GENERAL PRINCIPLES OF TAXATION

I. TAXATION

TAXATION is the inherent power by which the sovereign, through its law-making body, raises revenue to defray the
necessary expenses of the government. It is a manner of apportioning the costs of the government among those who, in
some measure, are privileged to enjoy its benefits and must bear its burdens.

INHERENT TO THE STATE: It is inherent in character because its exercise is guaranteed by the mere existence of the
state. It could be exercised even in the absence of a constitutional grant. The power to tax proceeds upon the theory
that the existence of a government is a necessity and this power is an essential and inherent attribute of sovereignty,
belonging as a matter of right to every independent state or government. (Pepsi-Cola Bottling Co. of the Philippines vs.
Municipality of Tanauan, Leyte, G.R. No. L-31156, February 27, 1976)

SCOPE OF LEGISLATIVE POWER TO TAX

1. The determination of purposes for which taxes shall be levied provided it is for the benefit of the public.
2. The determination of subjects of taxation such as the person, property or occupation within its jurisdiction.
3. The determination as to the amount or rate of tax unless constitutionally prohibited.
4. The determination as to the kind of tax to be collected (i.e. property tax, income tax, inheritance tax, etc.).
5. The determination of agencies to collect the taxes.
6. The power to specify or provide for administrative and judicial remedies.
7. The power to grant tax exemptions and condonations.

THEORY AND BASIS

1. Life Blood Theory – Taxes are the lifeblood of the government and so should be collected without unnecessary
hindrance. (Commissioner of Internal Revenue vs. Algue; GR No. L-28896; Feb. 17, 1988)

2. Necessity Theory - government is necessary; however, it cannot continue without the means of paying for its
existence; hence, it has the right to compel all citizens and property within its power to contribute for the same purpose.
(71 Am. Jur. 2d 346) The power to tax is an attribute of sovereignty. It is a power emanating from necessity. It is a
necessary burden to preserve the State's sovereignty and a means to give the citizenry an army to resist an aggression, a
navy to defend its shores from invasion, a corps of civil servants to serve, public improvement designed for the
enjoyment of the citizenry and those which come within the State's territory, and facilities and protection which a
government is supposed to provide. (Phil. Guaranty Co., Inc. vs. CIR; GR No. L-22074; April 30, 965)

3. Symbiotic relationship theory - It is said that taxes are what we pay for a civilized society. Without taxes, the
government would be paralyzed for lack of the motive power to activate and operate it. Hence, despite the natural
reluctance to surrender part of one's hard earned income to the taxing authorities, every person who is able to must
contribute his share in the running of the government. The government for its part, is expected to respond in the form
of tangible and intangible benefits intended to improve the lives of the people and enhance their moral and material
values. This symbiotic relationship is the rationale of taxation and should dispel the erroneous notion that it is an
arbitrary method of exaction by those in the seat of power. (Commissioner of Internal Revenue vs. Algue, supra)

PURPOSE OF TAXATION

1. Primary – to raise revenues; to support the existence of the State and enable the state to promote the general
welfare.
2. Secondary – non-revenue or sumptuary
a. Promotion of general welfare – taxation may be used to implement police power (e.g., grant of VAT
exemption and Discounts to Senior Citizens);
b. Regulation - where taxes are levied on excises or privileges for purposes of rehabilitation and
stabilization of threatened industry which is affected by public interest or to discourage consumption of harmful
products (e.g., excise taxes on cigarettes and alcohol);
c. Reduction of Social Inequity – This is made possible through the progressive system of taxation where
the objective is to prevent the undue concentration of wealth in the hands of few individuals. Progressivity is keystoned
on the principle that those who are able to pay should shoulder the bigger portion of the tax burden. (e.g., Income tax)
d. Encouragement of economic growth – tax incentives and reliefs may be granted to encourage
investment (i.e., Income Tax Holiday, 5% preferential Gross Income Tax for PEZA registered entities);
e. Protectionism – for the protection of local industries, in case of foreign importations, protective tariffs
and customs duties and fees (e.g., Special Duties imposed by the Bureau of Customs)
CHARACTERISTICS OF THE POWER TO TAX (CUPS)

1. Comprehensive – it covers persons, businesses, activities, professions, rights and privileges.

2. Unlimited – it is so unlimited in force and searching in extent that courts scarcely venture to declare that it is
subject to any restrictions, except those that such rests in the discretion of the authority which exercises it. (Tio vs.
Videogram Regulatory Board; GR No. 75697; June 18, 1987)
3. Plenary – it is complete; unqualified; absolute. Under the Tax Code, the BIR may avail of certain remedies to ensure
collection of taxes.
4. Supreme – insofar as the selection of the subject of taxation is concerned.

PRINCIPLES OF A SOUND TAX SYSTEM (FAT)

1. Fiscal Adequacy – revenue raised must be sufficient to meet government/public expenditures and other public
needs. (Chavez vs. Ongpin; GR No. 76778; June 6, 1990)
2. Administrative Feasibility – tax laws must be clear and concise; capable of effective and efficient enforcement;
convenient as to time and manner of payment, must not obstruct business growth and economic development. The
VAT law cannot be considered as violative of the Administrative Feasibility principle because it is principally aimed
to rationalize the system on taxes of goods and services. Thus, simplifying tax administration and making the system
more equitable to enable the country to attain economic recovery. (Kapatiran ng Mga Naglilingkod sa Pamahalaan
v. Tan; June 30, 1988)
3. Theoretical Justice – must take into consideration the taxpayer’s ability to pay (Ability to Pay Theory).Art. VI, Sec.
28(1) of the 1987 Constitution mandates that the rule on taxation must be uniform and equitable and that the State
evolve a progressive system of taxation.

NOTE: Non-observance of Fiscal Adequacy and Administrative Feasibility will render the tax measure unsound but not
unconstitutional. However, non-observance of the Principle of Theoretical Justice is invalid because the Constitution
itself requires that taxation must be equitable.

“THE POWER TO TAX IS THE POWER TO DESTROY”

According to Justice Marshall: The power to tax includes the power to destroy. Taxation is a destructive power which
interferes with the personal and property rights of the people and takes from them a portion of their property for the
support of the government. (McCulloch vs. Maryland, 4 Wheat, 316 4 L ed. 579, 607) However, according to Justice
Holmes: The power to tax is not the power to destroy as long as this court (Supreme Court) sits. Taxpayers may seek
redress before the courts in case of illegal imposition of taxes and irregularities. The Constitution, as the fundamental
law, overrides any legislative or executive act that runs counter to it. In any case, therefore, where it can be
demonstrated that the challenged statutory provision fails to abide by its command, then the court must declare and
adjudge it null. (Sison Jr. v. Ancheta; G.R. No. L-59431; July 25, 1984)

IMPRESCRIPTIBILITY OF TAXES: Taxes are generally imprescriptible, except when the law provides otherwise, e.g. the
statute of limitations provided under the Tax Code.

DOUBLE TAXATION: means taxing the same person for the same tax period and the same activity twice, by the same
jurisdiction.
Double taxation in strict sense is when:
1. Both taxes are imposed on the same property or subject matter;
2. For the same purpose;
3. Imposed by the same taxing authority;
4. Within the same jurisdiction;
5. During the same taxing period;
6. Covering the same kind or character of tax.

Double Taxation in Broad senseis the opposite of direct double taxation and is not legally objectionable. The absence of
one or more of the foregoing requisites of obnoxious direct tax makes it indirect.

Constitutionality of double taxation: Double taxation in its stricter sense is unconstitutional but that in the broader
sense is not necessarily so. Our Constitution does not prohibit double taxation. However, double taxation will not be
allowed if it results in a violation of the equal protection clause.

Modes of eliminating double taxation

1. Tax Deduction – an amount subtracted from the gross income to arrive at taxable income.
2. Tax Credit - an amount subtracted from an individual’s or entity’s tax liability (tax due) to arrive at the tax liability
still due. A deduction differs from a tax credit, in that a deduction reduces taxable Income while a credit reduces tax
liability.
3. Treaties with other states: a tax treaty sets out the respective rights to tax of the state of source (situs) and the
state of residence with regard to certain cases, an exclusive right to tax is conferred on one of the contracting
states; however, for other items of income or capital, both states are given the right to tax, although the amount of
tax that may be imposed by the state of source is limited. It applies whenever the state of source is given full or
limited right to tax. The treaty makes it incumbent upon the state of residence to allow relief in order to avoid
double taxation.

Note: The BIR issued RMO No. 1-2000, as amended by RMO No. 72-2010, requiring taxpayers to file for a Tax Treaty
Relief Application on or before the transaction date before availing of the provisions of a tax treaty. However, as held by
the Supreme Court, this administrative requirement cannot defeat the right of any taxpayer entitled to the preferential
rates in the tax treaty.

FORMS OF ESCAPE FROM TAXATION

1. Shifting – the burden of payment is transferred from the statutory taxpayer to another without violating the law
(e.g., VAT);
2. Capitalization – the reduction in the price of the taxed object equal to the capitalized value of future taxes the
purchaser is expected to be called upon to pay.
3. Transformation - for manufacturers or producers, upon whom tax are imposed, fearing the loss of his market if he
should add to the price, pays the tax and endeavor to recoup himself by improving his process of production,
thereby producing his units at a lower cost.
4. Tax Avoidance – exploitation by the taxpayer of legally permissible alternative tax rates or methods of assessing
taxable property or income, in order to avoid or reduce tax liability. Also known as “tax minimization.” (e.g. utilizing
all permissible allowable deductions)
5. Tax Exemption – grant of immunity to particular persons or corporations of a particular class from a tax which
persons or corporations generally within the same rate or taxing district are obliged to pay.

Basic Principles Regarding Tax Exemption

i. Exemptions are highly disfavored by law and he who claims an exemption must be able to justify his claim by
the clearest grant of law. An exemption from the common burden cannot be permitted to exist upon vague
implication. (Asiatic Petroleum Co. vs. Llanes, 49 Phil. 466; see also House vs. Posadas, 53 Phil. 338)." (Collector
of Int. Revenue vs. Manila Jockey Club, Inc., G.R. No. L-8755, March 24, 1956)
ii. He who claims exemption should prove his factual and legal basis for exemption. (Commissioner of Internal
Revenue v. Acesite (Philippines) Hotel Corporation, G.R. No. 147295, February 16, 2007)
iii. Tax exemptions are strictly construed against the person claiming it. (Esso Standard Eastern, Inc. vs. Acting
Commissioner of Customs; GR No. L-21841; Oct. 28, 1966)
iv. Constitutional grant of exemptions are self-executing.
v. In the same way that taxes are personal, tax exemptions are also personal.
vi. Deductions from income tax purposes partake of the nature of tax exemptions, therefore should also be
construed strictly against the taxpayer. (Commissioner of Internal Revenue vs. General Foods (Phils), Inc.; GR
No. 143672; April 24, 2003)
vii. Same treatments are given to tax refunds. (Commissioner of Internal Revenue v. Eastern Telecommunications
Phils., Inc., G.R. No. 163835, July 7, 2010)

Kinds of Tax Exemption

As to Form:
a. Express - Expressly granted by the Constitution, statutes, treaties, franchises or similar legislative acts.
b. Implied - When particular persons, properties, or exercise are deemed exempt as they fall outside the scope of
the taxing provision itself.
c. Contractual - Are those agreed to by the taxing authority in contract lawfully entered into by them under
enabling laws.

