Publishing the Features of Executive Order No. 64, Further Amending Executive Order No. 41, as Amended

November 19, 1986 REVENUE MEMORANDUM CIRCULAR NO. 42-86 SUBJECT : Publishing the Features of Executive Order No. 64, Further Amending Executive Order No. 41, as Amended TO : All Internal Revenue Officers and Others Concerned The Executive Order expanded the coverage of the tax amnesty by including estate and donor's taxes under Title III and the tax on businesses under Chapter II, Title V of the National Internal Revenue Code for the years 1981 to 1985. The business taxes covered are the privilege tax, sales tax, compensating tax and other percentage taxes. Taxpayers who have not yet availed of the tax amnesty under Executive Order No. 41 may avail of the benefits granted under the said Executive Order and Executive Order No. 64 by paying an amnesty tax of 15% of the increase in networth as defined in Executive Order No. 41. Those who have already availed of the tax amnesty under Executive Order No. 41 may avail of the benefits granted under Executive Order No. 64 covering estate, donor's and business taxes by paying an additional 5% on the same increase in networth. Method of availment . (1) For taxpayers who have already availed of Executive Order No. 41 Those who want to avail further of tax amnesty on business, estate and donor's tax liabilities shall file the tax amnesty return under BIR Form No. 187 on which they should (a) indicate the file numbers which were assigned to them at the time of availment of Executive Order No. 41 and (b) declare therein the same amount of increase in networth and (c) pay the additional amnesty tax due thereon at the rate of 5% based on the said increase in networth, or the minimum amount of P4,000 for individuals and P9,000 for corporations, whichever is higher. The return should be marked "Supplemental Tax Amnesty Return" to identify the same as having been filed under Executive Order No. 64. A taxpayer is not, however, precluded from amending his statement of assets and liabilities in order to reflect a higher increase in networth, in which case, the tax return shall be marked "Amended Tax Amnesty Return." In the latter case, the total amount of tax due on the increased networth shall be diminished by the amount of tax previously paid under Executive Orders 41 or 53. For this purpose, the amended sworn statement of assets, liabilities and networth and photocopies of the Confirmation Receipts/Payment Order or Revenue Official Receipt shall be attached to the amended return. (2) For those who have not yet availed of any tax amnesty . - Taxpayers who have not yet availed of the benefits granted under Executive Order No. 41 who now want to avail of both the benefits under Executive Order No. 41 and Executive Order No. 64 shall file a tax amnesty return under BIR Form No. 187, together with the required attachments, and compute the tax at the rate of 15% on the increase in networth to be declared therein. However, the amount of amnesty tax may not be lower than the amount of P9,000 in the case of individuals and 19,000 in the case of corporations. casia Taxpayers may still avail of the benefits of income tax amnesty under Executive Order No. 41 by paying 10% of the increase in networth. However, taxpayers desiring to avail of the benefits for business, estate and donor's taxes can only do so by paying 15% of the increase in networth or the minimum amount of P9,000 or P19,000, as the case may be. All Internal Revenue officials, employees, and others concerned are hereby enjoined to give this Revenue Memorandum Circular the widest publicity possible. (Sgd.) BIENVENIDO A. TAN, JR. Commissioner