THE House Committee on Ways and Means approved last Tuesday the substitute bill granting general tax amnesty for one year on all unpaid national internal revenue taxes for taxable year 2018 and prior years.
Albay Rep. Jose S. Salceda said the substitute bill was unanimously approved by members of the committee.
Salceda, chairman of the committee, said the bill seeks to generate substantial revenue and provide the government flexibility in collecting taxes while encouraging errant taxpayers to settle their liabilities.
According to Salceda, the bill allots the revenue generated to be spent for the establishment of the database of the Bureau of Internal Revenue (BIR), the government’s social mitigating services and the ‘Build Build Build’ program.
The bill was introduced by House Committee on Economic Affairs Chairman Sharon S. Garin of AAMBIS-OWA Party-list and House Committee on Ways and Means Senior Vice-Chairman Estrellita B. Suansing.
Garin said the bill seeks to improve and increase the level of public tax consciousness, give errant taxpayers a chance to enter the tax system on a clean slate, widen the tax base and ultimately raise additional revenues for the government.
For her part, Suansing said the measure contains the safeguards sought for a more balanced general tax amnesty, given the refinements introduced.
The measure provides that all unpaid national internal revenue taxes such as, but not limited to, income tax, withholding tax, capital gains tax, donor’s tax, value-added tax, percentage tax, excise tax and documentary stamp tax collected by the BIR and the Bureau of Customs within the stated period shall be relieved from payment of penalties and surcharges.
It said a taxpayer who will avail of the amnesty is granted certain immunities and privileges from civil, administrative and criminal penalties.
The bill also allows those who would avail of general tax amnesty to opt to pay 3 percent the taxpayer’s net worth as reflected in the Statement of Assets, Liabilities, and Networth (SALN) as of December 31, 2018.
The measure said the bill also provides for the lifting of bank secrecy, automatic exchange of information and the adoption of the Foreign Account Tax Compliance Act (Fatca).
The bill also reduces the total tax due if the taxpayer settles the tax liability earlier.
It, however, excludes the following: withholding tax agents who failed to remit withheld taxes; taxpayers with cases pending in appropriate courts falling under the jurisdiction of the Presidential Commission on Good Government; unexplained wealth under Republic Act (RA) 3019 and crimes of Plunder under RA 7080; violations of the Anti-Money Laundering Act; tax evasion under Chapter II Title X of the NIRC, as amended; felonies under Chapters III and IV of Title VII of the Revised Penal Code; and, delinquencies, assessments and tax cases that have become final and executory.
Moreover, the measure allows those who would avail of general tax amnesty not to pay penalties, surcharges, and interests.
The bill also provides those who would avail shall not be liable from any civil, criminal and administrative cases and penalties under the NIRC of 1997, as amended, and be exempt from such investigations or suits insofar as the tax liabilities are concerned.
The bill allows those availing of tax amnesty to enjoy settlement and termination of tax delinquencies and assessments and to be immune from all suits or action including the payment of penalties, interests and surcharges, among others. The bill also allows them not to be civilly, criminally and administratively liable under the National Internal Revenue Code of 1997 and from investigations or suits relating to the Statements of Total Assets or Statements of Assets, Liabilities and Net worth, and insofar as the tax liabilities are concerned.
The bill penalizes the unlawful divulgence of information of the availing taxpayers including all the submitted documents relating to the availment of any of the tax amnesties.
On February 14, 2019, President Duterte signed the Tax Amnesty Act on February 14, 2019, granting Estate Tax Amnesty and Tax Amnesty on Delinquencies. However, he vetoed Title III, or the General Tax Amnesty (GTA) Act by virtue of RA Number 11213.
The president vetoed the GTA Act until the Congress agrees to lift bank secrecy for fraud cases, to provide a provision for the automatic exchange of information; and to include safeguards to ensure that asset or net worth declarations are truthful.