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PRESIDENTIAL DECREE NO. 1840
PRESIDENTIAL DECREE NO. 1840
- GRANTING A TAX AMNESTY ON UNTAXED INCOME AND/OR WEALTH EARNED
OR ACQUIRED DURING THE TAXABLE YEARS 1974 TO 1980 AND
REQUIRING THE FILING OF THE STATEMENT OF ASSETS, LIABILITIES, AND
NET WORTH
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WHEREAS, on
account of the relatively complicated manner of computing the tax to be
paid under Presidential Decree No. 1740, only a limited number of
taxpayers have availed of the benefits of the said Decree despite the
grant of immunity from investigation; chanroblesvirtualawlibrary
WHEREAS, to maximize the availment of tax amnesty and invite the
voluntary disclosure of untaxed income or wealth and encourage the
investment of such funds in productive enterprises, there is a need to
simplify the determination of the amnesty tax to be paid; and
WHEREAS, it is the desire to afford full opportunity for individual
taxpayers to come within the fold of the tax reforms and to provide
them with a clean start for the adoption of the gross income taxation
scheme.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers in me vested by the
Constitution, do hereby decree and order that:cralaw:red
Section 1. Coverage. — In case of voluntary
disclosure of previously untaxed income and/or wealth such as earnings,
receipts, gifts, bequests or any other acquisition from any source
whatsoever, realized here or abroad, by any individual taxpayer, which
are taxable under the National Internal Revenue Code, as amended, the
assessment and collection of all internal revenue taxes, including the
increments or penalties on account of non-payment, as well as all
civil, criminal or administrative liabilities arising from or incident
thereto under the National Internal Revenue Code, are hereby condoned
provided that the individual taxpayer shall pay.
a) A tax of twenty per centum (20%) on such
previously untaxed income or wealth in the case of resident citizens or
resident aliens; or
b) A tax of two per centum (2%) on such previously
untaxed income converted in U.S. dollars derived from sources abroad,
in the case of non-resident citizens.
Those who have already availed of the benefits granted under
Presidential Decree No. 1740 and its implementing regulations may also
take advantage of the benefits provided for under this Decree and shall
be allowed to credit any amount previously paid under Presidential
Decree No. 1740 against the amnesty tax payable under this Decree.
Section 2. Conditions for Immunity. — The immunity
granted under Section one of this Decree shall apply only under the
following conditions:cralaw:red
a) Such previously untaxed income and/or wealth must
have been earned or realized in any of the years 1974 to 1980;chanroblesvirtualawlibrary
b) The taxpayer must file an amnesty return on or
before November 30, 1981, and fully pay the tax due thereon; chanroblesvirtualawlibrary
c) The amnesty tax paid by the taxpayer under this
Decree shall not be less than P1,000.00 per taxable year; and
d) The taxpayer must file a statement of assets,
liabilities and net worth as of December 31, 1980, as required under
Section 6 hereof.
Section 3. Cases Not Covered by this Decree. — The
tax amnesty granted herein shall not apply to the following cases:cralaw:red
a) Criminal cases already filed in Court or with the
Fiscal's Office on or before September 17, 1980;chanroblesvirtualawlibrary
b) Internal revenue tax cases involving civil
liability which are the subject of a pending criminal action in the
Fiscal's Office or the Court prior to September 17, 1980;chanroblesvirtualawlibrary
c) Withholding tax at source liabilities provided for
under Sections 53, 54 and Chapter XI of Title II of the National
Internal Revenue Code; and transfer tax cases under Title III of the
same Code for which no certificate of clearance has as yet been issued;
and
d) Deficiency internal revenue taxes assessed on or
before September 17, 1980. For this purpose, the date of the assessment
notice shall be deemed to be the date of assessment of the deficiency
tax.
Section 4. Time, Manner and Place of Filing. — The
tax amnesty return shall be filed in the prescribed form with the
Office of the Regional Director, Revenue District Officer, Collection
Agent or the authorized Municipal Treasurer designated as collection
officer of the Bureau of Internal Revenue where the taxpayer has his
legal residence or place of business in the Philippines, or if he has
no legal residence or place of business in the Philippines, then with
the Commissioner of Internal Revenue, on or before November 30, 1981.
In the case of Filipino citizens residing abroad, the tax amnesty
return shall be filed with the nearest Philippine Embassy or Consulate
abroad or with the Office of the Commissioner of Internal Revenue.
The amnesty tax return must show the amount of untaxed income and/or
wealth for each year and the corresponding tax due thereon.
