Revenue Memorandum Circular No. 26-81

July 29, 1981 REVENUE MEMORANDUM CIRCULAR NO. 26-81 MEMORANDUM TO: All Regional Directors Revenue District Officers and Other Personnel Concerned In the memorandum of the President dated 20 July 1981, the prohibition from investigation of amnesty tax returns filed under Presidential Decree No. 1740 has been clarified. Under said memorandum, conditions have been laid down so as to prevent sham amnesty availments, thereby insuring that the true objectives of the amnesty Decree is achieved. cd i Conformably thereto, your attention is invited to the attached Revenue Memorandum Circular (RMC No. 26-81) prescribing guidelines for the correct availment of the tax amnesty. It is directed that all taxpayers desiring to avail of said amnesty be made to comply strictly with the requirements prescribed therein. For emphasis, it may be stated that under the aforementioned Presidential Memorandum, immunity from investigation shall only be accorded the taxpayer when his amnesty tax payment on a yearly basis has been computed in accordance with the rates prescribed under Section 21 of the Tax Code or that of the rates prescribed in the said presidential memorandum, which ever is higher but in no case less than P1,000. It is also informed, that income tax assessments issued after September 17, 1980, may be the subject of tax amnesty availment. Be guided accordingly . cd i RUBEN B. ANCHETA Acting Commissioner July 28, 1981 REVENUE MEMORANDUM CIRCULAR NO. 26-81 SUBJECT : Memorandum of the President prescribing additional conditions necessary for immunity from investigation of amnesty tax returns filed under Presidential Decree No. 1740, and the amount of amnesty tax payments TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, the Memorandum of the President dated 20 July 1981 is hereby reproduced hereunder: acd "20 July 1981 "MEMORANDUM TO The Commissioner of Internal Revenue "SUBJECT : PROHIBITION FROM INVESTIGATION OF AMNESTY TAX RETURNS UNDER PRESIDENTIAL DECREE NO. 1740 UNDER CERTAIN CONDITIONS AND SUBJECT TO CERTAIN EXCEPTIONS "WHEREAS, the Commissioner of Internal Revenue or his duly authorized representative has been prohibited from conducting an investigation of the amnesty tax returns filed under Presidential Decree No. 1740; "WHEREAS, such prohibition if made absolute and unconditional may be unduly taken advantage of by unscrupulous individuals by filing amnesty tax returns and paying minimal or token amounts, in violation of the true intent and purpose of Presidential Decree No. 1740; "WHEREAS, there is a need to clarify the said prohibition so as to prevent sham amnesty availments and thereby achieve the objectives of Presidential Decree No. 1740. "WHEREFORE, the Commissioner of Internal Revenue or his duly authorized representative is hereby prohibited from conducting an investigation on amnesty tax returns filed under Presidential Decree No. 1740, as well as any income tax liability for any of the taxable years 1974 to 1979 for which any of the amnesty tax returns was filed by the taxpayer, except upon lawful order of the Court; provided, however, that such immunity from investigation shall only be accorded the taxpayer under the following conditions: "1. That he has complied with the requirements of Presidential Decree No. 1740 and has paid an amnesty tax computed in accordance with the returns prescribed under the Tax Code; cdt "2. That such amnesty tax shall not be less than the following percentages of the undeclared income and/or overclaimed costs, deductions or exemptions reported in the said returns: "Not exceeding P250,000.00 15% "Exceeding P250,000.00 but not exceeding P500,000.00 20% "Exceeding P500,000.00 but not exceeding P750,000.00 25% "Exceeding P750,000.00 but not exceeding P1,000,000.00 30% "Exceeding P1,000,000.00 35% "3. That the said amnesty tax payment shall in no case be less than P1,000.00 for each taxable year covered by the amnesty return; and "4. That he has filed his Statement of Assets, Liabilities and Networth together with the amnesty tax returns. "Those who have since availed of the tax amnesty but did not comply with the above conditions must file amended amnesty returns that meet the said criteria, together with their Statement of Assets, Liabilities and Networth; otherwise, they will not qualify for the benefits and immunities granted by Presidential Decree No. 1740. "(SGD.) FERDINAND E. MARCOS President of the Philippines" FEATURES OF THE PRESIDENTIAL MEMORANDUM 1. Amnesty tax returns filed by an individual taxpayer under PD 1740, as well as any income tax liability for any of the taxable years 1974 to 1979 for which any of the amnesty tax returns was filed by the taxpayer shall not be subject to investigation provided the following conditions are met and satisfied: (a) That the taxpayer files his Statement of Assets, Liabilities and Networth together with an amnesty tax return which shall either be the regular individual income tax return (BIR Forms 1701 or 1701A) or an amended return (BIR Form 1745) reporting therein his undeclared income and/or overclaimed costs, deductions or exemptions. acd (b) That he must pay as amnesty tax, the correct amount of the income tax as computed in accordance with the National Internal Revenue Code which, however, should not be less than the prescribed percentages of the undeclared income and/or overclaimed costs, deductions, or exemptions enumerated in the aforequoted Memorandum of the President. (c) That in no case shall such amnesty tax payment for any of the taxable years 1974 to 1979 be less than P1,000. aisa dc 2. Taxpayers who have previously filed amnesty tax returns, paid the correct tax thereon, and complied strictly with the requirements prescribed by Presidential Decree No. 1740, need not file any amended return. However, those filing only token amnesty returns before the issuance of the above Presidential memorandum-directive should file an amended amnesty return together with their Statements of Assets, Liabilities and Networth and pay the corresponding amnesty tax in order to qualify for the immunity from investigation granted by law. All internal revenue officers and others concerned are hereby enjoined to be guided accordingly and to give this circular as wide a publicity as possible. cd i RUBEN B. ANCHETA Acting Commissioner