THLRTEENTH CONGRESS OF THE REPUBLIC ) 
THE PHlLIPPlNES 
1 
Firsf Regitlor Sessiotr 
1 
Introduced by Senator Ramon Bong Revillr, Jr. 
EXPLANATORY NOTE 
Despite the recent passage of several tax bills into law, which has led to some 
improvement in our fiscal situation, the truth remains that the country 
~ 
having historical 
budget deficits, huge foreign debt to service and little left for social services - is still far from 
the ideal conditiot~ to service the basic needs of our people. 
The budget deficit is primarily attributed to low revenue generation on the part of 
government and tax evasion on the part of the taxpayers. Thus, measures should be taken to 
increase revenue intake of the government in order to improve the capability of the 
government to finance its budgetary requirements and to reduce, if not eliminate, the cases of 
non-payment of taxes in the country. 
This bill requires the filing of Statements of Assets, Liabilities and Net Worth (SALN) 
along with the tax amnesty return by all taxpayers who wish to avail of the amnesty program 
It provides for a one-time tax amnesty program covering all unpaid national internal revenue 
taxes as of 2003 and prior years. But, it imposes a moratorium on granting tax amnesties in 
the future. 
Aside fi-om the fact that tax amnesties may encourage the informal sector to surface, 
thus, broadening the tax base, this amnesty may likewise allow the tax administration to 
economize on the cost of prosecuting tax evasion cases. 
Therefore, the immediate passage of this bill is earnestly sought 


THIRTEENTH CONGRESS OF THE REPUBLlC ) 
THE PHILIPPINES 
1 
Fwst lleg1rlm Ses.s1on 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT GRANTING A ONE-TIME TAX AMNESTY ON ALL UNPAID NATLONAL 
INTERNAL REVENUE TAXES IMPOSED BY THE NATIONAL GOVERNMENT 
FOR TAXABLE YEAR 2003 AND PRIOR YEARS AND FOR OTHER PURPOSES 
Be eitncfed by /he Sennle and House of Representafives of 
the Philippines in Congc"es,s 
nssentbkd: 
SECTION 1. Coiwage. - There is hereby authorized and granted a tax ainnesty 
which shall cover all national internal revenue taxes for the taxable year 2003 and prior years, 
with or without assessments duly issued therefore, that have remained unpaid as of December 
31, 2003: Provided, howetw, That the amnesty hereby authorized and granted shall not cover 
persons enumerated under Section 10 hereof 
SEC. 2. Avnilnzettt ofthe Ammesty. - Any person, natural or juridical, who wishes to 
avail o the tax amnesty authorized and granted under this Act shall file with the Bureau of 
Internal Revenue (SIR) a Tax Amnesty Return accompanied by a Statement of Assets, 
Liabilities and Networth (SALN) as of December 31, 2003, in such form as shall be 
prescribed by the Secretary of Finance, upon the recommendation of the Commissioner of 
Internal Revenue, and pay the applicable amnesty tax within our (4) months following the 
effectivity of this Act. 
SEC. 3. M/ltnt to Declwe in the SALN - The SALN shall contain a declaration of the 
assets, liabilities and networth as of December 31, 2003, as follows: 
(a) Assets within or outside the Philippines, whether real or personal, tangible or 
intangible, whether or not used in trade or business: Provided, jrrther, That foreign currency 
assets and/or securities shall be valued at the rate of exchange prevailing as of the date of the 
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 be the difference between the total assets 
and total liabilities. 
SEC. 4. Presunytion of Correctness of SALN. -The SALN as of December 3 1, 2003 
shall be considered as true and correct except where the amount of declared networth is 
understated to the extent of twenty-five percent (25%) or more as may be established in 
proceedings initiated by, or at the instance OF, parties other than the Bureau of Internal 
Revenue (BIR) within three years following the date of the filing of the amnesty return and 
SALN. 
