House approves extension of period to avail of estate tax amnesty

The House of Representatives on Tuesday approved on third and final reading the measure seeking to extend the period within which to avail of estate tax amnesty from the current two years to four.

With an overwhelming 209 affirmative votes, the chamber approved House Bill 7068, amending Section 6 of RA 11213 or the Tax Amnesty Law.

The Bureau of Internal Revenue defines estate tax as “tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition.”

Under RA 11213, a tax amnesty is granted to the estate of decedents who died on or before December 31, 2017, with or without prior assessments, whose estate taxes have remained unpaid or have accrued as of that same date.

But House Committee on Ways and Means chair Joey Salceda, who sponsored the measure on the floor, said the original deadline of availment and payment of the estate taxes has since been extended four times, with the new deadline set on December 31, 2020.

"However, only 23,911 persons have availed of the amnesty, earning only P1.362 billion out of the potential P6 billion plus," he said. "Thus, it is apt that we extend it through legislation."

Majority Leader Martin Romualdez, Tingog Sinirangan party-list Representative Yedda Marie Romualdez, and Deputy Majority Leader Wilter Wee "Sharky" Palma, who principally authored the measure, said amending the Tax Amnesty Law will allow those who want to avail the amnesty to have more time to recoup their resources so they can still apply and pay their estate tax dues.

They added that those who have outstanding estate tax liabilities as of December 31, 2017 are "encouraged to take advantage of this excellent and rare opportunity offered by the government.”

"It's just unfortunate that the Philippines is not spared from the ill effects of the COVID-19 pandemic, wherein many people lost their jobs and folded up their businesses. Most economic activities were stalled. The people lost precious period of time and possible sources of income in order to avail of this tax amnesty program of the government," they continued. -NB, GMA News