BIR Ruling

February 26, 1973 Miss Paz L. Aguilar Certified Public Accountant 6964-D Washington Makati, Rizal M a d a m : This refers to your letter dated November 18, 1972 requesting clarification on the following questions regarding the implementation of Revenue Regulations No. 8-72: cdta "Whether a taxpayer who would file and pay the ten (10%) percent tax for undeclared income prior to 1972 which have been hoarded in the Philippines would be allowed to invest such income in his/her own business or in any corporation which he/she is one of the incorporators? "Furthermore, if the undeclared income prior to 1972 has already been invested in his/her own business, or in a corporation wherein he/she is an incorporator, will the taxpayer be protected by Regulations No. 8-72?" Revenue Regulations No. 8-72 has been repealed by Revenue Regulations No. 15-72 dated December 11, 1972. A taxpayer having previously untaxed income consisting of cash hoarded in private vaults or safe deposit boxes in the Philippines is not required to comply with the conditions stated in Section 5(c) of said Revenue Regulations No. 15-72, in order that he can avail of the amnesty provided in Presidential Decree No. 23, as amended. As regards, therefore, your first question, the same is answered in the affirmative, even if such business or corporation does not deal in any of the undertakings specified in Section 5(c) of Revenue Regulations No. 8-72, as amended. As regards the second question, the same is answered in the affirmative, provided that the undeclared income consisting of hoarded cash in the Philippines is declared in the return required in Section 6 of Revenue Regulations No. 15-72 and the 10% tax thereon paid. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue