REPUBLIC ACT NO. 8424TAX REFORM ACT OF 1997AN ACT AMENDING THE
NATIONAL INTERNAL REVENUECODE, AS AMENDED, AND FOR OTHER PURPOSESBe
it enacted by the Senate and House of Representatives ofthe
Philippines in Congress assembled:SECTION 1. Sho! T"!#$ - This Act
shall be cited as the Ta!Reform Act of "##$%SECTION 2. S!%!$
Po#"&'. & 't is hereby declared the policyof the State to
promote sustainable economic gro(th throughthe rationali)ation of
the Philippine internal revenue ta!system* including ta!
administration+ to provide* as much aspossible* an e,uitable relief
to a greater number of ta!payersin order to improve levels of
disposable income and increaseeconomicactivity+ andtocreatearobust
environment forbusiness to enable -rms to compete better in the
regional as(ellas the globalmar.et* at the same time that the
Stateensures that /overnment is able to provide for the needs
ofthose under its 0urisdiction and care%SECTION (. P$)"*$+!"%#
D$&$$ No. 11,8* as amendedby* among others* Presidential 1ecree
2o% "##3 and4!ecutive5rder2o% 6$7*
other(ise.no(nasthe2ational'nternal Revenue Code* is hereby further
amended%TITLE I ORGANI-ATION AND FUNCTION OF THE BUREAUOF INTERNAL
REVENUESECTION 1. T"!#$ o. !h$ Co*$. - This Code shall be .no(nas
the 2ational 'nternal Revenue Code of
"##$%SEC.2.Po/$)%+**0!"$)o.!h$B0$%0o.I+!$+%#R$1$+0$. -The Bureau of
'nternal Revenue shallbe underthe supervision and control of the
1epartment of 8inance andits po(ers and duties shall comprehend the
assessment andcollectionof all national internal revenueta!es*
fees* andcharges* andtheenforcement of all forfeitures*
penalties*and-nesconnectedthere(ith*
includingthee!ecutionof0udgments in all cases decided in its favor
by the Court of Ta!Appeals and the ordinary courts% The Bureau
shall give e9ectto and administer the supervisory and police
po(ersconferred to it by this Code or other la(s%SEC. (. Ch"$.
O2&"%#) o. !h$ B0$%0 o. I+!$+%#R$1$+0$. - TheBureauof 'nternal
Revenueshall haveachief tobe.no(nas Commissioner of 'nternal
Revenue*hereinafter referredtoas theCommissioner andfour
:3;assistant chiefs to be .no(n as 1eputy Commissioners%SEC. 4.
Po/$o.!h$Co33"))"o+$!oI+!$4$!T%5L%/) %+* !o D$&"*$ T%5 C%)$). -
The po(er to interpretthe provisions of this Code and other ta!
la(s shall be underthee!clusiveandoriginal
0urisdictionoftheCommissioner*sub0ect to revie( by the Secretary of
8inance%The po(er to decide disputed assessments* refunds
ofinternal revenue ta!es* fees or other charges*
penaltiesimposedinrelationthereto* orothermattersarisingunderthis
Code or other la(s or portions thereof administered bythe Bureau of
'nternal Revenue is vested in theCommissioner* sub0ect to the
e!clusive appellate 0urisdictionof the Court of Ta! Appeals%SEC. ,.
Po/$ o. !h$ Co33"))"o+$ !o O6!%"+I+.o3%!"o+, %+* !o S033o+,
E5%3"+$, %+* T%7$T$)!"3o+' o. P$)o+). - 'n ascertaining the
correctness ofany return* or in ma.ing a return (hen none has been
made*or in determining the liability of any person for any
internalrevenue ta!* or in collecting any such liability* or
inevaluating ta! compliance* the Commissioner is authori)ed::A; To
e!amine any boo.* paper* record* or other data (hichmay be relevant
or material to such in,uiry+:B; To 5btain on a regular basis from
any person other thanthe person (hose internal revenue ta!
