A PROPOSAL: AN ACT GRANTING TAX AMNESTY ON ALL UNPAID INTERNAL REVENUE AND LOCAL TAX LIABILITIES FOR TAXABLE PERIOD DECEMBER 31, 2017 AND PRIOR YEARS
THE TAX AMNESTY ACT OF 2018
AND ITS IMPLEMENTING RULES AND REGULATIONS
REPUBLIC ACT NO. _______
RULE I
TITLE, PURPOSE AND INTERPRETATION
SECTION 1. Title. This act shall be known and cited as “The Tax Amnesty Act of 2017 and its Implementing Rules and Regulations.”
SECTION 2. Purpose. It is the policy direction of this Republic that the rule of taxation shall be uniform, equitable and progressive. Furthermore, to raise the needed cash and reduce the administrative costs of collecting revenues for the Government of the Republic of the Philippines, on one hand and curb the graft and corruption associated therefrom and give the taxpayers a fresh and clean start, on the other hand, shall be the main focus of this Act. For this purpose, this Act shall govern the guidelines and procedures in availing its immunities and privileges.
SECTION 3. Interpretation. In the interpretation of the provisions of this Act, the following rules shall apply:
Any provision of this Act shall be liberally interpreted in favour of the taxpayer who availed its immunities and privileges.
In case of doubt, any provision of this Act shall be construed strictly against the Government of the Republic of the Philippines, and liberally in favour of the taxpayer.
In the resolution of controversies arising under this Act where no legal provision or jurisprudence applies, resort may be had to the customs and traditions.
The term ‘taxpayer’ shall refer to a person who is liable to pay the tax, license, fee, surcharge, interest and penalty.
RULE II
COVERAGE
SECTION 1. Coverage. The tax amnesty shall apply to all national internal revenue and local tax liabilities for the taxable period December 31, 2015 and prior years with or without assessments duly issued therefore, that have remained unpaid as of December 31, 2016; Provided, however, That the amnesty hereby authorised and granted shall not cover the exceptions mentioned in this Act.
The term ‘taxable period’ shall refer to the calendar year. For purposes of complying with this Act, the Taxable Year 2015 shall include all taxable years which end in any month of the year 2015, whether calendar year or fiscal year. This means that for fiscal basis taxpayers, the Balance Sheet files as of the end of any month in the year 2015 except December shall be deemed for the taxable period ending December 31, 2015.
The term ‘national internal revenue and local tax liabilities’ shall refer to the
Taxes, fees, surcharges, interests and penalties being assessed and collected by the Bureau of Internal Revenue such as, but not limited to, income tax, value added tax, estate tax, donor tax, percentage tax, capital gains tax, expanded withholding tax, final withholding tax, withholding tax on compensation, fringe benefit tax, improperly accumulated earnings tax, dividend tax, documentary stamp tax, excise tax and other related taxes
Taxes, fees, surcharges, interests and penalties being assessed and collected by the Bureau of Customs (BOC) such as, but not limited to, import tax, import duty and other related taxes.
Taxes, permits, fees, surcharges, interests and penalties being assessed and collected by any Local Government Units including the Barangays (LGU) such as, but not limited to, business permits, local taxes, license fees, community tax, real property tax, certification fees and other related taxes.
Taxes, permits, fees, surcharges, interests and penalties being assessed and collected by the Land Transportation Office (LTO).
Taxes, permits, fees, surcharges, interests and penalties being assessed and collected by the Land Transportation and Franchising Regulatory Board (LTFRB).
Taxes, permits, fees, surcharges, interests and penalties being assessed and collected by the Securities and Exchange Commission (SEC).
Taxes, permits, fees, surcharges, interests and penalties being assessed and collected by the Philippine Economic Zone Authority (PEZA).
Taxes, permits, fees, surcharges, interests and penalties being assessed and collected by the Department of Trade and Industry (DTI).
Taxes, permits, fees, surcharges, interests and penalties being assessed and collected by the Board of Investments (BOI).
Surcharges, interests and penalties being assessed and collected by the Land Registration Authority (LRA).
Surcharges, interests and penalties being assessed and collected by the Registry of Deeds (RD).
Surcharges, interests and penalties being assessed and collected by the Social Security System (SSS).
Surcharges, interests and penalties being assessed and collected by the Philippine Health Insurance Corporation (PHIC).
Surcharges, interests and penalties being assessed and collected by the Home Development Mutual Fund (HDMF).
