Solon pushes one-time tax amnesty.
Manila, Philippines - A ranking official of the House of Representatives has filed a bill granting tax amnesty to delinquent taxpayers in a bid to collect over P300 billion in unpaid revenues from 2011 and prior years.
Deputy Speaker Giorgidi Aggabao filed House Bill 3674 as he lamented a 188 percent increase in delinquent tax accounts between 2011 and 2012.
Aggabao, a member of the Nationalist People's Coalition, said the 2012 tax delinquency of P298.981 billion was higher than the unpaid account in 2011 which was P103.757.
"Bureau of Internal Revenue Commissioner Kim Henares explained that the delinquent accounts include bad checks that date back prior to the present administration," said Aggabao.
HB 3674 proposes the grant of a one-time tax amnesty on all unpaid and/or delinquent national internal revenue taxes imposed by the national government for taxable years 2011 and prior years.
"This measure is seen as a good compromise for taxpayers to settle their unpaid and/or delinquent taxes and at the same time, help the government maintain, if not further improve its favorable investment rating," Aggabao stressed.
Under the bill, a taxpayer seeking to avail himself of the tax condonation may apply for such privilege by submitting a tax amnesty return accompanied with a statements of assets, liabilities, and networth as of December 31, 2012.
The SALN will be considered true and correct, except where the amount of declared networth is understated by 30 percent.
Taxpayers who will apply for amnesty will amend the previous filed balance sheet or SALN by including still undeclared assets and/or liabilities and pay an amnesty tax equal to five percent of the resulting increase in networth.
Those who have foreign currency assets and/or securities abroad may avail of tax amnesty at the rate equivalent to three percent of the peso amount at prevailing exchange rate of the repatriated foreign currency assets or securities,.
Taxpayers who are being subjected to pending tax assessments before the BIR may avail themselves of the tax amnesty equivalent to 10 percent of the basic tax assessed, exclusive of interest, surcharges and penalties.
On the other hand those who have already been given final assessment notices or have pending cases before the courts, will be granted immunities and privileges arising from the failure to pay any and all internal revenue taxes for 2013 and prior years.
Meanwhile, Aggabao said the amnesty privilege will not be extended to withholding agents with respect to the withholding tax liabilities, those with pending cases under the jurisdiction of the Presidential Commission on Good Government, and those facing chargers for unexplained wealth.