Senate ratifies bicam report on tax amnesty bill

December 13, 2018

The tax amnesty bill sponsored by Senator Sonny Angara is a one step away from becoming a law after the Senate ratified on Thursday the bicameral report on the measure.

The tax amnesty bill grants those who have failed to pay for taxable year 2017 and prior years a one-time opportunity to settle tax obligations, including estate taxes, general taxes and delinquent accounts.

Through the measure, the government is expected to raise up to P41 billion which will be used to finance crucial infrastructure projects and augment appropriations needed for the social mitigating measures under the Tax Reform for Acceleration and Inclusion or TRAIN law. P500 million will be used exclusively for establishing tax database.

"This is but another step in the long quest toward an efficient and equitable tax system," said Angara, chairman of the Senate ways and means committee.

As the Lower House ratified the measure on Wednesday, it is ready for President Rodrigo Duterte's signature to become a law.

Angara said the bicam panel has agreed to make the tax amnesty bill "pro-taxpayer" that would attract "ordinary citizens who have long wanted to come clean but feared prosecution to finally settle their arrears."

For general tax amnesty, the bicam panel agreed that taxpayers would be given the option to choose the rate between 2 percent of total assets or 5 percent of net worth or a minimum tax.

"This will give taxpayers more flexibility, which would encourage them more to avail of the amnesty," Angara said.

Taxpayers can avail of a reprieve from all estate taxes, and instead pay 6% based on the decedent's total net estate.

The bill also covers an amnesty on delinquencies. Taxpayers can avail of 40 percenr of the basic tax for delinquencies and assessments which have become final and executory, 50 percent for cases subject of final and executory judgment by the courts, and 60 percent for those subject of pending criminal cases.

Taxpayers will be given a year from the issuance of the implementing rules and regulations to avail of the amnesty, except for estate tax amnesty where taxpayers will be given two years to avail. Discounts will be granted for early availers.

Those who avail of the amnesty program will be immune from payment of all taxes and the filing of civil, criminal, and administrative cases and penalties. DMS