Published — April 18, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read here: AUTHORITY TO DEPOSIT FOREIGN CURRENCIES
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All foreign currency deposits are declared as and considered of an absolutely confidential nature.
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Foreign currency deposits shall be exempt from attachment, garnishment, or any other order or process of any court.
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Commissioner of Internal Revenue is allowed to inquire into foreign bank deposits.
Can foreign currency deposit be inquired or looked into?
Generally, foreign currency deposit is absolutely confidential nature.
Republic Act No. 6426 or Foreign Currency Deposit Act of the Philippines provides that:
All foreign currency deposits authorized the Foreign Currency Deposit Act, as amended by PD No. 1035 (Expanding the Authority of Certain Depository Banks under R.A. No. 6426 and for other Purposes), as well as foreign currency deposits authorized under PD No. 1034(Expanding the Authority of Certain Depository Banks under R.A. No. 6426 and for other Purposes), are declared as and considered of an absolutely confidential nature and, except upon the written permission of the depositor, in no instance shall foreign currency deposits be examined, inquired or looked into by any person, government official, bureau or office whether judicial or administrative or legislative, or any other entity whether public or private; provided, however, that said foreign currency deposits shall be exempt from attachment, garnishment, or any other order or process of any court, legislative body, government agency or any administrative body whatsoever. (As amended by PD No. 1035, and further amended by PD No. 1246, promulgated on Nov. 21, 1977)
Thus, Foreign currency deposits cannot be inquired or looked into. All foreign currency deposits are confidential.
However, Republic Act No. 10021 or Exchange of Information on Tax Matters Act of 2009 allowed Commissioner of Internal Revenue to inquire into bank deposits of the following:
- A decedent to determine his estate;
- Any taxpayer who has filed for an application for compromise of his tax liability; and
- A specific taxpayer upon request for tax information from a foreign tax authority pursuant to an international convention or agreement on tax matters to which the Philippines is a party.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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