(NAR) VOL. 15 NOS. 3-4 / OCTOBER - DECEMBER 2004
a. To expand the definition of "Philippine overseas shipping" to cover any kind of shipping operations by a Philippines shipping enterprise in the overseas trade;
b. To extend the fiscal incentives to Philippine shipping enterprises for the next ten (10) years; and
c. To create a healthy investment climate within the industry to attract and encourage the establishment of private enterprises.
a. R.A. No. 9301 refers to the Act amending certain provisions of R.A. No. 7471; and
b. Philippine overseas shipping means the operation of a Philippine shipping enterprise in the overseas trade of any type of Philippine registered ship for any kind of shipping operation, which shall include, but shall not be limited to the transport of goods and/or passengers, and the purchase of ships for operation and the sale of ships after operation, except when the ship is operated between ports in the Philippines.
a. The entire net income, after deducting not more than fifteen (15%) percent thereof for distribution of profits or declaration of dividends, which would otherwise be taxable under the provisions of Title II of the National Internal Revenue Code, is reinvested for the construction, purchase, or acquisition of ships and related equipment and/or in the improvement or modernization of its ships and related equipment in accordance with the regulations;
b. The cumulative amount so reinvested shall not be withdrawn for a period of seven (7) years after the expiration of the period of income tax exemption or until the ship or related equipment so acquired have been fully paid, which ever date comes earlier and,
c. Any amount not so invested or withdrawn prior to the expiration of the period stipulated herein shall be subject to the corresponding income tax, including penalties, surcharges and interests.
a. Violation of the provisions of R.A. Nos. 7471 and 9301 and their applicable rules and regulations shall be punishable by a fine of not more than One Hundred Thousand Pesos (P100,000.00) or imprisonment of not more than five (5) years or both such fines and imprisonment at the discretion of the court.
b. If the violation is committed by an association or corporation, the penalties prescribed hereunder shall be imposed on the President, the Chief Executive Officer and the other officials and employees responsible for the violation.
c. If the violation is committed by a government official or employee, he/she shall, in addition to the penalties prescribed hereunder, be dismissed from the government service with all the administrative penalties accessory thereto.