the pertinent provisions of this Code shall apply.
However, any capital loss, arising from such transaction shall be taken
into account in computing net capital gain in accordance with the
provisions of this Code: provided, that there shall be no capital loss
carry-over.
"Notwithstanding the provisions of Section thirty of this Code, the tax
imposed in this section shall not be an allowable deduction for income
tax purposes.
"For purposes of this section, "fair market value" of shares of stock
subject of any transaction in a stock exchange on any particular date
will be determined by the actual selling price of the stock as
certified by the stock exchange which handled the transaction.n the
case of shares of stock not traded through a stock exchange but listed
in one or more stock exchanges the highest closing price of the day
nearest to that day on which the shares are transferred shall be the
fair market value of the shares.n all other cases, the fair market
value shall be determined by considering the nature and history of the
business, book value of the stock, earning and dividend paying capacity
of the company, goodwill, and sales of both the stock to be valued and
that of companies similarly situated.
"No sale, exchange, transfer, or similar transaction intended to convey
ownership of, or title to, any share or shares of stock which had been
acquired after the date of effectivity of this Act, shall be registered
in the books of a corporation, unless the receipt of payment of the tax
imposed under this section or a copy thereof, if filed with and
recorded by the stock transfer agent or secretary of the corporation.
"In the case of stocks traded through a stock exchange, it shall be the
duty of the stock broker to collect on behalf of the government the tax
due from the seller or transferor upon the issuance of the confirmation
of sale. The stock broker shall issue the confirmation of sale for the
account of any transferor or seller of stocks simultaneously upon
payment of the tax herein imposed and not otherwise.
"In the case of stocks not trader through a stock exchange, it shall be
the duty of the stock transfer agent or the secretary of the
corporation, in case a corporation has no stock transfer agent, to
collect on behalf of the government the tax due from the seller or
transferor before recording the transfer of stock in the stock and
transfer book.
“he stock broker, transfer agent, or secretary of the corporation shall
issue the corresponding official receipt, which was previously
registered with the Bureau of Internal Revenue to the seller or
transferor.
"It shall be the duty of every stock broker to turn over the sums
collected by him as tax to the Bureau of Internal Revenue within three
banking days from the date of collection thereof; and to submit on
Monday of each week to the secretary of the stock exchange of which he
is a member, a true and complete return, which shall contain a
declaration that he made it under the penalties of perjury, of all
transactions effected through him during the preceding week and of the
taxes collected by him during and turned over to the Bureau of Internal
Revenue. The secretary of the stock exchange shall reconcile the same
with the weekly reports of stock brokers and in turn transmit to the
Bureau of Internal Revenue on the first and sixteenth day of each month
a consolidated return of all transactions effected during the preceding
period through the stock exchange.
"It shall likewise be the duty of every stock transfer agent, or
secretary of the corporation, as the case may be, to turn over the sums
collected by him as taxes under this section to the Bureau of Internal
Revenue within three banking days from the date of collection thereof
and to file with the Bureau of Internal Revenue on Monday of each week
a true and complete return, which shall contain a declaration that he
made it under the penalties of perjury, of all taxable transaction
effected through him during the preceding week and of all taxes
collected by him and turned over to the Bureau of Internal Revenue."
Sec. 5. Surcharges and Penalties. — If the tax
imposed under the preceding section is not paid or is not turned over
within the time prescribed above, there shall be added to the tax a
surcharge of twenty-five per centum thereof, plus a special penalty of
one per centum of the tax due for every banking day of delay in
payment, the increments to form part of the tax.
In case a false or fraudulent return is filed, there shall be added to
the tax or to the deficiency tax, if any payment has been made on the
basis of such return before the discovery of the falsity or fraud, a
surcharge of fifty per centum thereof, plus special penalty of one per
centum of delay in the payment of the correct tax, the increment to
form part of the tax.
The tax or amount so added to any tax due shall be collected from the
seller, stock broker, stock transfer agent, or secretary of the
corporation, as the case may be, responsible for the non-payment or
non-collection of the tax due, or for the delay in the payment of
and/or failure to turn over to the Bureau of Internal Revenue the tax
collected or for the filing of a false or fraudulent return.
The surcharges and special penalties imposed hereinabove shall be in
addition to any criminal liability that may be incurred under Sec. 209, 352, 353, and 355 of the National Internal Revenue Code and
Articles 217 to 222 of the Revised Penal Code.
Sec. 6. Additional Tax on Travel. — In addition to
the tax imposed under Section three of Republic Act Numbered Fourteen
hundred and seventy-eight, as amended, there if hereby imposed a tax of
three hundred pesos for first class passage fares and two hundred pesos
for all others to be collected from all citizens of the Philippines or
permanent resident aliens: provided, however, that Filipino Muslim
pilgrims going to Mecca for the first time and crew members on duty
aboard ships and airplanes plying international routes shall be exempt.
