QuestionsQuestions (Republic Act No. 1191)
RA 1191 is an Act to demonetize Treasury Certificates and Central Bank notes of one-hundred-peso denominations (i.e., “over one hundred pesos”) and replace them with notes of lower denominations.
The Central Bank of the Philippines was ordered to demonetize the specified higher-denomination Treasury certificates and Central Bank notes and replace them with lower denominations.
Owners or holders of Treasury certificates and Central Bank notes of denominations over one hundred pesos—individuals, associations, corporations, or institutions—must surrender them within six months from the approval of the Act.
In exchange for the surrendered notes, the holders receive their equivalent amount in Treasury certificates or Central Bank notes of smaller denominations.
No. Section 3 expressly provides that there shall be “no question asked” as to the origin of the treasury certificates and bank notes, or whether taxes were collected on them in preceding years.
Section 3 states that the paper moneys, if not included in corresponding tax returns, shall be included in the holder’s income tax returns and other forms of taxes corresponding to calendar year 1953, without incurring any penalty.
It must promulgate necessary rules and regulations to effect and facilitate the surrendering and replacing of the demonetized Treasury certificates and Central Bank notes.
The Central Bank must publish (or cause to be published) the serial numbers of the demonetized notes that have been surrendered, and likewise publish those that have not been surrendered or that have been lost.
They are considered condemned after six months from the approval of the Act.
Holders may use the notes to buy government bonds and securities, industrial bonds and securities approved by the Securities and Exchange Commission, or deposit them in banks during the six-month period after approval.
Not during the six-month surrender period. Section 5 allows their use for certain investment and banking activities within that period.
Section 6 states that the Act shall take effect upon its approval.
It limits inquiries on origin and prior tax collection (Section 3), and provides a penalty-free mechanism for including the amounts in taxes for calendar year 1953.
It sets the deadline to surrender the notes (Section 2) and the point at which they are considered condemned (Section 5).