WHEREAS, the periods granted under Presidential Decree No.
23, as amended, proclaiming a tax amnesty on the disclosure of
previously untaxed income and/or wealth acquired in 1971 and prior years
and Presidential Decree No. 157 proclaiming a tax amnesty on undeclared
income and/or wealth acquired in 1972 have already expired;
WHEREAS, notwithstanding the unprecedented response of
taxpayers who availed themselves of the tax amnesty provided by
Presidential Decree No. 23, there still remain a considerable number of
taxpayers willing to avail themselves of the aforesaid tax amnesty or
make amendments on their tax amnesty returns;
WHEREAS, it is the avowed policy of the Government to
afford every opportunity for all taxpayers to come within the fold of
the reforms under the New Society;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President 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, in order to enlarge
the coverage of the tax amnesty on previously untaxed income and/or
wealth, subject to certain conditions, do hereby order and decree that:
A tax amnesty is hereby granted to any person, natural or
juridical, who for any reason whatsoever failed to avail himself of
Presidential Decree No. 23 and Presidential Decree No. 157; or, in so availing
himself of the said Presidential Decrees, failed to include
all that were required to be declared therein if he now voluntarily
discloses under this Decree all his previously untaxed income and/or
wealth such as earnings, receipts, gifts, bequests, or any other
acquisitions from any source whatsoever which are or were previously
taxable under the National Internal Revenue Code, realized here or
abroad, by condoning all internal revenue taxes including the increments
or penalties on account of nonpayment as well as all civil, criminal or
administrative liabilities under the National Internal Revenue Code,
the Revised Penal Code, the Anti-Graft and Corrupt Practices Act, the
Revised Administrative Code, the Civil Service Laws and Regulations,
laws and regulations on Immigration and Deportation, or any other
applicable law or proclamation, as it is hereby condoned, provided a tax
of fifteen per centum (15%) on such previously untaxed income
and/or wealth is imposed subject to the following conditions:
Such previously untaxed income
and/or wealth must have been earned or realized prior to 1973, except
the following:
(1) Capital gains transactions where the taxpayer has
availed himself of Presidential Decree No. 16, as amended, but has not
complied with the conditions thereof;
(2) Tax liabilities with or without assessments, on
withholding tax at source provided under Sections 53 and 54 of the
National Internal Revenue Code, as amended;
(3) Tax liabilities with assessment notices issued as of
December 31, 1973;
(4) Tax cases which are the subject of a valid information
under Republic Act No. 2338, as of December 31, 1973; and
(5) Property transferred by reason of death or by donation
during the year 1972.
The taxpayer must file a return with the
Commissioner of Internal Revenue on or before June 28, 1974, showing
such previously untaxed income and/or wealth in the prescribed BIR Form,
which shall be kept confidential and shall not be subject to
verification and/or investigation.
If such previously untaxed income and/or wealth or a 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 time of disclosure:
1.
Government bonds;
2. Government securities;
3.
Government debentures;
4.
Bonds, notes, or other commercial papers issued by domestic
corporations; or
5. Any productive enterprise.
The tax imposed under paragraph 1 hereof shall be paid
within the following period:
If the amount due does not exceed
P10,000, the tax must be paid at the time of the filing of the return,
but not later than June 28, 1974;
If the amount due exceeds P10.000 but does not
exceed P10,000.00 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 June 28, 1974, and the second installment shall be paid on or
before September 30, 1974;
If the amount due exceeds P50,000.00 but does not
exceed P300,000.00 the tax may be paid in three equal installments,
according to the following schedule:
(1) The first installment shall be paid upon the filing of
the return but not later than June 28, 1974;
(2) The second installment shall be paid on or before
September 30, 1974; and
(3) The third installment shall be paid on or before
December 31, 1974;
In meritorious cases and where the
amount 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 later than June 28, 1974, and the last installment not
later than May 31, 1975;
If any installment payment is not paid on the due date
of said installment, there shall be collected as part of the tax
interest 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 be due on such date and failure to pay the same within
thirty (30) days shall render the amnesty granted herein null and void.
After the tax imposed under this Decree shall have been
paid, 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 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. It shall be unlawful for
any person having knowledge of such declaration to disclose any
information relative to such declaration and any violation hereof shall
subject the offender to an imprisonment of not more than five (5) years.
Any government official or employee who would inquire, question or
attempt to inquire into the tax amnesty return filed by any taxpayer
pursuant to this Decree shall be guilty of grave misconduct for which he
may be summarily dismissed from the service.
The Secretary of Finance, upon recommendation of the
Commissioner of Internal Revenue, shall promulgate the implementing
regulations of this Decree.
Done in the City of Manila, this 9th day of January, in the year
of Our Lord, nineteen hundred and seventy-four.
(Sgd.) FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.) ROBERTO V. REYES
Acting Executive Secretary