THE signing into law of the Tax Amnesty Bill will be one of the best Christmas gifts that the government can give to Filipinos this Holiday season.
This is according to the main proponent of Tax Amnesty Bill, 1PACMAN Rep. Mikee Romero, as he expressed gratitude to both Houses for the ratification of the measure.
President Rodrigo Duterte is expected to sign it before the year ends.
The House of Representatives, before going to Christmas break, ratified that Bicameral Conference Committee Report on the Tax Amnesty Bill.
Tax Amnesty Act of 2018 aims to provide a one-time amnesty for liabilities in estate taxes, national internal revenue taxes and tax delinquencies.
It also seeks to generate additional revenues for the government.
Romero is the principal author of House Bill 8554 which provides that all corporations and individuals are eligible for the general tax amnesty which will be either 5 percent of net worth or 2 percent of total assets.
The proposed measure would forgive and clean with finality all tax liabilities of individuals and corporations, including real estate, capital gains, value added tax, excise tax and all national taxes.
“Amnesty will likewise cover all estate taxes which now shall be at 6 percent of assessed value. Plus, the early bird payees can avail of an additional 20 percent discount. Once submitted to voluntary tax amnesty plan, it will be in confidentiality and will give applicants immunity from any suit,” Romero said.
It would cover unpaid taxes until Dec. 31 of 2017.
Romero added the bill seeks to provide delinquent taxpayers a chance to start over with a clean record by becoming tax-compliant and to avoid penalties and surcharges for the delinquency.
The bill will also help both formal and informal sectors be absolved by settling all their undeclared assets and previous unpaid taxes without fear of civil, criminal or administrative penalties.
On the other hand, the bill is further expected to raise additional P114.8 billion in immediate revenues for the government, clear case backlogs in both administrative and court proceedings, and enhance revenue administrations by having a wider tax base.