Article 151Supplement v1, p. 151

COMMERCIAL LAWS SUPPLEMENT

SEC.

10.

Tax

Treatment

of

Distributions .

-

All

distributions in accordance with Section 12 hereof are tax

exempt.

SEC. 11. Termination . -Any premature termination shall

be treated as an early withdrawal under Section 13 hereof:

Provided , That the penalties thereunder shall not apply if

the

entire

proceeds

there

from

are

immediately

transferred to another PERA investment and/or another

Administrator.

SEC.

12.

Distributions

Upon

Retirement/Death .

-

Distributions may be made upon reaching the age of

fifty-five (55) years: Provided , That the Contributor has

made contributions to the PERA for at least five (5) years.

The distribution shall be made in either lump sum or

pension for a definite period or lifetime pension, the

choice of which shall be at the option of the Contributor.

The Contributor, however, has the option to continue the

PERA. Complete distribution shall be made upon the

death of the Contributor, irrespective of the age of the

Contributor at the time of his death.

SEC. 13. Penalty on Early Withdrawal . - Any early

withdrawal shall be subject to a penalty, the amount of

which would be determined by the Secretary of Finance

and payable to the government: Provided , That the

amount of the penalty shall in no case be less than the

tax incentives enjoyed by the Contributor.

No early withdrawal penalty shall be imposed on any

withdrawal of any funds for the following purposes:

(a)

For

payment

of

accident

or

illness-related

hospitalization in excess of thirty (30) days; and

(b)

For

payment

to

a

Contributor

who

has

been

subsequently rendered permanently totally disabled as

defined under the Employees Compensation Law, Social

Security Law and Government Service Insurance System

Law.

SEC. 14. Non-Assignability . - No portion of the assets of a

PERA may be assigned, alienated, pledged, encumbered,

attached, garnished, seized or levied upon. PERA assets

shall not be considered assets of the Contributor for

purposes of insolvency and estate taxes.

SEC. 15. Rules and Regulations . - Consistent with the

policy of promoting transparency in PERA investment

and thereby affording protection to the Contributor, the

Department of Finance, the Bureau of Internal Revenue

and

the

concerned

Regulatory Authorities, with the

Bangko

Sentral

ng

Pilipinas

as

lead

agency,

shall

coordinate to establish uniform rules and regulations

pertaining to the following subject matters:

(a)

Qualification

and

disqualification

standards

for

Administrators, Custodians and Investment Managers,

including directors and officers thereof;

(b) Qualified and/or eligible PERA investment products;

(c) Valuation standards for PERA investments;

(d) Disclosure requirements on the terms and conditions

of the PERA investments;

(e)

Minimum

requirements

imposed

on

the

Administrators as regards inculcating financial literacy in

investors;

(f) Ascertainment of client suitability for PERA products;

(g) Fees to be charged by the Administrator, Custodian or

Investment Manager shall always be reasonable and

approved by the concerned Regulatory Authority;

(h) Record-keeping, reporting and audit requirement of

Administrators and Custodians pertaining to records for

all contributions, earnings and total account balances;

and

(i) Other pertinent matters to be determined by the

Regulatory Authorities.

SEC. 16. Administration of Tax Incentives . - The BIR shall

issue the implementing rules and regulations regarding

all aspects of tax administration relating to PERA. The BIR

shall

coordinate

the

qualification

standards

of

the

Administrator with the Regulatory Authorities.

SEC. 17. Penalty . - A fine of not less than Fifty thousand

pesos

(P

50,000.00)

nor

more

than

Two

hundred

thousand pesos (P 200,000.00) or imprisonment of not

less than six (6) years and one (1) day to not more than

twelve (12) years or both such fine and imprisonment, at

the discretion of the court, shall be imposed upon any

person, association, partnership or corporation, its officer,

employee or agent, who, acting alone or in connivance

with others, shall:

(a)

Act

as

Administrator,

Custodian

or

Investment

Manager without being properly qualified or without

being

granted

prior accreditation by the concerned

Regulatory Authority;

(b)

Invest

the

contribution

without

written

or

electronically

authenticated

authority

from

the

Contributor, or invest the contribution in contravention of

the instructions of the Contributor;

(c) Knowingly and willfully make any statement in any

application, report, or document required to be filed

under this Act, which statement is false or misleading

with respect to any material fact;

(d) Misappropriate or convert, to the prejudice of the

Contributor, contributions to and investments or income

from the PERA;

(e) By gross negligence, cause any loss, conversion, or

misappropriation of the contributions to, or investments

from, the PERA or

(f) Violate any provision of this Act or rules and regulations

issued

pursuant

to

this

Act.

Notwithstanding

the

foregoing,

any

willful

violation

by

the

accredited

Administrator, Custodian or Investment Manager of any

of the provisions of this Act, or its implementing rules and

regulations,

or

other

terms

and

conditions

of

the

authority

to

act

as

Administrator,

Custodian

or

Investment

Manager

may

be

subject

to

the

administrative sanctions provided for in applicable laws.

The

above

penalties

shall

be

without

prejudice

to

whatever civil and criminal liability provided for under

applicable laws for the same act or omission.

SEC. 18. Abuse of the Tax Exemption and Privileges . -

Any person, natural or juridical, who unduly avails of the

tax exemption privileges herein granted, possibly by

co-mingling PERA accounts in an investment with other

investments, when such person is not entitled hereto,

shall be subject to the penalties provided in Section 17

hereof. In addition, the offender shall refund to the

government double the amount of the tax exemptions

and privileges enjoyed under this Act, plus interest of

twelve percent (12%) per year from the date of enjoyment

of the tax exemptions and privileges to the date of actual

payment.

SEC. 19. Separability Clause . - If any provision or part

hereof is held invalid or unconstitutional, the remainder

of the law or the provision not otherwise affected shall

remain valid and subsisting.

SEC. 20. Repealing Clause . - All laws, decrees, orders,

rules and regulations or parts thereof inconsistent with

this Act are hereby amended or modified accordingly.

SEC. 21. Effectivity . -This Act shall take effect fifteen (15)

days following its publication in a newspaper of general

circulation: Provided , That the tax incentives granted

hereunder shall take effect on January 1, 2009.

RA No 9267 | The Securitization Act of

2004

March 19, 2004

AN ACT PROVIDING THE REGULATORY FRAMEWORK

FOR SECURITIZATION AND GRANTING FOR THE

© Compiled by RGL

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