Surcharges, interests and penalties being assessed and collected by the Government Service Insurance System (GSIS).
The term ‘assessments’ shall refer to the amount of taxes, fees, permits, surcharges, interests, penalties and other charges shown in the
letters, notices and communications issued by the Bureau of Internal Revenue such as Letter Notice, Benchmarking Notice, Preliminary Assessment Notice, Formal Letter of Demand, Final Assessment Notice, Preliminary Collection Letter, Final Collection Letter, Final Notice Before Seizure, Warrant of Garnishment, Warrant of Distraint and Levy and other related correspondences
letters, notices and communications issued by the Local Government Units including the Barangays
letters, notices and communications issued by the Land Transportation Office
letters, notices and communications issued by the Land Transportation and Franchising Regulatory Board
letters, notices and communications issued by the Securities and Exchange Commission
letters, notices and communications issued by the Philippine Economic Zone Authority
letters, notices and communications issued by the Department of Trade and Industry
letters, notices and communications issued by the Board of Investments
letter, notices and communications issued by the Land Registration Authority
letters, notices and communications issued by the Registry of Deeds
letters, notices and communications issued by the Social Security System
letters, notices and communications issued by the Philippine Health Insurance Corporation
letters, notices and communications issued by the Home Development Mutual Fund
letters, notices and communications issued by the Government Service Insurance System
SECTION 2. Scope. The tax amnesty is for the taxable period December 31, 2015 and prior years.
SECTION 3. Conditions. Any person who wishes to avail himself of the benefits of this Act shall file in quadruplicate a Tax Amnesty Return, accompanied by Statement of Assets, Liabilities and Networth (SALN), together with the schedules required by this Act, as of December 31, 2015. The schedules for Cash on Hand and in Bank, Receivables from Customers, Suppliers, Employees, Relatives, Government Agencies and Other Persons, Inventory of Merchandise for Resale, Raw Material, Work in-Process and Finished Products, Assets Classified as Regular Asset, Assets Classified as Capital Asset, Investments in Shares of Stock, Payables to Customers, Suppliers, Employees, Relatives, Government Agencies and Other Persons, and Loans from Banks and Financial Institutions shall support the facts and figures shown in the SALN. For uniformity and to establish a relevant evidence to be used in the networth method of audit-investigation, the SALN and the schedules required under this Act shall form part of the taxpayer’s annual income tax return for the taxable period ending December 31, 2016 and the periods thereafter. For this purpose, the BIR shall allow a taxpayer to amend, modify and change his filed Balance Sheet into a SALN with the schedules required in this Act without incurring any expense, surcharge or penalty therefor. The SALN does not need to be reviewed and certified by an independent Certified Public Accountant. Neither any revenue officer or government agencies mentioned in this Act shall represent, prepare the requirements of this Act for and on behalf of and compute the amnesty tax due to a taxpayer.
The term ‘person or taxpayer’ shall refer to an individual including those who at the time of this Act becomes effective are under the legal age, whether resident or non-resident, whether citizen or alien, a trust, estate, corporation, cooperative, co-ownership, partnership, joint-venture, regional headquarter, regional operating headquarter, Philippine branch, non-governmental organisation, government owned and controlled corporation, government instrumentalities and agencies, church and other religious organisation, whether registered or not with the BIR and other juridical entity not elsewhere classified.
The term ‘networth’ shall refer to the total assets less total liabilities.
The term ‘assets’ shall refer to the goods or properties, whether tangible or intangible, or within or without the jurisdiction of the Republic of the Philippines.
The term ‘regular asset’ shall refer to the land, building, automobiles and other property used directly and indirectly by the taxpayer to the development, operations and management of his trade, business or in the practice of his profession.
The term ‘capital asset’ shall refer to the land, building, automobiles, jewelries and precious stones and metals, and other property held by the taxpayer, but does not include stock in trade of the taxpayer or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year, or property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business, or property used in the trade or business, of a character which is subject to the allowance for depreciation.
The term ‘liabilities’ shall refer to all existing liabilities which are legitimate and enforceable, secured or unsecured, whether or not incurred in trade or business.
SECTION . Exceptions. The immunities and privileges set forth in this Act shall not apply to the following cases, insofar as the national internal revenue and local tax liabilities are concerned:
Those with pending cases falling under the jurisdiction of the Presidential Commission on Good Government; and
Civil and criminal cases subject of final and executory judgement by the competent court.
