Republic of the Philippines
House of Representatives

Quezon City

Eighteenth Congress
First Regular Session

House Bill No. 191

Introduced by Representative:
Estrellita B. Suansing and Horacio P. Suansing, Jr.

EXPLANATORY NOTE

On February 14, 2019, President Rodrigo R. Duterte signed into law
Republic Act No. 11213, entitled “AN ACT ENHANCING REVENUE
ADMINISTRATION AND COLLECTION BY GRANTING AN AMNESTY ON ALL
UNPAID INTERNAL REVENUE TAXES IMPOSED BY THE NATIONAL
GOVERNMENT FOR TAXABLE YEAR 2017 AND PRIOR YEARS WITH
RESPECT TO ESTATE TAX, OTHER INTERNAL REVENUE TAXES, AND TAX
ON DELINQUENCIES” or the “Tax Amnesty Act”, which aims to further the
government's effort to improve tax administration and compliance, and give
taxpayers an opportunity to settle outstanding tax liabilities and start anew.

The abovementioned laudable aims, notwithstanding, the provisions on
general tax amnesty under Title III of RA No. 11213 were vetoed by the
President on grounds of unconditional latitude granted therein. Hence, the
President requested Congress to pass a version that includes provisions on
the lifting of bank secrecy for fraud cases and exchange of information to
realize fully the noble objectives of the proposed general tax amnesty.

This bill is hereby filed to heed the President’s noble call. It contains the
safeguards sought for a more balanced general tax amnesty. Given the
refinements introduced, the much-needed benefits of general amnesty shall
finally be attained both by the government and our people.

Accordingly, passage of the measure is earnestly sought.

REP. (TA B. SUANSING REP. nonacioFAisie, JR.
1* District, Nueva Ecija 2nd District, Sultan Kudarat


Republic of the Philippines
House of Representatives
Quezon City

Eighteenth Congress
First Regular Session

191
House Bill No.

Introduced by Representatives
Estrellita B. Suansing and Horacio P. Suansing, Jr.

AN ACT
ENHANCING REVENUE ADMINISTRATION AND COLLECTION BY
GRANTING AMNESTY ON ALL UNPAID IMPOSITIONS LEVIED BY
GOVERNMENT FOR TAXABLE YEAR 2017 AND PRIOR YEARS, AND FOR
OTHER PURPOSES

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

SECTION 1. Short Title. — This Act shall be known as the “General Tax
Amnesty Act.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the state
to protect and enhance revenue administration and collection, and make the
country’s tax system more equitable, by simplifying the tax compliance
requirements. Towards this end, the State shall broaden the tax base by
offering a general tax amnesty for all unpaid internal revenue taxes that will
help cleanse, organize, and improve the Bureau of Internal Revenue’s
database.

SEC. 3. Definition of Terms. - As used in this Act:

(a) Basic tax assessed refers to the latest amount of tax assessment issued
by the Bureau of Internal Revenue against the taxpayer, exclusive of
interest, penalties, and surcharges.

(b) Statement of Assets, Liabilities, and Networth refers to a declaration of
the assets, liabilities, and networth as of December 31, 2017, 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
Statement of Assets, Liabilities, and Networth;

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.

(©) Total Asset refers to the amount of the aggregate assets whether within
or without the Philippines, real or personal, tangible or intangible, or
ordinary or capital.

SEC. 4. Coverage. - There is hereby authorized and granted a tax amnesty,
hereinafter called General Tax Amnesty, which shall cover all national internal
revenue taxes such as, but not limited to, income tax, withholding tax, capital
gains tax, donor’s tax, value-added tax, percentage taxes, excise tax, and
documentary stamp tax collected by the Bureau of Internal Revenue,
including value-added tax and excise taxes collected by the Bureau of
Customs for taxable year 2017 and prior years, with or without assessments
duly issued therefor, that have remained unpaid: Provided, however, That the
General Tax Amnesty hereby authorized and granted shall not cover persons
or cases enumerated under Section 10 of this Act.

SEC. 5. Entitlement Under the General Tax Amnesty. - Except for
instances covered under Section 10 of this Act, any person, whether natural
or juridical, may enjoy the immunities and privileges of the General Tax
Amnesty by paying, at the taxpayer’s option, an amnesty tax at:

i, _ the rate of two percent (2%) based on the taxpayer's total assets as of
December 31, 2017, as declared in the Statement of Total Assets; or

ii, based on the taxpayer's total networth as of December 31, 2017, as
declared in the Statement of Assets, Liabilities, and Networth filed
pursuant to Section 6 of this Act, and in accordance with the following
schedule of amnesty tax rates and minimum amnesty tax payments
required:

a, Individual (whether resident or nonresident citizens, including
resident or nonresident aliens), Trusts, and Estates - 5% or
P75,000, whichever is higher.

b. Corporations:

fy With subscribed capital of above P50 million — 5% or
P1,000,000, whichever is higher.


2. With subscribed capital of above P20 million up to
P50 million - 5% or P500,000, whichever is higher.

3. With subscribed capital of P5 million up to P20
million - 5% or P250,000, whichever is higher.

4. With subscribed capital of below PS million- 5% or
P100,000, whichever is higher.

c. Other juridical entities, including but not limited to cooperatives
and foundations, that have become taxable as of December 31,
2017 - 5% or P75,000, whichever is higher:

Provided, that if the taxpayer opts to pay the amnesty tax based on total
networth, and the computed networth is negative, the taxpayer may still
avail of the benefit of tax amnesty under this Act by paying the
minimum amnesty tax.

SEC. 6. Availment of the General Tax Amnesty; When and Where to File
and Pay. — Any person, natural or juridical, who wishes to avail of the General
Tax Amnesty shall, within One (1) year from the effectivity of the Implementing
Rules and Regulations, file with the appropriate office of the Bureau of
Internal Revenue, which has jurisdiction over the taxpayer, a sworn General
Tax Amnesty Return accompanied by a notarized Statement of Total Assets
or notarized Statement of Assets, Liabilities, and Networth, as the case may
be, as of December 31, 2017. The payment of the amnesty tax shall be made
at the time the General Tax Amnesty Return is filed:

Provided, that the Revenue District Officer shall issue and endorse an
Acceptance Payment Form, in such form as may be prescribed in the
Implementing Rules and Regulations of this Act, authorizing the authorized
agent bank, or in the absence thereof, the revenue collection agent or
municipal treasurer concerned, to accept the amnesty tax payment:

Provided, further, That the availment of the General Tax Amnesty and the
issuance of the corresponding Acceptance Payment Form do not imply the
admission of any criminal, civil, or administrative liability on the part of the

availing taxpayer:

Provided, furthermore, that if the tax amnesty is availed based on the period
indicated hereunder, the taxpayer shall be entitled to the corresponding
reduction in the total amnesty tax due:

(a) If paid on or before the end of the third calendar month from the
effectivity of the Implementing Rules and Regulations — 20%;

(b) If paid after the end of the third calendar month until the end of


the sixth calendar month from the effectivity of the Implementing
Rules and Regulations — 15%;

(c) If paid after the end of the sixth calendar month until the end of
the ninth calendar month from the effectivity of the
Implementing Rules and Regulations - 10%.

Provided, finally, That, notwithstanding any contrary provision of Republic
‘Act No. 1405, otherwise known as the “Bank Secrecy Law”, Republic Act No.
6426, otherwise known as the “Foreign Currency Deposit Act of the
Philippines” and other general or special laws, and for purposes of validation
relative to availment of the General Tax Amnesty, the filing of a sworn General
‘Tax Amnesty Return authorizes the Commissioner of Internal Revenue for the
duration of the one (1) year period of availment of the General Tax Amnesty
to inquire into and receive information on the taxpayer’s bank deposits and
other related data held by local and foreign financial institutions, and to
exchange information with a foreign tax authority pursuant to an
international convention, agreement, or treaty to which the Philippines is a
signatory or a party thereof, duly ratified and concurred in by the Senate of
the Philippines.

SEC. 7. Contents of the Statement of Total Assets and Statement of
Assets, Liabilities, and Networth. -

A. The Statement of Total Assets shall contain a declaration of the total
assets as of December 31, 2017, as follows:

1. Assets within or without the Philippines, whether real or
personal, tangible or intangible, whether or not used in trade or
business:

a. Real properties shall be accompanied by a description of
their classification, exact location, and valued at
acquisition cost, if acquired by purchase, or the zonal
valuation or fair market value as shown in the schedule of
values of the provincial, city, or municipal assessors at the
time of inheritance or donation, whichever is higher, if
acquired through inheritance or donation;

b. Personal properties other than money, shall be
accompanied by a specific description of the kind and
number of assets (e.g. automobiles, shares of stock, etc.) or
other investments, indicating the acquisition cost less the
accumulated depreciation or amortization, or the
corresponding book value for shares of stock, in proper
cases, if acquired by purchase, or the fair market price or
value at the date of the Statement of Total Assets, if


acquired through inheritance or donation;

c. Assets denominated in foreign currency shall be converted
into the corresponding Philippine currency equivalent, at
the rate of exchange prevailing as of the date of the
Statement of Total Assets; and

d. Cash on hand and in bank in Peso as of the date of the
Statement of Total Assets, as well as cash on hand and in
bank in foreign currency, converted to Philippine peso at
the rate of exchange prevailing as of the date of the
Statement of Total Assets.

