A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
the
Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 631
PRESIDENTIAL DECREE NO. 631 -
GRANTING AN ULTIMATE AMNESTY ON UNTAXED INCOME AND/OR WEALTH EARNED OR
ACQUIRED IN 1973 AND PRIOR YEARS AND IMMUNITY FROM INVESTIGATION OF THE
STATEMENT OF ASSETS, LIABILITIES, AND NET WORTH REQUIRED BY
PRESIDENTIAL DECREE NO. 379, AS AMENDED
|
chanroblesvirtualawlibrary
WHEREAS,
consistent with its policy of persuasion and conciliationmed at
promoting national solidarity and cooperation, the government has
launched a tax amnesty program whose main thrust has been to achieve
reformation and change in the attitude and sense of values of errant
taxpayers, instead of taking punitive action against them; chanroblesvirtualawlibrary
WHEREAS, to place the tax amnesty program in its proper perspective,
the government is willing to give to all taxpayers concerned to make a
true and faithful disclosure of their untaxed income and/or wealth for
1973 and prior years and opportunity to adjust their statements of
assets, liabilities, and net worth, thereby earning the full benefits
and immunities of tax amnesty; and
WHEREAS, the government, in requiring truthful disclosure of untaxed
income as a token of reformation, is likewise willing to grant immunity
from investigation of the statement of assets, liabilities, and net
worth filed under Presidential Decree No. 379, as amended, by taxpayers
who avail of tax amnesty for 1973 and prior years.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution, do hereby
order and decree an ultimate and final tax amnesty on untaxed income
and/or wealth, as follows:cralaw:red
Section 1. A tax amnesty is hereby granted to any
person, natural or juridical, who has not availed of previous amnesty
decrees on untaxed income and/or wealth, or having availed thereof, did
not make a full and complete disclosure of his untaxed income and/or
wealth, or who failed to declare for taxation purposes his true and
correct income or receipts earned or received in 1973, which were
taxable under the National Internal Revenue Code, if such person
voluntarily renders a return of all untaxed income and/or wealth for
1973 and prior years and pays an amount equivalent to twenty (20%) per
centum of such untaxed income and/or wealth.
Section 2. The provisions of this Decree shall apply
to untaxed income and/or wealth earned, received, or acquired in 1973
and prior years, except the following:cralaw:red
a. Tax liabilities, with or without assessments, on
withholding tax at source provided in sections 53 and 54 of the
National Internal Revenue Code, as amended;chanroblesvirtualawlibrary
b. Tax liabilities with assessment notices issued on
or before the effectivity of this Decree;chanroblesvirtualawlibrary
c. Criminal cases involving violations of internal
revenue laws already filed in court or with the Fiscal's Office on or
before the effectivity of this Decree;chanroblesvirtualawlibrary
d. Property transferred by reason of death or by
donation or sale, exchange, or other transfers for less than adequate
consideration in money or money's worth during the years 1972 and 1973;
and chanroblesvirtualawlibrary
e. Tax cases pending investigation by the Bureau of
Internal Revenue by reason of a valid information under Republic Act
No. 2338 filed after July 1, 1974 and before the effectivity of this
Decree:cralaw:red
Section 3. The tax amnesty return shall be filed in
the prescribed BIR Form with the Office of the Commissioner of Internal
Revenue, Regional Director or Revenue District Officer on or before
February 28, 1975, showing the amount of untaxed income and/or wealth
for 1973 and prior years. Together with the tax amnesty return, an
amended statement of assets, liabilities and net worth which shall
include the untaxed income and/or wealth correspondingly indicated in
the particular kind of asset(s) should be filed. In no case shall the
untaxed income or wealth disclosed for amnesty purposes be less than
the difference between the total value of assets as adjusted and the
value of assets per original statement.
Section 4. Any person who had taxed assets amounting
to less than P50,000.00 as of December 31, 1973, and who also had as of
the date hidden income or untaxed wealth, may avail of the tax amnesty
by filing a return in the prescribed BIR Form: Provided, That when the
previously taxed assets and the undisclosed untaxed income or wealth
would amount to a total of P50,000.00 or more, the statement of assets,
liabilities and net worth required under P.D. 379, as amended, shall
likewise be filed. chanroblesvirtualawlibrary
Section 5. The amnesty tax imposed herein shall be
paid as follows:cralaw:red
a. If the amount due does not exceed P5,000.00, the
tax must be paid at the time of the filing of the return, but not later
than February 28, 1975;chanroblesvirtualawlibrary
b. If the amount due exceeds P5,000.00 but is not
more than P50,000.00, the tax may be paid in two equal installments,
the first installment to be paid upon the filing of the return but not
later than February 28, 1975, and the second installment on or before
May 15, 1975;chanroblesvirtualawlibrary
c. If the amount due exceeds P50,000.00, the tax may
be paid in three equal installments, to wit:cralaw:red
1) The first installment shall be paid upon the
filing of the return but not later than February 28, 1975;chanroblesvirtualawlibrary
2) The second installment shall be paid on or before
May 15, 1975; and
3) The third installment shall be paid on or before
August 15, 1975.
