House OKs bill extending period for availing estate tax amnesty | Inquirer News
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House OKs bill extending period for availing estate tax amnesty

/ 04:51 PM September 15, 2020

MANILA, Philippines — The House of Representatives approved Tuesday on third and final reading the bill extending the availment period of the estate tax amnesty from two years to four years, giving relief to estates with outstanding tax liabilities.

With 209 affirmative votes, no negative and no abstention, 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.

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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.

The lawmakers said amending the Tax Amnesty Act will enable those who want to take advantage of the program to have ample time to recoup their resources and get back on their feet so they can still apply and pay their estate tax dues.

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They said 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.”

“It’s just unfortunate that the Philippines is not spared from the ill effects of the COVID-19 pandemic, wherein many people lost their jobs and folded up their businesses. Most economic activities were stalled,” the lawmakers said.

“The people lost precious period of time and possible sources of income in order to avail of this tax amnesty program of the government,” they added.

Under R.A. 11213, taxpayers are given a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that gives reasonable tax relief to estates with outstanding estate tax liabilities.

The law provides that taxpayers who avail of the estate tax amnesty enjoy immunity from the payment of estate taxes, civil, criminal, and administrative cases and penalties.

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.

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The law states that the executor or administrator of the estate, or if there is executor or administrator appointed, the legal heirs, transferees or beneficiaries, who wish to avail of the estate tax amnesty shall do so within two years from the effectivity of the implementing rules and regulations (IRR) of RA 11213.

However, due to the pandemic, the lawmakers proposed that the availment period be extended to four years.

JE
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TAGS: Amnesty, estate tax
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