Presidential Decree No. 631 (PD 631) — 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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
SEC. 9. Any
provision of any law, decree, rule or regulation which is inconsistent
with this Decree is hereby revoked or amended accordingly.
SEC. 10. The Secretary of Finance, upon the
recommendation of the Commissioner of Internal Revenue, shall promulgate
the implementing regulations of this Decree.
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
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
