Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
____ Regular Session

House Bill No. 9153

Introduced by Representative Dakila Carlo E. Cua

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

EXPLANATORY NOTE

This Bill is in response to the recent partial veto of the Tax Amnesty Program that
Congress has approved in December 2018.

Earlier this Congress, several members of this Honorable Chamber filed a number of
bills proposing a tax amnesty after recognizing its need as the country undergoes reforms in
its tax system. This Chamber also recognizes the need for a general tax amnesty in order to
improve the State's economic standing by expanding its taxpayer base, and decloging the
dockets of the Bureau of Internal Revenue and the courts of tax cases.

After countless consultations, hearings, deliberations, and discussions, both Houses of
Congress approved a Tax Amnesty Program for unpaid Estate Taxes, General National
Internal Revenue Taxes, as well as Delinquent Taxes. However, without provisions on the
lifting of the Bank Secrecy and Automatic Exchange of Information, the President vetoed the
General Tax Amnesty provisions of Congress’ previously approved Tax Amnesty Program.

Considering the need for a general tax amnesty program, and in response to the
President’s trust of lifting the bank secrecy and authorizing an automatic exchange of
information for certain cases involving tax administration, this humble representation
sincerely moves for the immediate passage of this Bill.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
__ Regular Session

House BillNo.__9153
Introduced by Representative Dakila Carlo E Gua

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. - itis hereby declared the Policy of the state to protect and
ahance revenue administration and collection, and make ihe country’s tax system more
piitable by simplifying the tax compliance requirements. Towante this end, the State shall
Froaden the tax base by offering a general tax amnesty forall Unpaid internal revenue taxes
‘hat will help cleanse, organize, and improve the Bureau of Interne; Revenue’s database.

SEC. 3. Definition of Terms. — As used in this Act:
(@) Basic tax assessed refers tothe 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, wheth

2. All existing liabilities which are legitimate and enforceable, secured or
unsecured, whether or not incurred in trade or business; and

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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

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

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

b. Corporations:

With subscribed capital of above PSO 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 PS million up to P20 million — 5% or
250,000, whichever is higher,

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

© Other juridical entities, including but not limited to cooperatives and
foundations, that have become taxable as of December 31° 201n 5% or
75,000, 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

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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

Provided, further, That the availment of the General Tax Amnesty and the issuance of the
ce aisyonding Acceptance Payment Form do not imply the admission of any criminal, civil,
oF 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:

(@) If paid on or before the end of the third calendar month from the effectivity of
the Implementing Rules and Regulations ~ 20%,

(©) If paid after the end of the third calendar month until the end of the sixth
falendar month from the effectivity of the Implementing Rules md
Regulations ~ 15%;

(© 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%.

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
flassification, 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, ete.) 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;

¢. 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;

. Personal properties other than money, shall be accompanied by a
specific description of the kind and number of assets ( eg.
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 values at the date of
the Statement of Assets, Liabilities, and Networth, if acquired through
inheritance or donation;

©. Assets denominated in foreign currency shall be converted into the
corresponding Peso 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,

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Liabilities, and 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 Intemal 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 Retum, 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, 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 Intemal 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.

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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;

(©) 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 Retum, 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

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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 Retum 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 Tax Amnesty. — All proceeds from this Tax
Amnesty shall be allocated 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. Section 6 of the NIRC of 1997, as amended, is hereby further amended to read as
follows:

“See. 6. Power of the Commissioner to Make Assessments and Prescribe Additional
Requirements for Tax Administration and Enforcement.

A. Examination of Returns and Determination of Tax Due. ~ After a return has been
filed as required under the provisions of this Code, the Commissioner or his duly
authorized representative may authorize the examination of any taxpayer and the
assessment of the correct amount of tax, NOTWITHSTANDING ANY LAW
REQUIRING THE PRIOR AUTHORIZATION OF ANY GOVERNMENT
AGENCY OR INSTRUMENTALITY: Provided, however, That failure to file a
return shall not prevent the commissioner from authorizing the examination of any
taxpayer.

XXX
B.xxx
C.xxx
XXX

F. Authority of the Commissioner to Inquire into and Receive Information on Bank
‘Accounts and Other Related Data Held by Financial Institutions. - 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, the
Commissioner is hereby authorized to inquire into AND RECEIVE INFORMATION
ON the bank deposits and other related [information] DATA held by financial
institutions of:


(1) A decedent to determine his gross estate.

