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Will the Marcos family benefit from estate tax amnesty extension? It depends, BIR exec says
Philippines
National
Will the Marcos family benefit from estate tax amnesty extension? It depends, BIR exec says
Will the Marcos family benefit from estate tax amnesty extension? It depends, BIR exec says
Published May 19, 2023 10:39 am
Senators on Friday, May 19 urged the Bureau of Internal Revenue (BIR) to clarify if the various bills seeking to extend the availment of estate tax amnesty will benefit the family of President Ferdinand “Bongbong” Marcos Jr.
From left to right: Vincent Marcos, Simon Marcos, Iloilo 1st district Rep. Sandro Marcos, President Ferdinand "Bongbong" Marcos Jr., First Lady Liza Araneta-Marcos, and former first lady Imelda Marcos. (Photo from Facebook)
However, BIR officials present during the hearing of the Senate Committee on Ways and Means, chaired by Sen. Sherwin Gatchalian, was unable to directly confirm this stating that it would depend on the outcome of the deliberations in Congress.
The Senate ways and means panel has started hearing the various proposals extending the period of availing the estate tax amnesty.
“It will depend on what would be the final result of the bill, and what would be the contents of the bill,” said Larry Barcelo, Assistant Commissioner of the BIR Legal Service.
The House of Representatives earlier approved on third and final reading House Bill No. 7909 or the bill extending the coverage and period of availing the Estate Tax Amnesty from June 14 2023, to June 14, 2025.
The measure seeks to amend Republic Act (RA) 11213 as amended, also known as the “Tax Amnesty Act.”
However, Sen. Robin Padilla saw it necessary for the BIR and related agencies to respond whether this would benefit the Marcos heirs as some critics have expressed concerns the passage of the bill into law would exonerate the President and his kin on the unpaid estate taxes of the Marcoses since 1991 that ballooned to an estimated P203-billion, considering the Supreme Court's decision on the case.
“Because the people might say the three of us here are exerting efforts to provide relief to the President,” Padilla said, referring to himself, Gatchalian and Sen. Nancy Binay who participated in the hearing.
Barcelo merely responded saying the current bill carries the same restrictions and limitations provided under the Tax Amnesty Act and RA 11568 or an Act extending the Estate Tax Amnesty including the basis for availment.
“The bill indicates the restrictions and limitations of availing (estate tax amnesty). And I’m sure the present bill will provide the same restrictions and limitations and the basis for availment,” Barcelo said.
“And that would be the basis of the BIR…We will evaluate the application based on what is provided for by the law, and what are the restrictions provided in the law. That would be the basis of the evaluation of the BIR,” the BIR official added.
From left to right: Vincent Marcos, Simon Marcos, Iloilo 1st district Rep. Sandro Marcos, President Ferdinand "Bongbong" Marcos Jr., First Lady Liza Araneta-Marcos, and former first lady Imelda Marcos. (Photo from Facebook)
However, BIR officials present during the hearing of the Senate Committee on Ways and Means, chaired by Sen. Sherwin Gatchalian, was unable to directly confirm this stating that it would depend on the outcome of the deliberations in Congress.
The Senate ways and means panel has started hearing the various proposals extending the period of availing the estate tax amnesty.
“It will depend on what would be the final result of the bill, and what would be the contents of the bill,” said Larry Barcelo, Assistant Commissioner of the BIR Legal Service.
The House of Representatives earlier approved on third and final reading House Bill No. 7909 or the bill extending the coverage and period of availing the Estate Tax Amnesty from June 14 2023, to June 14, 2025.
The measure seeks to amend Republic Act (RA) 11213 as amended, also known as the “Tax Amnesty Act.”
However, Sen. Robin Padilla saw it necessary for the BIR and related agencies to respond whether this would benefit the Marcos heirs as some critics have expressed concerns the passage of the bill into law would exonerate the President and his kin on the unpaid estate taxes of the Marcoses since 1991 that ballooned to an estimated P203-billion, considering the Supreme Court's decision on the case.
“Because the people might say the three of us here are exerting efforts to provide relief to the President,” Padilla said, referring to himself, Gatchalian and Sen. Nancy Binay who participated in the hearing.
Barcelo merely responded saying the current bill carries the same restrictions and limitations provided under the Tax Amnesty Act and RA 11568 or an Act extending the Estate Tax Amnesty including the basis for availment.
“The bill indicates the restrictions and limitations of availing (estate tax amnesty). And I’m sure the present bill will provide the same restrictions and limitations and the basis for availment,” Barcelo said.
“And that would be the basis of the BIR…We will evaluate the application based on what is provided for by the law, and what are the restrictions provided in the law. That would be the basis of the evaluation of the BIR,” the BIR official added.
Study move to scrap estate taxes
Sen. Nancy Binay, meanwhile, said she believes it is time for the government to consider the merits and demerits of abolishing estate taxes in the Philippines, considering the arduous experiences of citizens, especially the poor, in settling their estate taxes. "Maybe we need to discuss and study to do away with estate taxes, not only because the government finds it burdensome to collect but also, in a way, heirs of properties will pay capital gains tax when they take ownership of their inheritance,” Binay said at the hearing. The veteran lawmaker also observed that many taxpayers find it hard and stressful to comply with paying the required estate taxes especially if heirs find out that they have to allot cash when their inheritance is real estate and is not yet liquidated. “So I think it would also be nice to check if, policy-wise, to do away with estate tax,” she said. Gatchalian welcomed Binay’s proposal and ordered the Department of Finance (DOF) and the BIR to study the feasibility of such policy.