Section 5. Payment of Tax on Installment. — The tax
due as disclosed by the taxpayer in his return must be paid at the time
of the filing thereof. If the total tax due exceeds P50,000, the same
shall be paid in accordance with the following schedule:cralaw:red
a) If the amount due exceeds P50,000 but does not
exceed P100,000, the tax may be paid in two equal installments, the
first installment to be paid upon the filing of the return and the
second installment, on or before January 31, 1982;chanroblesvirtualawlibrary
b) If the amount due exceeds P100,000, the tax may be
paid in three equal installments as follows:cralaw:red
i) The first installment shall be paid upon the
filing of the return;chanroblesvirtualawlibrary
ii) The second installment shall be paid on or before
January 31, 1982; and
iii) The third installment shall be paid on or before
March 31, 1982.
c) In meritorious cases where the total amount due
exceeds P300,000.00, the Commissioner of Internal Revenue or the
Revenue Regional Director may, upon proper application, allow the
taxpayer to pay the P300,000.00 in accordance with the immediately
preceding schedule and the amount in excess thereof in equal monthly
installments beginning June 30, 1982, up to but not later than
September 30, 1982.
d) If any installment payment is not paid on the due
date of said installment, the whole unpaid amount will become due and
demandable and shall be subject to interest and penalties imposed under
the Tax Code. The corresponding letter of demand and assessment notice
shall immediately be issued for the collection of the amount due and
increments thereon.
Section 6. Filing of Net Worth Statement. — (a)
Persons required to make a statement of one worth. — All individuals,
whether a citizen residing in the Philippines or abroad or any alien
residing in the Philippines owning assets and/or properties amounting
to P50,000 or more as of December 31, 1980 and who is not required to
file a statement of assets, liabilities and net worth under Republic
Act No. 3019, as amended by Presidential Decree Nos. 677 and 1288 shall
file a sworn statement of assets, liabilities and net worth as of
December 31, 1980.
(b) When and where to file. — The statement of
assets, liabilities and net worth as of December 31, 1980 shall be
filed in the prescribed form not later than November 30, 1981, with the
Commissioner of Internal Revenue, Regional Director, Revenue District
Officer, Collection Agent or the authorized Municipal Treasurer who has
been designated as collection officer of the Bureau of Internal
Revenue, where the taxpayer has his legal residence or place of
business in the Philippines, or if he has no legal residence or place
of business in the Philippines, the with the Commissioner of Internal
Revenue. In the case of non-resident citizens, they may file their
statement with the nearest consular office in the foreign country where
they reside or may file the statement directly with the Commissioner of
Internal Revenue.
Section 7. Valuation. — (a) Assets. — The value of
the assets, whether real or personal shall be the cost thereof if
acquired by purchase or the fair market value as of the date of
acquisition if acquired by exchange or by gratuitous title. If the
property is used in trade or business, the depreciated value as of
December 31, 1980 shall be included in the statement. In the case of
assets already declared in the statement of assets and liabilities
filed by the taxpayer pursuant to Presidential Decree No. 379 or 631,
the value of such assets as declared therein shall be used. chanroblesvirtualawlibrary
(b) Liabilities. — Only liabilities and enforceable
obligations reducible in sums of money as of December 31, 1980 shall be
included in the statement. chanroblesvirtualawlibrary
Section 8. Penalties for failure to file statement or
rendering false or fraudulent statement. — Any individual required to
file the statement of assets, liabilities and net worth under this
Decree who knowingly makes a false declaration or who deliberately
fails to comply with any of the provisions hereof, shall upon
conviction pay a fine of not less than Five Thousand Pesos (P5,000.00)
and imprisonment of not less than two (2) years.
Section 9. Unlawful divulgence of information. — (a)
No information contained in the statements herein required shall be
published except in the form of tabulations and summaries having no
specified reference to the individual filing the statement.
(b) Except for internal revenue tax purposes, it
shall be unlawful for any officer or employee of the Bureau of Internal
Revenue or any government entity having knowledge of such declaration
of assets, liabilities and net worth to disclose to any person any
information relative to such declaration and any violation hereof shall
subject such offender to a fine in the amount of not less than Five
thousand pesos or imprisonment for not less than two years, or both,
and shall be summarily dismissed from the service for cause.
Section 10. The Ministry of Finance shall, upon the
recommendation of the Commissioner of Internal Revenue, promulgate the
necessary rules and regulations for the effective implementation of the
provisions of this Decree.
Section 11. Repealing Clause. — Any provision of
Presidential Decree No. 1740 and all other issuances pertinent thereto
which are inconsistent herewith are hereby repealed or modified
accordingly: Provided, That those who have already filed the statement
of assets, liabilities and net worth prescribed under Presidential
Decree No. 1740 need not file the statement required under this Decree.
Section 12. Effectivity. — This Decree shall take
effect upon approval.
Done in the City of Manila,
this 19th day of September, 1981.
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