MANILA, Philippines — The House of Representatives approved Wednesday on second reading the bill extending the period for availing the estate tax amnesty, giving relief to estates with outstanding tax liabilities.
Through voice voting, the lower chamber approved House Bill No. 7068, which amends Section 6 of Republic Act No. 11213 or the “Tax Amnesty Act” that was approved by President Rodrigo Duterte on February 14, 2019.
Principal authors of the measure include Majority Leader Martin Romualdez, Tingog Sinirangan Partylist Rep. Yedda Marie Romualdez, and Zamboanga Sibugay 1st District Rep. Winter Palma II.
“Under this law, the government provides the taxpayers a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that gives reasonable tax relief to estates with outstanding tax liabilities,” the bill’s explanatory note reads.
“Taxpayers who avail [themselves] of the estate tax amnesty enjoy immunity from the payment of estate taxes, civil, criminal, and administrative cases and penalties,” it adds.
Under R.A. 11213, tax amnesty is granted to the estate of decedents who died on or before December 31, 2017, with or without prior assessments, whose estate taxes have remained unpaid or have accrued as of that same date.
Failure to avail of the estate tax amnesty means that previously suspended late estate tax penalties will be applicable, and the costs to transfer estates will be “very costly.”
“This is the reason why everyone who has outstanding estate tax liabilities as of December 31, 2017, is encouraged to take advantage of this excellent and rare opportunity offered by the government,” the bill states.
But due to the coronavirus pandemic, authors of the measure said most economic activities were stalled and many people lost their jobs and folded up their businesses.
Thus, the lawmakers proposed that the period of making use of the estate tax amnesty be extended from two years from the initial effectivity of the implementing rules and regulations of the measure to four years.
Albay 1st District Rep. Joey Salceda, who chairs the House committee of ways and means, said the original deadline for availing and making payment on April 23, 2020, has since been extended four times, with the new deadline set until December 31, 2020.
However, only 23,911 persons have availed of the amnesty, earning only P1.362 billion out of the potential P6 billion.
“Thus, it is apt that we extend it through legislation,” Salceda said. [ac]