Granting An Ultimate 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 Wort
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Granting An Ultimate 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 Wort
Presidential Decree No. 631
January 6, 1975
Case Overview and Summary
Summary of Presidential Decree No. 631Tax Amnesty on Untaxed Income and Wealth
- Grants an ultimate and final tax amnesty on untaxed income and/or wealth for 1973 and prior years. (Section 1)
- Allows voluntary disclosure of untaxed income and/or wealth by paying 20% of the amount. (Section 1)
Coverage and Exclusions
- Applies to untaxed income and/or wealth earned, received, or acquired in 1973 and prior years. (Section 2)
- Excludes:
- Withholding tax liabilities (Section 2a)
- Tax liabilities with assessment notices issued before the decree's effectivity (Section 2b)
- Criminal cases involving tax violations already filed in court or with the Fiscal's Office before the decree's effectivity (Section 2c)
- Property transferred by reason of death, donation, sale, or exchange for less than adequate consideration in 1972 and 1973 (Section 2d)
- Tax cases under investigation by the Bureau of Internal Revenue due to a valid information filed after July 1, 1974, and before the decree's effectivity (Section 2e)
Filing Requirements
- Tax amnesty return must be filed with the BIR by February 28, 1975, showing the amount of untaxed income and/or wealth. (Section 3)
- An amended statement of assets, liabilities, and net worth must be filed along with the tax amnesty return. (Section 3)
- Persons with taxed assets less than ₱50,000 as of December 31, 1973, and untaxed income or wealth, may file a tax amnesty return without a statement of assets, liabilities, and net worth if the total does not exceed ₱50,000. (Section 4)
Payment Terms
- If the amount due is not more than ₱5,000, it must be paid upon filing the return, but not later than February 28, 1975. (Section 5a)
- If the amount due exceeds ₱5,000 but is not more than ₱50,000, it may be paid in two equal installments, with the first installment paid upon filing the return, but not later than February 28, 1975, and the second installment on or before May 15, 1975. (Section 5b)
- If the amount due exceeds ₱50,000, it may be paid in three equal installments, with the first installment paid upon filing the return, but not later than February 28, 1975, the second installment on or before May 15, 1975, and the third installment on or before August 15, 1975. (Section 5c)
- In highly meritorious cases where the amount due exceeds ₱300,000, the Commissioner of Internal Revenue may grant an extension of time for payment in equal installments, not exceeding two years from the date the last installment is originally due. (Section 5d)
- If any installment is not paid on the due date, interest at 14% per annum will be charged from the due date to the date of payment, which must be made within three months from the due date. Otherwise, the entire amount, including all unpaid installments, shall automatically become due, and failure to pay within 30 days shall render the amnesty null and void. (Section 5e)
Immunities and Guarantees
- Upon payment of the tax, the taxpayer shall be relieved from any liability to any internal revenue tax, penalties, and civil, criminal, or administrative liabilities arising from or incident to the filing of the tax amnesty return. (Section 6)
- The taxpayer shall not be subject to any investigation regarding the previously untaxed income and/or wealth, and the tax amnesty return shall not be used as evidence against the taxpayer in any proceeding. (Section 6)
- The taxpayer's books of account 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 claims for tax refunds, credits (other than refunds or credits of withheld taxes on wages), tax incentives, and/or exemptions under existing laws, upon written authority of the Commissioner of Internal Revenue. (Section 6)
- The taxpayer shall enjoy the same immunities and guarantees with respect to the statement of assets, liabilities, and net worth filed under Presidential Decree No. 379, as amended, or the amended statement filed pursuant to this decree. (Section 7)
- The net worth appearing on the statement shall be considered as the taxpayer's valid and correct net worth as of January 1, 1974, and any unexplained increase in net worth after that date shall be presumed as taxable income in the year when such increase occurred, was established, or discovered. (Section 7)
- If the taxpayer attributes the increase in net worth to any asset or disposal of any asset not included in the statement of assets, liabilities, and net worth filed under Presidential Decree No. 379, as amended, the taxpayer shall be presumed to have filed a fraudulent statement and shall, upon conviction, pay a fine of not more than ₱5,000 and suffer imprisonment of not more than five years. (Section 7)
Confidentiality and Penalties
- It shall be unlawful for any person having knowledge of the tax amnesty return and statements of assets, liabilities, and net worth filed pursuant to this decree to disclose any information relative to such return. Violation shall subject the offender to a fine of not less than ₱5,000 or imprisonment for not less than two years nor more than five years, or both. (Section 8)
- 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 the person may be summarily dismissed from service. (Section 8)
Implementing Regulations
- Any provision of any law, decree, rule, or regulation inconsistent with this decree is hereby revoked or amended accordingly. (Section 9)
- The Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue, shall promulgate the implementing regulations of this decree. (Section 10)
Effectivity
- This decree shall take effect immediately. (Section 11)
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Granting An Ultimate 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 Wort
Presidential Decree No. 631
•January 6, 1975
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 631 January 6, 1975
GRANTING AN ULTIMATE 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...
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