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THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Third Regular Session 
) 
S E N  A T E  
'. 4 '1 :37 
Y 
S.B. N 0 . 2 4 7 9  
(In substitution ofHB No. 2933, in consideration of SB No. 1325 and SB No. 2028) 
S E N  A T E  
S.B. N 0 . 2 4 7 9  
(In substitution ofHB No. 2933, in consideration of SB No. 1325 and SB No. 2028) 
Prepared by the Committee with Senators Recto and Revilla, Jr. as authors thereof. 
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 2005 
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 2005 and prior 
years, with or without assessments duly issued therefor, that have remained unpaid as of 
December 31, 2005: 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 3 1, 2005, in such 
form as may be prescribed in the Iniplementing Rules and Regulations (IRR) of this Act 
and pay the applicable amnesty tax within four (4) months from the effectivity of the 
IRR. 
SEC. 3. What to Declare in the SALN. - The SALN shall contain a declaration of 
the assets, liabilities and nemorth as of December 31,2005, as follows: 
(a) Assets within or without the Philippines, whether real or personal, tangible or 
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intangible, whether or not used in trade or business: Provided, That property other than 


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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 SALN; 
(b) All existing liabilities which are legitimate and enforceable, secured or 
unsecured, whether or not incurred in trade or business; and 
(c) The networth of the taxpayer, which shall he the difference between the total 
assets and total liabilities. 
SEC. 4. Presumption of Correctness of SALN. - The SALN as of December 31, 
2005 shall be considered as tnie and correct except where the amount of declared networth 
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 or its agents: 
Provided, That such proceedings must be initiated within one (1) 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, andor courts shall 
be admissible to prove a thirty percent (30%) under-declaration. 
SEC. 5. Grant of Tax Amne3ty. - 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 31,2005 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 
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(a) Individuals (whether resident or 
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non-resident citizens, including 
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(h) Corporations 
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(1) with subscribed 
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resident aliens), Trusts and Estates - - 
capital of above P50 million- - - - . 
.--- 
10% or P50,OOO 
whichever is higher 
- - _ -  10% or P500,OOO 
whichever is higher 
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(2) with subscribed 
capital of above P20 million up 
to P50 million- - - - - - - - - - - -. 
(3) with subscribed capital 
of PS million to P20 million - -- - 
(4) with subscribed capital 
of below P5 million - - - - - - - - 
- -  
- - 10% or P250,000, 
whichever is higher 
- - 10% orP100,000, 
whichever is higher 
- 10% orP25,OOO 
whichever i s  higher. 
(c)other juridical entities, 
including but not limited to 
cooperatives and foundations, 
that have become taxable as 
ofDecember31,2005 - - - - - - - - - - - - - 10% or P50,OOO 
whichever is higher. 
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: 
(a) The taxpayer shall be inimune from the payment of taxes, as well as additions 
thereto and 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 year 2005 and prior years; 
(b) The taxpayer’s Tax Amnesty Return and SALN as of December 31,2005 shall 
not be admissible as evidence in a11 proceedings that pertain to taxable year 2005 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 1,2006, the same shall not be 
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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 a claim for any tax refund, tax 
credit (other than refund or credit of taxes withheld on wages), tax incentives, andor 
exemptions under existing laws. 
All these immunities and privileges shall not apply where the person failed to file a 
SALN and Tax Amnesty Return, or where the amount of networth as of December 31, 
2005 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 four (4) 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: 
(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 cases involving unexplained or unlawfully 
acquired wealth or under the Anti-Graft and Corrupt Practices Act; 
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(d) 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 I1 of Title X of the National Internal Revenue Code of 1997, as 
amended, and the felonies of fiauds, illegal exactions and transactions, and 
malversation of public ftmds and property under Chapter III and W of Title VI1 of 
The Revised Penal Code; and 
(0 Tax cases subject of final and executory judgment by the courts. 
SEC. 9. Unlawful Divulgence of Tax Amnesfy 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 
12(C) of this Act: Provided, however, That the Commissioner of Internal Revenue may 
disclose the content of the Tax Amnesty Return and 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. - (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. 
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. 
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In the case of associations, partnerships or corporations, the penalty shall he 
imposed on the partner, president, general manager, branch manager, treasurer, officer-in- 
charge and employees responsible for the violation. 
(c) Any person who makes an unlawful divulgence of Tax Amnesty Return or 
SALN shall he penalized by a fine of not less than Fifty thousand pesos (P50,OOO) and 
imprisonment of not less than six (6) years but not more than ten (IO) 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 officc, 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, further, That this moratorium shall likewise apply to any administrative tax 
amnesty by the BIR. 
SEC. 12. 
Information Management Program. - For purposes of enhancing 
revenue administration, revenue collection and policy formulation, the Department of 
Finance, in coordination with the BR, Land Registration Authority, Department of Trade 
and Industry, Securities and Exchange Commission, Land Transportation Office, and other 
concerned agencies shall institute an Information Management Program for the effective 
use of information declared or obtainable from the Tax Amnesty Returns and SALNs 
required to be filed under this Act. 
SEC. 13. Disposition of Proceeds from the Tax Amneszy, - An amount equivalent 
to Four hundred million pesos (P400,000,000) of the collection from the tax amnesty 
herein granted shall accrue to the Depaitment of Finance and shall be used exclusively for 
purposes of instituting a Management Information System as mandated under Section 12 
of this Act. 
SEC. 14. Publication of List of Tanpayers 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 
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Section 26 of Republic Act No. 6388, to the contrary notwithstanding, the Commissioner 
of Internal Revenue shall, on or before May 3 1 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 immediatelypreceding taxable year, and allow the publication of 
the same in at least two (2) newspapers of general circulation or the Bureau of Internal 
Revenue website. 
SEC. 15. ImpZementing 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. Effectz'vity - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in any two (2) newspapers of general circulation, 
whichever comes earlier. 
Approved,