Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City
SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILLNO.__72238

Introduced by REPRESENTATIVES ERIC D. SINGSON AND DANILO E. SUAREZ

AN ACT
GRANTING INCENTIVES TO QUALIFIED TAXPAYERS BY
EXEMPTING THEM FROM AUDIT AND INVESTIGATION IF
THEY PAY AT LEAST TWENTY PERCENT MORE OF INCOME
TAX, VAT, EXCISE AND PERCENTAGE TAXES PAID DURING
THE PREVIOUS TAXABLE YEAR

EXPLANATORY NOTE

This measure seeks to exempt qualified taxpayers from audit and
investigation of income tax, VAT, excise and percentage tax returns by paying
at least twenty percent (20%) more of the income, VAT, excise and percentage
taxes paid, as the case may be, during the previous taxable year. This way, the
taxpayer has an incentive to voluntarily declare and pay a higher tax,
enhancing incidence/rate of tax payment to the government. The objective is
to increase tax collection with the least administrative cost and reduce fiscal
leakages by encouraging voluntary tax compliance without compromising the
revenue collection generated from audit/ investigation and enforcement.

This would complement the Administration's measures and the recently
passed Tax Reform for Acceleration and Inclusion (TRAIN) law and the
substitute bill on tax amnesty being considered in the House Committee on
Ways and Means that we have authored together. With all these laws and

Page 1 of 4


measures being considered, the funds generated would sustain and support
President Rodrigo R. Duterte’s massive “BUILD BUILD BUILD”
infrastructure program which aims to spur economic growth.

Thus, the immediate approval of this bill is earnestly sought.

Cte.

iC D. SINGSON DANILO E. SUAREZ
2™ District, Hocos Sur 3™ District, Quezon

Page 2 of 4


©

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7223

Introduced by REPRESENTATIVES ERIC D. SINGSON AND DANILO E. SUAREZ

AN ACT
GRANTING INCENTIVES TO QUALIFIED TAXPAYERS BY
EXEMPTING THEM FROM AUDIT AND INVESTIGATION IF THEY
PAY AT LEAST TWENTY PERCENT MORE OF INCOME TAX, VAT,
EXCISE AND PERCENTAGE TAXES PAID DURING THE PREVIOUS
TAXABLE YEAR

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

SECTION 1. Coverage. - An individual or corporate taxpayer may avail
of the incentive of exemption from audit and investigation by the Bureau of
Internal Revenue (BIR) for the current taxable year by paying at least twenty
percent (20%) more of the income, VAT, excise and percentage taxes paid, as
the case may be, during the previous taxable year:

Provided, That continued availment of this incentive shall be subject to
the condition that said individual or corporate taxpayer shall not fail to pay
for a taxable year at least twenty percent (20%) more of the income, VAT,
excise tax and percentage taxes paid, as the case may be, for the immediately
preceding taxable year.

SEC. 2. Exemptions. - The incentives provided in this Act shall not
apply to taxpayers or cases existing as of the effectivity of this Act:

a. Withholding agents with respect to their withholding tax
liabilities;

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

c. 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 (NIRC) of 1997, as
amended, and the felonies of frauds, illegal exactions and

Page 3 of 4


transactions, and malversation of public funds and property
under Chapters III and IV of Title VII of the Revised Penal
Code;

d. Those with pending cases involving unexplained or
unlawfully acquired wealth or under the Anti-Graft and
Corrupt Practices Act and Republic No. 7078, otherwise
known as “An Act Defining and Penalizing the Crime of
Plunder”;

e. Those with pending cases filed in court involving violation of
the Anti-Money Laundering Act”; and

f. Tax cases subject of final and executor judgement by the
courts.

SEC. 3. Penalty Provision. - Any taxpayer who violates the provisions
of this law shall be subjected to immediate investigation, in addition to the
imposition of penalties pursuant to the NIRC of 1997, as amended, and other
applicable laws.

SEC. 4. Implementing Rules and Regulations. - The Bureau shall
promulgate and publish rules and regulations for the proper implementation
of this Act within sixty (60) days from its approval.

SEC. 5. Separability Clause. - If, for any reason, any section or
provision of this Act is declared unconstitutional or invalid, the other sections
or provisions which are not affected shall continue to be in full force and
effect.

SEC. 6. Repealing Clause. - All other laws, decrees, executive orders,
proclamations, rules and regulations, or parts thereof, inconsistent with the
provisions of this Act are also hereby amended or repealed accordingly.

SEC. 7. Effectivity.- This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in a newspaper of general
circulation.

Approved,

Page 4 of 4