QuestionsQuestions (Republic Act No. 91)
PD 370 enlarges the coverage of the tax amnesty for previously untaxed income and/or wealth, subject to specific conditions, especially for taxpayers who did not fully avail or failed to include required declarations under earlier amnesties.
PD 370 references Presidential Decree No. 23 (as amended) and Presidential Decree No. 157, which covered disclosure of previously untaxed/undeclared income and/or wealth acquired in certain earlier years; those periods had already expired.
Any person, natural or juridical, who for any reason failed to avail himself of PD 23 and PD 157; or who availed them but failed to include all required items—provided he voluntarily discloses under PD 370.
Earnings, receipts, gifts, bequests, or any other acquisitions from any source whatsoever which are or were previously taxable under the National Internal Revenue Code, realized here or abroad.
All internal revenue taxes including increments/penalties on account of nonpayment, as well as all civil, criminal, or administrative liabilities under specified laws (including the NIRC, Revised Penal Code, anti-graft law, administrative laws, and immigration/deportation rules, among others).
Fifteen percent (15%) of such previously untaxed income and/or wealth.
The previously untaxed income and/or wealth must have been earned or realized prior to 1973.
PD 370 provides exceptions including: (1) capital gains transactions where the taxpayer availed PD 16 but did not comply with its conditions; (2) tax liabilities (with or without assessments) on withholding tax at source under Sections 53 and 54 of the NIRC; (3) tax liabilities with assessment notices issued as of December 31, 1973; (4) tax cases subject of a valid information under Republic Act No. 2338 as of December 31, 1973; and (5) property transferred by reason of death or by donation during 1972.
The taxpayer must file the return with the Commissioner of Internal Revenue on or before June 28, 1974.
No. The return, filed in the prescribed BIR Form, “shall be kept confidential and shall not be subject to verification and/or investigation.” This is important because PD 370 limits post-filing inquiry, subject to the statute’s protections.
The cash must be repatriated and deposited with a bank in the Philippines or invested in specified instruments/enterprises within six (6) months from disclosure.
Allowed investments include: (1) government bonds; (2) government securities; (3) government debentures; (4) bonds/notes/commercial papers issued by domestic corporations; and (5) any productive enterprise.
If the amount due does not exceed P10,000, pay upon filing/at latest by June 28, 1974. If it exceeds P10,000 but not exceed P10,000.00 (as written in the text), it may be paid in two installments (first upon filing/June 28, second by Sept. 30, 1974). If it exceeds P50,000 but not exceed P300,000, it may be paid in three installments: upon filing by June 28, Sept. 30, and by Dec. 31, 1974. If amount exceeds P300,000, the CIR may grant extensions in meritorious cases, with the last installment not later than May 31, 1975—provided first installment is paid upon filing/June 28, 1974.
Interest at 14% per annum accrues on the unpaid amount from the due date until payment, but payment must be made not later than three (3) months from due date. If not paid within three months, the entire amount including unpaid installments becomes automatically due, and failure to pay within thirty (30) days renders the amnesty null and void.
The taxpayer is not subject to investigation (civil, criminal, or administrative) insofar as the declared previously untaxed income/wealth is concerned, and the declaration shall not be used as evidence against the declarant or to prejudice him in proceedings before courts or administrative bodies. The declaration is also not to be examined, inquired into, or looked into by any person or government office.
No. PD 370 makes it unlawful for any person with knowledge of such declaration to disclose any information relative to it. Violation subjects the offender to imprisonment of not more than five (5) years.
Any government official/employee who inquires, questions, or attempts to inquire into the amnesty return is guilty of grave misconduct and may be summarily dismissed from the service.