Tax amnesty set for implementation in H2

Even as general tax amnesty will be a no-go in April, taxpayers may avail themselves of reprieve from estate tax and delinquencies by the second half of 2019, according to the Department of Finance (DOF).

In a text message to the Inquirer, Finance Assistant Secretary Antonio Joselito G. Lambino II said the tax amnesty would be implemented between July and December, based on the DOF’s timetable.

Republic Act  11213 or the Tax Amnesty Act of 2019 was signed by President Duterte on Feb. 14, but the chief executive vetoed the general tax amnesty provision covering those who failed to pay correct taxes in 2017 and prior years.

General amnesty was supposed to cover all unpaid internal revenue taxes, except customs and import duties.

As for estate tax amnesty, RA 11213 provided for the collection of only 6 percent of a deceased’s total net estate at the time of death, for those who died on or before Dec. 31, 2017.

The amnesty on delinquencies, which was not included in previous tax amnesties, will allow payments of a smaller amount of interest and surcharges for final assessments that taxpayers can no longer appeal.

For delinquencies and assessments that have become final and executory, the tax amnesty rate will be 40 percent of the basic tax assessed.

A bigger rate of 50 percent will be slapped against tax cases that were subject to courts’ final and executory judgment.

An amnesty rate of 60 percent will apply to pending criminal cases with criminal information filed with the Department of Justice  or the courts for tax evasion and other criminal offenses under the Tax Code, with or without assessments duly issued.

In the case of withholding agents that withheld taxes but did not remit them to the Bureau of Internal Revenue, they can pay 100 percent of the basic tax assessed. —BEN DE VERA