liability is sub0ect toaudit or investigation* or fromanyo0$). -
The Commissioner* the1eputy Commissioners* the Revenue Regional
1irectors* theRevenue 1istrict 5hen to 8ile% - 5n or before the
date of commencement ofemployment(ithanemployer* theemployeeshall
furnishthe employer (ith a signed (ithholding e!emption
certi-caterelating to the personal and additional e!emptions to
(hichhe is entitled%:b; Changeof Status% - 'ncaseof changeof
statusof anemployeeasaresult of (hichhe(ouldbeentitledtoalesser or
greater amount of e!emption* the employee shall*(ithin ten :"B;
days from such change* -le (ith the employera ne( (ithholding
e!emption certi-cate re?ecting thechange%:c; Ise of Certi-cates% -
The certi-cates -led hereunder shallbe used by the employer in the
determination of the amountof ta!es to be (ithheld%:d;
8ailureto8urnishCerti-cate% - >hereanemployee* inviolationof
this Chapter* either fails or refuses to-lea(ithholding e!emption
certi-cate* the employer shall(ithholdtheta!esprescribedunder
theschedulefor )eroe!emption of the (ithholding ta! table
determined pursuantto Subsection :A; hereof%CED ?"!hho#*"+; o+
B%)") o. A1$%;$ ?%;$)% - TheCommissioner may* under rules and
regulations promulgatedby the Secretary of 8inance* authori)e
employers to::"; estimate the (ages (hich (ill be paid to an
employee inany ,uarter of the calendar year+:6; determine the
amount to be deducted and (ithheld uponeach payment of (ages to
such employee during such,uarter as if the appropriate average of
the (ages soestimated constituted the actual (ages paid+ and:7;
deduct and (ithhold upon any payment of (ages to suchemployee
during +such ,uarter such amount as may
bere,uiredtobedeductedand(ithheldduringsuch,uarter(ithout regard to
this Subsection%CFD H0)6%+* %+* ?".$% - >hen a husband and (ife
eacharerecipients of (ages* (hether fromthesameor fromdi9erent
employers* ta!es to be (ithheld shall be determinedon the follo(ing
bases::"; The husband shall be deemed the head of the family
andproper claimant of the additional e!emption in respect to
anydependentchildren* unlesshee!plicitly(aiveshisrightinfavor of
his (ife in the (ithholding e!emption certi-cate%:6; Ta!esshall
be(ithheldfromthe(agesof the(ifeinaccordance (ith the schedule for
)ero e!emption of the(ithholding ta! table prescribed in Subsection
:1;:6;:d;hereof%CGD No+$)"*$+! A#"$+)% - >ages paid to
nonresident
alienindividualsengagedintradeorbusinessinthePhilippinesshall be
sub0ect to the provisions of this Chapter%CHDE$%:$+* A*@0)!3$+!%
-5norbeforetheendof thecalendar year but prior to the payment of
the compensationfor the last payroll period* the employer shall
determine theta! due fromeach employee on ta!able
compensationincome for the entire ta!able year in accordance (ith
Section63:A;% The di9erence bet(een the ta! due from theemployee
for the entire year and the sum of ta!es (ithheldfrom Danuary to
2ovember shall either be (ithheld from hissalary in 1ecember of the
current calendar year or refundedto the employee not later than
Danuary 6C of the succeedingyear%SEC. 8=. L"%6"#"!' .o T%5% -CAD
E34#o'$% - The employer shall be liable for
the(ithholdingandremittanceof thecorrect amount of ta!re,uired to
be deducted and (ithheld under this Chapter% 'fthe employer fails
to (ithhold and remit the correct amountof ta! as re,uired to be
(ithheld under the provision of thisChapter* such ta! shall be
collected fromthe employertogether (ith the penalties or additions
to the ta! other(iseapplicable in respect to such failure to
(ithhold and remit%CBD E34#o'$$% - >here an employee fails or
refuses to -lethe (ithholding e!emption certi-cate or (illfully
suppliesfalse or inaccurate information thereunder* the ta!
