Presidential Decree No. 213

August 13, 1973 REVENUE REGULATIONS NO. 07-73 SUBJECT : Pre sidenti al Decree No. 213 dated June 16, 1973 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 Pursuant to Paragraph 5 of Presidential Decree No. 213, the following rules and regulations are hereby promulgated and shall be known as "REGULATIONS IMPLEMENTING PRESIDENTIAL DECREE NO. 213". SECTION 1. Scope . These regulations shall cover all cases of voluntary filing of income tax returns for the year 1972 and prior years (a) by any person who is not liable to pay an income tax but is nevertheless required by law to file an income tax return and who failed to do so; and (b) by any person liable to pay an income tax who failed to file the corresponding income tax return and pay the tax due thereon. SECTION 2. Definition . The word "person" as used in Presidential Decree No. 213 means an "individual" and does not include a trust, estate, corporation, or a duly registered general copartnership which are included in the definition of the term "person" in Section 84(a) of the National Internal Revenue Code. SECTION 3. Who may avail of Presidential Decree No . 213 . Only persons who did not avail of the amnesty provided under Presidential Decree Nos. 23, as amended, and 157 or those who did not avail of the amnesty under Presidential Decree No. 201, may avail of the amnesty prescribed by Presidential Decree No. 213. SECTION 4. Persons not liable to pay income tax but are required by law to file an income tax return . Every Filipino citizen, (1) whether residing in the Philippines or abroad; or (2) resident alien, or (3) non-resident alien engaged in trade or business in the Philippines, falling under any of the following categories, regardless of whether he derives any income or not for the taxable year shall file an income tax return 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 the 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. For purposes of this section, an individual is deemed a professional if, during the taxable year, he passes any government examination for the practice of a profession given by a board of examiners or by the Supreme Court, or remains a registered member of any profession covered by such examination, regardless of whether or not, during that taxable year, he actually practices his profession. SECTION 5. Conditions to grant of amnesty . The following conditions must be complied with by those availing and are qualified to avail of the amnesty: a. Those who are not liable to pay income tax but required by law to file an income tax return as indicated in Section 4 hereof and failed to do so must voluntarily file a return for each year that no return was filed and must pay ten pesos, for each year of non-filing. b. Those liable to pay an income tax but failed to file the corresponding income tax return and pay the tax due thereon, must likewise file voluntarily a return for each year that no return was filed and pay ten pesos (P10.00) for each year of non-filing and an amount equal to 20% of the tax due on the return or returns filed. Example: Income tax returns filed for 1969, 1970, 1971 and 1972 P10.00 for each year P40.00 Basic tax due per return 1969 P150.00 1970 170.00 1971 200.00 1972 300.00 Total basic tax due per returns P920.00 Tax representing 20% thereof 184.00 Total amnesty tax to be paid upon filing of returns P224.00 c. The return or returns shall be filed and the amounts representing the amnesty tax shall be paid in full upon filing of the return or returns on or before October 31, 1973. SECTION 6. Forms of returns to be accomplished and filed . a. B.I.R. Form 1701 and 1701A. b. B.I.R. Form 1701G (summary statement that should be attached to the individual income tax returns filed by the taxpayer). SECTION 7. Where to file . The returns and summary statements in duplicate may be filed with the Commissioner of Internal Revenue, regional director, revenue district officer, collection agent, or municipal treasurer who is duly deputized to act as collection agent at the taxpayer's choice. SECTION 8. Extent of the Amnesty . Any person who avails of the tax amnesty granted under the Presidential Decree No. 213 shall not be subject to any investigation whether civil, criminal or administrative as to any liability under the National Internal Revenue Code, as amended, the Revised Penal Code, the Anti-Graft and Corrupt Practices Act, the Revised Administrative Code, the Civil Service Law, the Immigration and Deportation Law or any other law or proclamation, arising from or incident to his failure to file his income tax return and to pay the tax due thereon, as well as to any liability for any other tax that may be due as a result of business transactions from which such income now voluntarily declared may have been derived. SECTION 9. Effect of non-compliance with conditions . Failure to comply with any of the conditions and requirements set forth in these regulations shall nullify the immunities and benefits specified in the preceding paragraph 8 of these regulations. SECTION 10. Treatment and Disposition of Income Tax Returns . a. All income tax returns filed in pursuance of Presidential Decree No. 213 shall be kept confidential and shall not be subject to verification. Such returns shall be kept in secret file in the Bureau of Internal Revenue. Section 81 of the National Internal Revenue Code, as amended providing for the disposition of income tax returns and publication of list shall not apply to the aforesaid returns. b. Returns filed as well as payments made pursuant to these regulations shall not be examined, inquired or looked into by any person, government official, bureau or office. Any government official or employee who would inquire, question or attempt to inquire into the return filed by any taxpayer pursuant to these regulations shall be guilty of grave misconduct for which he will be summarily dismissed from the service. Disclosure of any information relating to the return shall subject the offender to an imprisonment of not more than five years. SECTION 11. Effectivity . These regulations take effect immediately. aisa dc CESAR VIRATA Secretary of Finance Recommended by: MISAEL P. VERA Commissioner of Internal Revenue