House of Representatives (Ellson Quismorio/ MANILA BULLETIN)



The House Committee on Ways and Means has approved with amendments the bill seeking to extend by another two years the availment of the estate tax amnesty, as provided for under Republic Act (RA) No.11213 or the "Tax Amnesty Act". Chaired by Albay 2nd district Rep. Joey Salceda, the panel only took the entirety of its hearing Tuesday morning, April 25, to approve the measure, House Bill (HB) No.7409. "This committee hereby directs the secretariat to prepare the substitute bill incorporating the amendments and style and the corresponding committee report and file the same with the Committee on Rules this week," Salceda said. Just before the approval, Quirino lone district Rep. Midy Cua, a member of the committee, revealed the House's plan to pass the bill on second reading once plenary sessions resume on May 8. "We were informed that the leadership is hoping that we can pass this on second reading in the first week of session this May," Cua said of the bill, which seeks to extend the availment period of the estate tax amnesty from June 15, 2023--which is just a few weeks away--to June 14, 2025. The chamber's top leaders authored the measure. They are House Speaker and Leyte 1st district Rep. Martin Romualdez, Majority Leader and Zamboanga City 2nd district Rep. Mannix Dalipe, Senior Deputy Majority Leader and Ilocos Norte 1st district Rep. Sandro Marcos, Committee on Accounts Chairperson and Tingog Party-list Rep. Yedda Marie Romualdez, and Deputy Majority Leader and Tingog Party-list Rep. Jude Acidre. The estate tax amnesty under RA No.11213 provides taxpayers the immunity from the payment of estate taxes as well as any increments and additions thereto, and civil, criminal, and administrative cases and penalties under the 1997 Tax Code. The law, enacted on Feb. 14, 2019, covers the estates of decedents who died on or before Dec. 31, 2017, with or without assessments duly issued before, and whose estate taxes have remained unpaid or have accrued as of Dec. 31, 2017. "However, the Covid-19 pandemic precipitated severe contractions in economic activity and caused job losses and closed businesses. Many of the taxpayers failed to comply with the requirements to avail of the tax amnesty due to limited movement and resources," read the explanatory note of HB No.7409. "Thus, RA No.11213 was amended by RA No.11569 to provide an extension of the availment of the estate tax amnesty from June 15, 2021 to June 14, 2023," it noted. RA No.11569 was enacted during the previous 18th Congress. Salceda says estate tax is a tax on the right of the deceased person to transmit the estate to lawful heirs and beneficiaries. "RA No. 11213 was passed to provide taxpayers immunity from the payment of estate taxes until June 15, 2021," he noted. A key amendment sought by panel member Nueva Ecija 3rd district Rep. Ria Vergara further takes into account the ravages of the pandemic the past few years. "Mr. Chair, I'd like to move that we extend the coverage from those who died before December 31, 2021 so that we can include those who passed away during the pandemic. Our laws should be practical and include the demands of an extraordinary time," Vergara said. The deadly Covid-19 first emerged in the country in early 2020. The Salceda panel, through a separate motion from Vergara, also sought to increase the exemption for the donor's tax from P250,000 to P1,000,000 "with respect to Section 99 of the TRAIN (Tax Reform for Acceleration and Inclusion) law". The ammendments are expected to be reflected in the committee report. Elated with the inputs of his committee, Salceda said: "What we thought is just another extension, but actually we're providing structural solution to one of the sources of tax inefficiency in our country, as well as of course...because we can never predict our own death, so we better allow people who are alive to make the resource allocation when they are still alive." "In other words, we give the people who are alive much of the decision that will affect our future," he said. "Now that the extended deadline—June 14, 2023-- is upon us, we are informed that this tax amnesty is yet to be optimized. Families still struggle to comply with documentary as well as cash requirements. Hence, our leadership filed this measure to give more time to our constituents to clear their obligations," he further said.