PROCLAIMING A TAX AMNESTY ON UNDECLARED INCOME AND/OR WEALTH ACQUIRED IN THE YEAR 1972, SUBJECT TO CERTAIN CONDITIONS

WHEREAS, it is the declared policy of the Government to
afford tax evaders a chance to reform and become part of the New Society
with a clean state;

WHEREAS, under Presidential Decree No. 23, as amended, the
tax amnesty covers previously untaxed income and/or wealth acquired up
to December 31, 1971, only; and

WHEREAS, for the period from January 1, 1972 up to the
proclamation of Martial Law on September 21, 1972, some sectors in the
community may have labored under the inertia of past practices and
wrongdoings thereby leaving some of their incomes, wealth and other
acquisitions unrecorded and/or unreported, rendering themselves liable
to sanctions provided under our existing laws;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution of
the Philippines as Commander-in-Chief of all the Armed Forces of the
Philippines, and pursuant to Proclamation No. 1081, dated September 21,
1972, and General Order No. 1, dated September 22, 1972, as amended, and
in order to give erring taxpayers a real clean slate, do hereby decree:

1. That all the immunities and benefits afforded
   taxpayers under Presidential Decree No. 23, as amended, shall
   likewise be extended to taxpayers with unrecorded or hidden income
   and/or wealth acquired during the year 1972, subject to the following
   conditions:

   a. Only those who have properly availed of Presidential Decree
   No. 23, as amended, may take advantage of the grant of amnesty under
   this Decree;
   b. In the case of taxpayers on the calendar year basis, an income tax
   return must be filed for the taxable year 1972, and in the case of
   taxpayers on the fiscal year basis, the return to be filed shall cover a
   period up to December 31, 1972 only. In both cases, the return must be
   filed on or before April 16, 1973;
   c. The tax to be paid, in the case of taxpayers on the calendar year
   basis, shall be the amount shown on the return filed or an amount equal
   to the income tax paid for the taxable year 1971 plus 40% thereof,
   whichever is higher;
   
   d. In the case of taxpayers on the fiscal year basis, the tax to be paid
   shall be the higher of the following two amounts:

   (1) The amount of tax shown on the return filed; or
   
   (2) An amount which is the sum of (a) an amount which bears the
   same ratio to the income tax paid for the immediately preceding fiscal
   year as the period covered by the return required herein to be filed
   bears to one entire fiscal year and (b) 40% of the amount determined in
   item (2) (a) of this sub-paragraph.

2. The tax determined to be due and payable shall be paid in
   accordance with the following;

a. If the amount is P5,000 or
less, the tax shall be paid upon filing of the return but not later than
April 16, 1973.
b. If the amount is over P5,000 the tax may be paid in two equal
installments, in which case the first installment shall be paid upon
filing of the return but not later than April 16, 1973, and the second
installment shall be paid on or before July 15, 1973.

3. The Secretary of Finance, upon the recommendation of the
   Commissioner of Internal Revenue, shall promulgate the rules and
   regulations to implement this Decree.

Done in the City of Manila, this 16th day of March, in the year of
Our Lord, nineteen hundred and seventy-three.