T’FIIRTEEMTW CONGRESS OF TEE j 
REPUBLIC or? THE: PKILIPPINES) 
FIRST REGUIAR SEISBION 
1 
SENATE 1y21 
s. B . No. 
.--L 
Introduced by SENATOR ALFRED0 S. LIM 
.--.-.__I.____ 
EXPLANATORY NOTE 
AN ACT 
REQUIRING ALL PUBLIC 
O F F I C E R S  
TO 
SUBMIT 
THEIR 
RESPECTIVE 
INCOME 
TAX 
RETURNS 
PILED 
WIT2 THE 
BUIiEAU OF INTI<XTWL REVENUE ZOR THE LAST TEN (IO) 
YEARS AND FOR OTHER PURPOSES. 
Businessmen, p o l i t i c i a n s ,  laymen and clhiirch l e a d e r s ,  
including the downcast blame the decadence, r e t r o g r e s s i o n  
and fai1.i~-e in our s0ciet.y t o  corruption. Corruption i s  t h e  
cancer yet t h e  steady buddy of public o f f i c e r s  whose creed 
i s  t o  enrich himself a,t t h e  expense of public s e r v i c e  and 
money. 
the best badge of a t h r i v i n g  p u t r i d  a c t i v i t y  is t h o  
unexplained richness amassed by a corrupt p u b l i c  s e r v a n t .  
We have nany laws a g a i n s t  corrupt.ion, yet,, lnef f e c t i v e  
because t h e  d u t y  of d h c o v e r i n g  t h e  e r r a n t  puhl.i.c o f f i c i a l  ’ s 
corrupt a c t i v i t i e s  comes from t h e  public or the gavexxment 
which f i n d  d i f f i c u l t y  i.n uncavering his i l l e g a l l y  obtained 
wealth. 
T l i i s  time, we w i l l  catch t h e  f i s h  irorn its own mouth 
because t.he public officer himself must r e v e a l  his own p r i o r  
d e c l a r a t i o n  f o r  years &out 
h i s  wealth from which we will 
have b a s i s  t o  compare his ciirront wealth or richness. 
Remotely, 
the 
hill a l s o  sGeks 
t o  provide 
revenue 
because 
it is 
foreseen 
that 
t h e  
EJIR 
might discover 
undeclarsd inconie or undervalued p r o p e r t i e s  . 


THIRTEENTH CONGRESS OF THE 
) 
RRPUBLIC OF THE PHILIPPINES) 
FIRST REGULAR SESSION 
) 
SENATE 
S.B. No. - 1721 
Introduced by SENATOR ALFRED0 S. L I M  
.. .... . .. . . . -. . - 
AN ACT 
REQUIRING 
ALL 
PUBLIC OFFICERS 
TO 
SUEMIT 
THEIR 
RESPECTIVE 
INCOME 
TAX 
RETURNS 
FILED 
WITH 
THE 
BUREAU OF INTERNAL REVENUE FOR THE LAST TEN (lo) 
YEARS AND FOR OTHER PURPOSES, 
B e  
it 
enacted 
by 
t h e  
Senate 
and 
t h e  
House 
of 
Representatives of t h e  Philippines i n  Congress assembled: 
SECTION 1. This A c t  shall be known as t h e  "PUBLIC 
OFFICERS' WEALTH REVELATION ACT OF 2004". 
SECTION 2 .  Any provision of law, r u l e s  and r e g u l a t i o n s  
t o  t h e  contrary notwithstanding, a l l  p u b l i c  o f f i c e r s  s h a l l  
submit t o  t h e  Bead of t h e i r  Department a reproduced/machine 
copy i n  t h r e e  ( * 3 )  sets duly c e r t i f i e d  and sj.gned by them of 
t h e  Income Tax Returns ( I T R s )  they had f i l e d  w i t h  tho Eureau 
of internal Revenue €or the last t e n  ( 1 0 )  years p r i o r  t o  
t h e  e f f e c t i v i t y  of t h i s  A c t .  
SECTION 
3 .  
Should t h e  public o f f i c e r  be unable t.o 
submit 
copies 
of 
t h e  
I T R s ,  
he 
s h a l l  execute 
a 
sworn 
statement i n  t h r e e  ( 3 )  copies t o  t h a t  e f f e c t  and i d e n t i f y  
t h e  p a r t i c u l a r  B I R  regional office or o f f i c e s  where t h e  
unavailable T T R s  were f il.ed and submit t h e  same t o  t.he 
Department Head. 
SECTION 4. Within ' t h i r t y  ( 3 0 )  days upon r e c e i p t  o f  t h e  
I T R s  
o r  
tho 
sworn 
statement 
of 
non-availability. 
t h e  
Departmelit Head s h a l l  transmit one copy t o  t h e  Bureau of 
I n t e r n a l  Revenue. 
SECTION 
5. 
