BIR Ruling

February 5, 1974 The President Federation of Filipino-Chinese Chambers of Commerce, Inc. 6th Flr., Federation Center Muelle de Binondo, Manila S i r : This refers to your letter dated January 23, 1974, relative to P.D. No. 370, and, in reply to the queries therein posed. I have the honor to inform you as follows: An itemized statement of a person's untaxed income or wealth is not required. However, the nature of the untaxed wealth should be specified, that is whether as income, inheritance, gift, hoarded cash abroad, etc. Should a person discover after filing an amnesty return that he did not declare all of his untaxed wealth, he may amend his original return and not file an entirely new and separate return. He may effect an amendment as many times as may be necessary for the duration of the efficacy of the Decree. On every amendment effected, corresponding adjustment shall be made as to the amount of the first payment and schedule of installment payments, if necessary. Fictitious loans and payables, unrecorded sales or income, overstatement of expenses and understatement of assets, such as merchandise inventories, equipment and receivables or any other understatements, or we may add including overstatements, actually give rise to untaxed income, and, therefore, the taxpayer should, to the extent that they represent untaxed income, include such determined amount as part of his untaxed income. The taxpayer may also adjust his books of accounts for 1973 accordingly. However, since there is no amnesty for 1973, the books of accounts of the taxpayer for 1973 must necessarily have to be looked into in the verification and examination of his income tax return for said year. cd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5