Government raises P13 billion from tax amnesty

26-Oct-2021 Intellasia | PhilStar | 5:02 AM Print This Post

The government collected more than P13 billion from its tax amnesty programmes, according to Finance Assistant Secretary Dakila Napao.

The tax amnesty delinquency collection of the Bureau of Internal Revenue amounted to P7.89 billion as of September 7. Likewise, the estate tax amnesty collection of the BIR stood at P5.17 billion in the same period.

In 2019, the BIR issued a revenue regulation in compliance with Republic Act (RA) 11213, allowing taxpayers with tax arrears from 2017 and preceding years to apply for tax amnesty.

Delinquent accounts that are final and executory received an amnesty rate of 40 percent, while those that await court ruling received an amnesty rate of at least 50 percent. Taxpayers with pending tax evasion cases before the Department of Justice obtained an amnesty rate of 60 percent.

On the other hand, withholding agents that withheld taxes, but failed to transfer them to the BIR secured an amnesty rate of 100 percent.

The one-year tax amnesty was scheduled to expire last year, but the Bayanihan to Recover as One Act extended the programme up to June 30, 2021, to provide relief to taxpayers impacted by the pandemic.

When President Duterte signed RA 11213, he also granted taxpayers a one-time opportunity to settle their estate tax arrears.

The law covers properties of decedents who died on or prior to December 31, 2017 with or without an assessment issued but whose estate taxes have yet to be paid or accrued.

A six percent estate tax amnesty rate will be applied to each decedent’s total net taxable estate at the time of death, with no penalties applied at any point during the property transfer process. The minimum estate amnesty tax for the transfer of each decedent’s estate shall be P5,000.

The estate tax amnesty was extended for another two years, until June 14, 2023, with the President’s signing of RA 11569 on June 30.

https://www.philstar.com/business/2021/10/25/2136397/government-raises-p13 billion-tax-amnesty

 

Category: Philippines

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