( UNCONSTITUTIONAL ENDENCIA vs.
DAVID 93 Phil 696 )
Section 1. Section twenty-one of Commonwealth Act
Numbered Four hundred and sixty-six, as amended by Republic Act
Numbered Eighty-two, is further amended to read as follows:
"Sec. 21. Rates of tax on citizens or residents. —
There shall be levied, assessed, collected, and paid annually upon the
entire net income received in the preceding taxable year from all
sources by every individual, a citizen or resident of the Philippines,
a tax equal to the sum of the following:
"Five per centum per annum upon the amount by which such total net
income does not exceed two thousand pesos;
"Eight per centum per annum upon the amount by which such total net
income exceeds two thousand pesos and does not exceed four thousand
pesos;
"Twelve per centum per annum upon the amount by which such total net
income exceeds four thousand pesos and does not exceed six thousand
pesos;
"Eighteen per centum per annum upon the amount by which such total net
income exceeds six thousand pesos and does not exceed ten thousand
pesos;
"Twenty-four per centum per annum upon the amount by which such total
net income exceeds ten thousand pesos and does not exceed twenty
thousand pesos;
"Thirty per centum per annum upon the amount by which such total net
income exceeds twenty thousand pesos and does not exceed thirty
thousand pesos;
"Thirty-six per centum per annum upon the amount by which such total
net income exceeds thirty thousand pesos and does not exceed forty
thousand pesos;
"Forty per centum per annum upon the amount by which such total net
income exceeds forty thousand pesos and does not exceed fifty thousand
pesos;
"Forty-two per centum per annum upon the amount by which such total net
income exceeds fifty thousand pesos and does not exceed sixty thousand
pesos;
"Forty-four per centum per annum upon the amount by which such total
net income exceeds sixty thousand pesos and does not exceed seventy
thousand pesos;
"Forty-six per centum per annum upon the amount by which such total net
income exceeds seventy thousand pesos and does not exceed eighty
thousand pesos;
"Forty-eight per centum per annum upon the amount by which such total
net income exceeds eighty thousand pesos and does not exceed ninety
thousand pesos;
"Fifty per centum per annum upon the amount by which such total net
income exceeds ninety thousand pesos and does not exceed one hundred
thousand pesos;
"Fifty-two per centum per annum upon the amount by which such total net
income exceeds one hundred thousand pesos and does not exceed one
hundred and twenty thousand pesos;
"Fifty-three per centum per annum upon the amount by which such total
net income exceeds one hundred and twenty thousand pesos and does not
exceed one hundred and forty thousand pesos;
"Fifty-four per centum per annum upon the amount by which such total
net income exceeds one hundred and forty thousand pesos and does not
exceed one hundred and sixty thousand pesos;
"Fifty-five per centum per annum upon the amount by which such total
net income exceeds one hundred and sixty thousand pesos and does not
exceed two hundred thousand pesos;
"Fifty-six per centum per annum upon the amount by which such total net
income exceeds two hundred thousand pesos and does not exceed two
hundred and fifty thousand pesos;
"Fifty-seven per centum per annum upon the amount by which such total
net income exceeds two hundred and fifty thousand pesos and does not
exceed three hundred thousand pesos;
"Fifty-eight per centum per annum upon the amount by which such total
net income exceeds three hundred thousand pesos and does not exceed
four hundred thousand pesos;
"Fifty-nine per centum per annum upon the amount by which such total
net income exceeds four hundred thousand pesos and does not exceed five
hundred thousand pesos; and
"Sixty per centum per annum upon the amount by which such total income
exceeds five hundred thousand pesos."
Sec. 2. Subsection (b) of section twenty-two of
Commonwealth Act Numbered Four hundred and sixty-six, as amended by
Republic Act Numbered Eighty-two, is hereby further amended to read as
follows:
"(b) Nonresident alien not engaged in trade of
business within the Philippines or not having an office or place of
business therein. — There shall be levied, assessed, collected, and
paid for each taxable year upon the entire net income received from all
sources within the Philippines by every nonresident alien individual
not engaged in trade or business within the Philippines or not having
an office or place of business therein a tax equal to sixteen per
centum thereof: per annum, That if the total net income of such
nonresident alien individual from all sources within the Philippines
exceeds fourteen thousand seven hundred and fifty pesos, the rates
established in section twenty-one shall apply."
Sec. 3. Subsections (a), (b), (c) and (d) of
section twenty-three of Commonwealth Act Numbered Four hundred and
sixty-six are hereby amended to read as follows:
"Sec. 23. Amount of personal exemptions allowable
to individuals. — For the purpose of the tax per annum for in this
Title, there shall be allowed in the nature of a deduction from the
amount of net income the following personal exemptions:
"(a) Personal exemption of single individuals. — The
sum of one thousand eight hundred pesos, if the person making the
return is a single person or a married person legally separated from
his or her spouse.
"(b) Personal exemption of married persons or heads
of family. — The sum of three thousand pesos, if the person making the
return is a married man with a wife not legally separated from him or a
married woman with a husband not legally separated from her, or the
head of a family:Provided, That only one exemption of three thousand
pesos shall be made from the aggregate income of both husband and wife
when not legally separated. For the purpose of this section, the term
'head of a family' includes an unmarried man or woman with one or both
parents, or one or more brothers or sisters, or one or more legitimate,
recognized natural, or adopted children dependent upon him or her for
their chief support where such brothers, sisters, of children are less
than twenty-one years of age or where such children are incapable of
self-support because mentally or physically defective.
"(c) Additional exemption for dependents. — The sum
of six hundred pesos for each legitimate, recognized natural, or
adopted child wholly dependent upon the taxpayer, if such dependents
are under twenty-one years of age, or incapable of self-support because
mentally or physically defective. The additional exemption under this
subsection shall be allowed only if the person making the return is the
head of the family.
"(d) Change of status. — If the status of the
taxpayer insofar as it affects the personal and additional exemption
for himself or his dependents, changes during the taxable year by
reason of his death, the amount of the personal and additional
exemptions shall be apportioned, under rules and regulations prescribed
by the Secretary of Finance, in accordance with the number of months
before and after such change. For the purpose of such apportionment a
fractional part of a month shall be disregarded unless it amounts to
more than half a month, in which case it shall be considered as a
month."
Sec. 4. Section twenty-four of Commonwealth Act
Numbered Four hundred and sixty-six, as amended by Republic Act
Numbered Eighty-two, is hereby further amended to read as follows:
"Sec. 24. Rate of tax on corporations. — There
shall be levied, assessed, collected, and paid annually upon the total
net income received in the preceding taxable year from all sources by
every corporation organized in, or existing under the laws of the
Philippines, no matter how created or organized, but not including duly
registered general copartnerships (companias colectivas), a tax of
sixteen per centum upon such income; and a like tax shall be levied,
assessed, collected, and paid annually upon the total net income
received in the preceding taxable year from all sources within the
Philippines by every corporation organized, authorized, or existing
under the laws of any foreign country: Provided, however, That Building
and Loan Associations operating as such in accordance with section one
hundred and seventy-one to one hundred and ninety of the Corporation
Law, as amended, shall pay a tax of nine per centum on their total net
income: And provided, further, That in the case of dividends received
by a domestic or resident foreign corporation from a domestic
corporation liable to tax under this Chapter, only twenty-five per
centum thereof shall be returnable for purposes of the tax imposed by
this section."
Sec. 5. Section thirty of Commonwealth Act
Numbered Four hundred and sixty-six, as amended, is hereby further
amended by adding thereto a new subsection which shall read as
follows:
"(j) Optional standard deduction. — In lieu of the
deductions allowed under this section an individual, other than a
nonresident alien, may elect a standard deduction. Such optional
standard deduction shall be in the amount of one thousand pesos or in
an amount equal to ten per centum of his gross income, whichever is the
lesser. Unless the taxpayer signifies in his return his intention to
elect the optional standard deduction he shall be considered as having
availed himself of the deductions allowed in the preceding subsection.
The Secretary of Finance shall prescribe the manner of the election.
Such election when made in return shall be irrevocable for the taxable
year for which the return is made."
Sec. 6. Subsection (a) of section forty-five of
Commonwealth Act Numbered Four hundred and sixty-six is hereby amended
to read as follows:
"Sec. 45. Individual returns. — (a) Requirement. —
(1) Every citizen of the Philippines of lawful age, whether residing at
home or abroad and, (2) every person residing in the Philippines,
though not a citizen thereof, having a gross income of one thousand
eight hundred pesos or over, including dividends, for the taxable year,
and (3) every nonresident alien deriving income from sources within the
Philippines regardless of amount, shall file an income tax return, in
duplicate, setting forth specifically the gross amount of income from
all sources and deducting from the total thereof the aggregate items of
allowances authorized under this Title, in such form and manner as the
Collector of Internal Revenue, with the approval of the Secretary of
Finance, may prescribe."
Sec. 7. Subsections (a) and (b) of section
fifty-three of Commonwealth Act Numbered Four hundred and sixty-six, as
amended by Republic Act Numbered Eighty-two, is hereby further amended
to read as follows:
"(a) Tax-free covenant bonds. — (1) Requirement of
withholding. — In any case where bonds, mortgages, deeds of trust, or
other similar obligations of domestic or resident foreign corporations,
contain a contract or provision by which the obligor agrees to pay any
portion of the tax imposed by this Title upon the obligee or to
reimburse the obligee for any portion of the tax or to pay the interest
without deduction for any tax which the obligor may be required or
permitted to pay thereon or to retain therefrom under any law of the
Philippines, or of any state or country, the obligor shall deduct and
without a tax equal to sixteen per centum of the interest upon such
bonds, mortgages, deeds of trust, or other obligations, whether such
interest is payable annually or at shorter or longer periods, and
whether such bonds, obligations, or securities had been heretofore or
are hereafter issued or marketed, and the interest thereon paid, with
or without the Philippines if such interest is payable to a nonresident
alien individual or to a citizen or resident of the Philippines.
"(2) Benefit of exemptions against net income. — Such
deduction and withholding shall not be required in the case of a
citizen or resident entitled to receive such interest if such person
shall file with the withholding agent, on or before February first, a
signed notice in writing claiming the benefit of the exemption provided
in section twenty-three of this Title.
"(b) Nonresident aliens. — All persons, corporations
and general copartnerships (companias colectivas), in what ever
capacity acting, including lessees or mortgagors of real or personal
property, trustees acting in any trust capacity, executors,
administrators, receivers, conservators, fiduciaries, employers, and
all officers and employees of the Government of the Philippines having
the control, receipt, custody, disposal, or payment of interest,
dividends, rents, salaries, wages, premiums, annuities, compensations,
remunerations, emoluments, or other fixed or determinable annual or
periodical, gains, profits, and income of any nonresident alien
individual, not engaged in trade or business within the Philippines and
not having any office or place of business therein, shall (except in
the cases provided for in subsection (a) of this section) deduct and
withhold from such annual or periodical gains, profits, and income a
tax equal to sixteen per centum thereof: Provided, That no such
deduction or withholding shall be required in the case of dividends
paid by a foreign corporations unless (1) such corporation is engaged
in trade or business within the Philippines or has an office or place
of business therein, and (2) more than eighty-five per centum of the
gross income of such corporation for the three-year period ending with
the close of its taxable year preceding the declaration of such
dividends (or for such part of such period as the corporation has been
in existence) was derived from sources within the Philippines as
determined under the provisions of section thirty-seven: Provided,
further, That the Collector of Internal Revenue may authorize such tax
to be deducted and withheld from the interest upon any securities the
owners of which are not known to the withholding agent."
Sec. 8. Section fifty-four of Commonwealth Act
Numbered Four hundred and sixty-six, as amended by Republic Act
Numbered Eighty-two, is further amended to read as follows:
"Sec. 54. Payment of corporation income tax at
source. — In the case of foreign corporations subject to taxation under
this Title not engaged in trade or business within the Philippines and
not having any office or place of business therein there shall be
deducted and withheld at the source in the same manner and upon the
same items as is provided in section fifty-three a tax equal to
eighteen per centum thereof, and such tax shall be returned and paid in
the same manner and subject to the same conditions as provided in that
section."
Sec. 9. Section fifty-eight of Commonwealth Act
Numbered Four hundred and sixty-six is hereby amended to read as
follows:
"Sec. 58. Exemption allowed to estates and trusts.
— For the purpose of the tax provided for in this Title, there shall be
allowed an exemption of one thousand eight hundred pesos from the
income of the estate or trust."
Section 10. Section sixty-one of Commonwealth Act
Numbered Four hundred and sixty-six is hereby amended to read as
follows:
"Sec. 61. Fiduciary returns. — Guardians,
trustees, executors, administrators, receivers, conservators, and all
persons or corporations, acting in any fiduciary capacity, shall
render, in duplicate, a return of the income of the person, trust, or
estate for whom or for which they act, and be subject to all the
provisions of this Title, which apply to individuals in case such
person, estate, or trust has a gross income of one thousand eight
hundred pesos or over during the taxable year. Such fiduciary or person
filing the return for him or it, shall take oath that he has sufficient
knowledge of the affairs of such persons, trust, or estate to enable
him to make such return and that the same is, to the best of his
knowledge and belief, true and correct, and be subject to all the
provisions of this Title which apply to individuals: Provided, That a
return made by or for one of two or more joint fiduciaries filed in the
province where such fiduciary resides, under such regulations as the
Secretary of Finance may prescribed, shall be a sufficient compliance
with the requirements of this section."
Section 11. Section seventy-seven of Commonwealth Act
Numbered Four hundred and sixty-six is hereby amended to read as
follows:
"Sec. 77. Information at source as to payments of
one thousand eight hundred pesos or more. — All persons, corporations
or duly registered copartnerships (companias colectivas), in whatever
capacity acting, including lessees or mortgagors of real or personal
property, trustees acting in any trust capacity, executors,
administrators, receivers, conservators, and employees, making payment
to another person, corporation, or duly registered general
copartnership (compania colectiva), of interest, rents, salaries,
wages, premiums, annuities, compensations, remunerations, emoluments,
or other fixed or determinable gains, profits, and income, other than
payments described in sections seventy-five and seventy-nine, of one
thousand eight hundred pesos or more in any taxable year, or, in the
case of such payments made by the Government of the Philippines, the
officers or employees of the Government having information as to such
payments and required to make returns in regard thereto, are authorized
and required to render a true and accurate return to the Collector of
Internal Revenue, under such rules and regulations and in such form and
manner as may be prescribed by the Secretary of Finance, setting forth
the amount of such gains, profits, and income, and the name and address
of the recipient of such payment: Provided, That such returns shall be
required, regardless of amount in the case of payments of interest upon
bonds and mortgages or deeds of trust or other similar obligations of
corporations, and in the case of collections of items, not payable in
the Philippines, of interest upon the bonds of foreign countries and
interest from the bonds and dividends from the stock of foreign
corporations by persons, corporations, or duly registered general
copartnerships (companias colectivas), undertaking as a matter of
business or for profit or otherwise the collection of foreign payments
of such interest or dividends by means of coupons or bills of
exchange."
Section 12. Supplement to Title II of Code. — There
is hereby added to Title II of the National Internal Revenue Code, as
amended, as a supplement to, and an integral part of, the said Title,
the following provisions to be known as "Supplement A":
"SUPPLEMENT A — WITHHOLDING ON WAGES
"Art. 1. Definitions. — As used in this supplement —
"(a) Wages. — The term "wages" means all remuneration
(other than fees paid to a public official) for services performed by
an employee for his employer, including the cash value of all
remuneration paid in any medium other than cash; except that such term
shall not include remuneration paid —
(1) for agricultural labor paid entirely in products
of the farm where the labor is performed, or
(2) for domestic service in a private home, or
(3) for casual labor not in the course of the
employer's trade or business, or
(4) for services by a citizen or resident of the
Philippines for a foreign government or an international organization.
"If the remuneration paid by an employer to an employee for services
performed during one-half or more of any payroll period of not more
than thirty-one consecutive days constitutes wages, all the
remuneration paid by such employer to such employee for such period
shall be deemed to be wages; but if the remuneration paid by an
employer to an employee for services performed during more than
one-half of any such payroll period does not constitute wages, then
none of the remuneration paid by such employer to such employee for
such period shall be deemed to be wages.
"(b) Payroll period. — The term "payroll period"
means a period for which a payment of wages is ordinarily made to the
employee by his employer, and the term "miscellaneous payroll period"
means a payroll period other than a daily, weekly, biweekly,
semimonthly, monthly, quarterly, semiannual, or annual period.
"(c) Employee. — The term "employee" refers to any
individual who is the recipient of wages and includes an officer,
employee, or elected official of the Government of the Philippines or
any political subdivision, agency or instrumentality thereof. The term
"employee" also includes an officer of a corporation.
"(d) Employer. — The term "employer" means the person
for whom an individual performs or performed any service, of whatever
nature, as the employee of such person, except that —
(1) if the person for whom the individual performs or
performed any services does not have control of the payment of the
wages for such services, the term "employer" (except for the purposes
of subarticle (a) means the person having control of the payment of
such wages; and
(2) in the case of a person paying wages on behalf of
a nonresident alien individual, foreign partnership or foreign
corporation, not engaged in trade or business within the Philippines,
the term "employer" [except for the purposes of subarticle (a)] means
such person.
"Art. 2. Income tax collected at source. — (a)
Requirement of withholding. — Every employer making payment of wages
shall deduct and withhold upon such wages a tax determined in
accordance with a withholding table to be prepared by the Secretary of
Finance.
"(b) Tax paid by recipient. — If the employer, in
violation of the provisions of this supplement, fails to deduct and
withhold the tax as required under this supplement, and thereafter the
tax against which such tax may be credited is paid, the tax so required
to be deducted and withheld shall not be collected from the employer;
but this subarticle shall in no case relieve the employer from
liability for any penalties or additions to the tax otherwise
applicable in respect of such failure to deduct and withhold.
"(c) Nondeductibility of tax in computing net income.
— The tax deducted and withheld under this article shall not be allowed
as a deduction either to the employer or to the recipient of the income
in computing net income under this Title.
"(d) Refunds or credits. — (1) Employer. — Where
there has been an overpayment of tax under this article, refund or
credit shall be made to the employer only to the extent that the amount
of such overpayment was not deducted and withheld hereunder by the
employer.
"(2) Employees. — The amount deducted and withheld
under this supplement during any calendar year shall be allowed as a
credit to the recipient of such income against the tax imposed under
the main provisions of this Title. Refunds and credits in cases of
excessive withholding shall be granted under rules and regulations
promulgated by the Secretary of Finance.
"(e) Personal exemptions. — (1) In general. — Unless
otherwise provided in this supplement, the personal and additional
exemptions applicable under this supplement shall be determined in
accordance with the main provisions of this Title.
"(2) Exemptions certificates — (A) When to be filed.
— On or before the date of the commencement of employment with an
employer, or within ten days from the effectivity of this Act in case
of persons already employed, the employee shall furnish the employer
with a signed withholding exemption certificate relating to the
personal and additional exemptions to which he is entitled.
"(B) Change of status. — In case of change of status
of an employee as a result of which he would be entitled to a lesser
amount of exemption, the employee shall, within ten days from such
change, file with the employer a new withholding exemption certificate
reflecting the change. If the change would entitle the employee to a
greater amount of exemption, he may furnish the employer with a new
withholding exemption certificate reflecting such change.
"(C) Use of certificates. — The certificates filed
hereunder shall be used by the employer in the determination of the
amount of taxes to be withheld.
"(D) Failure to furnish certificate. — Where an
employee, in violation of this supplement, either fails or refuses to
file a withholding exemption certificate, the employer shall withhold
the taxes prescribed under schedule for zero exemption of the
withholding tax table in subarticle (a).
"(f) Withholding on basis of average wages. — The
Collector of Internal Revenue may, under regulations promulgated by the
Secretary of Finance, authorize employers (1) to estimate the wages
which will be paid to an employee in any quarter of the calendar year,
(2) to determine the amount to be deducted and withheld upon each
payment of wages to such employee during such quarter as if the
appropriate average of the wages so estimated constituted the actual
wages, paid, and (3) to deduct and withhold upon any payment of wages
to such employee during such quarter such amount as may be required to
be deducted and withheld during such quarter without regard to this
subarticle.
"(g) Husband and wife. — When a husband and wife each
are recipient of wages, whether from the same or from different
employers, taxes to be withheld shall be determined on the following
bases:
(1) The husband shall be deemed the head of the
family and proper claimant of the additional exemption in respect to
any dependent children;
(2) Taxes shall be withheld from the wages of the
wife in accordance with the schedule for zero exemption of the
withholding tax table in subarticle (a).
"(h) Nonresident aliens. — Wages paid to nonresident
alien individuals shall not be subject to the provisions of this
supplement and shall be governed by the provisions of section
fifty-three of this Title.
"Art. 3. Liability for tax. — The employer shall be
liable for the payment of the tax required to be deducted and withheld
under this supplement, and shall not be liable to any person for the
amount of any such payment.
"Art. 4. Return and payment to the Government of
taxes withheld. — Taxes deducted and withheld hereunder by the employer
on wages of employees shall be covered by a return and paid to the
treasurer of the province, city or municipality in which the employer
has his legal residence or principal place of business, or, in case the
employer is a corporation, in which the principal office is located.
The return shall be filed and the payment made within twenty-five days
from the close of each calendar quarter. The taxes deducted and
withheld by employers shall be held in a special fund in trust for the
Government until the same are paid to the said collecting officers. The
Collector of Internal Revenue may, with the approval of the Secretary
of Finance, require employers to pay or deposit the taxes deducted and
withheld at more frequent intervals, in cases where such requirement is
deemed necessary to protect the interest of the Government.
"Art. 5. Return and payment in case of Government
employees. — If the employers is the Government of the Philippines or
any political subdivision, agency or instrumentality thereof, the
return of the amount deducted and withheld upon any wages shall be made
by the officer or employee having control of the payment of such wages,
or by any officer or employee duly designated for that purpose.
"Art. 6. Statements and returns — (a) Requirement. —
Every employer required to deduct and withhold a tax in respect of the
wages of an employee shall furnish to each such employee in respect of
his employment during the calendar year, on or before January
thirty-first of the succeeding year, or, if his employment is
terminated before the close of such calendar year, on the day on which
the last payment of wages is made, a written statement showing the
wages paid by the employer to such employee during the calendar year,
and the amount of the tax deducted and withheld under this supplement
in respect of such wages. The statement required to be furnished by
this article in respect of any wages shall be furnished at such other
times, shall contain such other information, and shall be in such form
as the Secretary of Finance may by regulations prescribe.
"(b) Returns. — Every employer required to deduct and
withhold the taxes in respect of the wages of his employees shall, on
or before January thirty-first of the succeeding year, submit to the
Collector of Internal Revenue a return of the total amount withheld
during the year accompanied by copies of the statements referred to in
the preceding paragraph. This return, if made and filed in accordance
with regulations promulgated by the Secretary of Finance, shall be
sufficient compliance with the requirements of section seventy-seven of
this Title in respect of such wages.
"(c) Extension of time. — The Collector of Internal
Revenue, under such regulations as may be promulgated by the Secretary
of Finance, may grant to any employer a reasonable extension of time to
furnish and submit the statements and returns required under this
article.
