Estate tax amnesty extension gains DOF support


The proposed extension of estate tax amnesty for another two years has gained the support of the Department of Finance (DOF).

During a Senate hearing on Tuesday in relation to Senate Bill 2051, Finance Undersecretary Antonette Tionko conveyed DOF’s position, saying, ”the DoF has no objection to the two-year extension of the tax amnesty.”

A version of House Bill 7068, the Senate proposal seeks to stretch the deadline for the tax amnesty from December 31, 2020 to December 31, 2022. The proposed measure aims to give taxpayers more time to avail the program as the coronavirus disease 2019 pandemic restrictions has affected the filing of applications.

But Tionko said the bills basically copied the provisions of the Republic Act 11213 or the Tax Amnesty law, which was partially vetoed.

She said included in the proposed measures is the particular provision, which states: “Provided further that if the estate involved has properties, which are still in the name of another decedent or donor, the present holder, heirs, executors, administrators thereof shall file only one estate tax amnesty return, and pay the corresponding estate tax amnesty based on the total net estate at the time of death of the last decedent, covering all accrued taxes under the National Internal Revenue Code arising from transfer of such estate from all prior decedents or donors to which the property or properties comprising the estate shall pass.”

“So that particular provision was vetoed in the last law. So it’s only to that provision that we express some reservation, but as to the extension, we are in support of the extension of two years,” Tionko added.

For its part, the Bureau of Internal Revenue (BIR) said it will follow to policy direction of the Finance department.

Deputy Commissioner Marissa Cabreros said the program ran continuously for 10 months since the publication of its implementing rules and regulations in June 2019, and before the pandemic set in.

However, the pandemic affected the filing of the application of the availers as it made the gathering of documents difficult because of travel restrictions.

“But so far, we have almost 43,700 availers and was able to generate collection of around P2.5 billion from 2019 to date. However, this is way beyond the expected target when the law was first enacted.”

The BIR has said it expected to collect some P6.28 billion from the program.

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