As to Basis:
a. Constitutional Exemptions – Immunities from taxation which originate from the Constitution.
b. Statutory Exemptions – those which emanate from legislation.

As to Extent:
a. Total Exemption – connotes absolute immunity.
b. Partial Exemption – one where a collection of a part of the tax is dispensed with.
Grounds for Tax Exemption

a. Contract – the grant of tax exemption is usually contained in the charter of the corporation to which the
exemption is granted.
b. Public policy - to encourage new and necessary industries, or to foster charitable institutions.
c. Reciprocity – to reduce the rigors of international double or multiple taxation, tax exemptions maybe granted
in treaties. A tax exemption is a personal privilege of the grantee and therefore not assignable; it is generally
revocable by the government, unless founded on contract and must not be discriminatory.

Revocation of Tax Exemption:

If the grant of an exemption does not constitute a contract, but merely “a spontaneous concession by the legislature,
not connected with any service or duty imposed” it is REVOCABLE by the power which made the grant.
Thus, if the basis of the tax exemptions is by virtue of a franchise granted by Congress, the exemption may be revoked.
However, if the tax exemption constitutes a binding contract and for a valuable consideration, the government
cannot unilaterally revoke the tax exemption.

6. Tax Evasion – use of a taxpayer of illegal or fraudulent means to defeat or lessen the payment of tax. Also known as
“tax dodging,” it presupposes malice, fraud, bad faith, or willful intent on the part of the taxpayereither to
underdeclare income or overdeclare deductions to defeat tax liability.

Connotes the integration of 3 Factors:

a. The end to be achieved, i.e. the payment of less than that known by the taxpayer to be legally due;
b. An accompanying state of mind which is described as being “evil”, in “bad faith”, “willful”, or “deliberate and
not merely accidental”, and
c. A course of action or failure of action which is unlawful.

7. Compensation or Set-off: as a general rule, taxes cannot be the subject of a set-off or compensation because of the
lifeblood doctrine; they are not contractual obligations but arise out of duty to the government; and the
government and the taxpayer are not mutually debtors and creditors of each other. (Francia vs. IAC No. L-67649;
June 28, 1988)

Taxes are of a distinct kind, essence and nature, and these impositions cannot be classed in merely the same category as
ordinary obligations; the applicable laws and principles governing each are peculiar, not necessary common, to each;
and public policy is better subserved if the integrity and independence of taxes are maintained. (Republic vs. Mambulao
Lumber Co.)

A person cannot refuse to pay tax on the basis that the government owes him an amount equal to or greater than the
tax being collected. The collection of a tax cannot await the results of a lawsuit against the government. (Philex Mining
Corp. v. Commissioner)

Doctrine of Equitable Recoupment:

is a doctrine in common law applicable where the taxpayer has a claim for refund but he was not able to file a written
claim due to the lapse of the prescription period within which to make a refund. The taxpayer is allowed to credit such
refund to his existing tax liability. This doctrine is not allowed in the Philippines.
Note that the prescription of tax refunds in this jurisdiction is generally two years from the date of payment and the
assessment of taxes is generally 3 years from filing. Thus, if the taxpayer failed to file a refund within the 2 year period,
his liability as assessed by the BIR cannot be recouped against such prescribed refund claim.

8. Compromise and Abatement – these are powers granted to the Commissioner of Internal Revenue to reduce tax
liabilities and/or penalties. (see Tax Remedies)

9. Tax Amnesty refers to the articulation of the absolute waiver by a sovereign of its right to collect taxes and power
to impose penalties on persons or entities guilty of violating a tax law. Tax amnesty aims to grant a general reprieve
to tax evaders who wish to come clean by giving them an opportunity to straighten out their records. (Metropolitan
Bank and Trust Co. v. Commissioner of Internal Revenue, G.R. No. 178797, 4 August 2009)

Distinguished with tax exemption:

Tax amnesty is an immunity from all criminal and civil obligations arising from non-payment of taxes. It is a general
pardon given to all taxpayers. It applies only to past tax periods. (People vs. Castañeda, G.R. No. L-46881, September 15,
1988)It applies to past tax liabilities.
Tax exemption is an immunity from the civil liability only. It is an immunity or privilege, a freedom from a charge or
burden of which others are subjected. (Florer vs. Sheridan, 137 Ind. 28, 36 NE 365). It applies prospectively after the
grant of exemption or qualification therefrom.

