Granting Amnesty to Persons who are Required by Law to File Income Tax Returns but had Failed to Do so, Subject to Certain Conditions

June 25, 1973 REVENUE MEMORANDUM CIRCULAR NO. 33-73 SUBJECT : Granting Amnesty to Persons who are Required by Law to File Income Tax Returns but had Failed to Do so, Subject to Certain Conditions TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all those concerned, there is hereby quoted hereunder the provisions of Presidential Decree No. 213, the subject matter of which is "Granting Amnesty to persons who are required by law to file income tax returns but had failed to do so, subject to certain conditions." MALACAANG Manila PRESIDENTIAL DECREE No. 213 GRANTING AMNESTY TO PERSONS WHO ARE REQUIRED BY LAW TO FILE INCOME TAX RETURNS BUT HAD FAILED TO DO SO, SUBJECT TO CERTAIN CONDITIONS. "WHEREAS, the actual number of income tax filers for the calendar year 1972 is about one and a half million only as shown by the records of the Bureau of Internal Revenue; "WHEREAS, statistics on the number of wage earners, registered owners of real property, motor vehicles and shares of stock of corporations, professionals, persons who have travelled abroad as well as on taxable transactions indicate that the number of income tax filers for the calendar year 1972 should be about four million; and "WHEREAS, the difference between the estimated and the actual number of income tax filers is attributable to the lack of information on the requirement to file an income tax return especially as regards those cases where it is mandatory to file an income tax return even if no gross income was realized in the preceding year. "NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, whereby I have assumed direction of the operation of the entire Government, do hereby decree, consistent with the declared policy of the Government to give taxpayers a chance to reform and be a part of the New Society, that: 1. Any person who is not liable to pay an income tax but is nevertheless required by law to file an income tax return as enumerated below, and who failed to do so, may now voluntarily file the return or returns and pay TEN PESOS for each year that no such return was filed, to wit: "Every (1) Filipino citizen, whether residing in the Philippines or abroad; or (2) resident alien, or (3) non-resident alien engaged in trade or business in the Philippines, shall file an income tax return if he falls under any of the following categories, regardless of whether he derives any income or not for the taxable year if, during that taxable year, he "(1) Is an official or employee of the Government or has a contract with the Government of the Republic of the Philippines, or any of its agencies or instrumentalities, including government-owned or controlled corporations, regardless of the nature of his appointment or duration of his employment; "(2) Is a professional; "(3) Is a registered or beneficial owner or mortgagee of any real property; "(4) Is a registered or beneficial owner, or mortgagee of any motor vehicle; "(5) Is a registered or beneficial owner, or mortgagee of any share of stock or security of a corporation, or any interest in a firm or partnership; "(6) Has travelled abroad, except children below eighteen years of age; "(7) Has filed a certificate of candidacy for any public office except barrio officials and municipal councilors; "(8) Is engaged in trade or commerce. "2. Any person liable to pay an income tax who failed to file the corresponding income tax return and pay the tax due thereon, may now voluntarily file the said return or returns exempt from any liability or increments incident to the non-filing of the return or non-payment of the tax due thereon, provided he pays TEN PESOS for each year that no return was filed plus an amount equal to twenty-per centum of the tax due on the return or returns voluntarily filed. "3. The amount or amounts payable, as provided above, must be paid in full upon filing of the income tax return or returns which shall not be later than October 31, 1973, and such payment shall entitle the person making the return to all the immunities provided in Presidential Decree No. 23, as amended. "4. Persons who availed of the amnesty provided under Presidential Decree No. 23, as amended, or those who availed or may avail of the amnesty under Presidential Decree No. 201 are not subject to this Decree. "5. The Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue, shall promulgate the rules and regulations to implement this Decree. "DONE in the City of Manila this 16th day of June, in the year of Our Lord, nineteen hundred and seventy-three. (SGD.) FERDINAND E. MARCOS President of the Philippines By the President: (SGD.) ROBERTO V. REYES Assistant Executive Secretary All those concerned are hereby instructed to study the provisions of the said circular and disseminate the information to the public regarding their liability to file income tax returns. Pending the receipt of the procedure to be followed in implementing the provisions of the said Presidential Decree which is now being prepared by a committee in the National Office, contact should be made with the Offices of the Register of Deeds, Bureau of Transportation, Bureau of Commerce and Industry, and such other offices who may have information or data on citizens and residents who are liable to file returns with or without income as provided for in the Presidential Decree. Regional Directors are hereby enjoined to submit not later than five days from the receipt hereof an outline on how the program should be conducted in their respective regions. All those concerned are hereby enjoined to comply strictly with this circular. aisa dc MISAEL P. VERA Commissioner of Internal Revenue ANNEX Tanggapan Pangulo ng Pilipinas (OFFICE OF THE PRESIDENT OF THE PHILIPPINES) Manila, June 19, 1973 Sir: I have the honor to enclose, for your information and appropriate action, as certified copy of Presidential Decree No. 213 dated June 16, 1973, entitled "GRANTING AMNESTY TO PERSONS WHO ARE REQUIRED BY LAW TO FILE INCOME TAX RETURNS BUT HAD FAILED TO DO SO, SUBJECT TO CERTAIN CONDITIONS." It is understood that this Presidential Decree shall immediately be disseminated to all concerned. Very truly yours, For the Executive Secretary: MELQUIADES T. DE LA CRUZ Presidential Records Officer Honorable Misael Vera Commissioner of Internal Revenue Manila