MANILA -- The House of Representatives on Tuesday approved on final reading the proposed tax amnesty program to boost the government's revenue administration and collection.
Voting 213-7, the Lower House passed on third reading House Bill 8554, which seeks to grant amnesty on all unpaid impositions levied by government for taxable year 2017 and prior years.
The tax amnesty bill is Part B of the recently-enacted Tax Reform for Acceleration and Inclusion (TRAIN) law. It is among the legislative priorities of the Duterte administration.
House ways and means committee chair Estrellita Suansing said with the approval of the measure, the government is projected to raise additional PHP114.8 billion immediate revenues, clear case backlogs in both administrative and court proceedings by having a wider tax base.
“This bill gives a chance to the erring taxpayers to come forward, start with a clean slate, and be 100 percent tax compliant in the future,” Suansing said in her sponsorship speech.
“For both formal and informal sectors, they will be absolved by settling all their undeclared assets and previous unpaid taxes without fear of civil, criminal or administrative penalties,” she added.
It includes a general and estate tax amnesty, as well as a tax amnesty on delinquencies.
The bill proposes a 2-percent general amnesty tax rate based on the taxpayer's total assets.
The general amnesty covers all national internal revenue taxes like income tax, value-added tax, donor’s tax, percentage tax, documentary stamp tax, excise tax, among others. It, however, excludes the value-added tax and excise tax collected by the Bureau of Customs.
The measure provides that for two years, the authorized administrator or executor, or in the absence thereof, the legal heirs and recognized successors may avail of the estate tax amnesty at a rate of 6 percent of the net estate.
As to the Tax Amnesty on Delinquencies, this part of the bill aims to declog the dockets of Bureau of Internal Revenue, Regional Trial Courts, Court of Tax Appeals and the Supreme Courts relating to delinquent accounts with final assessments -- those that have become final and executory; and those with existing pending tax evasion cases.
The bill allows the taxpayer to merely pay at a rate of 40 percent of the basic tax for delinquencies and assessments which have become final and executory; 50 percent of the basic tax for cases subject to final and executory judgment by the courts; and 60 percent of the basic tax for pending cases. (PNA)
