Publishing the Amendments Effected by Presidential Decree No. 662 to Presidential Decree No. 631 (Ultimate Tax Amnesty)

March 3, 1975 REVENUE MEMORANDUM CIRCULAR NO. 04-75 SUBJECT : Publishing the Amendments Effected by Presidential Decree No. 662 to Presidential Decree No. 631 (Ultimate Tax Amnesty) TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is published below the amendments to Presidential Decree No. 631 effected by Presidential Decree No. 662: MALACAANG Manila PRESIDENTIAL DECREE No. 662 AMENDING PRESIDENTIAL DECREE NUMBERED SIX HUNDRED THIRTY-ONE WHEREAS, there were many taxpayers who were not able to file the amnesty return and pay the tax due thereon under Presidential Decree No. 631 on the last day for filing and payment of the tax inasmuch as the last day fell on the date immediately following the National Referendum and the long holiday period; WHEREAS, the proximity of the last day for paying the amnesty tax almost coincides with the deadlines for paying income tax for 1974, as well as with other payments of other governmental fees during the first quarter of 1975 which may upset the financial plans of taxpayers, thereby making it difficult for them to comply promptly with the various requirements of their obligations to the government within the short interval of time. WHEREAS, there are many Filipinos residing abroad who may want to avail of the benefits provided for by Presidential Decree No. 631 which grants ultimate tax amnesty but were unable to do so due to lack of adequate information. WHEREAS, in view of the short time from the date of issuance of the decree to the last day for the filing not all those who may want to avail of the amnesty were informed. NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution do hereby decree and order: SECTION 1. That Section 3 of Presidential Decree No. 631 is hereby amended to read as follows: "Section 3. In the case of resident Filipino citizens and aliens the tax amnesty return shall be filed in the prescribed BIR form with the Office of the Commissioner of Internal Revenue, Regional Director or Revenue District Officer on or before March 31, 1975 showing the amount of untaxed income and/or wealth for 1973 and prior years; and in the case of Filipino citizens residing abroad and non-resident aliens having properties located in the Philippines, the tax amnesty return shall be filed with the Office of the Commissioner of Internal Revenue or with the nearest Philippine Embassy or Consulate abroad on or before June 30, 1975. "Together with the tax amnesty return, an amended statement of assets, liabilities and net worth which shall include the untaxed income and/or wealth correspondingly indicated in the particular kind of asset(s) should be filed. In no case shall the untaxed income or wealth disclosed for amnesty purposes be less than the difference between the total value of assets as adjusted and the value of assets per original statement." SECTION 2. That Section 5 of Presidential Decree No. 631 is hereby amended to read as follows: "Section 5. The amnesty tax imposed herein shall be paid as follows: (a) Resident citizens and aliens: (1) If the amount due does not exceed P5,000 the tax must be paid at the time of filing of the return but not later than March 31, 1975; (2) If the amount due exceeds is P5,000 but is not more than P50,000, the tax may be paid in two equal installments, the first installment to be paid upon the filing of the return but not later than March 31, 1975 and the second installment on or before May 31, 1975; (3) If the amount due exceeds is P50,000 the tax may be paid in three equal installments, to wit: (i) The first installment shall be paid upon the filing of the return but not later than March 31, 1975; (ii) The second installment shall be paid on or before May 31, 1975; and (iii) The third installment shall be paid on or before August 31, 1975. (4) In highly meritorious cases and where the amount due exceeds P300,000 but does not exceed P500,000 the Commissioner of Internal Revenue may grant extension of time for the payment of the tax in equal installments but the first installment must be paid at the time of filing of the return but not later than March 31, 1975 and provided that extended period of payment by installments does not exceed two years from the date the last installment is originally due; (5) In cases where the amount exceeds P500,000 the extended period of payment by installments should not exceed three years from the date the last installment is originally due. (b) For non-resident citizens and non-resident aliens having property in the Philippines: (1) If the amount due does not exceed P5,000 the tax must be paid at the time of the filing of the return but not later than June 30, 1975; (2) If the amount due exceeds P5,000 but is not more than P50,000, the tax may be paid in two equal installments, the first installment to be paid upon the filing of the return but not later than June 30, 1975 and the second installment on or