"Art. 7. Surcharges for failure to render returns and
for rendering false or fraudulent returns; delinquency in payment of
taxes. — The surcharge prescribed in section seventy-two of this title
in cases of failure to render returns and for filing false or
fraudulent returns shall apply to the returns required under articles
four and five.
"In case the taxes deducted and withheld by the employer are not paid
within the time prescribed, there shall be added a surcharge of five
per centum on the amount of tax unpaid and interest at the rate of one
per centum a month upon the amount required to be paid from time the
same became due until paid.
"Art. 8. Penalties — (a) Penalties for failure to
file, and for filing fraudulent returns or statements. — Any person who
wilfully renders or furnishes a false or fraudulent return or statement
required under the provisions of articles four, five and six or under
regulations promulgated by the Secretary of Finance, or who wilfully
fails to render or furnish a statement as required in this supplement,
shall upon conviction, for each such at or omission, be fined not less
than one thousand pesos nor more than two thousand pesos and imprisoned
for not more than one year.
"(b) Penalties in respect of withholding exemption
certificates. — Any individual required to supply information who
wilfully supplies false or fraudulent information, or who wilfully
fails to supply information thereunder which would require an increase
in the tax to be withheld under article two, shall, in lieu, of any
penalty otherwise provided, upon conviction be fined not more than one
thousand pesos or imprisoned for not more than one year, or both.
"The same penalty shall apply to an employer who wilfully accepts as a
fact or as true information which would reduce the tax to be withheld
under article two hereof.
"(c) Penalties on corporate officers. — The penalties
prescribed in this article shall, in the case of an employer which is a
corporation, partnership, or association, be imposed on the president,
manager, treasurer, or other persons responsible for the particular act
or omission.
"Art. 9. Verification of returns, etc. — (a) Power of
Collector of Internal Revenue to require. — The Collector of Internal
Revenue, under regulations promulgated by the Secretary of Finance, may
require that any return, statement, or other document required to be
filed under this supplement, or under regulations promulgated by the
Secretary of Finance, shall contain or be verified by a written
declaration that it is made under the penalties of perjury, and such
declaration shall be lieu of any oath otherwise required.
"(b) Penalties. — Every person who wilfully makes and
subscribes any return, statement, or other document which contains or
is verified by a written declaration that it is made under the
penalties of perjury, and, which he does not believe to be true and
correct as to every material matter, shall be guilty of a felony, and,
upon conviction, shall be subject to the penalties prescribed for
perjury under the Revised Penal Code."
Section 13. No salary wherever received by any public
officer of the Republic of the Philippines shall be considered as
exempt from the income tax, payment of which is hereby declared not to
be a diminution of his compensation fixed by the Constitution or by
law.
Section 14. Treatment of fractions. — In computing
net income under Title II of Commonwealth Act Numbered Four hundred and
sixty-six, as amended, a fraction of a peso shall be disregarded. In
computing the tax on the annual returns required under the said Title,
a fraction of a peso less than fifty centavos shall be disregarded, and
a fraction of a peso amounting to fifty centavos or more shall be
considered as one peso. In case of overpayment or underpayment of
income tax where the amount involved is less than one peso, no refund
or collection shall be made.
Section 15. Payment with backpay certificate. — When
an employee is entitled to backpay under the provisions of Republic Act
Numbered Three hundred and four, the amount of income tax withheld
under this Act shall, if he elects to pay his annual income tax with
his backpay, be refunded to him unless the backpay being negotiated is
insufficient to cover his tax liability, in which case only the excess
of the total of the amount withheld and the amount of such backpay
rights being negotiated, over his total income tax liability shall be
refunded.
Section 16. Effective date. — This Act shall apply to
income received from January first, nineteen hundred and fifty, except
section twelve hereof which shall take effect on January first,
nineteen hundred and fifty-one: Provided, however, That, unless
otherwise expressly extended by Congress, the increased taxes provided
for in this Act shall continue in force and effect only until December
thirty-first, nineteen hundred and fifty-two, after which period the
actual rates of taxes shall again be in force.
Approved: September 22, 1950
|