BIR Ruling

February 14, 1973 Ist Indorsement Returned to the Chief, Special Investigation Division, his memorandum dated November 27, 1972, requesting resolution on his queries as to the effect of Presidential Decree No. 23, dated October 16, 1972, as amended by Presidential Decree No. 67, providing tax amnesty on previously untaxed income and/or wealth on the rights of informers to reward under R.A. No. 2338, with the following information: A tax case covered by a valid information under Republic Act No. 2338 where no assessment has as yet been issued, which is pending in the Fiscal's Office, Prosecution Division of this Office or is still being processed in this Office may not be the subject of the amnesty provided by Presidential Decree No. 23, (as amended by Presidential Decree No. 67. (Sec. 4, Revenue Regulation No. 15-72). Accordingly, the taxpayer involved in said case, may not be allowed to avail of the said decree by paying 10% of the previously untaxed income and/or wealth. Instead, proceedings on the case should be pushed through until the tax is collected in order that the corresponding claim for reward filed by the informer may be acted upon. aisa dc If the case covered by valid information is contested in the Court of Tax Appeals or protested in this Bureau, this means that an assessment has already been issued. Accordingly, the case comes within the purview of the partial amnesty prescribed by Presidential Decree No. 68 which the taxpayer concerned should have availed of by paying 60% of the tax assessed on or before January 31, 1973 or 80% of the tax assessed if paid on or before February 28, 1973. If the taxpayer avails of the amnesty prescribed in this decree, the informer is entitled to the reward in an amount equivalent to 25% based on the tax paid as reduced. If the case covered by a valid information is still under investigation, such investigation should be suspended to give a chance to the taxpayer concerned to avail of the amnesty prescribed by Presidential Decree No. 23 as amended. Said taxpayer, if he desires to do so, should avail of the decree on or before March 31, 1973. If he avails by paying 10% of the previously untaxed income and/or wealth declared by him, the informer is not entitled to a reward because his right to claim the reward has not been established. On the other hand, if the taxpayer did not avail of the decree, in which case the investigation is resumed, the informer is entitled to the reward based on the tax collected. However, if the status of the investigation is such that the facts constituting the fraud upon the internal revenue law or any violation thereof as contained in the valid information has been definitely ascertained, the taxpayer subject of the information should not be allowed to avail of the amnesty. Instead, proceedings against the taxpayer should proceed until the taxes due from him are collected, in which event, the claim for reward filed by the informer shall be acted upon. cdi (SGD.) MISAEL P. VERA Commissioner of Internal Revenue