B. Statement of Assets, Liabilities, and Networth shall contain a true and
complete declaration of assets, liabilities, and networth of the taxpayer
as of December 31, 2017, as follows:

1. Assets within or without the Philippines, whether real or
personal, tangible or intangible, whether or not used in trade or
business:

a. Real properties shall be accompanied by a description of
their classification, exact location, and valued at
acquisition cost, if acquired by purchase, or the zonal
valuation or fair market value as shown in the schedule of
the provincial, city, or municipal assessors, at the time of
inheritance or donation, whichever is higher, if acquired
through inheritance or donation;

b. Personal properties other than money, shall be
accompanied by a specific description of the kind and
number of assets ( e.g. automobiles, shares of stocks, etc.)
or other instruments, indicating the acquisition cost less
the accumulated depreciation or amortization, or the
corresponding book value for shares of stock, in proper
cases, if acquired by purchase, or the fair market price or
value at the date of the Statement of Assets, Liabilities, and
Networth, if acquired through inheritance or donation;

c. Assets denominated in foreign currency shall be converted
into the corresponding Philippine currency equivalent, at
the rate of exchange prevailing as of the date of the
Statement of Assets, Liabilities, and Networth; and

d. Cash on hand and in bank in Peso as of the date of the
Statement of Assets, Liabilities, and Networth, as well as
cash on hand and in bank in foreign currency, converted
to Philippine Peso at the rate of exchange prevailing as of
the date of the Statement of Assets, Liabilities, and


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Networth.

2. All existing liabilities, which are legitimate and enforceable,
secured or unsecured, whether or not incurred in trade or
business, disclosing or indicating clearly the name and address
of the creditor and the amount of the corresponding liability.

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

SEC. 8. Presumption of Correctness of Statement of Total Assets, and
Statement of Assets, Liabilities, and Networth. - The Statement of Total
Assets or the Statement of Assets, Liabilities, and Networth, filed at the option
of the taxpayer, shall be conclusively presumed as true, correct, and final
upon filing thereof, and shall be deemed complete upon full payment of the
amount due.

‘The Acceptance Payment Form, and the General Tax Amnesty Return shall be
submitted to the Revenue District Office after complete payment. The
completion of these requirements shall be deemed full compliance with the
provisions of this Act. A certificate of availment of the general tax amnesty
shall be issued by the Bureau of Internal Revenue within Fifteen (15) calendar
days from submission to the Bureau of Internal Revenue of the Acceptance
Payment Form and the General Tax Amnesty Return. Otherwise, the duplicate
copies, stamped as received, of the Acceptance Payment Form, and the
General Tax Amnesty Return shall be deemed as sufficient proof of availment.

SEC. 9. Immunities and Privileges. — Those who avail of the General Tax
Amnesty and have fully complied with all the conditions set forth in this Act
and upon payment of the amnesty tax shall be entitled to the following
immunities and privileges:

(a) With respect to the years covered by the tax amnesty, the taxpayer shall
be immune from the payment of taxes, as well as additions thereto, and
from all appurtenant civil, criminal, and administrative cases and
penalties under the National Internal Revenue Code of 1997, as
amended, arising from the failure to pay any and all internal revenue
taxes for taxable year 2017 and prior years and from such other
investigations or suits insofar as they relate to the assets, liabilities,
networth, and internal revenue taxes that are subject of the tax
amnesty

(b) Any information or data contained in, derived from, or provided by a
taxpayer in the Tax Amnesty Return, Statement of Total Assets, or
Statement of Assets, Liabilities, and Networth, as the case may be, and
appurtenant documents shall be confidential in nature and shall not be
used in any investigation or prosecution before any judicial, quasi-


judicial, and administrative bodies. However, the taxpayer may use this
‘as a defense, whenever appropriate, in cases brought against the
taxpayer.

(c) The books of accounts and other records of the taxpayer for the years
covered by the tax amnesty availed of shall not be examined by the
Bureau of Internal Revenue: 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 when the taxpayer
failed to file a General Tax Amnesty Return and a Statement of Total
Assets, or Statement of Assets, Liabilities, and Networth, as the case may
be.

