GRANTING AN ULTIMATE TAX 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.

• Number: Presidential Decree No. 631
• Sections: 12

Preamble

WHEREAS, consistent with its policy of persuasion and

conciliation aimed 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;

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:

Section 1

SEC. 1. A tax amnesty is hereby granted to any person,

natural or juridical, who has not availed to 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

SEC. 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:

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;

Tax liabilities with assessment notices issued on or before the

effectivity of this Decree;

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;

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

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.

Section 3

SEC. 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

SEC. 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 that

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.

Section 5

SEC. 5. The amnesty tax imposed herein shall be paid as

follows:

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;

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;

If the amount due exceeds P50,000.00, the tax may be paid in

three equal installments, to wit:

The first installment shall be paid upon the filing of the

return but not later than February 28, 1975;

The second installment shall be paid on or before May 15,

1975; and

The third installment shall be paid on or before August 15,

1975.

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

later than February 28, 1975, and provided that the extended period of

payment by installments does not exceed two years from the date the last

installment or originally due.

If any installment is not paid on the due date thereof, 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 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

SEC. 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 accounts 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.

Section 7

SEC. 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 the 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

SEC. 8. Except as otherwise provided in this Decree, it

shall be unlawful for any person having knowledge of the tax amnesty

return and statement 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

SEC. 9. Any

provision of any law, decree, rule or regulation which is inconsistent

with this Decree is hereby revoked or amended accordingly.

Section 10

SEC. 10. The Secretary of Finance, upon the

recommendation of the Commissioner of Internal Revenue, shall promulgate

the implementing regulations of this Decree.

Section 11

SEC. 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.

(Sgd.)

FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary