Tax on the Increase in Net Worth from Dec. 31, 1980 to Dec. 31, 1985 Deemed as Payment in Lieu of Deficiency Income Tax

October 28, 1986 BIR RULING NO. 226-86 19 000-00 226-86 Gentlemen : This refers to your letter dated October 21, 1986 requesting a ruling as to whether the tax of ten per cent (10%) on the increase in net worth from December 31, 1980 to December 31, 1985 which will be paid by taxpayers who are availing of the tax amnesty under Executive Order No. 41 is in the nature of income tax payment for the years 1981 to 1985. In reply, please be informed that since the tax amnesty granted under Executive Order No. 41 covers unpaid income taxes for the years 1981 to 1985, and taxpayers who have properly availed thereof are relieved of any income tax liability on any untaxed income from January 1, 1981 to December 31, 1985, the tax of ten per cent (10%) on the increase in net worth from December 31, 1980 to December 31, 1985 paid in accordance with Executive Order No. 41 as amplified by Revenue Regulations No. 14-86 dated August 27, 1986 is considered as payment in lieu of any deficiency income tax for the years 1981 to 1985. Very truly yours, (SGD.) ROMULO M. VILLA Acting Commissioner