Preamble
WHEREAS, the Bureau of Internal Revenue has launched an extensive and thorough investigation of income tax returns for the purpose of ferreting out individuals who have undeclared their net taxable income for the years 1974 to 1979; WHEREAS, individuals who, after investigation, are found to have incorrectly paid their income tax liabilities for the aforesaid years through deliberate failure to report taxable income, willful understatement of gross income or intentional filing of claims for fictitious deductions or exemptions, will be assessed the 50% fraud penalty and thereafter will be prosecuted for purposes of seeking their conviction; WHEREAS, there is a substantial number of individuals who have evaded payment of income taxes and who are now amenable to the filing of amended tax returns where they will voluntarily declare their true and correct taxable income if given the opportunity to do so without the payment of the corresponding surcharges, penalties and interests; WHEREAS, there is an urgent need to up-date the government’s statistics on the assets, liabilities and net worth of taxpayers in the country for purposes of tax and economic development planning; WHEREAS, the statement of assets, liabilities and net worth filed by taxpayers under Presidential Decrees Nos. 379 and 631 is considered by the government for tax purposes, as their true and accurate net worth as of January 1, 1974 and any unexplained increase in their respective net worth after that date shall be presumed as taxable income in the year when such increase occurred, was established or discovered. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers in me vested by the Constitution do hereby order and decree: