Lawmaker wants tax amnesty program extended

MANILA, Philippines- A member of the House of Representatives wants the Bureau of Internal Revenue's one-time general tax amnesty extended until May to allow more delinquent taxpayers to avail of the program. In an interview with reporters on Monday, Quezon Rep. Danilo Suarez said he has written Finance Secretary Margarito Teves to seek an extension of the implementation of Republic Act 9480 otherwise known as the Tax Amnesty Act of 2007, which expired last March 6. The lawmaker said taxpayers who want more time to avail of the amnesty, may go to the Supreme Court to ask for an extension. Suarez, who authored the general amnesty law for delinquent taxpayers, said several business organization led by Financial Executives Institute of the Philippines and the Tax Management Association of the Philippines also want more time to avail of the program. Teves revealed last week that the program, which has been in place since September 6, yielded less than P2 billion in additional revenues for the government, not even half of the target amount of P4 billion. Suarez said taxpayers were not given enough time to avail of the general tax amnesty program due to the delayed release of its implementing rules and regulations as well as guidelines by the Department of Finance and the BIR. The BIR was only able to issue the program's basic guidelines on August 28, and additional rules just last week when the program was about to end. The amnesty program covers all national internal revenue taxes that have remained unpaid for the taxable year 2005 and prior years. Participating taxpayers should use the statement of assets and liabilities as of December 2005 as the basis in the computation of their net worth. Under the program, individual taxpayers, estates, trusts and other juridical entities such as cooperatives and foundations who participate in the program would have to shell out P50,000 or five percent of their net worth whichever is higher. On the other hand, corporate taxpayers would have to pay P500,000 or five percent of net worth whichever is higher for those capitalized at above P50 million; P250,000 or five percent for those capitalized between P20 million and P50 million; P100,000 or five percent for those capitalized between P5 million and P20 million; and P25,000 or five percent for those capitalized below P5 million. - GMANews.TV