Credit to Author: Mayvelin U. Caraballo, TMT| Date: Tue, 04 May 2021 16:43:10 +0000
THE Department of Finance (DoF) said it supports the proposed extension of estate tax amnesty for another two years but expressed reservation in a vetoed provision.
“So, the DoF has no objection to the two-year extension of the tax amnesty . . .” Finance Undersecretary Antonette Tionko told senators in a hearing held on Tuesday in relation to Senate Bill 2051.
A version of House Bill 7068, the Senate proposal seeks to stretch the deadline for the tax amnesty from Dec. 31, 2020 to Dec. 31, 2022. The proposed measure aims to give taxpayers more time to avail the program as Covid-19 pandemic restrictions have affected the filing of applications.
However, Tionko pointed out that the bills basically copied the provisions of Republic Act 11213, or “The Tax Amnesty Law,” which was partially vetoed.
She said included in the proposed measures is the particular provision, which states: “Provided further that if the estate involved has properties, which are still in the name of another decedent or donor, the present holder, heirs, executors, administrators thereof shall file only one estate tax amnesty return, and pay the corresponding estate tax amnesty based on the total net estate at the time of death of the last decedent, covering all accrued taxes under the National Internal Revenue Code arising from transfer of such estate from all prior decedents or donors to which the property or properties comprising the estate shall pass.”
“So that particular provision was vetoed in the last law. So, it’s only to that provision that we express some reservation, but as to the extension, we are in support of the extension of two years,” Tionko added.
For its part, the Bureau of Internal Revenue (BIR) said it adheres to the policy direction of the Finance department and supports to grant more time for the availers of the tax amnesty.
Deputy Commissioner Marissa Cabreros said the program ran continuously for 10 months since the publication of the implementing rules and regulations in June 2019 and before the
pandemic set in.
However, the pandemic affected the filing of the tax amnesty application as it made the gathering of documents difficult because of travel restrictions.
“But so far, we have almost 43,700 availers and were able to generate a collection of around P2.5 billion from 2019 to date. However, this is way beyond the expected target when the law was first enacted.”
To recall, the BIR said it expected to collect some P6.28 billion from the program.