other(isere,uiredtobe(ithheldbytheemployershall becollectedfrom him
including penalties or additions to the ta! from theduedateof
remittanceuntil thedateof payment% 5ntheother hand* e!cess ta!es
(ithheld made by the employer dueto::"; failure or refusal to -le
the (ithholding e!emptioncerti-cate+ or:6; false and inaccurate
information shall not be refunded tothe employee but shall be
forfeited in favor of the/overnment%SEC. 81. F"#"+; o. R$!0+ %+*
P%'3$+! o. T%5$)?"!hh$#*% - 4!cept as the Commissioner other(ise
permits*ta!es deducted and (ithheld by the employer on (ages
ofemployees shall becoveredby a returnandpaidtoanauthori)ed agent
ban.+ Collection Agent* or the dulyauthori)edTreasurer of thecityor
municipality(heretheemployer has his legal residence or principal
place ofbusiness* or in case the employer is a corporation* (here
theprincipal ohere theproperty referred to consists of t(o or more
items* theaggregate value of such items shall be used for the
purposeof computing the deduction%:7; Transfers for Public Ise% -
The amount of all the be,uests*legacies* devises or transfers to or
for the use of the/overnment of the Republic of the Philippines* or
any politicalsubdivision thereof* for e!clusively public
purposes%:3; The 8amily Home% - An amount e,uivalent to the
currentfairmar.etvalueofthedecedentKsfamilyhome:Provided*ho(ever*
That if the said current fair mar.et value e!ceeds5ne million pesos
:P"*BBB*BBB;* the e!cess shallbe sub0ectto estate ta!% As a sine
,ua non condition for the e!emptionor deduction* said family home
must have been thedecedentKs family home as certi-ed by the
barangay captainof the locality%:C; Standard 1eduction% - An amount
e,uivalent to 5nemillion pesos :P"*BBB*BBB;%:=; Hedical 4!penses% -
Hedical 4!pensesincurredbythedecedent (ithin one :"; year prior to
his death (hich shall bedulysubstantiated(ithreceipts: Provided*
Thatinnocaseshall the deductible medical e!penses e!ceed 8ive
HundredThousand Pesos :PCBB*BBB;%:$; Amount Received by Heirs Inder
Republic Act 2o% 3#"$% -Any amount received by the heirs fromthe
decedent -employeeasaconse,uenceofthedeathofthedecedent-employee in
accordance (ith Republic Act 2o% 3#"$:Provided* That such amount is
included in the gross estate ofthe decedent%CBD D$*0&!"o+)
A##o/$* !o No+$)"*$+! E)!%!$)% - 'n thecaseof anonresident not
aciti)enof thePhilippines* bydeductingfromthevalueof that part of
hisgrossestate(hich at the time of his death is situated in the
Philippines::"; 4!penses* Gosses* 'ndebtedness and Ta!es% -
Thatproportionof thedeductionsspeci-edinparagraph:"; ofSubsection
:A; of this Section (hich the value of such partbears to the value
of his entire gross estate (hereversituated+:6; Property Previously
Ta!ed% - An amount e,ual to the valuespeci-edbelo(of
anypropertyformingpart of thegrossestatesituatedinthePhilippinesof
anyperson(hodied(ithin -ve :C; years prior to the death of the
decedent* ortransferred to the decedent by gift (ithin -ve :C;
years priorto his death* (here such property can be identi-ed as
havingbeenreceivedbythedecedent fromthedonor bygift* orfrom such
prior decedent by gift* be,uest* devise orinheritance* or (hich can
be identi-ed as having beenac,uired in e!change for property so
received:5ne hundred percent :"BBJ; of the value if the
priordecedent died (ithin one :"; year prior to the death of
thedecedent* or if the property (as transferred to him by
gift*(ithin the same period prior to his death+4ighty percent :EBJ;
of the value* if the prior decedent diedmore than one :"; year but
not more than t(o :6; years priorto the death of the decedent* or
if the property (astransferred to him by gift (ithin the same
period prior to hisdeath+Si!ty percent :=BJ; of the value* if the
prior decedent diedmore than t(o :6; years but not more than three
:7; yearspriortothedeathof thedecedent* orif
theproperty(astransferred to him by gift (ithin the same period
prior to hisdeath+8orty percent :3BJ; of the value* if the prior
decedent diedmore than three :7; years but not more than four :3;
yearspriortothedeathof thedecedent* orif theproperty(astransferred
to him by gift (ithin the same period prior to hisdeath+ andT(enty
percent :6BJ; of the value* if the prior decedent
diedmorethanfour:3;yearsbutnotmorethan-ve:C;yearspriortothedeathof
thedecedent* orif theproperty(astransferred to him by gift (ithin
the same period prior to hisdeath%These deductions shall be allo(ed
only (here a donorKs ta!*or estate ta! imposedunder thisTitle is
-nallydeterminedand paid by or on behalf of such donor* or the
estate of suchprior decedent* as the case may be* and only in the
amount-nally determined as the value of such property indetermining
the value of the gift* or the gross estate of suchprior decedent*
and only to the e!tent that the value of suchpropertyis
includedinthat part of thedecedentKs grossestate(hichat thetimeof
his deathis situatedinthePhilippines+ and only if* in determining
the value of the netestate of the prior decedent* no deduction is
allo(able underparagraph :6; of Subsection :B; of this Section* in
respect ofthe property or properties given in e!change
therefore%>here a deduction (as allo(ed of any mortgage or other
lienin determining the donorKs ta!* or the estate ta! of the
priordecedent* (hich(aspaidin(holeor inpart prior
tothedecedentKsdeath*
thenthedeductionallo(ableundersaidparagraphshall
bereducedbytheamount sopaid% Suchdeductionallo(ableshall
bereducedbyanamount (hichbears the same ratio to the amounts
allo(ed as deductionsunder paragraphs :"; and :7; of this
Subsection as
theamountother(isedeductibleunderparagraph:6;bearstothe value of
that part of the decedentKs gross estate (hich atthe time of his
death is situated in the Philippines% >here
thepropertyreferredtoconsistsoft(o:6;ormoreitems* theaggregate
value of such items shall be used for the purposeof computing the
deduction%:7; TransfersforPublicIse% - Theamountof all
be,uests*legacies* devises or transfers to or for the use of
the/overnment of the Republic of the Philippines or any
politicalsubdivision thereof* for e!clusively public purposes%CCD
Sh%$ "+ !h$ Co+@0;%# Po4$!'% - the net share of thesurviving spouse
in the con0ugal partnership property
asdiminishedbytheobligationsproperlychargeabletosuchproperty shall*
for the purpose of this Section* be deductedfrom the net estate of
the decedent%CDD M")&$##%+$o0) Po1")"o+)% - 2o deduction shall
beallo(edinthecaseof anonresident not aciti)enof thePhilippines*
unless the e!ecutor* administrator* or anyone ofthe heirs* as the
case may be* includes in the return re,uiredto be -led under
Section #B the value at the time of his deathof that part of the
gross estate of the nonresident notsituated in the Philippines%CED
T%5 C$*"! .o E)!%!$ T%5$) 4%"* !o % Fo$";+Co0+!'% -:"; 'n /eneral%
- The ta! imposedby this Title shall becredited (ith the amounts of
any estate ta! imposed by theauthority of a foreign
country%:6;GimitationsonCredit% -Theamountofthecreditta.enunder
this Section shallbe sub0ect to each of the
follo(inglimitations::a; The amount of the credit in respect to the
ta! paid to anycountryshall not e!ceedthesameproportionof
theta!against (hich such credit is ta.en* (hich the decedentKs
netestate situated (ithin such country ta!able under this
Titlebears to his entir net estate+ and:b; The total amount of the
credit shall not e!ceed the sameproportionof theta!against
(hichsuchcredit is ta.en*(hich the decedentKs net estate situated
outside thePhilippinesta!ableunder
thisTitlebearstohisentirenetestate%SEC. 87 E5$34!"o+ o. C$!%"+
A&90")"!"o+) %+*T%+)3"))"o+)% - The follo(ing shall not be
ta!ed::A; The merger of usufruct in the o(ner of the na.ed
title+:B; The transmission or delivery of the inheritance or
legacyby the -duciary heir or legatee to the -deicommissary+:C; The
transmission from the -rst heir* legatee or donee infavor of
another bene-ciary* in accordance (ith the desire ofthe
predecessor+ and:1; All be,uests* devises* legacies or transfers to
social(elfare* cultural and charitable institutions* no part of the
netincomeof (hichinsures tothebene-t of anyindividual:Provided*
ho(ever* That not more than thirty percent :7BJ;of the said
be,uests* devises* legacies or transfers shall beused by such
institutions for administration purposes%SEC. 88. D$!$3"+%!"o+ o.
!h$ V%#0$ o. !h$ E)!%!$. :CAD U)0.0&!% - To determine the value
of the right ofusufruct* use or habitation* as (ell as that of
annuity* thereshall be ta.en into account the probable life of
thebene-ciary in accordance (ith the latest Basic StandardHortality
Table* to be approved by the Secretary of 8inance*upon
recommendation of the 'nsurance Commissioner%CBDPo4$!"$)% -
Theestateshall beappraisedatitsfairmar.et value as of the time of
death% Ho(ever* the appraisedvalueof real property as of thetimeof
deathshall be*(hichever is higher of -:"; The fair mar.et value as
determined by theCommissioner* or:6; The fair mar.et value as sho(n
in the schedule of values-!ed by the Provincial and City
Assessors%SEC. 89.No!"&$o.D$%!h!o6$F"#$*% - 'nall
casesoftransfers sub0ect to ta!* or (here* though e!empt from
ta!*the gross value of the estate e!ceeds T(enty thousand
pesos:P6B*BBB;* thee!ecutor* administrator or anyof thelegalheirs*
as the case may be* (ithin t(o :6; months after thedecedentKs
death* or (ithin a li.e period after ,ualifying assuche!ecutor or
administrator* shall givea(rittennoticethereof to the Commissioner%
SEC. 9=. E)!%!$ T%5 R$!0+). :CAD R$90"$3$+!)% - 'n all cases of
transfers sub0ect to theta! imposed herein* or (here* though e!empt
from ta!* thegross valueof theestatee!ceeds
T(ohundredthousandpesos:P6BB*BBB;* or regardlessof thegrossvalueof
theestate* (here the said estate consists of registered
orregistrablepropertysuchas real property* motor vehicle*shares of
stoc. or other similar property for (hich aclearance from the
Bureau of 'nternal Revenue is re,uired asa condition precedent for
the transfer of o(nership thereof inthe name of the transferee* the
e!ecutor* or theadministrator* or any of the legal heirs* as the
case may be*shall -le a return under oath in duplicate* setting
forth::"; The value of the gross estate of the decedent at the
timeof his death* or in case of a nonresident* not a citi)en of
thePhilippines* of thatpartof
hisgrossestatesituatedinthePhilippines+:6; The deductions allo(ed
from gross estate in determiningthe estate as de-ned in Section E=+
and:7; Suchpart of suchinformationasmayat thetimebeascertainable
and such supplemental data as may benecessary to establish the
correct ta!es%Provided* ho(ever* That estate ta! returns sho(ing a
grossvalue e!ceeding T(o million pesos :P6*BBB*BBB; shall
besupported(ithastatementdulycerti-edtobyaCerti-edPublic Accountant
containing the follo(ing::a; 'temi)ed assets of the decedent (ith
their correspondinggrossvalueat thetimeof hisdeath* or inthecaseof
anonresident* not a citi)en of the Philippines* of that part of
hisgross estate situated in the Philippines+:b; 'temi)ed deductions
from gross estate allo(ed in SectionE=+ and:c; Theamount of
ta!due(hether paidor still dueandoutstanding%CBDT"3$.ohere the
ta!es are assessed by reason of negligence*intentional disregard of
rules and regulations* or fraud on thepart of theta!payer*
noe!tension(ill begrantedbytheCommissioner%'f an e!tension is
granted* the Commissioner may re,uire thee!ecutor* oradministrator*
orbene-ciary* asthecasemaybe* to furnish a bond in such amount* not
e!ceeding doublethe amount of the ta! and (ith such sureties as
theCommissioner deems necessary* conditioned upon thepayment of the
said ta! in accordance (ith the terms of thee!tension%CCD
L"%6"#"!'.o P%'3$+! - Theestateta! imposedbySectionE3shall
bepaidbythee!ecutor or administratorbefore delivery to any
bene-ciary of his distributive share ofthe estate% Such bene-ciary
shall to the e!tent of hisdistributive share of the estate* be
subsidiarily liable for thepayment of such portion of the estate
ta! as his distributiveshare bears to the value of the total net
estate%8or the purpose of this Chapter* the termKe!ecutorK
orKadministratorK meansthee!ecutor or administrator of thedecedent*
or if there is no e!ecutor or administratorappointed* ,uali-ed* and
acting (ithin the Philippines* thenany person in actual or
constructive possession of anyproperty of the decedent%SEC. 92.