SEC. 5. T(LY 
Aitmesfy an Tn-xpyers with no Znternnl Revenue Tax Assessnients. - 
(a) Any person, whether natural or juridical, without pending or outstanding assessments for 


any national internal revenue taxes as of December 3 1, 2003, may avail of the tax amnesty 
herein granted by filing ail amnesty return as prescribed under Section 2 hereof, and upon 
payment of an amnesty tax based on his or its networth as of December 3 1, 2003, as declared 
in the SALS as of said period, in accordance with the following schedule of amnesty tax rate 
and required minimum amnesty tax: 
(1) Individuals (whether resident or non-resident citizens, including resident aliens); 
(A) Employees, whether on a permanent or contractual basis 
-----_-__- 
3% or P20,000.00 
whichever is higher 
(B) Self-employed andlor professionals 
-------_-- 3% or PS0,000 00 
whichever is higher 
(2) Trusts and Estates 
__---_____ 
3% or 100,000.00 
whichever is higher 
(3) Corporations, including tax-exempt organizations enumerated under section 
30 of the National Internal Revenue Code of 1997, as amended, but otherwise 
taxable on their income from any properties or activities conducted for profit: 
(A) Taxpayers with subscribed capital of above P50 Million 
-----______ 
3% or P500,000.00 
whichever is higher 
(B) Taxpayers with subscribed capital of above P20 Million 
up to PSO Million 
-----____-- 
3% or 250,000.00 
whichever is higher 
(C) Taxpayers with subscribed capital of above P5 Million 
up to P20 Million 
----__------ 3% or P100,000.00 
whichever is higher 
(D) Taxpayers with subscribed capital of PS Million and below 
-_---_______ 
3% or P25,000.00 
whichever is highel 
(4) Other juridical entities, including but not limited to cooperatives and 
foundations that have become taxable as of December 3 1, 2003 
__--________ 
3% or P20,000.00 
whichever is higher 
(b) 
Taxpayers who filed their balance sheetsiSALN, together with their income tax returns 
for 2003, 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 three percent (3%) based on the resulting increase in networth: Provided, 
Jirrther, That such taxpayers shall likewise be categorized in accordance with, and subjected 
to the minimum amounts of amnesty tax prescribed under the provisions of subparagraph (a) 
hereof. 


(c) 
Taxpayers with foreigii currency assets and/or securities abroad may avail of a tax 
amnesty at the rate equivalent to two percent (2%) of the peso amount at the prevailing 
exchange rate of the repatriated foreign currency assets a d o r  securities: Provided, that the 
said foreign currency assets and/or securities have been declared by the taxpayer in his or it’s 
SALN as of December 3 I, 2003: Proviciedjirther, that the same have been brought in the 
Philippines from December 31, 2003 up to the time of filing tax amnesty: PFovided 
fin.tl?emiore, that a duly notarized sworn statement declaring the amount of repatriated foreign 
currency assets and/or securities and a certification of inward remittance thereof issued by the 
Bangko Sentral ng Pilipinas (BSP) shall be submitted by the taxpayer: Proviu‘edfinn]ly,edjml&, that 
the amended networth of the taxpayer as of December 31, 2003, net of such repatriated 
foreign currency assets and/or securities, may be subjected to the amnesty tax under 
subsections (a) or (b) hereof 
SEC. 6. T h  Anwsty for Tavpayer.s with Pending T u  Awessrnents Before the 
Bureau oflnternnl Revenue. - A taxpayer, whether natural or juridical, with assessments for 
national internal revenue taxes, whether protested or pending with the BIR as of December 
31,2003 may avail of the tax amnesty equivalent to ten percent (10%) of the basic tax 
assessed, exclusive of interest, surcharges and penalties, which shall be in addition to the 
amnesty tax imposed under Section 5 andor Section 7 hereof. 
SEC. I. Tax Anznesry for Tavjiayers with Final Assessment Notices nnd Tax Cmes 
Pending before the Corrrts. - A taxpayer, whether natural or juridical, with a final assessment 
notice and pending cases before the courts for the assessment or collection of national internal 
revenue taxes as of December 3 1, 2003, except those mentioned under section l0(e) hereof, 
may avail of the tax amnesty equivalent to twenty-five percent (25%) of the basic tax 
assessed, exclusive of interests, surcharges and penalties, which shall be in addition to the 
amnesty tax imposed under Section 5 and/or Section 6 hereof 
SEC. 8. Wlten nnd Where to File nnil Pa$. - The filing of the SALN, as well as the 
tax amnesty return, and the payment of the amnesty tax shall be made within four months 
following the effectivity of this Act: Provided, That tax amnesty returns covering unpaid 
national internal revenue tax liabilities shall be tiled, at the option of the taxpayer, at the 
Office which has jurisdiction over the legal residence or principal place of business of the 
taxpayer. The Cominissioner of Internal Revenue or 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. 
SEC. 9. Inznwnities rind Privileges. - Upon full compliance with the conditions of the 
tax amnesty: 
(a) 
The taxpayer shall be immune from the payment of taxation, as well as additions 
thereto, and the appurtenant civil, criminal or administrative penalties arising 
from the failure to pay any and all national internal revenue taxes under the 
National Internal Revenue Code of 1997, as amended, for taxable year 2003 and 
prior years: l’roiiided, that the immunity herein granted shall attach only to the 
particular tax amnesty availed under Sections 5, 6 and 7 hereof: Provided, 
fifrfher that such immunity shall not extend to any or all of the cases mentioned 
under Section 10 hereof 
(b) 
The taxpayer’s tax amnesty return and SALN as of December 3 1, 2003 shall not 
be admissible as evidence in all proceedings that pertains to taxable year 2003 
and prior years insofar as such proceedings relate to national internal revenue 
taxes before judicial, quasi-judicial or administrative bodies in which he or it is a 
defendant or respondent. 
