Limiting the Substantiation Requirements in Determining the Capital Gains on Stock Transactions
Letter of Instructions No. 1133, issued by President Ferdinand E. Marcos on May 21, 1981, aims to promote economic growth by simplifying the capital gains tax process for stock transactions. The Bureau of Internal Revenue is directed to only consider the selling price, acquisition cost, and allowable deductible expenses when assessing capital gains tax, without investigating the sources of funds used for purchasing stocks. Any violation of this directive by Bureau officials can lead to removal or suspension. This policy is effective immediately to encourage increased stock market activity.
Law Information
- Reference Number
- Letter of Instructions No. 1133
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Letters of Instructions
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
May 21, 1981
LETTER OF INSTRUCTIONS NO. 1133
| TO | : | The Minister of Finance |
| The Commissioner of Internal Revenue | ||
| SUBJECT | : | Limiting the Substantiation Requirements in Determining the Capital Gains on Stock Transactions |
WHEREAS, greater volume of stock transactions complement the development and growth of our economy;
WHEREAS, it is necessary to encourage stock transactions to generate greater economic activity; cdt
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by law, do hereby order that for purposes of imposing the capital gains tax realized from stock transactions, only the selling price, acquisition cost and the allowable deductible expenses shall be looked into by the Bureau of Internal Revenue in the verification of tax returns. In no case shall the Bureau inquire into the sourcing of funds used in acquisition of stocks listed in the stock exchanges. Violation of these instructions by any officer or employee of the Bureau shall be subject removal or suspension from office.
This Letter of Instructions shall take effect immediately.
DONE in the City of Manila, this 21st day of May, in the year of Our Lord, Nineteen Hundred and Eighty-One. cd i
Cite This Law
Limiting the Substantiation Requirements in Determining the Capital Gains on Stock Transactions, Letter of Instructions No. 1133, May 21, 1981 (Philippines)
Limiting the Substantiation Requirements in Determining the Capital Gains on Stock Transactions, Letter of Instructions No. 1133 (Phil. 1981)
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