Government raises only P2B from Tax Amnesty Act
- Iris Gonzales () - March 8, 2008 - 12:00am

The government was unable to meet its revenue goal of P3.5 billion from the Tax Amnesty Act of 2007, with the program raising only close to P2 billion, Finance Secretary Margarito Teves said yesterday.

The program, which the BIR started implementing in September last year, lapsed last March 6. The law immunes a qualified taxpayer from any law suits involving deficient tax payments covering the period 2005 and prior years if he or she pays the tax amnesty fee.

“It’s below target. So far, we have close to P2 billion out of the P3.5 billion they have projected,” Teves told reporters on the sidelines of the annual convention of the Chamber of Thrift Banks.

Teves said an extension would only be possible if Congress allows it by passing a legislation that would extend the program.

“It depends on Congress,” he said.

He said the DOF and the Bureau of Internal Revenue (BIR) would look into the factors why they were unable to meet the projected revenue goal.

“Maybe, it’s a combination of communication and combination of late response (from taxpayers),” Teves said.

The law covers all national internal revenue taxes like income tax, estate tax, donor’s tax and capital gains tax (CGT), value-added tax, percentage tax, excise tax and documentary stamp taxes.

Those that are not covered are withholding taxes, taxes passed-on and those that are already collected from the customers for remittance to the BIR.

Cases which have been covered by the compromise program or abatement program of the BIR can no longer avail of the tax amnesty program insofar as the tax subject of the compromise or abatement is concerned.

The period covered is taxable year 2005 and prior years for the said taxes, with or without assessments duly issued and that have remained unpaid as of Dec. 31, 2005.

Under the law, delinquent taxpayers just have to pay a tax amnesty rate of five percent of a taxpayer’s net worth or a fee ranging from P25,000 to P500,000 depending on the net worth.

The BIR, the government’s main revenue earner is under heavy pressure to raise revenues to help boost state coffers. It has collected only P711.6 billion last year or P54.3 billion lower than the program of P765.9 billion.

BILLION BUREAU OF INTERNAL REVENUE CHAMBER OF THRIFT BANKS FINANCE SECRETARY MARGARITO TEVES PROGRAM TAX TAX AMNESTY ACT TEVES
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