Amnesty program for delinquent taxpayers eyed in April

MANILA, Philippines — The government is targeting to roll out by April an amnesty program which seeks to provide a clean slate for taxpayers with existing delinquencies, an official from the Department of Finance (DOF) said yesterday.

In an interview, Finance Undersecretary Antonette Tionko said the DOF and the Bureau of Internal Revenue (BIR) are moving to issue by next month the implementing rules and regulations (IRR) for the tax delinquency component of Republic Act 11213 or the Tax Amnesty Act.

Upon the release of the IRR, Tionko said the BIR may start accepting applications for amnesty on delinquent accounts.

“Our schedule is by April to implement the tax amnesty on delinquencies. We can implement it once the IRR is out and published,” Tionko told reporters.

From then, the DOF official said the program would run for one year.

“It’s effective for one year. When they finish the IRR, it will be published, then it (will be) effective already. Then you count one year from there,” Tionko said.

The BIR has drafted the revenue regulation for the tax amnesty program on delinquencies. It is currently subject to consultations.

As provided under the draft RR, all persons with internal revenue tax liabilities covering taxable year 2017 and prior years may avail of tax amnesty on delinquencies within one year from the effectivity the RR.

It states that qualified applicants with delinquent accounts and assessments that have become final and executory will pay only 40 percent of the basic tax assessed.

Those with tax cases subject of final and executory judgement by the courts will pay 50 percent of the basic tax assessed, while those with pending criminal cases will pay 60 percent.

Withholding agents who withheld taxes but failed to remit the same to the BIR will pay 100 percent of the basic tax assessed.

The tax amnesty on delinquencies is part of RA 11213, which was signed last February, and became effective on March 5.

Aside from tax amnesty on delinquencies, the law also provides a tax amnesty program on estate taxes. However, Tionko said it may take longer for the government to complete its IRR.

“The regulations are a bit more complex so maybe soon after (tax delinquencies). We just need to clarify issues, those (that) need coordinating with other agencies,” she said.

Tionko assured that the IRR would be released within the prescribed period of 90 days from the effectivity of the law.

Earlier, Finance Undersecretary Mark Dennis Joven said the Tax Amnesty Law is expected to raise P27.541 billion in additional revenues for the government.

The bulk or P21.26 billion of this amount is estimated to come from the tax amnesty program for delinquencies, while the remaining P6.28 billion is seen to be captured through the estate tax amnesty program.