Republic of the Philippines
Congress of the Philippines
Metro ManilaThirteenth Congress
Third Regular SessionBegun and held in Metro Manila, on Monday, the twenty-fourth day of July, two thousand six.
Republic Act No. 9480
AN ACT ENHANCING REVENUE ADMINISTRATION AND COLLECTION BY GRANTING AN AMNESTY ON ALL UNPAID INTERNAL REVENUE TAXES IMPOSED BY THE NATIONAL GOVERNMENT FOR TAXABLE YEAR 2005 AND PRIOR YEARS
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Coverage. — There is hereby authorized and granted a tax amnesty which shall cover all national internal revenue taxes for the taxable year 2005 and prior years, with or without assessments duly issued therefore, that have remained unpaid as of December 31, 2005: Provided, however, That the amnesty hereby authorized and granted shall not cover persons or cases enumerated under Section 8 hereof.
SEC. 2. Availment of the Amnesty. — Any person, natural or juridical, who wishes to avail himself of the tax amnesty authorized and granted under this Act...
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Republic Acts
AN ACT ENHANCING REVENUE ADMINISTRATION AND COLLECTION BY GRANTING AN AMNESTY ON ALL UNPAID INTERNAL REVENUE TAXES IMPOSED BY THE NATIONAL GOVERNMENT FOR TAXABLE YEAR 2005 AND PRIOR YEARS
Republic Act No. 9480
Summary of Republic Act No. 9480
An Act Enhancing Revenue Administration and Collection by Granting an Amnesty on All Unpaid Internal Revenue Taxes Imposed by the National Government for Taxable Year 2005 and Prior Years
• Coverage (Section 1):
- Grants tax amnesty covering all national internal revenue taxes for taxable year 2005 and prior years that remained unpaid as of December 31, 2005.
- Exceptions are listed in Section 8.
• Availment of Amnesty (Section 2):
- To avail amnesty, taxpayers must file a notice, Tax Amnesty Return, and Statement of Assets, Liabilities and Networth (SALN) as of December 31, 2005 with the Bureau of Internal Revenue (BIR).
- Payment of applicable amnesty tax must be made within 6 months from effectivity of implementing rules and regulations (IRR).
• SALN Declaration (Section 3):
- SALN must declare assets (within or outside Philippines, real or personal, tangible or intangible), liabilities (legitimate and enforceable, secured or unsecured), and networth (difference between total assets and liabilities) as of December 31, 2005.
• Presumption of SALN Correctness (Section 4):
- SALN is presumed correct unless networth is understated by 30% or more, as established in proceedings initiated within 1 year of filing.
• Grant of Tax Amnesty and Rates (Section 5):
- Taxpayers can avail amnesty by paying amnesty tax based on declared networth as of December 31, 2005, according to the following rates:
- Individuals, trusts, estates: 5% or P50,000, whichever is higher
- Corporations with subscribed capital:
> Above P50 million: 5% or P500,000, whichever is higher
> Above P20 million to P50 million: 5% or P250,000, whichever is higher
> P5 million to P20 million: 5% or P100,000, whichever is higher
> Below P5 million: 5% or P25,000, whichever is higher
- Other juridical entities: 5% or P50,000, whichever is higher
- Taxpayers who filed balance sheet/SALN with 2005 income tax return must amend and pay 5% on increase in networth.
• Immunities and Privileges (Section 6):
- Taxpayers who availed amnesty and complied with conditions are immune from payment of taxes, additions, and civil, criminal or administrative penalties for taxable year 2005 and prior years.
- Tax Amnesty Returns and SALN are not admissible as evidence in proceedings related to taxable year 2005 and prior years, except for determining networth beginning January 1, 2006.
- Books of accounts and records for covered years cannot be examined, except for verifying refund, credit, incentive or exemption claims.
- Immunities do not apply if SALN and Tax Amnesty Return were not filed, or if networth was understated by 30% or more.
• Filing and Payment (Section 7):
- Tax Amnesty Return and amnesty tax payment must be filed and paid within 6 months from effectivity of IRR.
- Filing is with the Revenue District Officer having jurisdiction over taxpayer's residence or place of business.
• Exceptions (Section 8):
- Amnesty does not cover:
1. Withholding agents for withholding tax liabilities
2. Cases under Presidential Commission on Good Government
3. Cases involving unexplained/unlawfully acquired wealth or Anti-Graft and Corrupt Practices Act
4. Cases involving Anti-Money Laundering Law violations
5. Criminal cases for tax evasion, fraud, illegal exactions, malversation of public funds
6. Tax cases with final and executory court judgments
• Unlawful Divulgence of Returns and SALN (Section 9):
- Unlawful disclosure of Tax Amnesty Return and SALN information is prohibited, with penalties under Section 10(c).
- Commissioner of Internal Revenue may disclose information to Congress under certain conditions.
• Penalties (Section 10):
- Willful understatement of networth by 30% or more: perjury penalties under Revised Penal Code
- Willful failure to declare property: prima facie evidence of fraud, grounds for attachment of property
- Tax fraud investigation and prosecution for willful tax evasion
- For associations, partnerships, corporations: penalties on responsible officers and employees
- Unlawful divulgence of returns and SALN: fine of at least P50,000 and imprisonment of 6-10 years; perpetual disqualification from public office for government personnel
• Moratorium on Tax Amnesty (Section 11):
- Declares policy that grant of tax amnesty, in any manner or form, shall not be allowed henceforth, including administrative tax amnesty by BIR.
• Information Management Program (Section 12):
- Department of Finance, in coordination with BIR and other agencies, shall institute an Information Management Program for effective use of information from Tax Amnesty Returns and SALNs.
