Professional Documents
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CEilTRALT
tax
Summary of Features:
1.
to
inquire
"ln case of request from a foreign tax authority for tax informjtion held by banks and financial institutions, the exchange of information shall
ensure
a. b.
confidentiality thereof under such rules and regulations is may be promulgated by .the SJcretary of Finance, upon recommendation
cf the Commissioner'
. Held by financial institutions . To suilply information to a requesting foreign :tax authority pursuant to a convintion oi agreement to which the . 2. . 3. , 4.
Philippines is a signatory Subject to specific requirements as to the relevance of the tax information requested' Allows the foreign tax authority to examine income tax returns of taxpayers upon order of the President
institutions .pursuant to a convention or agreement upon request of the foreign tax aitnority when such requesting foreign tax
authority
informaiion
the form in which the said foreign tax authoritY Prefers to receive the
for
the
of a
Relevant Provisions: Section 3. Authority of the Commissioner of lnternal Revenue to lnquire into Bank Deposit
Republic
amended,
"(F) Authority of the Commissioner to lnquire into Bank Deposit Accounts and Other Relaled lnformation Held by Financial
lnstitutions."(1) "(2) xxx
XXX
xf *x
(3) A specific taxpayer or taxpayers subiect of a requesl for the supply of tax information fron': a foreign tax authority pursuant to an international convention or agreement on tax matters to which the e-nillppines is a signatory or a party of: Provided, That the information obtained from
the banks and other financial institutions may
knowledge or information acquired by him in the discharge of his official duties, shall, upon conviction, be punished by a fine of noi less than Fifty thousand pesos (P50,000) but not
to
(P100,000), or suffer imprisonment of not less than two (2) years but not more than flve (5) years, or both."
"The term 'foreign tax authority', as used herein, shall refer to the tax authority or tax administration of the requesting State under the tax treaty or convention to which the
Philippines is a signatory or a party ot.',
Section 4. Allowing a Foreign Tax Authotity to lncome Tax Returns of Taxpayers in the Philippines. - Section 71 of Republic Act No. 8124, as amended, otherwise known as the National lnternal Revenue Code of 1gg7, is
hereby amended to read as follows:
required information shall be punished by a fine of not less than Fifty thousand pesos (50,000) but not more than One hundred thousand pesos (P100,000) , or suffer imprisonment of not less than two (2) years
but not more than five (5) yearc, or both. Maintain Confidentiality of lnformation Rece,ved - Any information received by a foreign tax authority from the Bureau of lntemal Revenue pursuant to an lnternational convention or agreement on tax mafters shall be treated by lhe authority as absolutely confidential in nature in the same
Section 7. Obligation to
SEC. 71. Disposition of lncome Tax Returns, Publication of Lists of Taxpayers and Filers. -
ux
XXX
"lncome
subject
of a
for
taxpayers
exchange of
manner as information obtained by the latter under its laws and shall be disclosed only to persons or authorities, including courts and
inspection upon the order of the president if the Philippines under rules and regulations as may be prescribed by the Secretary of
tax matters to which the philippines is a signatory or a party of, shall be open to
or
in
the the
prosecution
determinatron
:1:"^_::."^*9C
in
respect
of, or
Commissioner."
of
the
Section 5. Authority of the Commissioner of lhtemal Revenue to Supply lnformation to a Foreign Tax Authority Which rs at r,s Drsposat - Section 270 of Repubiic Act No. 8424, as
amended, otherwise known as the National lntemal Revenue of 1997, is hereby amended
to read as follows:
Divutgencc of
t)