SECTION 5. Duration. This Act shall be valid and enforceable for one hundred eighty (180) days from the date of its effectivity and no further extension shall be allowed or granted thereafter. The Tax Amnesty Return filed after the said date shall not be covered by the immunities and privileges of this Act
RULE III
IMMUNITIES AND PRIVILEGES
SECTION 1. Immunities and Privileges. Those who availed themselves of the tax amnesty and have fully complied with all its conditions shall be entitled to the following immunities and privileges:
The taxpayer shall be immune from the payment of national internal revenue and local taxes, as well as addition thereto, and the appurtenant civil, criminal or administrative penalties under the National Internal Revenue Code of 1997, as amended, and other related laws arising from the failure to pay any and all internal revenue taxes, including the laws being administered and implemented by the government agencies mentioned in this Act, for taxable period December 31, 2015 and prior years.
The taxpayer’s Tax Amnesty Return and Statement of Assets, Liabilities and Networth (SALN), together with the schedules required by this Act, as of December 31, 2015 shall not be admissible as evidence in all civil, criminal, administrative, and court proceedings that pertain to taxable period December 31, 2015 and prior years , insofar as such proceedings relate to the national internal revenue and local tax liabilities and their assessments, before judicial, quasi-judicial or administrative bodies in which he is a defendant or respondent, and except for the purpose of ascertaining the networth beginning January 01, 2016, the same shall not be examined, inquired or looked into by any revenue officer or government agencies mentioned in this Act. However, the taxpayer may use them as defense, whenever appropriate, in cases that are brought against him.
The books of accounts and other accounting records of the taxpayer for the years covered by the tax amnesty availed of shall not be examined and any revenue officer or government agencies mentioned in this Act is barred from examining his books of accounts and other accounting records in order to verify the validity or correctness of a claim for any tax refund, tax credit, tax incentives, and/or exemptions under existing laws, whether or not these cases are pending with the Bureau of Internal Revenue, One Stop Shop of the Department of Finance, Bureau of Customs, government agencies mentioned in this Act and with any competent court; or for the purpose of checking or validating his customers’ or suppliers’ compliance with the Philippine laws.
Businesses establishment of a taxpayer which was duly closed down shall be allowed to be re-opened without getting a written consent form any revenue officer or government agencies mentioned in this Act. Thus, the lifting of the closure order is no longer necessary.
Deficiency and delinquent taxes, fees, surcharges, interests and penalties collectible from a taxpayer by the government agencies mentioned in this Act shall automatically be cancelled and any letter, notice or communication issued for these taxes, fees, surcharges, interests and penalties shall be considered unenforceable, invalid and without legal value and effect.
Goods and properties being held or escrowed for the payment of deficiency and delinquent taxes, import duties and taxes, fees, surcharges, interests and penalties shall be released to the taxpayer who availed the immunities and privileges of this Act within five (5) days from receipt of his request.
For open cases, the tax returns, reports, statements and schedules that are not yet filed shall no longer be needed to be filed after a taxpayer availed himself of the benefits of this Act. The government agencies mentioned in this Act shall update all their files and computer records so as not to bring inconvenience to a taxpayer who availed the immunities and privileges of this Act.
For estate taxpayer, the real properties, shares of stock and other assets of a deceased taxpayer shall be allowed to be transferred to the rightful heir without incurring an additional cost in doing so. The government agencies mentioned in this Act shall course the transfer of these properties to the rightful heir whose estate had availed the immunities and privileges of this Act within five (5) days from receipt of his request.
An unregistered taxpayer who availed the immunities and privileges of this Act shall be permitted to register his business name and operation to any government agencies without incurring an additional cost in doing so.
The Tax Clearance Certificate, for whatever legal purpose might be, shall be released to a taxpayer who availed the immunities and privileges of this Act within five (5) days from receipt of his request.
The real properties and improvements thereon that are under the name of a dummy-person or person that does not exist; claimed to be owned and in the control and possession of the taxpayer who availed the immunities and privileges of this Act shall automatically transferred to him upon his presentment of clear and convincing evidences that he, indeed, is the owner thereof.
The pending Warrant of Garnishment and/or Distraint and Levy shall automatically set aside and the bank concerned shall return the subject properties and cash to the taxpayer who availed the immunities and privileges of this Act without the need of demand or notice.
All civil and criminal and administrative cases of a taxpayer who availed the immunities and privileges of this Act pending in any court, government agencies mentioned in this Act, and other quasi-judicial bodies shall automatically be dismissed and terminated within five (5) days from receipt of his request.
Without the need of a written consent from any revenue officer or the government agencies mentioned in this Act, the books of accounts and other accounting records of a taxpayer who availed the immunities and privileges of this Act covering the taxable period December 31, 2015 and prior years may be disposed off after the lapse of 365 days from the last day of filing the documents required by this Act.
SECTION 2. Grant of Immunities and Privileges. Any person may avail himself of the benefits of tax this Act by way of faithfully complying with the documentary requirements and procedural due process provided by this Act.
SECTION 3. Tax Amnesty Rates. The tax amnesty due, which shall be based on the increase of the taxpayer’s networth as of December 31, 2015, as declared in his SALN, shall be computed as follows:
The term ‘increase in the taxpayer’s networth’ shall refer to the amount of networth shown in the SALN less the amount of networth shown in the duly filed SALN/balance sheet as of December 31, 2015.
Illustration for basis of computing the tax amnesty and tax rates prescribed therefor
For those qualified taxpayers who have no previously filed statements of assets and liabilities/balance sheet as of December 31, 2015, the tax amnesty payment shall be computed based on higher amount between the five percent (5%) of the networth as of December 31, 2015 (including fiscal year ending in any month of 2015) as declared in the SALN and the minimum amnesty payments as presented in this Act.
For those qualified taxpayers who have filed with BIR’s authorized agents their SALN/balance sheet together with their income tax returns for taxable year 2015 and who desire to avail of the tax amnesty, they shall amend their previously filed statements by including still undeclared assets and/or liabilities and pay an amnesty tax equal to five percent (5%) based on the resulting increase in the networth or the minimum amount prescribed by the this Act for each category of taxpayer, whichever is higher.
RULE IV
FORMS AND DOCUMENTARY REQUIREMENTS
SECTION 1. Forms. A person or taxpayer who wishes to availed himself of the immunities and privileges provided under this Act shall duly accomplish, in accordance with the provision of Section 267, National Internal Revenue Code, as amended, the following legal forms:
Tax Amnesty Form (TAF)
Statement of Assets, Liabilities and Networth (SALN)
Schedule of Cash on Hand and in Bank
Schedule of Receivables from Customers, Suppliers, Employees, Relatives, Government Agencies and Other Persons
Schedule of Inventory of Merchandise for Resale, Raw Material, Work in-Process and Finished Products
Schedule of Land
Schedule of Depreciable Property
Schedule of Investments in Shares of Stock
Schedule of Payables to Customers, Suppliers, Employees, Relatives, Government Agencies and Other Persons
Schedule of Loans from Banks and Financial Institutions
SECTION 2. Contents. The Tax Amnesty Form, SALN and the schedules required by this Act shall contain the basic information of an existing BIR Form or tax return.
Tax Amnesty Form (TAF). It shall be known as BIR Form No. 1710 and shall contain the following information:
Part 2
Part 3
Schedule of Amnesty Tax Rates
Statement of Assets, Liabilities and Networth (SALN). It shall be known as BIR Form No. 1711 and contains the following information:
Part 2
Schedule of Cash on Hand and in Bank. It shall be known as BIR Form No. 1712 and shall contain the following information:
Part 2
Schedule of Receivables from Customers, Suppliers, Employees, Relatives, Government Agencies and Other Persons. It shall be known as BIR Form No. 1713 and shall contain the following information:
Part 2
Schedule of Inventory of Merchandise for Resale, Raw Material, Work in-Process and Finished Products. It shall be known as BIR Form No. 1714 and shall contain the following information:
Part 2
Schedule of Land. It shall be known as BIR Form No. 1715 and shall contain the following information:
Part 2
Schedule of Depreciable Property. It shall be known as BIR Form No. 1716 and shall contain the following information:
Part 2
Schedule of Investments in Shares of Stock. It shall be known as BIR Form No. 1717 and shall contain the following information:
Part 2
Schedule of Payables to Customers, Suppliers, Employees, Relatives, Government Agencies and Other Persons. It shall be known as BIR Form No. 1718 and shall contain the following information:
Part 2
Schedule of Loans from Banks and Financial Institutions. It shall be known as BIR Form No. 1719 and shall contain the following information:
Part 2
SECTION 3. Valuation of Assets and Liabilities. For the purposes of this Act, the value or amount to be used for each type of assets and liabilities shall be as follows;
SECTION 3. Presumption of Correctness of the SALN- The SALN, together with the schedules required by this Act, as of December 31, 2015 filed by a taxpayer desiring to avail of the tax amnesty shall be presumed true and correct, except in the following cases:
Where the amount of the declared networth is understated to the extent of thirty percent (30%) or more as may be established in proceedings initiated within three hundred sixty five (365) days following the last day of filing of the Tax Amnesty Return and the SALN, by, or at the instance of parties other than the BIR with sufficient evidence, that the amount of the declared networth is understated to the extent of thirty percent (30%) or more
When findings of or admission in congressional hearings or proceedings in administrative agencies of the government, and in courts, prove that there is at least thirty percent (30%) underdeclaration.
RULE V
PROCEDURES FOR AVAILMENT
SECTION 1. Procedures for Availment of the Immunities and Privileges. A person or taxpayer who would wish to avail of the immunities and privileges of this Act shall follow these procedures:
A taxpayer who wishes to avail the immunities and privileges of this Act shall register first as an eFPS filer. The BIR shall automatically approve his application for registration within twenty four (24) hours from the presentment of the required documents.
Accomplish the following forms in four (4) copies:
BIR Form No. 1710 - Tax Amnesty Form (TAF)
BIR Form No. 1711 - Statement of Assets, Liabilities and Networth (SALN)
BIR Form No. 1712 - Schedule of Cash on Hand and in Bank
BIR Form No. 1713 - Schedule of Receivables from Customers, Suppliers, Employees, Relatives, Government Agencies and Other Persons
BIR Form No. 1714 - Schedule of Inventory of Merchandise for Resale, Raw Material, Work in-Process and Finished Products
BIR Form No. 1715 - Schedule of Land
BIR Form No. 1716 - Schedule of Depreciable Property
BIR Form No. 1717 - Schedule of Investments in Shares of Stock
BIR Form No. 1718 - Schedule of Payables to Customers, Suppliers, Employees, Relatives, Government Agencies and Other Persons
BIR Form No. 1718 - Schedule of Loans from Banks and Financial Institutions
These BIR Forms shall be available for use of the taxpayers within fifteen (15) days from the effectivity of this Act.
The Tax Amnesty Return shall be filed using the eFPS facility of the BIR. After the Tax Amnesty Return was successfully filed, the Tax Amnesty Return together with the BIR generated confirmation notice shall be printed in four (4) copies.
The payment of the tax due shown in the Tax Amnesty Return shall be made to a bank where the taxpayer is enrolled. After the payment of the amnesty tax due was made, the receipt or confirmation notice issued by his bank shall be printed in four (4) copies.
The bank’s receipt or confirmation notice, BIR Form No. 1711 - Statement of Assets, Liabilities and Networth (SALN), BIR Form No. 1712 - Schedule of Cash on Hand and in Bank, BIR Form No. 1713 - Schedule of Receivables from Customers, Suppliers, Employees, Relatives, Government Agencies and Other Persons, BIR Form No. 1714 - Schedule of Inventory of Merchandise for Resale, Raw Material, Work in-Process and Finished Products, BIR Form No. 1715 - Schedule of Land, BIR Form No. 1716 - Schedule of Depreciable Property, BIR Form No. 1717 - Schedule of Investments in Shares of Stock, BIR Form No. 1718 - Schedule of Payables to Customers, Suppliers, Employees, Relatives, Government Agencies and Other Persons, and BIR Form No. 1718 - Schedule of Loans from Banks and Financial Institutions shall be attached to the duly printed Tax Amnesty Return and its corresponding confirmation notice.
The Tax Amnesty Return, together with its attachments, shall be filed as follows:
Residents shall file with the Revenue District Office (RDO)/Large Taxpayer District Office (LTDO) of the BIR which has jurisdiction over the legal residence or principal place of business/employment of the taxpayer, as the case may be.
Non-residents shall file with the Office of the Commissioner of the BIR, or with any RDO.
The revenue officer assigned to receive the Tax Amnesty Return, together with its attachments, shall stamp the official ‘receiving emblem’ of his office and place his complete name, signature, date and time of receipt on its face and on the BIR Forms attached it. Failure to do so shall be a ground for the imposition of an administrative sanction.
