GRANTING A TAX AMNESTY ON UNTAXED INCOME AND/OR WEALTH EARNED OR ACQUIRED DURING THE TAXABLE YEARS 1974 TO 1980 AND REQUIRING THE FILING OF THE STATEMENT OF ASSETS, LIABILITIES,…

WHEREAS, on account of the relatively complicated manner of
computing the tax to be paid under Presidential Decree No. 1740, only a limited
number of taxpayers have availed of the benefits of the said Decree despite the
grant of immunity from investigation;

WHEREAS, to maximize the availment of tax amnesty and invite
the voluntary disclosure of untaxed income or wealth and encourage the
investment of such funds in productive enterprises, there is a need to simplify
the determination of the amnesty tax to be paid; and

WHEREAS, it is the desire to afford full opportunity for
individual taxpayers to come within the fold of the tax reforms and to provide
them with a clean start for the adoption of the gross income taxation
scheme.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution, do hereby
decree and order that:

SECTION 1. Coverage. — In case of voluntary
disclosure of previously untaxed income and/or wealth such as earnings,
receipts, gifts, bequests or any other acquisition from any source whatsoever,
realized here or abroad, by any individual taxpayer, which are taxable under the
National Internal Revenue Code, as amended, the assessment and collection of all
internal revenue taxes, including the increments or penalties on account of
non-payment as well as all civil, criminal or administrative liabilities arising
from or incident thereto under the National Internal Revenue Code, are hereby
condoned provided that the individual taxpayer shall pay:

1. a tax of twenty per centum (20%) on such previously untaxed income or wealth
   in the case of resident citizens or resident aliens; or
2. a tax of two per centum (2%) on such previously untaxed income converted in
   U.S. Dollars derived from sources abroad, in the case of non-resident
   citizens.

Those who have already availed of the benefits granted under Presidential
Decree No. 1740 and its implementing regulations may also take advantage of the
benefits provided for under this Decree and shall be allowed to credit
any amount previously paid under Presidential Decree No. 1740 against the
amnesty tax payable under this Decree.

SEC. 2. Conditions for Immunity. — The immunity
granted under Section one of this Decree shall apply only under the following
conditions:

1. Such previously untaxed income and/or wealth must have been earned or
   realized in any of the years 1974 to 1980;
2. The taxpayer must file an amnesty return on or before November 30, 1981, and
   fully pay the tax due thereon;
3. The amnesty tax paid by the taxpayer under this Decree shall not be less
   than P1,000.00 per taxable year;
4. The taxpayer must file a statement of assets, liabilities and net worth as
   of December 31, 1980, as required under Section 6 hereof.

SEC. 3. Cases Not Covered by this Decree. — The tax
amnesty granted herein shall not apply to the following cases:

1. Criminal cases already filed in Court or with the Fiscal’s Office on or
   before September 17, 1980;
2. Internal revenue tax cases involving civil liability which are the subject
   of a pending criminal action in the Fiscal’s Office or the Court prior to
   September 17, 1980;
3. Withholding tax at source liabilities provided for under Sections
   53, 54 and Chapter XI of Title II of the National Internal Revenue Code; and
   transfer tax cases under Title III of the same Code for which no certificate of
   clearance has as yet been issued; and
4. Deficiency internal revenue taxes assessed on or before September 17, 1980.
   For this purpose, the date of the assessment notice shall be deemed to be the
   date of assessment of the deficiency tax.

SEC. 4. Time Manner and Place of Filing. — The tax
amnesty return shall be filed in the prescribed form with the Office of the
Regional Director, Revenue District Officer, Collection Agent or the authorized
Municipal Treasurer designated as collection officer of the Bureau of Internal
Revenue where the taxpayer has his legal residence or place of business in the
Philippines, then with the Commissioner of Internal Revenue, on or before
November 30, 1981. In the case of Filipino citizens residing abroad, the tax
amnesty return shall be filed with the nearest Philippine Embassy or Consulate
abroad or with the Office of the Commissioner of Internal Revenue.

The amnesty return must show the amount of untaxed income and/or wealth for
each year and the corresponding tax due thereon.

