Lawmaker seeks tax amnesty for liabilities in 2015 and earlier
Taxpayers line up to file their income tax returns at the BIR (INQUIRER FILE PHOTO)
MANILA — Rep. Michael Romero of 1Pacman party-list is pushing for amnesty for individual and corporate taxpayers’ liabilities that were due in 2015 and previous years.
In a statement Sunday, Romero said House Bill No. 3655, which he had earlier filed, would “increase revenues” and “provide the foundation for an effective implementation of tax reforms by granting an amnesty on all unpaid internal revenue taxes imposed by the national government for taxable year 2015 and prior years.”
Romero said the bill was aligned with the Duterte administration’s proposed tax policy reform program aimed at bringing down personal and corporate income tax rates while slapping new or additional taxes on consumption.
Romero said his bill, if passed into law, would allow any person or corporation who would avail of the tax amnesty to file a notice and tax amnesty return with the Bureau of Internal Revenue (BIR) together with a statement of assets, liabilities and net worth (SALN) as of Dec. 31, 2015.
Part of the amnesty is payment of tax penalties worth P50,000 or a flat rate of 5 percent, whichever is higher for individuals. As for corporations, the proposed penalty would be 5-percent flat rate or between P25,000 and P500,000.
Under the bill, “those who have availed of the tax amnesty will be granted immunity from the payment of taxes and civil, criminal or administrative penalties under the National Internal Revenue Code of 1997 arising from their failure to pay any and all internal revenue taxes for 2015 and prior years,” Romero said.
As such, “the taxpayer’s SALN as of Dec. 31, 2015 shall not be admissible as evidence in all proceedings related to internal revenue taxes that cover 2015 and prior years,” the lawmaker said.
Also, “their books of accounts and other records for the years covered under the tax amnesty availed of shall not be examined,” he added.
However, “the tax amnesty cannot be availed of by withholding agents, those with pending cases under the Presidential Commission on Good Government, those with pending cases involving unexplained or unlawfully acquired wealth under the Anti-Graft and Corrupt Practices Act, those with pending cases for violation of the Anti-Money Laundering Law, those with pending criminal cases for tax evasion or other criminal offenses under Chapter 2 of Title X of the [Tax Code] or felonies of fraud, illegal exactions and transactions and malversation of public funds and property under the Revised Penal Code,” according to Romero.
The Department of Finance earlier said that it has been “considering proposing legislation for a final tax amnesty that will be absolute to clear tax dockets.”
The administration’s proposed tax policy reform program includes legislation for a final tax amnesty, after which there will be no further amnesty for 25 years.
This amnesty program will nonetheless exclude those whose liabilities were part of criminal cases.
The program will facilitate “absolute” amnesty, such that availment will clear all tax dockets at the BIR, the Bureau of Customs, as well as in courts.
The government will charge a higher amount for delayed amnesty payment, such that, for instance, while the delinquent taxpayer will not be charged interest and surcharge in the first month, interest will be charged in the third month, while surcharge will be paid in the fifth month, according to the document.
The Duterte administration is eyeing to impose a minimum amnesty payment equivalent to 40 percent of the basic deficiency.
As for cases pending at the Court of Appeals, the government would enter into a compromise with those having assessments. Those without assessment, meanwhile, should pay a 5-percent tax on net worth. SFM
