BIR Ruling

January 22, 1973 Mrs. Praxedes G. Salvacion Carigara, Leyte M a d a m : This refers to your letter to the Honorable, the Secretary of Public Information, dated January 3, 1973 wherein you pose the following inquiries: "1. If the tax amnesty mentioned in the Phil. Daily Express dated Nov. 25, 1972, which is quoted hereunder includes real property tax (residential house & lot agricultural lands), income tax, professional tax and all other taxes, as the same is quite vague to me: 'FM revamps BIR code, offers amnesty President Marcos yesterday proclaimed a conditional amnesty of tax delinquents, expanded immunity coverage for voluntary disclosure of hidden wealth, and overhauled the internal revenue code to improve tax collection and administration. xxx xxx xxx Mr. Marcos condoned outright delinquent tax accounts amounting to P100.00 of less and provided a 20 to 40 percent reduction of unpaid tax accounts if paid in full on or be-about February 28, 1973. xxx xxx xxx A delinquent taxpayer taking advantage of the tax amnesty may have his tax accounts reduced: 1. By 40 percent if the delinquency is paid in full on or before January 31, 1973; 2. By 20 percent if the delinquency is paid in full on or before February 28, 1973. "2. If one has a delinquent tax account of P300.00 or more and cannot afford to pay in full, can he pay it in installments, say, P50.00 monthly until said accounts shall have been fully paid. "3. The penalty if one cannot pay in full his delinquent tax account on or before the deadline; and "4. The deadline for the payment of the aforementioned taxes." In reply, I have the honor to inform you as follows: 1. Presidential Decree No. 68 does not include delinquent realty taxes under the Assessment Law. Said Decree covers only internal revenue taxes under the National Internal Revenue Code, such as income tax, transfer taxes, etc. Under said Decree, all unpaid delinquent tax accounts, as of November 24, 1972 (date of effectivity of the Decree) amounting to P100.00 or less are condoned; and all delinquent tax accounts which remain unpaid involving an amount exceeding P100.00 including all unlisted and/or current tax accounts resulting from assessments and/or letters of demand already issued as of the date of the Decree and/or such accounts which are protested and/or contested, the final resolution of which are still pending in the Bureau of Internal Revenue and/or in courts shall be reduced: (a) By 40% if said delinquents tax is paid in full on or before January 31, 1973; (b) By 20% if said delinquent tax account is paid in full on or before February 28, 1973. 2. Your second question is answered in the negative. A taxpayer with a delinquent tax account of P300.00 or more but not exceeding P300,000.00 must pay the whole amount as reduced, in the manner indicated under items (a) and (b) above, if he desires to avail of the amnesty under Presidential Decree No. 68. In case the amount of unpaid delinquent accounts exceeds P300,000.00, the taxpayer concerned may avail of the concession under items (a) and (b) above and at his option, the same may be paid in two equal installments, the first to be paid on or before the dates indicated under items (a) and (b) above, as the case may be, and the second installment not later than May 15, 1973. If the second installment is not paid within the specified date, the first installment shall be applied to the original delinquent account. 3. If the delinquent taxpayer does not avail of the concession under items (a) and (b) above, the delinquent tax account shall be collected by court action or summary proceedings. 4. The deadline for the payment of the aforesaid taxes are indicated in items (a) and (b) above. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue