Presidential Decree No. 174

April 25, 1973 REVENUE REGULATIONS NO. 04-73 SUBJECT : Presidential Decree No. 174 dated April 12, 1973 providing for the filing of Amnesty Tax Returns under Pres id ential Decree No. 23, as amended, beyond April 2, 1973, under certain conditions TO : All Internal Revenue Officers and Others Concerned Pursuant to paragraph (b) of Presidential Decree No. 174 regarding the inability of Filipinos residing abroad to avail themselves of the Tax Amnesty under Presidential Decree No. 23, as amended, due to reasons and causes beyond their control and granting them extension of time to file Tax Amnesty Returns up to May 31, 1973, the following rules and regulations are hereby promulgated: SECTION 1. Scope . These regulations shall cover all cases of voluntary disclosures of previously untaxed income and/or wealth such as earnings, gifts bequests or any acquisitions from any source whatsoever which are taxable under the National Internal Revenue Code, as amended, realized abroad by all Filipinos residing therein. SECTION 2. For the purpose of determining the basis of the imposition of the 10% Amnesty Tax on the untaxed income and/or wealth of Filipinos residing abroad, the following procedure is hereby prescribed: (a) The untaxed income and/or wealth shall consist of the excess over $13,000 of the net taxable income declared every year in the United States or in any foreign country where the Filipino is a resident. The 10% Amnesty Tax under Presidential Decree No. 23 shall be levied on the total excess over P13,000 multiplied by the number of years the Filipino has not filed Philippine income tax return. The following example shall show how the 10% Amnesty Tax shall be applied: Net taxable income per US return or return in any foreign country for 1971 $16,000 1970 15,000 1969 14,000 1968 13,000 Total unreported income $58,000 Less: Imputed exempt income and tax credits: $13,000 every year 52,000 Total taxable excess $6,000 Amnesty tax: 10% on $6,000 $ 600 ====== (b) Those Filipinos residing abroad with a net taxable income of less than $13,000 may avail of the Tax Amnesty by the payment of $10 per year. SECTION 3. Forms to be Used . The forms to be used in reporting the untaxed income and/or wealth shall be B.I.R. Form No. 1745 for individuals and B.I.R. Form No. 1746 for corporations. The amnesty provided for under Presidential Decree No. 23 is quoted hereunder: cdt "1. In all cases of voluntary disclosures of previously untaxed income and/or wealth such as earnings, receipts, gifts bequests or any other acquisitions from any source whatsoever which are taxable under the National Internal Revenue Code, as amended, realized here or abroad by any taxpayer, natural or juridical; the collection of all internal revenue taxes including the increments or penalties or accounts of non-payment as well as all civil, criminal or administrative liabilities arising from or incident to such disclosures under the National Internal Revenue Code, the Revised Penal Code, the Anti-Graft and Corrupt Practices Act, the Revised Administrative Code, the Civil Service laws and regulations, laws and regulations on Immigration and Deportation, are hereby condoned and, in lieu thereof, a tax of ten (10%) per centum on such previously untaxed income or wealth is hereby imposed. aisa dc SECTION 4. Effectivity . These regulations shall take effect immediately. CESAR VIRATA Secretary of Finance Recommended by: MISAEL P. VERA Commissioner of Internal Revenue