Out of the total proceeds from the additional tax on travel, two
million pesos shall accrue annually to the funds of the Board of Travel
and Tourist Industry to be spent exclusively for the development and
maintenance of the Rizal Park: provided, however, that not more than
ten per cent thereof shall be used for salaries and wages: and
provided, further, that any excess thereof shall be used for the
development and maintenance of other public parks. The balance of such
proceeds shall accrue to and form part of the Account.
The additional tax on travel imposed under this section shall be
collected at the same time, in the same manner and subject to the same
penalties as the basic travel tax imposed under Section three of
Republic Act Numbered Fourteen hundred and seventy-eight, as amended.
There shall be no exemptions from the payment of the additional travel
tax except as provided herein and under existing laws, treaties, and
international agreements.
Sec. 7. Turnover of the Collection, Release of the
Account is Ministerial. — The Commissioner of Tourism and the
Commissioner of Internal Revenue shall turn over their collections of
the taxes mentioned in the preceding sections to the Treasurer of the
Philippines within ten days of every succeeding month. The Treasurer of
the Philippines shall credit the collections to the Account which shall
not be debited except for withdrawals pursuant to appropriations made
by law for the Police Commission and the National Bureau of
Investigation. The credit balance, if any, of this Account at the end
of each fiscal year shall be available for appropriation for the
following: (1) a grant to every barrio not to exceed six hundred pesos
each annually to be spent in accordance with the Barrio Charter for the
promotion and maintenance of peace and order, and (2) to cover the
deficiencies in the Special Education Fund provided for in Section 1
(c) of Republic Act Numbered five thousand four hundred forty seven.
It shall be the ministerial duty of the Budget Commissioner to release
the quarterly allotments from the appropriations of the Police
Commission at least ten days before each quarter as requested by its
Chairman provided that the same is covered by the corresponding
estimated revenues.t shall, likewise, be the ministerial duty of the
National Treasurer to honor all treasury warrants drawn by the Police
Commission and by the Director of the National Bureau of Investigation
pursuant to the said allotments provided that the special account has
sufficient balance to cover the same.
Sec. 8. Appropriation. — The proceeds of the taxes
imposed in Section s four and six of this Act accruing to the Account
for the period from the effectivity of this Act up to June 30, 1971
shall be used to finance the appropriations of the Police Commission
authorized under existing laws and the additional appropriation in the
sum of sixty million pesos which is hereby appropriated also for
expenditures of the Police Commission during the period from the
effectivity of this Act to June 30, 1971, itemized as follows:
I. For the payment of salary subsidy to cities,
municipalities and municipal districts effective October
1, 1970 and as provided for in Section twenty of
Republic Act Numbered Forty-eight hundred and
sixty-four: provided, (1) That the minimum salaries
of members of the police forces shall be adjusted
on the basis of the lowest minimum salary of two
thousand eight hundred eighty pesos per annum;
(2) That the amount of the subsidy shall be based on
the minimum number of policemen specified in Section
nineteen of the Police Act of 1966, unless the actual
strength of the police force of the city or municipality
on June 30, 1970 exceeded the said minimum number,
in which case the subsidy shall be based on the actual
strength on June 30, 1970, subject to the following
conditions: (a) That only such number of policemen in
excess of the minimum number as were not receiving
the minimum salary fixed by Section twenty of the
Police Act on June 30, 1970 shall be included in the
number of policemen on which the salary the salary
subsidy shall be based; (b) That new appointments
in excess of the minimum number made after June 30,
1970 shall not be included in the computation of
the salary subsidy, even if the appointments are made
to fill vacancies created by death, promotion,
resignation, retirement or removal of policemen in
the service on June 30, 1970; (c) That the salary
subsidy shall be reduced as such vacancies occur until
the basis of the subsidy becomes the minimum
number of policemen fixed by Section nineteen
of the Police Act of 1966; (3) That the salary subsidy
shall be released simultaneously and proportionately
within the first ten days of every month to all cities,
municipalities and municipal districts entitled to such
subsidy; (4) That the salary subsidy shall be used
by the cities and municipalities first to pay all its
policemen the minimum salaries fixed by Section
twenty of the Police Act of 1966; and (5) That
the highest salaries paid to the policemen shall not
be reduced by the city or municipality concerned
unless the reduction is due to causes beyond the
control of the city or municipality P40,500,000.00.
