Purpose and Necessity of Amendment
- Practical experience revealed defects and ambiguities in the original law limiting the effective exercise of the Secretary's suspension authority.
- Amendments aim to clarify and strengthen the Secretary of Finance's power to protect taxpayers and the public against unjust local taxation.
Effective Date and Suspension Procedure of Tax Ordinances
- Tax ordinances generally take effect on the 15th day after passage, unless otherwise specified.
- The Secretary of Finance can suspend an ordinance within 120 days after receiving a copy if it is unjust, oppressive, confiscatory, or contrary to national economic policy.
- Suspension may be partial or total and lasts for thirty days.
- During suspension, the local legislative body must modify the ordinance to address objections or appeal to a competent court.
- Failure to act within thirty days results in the ordinance or suspended parts being considered revoked.
- The local legislative body cannot reimpose the suspended tax or fee until the grounds for suspension no longer exist.
Submission and Effectivity of Tax Ordinances
- Certified true copies of all city, municipal, and municipal district tax ordinances must be submitted to the Secretary of Finance within ten days of passage.
- If the Secretary takes no action within 120 days of receipt, the ordinance remains in force.
Filing and Resolution of Formal Protests
- Formal protests against a tax ordinance may be filed within 120 days after its passage.
- The Secretary of Finance has 60 days from receipt of the protest to issue a decision.
Local Legislative Body's Options Following Suspension Decision
- If the Secretary suspends an ordinance in whole or in part, the local legislative body has 30 days to either modify the ordinance according to the Secretary's decision or appeal to the appropriate court.
- Failure to respond within 30 days makes the Secretary's decision final.
Payment of Taxes under Suspended Ordinances
- Taxes or fees paid during the suspension period or the pendency of an appeal are considered paid under protest.
- This provision protects taxpayers pending final resolution.
Implementation and Supremacy of This Decree
- The Secretary of Finance is tasked with issuing implementing rules and regulations.
- This decree forms part of the laws of the land and takes effect immediately.
- Inconsistent laws, orders, rules, regulations, or parts thereof are repealed or modified accordingly.
Department of Finance Circular No. 11-73
- Issued on March 15, 1973, to facilitate the implementation of Presidential Decree No. 145.
- It prescribes the specific rules and regulations for enforcing the decree's provisions.