Tax amnesty extension lapses into law without Marcos’ signature

The measure Congress passed to extend the availment of the estate tax amnesty  lapsed into law on August 5 without President Ferdinand "Bongbong" Marcos Jr.'s signature.

Republic Act No. 11956 which extends the availment of the estate tax amnesty until June 14, 2025 was uploaded in the Official Gazette on August 8.

It also seeks to expand the coverage of the tax amnesty and include the estates of those who have died on or before May 31, 2022.

According to Article Six, Section 27 of the 1987 Constitution, "The President shall communicate his veto of any bill to the House where it originated within thirty days after the date of receipt thereof; otherwise, it shall become a law as if he had signed it."

Installments

The estate tax amnesty expired on June 14.

The new law indicates that the estate tax could be paid by installment within two years from the statutory date for its payment without civil penalty and interest.

The payment of the amnesty tax shall be made either electronically or manually, at the time the return is filed with any authorized agent bank, Revenue District Officer through the Rervenue Collection Officer or authorized tax software provider.

The law shall take effect 15 days after publication on the Official Gazette or in two newspapers of general circulation.

The Senate on May 29 unanimously approved the Senate Bill No. 2219 on third and final reading.

The following day on May 30, the House of Representatives adopted the Senate version of the bill.

After the ratification, the President may already sign the bill into law. 

920K families

Albay Representative Joey Salceda, the chairman of the House Committee on Ways and Means, said the Senate bill was the better version as it would benefit some 920,000 Filipino families with unsettled estate taxes.

“It’s another major win. And it is an enhanced version, since it limits the discretion of BIR (the Bureau of Internal Revenue) on what documents to require and allows payment by installments,” Salceda said in a statement.

Senate Bill 2219 extended the estate tax amnesty availment period to June 2025, as provided under the House version. The Senate version, however, also extended the period of deaths covered to May 2022.

The Senate version also provides for electronic filing of estate tax amnesty applications and limits the number of documents required for filing.

“Basically, estate tax amnesty will possibly go on uninterrupted if the President signs this before June 14,” Salceda said.

The bill also shortened the period for issuing the implementing rules and regulations from 60 days to 30 days. 

P2.5 billion

The Department of Finance (DOF) in a Senate hearing said it expected to collect P2.5 billion in taxes if the bill extending the availment period of estate tax amnesty until June 2025 is approved into law.

DOF Undersecretary Dakila Elteen Napao disclosed the figure during the Senate ways and means panel hearing on the proposed bill which will cover the estates of those who died on or before December 31, 2017 until December 31, 2021.

“We collected P4.8 billion until June 14, 2021 [during the first extension], collected P2.5 billion until March 2023. Since we were able to collect P2.5 billion during the last extension, Mr. Chair, we probably will be able to collect P2.5 billion which is the similar amount generated during the last extension,” Napao told lawmakers. —NB, GMA Integrated News