Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
Seventeenth Congress
First Regular Session

4011

House Bill No.

Introduced by REPRESENTATIVES JOCELYN S. LIMKAICHONG,
RENE L. RELAMPAGOS, JONAS CORTES, and AILEEN C. RADAZA

EXPLANATORY NOTE

This proposal seeks to address the revenue loss resulting from the upcoming
comprehensive tax reform packages which are expected to result in a decrease
of revenue collections on the short term. Moreover, this proposal would also like
to encourage delinquent taxpayers to finally settle their accounts and to
encourage them to be comply fully with our tax laws and administrative rules

‘Thus, this proposal would grant tax amnesties towards all taxpayers who avail
of the privilege, subject to certain terms and conditions and which shall cover all
types of national internal revenue taxes for the taxable year 2015 and prior years.
This would result in a significant increase in tax collections while at the same
time broaden the taxpayer base as well as giving erring persons/entities a chance
to become compliant and responsible taxpayers.

REP. JOCELYN

— REP. JONAS CORTES

REP. AIL) RADAZA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

4011

House Bill No.

Introduced by Representatives Jocelyn S. Limkaichong, Rene
Relampagos, Jonas Cortes, and Aileen Radaza

AN ACT ENHANCING REVENUE ADMINISTRATION AND INCREASING REVENUE
COLLECTION BY GRANTING AN AMNESTY ON ALL UNPAID INTERNAL REVENUE
‘TAXES IMPOSED BY THE NATIONAL GOVERNMENT FOR TAXABLE YEAR 2015
AND PRIOR YEARS

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Coverage. — There is hereby authorized and granted a tax amnesty which
shall cover all national internal revenue taxes for the taxable year 2015 and prior years,
with or without assessments duly issued therefore, that have remained unpaid as of
December 31, 2015: Provided, however, That the amnesty hereby authorized and
granted shall not cover persons or cases enumerated under Section 8 hereof.

SEC. 2. Availment of the Amnesty. — Any person, natural or juridical, who wishes to
avail himself of the tax amnesty authorized and granted under this Act shall file with
the Bureau of Internal Revenue (BIR) a notice and Tax Amnesty Return accompanied by
a Statement of Assets, Liabilities and Networth (SALN) as of December 31, 2015, in such
form as may be prescribed in the implementing rules and regulations (IRR) of this Act,
and pay the applicable amnesty tax within six months from the effectivity of the IRR.

SEC. 3. What to Declare in the SALN.
assets, liabiliti

— The SALN shall contain a declaration of the
es and networth as of December 31, 2015, as follows:

1, Assets within or without the Philippines, whether real or personal, tangible or
intangible, whether or not used in trade or business: Provided, That property
other than money shall be valued at the cost at which the property was acquired:
Provided, further, That foreign currency assets and/or securities shall be valued
at the rate of exchange prevailing as of the date of the SALN;



2. All existing liabilities which are legitimate and enforceable, secured or
unsecured, whether or not incurred in trade or business; and

3. The networth of the taxpayer, which shall be the difference between the total
assets and total liabilities.

SEC. 4. Presumption of Correctness of the SALN. — The SALN as of December 31,
2015 shall be considered as true and correct except where the amount of declared
hetworth is understated to the extent of thirty percent (30%) or more as may be
established in proceedings initiated by, or at the instance of, parties other than the BIR
of its agents: Provided, That such proceedings must be initiated within one year
following the date of the filing of the tax amnesty return and the SALN. Findings of or
admission in congressional hearings, other administrative agencies of government,
and/or courts shall be admissible to prove a thirty percent (30%) under-declaration,

SEC. 5. Grant of Tax Amnesty. — Except for the persons or cases covered in Section
8 hereof, any person, whether natural or juridical, may avail himself of the benefits of
tax amnesty under this Act, and pay the amnesty tax due thereon, based on his
networth as of December 31, 2015 as declared in the SALN as of said period, in
accordance with the following schedule of amnesty tax rates and minimum amnesty tax
payments required:

(a) Individuals (whether resident or nonresident citizens, 5% or —_P50,000,
including resident or nonresident aliens), Trusts and whichever is higher
Estates