• Disposition of Proceeds (Section 13):
- P400 million from amnesty collection shall accrue to Department of Finance for instituting the Management Information System under Section 12.
• Publication of Taxpayer List (Section 14):
- Commissioner of Internal Revenue shall prepare and publish a list of taxpayers, their gross income and income taxes paid for the preceding taxable year, by May 31 of each year.
• Implementing Rules and Regulations (Section 15):
- Secretary of Finance shall promulgate necessary rules and regulations within 60 days from effectivity of the Act.
• Effectivity (Section 16):
- Act takes effect 15 days after publication in the Official Gazette or in two newspapers of general circulation, whichever comes earlier.
An Act Enhancing Revenue Administration and Collection by Granting an Amnesty on All Unpaid Internal Revenue Taxes Imposed by the National Government for Taxable Year 2005 and Prior Years
• Coverage (Section 1):
- Grants tax amnesty covering all national internal revenue taxes for taxable year 2005 and prior years that remained unpaid as of December 31, 2005.
- Exceptions are listed in Section 8.
• Availment of Amnesty (Section 2):
- To avail amnesty, taxpayers must file a notice, Tax Amnesty Return, and Statement of Assets, Liabilities and Networth (SALN) as of December 31, 2005 with the Bureau of Internal Revenue (BIR).
- Payment of applicable amnesty tax must be made within 6 months from effectivity of implementing rules and regulations (IRR).
• SALN Declaration (Section 3):
- SALN must declare assets (within or outside Philippines, real or personal, tangible or intangible), liabilities (legitimate and enforceable, secured or unsecured), and networth (difference between total assets and liabilities) as of December 31, 2005.
• Presumption of SALN Correctness (Section 4):
- SALN is presumed correct unless networth is understated by 30% or more, as established in proceedings initiated within 1 year of filing.
• Grant of Tax Amnesty and Rates (Section 5):
- Taxpayers can avail amnesty by paying amnesty tax based on declared networth as of December 31, 2005, according to the following rates:
- Individuals, trusts, estates: 5% or P50,000, whichever is higher
- Corporations with subscribed capital:
> Above P50 million: 5% or P500,000, whichever is higher
> Above P20 million to P50 million: 5% or P250,000, whichever is higher
> P5 million to P20 million: 5% or P100,000, whichever is higher
> Below P5 million: 5% or P25,000, whichever is higher
- Other juridical entities: 5% or P50,000, whichever is higher
- Taxpayers who filed balance sheet/SALN with 2005 income tax return must amend and pay 5% on increase in networth.
• Immunities and Privileges (Section 6):
- Taxpayers who availed amnesty and complied with conditions are immune from payment of taxes, additions, and civil, criminal or administrative penalties for taxable year 2005 and prior years.
- Tax Amnesty Returns and SALN are not admissible as evidence in proceedings related to taxable year 2005 and prior years, except for determining networth beginning January 1, 2006.
- Books of accounts and records for covered years cannot be examined, except for verifying refund, credit, incentive or exemption claims.
- Immunities do not apply if SALN and Tax Amnesty Return were not filed, or if networth was understated by 30% or more.
• Filing and Payment (Section 7):
- Tax Amnesty Return and amnesty tax payment must be filed and paid within 6 months from effectivity of IRR.
- Filing is with the Revenue District Officer having jurisdiction over taxpayer's residence or place of business.
• Exceptions (Section 8):
- Amnesty does not cover:
1. Withholding agents for withholding tax liabilities
2. Cases under Presidential Commission on Good Government
3. Cases involving unexplained/unlawfully acquired wealth or Anti-Graft and Corrupt Practices Act
4. Cases involving Anti-Money Laundering Law violations
5. Criminal cases for tax evasion, fraud, illegal exactions, malversation of public funds
6. Tax cases with final and executory court judgments
• Unlawful Divulgence of Returns and SALN (Section 9):
- Unlawful disclosure of Tax Amnesty Return and SALN information is prohibited, with penalties under Section 10(c).
- Commissioner of Internal Revenue may disclose information to Congress under certain conditions.
• Penalties (Section 10):
- Willful understatement of networth by 30% or more: perjury penalties under Revised Penal Code
- Willful failure to declare property: prima facie evidence of fraud, grounds for attachment of property
- Tax fraud investigation and prosecution for willful tax evasion
- For associations, partnerships, corporations: penalties on responsible officers and employees
- Unlawful divulgence of returns and SALN: fine of at least P50,000 and imprisonment of 6-10 years; perpetual disqualification from public office for government personnel
• Moratorium on Tax Amnesty (Section 11):
- Declares policy that grant of tax amnesty, in any manner or form, shall not be allowed henceforth, including administrative tax amnesty by BIR.
• Information Management Program (Section 12):
- Department of Finance, in coordination with BIR and other agencies, shall institute an Information Management Program for effective use of information from Tax Amnesty Returns and SALNs.
• Disposition of Proceeds (Section 13):
- P400 million from amnesty collection shall accrue to Department of Finance for instituting the Management Information System under Section 12.
• Publication of Taxpayer List (Section 14):
- Commissioner of Internal Revenue shall prepare and publish a list of taxpayers, their gross income and income taxes paid for the preceding taxable year, by May 31 of each year.
• Implementing Rules and Regulations (Section 15):
- Secretary of Finance shall promulgate necessary rules and regulations within 60 days from effectivity of the Act.
• Effectivity (Section 16):
- Act takes effect 15 days after publication in the Official Gazette or in two newspapers of general circulation, whichever comes earlier.