(2) Any taxpayer who has filed an application for compromise of his tax liability under
Section 204(A)(2) of this Code by reason of financial incapacity to pay his tax liability.

In case a taxpayer files an application to compromise the payment of his tax liabilities
on his claim that his financial position demonstrates a clear inability to pay the tax
assessed, his application shall not be considered unless and until he waives in writing
his privilege under Republic Act No. 1405, Republic Act No. 6426 (otherwise known as
the ‘Foreign Currency Deposit Act of the Philippines’), or under other general ot
special laws, and such waiver shall constitute the authority of the Commissioner to
inquire into the bank deposits of the taxpayer.

(3) A specific taxpayer or taxpayers, UPON AN OBLIGATION TO EXCHANGE
TAX INFORMATION WITH A FOREIGN TAX AUTHORITY [subject of a
request for the supply of tax information from a foreign tax authority] pursuant to an
intemational convention for}, agreement, OR TREATY on tax matters to which the
Philippines is a signatory or a party of, DULY RATIFIED AND CONCURRED IN
BY THE SENATE OF THE PHILIPPINES: Provided, That the information obtained
from the banks and other financial institutions may be used by the Bureau of Internal
Revenue (BIR) for tax assessment, verification, audit, and enforcement purposes.

{In case of a request from a foreign tax authority for tax information held by banks and
financial institutions, the] The exchange of information WITH A FOREIGN TAX
AUTHORITY ‘shall be done IN ACCORDANCE WITH INTERNATIONAL
COMMON REPORTING STANDARDS AND in a secure manner to ensure
confidentiality thereof under such rules and regulations as may be promulgated by the
Secretary of Finance, upon recommendation of the Commissioner.

IN CASE THE EXCHANGE OF INFORMATION IS UPON REQUEST FROM A
FOREIGN TAX AUTHORITY, the Commissioner shall provide the tax information
obtained from banks and financial institutions pursuant to a convention or agreement
‘upon request of such foreign tax authority when such requesting foreign tax authority
has provided the following information to demonstrate the foreseeable relevance of the
information to the request:

a. The identity of the person under examination or investigation;

b. A statement of the information being sought, including its nature and the form in
which the said foreign tax authority prefers to receive the information from the
Commissioner;

©. The tax purpose for which the information is being sought;

4d. Grounds for believing that the information requested is held in the Philippines or
is in the possession or control of a person within the jurisdiction of the
Philippines;

©. To the extent known, the name and address of any person believed to be in
possession of the requested information;

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fA statement that the request is in conformity with the law and administrative
practices of the said foreign tax authority, such that if the requested information
‘was within the jurisdiction of the said foreign tax authority then it would be able
to obtain the information under its laws or in the normal course of administrative
practice and that it is in conformity with a convention or international
agreement, and

g. A statement that the requesting foreign tax authority has exhausted all means
available in its own territory to obtain the information, except those that would
give rise to disproportionate difficulties.

The Commissioner shall forward the information as promptly as possible to the
requesting foreign tax authority. To ensure a prompt response, the Commissioner shall
confirm receipt of a request in writing to the requesting tax authority and shall notify
the latter of deficiencies in the request, if any, within sixty (60) days from receipt of the
request.

If the Commissioner is unable to obtain and provide the information within ninety (90)
days from receipt of the request, due to obstacles encountered in furnishing the
information or when the bank or financial institution refuses to furnish the information,
he shall immediately inform the requesting tax authority of the same, explaining the
nature of the obstacles encountered or the reasons for refusal.

The term "foreign tax authority,” as used herein, shall refer to the tax authority or tax
administration of the requesting state under the tax treaty or convention to which the
Philippines is a signatory or a party of.

(4) ANY TAXPAYER UPON ORDER OF ANY COMPETENT COURT IN
CASES INVOLVING OFFENSES COVERED UNDER SECTION 254 OF R.A.
8424, AS AMENDED, SUBJECT TO RULES AND REGULATIONS
PRESCRIBED BY THE SECRETARY OF FINANCE UPON
RECOMMENDATION OF THE COMMISSIONER OF INTERNAL
REVENUE.”

SEC. 15, 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. 16. 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. 17. 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.

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SEC. 18. 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. 19. 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,