(b) Corporations
(1) With subscribed capital of above P50 Million 5% or 500,000
whichever is higher
(2) With subscribed capital of above P20 Million up 5% or —_P250,000,

to PSO Million whichever is higher
(3) With subscribed capital of PS Million to P20 5% or _ P100,000,
Million whichever is higher
(4) With subscribed capital of 5% or —_-P25,000,

whichever is higher
below P5 Million

{c) Other juridical entities, including, but not ited to, 5% or P50,000,
cooperatives and foundations, that have become taxable
as of December 31, 2015 whichever is higher.

(d) Taxpayers who filed their balance sheet/SALN, together with their income tax
returns for 2015, and who desire to avail of the tax amnesty under this Act shall
amend such previously filed statements by including still undeclared assets
and /or liabilities and pay an amnesty tax equal to five percent (5%) based on the
resulting increase in networth: Provided, That such taxpayers shall likewise be
categorized in accordance with, and subjected to the minimum amounts of
amnesty tax prescribed under the provisions of this Section.



SEC. 6, Immunities and Privileges. Those who availed themselves of the tax
amnesty under Section 5 hereof, and have fully complied with all its conditions shall be
entitled to the following immunities and privileges:

1. The taxpayer shall be immune from the payment of taxes, as well as addition
thereto, and the appurtenant civil, criminal or administrative penalties under the
National Internal Revenue Code of 1997, as amended, arising from the failure to
pay any and alll internal revenue taxes for taxable year 2015 and prior years

2. The taxpayer's Tax Amnesty Returns and the SALN as of December 31, 2015
shall not be admissible as evidence in all proceedings that pertain to taxable year
2015 and prior years, insofar as such proceedings relate to internal revenue
taxes, before judicial, quasi-judicial or administrative bodies in which he is a
defendant or respondent, and except for the purpose of ascertaining the networth
beginning January 1, 2016, the same shall not be examined, inquired or looked
into by any person or government office. However, the taxpayer may use this as
a defense, whenever appropriate, in cases brought against him.

3. The books of accounts and other records of the taxpayer for the years covered
by the tax amnesty availed of shall not be examined: Provided, That the
Commissioner of Internal Revenue may authorize in writing the examination of
the said books of accounts and other records to verify the validity or correctness
of a claim for any tax refund, tax credit (other than refund or credit of taxes
withheld on wages), tax incentives, and/or exemptions under existing laws.

All these immunities and privileges shall not apply where the person failed to file a SALN
and the Tax Amnesty Return, or where the amount of networth as of December 31, 2015,
is proven to be understated to the extent of thirty percent (30%) or more, in accordance
with the provisions of Section 3 hereof.

SEC. 7. When and Where to File and Pay. — The filing of the Tax Amnesty Return
and the payment of the amnesty tax for those availing themselves of the tax amnesty
shall be made within six months starting from the effectivity of the IRR. It shall be filed
at the office of the Revenue District Officer which has jurisdiction over the legal
residence or principal place of business of the filer. The Revenue District Officer shall
issue an acceptance of payment form authorizing an authorized agent bank, or in the
absence thereof, the collection agent or municipal treasurer concerned, to accept the
amnesty tax payment

SEC. 8. Exceptions. — The tax amnesty provided in Section 5 hereof shall not extend
to the following persons or cases existing as of the effectivity of this Act:

1, Withholding agents with respects to their withholding tax liabilities;

2. Those with pending cases falling under the jurisdiction of the Presidential
Commission on Good Government;

3. Those with pending cases involving unexplained or unlawfully acquired wealth
or under the Anti-Graft and Corrupt Practices Act;


4. Those with pending cases filed in court involving violation of the Anti-Money
Laundering Law;

5. Those with pending criminal cases filed in court for tax evasion and other
criminal offenses under Chapter II of Title X of the National Internal Revenue
Code of 1997, as amended, and the felonies of frauds, illegal exactions and
transactions, and malversation of public funds and property under Chapters Il
and IV of Title VII of the Revised Penal Code; and