d. In highly meritorious cases and where the amount
due 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 less than February 28, 1975, and provided that the
extended period of payment by installments does not exceed two years
from date the last installment is originally due.
e. If any installment is not paid on the due date
thereof, there shall be collected as part of the tax interests 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
become due on such date, and failure to pay the same within thirty (30)
days shall render the amnesty granted herein null and void.
Section 6. Upon payment of the tax prescribed in
Section 1 and in the manner provided in Section 5, both of this Decree,
the taxpayer shall be relieved from any liability to any internal
revenue tax otherwise due and payable on such untaxed income and/or
wealth, including any increment thereto and penalty on account of
non-payment, as well as from all civil, criminal, or administrative
liabilities arising from or incident to the filing of the tax amnesty
return under the National Internal Revenue Code, Revised Penal Code,
Anti-Graft and Corrupt Practices Act, Revised Administrative Code,
Civil Service Laws and Regulations, Immigration and Deportation laws
and regulations, and any other law, decree or proclamation.
Furthermore, 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 the taxpayer's tax
amnesty return 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.
And, finally, his books of account and other records for 1973 and prior
years shall be considered closed and shall not be subject to any
examination, except in connection with the verification of the validity
or correctness of a claim for a grant of any tax refund, tax credit
(other than refund or credit of withheld taxes on wages), tax incentive
and/or exemptions under existing laws, upon written authority of the
Commissioner of Internal Revenue. chanroblesvirtualawlibrary
Section 7. Any person who avails of the amnesty
provided in this Decree shall also enjoy the immunities and guarantees
provided in the preceding section with respect to the statement of
assets, liabilities and net worth he filed under Presidential Decree
No. 379, as amended, or to the amended statement he files pursuant to
Section 3 of this Decree, and such statement of assets, liabilities,
net worth shall likewise be given the same treatment and regard as the
amnesty return he files under this decree, except in the determination
of his future tax liabilities. For this purpose, the net worth
appearing on such statement shall be considered as his valid and
correct net worth as of January 1, 1974, and any unexplained increase
in his net worth after that date shall be presumed as taxable income in
year when such increase occurred, was established, or discovered and in
case he attributes the increase to any asset or disposal of any asset
which was not included in the statement of assets, liabilities and net
worth he filed under Presidential Decree No. 379, as amended, he shall
be presumed to have filed a fraudulent statement and shall, upon
conviction, pay a fine of not more than Five Thousand Pesos (P5,000.00)
and suffer imprisonment of not more than five (5) years. If the
taxpayer is a juridical person, the manager or person in charge of the
management of the business or affairs thereof shall be responsible
therefor and upon conviction, shall pay a fine of not more than Five
Thousand Pesos (P5,000.00) and suffer imprisonment of not more than
five (5) years.
Section 8. Except as otherwise provided in this
Decree, it shall be unlawful for any person having knowledge of the tax
amnesty return and statements of assets, liabilities, and net worth
filed pursuant to this Decree to disclose any information relative to
such return and any violation hereof shall subject the offender to a
fine in the amount of not less than Five Thousand Pesos (P5,000.00) or
imprisonment for not less than two (2) years nor more than five (5)
years or both.
Any person who would inquire, question or attempt to inquire into the
tax amnesty return and statement filed by any taxpayer pursuant to this
Decree shall be guilty of grave misconduct for which he may summarily
be dismissed from the service.
Section 9. Any provision of any law, decree, rule or
regulation which is inconsistent with this Decree is hereby revoked or
amended accordingly.
Section 10. The Secretary of Finance, upon the
recommendation of the Commissioner of Internal Revenue, shall
promulgate the implementing regulations of this Decree.
Section 11. This Decree shall take effect immediately.
DONE in the City of Manila,
this 6th day of January, in the year of Our Lord, nineteen hundred and
seventy-five.
|
Back
to Home
- Back
to Main
chanroblesvirtuallawlibrary
Since 19.07.98
|