The 
B I R  
s h a l l  
examine, 
eva.lixate 
and 
ascertain t h e  t r u t h f u l n e s s  of 
t h e  I T R s  as submitted and 
i s s u e  a c e r t i f i c a t i o n  t o  t h e  Department Mead not l a t e r  than 
s i x t y  ( 6 0 )  days from r e c e i p t  thereof on whether o r  not t h e  
reproduced/machine copy as transmitted i s  genuine and, i n  
case 
of 
unavail.a.ble 
LTRs as 
meiitianed 
in. 
t h e  
sworn 
statement, 
t h e  
R I R  
s h a l l  a s c e r t a i n  
from 
i t s  f i l e  t h e  
a v a i . l a b i l i t y  of t h e  same 
and i f  s o  a v a i l a b l e ,  t o  transmit 
j.t t o  t h e  Department Head. The Department Head o f  %he p u b l i c  
o f f i c e r  
shall. 
be 
t h e  
one 
r e f e r r e d  
t o  
under 
t h e  
Administrative Code of 1 9 8 7 .  


._ Page 2 - 
SECTION 6 .  
When it appears from t h e  c e r t i f i e d  copies 
of t h e  I T B s  or those furnished by t h e  B I R  t h a t  t h e  a s s e t s  gr 
income a s  r e f l e c t e d  j.n t.he l a t e s t  ITR i s  g r e a t e r  by more 
t h a n  1.000'8 percent on a.ny of t h e  ITRs for the l a s t  f i v e  ( 5 )  
years preceding it, the Eepartment Bead sha1.l r e q u i r e  t h e  
public o f f i c e r  cGncerned t o  explain i n  w r i t i n g  within t h i r t y  
( 3 0 )  days how he amassed t.he income or present wealth. Upon 
submission t h e r e o f ,  the Department 
Head s h a l l  transmit a l l  
t h o  c e r t i f i e d  I T R s  and t h e  explanation t o  t h e  Office of t h e  
Ombudsman who s h a l l ,  not. l a t e r  than six ( 6 )  months from 
r e c e i p t  
of 
t.he 
records, 
submit 
i t s  evaluation t o  t h e  
Department. Head on whet-her or not t h e r e  i s  prima f a c i e  
evidence t h a t  t h e  public o f f i c e r  is l i a b l e  f o r  prosecuti.on 
f o r  t h e  unexpl.ained wealth. 
I f  t h e  
Ombudsman 
f i n d s  
such viol.ati,oi~, it s h a l l  formally charge t h e  public, o f f  iter 
and 
proceed 
t o  coiidu.ct 
a 
preliminary 
i n v e s t i g a t i o n  
iii 
accordance 
with 
law; 
o-therwise, 
it 
shall 
i s s u e  
a 
c e r t i f i c a t i o n  of 
non-violation 
of 
t h e  law on unexplained 
wealth. Subject t o  the law on p r e s c r i p t i o n  provicled t h e r e  i s  
no fraud comm:it.,ted, i f  t h e  DIR determines t h a t  t h e r e  was a 
vio1.a-tion o f  t a x  I.aws oc t h a t  t h e  taxes due based on t h e  
income as r e f l e c t e d  in t h e  I T R s  were not paid i n  f u l l ,  it. 
s h a l l  make an independent assessment to t h e  public o f f i c e r  
cancerned f o r  t h e  paymarit of delinquency t , a x .  
SlZCTION 7 .  The Ombudsman is hereby tasked t o  c a r r y  our. 
and 
iiiip1emen.t 
the 
provisions 
of 
t h i s  
A c t  
and 
s h a l l  
~ ~ r o m u l g a t e  
r u l e s  and regulations not Later than sixty ( 6 0 )  
da.ys from efEectiviLy hereof, The Ombudsman shall. submit a 
repor't once a year t o  the Blue Ribbon Committees of both 
chambers o f  Congress on t h e  r e s u l t  o f  it"s operations and t h e  
implement.ation o f  t h i s  A c t .  
vi.ol.ations of % h i s  A c t :  
SECTION 8 .  The 
following shiill 
c o n s t i t u t e  criminal 
( a )  Fai1.ure or refusal: t o  submit any of t h e  recJui.~:ed 
ITRs within t h e  period required herei.n; 
( b  ) 
Furnishing 
f a l s e  or 
frauclulent 
I T R s  
t o  
the 
De1)artment Head o r  the Bureau of I n t e r n a l  Revenue; 
( c j  Pail-ure or r e f u s a l  t o  submit an explanation on ,the 
unusually h i g h  income; 
( d )  Failure of the BIR, the Department, Head o r  of t h e  
Ombudsman t.o act within t h e  period prescribed o r  fixed 
herein or i.ts ext,ensj.on; provid.ed, however, t h a t  extensi.on 
not esceedi.iig t-he o r i g i n a l  period prescribed may be done by 
not i 
f y i. iig t h e  0 f f i c e  conc ex ne d . 
SECTION '3, 
Acts Constit.ut:ing Viol.E!tiOns of 
this Act 
defi.ned i.inder Sect.ion 7 s h a l l  be puiii.shahle by imprisonment 
:froin si.x (6) years t o  ten (10) years. 
SECTION 10. T h i s  A c t  s h a l l  take e f f e c t  t h i r t y  ( 3 0 )  days 
a f t e r  pub1.ici;ti.oii i.n the Off i.cj.31 Gazette. 
APPROVED