House approves tax amnesty bill on final reading

The House of Representatives on Tuesday approved on third and final reading the tax amnesty bill, the second part of the first package of the government's tax reform program.

With 213 votes in the affirmative, seven in the negative, and zero abstentions, the chamber approved House 8554, which aims to enhance revenue administration and collection by granting amnesty on all unpaid internal revenue taxes by the national government for taxable year 2017 and the years before.

The bill, principally authored by 1-PACMAN party-list Representative Michael Romero, allows non-complying taxpayers to start with a clean slate by giving them the chance to settle their undeclared assets and previous unpaid taxes without the threat of facing civil, criminal or administrative penalties.

The measure covers three areas: estate tax amnesty, general tax amnesty, and tax amnesty on delinquencies.

Under the bill, the authorized administrator or executor, or the legal heirs and recognized successors may avail of the estate tax amnesty at 6-percent rate of the net estate for the taxable year 2018 and the years prior.

General tax amnesty, meanwhile, covers all national taxes including income tax, value-added tax, donor’s tax, percentage tax, documentary stamp tax, excise tax, among others, but excludes the VAT and tax collected by the Bureau of Customs.

This tax amnesty allows erring taxpayers to settle their tax liabilities without penalties and surcharges through payment of a minimum rate on their total assets.

Tax amnesty on delinquencies, on the other hand, allows for a lawful settlement of delinquent assessments, final and executory civil judgments of courts, and tax evasion case by paying certain percentage of the basic tax.

From this bill, the government is expected to earn an additional P114.8 billion immediate revenues, clear case backlogs in administrative and court proceedings, and enhance revenue administrations through a wider tax base.

The first part of the first package of the tax reform program, or the Tax Reform for Acceleration and Inclusion Law, has been enacted last year.

The House, on the other hand, approved the second package of the tax reform program, or the proposed Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO) Law, in September. — MDM, GMA News