Wednesday, 30 May 2018

Emelino T Maestro versus BIR Tax Evasion, Dismissed by CTA (Court of Tax Appeals) on May 24, 2018

Republic of the Philippines
COURT OF TAX APPEALS
Quezon City

SECOND DIVISION

PEOPLE OF THE PHILIPPINES, CTA Crim. Case Nos. 0-661
Plaintiff,
Members:
CASTANEDA, JR., Chairperson,
-versus- CASANOVA, and
MANAHAN,].].

Promulgated:
EMELINO T. MAESTRO, MAY 2 4 Z018 /
Accused. ~

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-- -- -- -- -
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RESOLUTION

For resolution of this Court is accused's Motion to Quash 1 filed
on March 23, 2018, sans plaintiff's Comment as per Records Verification
dated April 24, 2018.

Citing the cases of Francisco S. Tatad vs. The Sandiganbayan, et.
a/.,2 and Casiano A. Angchangco, jr. vs. The Honorable Ombudsman, et. a/., 3
accused moves to quash the Information 4 filed against him on February
5, 2018, due to alleged inordinate delay of more than si)( (6) years from
the filing of the initial complaint until the filing of the Information
before the Court of Ta)( Appeals (CTA). Accordingly, he suffered
prejudice and his reputation as professional Certified Public Accountant
and public speaker, in relation to his crusade and advocacy for ta)(
accounting, was besmirched.

To prove the same, accused narrates that the Bureau of Internal
Revenue (BIR), through Chief Revenue Officer Neil U. Cordero and
Revenue Officer Eulema DV Demadura, filed a Joint Complaint Affidavit
before the Department of Justice (DOJ) Ta)( Force of BIRon October 13,
2011; that accused filed his Counter Affidavit on February 3, 2012; that

1
Docket (Vol. II), pp. 598-602.
2
G.R. No. 72335 -39, March 21, 1988.
3
G.R. No. 122728, February 13, 1997.
4
Docket (Vol. 1), pp. 6-7.
RESOLUTION
CTA Criminal Case No. 0-661
Page 2 of 8

the aforesaid complainants filed their Joint Reply-Affidavit on February
3, 2012; that accused filed a Motion for Speedy Resolution on February
20, 2013; that DOJ issued a Resolution dated July 24, 2017 on August 4,
2017, finding probable cause against him; that after more than 6 years
from the filing of the initiatory complaint, the DOJ filed an Information
dated July 24, 2017 before the CTA on February 5, 2018.

We find the Motion meritorious.

Section 16, Article 3 of the 1987 Constitution explicitly provides
that "(a)ll persons shall have a right to a speedy disposition of their
cases before all judicial, quasi-judicial or administrative bodies." In this
accord, any party to a case may demand expeditious action from all
officials who are tasked with the administration of justice.

The need for a speedy disposition of cases is more pronounced in
criminal cases since what is at stake is the honor, reputation and life of
the accused. Thus, in determining whether the accused has been denied
of his/her right to a speedy disposition of his/her case, the following
factors may be considered and balanced: (1) the length of delay; (2) the
reasons for the delay; (3) the assertion or failure to assert such right by
the accused; and (4) the prejudice caused by the delay. 5

Below is the summary of the proceedings conducted and
pleadings filed based on the records attached to the Information and
the subject Motion:

April14, 2008 Accused filed his Annual Income Tax Return for
2007 with no entries thereon other than the
notation "THIS IS A TENTATIVE RETURN FINAL &
ADJUSTED RETURN INCLUDING TAX BASED
FINANCIAL STATEMENTS SHALL BE FILED AS
SOON AS THEY BECAME AVAILABLE"6.

July 29, 2010 A Letter of Authority (LOA) No. 2009 00044654
dated July 15, 2010 was issued authorizing
Revenue Officers (RO) F. Madrid, S. Bahia, R.
Yanguas and A. Alaan to examine accused's records
from taxable years 2007 to 2009.7

5
Francisco Dela Pefia, et al., vs. The Sandiganbayan, Fourth Division, the Special Prosecutor and
Commission on Audit, Region XI, G.R. No. 144542, June 29, 2001.
6
Par. 6, Joint Complaint-Affidavit, Docket (Vol. 1), p. 80 and pp. 84-86.
7
Ibid., p. 439.
RESOLUTION
CTA Criminal Case No. 0-661
Page 3 of8

September 14, LOA No. 032-2010-00000292 was issued
2010 authorizing (RO) Flaviano Madrid, Socrates Bahia,
Renato Yanguas, Aldwin Alaan and GS- Charlito
Samson to examine accused's records from January
1, 2007 to December 31, 2009 (replacing LOA dated
July 16, 2010.8
August 16, 2011 A Memorandum was issued by Regional Director
Alfredo V. Misajon to Mr. Neil U. Cordero, OIC-Chief,
Special Investigation Division, to ascertain if there
is a factual and legal basis to warrant the inclusion
of the accused's case to the RATE Program. 9
August 17,2011 OIC Chief Cordero instructed Revenue Officer E.
Demadura and Group Supervisor J. Tabora to verify
and make a report on the accused's tax case. 1o
October 13, 2011 Commissioner of Internal Revenue Kim S. Jacinto-
Henares referred to Secretary of Justice Leila De
Lima the Joint Complaint Affidavit of Chief Revenue
Officer Cordero and Revenue officer Demadura for
preliminary investigation and filing of Information
a_gainst the accused.11
October 28, 2011 Accused requested the BIR, among others, to
provide him with photocopies of his 2007, 2008,
2008, 2009 tax docket.12
November 14, Accused requested the BIR, among others, to
2011 provide him with photocopies of his 2007, 2008,
2008, 2009 tax docket. 13
November 14, Accused filed a letter to the Office of Ombudsman
2011 invokingthe writ of amparo or habeas data. 14
November 16, OIC Regional Director Simplicio A. Madulara sent a
2011 letter to the accused, in reference to the accused's
letter dated October 28, 2011 and November 14,
2011, informing the latter that there is a pending
case against him at DOJ. 15
November 22, Prosecutor Attorney Monica T. Liwag issued a
2011 subpoena requiring the accused to appear on
December 1, 2011 for the preliminary investigation
of his case.16
November 28, Accused filed before the DOJ a Motion to Suspend
8
Jd., p. 454.
9
Jd., p. 93.
10
ld., p. 94.
11
ld., pp. 77-83.
12
As per November 16, 2011 Letter of OIC Regional Director Simplicio A. Madulara to the accused, Jd., p.
46.
13
As per November 16, 2011 Letter of OIC Regional Director Simplicio A. Madulara to the accused, Id., p.
46.
14
ld., pp. 56-67.
15
ld., p. 46.
16
ld., p. 55.
RESOLUTION
CTA Criminal case No. 0-661
Page 4 of8

2011 the Preliminary Investigation and Subpoena the
Official Documents from the BIR officials. He also
prayed that the hearing on December 1, 2011 be
reset to December 16, 2011.1 7
December 1, A Hearing was held but the accused was not
2011 present. Thus, the hearing was reset on December
15, 2011.
December 2, Prosecutor Attorney Liwanag issued a subpoena
2011 directing the accused to appear on December 15,
2011 for the preliminary investigation of his case.
December 15, A Hearing was held wherein accused submitted a
2011 Motion to Produce All Material Evidences and
agreed to submit his Counter Affidavit on January
12, 2012.18
December 24, Accused requested for a copy of the 2007 Report
2011 Investigation.19
December 29, Accused claimed that he received a letter from the
2011 BIR denying him to have a copy of the 2007 Report
Investigation. 2o
January 2, 2012 Accused filed an Urgent Motion praying that he be
provided with a copy of the Report Investigation
for taxable·year 2007.21
January 4, 2012 The DOJ issued a Resolution denying accused's
request to be furnished with a copy of the
requested document and directed accused to file
his Counter-Affidavit.22
January 25, 2012 A Subpoena was issued by Prosecutor Atty. Liwag
requiring the accused to attend the hearing on
February 3, 2012.23
February 3, 2012 • A hearing was held before the DOJ2 4
• Accused filed his Counter Affidavit25
• Date of Joint Reply Affidavit of Neil u.
Cordero and Eulema DV Demadura 26
February 15, Accused filed a Motion for Reinvestigation and Re-
2012 assignment Reiteration and for other Purposes
requesting that a new prosecutor attorney shall
handle his case.27

17
ld., pp. 52-54.
18
ld., p. 43.
19
As per Letter dated December 27, 2011, ld., p. 498.
20
ld., p. 39; Par. 9, as per Accused's Urgent Motion filed on January 2, 2012, ld., p. 37.
21
ld., pp. 37-38; As per DOJ Resolution dated January 4, 2012, ld., pp. 35-36.
22
ld., pp. 35-36.
23
Ibid., p. 27.
24
ld., p. 24.
25
Par. 2, Motion to Quash, Docket (Vol. II), p. 598.
26
Docket (Vol. 1)., pp. 395-400.
27
Ibid., pp. 122; ld., pp. 126-160.
RESOLUTION
CTA Criminal Case No. 0-661
Page 5 of8

February 20, Accused filed a Motion for Speedy Resolution dated
2013 February 17, 2013 with the DOJ. 28
April 8, 2013 Accused filed a Motion for Reinvestigation and Re·
Assignment (Amended April 8, 2013) with the DOJ,
praying that a new Prosecutor Attorney shall
conduct and conclude the preliminary
investigation. 29
October 10, 2013 Department Order No. 774 was issued
reconstituting the task Force of BIR. Thus, the
instant case was transferred from Prosecution
Attorney Liwag to Assistant State Prosecutor Mark
Roland S. Estepa.3o
August 4, 2017 Assistant State Prosecutor Mark Roland S. Estepa
issued a Resolution dated July 24, 2017 finding
probable cause against the accused.3 1
February 5, 2018 The criminal case against the accused was filed
before the Court of Tax A___QQeals.32

Length of Delay

It is clear from the foregoing that more than five (5) years had
lapsed from the time the Joint Complaint Affidavit of Chief Revenue
Officer Cordero and Revenue Officer Demadura was referred by
Commissioner Henares to DOJ on October 13, 2011, before the latter
found probable cause against the accused on July 24, 2017. To our mind,
such delay amounts to a violation of the accused's constitutional right to
a speedy disposition of his case following the ruling in Luz S. Almeda vs.
Office of the Ombudman (Mindanao) and the People of the Philippines33,
to wit:

"In Coscolluela34, the fact that it took the Ombudsman
eight years to resolve a case under preliminary investigation
was considered violative of the right to speedy disposition of
cases. In Cervantes3s, it took the OSP six years from the filing
of the initiatory complaint before deciding to file an
information; this was struck down as well. In Tatad v.
Sandiganbayan36, a three-year delay in the termination of the
preliminary investigation by the Tanodbayan was
28
Par. 3, Motion to Quash, Docket (Vol. II), p. 598; Annex D.
29
Docket (Vol. 1)., pp. 95-121.
30
As per DOJ Resolution dated July 24, 2017, Ibid, pp. 8-9.
31
ld., pp. 8-21.
32
1d., p. 6.
33
G.R. No. 204267, July 25, 2016.
34
Coscolluela v. Sandiganbayan, 714 Phil. 55, 61 (2013).
35
Cervantes v. Sandiganbayan, 366 Phil. 602, 609 (1999).
36
242 Phil. 563 (1988).
RESOLUTION
CTA Criminal Case No. 0-661
Page 6 of8

considered violative of the right. In Lopez, Jr. v. Office of the
Ombudsman3 7 , the preliminary investigation was resolved
close to four years from the time all the counter- and reply-
affidavits were submitted to the Ombudsman, and this was
similarly struck down. In People v. Sandiganbayan38, the
fact-finding investigation and preliminary investigation by
the Ombudsman lasted nearly five years and five months,
which the Court considered an inordinate delay. The same is
true in Angchangco, Jr.39 and Roque v. Office of the
Ombudsman 40 , where the delay involved a period of six
years, more or less. In Licaros 41 , the failure of the
Sandiganbayan to decide the case even after the lapse of
more than 10 years after it was submitted for decision was
declared to involve 'more than just a mere procrastination in
the proceedings'."

Reason for the Delay

In the DOJ Resolution dated July 24, 2017, Assistant State
Prosecutor Mark Roland S. Estepa points out that the instant case was
previously assigned to Prosecution Attorney Monica T. Liwag. However,
due to the issuance of Department Order No. 774 dated October 10,
2013, which reconstituted the Task Force of BIR, the subject case was
re-assigned to him.

Now, even if We start counting from October 10, 2013, the date of
the issuance of the aforesaid Department Order, the fact still remains
that it still took Assistant Prosecutor Estapa more than three (3) years
to resolve the preliminary investigation proceedings against the accused
on August 4, 2017, and six (6) months to actually file the Information
before the CTA on February 5, 2018, without any explanation
whatsoever. Thus, We find the delay in the termination of preliminary
investigation brought about by the issuance of the said Department
Order unjustified.

37
417 Phil. 39 (2001).
38
People v. Sandiganbayan, 723 Phil. 444, 489 (2013).
39
Angchangco, Jr. v. Hon. Ombudsman, 335 Phil. 766, 770 (1997).
40
366 Phil. 568 (1999).
41
Licaros v. Sandiganbayan, 421 Phil. 1075, 1092 (2001).
RESOLUTION
CTA Criminal Case No. 0-661
Page 7 ofB

Assertion of the Right to Speedy Disposition of the Case

Records show that accused wasted no time to assert his right to
have the case against him be resolved as shown in his Motion for Speedy
Resolution filed before the DOJ on February 20, 2013. 42

Accused was Prejudiced by the Delay

The protracted conduct of the investigation as well as the delay in
the issuance of finding probable cause certainly caused distress, anxiety
and embarrassment on the part of the accused considering his
reputation as professional Certified Public Accountant. This is in accord
with the ruling of the Supreme Court in the case of Rafael L. Coscol/uela
vs. Sandiganbayan (First Division and People of the Philippines and
Edwin N. Nacionales, eta/., vs. Sandiganbayan (First Division), et a/. 43, viz:

"Lest it be misunderstood, the right to speedy disposition
of cases is not merely hinged towards the objective of spurring
dispatch in the administration of justice but also to prevent the
oppression of the citizen by holding a criminal prosecution
suspended over him for an indefinite time. Akin to the right to
speedy trial, its 'salutary objective' is to assure that an innocent
person may be free from the anxiety and expense of litigation
or, if otherwise, of having his guilt determined within the
shortest possible time compatible with the presentation and
consideration of whatsoever legitimate defense he may
interpose. This looming unrest as well as the tactical
disadvantages carried by the passage of time should be
weighed against the State and in favor of the individual. x x x"

In view of the violation of accused's right to speedy disposition of
his case as herein discussed, the Court has no recourse but to dismiss
the instant case.

WHEREFORE, premises considered, accused's Motion to Quash is
hereby GRANTED. Accordingly, CTA Crim. Case No. 0-661 is hereby
DISMISSED.

42
Par. 3, Motion to Quash, Docket {Vol. II), p. 598; Annex D.
43
G.R. No. 191411, July 15, 2013.
RESOLUTION
CTA Criminal Case No. 0-661
Page 8 of8

SO ORDERED.

a-~~,J;
JUANrro C. CASTANEDA, JR.
Associate Justice

?~'7~~
CAESAR A. CASANOVA CATHERINE T. MANAHAN

Associate Justice Associate Justice

BIR now going after accountants

By: Marlon Ramos - Reporter / @MRamosINQ

Philippine Daily Inquirer / 02:47 PM October 13, 2011

After filing tax cases against doctors and lawyers, the Bureau of Internal Revenue (BIR) has now trained its sights on accountants.

Emelino Maestro, a certified public accountant, was charged by the BIR on Thursday with tax evasion for alleged failure to pay close to P7 million in income and value-added taxes four years ago.

The BIR filed the case at the Department of Justice, which will determine if there is enough evidence to prosecute the matter in court. It has previously filed tax lawsuits against lawyers and doctors.

BIR Deputy Commissioner Estela Sales said the tax bureau would now be training its sights on accountants and other “tax practitioners” who had been remiss in paying correct taxes.

“This is a fair warning to all accountants. You should walk the talk and practice what you preach,” Sales said at a news briefing.

Sales said Maestro, owner of ETM Tax Agent Offices, was the first “tax practitioner” sued by the BIR for direct violation of the National Internal Revenue Code of 1997.

“In the past, we only charged accountants for colluding with their clients. This is the first time that we filed a case against an accountant for willful attempt to evade or defeat tax,” Sales said.

Tentative ITR

As a “tax practitioner,” Maestro, of Sampaloc, Manila, has been conducting lectures and doing tax consultancy for taxpayers, including private companies, she said.

Sales said the bureau had already stripped the tax agent of his accreditation to represent taxpayers in the BIR. Tax investigators found that Maestro failed in his promise to amend his income tax return (ITR) for 2007, which he submitted on April 14, 2008, Sales said.

Instead of filing an ITR, she said Maestro submitted a “tentative” ITR, which did not contain his sources of income.

She said the document only contained the note: “This is a tentative return. Final and adjusted return including tax-based financial statements shall be filed as soon as they became available.”

Since then, Sales said Maestro had failed to provide the necessary documents and comply with the BIR rules.

Sales said Maestro owed the government P5.7 million in income tax and P1.61 million in value-added tax (VAT), including surcharges and interests.

“He willfully evaded the payment of the said deficiency taxes through the fraudulent scheme of filing a tentative annual income tax return… with no entries thereon,” Sales said.

She said the accountant’s failure to submit an ITR “resulted in the nondeclaration of revenues and thus, nonpayment of taxes.”

The BIR also added a rice trader to its growing list of alleged delinquent taxpayers.

It sued Gerardo Teves, proprietor of GT Trading, for supposedly failing to pay over P136 million in income and value-added taxes in 2009.

Originally posted at 02:47 pm | Thursday, October 13, 2011

BIR files tax evasion raps vs rice importer, accountant

ABS-CBN News

Posted at Oct 13 2011 12:08 PM | Updated as of Oct 14 2011 02:08 AM

MANILA, Philippines - The Bureau of Internal Revenue (BIR) has filed tax evasion cases against a rice importer and an accountant.

The BIR filed charges against Gerardo Teves of GT Trading's Rice Importation for failing to declare rice imports worth P310 million in 2009.

Teves' total tax deficiency amounted to over P135 million, the BIR said.

Also charged was certified public accountant and tax consultant Emelino Maestro who reportedly did not file his "final" income tax return in 2007.

Maestro owed the government nearly P7 million in income and value-added taxes.

So far, the BIR has filed 72 tax evasion cases under the Run After Tax Evaders program of Commissioner Kim Henares.

BIR: Rice importer, accountant tax dodgers; Customs employee sued

Posted on October 14, 2011

A RICE importer and an accountant were the latest to be charged with tax evasion under the Run After Tax Evaders (RATE) program of the Bureau of Internal Revenue (BIR), even as a Customs employee has been sued in efforts to rid revenue-generating agencies of misfits.

Estela V. Sales, BIR deputy commissioner for legal and inspection, yesterday said in a briefing at the Department of Justice that Gerardo C. Teves, sole proprietor of GT Trading Rice Importation, was charged with failure to pay P129.95 million in income tax and P6.12 million in value-added tax (VAT) for rice imports and sales in 2009.

Investigation by the BIR on records of rice importations at the National Food Authority showed that Mr. Teves made several rice imports in 2009 totaling P98.99 million that were all undeclared.

He allegedly declared imports worth only P70,927.45 in the first quarter of 2009 and P25.14 million in the fourth quarter of the same year in his VAT returns, while he declared only P97,102.50 worth of imports in his income tax return (ITR).

“Per investigation, the amount of discrepancy in the purchases of Teves results to underdeclaration of sales,” Ms. Sales said, noting that the businessmen had underdeclared P310.26 million in purchases.

Meanwhile, Emelino T. Maestro, an accountant who advises taxpayers through his ETM Tax Agent Office, was charged with failure to pay income tax of P5.17 million and VAT of P1.61 million in 2007. Ms. Sales said he filed a temporary annual ITR for the year but failed to file his final ITR.

Despite his failure to file a final ITR, the BIR said Mr. Maestro filed quarterly VAT returns in 2007.

Ms. Sales said that during the year, Mr. Maestro earned as much as P7 million.

She said the two tax evasion cases filed with the Justice department were the 71st and 72nd under the RATE.

Messrs. Teves and Maestro could not be immediately reached for comment.

-- Nathaniel R. Melican andDiane Claire J. Jiao

Monday, 7 May 2018

Application for Independent Producer by Emelino T Maestro

Procedure:
1. Read the attached Application
2. Ask for PDF file
3. Print 3 copies
4. Place needed information
5. Sign
6. Serve to ETM
7. Secure duly approved copy
8. Start working

CONTRACTING PARTY.

I, whose legal name and true signature appear herein, knowingly prepared, verified, executed this legal document and accept and understand its terms and conditions.

When used herein, the pronouns ‘I, me, mine and my’ and ‘you, yours, and your’ shall refer to the INDEPENDENT PRODUCER and EMELINO T MAESTRO, respectively. When both are referenced, the pronoun ‘we, our and us’ is used. The provisions hereof shall also be enforceable and relevant to our staff, authorised representatives and relatives by consanguinity and affinity within the fourth degree.

DECLARATION.

I shall strictly adhere, without mental reservation and purpose of evasion, to your prescribed policies and procedures, whether they are written or unwritten. I also accept that they are superior to and will prevail over any order or instruction from any person.

GRANT.

I request that you grant me a non-exclusive privilege to advertise, market and sell the training, seminar, event and workshop as herein specified within the defined and approved jurisdiction.

EVENT.

I. Topic.

1. In the morning,

a. BIR Open Cases: Reduce. Close. Stop.

b. BIR Lifestyle Checking: Knowing. Avoiding. Solving.

2. In the afternoon,

c. Tax Mapping Specialista: Style. Secrets. Solutions.

II. Jurisdiction.

RDO ____, including the Barangays, membership-organisations, whether for profit or not, and micro, small and medium enterprises that are located within the stated jurisdiction excluding those individual and non-individual entities that are outside thereof.

III. Date.

The attendance-registration shall start at 8am and 1pm for the morning and afternoon events, respectively. The session or lecture shall be three (3) hour or less.

CLIENTELE.

I have the right of first refusal. I have sixty (60) day period to convert the attendees in the event to be my high-paying clients. However, if the client chooses you over me, I shall get a commission from the acceptance fee that you may charge him which shall not be lower than 25% thereof. If you will not be retained within sixty (60) days from the date of the event, then, no commission shall accrue to me. If you think that I am qualified to handle the tax case or bookkeeping of the client, I shall be the first priority to be the subcontractor for such client and thusly, I shall be compensated accordingly.

MY OBLIGATIONS.

I shall make myself available in any aspect hereof.
I shall create several social media accounts in order to pursue relentlessly our objectives and policy-directions and create the awareness and needs for our products and services. Furthermore, my videos and written testimonials, verbal stories and the likes may be used as tools or adverts to protect, promote and preserve your business interests.
I shall use the Facebook’s adverts to promote the event to as many as 10,000 Facebook users whose demographics may either be in Small and Business Enterprises, accountants, bookkeepers, consultants, managers, retailers, board of directors and other people engaged in business
I shall receive and accept the prescribed flyer.
I shall place my complete name, mobile number and email address on the prescribed flyer.
I shall email the prescribed flyer to all of my contacts and the contacts of my friends, suppliers, clients and other potential attendees.
I shall print the prescribed flyer and reproduce it as many as 2,000 copies.
I shall hand over or distribute the said flyers to all potential attendees two (2) weeks before the event date.
I shall place inside a white mailing envelope the reproduced flyer and my calling card or anything that may be useful to my tax practice.
I shall repeat the same process until I already covered the entire Barangays and membership-organisations located within the stated jurisdiction.
I shall place my name, ‘Tax Specialista’, address, mobile number and email address on the upper left of the mailing envelope.
I shall stamp ‘CONFIDENTIAL CF: MAYOR’S OFFICE’ on the lower left corner of the envelope.
I shall place the name of the Barangay Chieftain/President, name/number of the Barangay or name of the membership-organisation, and its address on the center of the mailing envelope with a simple notation that the same shall be shared or distributed to the concerned individuals or organisations.
I shall regular-mail, (a) 30 days and (b) 15 days before the event date, each envelope, via Philippine Postal Corporation, to the said Barangay Chieftains/all membership-organisations located within the stated jurisdiction.
I shall send a text to my friends and the friends of my friends which will encourage them to attend the event.
I shall call my friends, suppliers, clients, relatives, schoolmates, officemates and other people and encourage them to attend the event.
I shall search and look for an event place which should not be expensive. Thereat, I shall pencil book a room that can accommodate at least 50 individuals. Furthermore, I shall see to it that there will be an extra room that can accommodate the influx of a bigger number of attendees.
I shall answer all the questions, concerns, comments, inquiries and requests of the potential attendees but shall not promise anything that will jeopardise our relationship and event operations.
I shall not advertise, market and sell the event outside the stated jurisdiction.
I shall guaranty that at least 50 attendees for the morning and afternoon events shall be present at the venue.
I shall issue an appropriately accomplished BIR-registered official receipts to all the attendees.
I shall pay for the expenses as defined herein.
I shall create a report of my advertising, marketing and selling activities and submit it upon your demand.
I accept that the database from this Application shall be owned by both of us. In which, we can use it for whatever legal purpose such may serve us.
Unless, a written authorisation is first secured from you. I shall not to act for or on your behalf, represent you, or bind you in any manner, anytime and anywhere. I shall neither represent myself as an ETM Franchisee or accredited ETM TAO Tax Specialista unless I can prove the same with a relevant document.
I shall not share any proprietary interest, privileged communication or any Third Party's Data with any unrelated parties unless we (i) mutually agree that the specified information shall be used for legal purposes and will not in any way damage the owner thereof; (ii) conclude that it is required by law; (iii) have a good faith belief that the access, preservation or disclosure of the specified information is reasonably necessary to protect the rights, property or safety of your business interests, its users or the public and also for the furtherance of our respective territorial jurisdiction and scope of services; or (iv) provide the specified information in certain limited circumstances to third parties to carry out tasks on our behalf with strict restrictions that prevent such information from being used or shared except as you directed. When such is to be done, it will be subject of a contract that will oblige those parties to process the specified information only on your instructions and in compliance with appropriate confidentiality and security measures.
I shall not divert or attempt to divert our information to any competitor, or do or perform any act injurious or prejudicial to the goodwill associated with your Proprietary Marks and Methods, character, reputation, profession and public image. Furthermore, I will not, directly or indirectly, (a) solicit or attempt to solicit any business from your customers, vendors and prospects with whom I had a material contact and (b) on my own or on behalf of or in conjunction with any person, recruit, solicit, or induce, or attempt to recruit, solicit, or induce, any of your non-clerical employee and other accredited professional with whom I had personal contact or supervised to terminate their employment or contract with you.
I shall respect and obey if, later on and without a reasonable justification, you decide to discontinue and terminate, therefor, this arrangement. If a discontinuance occurred, this Application shall become void and have no legal effect, without any liability to you or your directors, officers, or shareholders, except for those demandable dues that are established prior thereto. The privileged communications disclosed to or otherwise learned or acquired by me in all circumstances or otherwise and all the copies of all confidential information, manuals, memorandums, circulars and other written materials which have been lent or made available to me shall be returned to you without any delay and further demand.
To the extent permitted by an applicable law, I shall indemnify, hold harmless and defend you and those who worked under your supervision, at my expense, from any and all third-party claims, actions, proceedings, and suits brought against this arrangement or any of your officers, directors, employees, agents or affiliates, and all related liabilities, damages, settlements, penalties, fines, costs or expenses (including, reasonable attorneys' fees and other litigation expenses) incurred by you or any of your officers, directors, employees, agents or affiliates, arising out of or relating to (i) my breach of any term or condition hereof, (ii) my violations of the applicable laws, rules or regulations, (iii) any representations and warranties made by me concerning any aspect hereof; and (iv) all claims made by or on behalf of any Third Party pertaining directly or indirectly to my use of any information specified herein. If such had been done, I shall provide you, within 24 hours, with a written notice of any claim, complaint, dissatisfaction to the business services that I provided to our clients, suit or action and cooperate as fully as reasonably required in the defense of any claim arising therefrom. Moreover, I am not eligible for any indirect, punitive, special, incidental or consequential damage in connection with or arising out hereof including the loss of business, revenue, profit, use, data or other economic advantage, however it arises, whether for breach or in tort, whether or not I was advised of the possibility of such damage.
Finally, I promise that the privileges, expressly or impliedly set forth herewith, shall not be sold, used as collaterals for any favour, permit, license, privilege or loan, assigned or transferred to other person, shared with a third party, and disposed in whatever modalities.

YOUR OBLIGATIONS.

You shall make yourself and your support group (Sonia, Guia, Lovely and Jocelyn) available and accessible
You shall draft and send to me the prescribed flyer.
You shall conduct the lecture and training that will satisfy the curiosity and need for knowledge of the attendees.
You shall be responsible for the payment of the event place. However, the receipt thereof shall be under my name and will form part of the expenses of the event.
You shall guide me in planning, preparing and managing the event.
You shall provide a fiduciary account where the payments of the attendees shall be deposited and withdrawn in case that there is a need to use it for the furtherance of our objectives will arise.
You shall issue me a duly accomplished BIR-registered official receipt for the amount of money/share that I gave you.
You shall allow me to attend your identified Tax Specialista Course free of charge in case that I exceeded the quota that you set forth.
You accept that the database from this Application shall be owned by both of us. In which, we can use it for whatever legal purpose such may serve us.
You shall use the Facebook’s adverts to promote the event to as many as 10,000 Facebook users whose demographics may either be in Small and Business Enterprises, accountants, bookkeepers, consultants, managers, retailers, board of directors and other people engaged in business

EXPENSES.

All expenses for the event’s advertisement, marketing and selling and we both incurred for this event shall be under my account provided that they are all receipted under my name. In case that they are not properly receipted under my name, my permission for their incurrence shall either be pre-approved or post-approved. All tax dues shall be for my account.

PROFIT-SHARING.

From the gross receipts earned from the event, the expenses incurred by both of us shall be deducted. The resulting gross income shall be divided between us. The thirty (30) percent shall accrued to me and the remaining seventy (70) percent shall accrue to you. You shall issue a duly accomplished BIR-registered official receipt to me for the said seventy (70) percent.

The sources of gross receipts shall be from the sale of the Manual for Tax Mapping Specialista which has a retail price of P20,000 per copy. It will be sold at a discounted amount of P10,000 cash or on instalment. If it will be sold on instalment, the initial cash outlay of each attendees shall be P2,500 and the remaining balance of the P17,500 or whatever is the final balance of sale shall be paid within five (5) months from the date of the event. The gross receipts earned shall be the total amount of money collected on or before the event date and does not include the amount of money collected after the event date. Furthermore, the attendees shall be required to execute and sign a Promissory Note.

The cash method of accounting shall be used in recording and reporting our respective gross receipts/income while the gross income tax, optional standard deduction or allowable itemised deduction, at our respective options, shall be availed of.

The documentary stamp tax shall be for the account of those who will choose the instalment basis.

FIDUCIARY ACCOUNT.

All attendees shall be advised to deposit their money to your bank account. The amount so deposited shall not become your gross income from trade, business or practice of profession but my sales of books that I purchased from you. Your seventy (70) percent profit share shall be understood as my payment for the books that I purchased from you. However, for the books that were purchased by the attendees on an instalment basis, the balance of the amount to be collected therefrom shall be assigned to you to reflect my full and complete payment of the books that are sold at the event date. Thus, the said balance shall form part of your gross income for the taxable year that you collected the same. As for my thirty (30) percent, you shall withdraw from the fiduciary account the amount of money that is equal thereto and should be handed to me without further delay.

VALIDITY.

This Application, once approved, shall be valid from the date thereof up to the last second of the event. Therefore, it is automatically terminated after the culmination of such event.

RELATIONSHIP.

I am an independent contractor. Nothing contained herein shall create an employee-employer, principal-agent or any other fiduciary relationship, partnership or joint venture. I am not entitled to worker's compensation, retirement, insurance or other benefits afforded to your regular employees of yours. I fully recognise that my success or failure, as the same is contemplated herein, depends largely upon my ability to replicate your business processes, operations and management and on the acumen of mine as an independent businessperson, notwithstanding, the economic conditions that prevail and are outside of the control of either of us. I shall be treated as if I am a high paying client.

COMMUNICATION.

Our notices shall be sent via provided email addresses. In some instances, the use of SMS, snail mail and call may be permitted.

GOVERNING LAW.

This Application shall be subject to and governed by the laws of the Republic of the Philippines and their implementing rules and regulations. Furthermore, any court in the National Judicial Region shall have the exclusive jurisdiction over any conflict that may arise hereof.

RELEVANCE.

This Application, after being signed by both of us, shall be superior to all the contracts having the same subject matter, whether verbal or in writing, that we have or have not entered into; and is not modified by my mere acts of tolerance.

SIGNATURE.

To attest my faithful compliance with your existing and succeeding policies and procedures and the terms and conditions herein expressly and impliedly set forth, I affirm that I knowingly prepared, read, understood this Application and voluntarily enter into its arrangements, by way of printing my complete and legal name and placing herein my true signature.

Independent Producer

TIN

DATE TIME

SIGN OVER NAME

ADDRESS/LOCATION

EMAIL

MOBILE

GRANTED/APPROVED.

EMELINO T MAESTRO

TIN 129 596 230

DATE TIME

SIGNATURE

EMAIL TaxMappingApps@gmail.com

Monday, 2 April 2018

Petition for Certiorari RR 8-2018 and RR 11-2018

Emelino T Maestro

Unit 419 Corporate 101 Mother Ignacia Quezon City

TIN 129 596 230

Legal Petition Notice

For the Urgent Attention and Action of the BIR Chief, Chairperson of the Ways and Means Committee of the House of Representatives, Chairperson of the Ways and Means Committed of the Senate, DOF Chief, Ombudsman and His Excellency, President Rodrigo R Duterte

Greetings.

Me and my group really support the policy direction of our present government. The choice of the present BIR Chief by our President is fantastic. I believe that he is an HONEST, GOD-FEARING AND LAW-ABIDING INDIVIDUAL.

The recent passing of TRAIN creates rights that are worthy of pursuance and obligations that are worthy of extinguishment not only by those who are in-charge to implement it but most importantly, by those who are being directly affected by the TRAIN. I understand that the intention of the laws passed by our Congress and approved by the President should be interpreted and implemented according to the legal doctrine that the rights and justice must always prevail. For this purpose, acts that are executed against the laws’ mandatory provision ares deemed void from the beginning.

Believe me. I recognised the power of the BIR Chief to interpret the provisions of the approved TRAIN but that power should not go beyond what it provides. The safety net from exercising the so-called grave misconduct, abuse of authority, usurpation of authority and gross incompetence in interpreting the provisions of TRAIN is clearly and completely stated in Sections 244 and 245, National Internal Revenue Code (NIRC) which the present BIR Chief is not capable of doing so.

According thereto, the BIR Chief should issue the following BIR issuance in order that his interpretation of the provisions of TRAIN may be considered valid and enforceable (a) Revenue Regulations, (b) Revenue Memorandum Order, (c) Revenue Memorandum Circular, etc. Nothing in the TRAIN or previous provisions of the NIRC and its implementing rules and regulations justify the use of TAX ADVISORY. Thus, I believe that any TAX ADVISORY is irregular and illegal for it did not pass through the due process required by the 1987 Administrative Code, New Civil Code and the Tax Code.

Annex A is a TAX ADVISORY stating that self-employed and professionals such as CPAs, doctors and architects should file their BIR Form No. 1701 on or before April 15 every year. I find this so intriguing and questionable. According to the provision of the TRAIN that amended Section 74(B), NIRC, me, the self employed and other professionals shall file their BIR Form No. 1701, for the taxable year 2017 and succeeding years, on or before MAY 15. To understand my position, the provisions of RA 8424 and RA 10963 is presented in a matrix hereunder;

Section	RA 8424	RA 10963
74(B)	(B) Return and Payment of Estimated Income Tax by Individuals. - The amount of estimated income as defined in Subsection (C) with respect to which a declaration is required under Subsection (A) shall be paid in four (4) installments. The first installment shall be paid at the time of the declaration and the second and third shall be paid on August 15 and November 15 of the current year, respectively. The fourth installment shall be paid on or before April 15 of the following calendar year when the final adjusted income tax return is due to be filed.	(B) Return and Payment of Estimated Income Tax by Individuals. – The amount of estimated income as defined in Subsection (C) with respect to which a declaration is required under Subsection (A) shall be paid in four (4) installments. The first installment shall be paid at the time of declaration and the second and third shall be paid on August 15 and November 15 of the current year, respectively. The fourth installment shall be paid on or before May 15 of the following calendar year when the final adjusted income tax return is due to be filed.

I understand that our Congress knew from the beginning that the BIR Form No. 1701, prior to the approval of TRAIN, is to be filed on or before April 15. Thus, by changing it from April 15 to May 15 has some reasonable implications such as the separation of filing and payment of income taxes by individuals engaged in business and practice of profession and non-individuals engaged in trade and business, de-clogging of BIR websites and computer systems, unloading some workloads from the shoulders of some revenue officers, long-line and long hours of filing and payment of annual income tax returns, etc.

Some is arguing that the due date shown in Section 51(C), NIRC should prevail over Section 74(B), NIRC, as amended by TRAIN. I believe that in general, the Repealing Clause of RA 10963 will settle the issue and had already repealed the provisions of old and previous laws that contradicted its provisions. I also believe that the provisions of the Repealing Clause of RA 8424 is also applicable on this issue as it stated that all laws that contradicted the present laws are expressly and implicitly considered repealed or amended.

But, for a while, let us consider that Section 51(C), RA 8424 is not yet repealed or immobilised by Section 74(B), RA 10963. It may be agreed upon that their provisions cannot and may not be reconciled at all. Once should prevail over the other. The interpretation of the BIR Chief that Section 51(C), RA 8424 should prevail over Section 74(B), RA 10963 is contrary to law and the legal system of the Republic of the Philippines. Firstly, RA 8424 is older than RA 10963. Meaning, the laws are repealed by subsequent one. Importantly and considering the numerous Supreme Court’ decisions, this should be applied ‘BUT IF THERE IS A CONFLICT BETWEEN TWO STATUTES RELATING TO THE SAME SUBJECT WHICH CANNOT BE RECONCILED BY ANY FAIR AND REASONABLE METHOD OF CONSTRUCTION, THE LAST POINT OF TIME WILL CONTROL; AND IF THERE IS A SIMILAR CONFLICT BETWEEN TWO CLASSES OR SECTIONS OF THE SAME STATUTE, EFFECT MUST BE GIVEN TO THE LAST IN ORDER, OVERRIDING THE EARLIER.’

I am appealing to the BIR Chief that he immediately retracts or recalls his Tax Advisory for the BIR Form No. 1701 requiring me to file and pay my annual tax due for the taxable year 2017 and succeeding years on or before April 15 and apply RA 10963.

I cannot subscribe to the TAX ADVISORY marked as Annex B hereof which requires me and taxpayers similarly situated to file and pay our withholding tax on compensation, expanded withholding tax and final withholding tax on a monthly basis using BIR Form No. 0605. Again, the use and dissemination of TAX ADVISORY is contrary to RA 10963 which requires the BIR Chief and DOF Chief to issue the required implementing rules and regulations on or before January 31, 2018. Their due date to do so had already lapsed. This TAX ADVISORY is contrary law, public order and public policy. To understand my position, I, again, presented the old law and the new law;

Section	RA 8424	RA 10963
58(A)	The return for final withholding tax shall be filed and the payment made within twenty-five (25) days from the close of each calendar quarter, while the return for creditable withholding taxes shall be filed and the payment made not later than the last day of the month following the close of the quarter during which withholding was made: Provided, That the Commissioner, with the approval of the Secretary of Finance, may require these withholding agents to pay or deposit the taxes deducted or withheld at more frequent intervals when necessary to protect the interest of the government.	The return for final and creditable withholding taxes shall be filed and the payment made not later than the last day of the month following the close of the quarter during which withholding was made.

Our Congress and the President is totally aware that the provision of RA 8424 ‘Provided, That the Commissioner, with the approval of the Secretary of Finance, may require these withholding agents to pay or deposit the taxes deducted or withheld at more frequent intervals when necessary to protect the interest of the government.’ do exist but they knowingly remove such provision. Thus, it can no longer be revived by way of an administrative act or through a TAX ADVISORY.

I am appealing to the BIR Chief that he immediately retracts or recalls his Tax Advisory for the filing and payment of monthly withholding taxes (compensation, expanded and final) through the use of BIR Form No. 0605 because it is contrary to RA 10963.

I also request the Office of the President, Office of the Ombudsman, DOF Chief, Chairperson of the Ways and Means of the Senate and House of Representatives to help and assist me by way of protecting my rights and privileges to file and pay my BIR Form No. 1701 on or before May 15 and withholding tax on compensation, expanded and final on or before the last day of the month after the close of the calendar quarter. If it is possible and appropriate, a preliminary investigation leading to immediate resolution of these issues shall be conducted and concluded.

Thanks a lot for following the provisions of RA 9485 and sending your replies on time.

Emelino T Maestro

TIN 129 596 230

Mobile 0922 801 0922

02-4259225

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Saturday, 17 February 2018

Petition for 2018 Tax Amnesty (Let us push this now.) (Emelino T Maestro)

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.