before September 30, 1975. (3) If the amount due exceeds P50,000 the tax may be paid in three equal installments, to wit: (i) The first installment shall be paid upon the filing of the return but not later than June 30, 1975; (ii) The second installment shall be paid on or before September 30, 1975; and (iii) The third installment shall be paid on or before December 31, 1975. (4) In highly meritorious cases and where the amount due exceeds P300,000 but does not exceed P500,000 the Commissioner of Internal Revenue may grant extension of time for the payment of tax in equal installments but the first installment may be paid at the time of filing of the return but not later than June 30, 1975 and provided that the extended period of payment by installments does not exceed two years from the date the last installment is originally due. (5) In cases where the amount exceeds P500,000 the extended period of payment by installments should not exceed three years from the date the last installment is originally due. (c) If any installment is not paid on the due date thereof, three shall be collected as part of the tax interests upon such unpaid amount at the rate of 14% per annum from the due date of the installment to the date of payment, which must be made not later than three (3) months from the due date of such installment, otherwise, the entire amount including all unpaid installments shall automatically become due on such date, and failure to pay the same within thirty (30) days shall render the amnesty granted herein null and void. SECTION 3. All laws, rules and regulations which are inconsistent herewith are hereby repealed, modified and/or amended accordingly. SECTION 4. This Decree shall take effect immediately. DONE in the City of Manila this 3rd day of March in the year of Our Lord nineteen hundred and seventy-five. (Sgd.) FERDINAND E. MARCOS President of the Philippines FEATURES OF THE AMENDMENT 1. Amendment to Section 3 of Presidential Decree No . 631 The filing of the tax amnesty return has been extended to March 31, 1975. The filing of amnesty returns and the statement of assets, liabilities and net worth insofar as non-resident Filipino citizens and non-resident aliens having properties in the Philippines has been extended to June 30, 1975. 2. Amendment to Section 5 of Presidential Decree No . 631 The dates of payment have likewise been amended to coincide with the extension: A. Citizens and resident aliens 1) If the amount does not exceed P5,000, the tax must be paid upon filing of the return but not later than March 31, 1975; 2) If the amount exceeds P5,000 but does not exceed P50,000 the tax due is payable in two installments, the first installment upon filing but not later than March 31, 1975 and the second installment on or before May 31, 1975. It used to be May 15, 1975 in the original decree. 3) If the amount exceeds P50,000 but does not exceed P300,000, the tax is payable in three installments, the first installment to be paid upon filing of the return but not later than March 31, 1975. The second installment on or before May 31, 1975 instead of May 15, 1975 and the third installment on or before August 31, 1975 instead of August 15, 1975. 4) If the amount exceeds P300,000 but does not exceed P500,000, it may be paid in equal installments within a period of two years from the date the last installment is originally due. 5) In case the tax due exceeds P500,000, the installment period has been increased from two years to three years from the date the last installment is originally due. B. Non-residing Filipino citizens and aliens having property in the Philippines: 1) If the amount due does not exceed P5,000, the tax must be paid at the time of filing of the return but not later than June 30, 1975; 2) If the amount due exceeds P5,000 but does not exceed P50,000, the tax may be paid in two equal installments, the first installment to be paid upon the filing of the return but not later than June 30, 1975 and the second installment on or before September 30, 1975. 3) If the amount due exceeds P50,000, the tax may be paid in three equal installments. The first installment shall be paid upon the filing of the return but not later than June 30, 1975; the second installment on or before September 30, 1975; and the third installment on or before December 31, 1975. 4) If the amount due exceeds P300,000 but does not exceed P500,000, it may be paid in equal installments within a period of two years from the date the last installment is originally due. 5) In cases where the amount exceeds P500,000 the extended period of payment by installments should not exceed three years from the date the last installment is originally due. 3. Effectivity . Presidential Decree No. 662 which amended Presidential Decree No. 631 is effective immediately. 4. Enforcement . All internal revenue officers and employees are enjoined to be guided accordingly and to give this circular as wide a publicity as possible. MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5