II. For the payment of hospitalization, death
and disability benefits under Section twenty-one
of Republic Act Numbered Forty-eight hundred
and sixty-four: provided, that the Police Commission
shall adjudicate said cases within forty-five days from
the date the same shall have been submitted for decision,
and such benefits shall be paid to the beneficiaries
within ten days from the date of adjudication by the
Police Commission or the appropriate tribunal
P4,000,000.00.
III. For training of local police forces,
extension of scholarship training or study grants
to deserving police officers to be chosen by means
of competitive physical and mental examination and
on the basis of proportional regional representation
upon recommendation of the municipal or city
mayors concerned; for observation of police
policies and the funding schemes of police
agencies in appropriate countries; and for
conducting crime research and crime
prevention purposes P4,500,000.00.
IV. For the purchase of firearms, ammunition,
communications equipment, motor vehicles, investigation
kits and other basic police equipment to be given as
aid to local police agencies: provided, that
firearms, ammunition, communications equipment,
and motor vehicles will be distributed among local
police agencies on the basis of their need
therefore to comply with the minimum requirements
prescribed by the Police Commission in compliance
with Section four, Paragraph (n) of the Police Act
of 1966: provided, further, that the firearms shall
be of one standard brand, make or kind to be
determined by the Police Commission and distributed
according to a program to be established taking
into consideration the need of the local police agencies
and the availability of funds for these purposes: provided,
still further, that the Police Commission shall keep a
complete record of the inventory of firearms and the
ballistic tests thereof, ammunition, communications
equipment, motor vehicles, and other basic police
equipment given as aid, and the name, rank and home
address of each member of a local police agency to
whom a firearm is issued, together with the serial number
and make of the firearm issued to him, and the date
of issue; and no firearm shall be issued except to
persons who appear on the records of the Police
Commission as regular members of local police
forces: provided, finally, that no such firearms,
ammunition, communications equipment, and
motor vehicles and other basic police equipment,
shall be used directly or indirectly by any barrio
self-defense unit or other para-military or
similar organization P10,000,000.
Any and all amounts received by a city or municipality
as a result of this section shall be used to augment the
existing appropriation of its police department, and
unless caused by circumstances beyond its control,
such appropriations shall not be diminished below
its fiscal year nineteen hundred seventy-one level plus
such amounts received that year for equipment, training
grants and other aid to its police force from the national
government and other agencies without prior approval of
the Police Commission. Any sum not needed for the
purpose for which it has been appropriated shall
be used to increase the number of policemen to the
minimum number fixed by the Police Act, to increase
the salaries of qualified, efficient and sufficiently trained
policemen, or to appoint new qualified policemen, or
to improve the police services of the city or municipality,
as the city or municipal council may appropriate.
V. For aid to the National Bureau of Investigation
in the setting up of a modern central records filing
system: provided, that not more than five per cent
thereof shall be used for salaries and wages
P1,000,000.00
———————
TOTAL P60,000,000.00.
One per cent of the total collections under this Act shall be used for
administrative expenses in connection with the implementation of this
Act: provided, that not less than thirty per cent thereof shall set
aside and made available for the expenses of the committee created in
Section ten hereof.
Sec. 9. Rules and Regulations. — Within thirty
days after the approval of this Act, the Executive Secretary upon
recommendation of the Commissioner of Tourism, the Secretary of Finance
upon recommendation of the Commissioner of Internal Revenue and the
National Treasurer and the Police Commission shall each promulgate such
rules and regulations for the effective enforcement and implementation
of the provisions of this Act pertaining to their respective
jurisdiction, and shall cause the same to be published once within
fifteen days from promulgation, in any newspaper of general circulation
in the Philippines and in the Official Gazette. Such rules and
regulations shall take effect fifteen days after the last publication.
SECTION 10. Joint Committee. — There shall be a joint
congressional committee known as the Joint Committee to be composed of
the Chairman, the next ranking member and the ranking Minority Member
of both the Senate and House Committees on Ways and Means.t shall be
the duty of the Joint Committee to look into the operation and effects
of the Account, the administration of the taxes imposed in this Act by
the Bureau of Internal Revenue and the Commissioner of Tourism and the
other agencies charged with the administration and implementation of
the Account; and to report, from time to time in its discretion, to the
Senate and the House of Representatives through their respective
presiding officers, its findings, together with such recommendations as
it may deem advisable.
The Joint Committee shall elect a Chairman and a Vice-Chairman from
among its members.t shall be assisted by a Technical Staff who shall be
appointed by the Chairman and may avail by detail of the services of
the personnel from other offices as it deems advisable. The provisions
of existing laws to the contrary notwithstanding, the Joint Committee
may pay honorarium to such employees and officials as may be asked to
work with the Staff as well as commutable transportation and
representation allowances to its members and its consultants.
