Philippines
House leaders want to extend estate tax amnesty availment period to four years
House leaders want to extend estate tax amnesty availment period to four years
Leaders of the House of Representatives want to extend the availment period of the estate tax amnesty to four years to provide financial relief to Filipinos during this time of COVID-19 pandemic.
House Majority Leader and Leyte 1st district Rep. Ferdinand Martin G. Romualdez and Tingog Sinirangan partylist Rep. Yedda Marie Romualdez filed House Bill No. 7068 seeking to amend Republic Act (RA) No. 11213, the “Tax Amnesty Act.”
"The amendment to RA 11213 will enable those who want to take advantage of this program ample time to recoup their resources and get back on their feet so they can still apply and pay their estate tax dues. This will also provide economic relief for many Filipinos at this time of crisis," they said in their bill's explanatory note.
The Romualdez couple noted that on May 29, 2019, the Department of Finance (DOF) issued Revenue Regulations (RR) No. 6-2019, on the implementation of the provisions on estate tax amnesty under Title II of RA 11213.
RA 11213, which was signed into law on February 14, 2019, provides that anyone who wishes to avail of the amnesty shall, within two years from the effectivity of the implementing rules and regulations (IRR), file with the Revenue District Office of the Bureau of Internal Revenue (BIR) which has jurisdiction over the last residence of the decedent, a sworn estate tax amnesty return, they said.
"It is just unfortunate that the Philippines is not spared from the ill effects of the COVID-19 pandemic, wherein many people lost their jobs and folded up their businesses. Most economic activities were stalled. The people lost a precious period of time and possible sources of income in order to avail of this tax amnesty program of the government," they said.
"This drawback may take some time to recover, and while the COVID-19 pandemic still persists, people will have extreme difficulty in paying their taxes, much more in settling their estate tax dues even with this tax amnesty program," they pointed out.
House Deputy Majority Leader and Zamboanga Sibugay 1st district Rep. Wilter “Sharky” Wee Palma II joined the Romualdezes in filing the bill.
HB 7068 provides that the executor or administrator of the estate, or if there is no executor or administrator appointed, the legal heirs, transferees, or beneficiaries, who wish to avail of the estate tax amnesty shall within four years from the effectivity of the IRR of the proposed Act, file with the Revenue District Office of the BIR, which has jurisdiction over the last residence of the decedent, a sworn estate tax amnesty return.
The payment of the amnesty tax shall be made at the time the return is filed, it said.
For non-resident decedents, the estate tax amnesty return shall be filed and the corresponding amnesty tax will be paid at Revenue District Office No. 39, or any other Revenue District Office which shall be indicated in the IRR, according to the bill.
“If the estate involved has properties which are still in the name of another decedent or donor, the present holder, heirs, executors or administrators thereof shall only file one estate tax amnesty return and pay the corresponding estate amnesty tax thereon based on the total net estate at the time of death of the last decedent covering all accrued taxes under the National Internal Revenue Code of 1997, as amended, arising from the transfer of such estate from all prior decedents or donors through which the property or properties comprising the estate shall pass," the bill said.
HB 7068 mandates the appropriate Revenue District Officer to issue and endorse an acceptance payment form, in such form as may be prescribed in the IRR of the Act for the authorized agent bank.
In the absence of an agent bank, the concerned revenue collection agent or municipal treasurer shall accept the tax amnesty payment.
To verify the mode of transfer and the proper recipients, proof of settlement of the estate, whether judicial or extrajudicial, shall likewise be attached to the return, the measure provides.
"The availment of the estate tax amnesty and the issuance of the corresponding Acceptance Payment Form do not imply any admission of criminal, civil, or administrative liability on the part of the availing estate," the bill said.
HB 7068 provides that within 60 days from the effectivity of the Act, the Secretary of Finance shall, in coordination with the Commissioner of Internal Revenue, issue the necessary rules and regulations for the effective implementation of the proposed Act.