Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
17%» CONGRESS
First Regular Session

4412

House Bill No. __

Introduced by Representative Wes Gatchalian

EXPLANATORY NOTE

It is the reality of the free market that not all economic
ventures result into the desired profitable business. It is therefore a
reality that many entrepreneurs decide to close shop and cease
operations when their capital are no longer able to meet the losses
that they are incurring. This is an accepted reality and one that is
foreseen by anyone endeavoring to enter into business. What is
however often overlooked are the costs imposed by government on
closing business ventures. When a business owner ceases to operate
without paying the proper fees, he is further burdened by penalties
which accrue over time:

In proposing the amnesty in this bill, the following are the main
considerations of the proponent. First, it is to give those
entrepreneurs a fresh start and a clean slate from their failed
ventures, These penalties are an undue burden to a person who is
already down after incurring losses; moreover, it is a barrier and
deterrence to those attempting to re-enter into business. Second, as a
policy, it is submitted that the government should not make
economic realities of capital holders more burdensome tha
already is. It is for these reasons that immediate passage of HatSbill is
sought.

HALIAN

Representative

1s District Valenzuela City



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
17" CONGRESS
First Regular Session

4412

House Bill No, _"

Introduced by Representative Wes Gatchalian

AN ACT
ENHANCING REVENUE ADMINISTRATION AND COLLECTION
BY GRANTING AN AMNESTY ON ALL ACCRUED PENALTIES
AND CHARGES OF BUSINESSES WHICH CEASED TO
OPERATE WITHOUT CLERANCE FROM THE NATIONAL
GOVERNMENT

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 an amnesty for payment of penalties and charges’ to all
businesses who have ceased to operate and have not formally
filed the proper application for closure with the bureau of internal
revenues, and for such reason have accumulated penalties and
charges with the bureau for the year 2016 and all prior years.

SEC. 2. Availment of the Amnesty. — Any person, natural or
juridical, who wishes to avail himself of the amnesty authorized
and granted under this Act shall file with the Bureau of Internal
Revenue (BIR) a notice of availment of such amnesty, a proof of
closure as may be prescribed in the IRR of this Act, a Statement of
Assets, Liabilities and Net Worth (SALN) as of the fiscal year
immediately preceding the effectivity of this Act, and pay the
applicable fees which in no case shall exceed the original peso
value of what the business owner would have paid had he filed the
proper application for closure at the moment he ceased to operate.
within six months from the effectivity of the IRR.


SEC. 3. Grant of 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 amnesty under this
Act: Provided that any person whose net worth is below five million
pesos (P 5, 000, 000) shall not be charged any fee

SEC. 4. When and Where to File and Pay. — The filing of the
Amnesty Return and the payment of fees for those availing
themselves of the amnesty shall be made within six 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. 5. Exceptions. — The amnesty provided in Section 3 hereof
shall not extend to the following persons or cases existing as of the
effectivity of this Act

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

2. Those with pending cases involving unexplained or unlawfully
acquired wealth or under the Anti-Graft and Corrupt Practices Act;

3. Those with pending cases filed in court involving violation of the
Anti-Money Laundering Law;

4. 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

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

SEC. 6. Penalties. —

4. Any person who, having filed a statement or 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.

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

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

3. Any person who makes an unlawful divulgence of the 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 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. 7. 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 sixty (60) days from the effectivity of this Act

SEC. 8. Effectivity. — This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in any two
newspapers of general circulation, whichever comes earlier.
Approved,