BIR Ruling

January 31, 1975 Messrs. Sycip, Gorres, Velayo & Co. 6760 Ayala Avenue Makati, Rizal Attention: Mr . J. U. Ong Gentlemen : This refers to your letter dated January 28, 1975 relative to the operation of P.D. No. 631, the Ultimate Tax Amnesty Decree, and, in answer to the queries posed, I have the honor to inform you as follows: If, during the effectivity of P.D. No. 379, the heirs, whose only assets consist of their share in the inheritance which was not yet definitely determinable at the time, did not file their respective statement of assets, liabilities and net worth, the statement filed by the executor or administrator for the estate may be considered as a statement filed for the heirs collectively. Therefore, in order to place on record that the heirs in their individual capacities have a statement of assets, liabilities and net worth, this Office may allow, as it hereby allows, the heirs to file their individual statements to reflect their shares in the inheritance. They should, however, file with their individual statements a xerox or certified true copy of the statement filed by the executor or administrator. cd The heirs need not, therefore, avail of amnesty under P.D. 631 for the sole purpose of enabling them to file a statement of assets and liabilities under P.D. 379 if, in fact, they have no untaxed income, wealth or acquisitions to declare, for, if this were allowed, the Bureau would be countenancing a mockery of the Decree. However, should an heir have in addition to the inheritance untaxed income, wealth or acquisitions acquired in 1973 and prior years, he can avail of the amnesty under P.D. No. 631 and include such untaxed income, wealth or acquisition in his statement of assets, liabilities and net worth, in which case, the heir shall enjoy the immunity prescribed by P.D. 631 with respect to such statement. Items of income, wealth or acquisitions which were already the subject of assessment notices issued before January 6, 1975 can no longer be the subject of amnesty under P.D. 631. However, should the taxpayer have other untaxed income, wealth or acquisitions which were not covered by the assessment notices, the taxpayer is not precluded from availing of P.D. 631 for such untaxed income, wealth or acquisitions and amend his statement of assets, liabilities and net worth accordingly. In such case, the taxpayer will likewise acquire the immunities prescribed by P.D. 631 with respect to his statement of assets, liabilities and net worth. However, should the taxpayer contest the assessment, he cannot be allowed to invoke the immunities he acquired by his availment of P.D. 631 particularly with respect to his books of accounts and other accounting records as resort to such books and records will be necessary to justify the assessment. For as long, therefore, that the assessment against the taxpayer remains pending, the taxpayer's books of accounts and other records cannot be considered closed. However, the taxpayer continues to enjoy the immunities guaranteed by the Decree with respect to all other matters not relevant to the assessment. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5