Effectivity of Presidential Decree No. 1457

October 27, 1978 REVENUE MEMORANDUM CIRCULAR NO. 085-78 SUBJECT : Effectivity of Presi dential Decree No. 14 57 TO : All Internal Revenue Officers and Others Concerned For the guidance of all concerned relative to the effectivity date of Presidential Decree No. 1457, there is quoted hereunder the letter of the undersigned to the Bankers Association of the Philippines, clarifying the date of effectivity of the said decree. aisa dc "August 29, 1978 "The Bankers Association of the Philippines Manila Attention: Mr. August M. Barcelon President "Gentlemen : "This refers to your letter dated August 8, 1978 and your telegram dated August 10, 1978, requesting for information as to the date of effectivity of Presidential Decree No. 1457. "In reply, I have the honor to inform you that P.D. No. 1457, which was promulgated on June 11, 1978, provides in Section 5 thereof that 'this Decree shall take effect immediately upon its approval.' Accordingly, the effectivity date of P.D. No. 1457 is June 11, 1978. However, this Office is mindful of the fact that the provisions of the said decree were not known to the taxpayers concerned until its publication in full on August 5, 1978 in newspapers of general circulation. "In view of the above and in fairness to all concerned, this Office has adopted the policy of not strictly enforcing the provisions of the decree based on the effectivity date thereof in the following cases: "1. Prosecution of any criminal liability for the violation of any provisions of the decree, if the offense was committed prior to August 5, 1978. "2. Where compliance with the provisions of the decree is no longer feasible. For example, a tourist sent by wireless a message to his relative in the United States last June 20, 1978 and on the next day left for abroad. As the person rendering the service to the tourist on June 20, 1978 had no knowledge then of the provisions of Section 290-A, a new provision of law, he did not withhold the 10% tax due from the tourist, and since the tourist had already left the Philippines, compliance with the obligations to withhold the tax due from the tourist is no longer feasible. "3. Where the proper documentary and science stamps under the old rate have already been affixed or imprinted and the documents subject to stamp tax have already been registered prior to August 5, 1978, the affixture of additional stamps and the collection of deficiency stamp tax pursuant to the new rates prescribed under P.D. 1457 shall be deemed waived. However, documents subject to documentary stamp tax, such as a deed of sale of real property that remained unregistered as of August 5, 1978, shall be subject to the additional stamp tax upon registration in accordance with the new rates provided for under P.D. 1457. "Likewise, on documents that do not require registration, where the transactions covered has already been completed prior to August 5, 1978, any deficiency stamp tax due on the document by virtue of the new law shall be deemed waived. "In the case of checks, those that have already been issued or endorsed prior to August 5, 1978 bearing the proper documentary stamps based on the old rates shall be honored. However, those that were issued on or after August 5, 1978 shall be subject to the new rates prescribed under P.D. 1457, to be paid by the issuer or endorser considering that pursuant to Section 222 of the Tax Code, 'the person making, signing, issuing, accepting or transferring the same' shall be liable for the documentary stamp tax on the document. "4. The new provision of law amending Section 118 of the Tax Code, relating to joint accounts or deposits, shall be implemented by an appropriate Revenue Regulations to be issued by the Minister of Finance upon the recommendation of the undersigned. Very truly yours, (SGD.) EFREN I. PLANA Acting Commissioner" All those concerned are hereby enjoined that in the implementation of the provisions of Presidential Decree No. 1457, the effectivity date of the cases cited in the letter should be followed. aisa dc EFREN I. PLANA Acting Commissioner