Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

Seventeenth Congress
Third Regular Session

House Bill No. 9165

EXPLANATORY NOTE

On February 14, 2019, President Rodrigo R. Duterte signed into law Republic Act
No. 11213, entitled “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 2017 AND PRIOR YEARS WITH RESPECT TO ESTATE TAX, OTHER
INTERNAL REVENUE TAXES, AND TAX ON DELINQUENCIES” or the “Tax Amnesty
Act”, which aims to further the government’s effort to improve tax administration and
compliance, and give taxpayers an opportunity to settle outstanding tax liabilities and start
anew.

The abovementioned laudable aims, notwithstanding, the provisions on general tax amnesty
under Title II] of RA No. 11213 were vetoed by the President on grounds of unconditional
latitude granted therein. Hence, the President requested Congress to pass a version that
includes provisions on the lifting of bank secrecy for fraud cases and exchange of information
to realize fully the noble objectives of the proposed general tax amnesty.

This bill is hereby filed to heed the President’s noble call. It contains the safeguards sought
for a more balanced general tax amnesty. Given the refinements introduced, the much-needed
benefits of general amnesty shall finally be attained both by the government and our people.

Accordingly, passage of the measure is earnestly sought.

REP. ESTRELLITA B. SUANSING REP. HORAC a 7 UANSING ye


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
Third Regular Session

House Bill No. 9265

Introduced by Representatives Estrellita B. Suansing and Horacio P. Suansing, Jr.

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. ~ It is hereby declared the policy of the state to protect and
enhance revenue administration and collection, and make the country’s tax system more
equitable, by simplifying the tax compliance requirements. Towards this end, the State shall
broaden the tax base by offering a general tax amnesty for all unpaid internal revenue taxes
that will help cleanse, organize, and improve the Bureau of Internal Revenue’s database.

SEC. 3. Definition of Terms. — As used in this Act:

(a) Basic tax assessed refers to the 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, whether or not used in trade or business: Provided, That property
other than 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 the Statement of
Assets, Liabilities, and Networth;

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

3. The networth of the taxpayer, which shall be the difference between the total
assets and total liabilities.

(c) 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.

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SEC. 4. Coverage. ~ There is hereby authorized and granted a tax amnesty, hereinafter called
General Tax Amnesty, which shall cover all national internal revenue taxes such as, but not
limited to, income tax, withholding tax, capital gains tax, donor's tax, value-added tax,
percentage taxes, excise tax, and documentary stamp tax collected by the Bureau of Internal
Revenue, including value-added tax and excise taxes collected by the Bureau of Customs for
taxable year 2017 and prior years, with or without assessments duly issued therefor, that have
remained unpaid: Provided, however, That the General Tax Amnesty hereby authorized and
granted shall not cover persons or cases enumerated under Section 10 of this Act.

SEC. 5. Entitlement Under the General Tax Amnesty. ~ Except for instances covered under
Section 10 of this Act, any person, whether natural or juridical, may enjoy the immunities and
privileges of the General Tax Amnesty by paying, at the taxpayer’s option, an amnesty tax at:

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

ii, based on the taxpayer’s total networth as of December 31, 2017, as declared in the
Statement of Assets, Liabilities, and Networth filed pursuant to Section 6 of this Act,
and in accordance with the following schedule of amnesty tax rates and minimum
amnesty tax payments required:

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

b. Corporations:

1.With subscribed capital of above P50 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.

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

c. Other juridical entities, including but not limited to cooperatives and
foundations, that have become taxable as of December 31, 2017 — 5% or
P75,000, 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
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
One (1) year from the effectivity of the Implementing Rules and Regulations, file with the

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appropriate office of the Bureau of Internal Revenue, which has jurisdiction over the
taxpayer, a swom General Tax Amnesty Return accompanied by a notarized Statement of
Total Assets or notarized Statement of Assets, Liabilities, and Networth, as the case may be,
as of December 31, 2017. The payment of the amnesty tax shall be made at the time the
General Tax Amnesty Return is filed:

Provided, that the Revenue District Officer shall issue and endorse an Acceptance Payment
Form, in such form as may be prescribed in the Implementing Rules and Regulations of this
Act, authorizing the authorized agent bank, or in the absence thereof, the revenue collection
agent or municipal treasurer concerned, to accept the amnesty tax payment:

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

(a) If paid on or before the end of the third calendar month from the effectivity of
the Implementing Rules and Regulations — 20%;

(b) If paid after the end of the third calendar month until the end of the sixth
calendar month from the effectivity of the Implementing Rules and
Regulations — 15%;

(0) 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%.

Provided, finally, That, 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, and
for purposes of validation relative to availment of the General Tax Amnesty, the filing of a
sworn General Tax Amnesty Return authorizes the Commissioner of Internal Revenue for the
duration of the one (1) year period of availment of the General Tax Amnesty to inquire into
and receive information on the taxpayer’s bank deposits and other related data held by local
and foreign financial institutions, and to exchange information with a foreign tax authority
pursuant to an international convention, agreement, or treaty to which the Philippines is a
signatory or a party thereof, duly ratified and concurred in by the Senate of the Philippines.

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:


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 values 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 (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

|. 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 value 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 Philippine currency equivalent, at the rate of exchange

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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 daté 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,
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 Internal 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 Return, 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. However, the taxpayer may use this as a
defense, whenever appropriate, in cases brought against the taxpayer.

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(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 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, and/or exemptions under existing laws.

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;
(c) 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 Return, Statement
of Total Assets, or Statement of Assets, Liabilities, and Networth, as the case may be, and

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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
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. - \t
shall be unlawful for any person having knowledge of the Tax Amnesty Return 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 General Tax Amnesty. — All proceeds from the
General Tax Amnesty shall be allocated to augment the appropriations needed 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. 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
afier the one (1) year period of availment of the General Tax Amnesty under this Act

SEC. 15. 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. 16. 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.

SEC. 17. 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. 18. 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,