Upon full compliance with all the conditions set forth in this Act and
payment of the corresponding general amnesty tax, the amnesty granted
under this Act shall become final and irrevocable.

SEC. 10. Exceptions. - The General Tax Amnesty under this Act shall not
extend to the following:

(a) Withholding tax agents who withheld taxes but failed to remit the
same to the Bureau of Internal Revenue;

(b) Taxpayers with cases pending in appropriate courts involving:

1. Those that fall under the jurisdiction of the Presidential
Commission on Good Government;

2. Unexplained or unlawfully acquired wealth under Republic
Act No. 3019, otherwise known as the Anti-Graft and Corrupt
Practices Act, and Republic Act No. 7080 or an Act Defining
and Penalizing the Crime of Plunder;

3. Violation of Republic Act No. 9160, otherwise known as the
Anti-Money Laundering Act, as amended;

4. Tax evasion and other criminal offenses under Chapter II of
Title X of the National Internal Revenue Code of 1997, as
amended; and

5. Felonies of Frauds, Illegal Exactions and Transactions, and
Malversation of Public Funds and Property under Chapters III
and IV of the Revised Penal Code;


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(c) Tax cases that have become final and executory; and

(d) Delinquencies and assessments that have become final and
executory.

SEC. 11. Confidentiality and Non-use of Information and Data in the
Statement of Total Assets and Statement of Assets, Liabilities, and
Networth. - Any information or data contained in, derived from, or provided
by a taxpayer in the Tax Amnesty Return, Statement of Total Assets, or
Statement of Assets, Liabilities, and Networth, as the case may be, and
appurtenant documents shall be confidential in nature and shall not be used
in any investigation or prosecution before any judicial, quasi-judicial, or
administrative bodies.

Any Statement of Assets, Liabilities, and Networth, financial statements,
information sheets, and any such other statements or disclosures that may
have been previously submitted by the taxpayer as required by existing laws
are deemed to have been amended by the Tax Amnesty Return, and/or the
Statement of Total Assets or Statement of Assets, Liabilities, and Networth,
as the case may be, filed under this Act and may not be subject of any
investigation or prosecution or be used in any investigation or prosecution
before any judicial, quasi-judicial and administrative bodies.

SEC. 12. Unlawful Divulgence of Tax Amnesty Return and Other
Relevant Documents. - It shall be unlawful for any person having knowledge
of the Tax Amnesty Return and appurtenant documents, to disclose any
information relative thereto, and any violation hereof shall be penalized by a
fine of One Hundred Fifty Thousand Pesos (P150,000), and imprisonment of
not less than six (6) years but not more than Ten (10) years: Provided, that if
the offender is an officer or employee of the Bureau of Internal Revenue or any
government entity, the penalties under Section 270 of the National Internal
Revenue Code of 1997, as amended, shall apply: Provided, further, that the
offender shall likewise suffer an additional penalty of perpetual
disqualification to hold public office.

SEC. 13. Disposition of Proceeds from the General Tax Amnesty. - All
proceeds from the General Tax Amnesty shall be allocated to augment the
appropriations needed for the social mitigating measures and the
Government’s Build Build Build infrastructure projects, as provided under
Section 82 of Republic Act No. 10963, otherwise known as the “Tax Reform
for Acceleration and Inclusion (“TRAIN”) Act.

SEC. 14. Report to Oversight Committee. - The Commissioner shall submit
to the Oversight Committee referred to in Section 290 of the NIRC of 1997, as
amended, through the Chairpersons of the Committee on Ways and Means of


the Senate and House of Representatives, a detailed report on the
implementation of this Act within six (6) months after the one (1) year period
of availment of the General Tax Amnesty under this Act

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 ninety (90) days from
the effectivity of this Act.

The failure of the Secretary of Finance to promulgate the said rules and
regulations shall not prevent the implementation of this Act upon its
effectivity.

SEC. 16. Separability Clause. - If any provision of this Act is subsequently
declared invalid or unconstitutional, the other provisions hereof which are not
affected thereby shall remain in full force and effect.

SEC. 17. Repealing Clause. - all other laws, acts, presidential decrees, rules
and regulations or parts thereof inconsistent with the provisions of this Act
are hereby expressly repealed, amended or modified accordingly.

SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days after its

complete publication in the Official Gazette or in at least one (1) newspaper of
general circulation.

Approved,