Requiring All Persons, Natural Or Juridical, Owning Or Administering Real Property, Including The Improvements Thereon, To File Sworn Statement Of The True Value Of Such Property.

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 25 October 20, 1972

REQUIRING ALL PERSONS, NATURAL OR JURIDICAL, OWNING OR ADMINISTERING REAL PROPERTY, INCLUDING THE IMPROVEMENTS THEREON, TO FILE SWORN STATEMENT OF THE TRUE VALUE OF SUCH PROPERTY

I, FERDINAND E. MARCOS, President of the Philippines, pursuant to the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and in accordance with Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, and knowing

THAT, values of real property and improvements therein are usually under declared obviously for the purpose of evading payment of higher and correct taxes due the government:

THAT, although real property and the improvements therein are undervalued for purpose of taxation, these real property are sold to the government when needed for public purposes, such as the construction of roads and other infrastructure, at their market value which are usually ten (10) to twenty (20) times more than the value declared by...

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Summary of Presidential Decree No. 25

Requiring Sworn Statement of True Value of Real Property
- All persons owning or administering real property, including improvements, must file a sworn statement declaring the true value of their property with the Provincial or City Assessor by January 31, 1973. (Section 1)
- The sworn statement, when approved, will be the basis for:
    - Payment of real property tax starting 1973 (Section 1)
    - Determining just compensation for expropriation or appropriation by the government (Section 1)

Appeals Process
- Appeals from decisions of Provincial or City Boards of Tax Appeals can be made to the Central Board of Tax Appeals. (Section 2)
- The Central Board of Tax Appeals is composed of: (Section 2)
    - Secretary of Finance (Chairman)
    - Secretary of Justice (Member)
    - Secretary of Local Governments and Community Development (Member)
- The Central Board of Tax Appeals' decision is final. (Section 2)
- The Central Board of Tax Appeals will promulgate rules and regulations governing appeal procedures. (Section 2)

Determination of True Value
- The true value of land and improvements is the value for taxation plus the market value, divided by two. (Section 3)

Penalties
- Anyone who knowingly makes a false declaration or fails to file the required statement will be fined between ₱100 and ₱10,000 upon conviction. (Section 4)
- If the offense is committed by a corporation, the manager or person in charge will be held responsible. (Section 4)

Implementation
- The Secretary of Finance is ordered to prepare necessary forms and formulate implementing details for Provincial and City Assessors. (Section 5)

Effectivity
- This Decree takes effect immediately after publication and forms part of the laws of the land. (Section 6)