BIR Ruling

March 30, 1973 Mr. Nemesio G. Co 211-15 Alliance Bldg. Rosario St., Manila S i r : This refers to your letter dated March 30, 1973 relative to Presidential Decree No. 23, as amended, and in reply thereto please be informed as follows: A taxpayer may simply declare the amount of previously untaxed income and/or wealth in his return without stating the nature thereof. However, if cash hoarded abroad is included in the declaration, the amount of such cash and location thereof should be indicated. A corporation or partnership organized only in 1972 and starting operations only in said year cannot possibly avail of Presidential Decree No. 157. However, if the taxpayer have unrecorded income or acquisition or otherwise have not properly recorded its operations in its books, but later adjusted its books by correctly reflecting its operations in said year and declaring in its return its correct income, recorded or unrecorded, it shall not be subject to any civil, criminal, or administrative liability as whatever violation would have been committed has been wiped out by the adjustment of its books and the return of its correct income. The partners of a general partnership are the taxpayers to avail of the amnesty and not the partnership. Accordingly, for purposes of Presidential Decree No, 157, the partners should file their individual returns. The partnership may also file a return which shall serve only as an informative return. Thus the question of whether or not the 1972 partnership return should disclose a tax greater or lower than the tax shown in its 1971 return is of no moment. As heretofore pointed out, the partners can avail of Presidential Decree No. 157, provided that they have previously availed of Presidential Decree No. 23 and they pay a tax greater than the tax paid in 1971 by at least 40%. A taxpayer who had already filed its 1972 return prior to the promulgation of Presidential Decree No. 157 may still avail of the Decree by filing Form A or Form B, as the case may be, prescribed by Revenue Regulations No. 3-73 and attaching therewith a copy of the return it filed previously for 1972 and his return for 1971 and copies of the official receipts of payment in 1971. He may also file an amended return if he should so desire. aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue