Press Release
December 12, 2006

Recto urges evaders to come back to the folds
with new tax amnesty proposal

Ways and Means committee chair Senator Recto called for the immediate passage of an asset-based tax amnesty.

Those who have been in the underground economy or those who are holed out in their tax shelters can climb out in the open before taxmen drilling deeper for revenues flush them out.

Recto packaged the asset-based tax amnesty to encourage taxpayers to come back to the folds with a declaration of wealth from the smallest earring to the biggest house.

Even as the amnesty grants a clean slate for the contrite, Recto warned though that it will not be a cyclical refuge of habitual tax evaders.

This amnesty will be off limits to plunderers, grafters, crooks and criminals. Those who think that amnesty will legalize their ill-gotten hoard are wrong.

Not covered are persons involved in the following cases:

1. Withholding agents with respect to their withholding tax liabilities;

2. Those with pending cases falling under the jurisdiction of the Presidential Commission on Good Government;

3. Those with pending cases involving unexplained or unlawfully acquired wealth or under the Anti-Graft and Corrupt Practices Act;

4. Those with pending cases filed in court involving violation of the Anti-Money Laundering Law;

5. Those with pending criminal cases for tax evasion and other criminal offenses under Chapter II of Title X of the National Internal Revenue Code of 1997, as amended, and the felonies of frauds, illegal exactions and transactions, and malversation of public funds and property under Chapter III and IV of Title VII of The Revised Penal Code; and

6. Tax cases subject of final and executory judgment by the courts.

Availers of the amnesty will be protected from persons who intend to profit from information obtained in the process. We will keep these secrets under lock, except in some extraordinary but warranted cases, and those who violate the Omerta in tax amnesia shall be the one put under lock and key.

Recto said the tax amnesty is expected to generate the de lastiko estimates of between a low P12.9 billion to a high P68.2 billion.

The proposed amnesty rates are as follows: On individuals (whether resident or a non-resident citizens, including resident aliens), Trusts and Estates: 10% or P50,000, whichever is higher

On corporations (1) with subscribed capital of above P50 million: 10% or P500,000, whichever is higher (2) with subscribed capital of above P20 million up to P50 million : 10% or P250,000, whichever is higher (3) with subscribed capital of P5 million to P20 million : 10% or P100,000, whichever is higher (4) with subscribed capital of below P5 million : 10% or P250,000 whichever is higher.

On other juridical entities, including but not limited to cooperatives and foundations, that have become taxable as of December 31, 2005 : 10% or P50,000, whichever is higher.

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