TAX AMNESTY ACT (Republic Act No. 11213): towards the policy of the State in protecting and enhancing revenue
administration and collection, the State shall:
a. Provide a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that will
give reasonable relief to estates with deficiency estate taxes
b. Enhance revenue collection by providing a tax amnesty on delinquencies to minimize administrative costs in
pursuing tax cases and declog the dockets of the BIR and the courts; and
c. Provide a more equitable tax system by adopting a comprehensive tax reform program that will simplify the
requirements on tax amnesties with the use of simplified forms and utilization of information technology in
broading the tax base.

General Amnesty:
the law originally includes a general tax amnestyto cover all other taxes, but this portion of the law (Title III) was vetoed
entirely by the President stating that “without the provisions breaking down the walls of bank secrecy, setting the legal
framework for us to comply with international standards on exchange of information for tax purposes, and safeguarding
against those who abuse the amnesty by declaring an untruthful asset or net worth, a general amnesty that is
overgenerous and unregulated would create an environment ripe for future tax evasion, the very thing we wish to
address.”

Estate Tax Amnesty:

a. Coverage: estate of decedents who died on or before December 31, 2017, with or without assessments duly
issued therefor, whose estate taxes have remained unpaid or have accrued as of December 31, 2017.
b. Exceptions to the Coverage: the Estate Tax Amnesty shall not extend to cases which shall have become final
and executory and to properties involved in cases pending in appropriate courts:
i. Falling under the jurisdiction of the Presidential Commission on Good Government;
ii. Involved in unexplained or unlawfully acquired wealth under RA No. 3019, or the Anti-Graft and Corrupt
Practices Act, and RA No. 7080 or the Plunder Act;
iii. Involving violations of RA No. 9160, or the Anti-Money Laundering Act, as amended;
iv. Involving tax evasion and criminal offenses under the Tax Code, as amended; and
v. Involving felonies of frauds, illegal exactions and transactions, and malversation of public funds and
property under the Revised Penal Code.
c. Tax Base:
i. Total net estate at the time of death, or the gross estate less all allowable deductions as provided in the
Tax Code, as amended, or the applicable estate tax laws prevailing at the time of death of the decedent;
ii. If an estate tax return was previously filed, the estate tax shall be based on net undeclared estate.
d. Tax Rate: 6%
e. Tax Due: shall be 6% of the Net Estate as determined above. However, if allowable deductions applicable at
the time of death of the decedent exceed the value of the gross estate, the heirs, executors, or administrators
may avail of the benefits under the Tax Amnesty Act and pay the minimum estate amnesty tax of P5,000.
f. Who will avail:
i. The executor or administrator of the estate, or
ii. if there is no executor or administrator appointed, the legal heirs, transferees or beneficiaries
g. Period of availment: 2 years from the effectivity of the Implementing Rules and Regulations (IRR) of the Tax
Amnesty Act.
h. Where to File: the sworn Estate Tax Amnesty Return shall be filed with the RDO of the BIR which has
jurisdiction over the last residence of the decedent. For non-residents, the return shall be filed and the tax paid
at RDO No. 39, or any other RDO which shall be indicated in the IRR.
i. Time of payment: at the time of the filing of the return.
j. Previous transfers of property: the Tax Amnesty Act originally provided that if the estate involved properties
which are still in the name of another decedent or donor, the present holder, heirs, executors or
administrators shall file only 1 Estate Tax Amnesty Return and pay the corresponding taxes thereon based on
the total net estate at the time of death of the LAST decedent covering all accrued taxes under the Tax Code,
arising from the transfer of such estate from all prior decedents or donors through which the property/ies
comprising the estate shall pass.

