BIR Ruling

June 4, 1975 Gen. Pelagio A. Cruz Chairman, ASAC Camp General Emilio Aguinaldo Quezon City S i r : This refers to your letter dated April 1, 1975 requesting a ruling on the following questions: "1. Are illegal loggers/concessionaires entitled to the provisions of Tax Amnesty as provided by Presidential Decree Nos. 23, 67, 161, 164, 370, as amended by Presidential Decree No. 631? "2. In cases where the amount of 10% and/or 20% are paid under the Tax Amnesty by the licensees are very much lower than the actual amount or assessments due the government, are loggers, licensee or concessionaires still required to pay the difference or balance thereof?" cdti In reply, I have the honor to inform you as follows: 1. The answer to your first query is in the affirmative, provided that the illegal loggers/concessionaires complied with the conditions for the availment of the amnesty. As regards the specific cases enumerated in your letter, this Office will have to secure the records of said cases to enable it to finally resolve whether or not the taxpayers concerned are entitled to the immunities prescribed by the amnesty decrees. 2. The answer to your second query is in the negative for the reason that the taxpayer, having availed of the tax amnesty under the conditions prescribed therein, is already relieved from any civil, criminal or administrative liabilities under the National Internal Revenue Code. Moreover, since amnesty returns are confidential in nature, no one, including an internal revenue officer, is supposed to know how much amnesty tax was paid by a logger, licensee or concessionaire. Hence, it cannot possibly be determined whether the 10% and/or 20% amnesty tax paid by the taxpayer is very much lower than the tax legally due from him. To require the taxpayer to pay the balance or difference would be tantamount to revealing the amount of amnesty tax paid, and, consequently the amount of untaxed income and/or wealth declare in the amnesty return which is prohibited by the tax amnesty decrees. However, this Office is fully aware of the fact that there are taxpayers who have not fully declared all their untaxed income thereby making a mockery of the tax amnesty decrees. This Office is determined to go after said taxpayers. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR".