November
18, 1980
REVENUE REGULATION
NO. 10-80
SUBJECT : Regulations Governing the Filing of
Statement of Assets, Liabilities and Networth Required by Presidential Decree
No. 1740, dated September 17, 1980.
TO : All
Internal Revenue Officers and Others Concerned.
SECTION 1. Scope. — These Regulations are hereby
promulgated to implement the provisions of Presidential Decree No. 1740, dated
September 17, 1980, requiring the submission of statement of assets,
liabilities and networth as of December 31, 1979.
SECTION 2. Persons Required to File Networth
Statement. —
Any individual, whether a citizen residing in the Philippines or abroad or any
alien residing in the Philippines owning assets and/or properties amounting to
P50,000 or more, as of December 31, 1979, shall file a statement of assets,
liabilities and networth as of December 31, 1979. Married individuals who are
not legally separated shall file a joint consolidated statement of assets,
liabilities and net worth. In the case of minors, insane and/or other
incapacitated persons, the statement shall be filed by their guardians; in the
case of estates or trusts, the statement shall be filed by the administrator,
executor or trustee.
For the
purpose of these Regulations, any alien residing in the Philippines means an
individual whose residence is within the Philippines and who is not a citizen
thereof.
SECTION 3. Persons Not Required to File Networth
Statement. —
The following are not required to file statement of assets, liabilities and net
worth:
(a) An individual, the total value of whose
assets and/or properties is less than P50,000;
(b) Public officers or government employees
who are required to file statement of assets; liabilities and net worth under
Republic Act No. 3019 otherwise known as the "Anti-Graft and Corrupt
Practices Act" as amended by Presidential Decree No 677 and 1288;
(c) Corporations and other juridical
persons, including general professional partnerships and joint ventures;
(d) Diplomatic or consular representatives
and officers of foreign governments;
(e) Members of the Armed Forces of the
United States Government in the active service who are stationed in the
Philippines; and
(f) Officials and officers, who are not
citizens of the Philippines, of regional or area headquarters of multinational
corporations, off-shore banking units, agencies of the United Nations or
foreign or international regional organizations established in the Philippines.
For
purposes of these Regulations, the term "multinational corporation"
means a foreign firm or entry engaged in international trade with affiliates or
subsidiaries or branch offices in the Asia Pacific Region; while the term
"regional or area headquarters" of multinational corporations are
offices established in the Philippines by multinational corporations whose
functions are limited to acting as supervisory, communications and coordinating
center for their affiliates, subsidiaries or branches.
SECTION 4. Contents of Statement. —
(a) The statement shall include all the
assets and liabilities of the individual, whether within or without the
Philippines or whether or not the assets are covered by the different
Presidential Decrees on tax amnesty and shall be prepared on the attached
prescribed form, (Annex "A").
(b) The assets shall include all properties,
real or personal, tangible or intangible, whether or not used, in trade or
business.
(c) The liabilities shall comprise all known
debts and obligations, which are legitimate and enforceable, whether secured or
unsecured, and whether or not used in trade or business.
(d) The statement shall likewise show the
net worth of the taxpayer. (The difference between the total assets and the
total liabilities).
SECTION 5. Valuation. — (a) Assets. —
(1) Real properties. — In the case of real
property, the cost of acquisition and improvement shall be used in computing
the gross assets and net worth. However, depreciable real property used in
trade or business shall be valued at acquisition or construction cost, less
accumulated depreciation as of December 31, 1979.
(2) Personal properties. — In the case of
the personal property the value to be declared shall be the cost of
acquisition. However, if the property in used in trade or business, it shall be
valued at acquisition or construction cost less accumulated depreciation as of
December 31, 1979.
(3) Property acquired by gratuitous title. —
In the case of property, whether real or personal, acquired by gratuitous
title, the value on which the transfer tax was paid upon transmission of such
property as finally determined by the Bureau of Internal Revenue shall be used;
however, if no such determination was made, then the fair market value of the
property at the time of its acquisition shall be deemed the cost thereof.
(4) Property acquired by exchange. — If the
property was acquired through taxable exchange, the cost thereof shall be the
fair market value of the property at the time of the exchange.
(5) In the case of assets, whether real or
personal previously declared in the statement of assets and liabilities filed
by the taxpayer pursuant to Presidential Decree No. 379 or 631, the value of
such assets as declared therein shall be used.
(b) Liabilities. — Liabilities or
obligations which are legitimate and enforceable under the law, and reducible in
sums of money as of December 31, 1979 shall be included in the statement.
Obligations which are condoned by the credit or barred by the statute of
limitations shall not be included.
SECTION 6. When and Where to File. — The statement of
assets, liabilities and net worth required under these Regulations shall be
filed in duplicate on or before April 15, 1981 which the Commissioner of
Internal Revenue, Revenue Regional Director, Revenue District Officer,
Collection Agent or Treasurer designated as revenue collection agent of the
municipality where the filer has his legal residence or principal place of
business in the Philippines, or if there be no legal residence or place of
business in the Philippines, the statement must be filed with the Commissioner
of Internal Revenue.
In
the case of non-resident citizens, the statement may be filed with the nearest
consular office in the foreign country where they reside or directly with the
Commissioner of Internal Revenue.
SECTION 7. Nature of Declaration. — The statement shall
contain a declaration that the taxpayer or his duly authorized representative
made it under the penalties of perjury.
SECTION 8. Unlawful Divulgence of Information. —
(a) The statement required to be filed under
these Regulations shall be confidential in nature and no information contained
in the statement shall be published except in the form of tabulations and
summaries having no specific reference to the individual filing the statement.
(b) Except for internal revenue tax
purposes, it shall be unlawful for any officer or employee of the Bureau of
Internal Revenue or any government entity having knowledge of such declaration
of assets, liabilities and net worth to disclose, to any person any information
relative to such declaration. Any officer or employee of the Bureau of Internal
Revenue or any government entity having knowledge of such declaration who shall
disclose the same to any unauthorized person shall be subject to a fine in the
amount of not less than five thousand pesos or imprisonment for not less than
two years, or both, and shall be summarily dismissed from the service for
cause.
SECTION 9. Penalties for Failure to File Statement of
or Rendering False or Fraudulent Statement. — Any individual
required to file the statement of assets, liabilities and net worth under the
Decree who knowingly makes a false declaration or who deliberately fails to
comply with any of the provisions of the Decree shall upon conviction pay a
fine of not less than five thousand pesos and imprisonment of not less than two
years.
SECTION 10. Effectivity. — These Regulations
shall take effect immediately.
EFREN I. PLANA
Acting Minister of
Finance
Recommended
by:
RUBEN
B. ANCHETA
Acting
Commissioner
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