Taxpayer's Availment of the Tax Amnesty under EO No. 41

April 12, 1989 BIR RULING NO. 070-89 169-00 000-00 070-89 Gentlemen : This refers to your letter dated April 3, 1989 requesting to be furnished with the certified true copies of the 1985 Statement of Assets and Liabilities of Messrs. Alfonso T. Lao, Pablito T. Lao, Anita T. Lao and Elena T. Lao, all of Baguio City. cd It appears that in 1987 the aforesaid taxpayers have jointly acquired real properties in Baguio City valued at P3 million; that their reported income for 1987 is manifestly below said amount; and that in order to establish a prima-facie case of fraud against the aforementioned taxpayers through the networth method, you would like to be furnished a copy of their respective 1985 Statement of Assets and Liabilities. In reply, please be informed that pursuant to Section 7 of Executive Order No. 41 reading: "SEC. 7. Treatment of Unexplained Increase in Networth after December 31, 1985 . The networth of the taxpayer as declared in the statement filed by him pursuant to Section 2(a) hereof shall be considered as his true networth as of January 1, 1986 for purposes of determining his future tax liabilities. Any unexplained increase in his networth after January 1, 1986 shall be considered taxable income in the year when such increase was established or discovered." it can be inferred that the information regarding the taxpayer's networth as disclosed in the Statement of Assets and Liabilities filed in connection with the taxpayer's availment of the tax amnesty under Executive Order No. 41 could be utilized by this Bureau for purposes of establishing the taxpayer's beginning networth, without violating the rule on unlawful divulgence under Section 269 of the Tax Code, or the provision on unlawful divulgence under Section 8 of the adverted Executive Order No. 41. This will serve as an authority for the Tax Amnesty Implementation Officer to furnish you with copies of the 1985 Statement of Assets and Liabilities of the aforesaid taxpayers subject to the condition that the same shall not be used for any other purpose except to establish their beginning networth on January 1, 1986. aisadc Very truly yours, (SGD.) JOSE U. ONG Commissioner