The President, however, vetoed such provision, the message providing that the tax is imposed not because of
the property itself but on the privilege of transferring property to the heirs. As the message provides, the flat rate of 6%
estate amnesty tax, without penalties, imposed at EVERY STAGE OF TRANSFER is more than a fair imposition on the
privilege.
 k. No admission of liability: the availment of the Estate Tax Amnesty and the issuance of the corresponding
Acceptance Payment Form do not imply admission of criminal, civil or administrative liability on the part of the
availing estate.
l. NO Presumption of Correctness of the Estate Tax Amnesty Returns: the TAA originally provides that the Estate
Tax Amnesty Returns shall be conclusively presumed as true, correct and final upon filing and shall be deemed
complete upon full payment of the amount due. However, the President vetoed this provision stating that
beyond the transfer of property, rights and obligations to the heirs, legatees, and devisees, the valuation of the
subject properties is a technical aspect that cannot be left to mere self-declaration and that there must be an
opportunity for implementing agencies to evaluate the truthfulness of the declarations made by the taxpayers.
m. Duties of the BIR: the RDO shall issue an acceptance form for the Authorized Agent Bank or the revenue
collection agent or municipal treasurer concerned, to accept the tax amnesty payment. After payment, a
Certificate of Availment of the Estate Tax Amnesty shall be issued by the BIR within 15 calendar days from
submission to the BIR of the Acceptance Payment Form and the Estate Tax Amnesty Return. Otherwise, the
duplicate copies of the Acceptance Payment Form and the Estate Tax Amnesty Return shall be deemed
sufficient proof of availment.
n. Immunities and Privileges: Estates covered by the Estate Tax Amnesty, which have fully complied with the
conditions set forth above, including the payment of the estate amnesty tax shall be immune from the
payment of all estate taxes for taxable year 2017 and prior years, and from all appurtenant civil, criminal and
administrative cases and penalties under the Tax Code, as amended.

Tax Amnesty on Delinquencies

a. Coverage: all national internal revenue taxes collected by the BIR, including VAT and excise taxes collected by
the Bureau of Customs.

Delinquencies covered and Applicable Rates:

Delinquency Covered Applicable Rate

A Delinquencies and assessments, which have become final and 40% of the basic tax assessed
executory, including delinquent tax account, where the application for
compromise has been requested but was denied by the Regional
Evaluation Board or the National Evaluation Board, as the case may be,
on or before the IRR takes effect.
B Pending criminal cases with the DOJ or the courts for tax evasion and 60% of the basic tax assessed
other criminal offenses under the Tax Code, as amended, with or
without assessments issued.
C Tax cases subject of final and executory judgment by the courts on or 50% of the basic tax assessed
before the IRR takes effect.
D Withholding tax agents who withheld taxes but failed to remit the same 100% of the basic tax assessed
to the BIR

Delinquent Account: pertains to a tax due from a taxpayer arising from the audit of the BIR which had been
issued Assessment Notices that have become final and executory due to the following instances:
i. Failure to file a valid Protest, whether a request for reconsideration or reinvestigation, within 30 days from
receipt thereof.
ii. Failure to file an appeal with the CTA or an administrative appeal before the CIR within 30 days from
receipt of the decision denying the request for reinvestigation or reconsideration; or
iii. Failure to file an appeal with the CTA within 30 days from receipt of the decision of the CIR denying the
taxpayer’s administrative appeal to the FDDA.

Basic Tax Assessed: refers to:

i. Tax due shown on the Assessment Notice, net of any basic tax paid prior to the effectivity of RR No. 4-
2019, exclusive of civil penalties;
ii. The computed basic tax liabilities as shown in the criminal complaint filed by the BIR with the
DOJ/Prosecutor’s Office or int eh information filed in the Courts for violations of tax laws and regulations;
and
iii. The basic tax liabilities as per Court’s final and executory decision.

