DOF backs bill extending estate tax amnesty period

The Department of Finance (DOF) on Tuesday assured the Senate that it will support the bill extending the period of availment of Estate Tax Amnesty for another two years.

During a Senate ways and means panel hearing, Senate Minority Leader Franklin Drilon pointed out that Congress had to rush the approval of the bill as the current measure will expire on June 15.

He explained that lawmakers will only waste their time if the DOF will not throw its support for the passage of the bill as President Rodrigo Duterte relies on their position.

“This law, the amnesty, will expire on June 15, if I’m not mistaken. So we must rush this measure in order, if we are minded to, in order that we can have the measure in the desk of the President before June 15, but that effort will be useless if the position of the [DOF] is that we should no longer extend the amnesty,” he said.

“I am certain that they will recommend the veto. And I am certain that the president will defer to the Secretary of Finance. So what are we doing. Unless the [DOF] says we will not recommend the veto, unless they say that, I don’t really see the point in wasting our time on this bill, given our very tight schedule after May 17,” Drilon explained.

In response, Finance Undersecretary Antonette Tionko said the DOF has no objections to the two-year extension of the Estate Tax Amnesty.

However, she pointed out that there have been difficulties in implementing the amnesty and they were not able to collect the projected revenue due to some technicalities in its implementation.

“We recognize that it takes time to have all these extrajudicial settlement agreement and all the appeals that you need…All your tax debts and everything. We recognize that it takes a long time to get all of those and then we had COVID,” she said.

“So the DoF has no objection to the 2 year extension of the tax amnesty,” she added.

Tionko also told the lawmakers that the bill contained one provision which was previously vetoed by the President in the last version of the bill.

The provision states that: “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 or administrators thereof shall only file one (1) Estate Tax Amnesty Return and pay the corresponding estate amnesty tax thereon 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 of 1997, as amended, arising from the transfer of such estate from ati prior decedents or donors through which the property or properties  comprising the estate shall pass.”

The Senate ways and means panel tackled Senate Bill 2051 and House Bill 7068.

SB 2051 seeks to extend the period of availment of estate tax amnesty under Republic Act 11213 for another two years.

The measure seeks to allow individuals who have not filed their returns and settled their tax obligations in light of the travel restrictions and economic difficulties brought about by the pandemic and to infuse more resources for the government's welfare and recovery programs.

In September, the House of Representatives has approved HB 7068 on third and final reading which seeks to extend the period within which to avail of estate tax amnesty from the current two years to four.

All tax-related measures should emanate from the House of Representatives before the Senate plenary can act on it.—LDF, GMA News