RULE VI
OFFENSES AND PENALTIES
SECTION 1. Unlawful Divulgence of Tax Amnesty Return and Statement of Assets, Liabilities and Networth (SALN). – Except as otherwise provided herein and in Section 14 hereof, it shall be unlawful for any person having Knowledge of the Tax Amnesty Return and SALN filed pursuant hereto, to disclose any information relative to such declaration and statement, and any violation hereof shall subject the offender to the penalties under Section 10 (c) of this Act; Provided, however, That the Commissioner of Internal Revenue may disclose the content of the Tax Amnesty Return and the SALN upon the request of Congress pursuant to and in accordance with Section 20 (a) or Section 290 of the National Internal Revenue Code of 1997, as amended.
SECTION 2. Penalty.
Any person who, having filed the documentary requirement required by this Act, willfully understates his networth to the extent of thirty percent (30%) or more shall, upon conviction, be subject to the penalties or perjury under the Revised Penal Code.
The willful failure to declare any Regular Asset in the SALN or the schedules required by this Act shall be a prima facie evidence of fraud and shall constitute a ground upon which attachment of such property may be issued in favour of the Government of the Republic of the Philippines to answer for the satisfaction of any judgment that may be acquired against the declarant.
In addition to the penalties provided in paragraphs (a) and (b) above, an immediate tax fraud investigation shall be conducted and concluded within one hundred eighty (180) days from the date of their discovery to collect all taxes due, including increments, and to criminally prosecute those found to have willfully evaded lawful taxes due. Cash or assets other than cash and that were knowingly excluded in the SALN shall be garnished or distrained and levied, respectively, for and on behalf of the Government of the Republic of the Philippines.
In the case of associations, partnerships, or corporations, the penalty shall be imposed on the partner, president, general manager, branch manager, treasurer, office-in-charge and employees responsible for the violation and the individual or person who signed the Tax Amnesty Return and SALN.
Any person who makes an unlawful divulgence of the Tax Amnesty Return, the SALN or the schedules required by this Act shall be penalized by a fine of not less than fifty thousand pesos (P50,000) and imprisonment of not less than six years but not more than ten (10) years. If the offender is an revenue officer or employee of the government agencies mentioned in this Act, he shall likewise suffer an additional penalty of perpetual disqualification to hold public office to vote and to participate in any public election.
The term “willfully” shall be defined as intentional, with evil intent and legal malice, with consciousness that the alleged perjurious statement is false with the intent that it should be received as a statement of what was true in fact. It is equivalent to knowingly.
RULE VII
FINAL PROVISION
SECTION 1. This Act shall not, in any way, amend, alter or repeal the provisions of Republic Act No. 1405, otherwise known as ‘The Bank Secrecy Law.”
SECTION 2. Dissemination. All Barangay Chairpersons and Kagawads shall disseminate the immunities and privileges of this Act to all taxpayers situated within their jurisdiction within sixty (60) days from the effectivity of this Act. Furthermore, they must encourage these taxpayers to avail the immunities and privileges of this Act. Failure to do so shall be a ground for the imposition of an administrative sanction.
SECTION 3. Publication of List of Taxpayers and Filers. As provided under Section 15 of RA 9480, the provisions of Sections 71 and 270 of the Tax Code and Section 26 of Republic Act No. 6388 to the contrary notwithstanding, the Commissioner of Internal Revenue shall, on or before May 31 following the close of each year calendar year, prepare a list containing the names of all taxpayers belonging to the top 1,000 individuals and juridical persons, their gross income and amount of income taxes paid for the immediately preceding taxable year, and allow the publication of the same in at least two newspapers of general circulation and the Bureau of Internal Revenue website. Furthermore, all Regional Directors shall, on or before July 31 following the close of each year calendar year, prepare a list containing the names of all taxpayers belonging to the top 1,000 individuals and juridical persons registered within their respective jurisdictions, their gross income and amount of income taxes paid for the immediately preceding taxable year, and allow the publication of the same in the Bureau of Internal Revenue website. Failure to do so shall be a ground for the imposition of an administrative sanction.
SECTION 4. Suspension of Audit and Investigation. The audit of taxpayer’s books of accounts and other accounting records or other types of investigation shall only be suspended or terminated when a taxpayer has presented and submitted a proof that he had already availed the immunities and privileges of this Act.
SECTION 5. Separability Clause. - If any clause, sentence, paragraph or part of this Code shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder of said Code, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy.
SECTION 6. Repealing Clause. All laws, decrees, executive orders, rules and regulations or parts thereof which are contrary to or inconsistent with this Code are hereby repealed, amended or modified accordingly.
SECTION 7. Effectivity. This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in any two newspapers of general circulation in the Philippines, whichever comes earlier.