Deficiency Withholding Taxes in assessments or tax cases: the tax rate shall still be 100% under letter D above,
even in cases of non-remittance of withholding taxes falling under letters A, B and C above.

With Pending Compromise Settlement Application under letter A above: if the delinquent tax is subject of an
application for compromise settlement, whether denied or pending, the amount of payment shall be based on
the NET basic tax as certified by the concerned office.
ILLUSTRATION: B Company received a Final Assessment Notice with a P1,000,000 basic tax deficiency. It applied for
compromise and paid P400,000 as the minimum amount required. If B Company applied for Tax Amnesty, how much
would it pay?
Basic Tax per FAN P1,000,000
Basic Tax paid per Compromise Settlement Application (400,000)
Net Basic Tax prior to the effectivity of the Regulation 600,000
Amnesty Rate 40%
Amnesty Tax to be paid P240,000

Partial/Installment Payments: the amount of payment shall be based on the NET amount as certified by the
concerned office.

b. When and Where to File: Any person, natural or juridical, who wishes to avail of the Tax Amnesty on
Delinquencies shall, within one year from the effectivity of the IRR file with the appropriate office of the BIR,
which has jurisdiction over the residence or principal place of business of the taxpayer, a sworn Tax Amnesty
on Delinquencies Return accompanied by a Certification of Delinquency.

The payment of the amnesty tax shall be made at the time of the filing of the Return. Similar to the Estate Tax
Amnesty, the RDO shall issue and endorse an Acceptance Payment Form authorizing the authorized agent bank,
or in the absence thereof, the revenue collection agent or municipal treasurer concerned, to accept the amnesty
tax payment.

c. No admission of liability: the availment of the Tax Amnesty on Delinquencies and the issuance of the
corresponding Acceptance Payment Form do not imply admission of criminal, civil or administrative liability on
the part of the availing taxpayer.

d. Immunities and Privileges: The tax delinquency of those who avail of the Tax Amnesty on Delinquencies and
have fully complied with all the conditions and upon payment of the amnesty tax shall be considered settled
and the criminal case under Sec. 18(c) of the Tax Code, as amended, as such relate to the taxpayer’s assets,
liabilities, networth and internal revenue taxes that are subject of the tax amnesty, and from such other
investigations or suits.

e. Proof of Availment and Compliance; effects thereof: Any notices of levy, attachments and/or warrants of
garnishment issued against the taxpayer shall be set aside pursuant to the lifting of notice of levy/garnishment
duly issued by the BIR.

The Authority to Cancel Assessment shall be issued in favor of the taxpayer within 15 days from submission to
the BIR of the Acceptance Payment Form and the Tax Amnesty on Delinquencies Return. Otherwise, the
duplicate copies, stamped as received, of the Acceptance Payment Form, and the Tax Amnesty on Delinquencies
Return shall be deemed sufficient proof of availment.

The Form and the Return shall be submitted to the RDO after complete payment and the completion of these
requirements shall be deemed full
compliance with the provisions of the TAA.

After full compliance with all the conditions and payment of the corresponding tax on delinquency, the tax
amnesty granted shall become final and irrevocable.

Confidentiality and Non-Use of Information and Data: any information or data contained in, derived from or provided by
the taxpayer in the Tax Amnesty Return and appurtenant documents shall be confidential in nature and shall not be
used in any investigation or prosecution before any judicial, quasi-judicial and administrative bodies.

Documents:

Document BIR Form/Reference

Tax Amnesty Return BIR Form No. 2118-DA (Annex A of RR No. 4-19)
Acceptance Payment Form BIR Form No. 0621-DA (Annex B of RR No. 4-19)
Certificate of Tax Delinquencies/Tax Liabilities Annex C of RR No. 4-2019