The taxpayer’s tax amnesty return3 SALN, books of accounts and other records 
of the taxpayer for the years when tax amnesty was availed shall not be 
(c) 


examined. Proim’ed, That the Coinmissioner of Internal Reveiltie may authorize 
in writing the examination of the said docuinents to verify the validity or 
correctness of a claim for grant of any tax refund, tax credit (other than refund or 
credit of taxxation 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 Statement of Assets, Liabilities and Networth or tax amnesty return, or 
where the amount of netwoith as ofDecember 3 1, 2003 is proven, through third 
party information, to be understated to the extent of twenty-five percent (25%) 
or more. 
SEC. 10. Exceptims - The tax amnesty provided in this Act shall not extend to the 
Withholding agents with respect to their withholding tax liabilities; 
Those with pending cases falling under the jurisdiction of the Presidential 
Commission on Good Government; 
Those with pending cases before the Sandiganbayan involving unexplained 
or unlawfully acquired wealth or under the Anti-Graft and Corrupt Practice 
Act. 
Those with pending investigations for, or with pending cases involving any 
violation of the Anti-Money Laundering Act, and/or any of the unlawful 
activities as provided under the said Act; 
Those with pending criminal cases for tax evasion and other criminal offenses 
under Chapter 11 of Title X of the National Internal Revenue Code of 1997, as 
amended, and the felonies of fraud, illegal exactions and transactions. And 
malversation of public funds and property under Chapters 111 and IV of Title VI1 
of the Revised Penal Code; and 
Those with final and executory judgment by the courts 
The above-enumerated cases refer to those pending before the effectivity of this Act. 
Immunities and privileges granted under previous tax amnesties shall be respected and 
recognized thereby. 
SEC. 11. 
Urrlaivfiirl Divulgence of Tax AnznesQ Return and SALN. - Except as 
otherwise provided in Section 14 hereot it shall be unlawful for any person having 
knowledge of the tax amnesty declaration and the 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) ofthis act. 
SEC. 12. Penalties -. (a) Any person who, having filed SALN or tax amnesty return 
under this act, willfully understates his or its networth to the extent of twenty-five percent 
(25%) or more shall, upon conviction be subject to the penalties of perjury under the Revised 
Penal Code. 
(b) The willhl failure to declare any property in the SALN 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 investigations 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. 
(c) The unlawful divulgence of the amnesty tax retuin and the SALN shall be 
penalized by a fine in the amount of not less than FIFTY THOUSAND PESOS (P 50,000.00) 
but not more than ONE HUNDRED THOUSAND PESOS (PlO0,OOO.OO) and suffer 
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 shall 
likewise suffer an additional penalty of perpetual disqualification to hold public office, to vote 
and to participate in any public election. 
Section 13. Morflfur~urri 
oft thc Grant uf TOX Anmesty. - In order to encourage and 
improve tax compliance by taxpayers, it is hereby declared policy in 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 Bureau of Internal Revenue. This will be the final act of Congress in granting tax 
amnesty. 
Section 14. Mmagenient I?&rtitution Sysstent. - The Department of Finance, in 
coordination with the Bureau of Internal Revenue, Bureau of Customs, Land Transportation 
Office, Land Registration Authority, Securities and Exchange Commission and other 
concerned agencies of the government, shall institute a Management Information System for a 
broader tax base resulting from the implementation of this Act for purposes of enhancing 
revenue administration, revenue collection and policy formulation. 
The commissioner of internal revenue shall cause to be published the total amount of 
tax amnesty collected, the total amount of net worth declared and the total tax amnesty returns 
filed, which shall be segregated in accordance with the taxpayers classifications provided 
under Sections 5, 6 and 7 hereof. 
Section 15. Disposition qf Proceeds froin the Tax Amizesty. - An amount equivalent 
to TWO HUNDRED MILLION PESOS @‘200,000,000.00) of the collection from the tax 
amnesty herein granted shall accrue from the Department of Finance and shall be used 
exclusively for purposes of instituting a Management Information System as mandated under 
Section 14 ofthis Act. 
Section 16. Zinplenzeiiting Rides and Rcgulatiom. - The Secretary of Finance shall, 
in coordination with the Commissioner of the Internal Revenue, promulgate and publish the 
necessary rules and regulation for the effective iinplementation of this Act within thirty (30) 
days from the effectivity ofthis Act. 
Section 17. E’fectivity. - This Act shali take effect fifreen (15) days after its 
publication in the ofl‘cial gazette or in any two (2) newspapers of general circulation, 
whichever comes earlier. 
Approved,