D")&h%;$ o. E5$&0!o o A*3"+")!%!o .o3P$)o+%# L"%6"#"!'. -
'f the e!ecutor or administrator ma.esa (ritten application to the
Commissioner for determinationof the amount of the estate ta! and
discharge from personalliabilitytherefore* theCommissioner
:assoonaspossible*and in any event (ithin one :"; year after the
ma.ing of suchapplication* or if the application is made before the
return is-led* then (ithin one :"; year after the return is -led*
but notafter the e!piration of the period prescribed for
theassessment of theta!inSection6B7shall not notifythee!ecutor or
administrator of theamount of theta!% Thee!ecutororadministrator*
uponpaymentoftheamountof(hich he is noti-ed* shall be discharged
frompersonalliability for any de-ciency in the ta! thereafter found
to bedue and shall be entitled to a receipt or (riting sho(ing
suchdischarge%SEC. 9(. D$hen the amount secured does not e!ceed
8ive thousandpesos :PC*BBB;* T(enty pesos :P6B%BB;%:b; 5n each 8ive
thousand pesos :PC*BBB;* or fractional partthereof in e!cess of
8ive thousand pesos :PC*BBB;* anadditional ta! of Ten pesos
:P"B%BB;%5n any mortgage* pledge* or deed of trust* (here the
sameshall be made as a security for the payment of a
?uctuatingaccount or future advances (ithout -!ed limit*
thedocumentary stamp ta! on such mortgage* pledge or deed oftrust
shall becomputedontheamount actuallyloanedorgiven at the time of
the e!ecution of the mortgage* pledge ordeedof trust* additional
documentarystampta!shall bepaid(hichshall becomputedonthebasisof
theamountadvanced or loaned attheratesspeci-ed above:
Provided*ho(ever* That if the full amount of the loan or credit*
grantedunder the mortgage* pledge or deed of trust shall becomputed
on the amount actually loaned or given at the
timeofthee!ecutionofthemortgage* pledgeordeedoftrust%Ho(ever* if
subse,uent advances are made on suchmortgage* pledgeordeedoftrust*
additional documentarystamp ta! shall be paid (hich shall be
computed on the basisof theamount advancedor loanedat
theratesspeci-edabove: Provided* ho(ever* That if the full amount
of the loanor credit* grantedunder themortgage* pledgeor
deedoftrust is speci-ed in such mortgage* pledge or deed of
trust*the documentary stamp ta! prescribed in this Section shallbe
paid and computed on the full amount of the loan or
creditgranted%SEC. 198. S!%34 !%5 o+ D$$*) o. S%#$
%+*Co+1$'%+&$) o. R$%# Po4$!'. : 5n all conveyances*deeds*
instruments* or (ritings* other than grants* patents ororiginal
certi-cates of ad0udication issued by the/overnment*
(herebyanyland* tenement* or other realtysold shall be granted*
assigned* transferred or other(iseconveyedtothepurchaser*
orpurchasers* ortoanyotherperson or persons designated by such
purchaser orpurchasers* thereshall becollectedadocumentarystampta!*
at the rates herein belo(prescribed* based on theconsideration
contracted to be paid for such realty or on itsfair mar.et value
determined in accordance (ith Section =:4;of this Code* (hichever
is higher: Provided* That (hen one ofthecontractingparties is
the/overnment theta!hereinimposed shall be based on the actual
consideration%:a; >hen the consideration* or value received or
contractedto be paid for such realty after ma.ing proper allo(ance
ofany encumbrance* does not e!ceed5nethousandpesos:P"*BBB; -fteen
pesos :P"C%BB;%:b; 8or each additional 5ne thousand Pesos :P"*BBB;*
orfractional part thereof in e!cess of 5ne thousand pesos:P"*BBB;