SEC. 5. Payment of Tax on Installment. — The tax
due as disclosed by the taxpayer in his return must be paid at the time of the
filing thereof. If the total tax due exceeds P50,000, the same shall be paid in
accordance with the following schedule:

1. If the amount due exceeds P50,000 but does not exceed P100,000, the tax may
   be paid in two equal installments, the first installment to be paid upon the
   filing of the return and the second installment, on or before January 31, 1982;
2. If the amount due exceeds P100,000, the tax may be paid in three equal
   installments as follows:

   i) The first installment shall be paid upon the filing of the return;
   ii)
   The second installment shall be paid on or before January 31, 1982; and
   iii)
   The third installment shall be paid on or before March 31, 1982.

3. In meritorious cases where the total amount due exceeds P300,000.00, the
   Commissioner of Internal Revenue of the Revenue Regional Director may, upon
   proper application, allow the taxpayer to pay the P300,000.00 in accordance with
   the immediately preceding schedule and the amount in excess thereof in equal
   monthly installments beginning June 30, 1982, up to but not later than September
   30, 1982.
4. If any installment payment is not paid on the due date of said installment,
   the whole unpaid amount will become due and demandable and shall be subject to
   interest and penalties imposed under the Tax Code. The corresponding letter of
   demand and assessment notice shall immediately be issued for the collection of
   the amount due and increments thereon.

SEC. 6. Filing of Net Worth Statement. — (a)
Persons required to make a statement of net worth.— All individuals, whether a
citizen residing in the Philippines or abroad or any alien residing in the
Philippines owning assets and/or properties amounting to P50,000 or more as of
December 31, 1980 and who is not required to file a statement of assets,
liabilities and net worth under Republic Act No. 3019, as amended by
Presidential Decree Nos. 677 and 1288 shall file a sworn statement of assets,
liabilities and net worth as of December 31, 1980.

b) When and where to file. — The statement of assets, liabilities
and net worth as of December 31, 1980 shall be filed in the priscribed form not
later than November 30, 1981, with the Commissioner of Internal Revenue,
Regional Director, Revenue District Officer, Collection Agent or the authorized
Municipal Treasurer who has been designated as collection has his legal
residence or place of business in the Philippines, then with the Commissioner of
Internal Revenue. In the case of non-resident citizens, they may file their
statement with the nearest consular office in the foreign country where they
reside or may file the statement directly with the Commissioner of Internal
Revenue.

SEC. 7. Valuation. — (a) Assets. — The
value of the assets, whether real or personal shall be the cost thereof if
acquired by purchase or the fair market value as of the date of acquisition if
acquired by exchange or by gratuitous title. If the property is used in trade or
business, the depreciated value as of December 31, 1980 shall be included in the
statement. In the case of assets already declared in the statement of assets and
liabilities filed by the taxpayer pursuant to Presidential Decree No. 379 or
631, the value of such assets as declared therein shall be used.

(b) Liabilities. — Only liabilities and enforceable obligations
reducible in sums of money as of December 31, 1980 shall be included in the
statement.

SEC. 8. Penalties for failure to file statement or
rendering false or fraudulent statement. — Any individual required to file
the statement of assets, liabilities and net worth under this Decree who
knowingly makes a false declaration or who deliberately fails to comply with any
of the provisions hereof, shall upon conviction pay a fine of not less than Five
thousand Pesos (P5,000.00) and imprisonment of not less than two (2) years.

SEC. 9. Unlawful divulgence of information. — (a)
No information contain in the statement herein required shall be published
except in the form of tabulations and summaries having no specific reference to
the individual filing the statement.

(b) Except for internal revenue tax purposes, it shall be unlawful for any
officer or employee of the Bureau of Internal Revenue or any government entity
having knowledge of such declaration of assets, liabilities and net worth to
disclose to any person any information relative to such declaration and any
violation hereof shall subject such offender to a fine in the amount of not less
than Five thousand pesos or imprisonment for not less than two years, or both,
and shall be summarily dismissed from the service for cause.

SEC. 10. The Ministry of Finance shall, upon the
recommendation of the Commissioner of Internal Revenue, promulgate the necessary
rules and regulations for the effective implementation of the provisions of this
Decree.

SEC. 11. Repealing Clause. — Any provision of
Presidential Decree No. 1740 and all other issuances pertinent thereto which are
inconsistent herewith are hereby repealed or modified accordingly;
Provided That, those who have already filed the statement of assets
liabilities and net worth prescribed under Presidential Decree No. 1740 need not
file the statement required under this Decree.

SEC. 12. Effectively. — This Decree shall take
effect upon approval.

Done in the City of Manila, this 19th day of September, 1981.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant