Duterte asks Congress to pass another tax amnesty measure
Published Feb 18, 2019 06:00 pm
By Genalyn Kabiling
President Duterte has called on Congress to pass another tax amnesty measure with proper safeguards that would include the lifting of bank secrecy for fraud cases.
President Rodrigo Roa Duterte
(ROBINSON NIÑAL JR./PRESIDENTIAL PHOTO / MANILA BULLETIN) The President made the appeal after he vetoed the grant of general amnesty and two other provisions in the new Republic Act No. 11213 or the Tax Amnesty Act. Duterte, in his veto message to Congress, cautioned that an "overgenerous and unregulated" general amnesty program could be prone to abuse and create an environment conducive to tax evasion. "The general amnesty program is meant to give taxpayers a fresh start as well as to signal the start of a fair tax enforcement campaign by the tax authorities. It is not meant to be abused for the gain of the few and the loss of the rest of the citizenry," he said. "Given these, I ask Congress to pass another general tax amnesty bill that includes the lifting of bank secrecy for fraud cases, the inclusion of automatic exchange of information and safeguards to ensure that asset or net worth declarations are truthful,” he added. With these provisions, Duterte noted that the general tax amnesty measure will meet both of its tax administration and revenue purposes. He said safeguards against tax evasion are estimated to contribute to P76.6 billion to the public funds in the next five years which the government hopes to use to better infrastructure and services. The President recently signed Republic Act No. 11213 or the Tax Amnesty Act, but vetoed three provisions that might be open to abuse. The estate tax amnesty program and the amnesty on delinquency taxes, on the other hand, were kept in the new law. RA 11213 or the "Act enhancing revenue administration and collection by granting an amnesty on all unpaid integral revenue taxes imposed by the national government for taxable year 2017 and prior years with respect to estate tax, other internal revenue taxes and tax on delinquencies" was signed by the President last February 14. Duterte first disagreed with the general amnesty provision of the law due to lack of provisions on "breaking down the walls of bank secrecy," among others. "Without the provisions breaking down the walls of bank secrecy, setting the legal framework for us to comply with international standards on exchange of information for tax purposes, and safeguarding against those who abuse the amnesty by declaring an untruthful asset or net worth," he said. Duterte also vetoed a provision allowing one-time declaration and settlement of estate taxes on properties subject of multiple unsettled estate. He explained there was a need to apply estate tax amnesty at every stage of the transfer of the property. "The tax on estates is imposed not because of the property itself but on the privilege of transferring the property to the heirs," he said. "The flat rate of six percent estate amnesty tax without penalties imposed at every stage of transfer is more than a fair impassion on the privilege," he added. Another provision vetoed by the President was the presumption of correction of the estate tax amnesty returns. He said there should an opportunity to evaluate the truthfulness of the devaluations made by the taxpayers. Implementing agencies cannot act as mere stamping pads of approval and instead must be empowered to correct appoint misinformation and misdeclaration made in the course of amnesty," he said. The President, meantime, urged taxpayers to avail of the new tax amnesty law to get a chance to have a clean slate. He said with the estate tax amnesty, long unsettled estates can now be transferred. "Without the burden of tax liabilities, the heirs can focus on making idle properties productive thereby bringing economic benefit to their families," he said. The amnesty on delinquency is also expected to help taxpayers failing in their tax obligations to have a fresh start and be fee from civil and criminal consequences, according to the President. It is the hope of this administration that with the decongestion of the dockets, our administrative and judicial bodies can focus on resolving cases of more significance," he said.
President Rodrigo Roa Duterte(ROBINSON NIÑAL JR./PRESIDENTIAL PHOTO / MANILA BULLETIN) The President made the appeal after he vetoed the grant of general amnesty and two other provisions in the new Republic Act No. 11213 or the Tax Amnesty Act. Duterte, in his veto message to Congress, cautioned that an "overgenerous and unregulated" general amnesty program could be prone to abuse and create an environment conducive to tax evasion. "The general amnesty program is meant to give taxpayers a fresh start as well as to signal the start of a fair tax enforcement campaign by the tax authorities. It is not meant to be abused for the gain of the few and the loss of the rest of the citizenry," he said. "Given these, I ask Congress to pass another general tax amnesty bill that includes the lifting of bank secrecy for fraud cases, the inclusion of automatic exchange of information and safeguards to ensure that asset or net worth declarations are truthful,” he added. With these provisions, Duterte noted that the general tax amnesty measure will meet both of its tax administration and revenue purposes. He said safeguards against tax evasion are estimated to contribute to P76.6 billion to the public funds in the next five years which the government hopes to use to better infrastructure and services. The President recently signed Republic Act No. 11213 or the Tax Amnesty Act, but vetoed three provisions that might be open to abuse. The estate tax amnesty program and the amnesty on delinquency taxes, on the other hand, were kept in the new law. RA 11213 or the "Act enhancing revenue administration and collection by granting an amnesty on all unpaid integral revenue taxes imposed by the national government for taxable year 2017 and prior years with respect to estate tax, other internal revenue taxes and tax on delinquencies" was signed by the President last February 14. Duterte first disagreed with the general amnesty provision of the law due to lack of provisions on "breaking down the walls of bank secrecy," among others. "Without the provisions breaking down the walls of bank secrecy, setting the legal framework for us to comply with international standards on exchange of information for tax purposes, and safeguarding against those who abuse the amnesty by declaring an untruthful asset or net worth," he said. Duterte also vetoed a provision allowing one-time declaration and settlement of estate taxes on properties subject of multiple unsettled estate. He explained there was a need to apply estate tax amnesty at every stage of the transfer of the property. "The tax on estates is imposed not because of the property itself but on the privilege of transferring the property to the heirs," he said. "The flat rate of six percent estate amnesty tax without penalties imposed at every stage of transfer is more than a fair impassion on the privilege," he added. Another provision vetoed by the President was the presumption of correction of the estate tax amnesty returns. He said there should an opportunity to evaluate the truthfulness of the devaluations made by the taxpayers. Implementing agencies cannot act as mere stamping pads of approval and instead must be empowered to correct appoint misinformation and misdeclaration made in the course of amnesty," he said. The President, meantime, urged taxpayers to avail of the new tax amnesty law to get a chance to have a clean slate. He said with the estate tax amnesty, long unsettled estates can now be transferred. "Without the burden of tax liabilities, the heirs can focus on making idle properties productive thereby bringing economic benefit to their families," he said. The amnesty on delinquency is also expected to help taxpayers failing in their tax obligations to have a fresh start and be fee from civil and criminal consequences, according to the President. It is the hope of this administration that with the decongestion of the dockets, our administrative and judicial bodies can focus on resolving cases of more significance," he said.