of such consideration or value* 8ifteen pesos:P"C%BB;%>hen it
appears that the amount of the documentary stampta!payablehereunder
has beenreducedbyanincorrectstatement of theconsiderationinany
conveyance* deed*instrument or (riting sub0ect to such ta! the
Commissioner*provincial or cityTreasurer* or other
revenueohenanyindividual (hohas paidtheannualregistration fee dies*
and the same business is continued bythe person or persons
interested in his estate* no additionalpayment shall be re,uired
for the residue of the term (hichtheta!(as paid: Provided* ho(ever*
That thepersonorpersonsinterestedintheestateshould*
(ithinthirty:7B;days from the death of the decedent* submit to the
Bureau of'nternal Revenueor theregional or revenue1istrict 5here
the facts subse,uently gathered by the Bureau of'nternal
Revenuearemateriallydi9erentfromthefactson(hich the ruling is
based+ or:c; >here the ta!payer acted in bad faith%TITLE X
STATUTORE OFFENSES AND PENALTIESCHAPTER I : ADDITIONS TO THE
TAXSEC. 247. G$+$%# Po1")"o+). ::a; The additions to
theta!orde-ciency ta! prescribed inthis Chapter shall apply to all
ta!es* fees and chargesimposed in this Code% The Amount so added to
the ta! shallbe collected at the same time* in the same manner and
aspart of the ta!%:b; 'f the (ithholding agent is the /overnment or
any of itsagencies* political subdivisions or instrumentalities* or
agovernment-o(nedorcontrolledcorporation* theemployeethereof
responsible for the (ithholding and remittance of theta!shall
bepersonallyliablefor theadditionstotheta!prescribed
herein%:c;theterm B4$)o+B*asusedinthisChapter*
includesanoaysandHeans of the Senate and House Representatives and
four :3;additional membersfromeachhouse* tobedesignatedbythe
Spea.er of the House of Representatives and the SenatePresident*
respectively%The Committee shall* among others* in aid of
legislation::"; Honitor and ensure the proper implementation
ofRepublic Act 2o% E63B+:6; 1etermine that the po(er of the
Commissioner tocompromise and abate is reasonably e!ercised+:7;
Revie(the collection performance of the Bureau of'nternal Revenue+
and:3; Revie( the implementation of the programs of the Bureauof
'nternal Revenue%'n furtherance of the hereinabove cited
ob0ectives* theCommittee is empo(ered to re,uire of the Bureau of
'nternalRevenue* submissionof all pertinentinformation*
includingbut not limitedto: industryaudits+
collectionperformancedata+ status report on criminal actions
initiated againstpersons+ and submission of ta!payer returns:
Provided*ho(ever* That any return or return information (hich can
beassociated (ith* or other(ise identify* directly or indirectly*
aparticular ta!payer shall befurnishedtheCommitteeonly(hen sitting
in 4!ecutive Session unless such ta!payerother(ise consents in
(riting to such disclosure%TITLE XIII REPEALING PROVISIONSSEC. 291.
I+ G$+$%#. - All la(s* decrees* e!ecutive orders*rules and
regulations or parts thereof (hich are contrary toor inconsistent
(ith this Code are hereby repealed* amendedor modi-ed
accordingly%TITLE XIV FINAL PROVISIONSSEC. 292. S$4%%6"#"!' C#%0)$.
- 'f any clause* sentence*paragraphor part of thisCodeshall
bead0udgedbyanyCourt of competent 0urisdiction to be invalid* such
0udgmentshall nota9ect* impair orinvalidatetheremainderof saidCode*
butshall becon-nedinitsoperationtotheclause*sentence* paragraph or
part thereof directly involved in thecontroversy%
