RMC No. 58-2021: Circularizes Republic Act No. 11521 (An Act Further Strengthening the Anti-Money Laundering Law, Amending for the Purpose Republic Act No. 9160, Otherwise Known as the ‘Anti-Money Laundering Act of 2001’, as Amended)

Key points

1. Tax crime as predicate offense. Section 3, No. 35 of RA No. 9160 covers violations of Section 254 of the NIRC of 1997, as amended, where the deficiency basic tax in the final assessment exceeds Twenty-five million pesos (₱ 25,000,000.00) per taxable year for each tax type. It requires a finding of probable cause by the competent authority and a finding of fraud, willful misrepresentation or malicious intent by the taxpayer.
2. No double recovery. The AMLC cannot start forfeiture proceedings for property or proceeds relating to a tax crime if the BIR has already recovered or collected them in a separate proceeding.
3. Non-intervention in BIR operations. Under amended Section 20, nothing in the Act or related laws or agreements lets the AMLC take part in BIR operations. The AMLC may coordinate with the BIR on investigations of Section 254 NIRC violations as a predicate offense to money laundering.

Who is affected

• Taxpayers with deficiency basic tax above ₱ 25,000,000.00 per taxable year for each tax type, with fraud, willful misrepresentation or malicious intent
• Anti-Money Laundering Council (AMLC) and the BIR