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Republic of the Philippines i> RECEIVED
HOUSE OF REPRESENTATIVES pare
Quezon City Tie:
BY: d
SEVENTEENTH CONGRESS a Se.

First Regular Session
HOUSE BILL NO. _4133

Introduced by Representative Eric D. Singson

Lupey 9%

EXPLANATORY NOTE

In the first quarter of 2016, the Bureau of Treasury reported a 121.7 Billion budget
deficit for fiscal year 2015. This is 66% higher than that of 2014. There is a need of
increasing revenue and one way of doing this is by increasing the tax base. Republic Act
No. 9480 which gave tax amnesty coverage from the year 2005 and prior years proved
effective as it generated 5.902 billion accounting to two (2) percent of the total income
taxes collected and increased the number of taxpayers by 20,069 on 2008.

‘This bill will seck to provide tax amnesty coverage from January 1, 2006 to June
30, 2016. The intention is to “clean the slate” for delinquent taxpayers and to encourage
all taxpayers to avail of this program and register with the Bureau of Intemal Revenue
resulting to increased compliance to national tax policies and widening the tax base. The
granting of tax amnesty would also help cleanse, organize and improve BIR’s database of
erring taxpayers. It will encourage bi ss and investments in the country, and attract
overseas capital to enter the domestic economy to further boost Philippine economic
growth. Various sectors are clamoring for another tax reform to make our tax system
more equitable. However, the government should first consider granting a general tax
amnesty program as a prelude to the adoption of a comprehensive tax reform program.

The provision for immunity from civil, criminal or administrative penalties arising
from previous non—payment of correct taxes will encourage those in the informal
economy to surface. By helping legitimize these underground businesses, the government
can collect more income and other forms of taxes.

‘Therefore the approval of this measure is earnestly sought.

SINGSON



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__ 4183

Introduced by Representative Eric D. Singson

AN ACT
GRANTING TAX AMNESTY ON ALL UNPAID INTERNAL REVENUE TAX
LIABILITIES FOR TAXABLE PERIOD JANUARY 1, 2006 TO JUNE 30, 2016

Be it enacted by the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title — This act shall be known as “The Tax Amnesty Act of 2016.”

SEC. 2. Coverage. — The tax amnesty shall apply to all national internal revenue taxes for
period January I, 2006 to June 30, 2016, with or without assessment duly issued therefor,
that have remained unpaid as of June 30, 2016: Provided, however, That the amnesty
hereby authorized and granted shall not cover persons or cases enumerated under Section
5 hereof.

SEC. 3. Scope and Condition of Tax Amnesty ~ Any person, natural or juridical, who
wishes to avail of the benefits of the tax amnesty shall file in triplicate a notice and Tax
Amnesty Return accompanied by a Statement of Assets, Liabilities and Networth as of
June 2016 with the Bureau of Internal Revenue, in such form as shall be prescribed by
the Commissioner of Internal Revenue and pay the applicable amnesty tax within six
months from the effectivity of the law.

SEC. 4. Grant of Tax Amnesty — Except for the persons or cases covered in Section 5
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
June 30, 2016 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, including resident or
nonresident aliens), Trusts and Estates .. 5% or P50,000, whichever is
higher

(b) Corporations

(1) With subscribed capital of above P50 Million... 5% or P500,000,
whichever is higher

(2) With subscribed capital of above P20 Million
up to P50 Million ........ 5% or P250,000, whichever is higher


(3) With subscribed capital of P5 Million to
P20 Million ........ 5% or P100,000, whichever is higher

(4) With subscribed capital of below P5 Million. 5% or P25,000,
whichever is higher

(c) Other juridical entities, including, but not limited to, cooperatives and
foundations, that have become taxable as of June 30, 2016 ..... .. 5% or
P50,000, 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 resulting increase in networth:
Provided, That such taxpayers shall likewise be categorized in accordance with, and
subjected to the minimum amounts of amnesty prescribed under the provisions of this
Section,

SEC. 5. Exceptions — All taxpayers may avail themselves of the amnesty granted herein
except that the immunities in Section 7 shall not apply to the following cases, insofar as
the internal revenue tax liabilities involved therein are concerned

a, Withholding agents with respects 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 cases involving unexplained or unlawfully acquired wealth
or under the Anti-Graft and Corrupt Practices Act;

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

e. Those with pending criminal cases 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 III and IV of Title VII
of the Revised Penal Code; and

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

SEC. 6. When and Where to File and Pay — The notice and amnesty return, together
with the Statement of Assets, Liabilities and Networth, if applicable, shall be prepared
and filed in triplicate, and shall be filed on or before December 31, 2017 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 to an authorized agent bank, or in the absence thereof, the Collection
Agent or Municipal Treasurer concerned to accept the amnesty tax. The Commissioner of
Internal Revenue may extend the time allowed for filing the amnesty return provided that
such extension shall not be later than February 28, 2018.



SEC. 7. Immunities and Privileges — Those who avail 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:

(a) 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 all internal revenue taxes for taxable period January
2006 to June 2016.

(b) The taxpayer's Tax Amnesty Returns and the SALN as of June 30, 2016 shall
not be admissible as evidence in all proceedings that pertain to taxable period
January 2006 to June 2016, insofar as such proceeding relate to internal
revenue taxes, before ju I, quasi-judicial or administrative bodies in which
he is a defendant or respondent, and except for the purpose of ascertaining the
networth beginning July 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.

(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: 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 the 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 June 30,
2016 is proven to be understated to the extent of thirty percent (30%) or more, in
accordance with the Provisions of Section 3 hereof.

SEC. 8. Unlawful Divulgence of Amnesty Tax 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) of Section 290 of
the National Internal Revenue Code of 1997, as amended.

SEC. 9. Penalty —

a. 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.

b. The willful failure to declare any property in the statement and/or in the Tax
Amnesty Return shall be deemed a 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.


c. 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.

d. 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.

e. 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 Fifty thousand pesos
(P50,000.00) and imprisonment of not less than six (6) 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. 10. This Act shall not, in any way, mend, alter or repeal the provisions of Republic
Act No. 1405, otherwise known as “The Bank Secrecy Law.”

SEC, 11. Implementing Rules and Regulations. — The Secretary of Finance shall upon
the recommendation of the Commissioner of Internal Revenue, promulgate and publish
the necessary rules and regulations within sixty (60) days from the effectivity of this Act.
Such rules and regulations shall be strictly confined to and based on the provisions herein
stipulated.

SEC. 12, Repealing Clause ~ Ail laws, decrees, executive orders, rules and regulations
and issuances or part thereof which are inconsistent with this Act are hereby repealed or
amended accordingly.

SEC. 13. Effectivity. — This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in any two (2) newspapers of general circulation in the
Philippines, whichever comes earlier.

Approved,