6. Tax cases subject of final and executory judgment by the courts.

SEC. 9, Unlawful Divulgence of Tax Amnesty Return and Statement of Assets,
Liabilities and Networth. — Except as otherwise provided herein and in Section 14
hereof, it shall be unlawful for any person having knowledge of the Tax Amnesty Return
and SALN filed pursuant hereto, to disclose any information relative to such declaration
and statement, and any violation hereof shall subject the offender to the penalties under
Section 10 (c) of this Act: Provided, however, That the Commissioner of Internal Revenue
may disclose the content of the Tax Amnesty Return and the SALN upon the request of
Congress pursuant to and in accordance with Section 20(A) or Section 290 of the
National Internal Revenue Code of 1997, as amended.

SEC. 10. Penalties. —

1. Any person who, having filed a statement or Tax Amnesty Return under this
Act, willfully understates his networth to the extent of thirty percent (30%) or
more shall, upon conviction, be subject to the penalties of perjury under the
Revised Penal Code.

2. The willful failure to declare any property in the statement and/or in the Tax
Amnesty Return shall be deemed in prima facie evidence of fraud and shall
constitute a ground upon which attachment of such property may be issued in
favor of the BIR to answer for the satisfaction of any judgment that may be
acquired against the declarant.

In addition to the penalties provided in paragraphs (a) and (b) above, immediate
tax fraud investigation shall be conducted to collect all taxes due, including
increments, and to criminally prosecute those found to have willfully evaded
lawful taxes due.

In the case of associations, partnerships, or corporations, the penalty shall be
imposed on the partner, president, general manager, branch manager, treasurer,
officer-in-charge and employees responsible for the violation.

3. Any person who makes an unlawful divulgence of the Tax Amnesty Return or
the SALN shall be penalized by a fine of not less than Fifly thousand pesos
(P50,000.00) and imprisonment of not less than six years but not more than ten
(10) years.


If the offender is an officer or employee of the BIR or any government entity, he/ she
shall likewise suffer an additional penalty of perpetual disqualification to hold public
office to vote and to participate in any public election.

SEC, 11. Moratorium on the Grant of Tax Amnesty. — In order to encourage and
improve tax compliance by taxpayers, it is hereby declared the policy of this Congress
that the grant of tax amnesty, in whatever manner and form, shall not henceforth be
allowed: Provided, That this moratorium shall likewise apply to any administrative tax
amnesty by the BIR.

SEC. 12. Integrated Information Management Program.— For purposes of
enhancing revenue administration, revenue collection and policy formulation, the
Department of Finance, in coordination with the BIR, Department of ‘Trade and
Industry, Securities and Exchange Commission, and other concerned agencies shall
institute an Integrated Information Management Program for the effective use of
information declared or obtainable from the Tax Amnesty Returns and the SALNs
required to the filed under this Act.

SEC. 13. Disposition of Proceeds from the Tax Amnesty. — An amount equivalent
to Four hundred million pesos (P400,000,000.00) of the collection from the tax amnesty
herein granted shall accrue to the Department of Finance and shall be used exclusively
for purposes of instituting an Integrated Management Information System as mandated
under Section 12 of this Act.

SEC. 14. Publication of List of Taxpayers and Filers.— Following the
implementation of the tax amnesty authorized and granted under this Act, the
provisions of Sections 71 and 270 of the National Internal Revenue Code of 1997, as
amended, and Section 26 of Republic Act No. 6388, to the contrary notwithstanding,
the Commissioner of Internal Revenue shall, on or before May 31 following the close of
each calendar year, prepare a list containing the names of all taxpayers, their gross
income and amount of income taxes paid for the immediately preceding taxable ye
and allow the publication of the same in at least two newspapers of general circulation
or the Bureau of Internal Revenue website.

SEC. 15. Implementing Rules and Regulations. — The Secretary of Finance shall, in
coordination with the Commissioner of Internal Revenue, promulgate and publish the
necessary rules and regulations within sixty (60) days from the effectivity of this Act.

SEC. 16, Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in any two newspapers of general circulation, whichever comes
earlier.

Approved,