House panel OKs bill extending tax amnesty

MANILA, Philippines — A House panel has approved a bill extending the period of estate tax amnesty to provide additional financial relief to Filipinos during the coronavirus pandemic.

In a virtual meeting last Monday, the ways and means committee chaired by Albay Rep. Joey Salceda approved House Bill 7068 that seeks to extend that tax amnesty under Republic Act 11213 from two years to four years.

“Considering that we have not fully digitized our titling, registry, and local government services, it makes sense to extend the estate tax amnesty. Of course, given the economic slowdown, the more land we could release for economic use, the better,” Salceda said.

HB 7068, filed by Majority Floor Leader Rep. Martin Romualdez, Tingog Sinirangan party-list Rep. Yedda Marie Romualdez, and Zamboanga Sibugay Rep. Wilter Palma II, seeks to amend RA 11213 or the Tax Amnesty Act.

After confirming with the Finance Department and the Bureau of Internal Revenue that the amount of collection as well as the number of availers under the expiring estate tax amnesty program are below target, the panel approved without amendment the proposal to extend the program from two to four years.

The existing amnesty under RA 11213 prescribes an availment period of two years that will expire on June 15, 2021.

“Under this law, the government provides the taxpayers a one-time opportunity to settle estate tax obligations through an estate tax amnesty program that gives reasonable tax relief to estates with outstanding estate tax liabilities. Taxpayers who avail of the estate tax amnesty enjoy immunity from the payment of estate taxes, civil, criminal, and administrative cases and penalties,’’ the bill stated.