PROCLAIMING A TAX AMNESTY, SUBJECT TO CERTAIN CONDITIONS[*]
WHEREAS, it is the policy of the Government to give
tax evaders a chance to reform and be a part of the New Society with a
clean slate;
WHEREAS, tax evaders who wish to relent and are
willing to reform may be reluctant to disclose their liability for
income taxes because of the criminal and civil penalties attendant to
tax evasion;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of
the Republic of the Philippines, by virtue of the powers in me vested
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 declare and order that:
In all cases of voluntary disclosures of previously untaxed income
realized here or abroad by any taxpayer, natural or juridical,, the
collection of the income tax and penalties incident to non-payment, as
well as all criminal and civil liabilities under the National Internal
Revenue Code, the Revised Penal Code, the Anti-Graft and Corrupt
Practices Act or any other law applicable thereto, is hereby condoned
and, in lieu thereof, a tax of TEN PERCENTUM (10%) on such previously
untaxed income is hereby imposed, subject to the following conditions:
(a) Such previously untaxed income must have been earned or
realized prior to 1972;
(b) The taxpayer must file a notice and return with the Commissioner
of Internal Revenue on or before March 31, 1972 showing such previously
untaxed income;
(c) If such previously untaxed income, or 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 the time of such disclosure:
1) Government bonds
2) Government securities
3) Government debentures or
4) Any productive enterprise
This condition shall apply also if such previously untaxed income, or
part thereof, consist of cash hoarded in private vaults or safe deposit
boxes in the Philippines.
The tax imposed under Paragraph 1 hereof, shall be paid within
the following period:
(a) If the amount does not exceed P10.000.00 the tax must be paid
at the time of the filing of notice and return but not later than March
31, 1973;
(b) If the amount exceeds P10,000.00 the tax may be paid in two (2)
installments, the first installment to be paid upon the filing of. the
notice and return but not later than March 31, 1973; and the second
installment within three (3) months from the date of the filing of the
return but not later than June 30, 1973.
After the tax imposed under this Decree shall have been paid,
the taxpayer shall be cleared of all investigations, whether civil or
criminal, insofar as such previously untaxed income is concerned.
The Secretary of Finance, upon recommendation of the
Commissioner of Internal Revenue, shall promulgate the Rules and
Regulations to implement this Decree.
Done in the City of Manila, this 16th day of October, in the year of
Our Lord, nineteen hundred and seventy-two.
(Sgd.) FERDINAND E. MARCOS
President
Republic of the Philippines
[*] Amended by Presidential Decree
No. 47.