BIR Ruling

January 21, 1975 Mr. Nemesio G. Co. 2nd Floor, Alliance Bldg. Rosario St., Manila S i r : This refers to your letter dated January 21, 1975 posing inquiries relative to P.D. No. 631, the Ultimate Tax Amnesty Decree, reproduced as follows: "(1) A taxpayer has gross assets of P49,000.00 but no liabilities as of December 31, 1973, therefore his net worth is P49,000.00 on such date. Hence, he is not required to file the statement of assets, liabilities and net worth as required under P.D. 379, as amended. However, he has an untaxed income/wealth acquired prior to 1974 in the amount of P30,000.00 and wants to avail of P.D. 631 by paying the 20% amnesty tax in the amount of P6,000.00. Now, is it correct for him to file the amount of P79,000.00 as his net worth? cdti "(2) If a taxpayer has gross assets of P100,000.00 but no liabilities as of December 31, 1973. But, for any reason whatsoever, he failed to file the statement of assets, liabilities and net worth as required under P.D. 379, as amended. "Considering that he has also untaxed income or wealth in the amount of P150,000.00 acquired prior to 1974. To avail under P.D. 631. (a) Do you allow him to file amnesty returns for his untaxed income or wealth and the corresponding statement of assets, liabilities and net worth? (b) How many amnesty tax is he supposed to pay? (c) How much shall be his net worth to be reflected in the statement of assets, liabilities and net worth to be filed? "(3) In the prescribed form of the amnesty return to be filed under P.D. 631, the taxpayer is required to attach a xerox or certified true copy of the original statement filed. It is correct that the Original statement means the latest statement that the taxpayer has filed before the deadline as required by law if he has filed more than one statement? "(4) Do you allow the partnership to file amnesty return under P.D. 631 for the untaxed income or wealth acquired prior to 1974 and amend its statement of assets, liabilities and net worth accordingly and enjoy the benefits of immunity of investigation? "(5) A taxpayer, after filing an amnesty return under P.D. 631 and on or before February 28, 1975, subsequently discovered that he has still untaxed income or wealth to declare, do you allow him to file another amnesty return and another amended statement of assets, liabilities and net worth?" aisa dc In reply, I have the honor to inform you as follows: Re Question No. 1 The answer is "Yes". Re Question No. 2 (a) He can file a tax amnesty return as well as the statement of assets and liabilities required by P.D. No. 379, as amended. (b) The 20% tax shall be based on P201,000.00. (c) His net worth is P250,000.00 Re Question No. 3 The answer is "Yes". Re Question No. 4 The answer is "Yes". Re Question No. 5. The answer is "Yes", he can file an amended amnesty return and an amendment to his amended statement of assets and liabilities. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5