The House of Representatives’ ways and means committee has recommended for plenary approval a substitute bill granting amnesty to all unpaid internal revenue taxes for taxable year 2017 and prior years.
That happened after the committee, led by Rep. Estrellita Suansing, approved the still unnumbered bill that aims to enhance revenue administration and tax collection by granting an amnesty to all unpaid internal revenue taxes.
The bill, principally authored by Rep. Michael Romero, is among the priority measures of President Rodrigo Duterte.
Speaker Gloria Macapagal Arroyo attended the hearing when the panel approved the measure.
The proposed measure says taxpayers who wish to apply for amnesty should pay 8 percent of their net worth covering taxable year 2017, or P10,000 to P10 million, depending on their taxpayer classification whichever is higher.
Deputy Speaker Raneo Abu welcomed the bill, calling it “a welcome development among Filipino taxpayers from all walks of life.”
“Whether one is an ordinary citizen having difficulty in finally settling the estate of his departed loved ones… or a businessman who has unsettled tax liabilities, this measure affords them the opportunity to come clean,” Abu said.
He said the estate tax amnesty “will be a big help in unclogging and updating real property records and titles.
“This will promote the interest of heirs in developing inherited real properties. This will also boost the financial position of local governments.”
House Minority Leader Danilo Suarez, one of the bill’s principal authors, said it could help the government boost its financial position.
“The proposed tax amnesty measure would surely boost the financial of the government,” Suarez said.
He said almost P6 billion worth of revenues from social services were generated by the government from the previous Tax Amnesty Law without giving an additional burden to ordinary people who are now battling high inflation due to the controversial Tax Reform of Acceleration and Inclusion or TRAIN Law.
He said Congress must be able to find ways to address the alleged corruption in the Bureau of Internal Revenue which was resulting in revenue shortfalls.
Suarez was referring to the implementation of the tax amnesty under Republic Act 9480 dated Feb. 19, 2017 and covering the year 2005, which generated P5.902 billion and accounted for two percent of the total income taxes collected.
“The new Tax Amnesty Bill, when enacted, will provide a clean slate for delinquent taxpayers and will encourage all taxpayers, especially low-income and middle-income earners, professionals and even Overseas Filipino Workers to avail of this program and register with the BIR,” Suarez said.
“In effect, this will improve the taxpayers’ compliance with national tax policies, increase revenue collection and reduce corruption.”
Some legislators said the tax reforms implemented by the Bureau of Internal Revenue during the Benigno Aquino administration proved to be a disincentive to many taxpayers, who shied from paying their taxes.