The executive departments, boards, bureaus, offices, agencies,
instrumentalities and independent establishments are authorized and
directed to furnish upon request of the Joint Committee such
information, suggestions, rulings, data, estimates, and statistics as
may be necessary to carry into effect the provisions of this section.
SECTION 11. Who may Sue to Enforce the Provisions of
this Act. — In civil actions or proceedings filed for the purpose of
enforcing the provisions of this Act or any rule or regulation duly
promulgated hereunder, any Filipino citizen of age and not suffering
from any legal disqualification shall be considered for the purpose of
such action or proceedings as a real party in interest, any suit so
instituted shall not be dismissed on mere technical grounds. No
decision shall be based upon a compromise agreement.n each case, the
court shall take steps to prevent collusion between the parties, on one
hand, and discourage nuisance or harassment suits on the other.
In case two or more suits are instituted within the same jurisdiction
based on the same cause or causes of action, the suits shall be
consolidated before the branch of the court before whom the first suit
was assigned and said court shall have exclusive jurisdiction to hear
and decide said suits.ntervention shall also be allowed in conformity
with the Rules of Court.t each case, the court shall make sure that the
parties before it are duly represented and that all interests are
adequately protected.
Criminal actions may, likewise, be initiated by any Filipino citizen to
enforce the provisions of this Act.
SECTION 12. Penal Provisions. — Any stock broker who
issues certificates of sale or any transfer agent or the secretary of
the corporation who registers a transfer of shares in the books of the
corporation without previous payment of the tax imposed under Section four hereof, or any person who fails to pay or refuses to turn over
collections of the taxes, including surcharges and penalties if any,
mentioned in this Act within the period fixed in Section s four and five
hereof, or who delays, obstructs, or prevents the same or who fails to
file the returns within the period mentioned in Section four of this
Act; or who fails or refuses to effect release from the Account within
the period fixed in Section seven hereof, or who delays, obstructs, or
prevents the same, or who orders, causes, or effects the transfer or
diversion of the collection of this Account, or any portion thereof, or
otherwise unreasonably delays, prevents, or obstructs, the
implementation of the objectives of this Act shall be punished with a
fine not exceeding ten thousand pesos or imprisonment not exceeding six
years or both in the discretion of the court.
If the offender is a government official or employee, he shall in
addition, be dismissed from the service with prejudice to reinstatement
and with disqualification for election or appointment to any public
office.
Any local official, such as the city or municipal mayor, the city or
municipal treasurer, or any other city or municipal official or
employee, whether in a regular or acting capacity, who orders, causes
or effects the transfer or diversion of this Account or any portion
thereof, or otherwise unreasonably delays, prevents or obstructs the
implementation of the objectives of this Act, or who violates or
neglects to comply with any circular, order or process of the Police
Commission relative to the implementation of this Act shall, likewise,
be liable to the penalties hereinabove imposed.
Any official or employee of a local government, who shall consent or
permit, knowingly or negligently, any other person not entitled thereto
under this Act, to use or possess any firearm, ammunition or motor
vehicle issued by the Police Commission under this Act, shall be
punished with a fine not exceeding five thousand pesos and imprisonment
not exceeding three years.
If the offender is a stock broker or a transfer agent, in addition to
the penalties herein imposed, his or its license shall be cancelled and
he or it shall be perpetually disqualified to act as such stock broker
or transfer agent.
If the offender is a corporation, the secretary and/or members of the
board of directors or any of its officers who may have directly
participated in the violation of any of the provisions of this Act
shall be liable for the penalties herein imposed.
Any person other than the person to whom the Police Commission issued a
firearm who is found in possession thereof shall be liable to the
penalties imposed upon persons who possess firearms without a license
under the Revised Administrative Code, even if such firearm is covered
by a special permit, memorandum receipt or license in his name.
Any official or employee of the government, local or national, who
issues any memorandum receipt, special permit or license for a firearm
issued by the Police Commission, to anyone than the person to whom the
Police Commission issued the same, shall be punished with a fine not
exceeding ten thousand pesos and imprisonment not exceeding six years.
SECTION 13. Separability Clause. — The provisions of
this Act are hereby declared to be separable and, if any clause,
sentence, provision or section of this Act or application thereof to
any person or circumstance should for any reason be held invalid and
unconstitutional, such invalidity or unconstitutionality shall not
affect other provisions or applications of this Act which can be given
force and effect without the invalid or unconstitutional provisions or
application of this Act.
SECTION 14. Repealing Clause. — All Acts, executive
orders, rules and regulations, or parts thereof, which are inconsistent
with the provisions of this Act are hereby repealed, amended or
modified accordingly.
SECTION 15. Effectivity. — This Act shall take effect
upon its approval.
Approved: November 4,
1970
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