House approves amnesty tax bills
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by Land Asia Listings
- February 14, 2017
- Real Estate Updates
- 0
Updated February 14, 2017 – 12:00am
http://www.philstar.com/headli
MANILA, Philippines – The House of Representatives last night approved on third and final reading two consolidated measures seeking to grant amnesty in the payment of estate taxes and simplifying the estate tax rate.
A total of 216 congressmen voted to approve the measures in plenary. No one voted against it.
House Deputy Speaker Romero Quimbo, one of the principal authors of HB 4814, said the measure seeks to promote the settlement of estates and free-up properties of unsettled estates. The primary objective of the bill is to generate financial transactions and stimulate economic activity while at the same time increase tax collection.
The measure grants estate tax amnesty within two years from the issuance of the implementing rules and regulations of the measure at a rate of six percent of the decedent’s net estate.
HB 4814 also provides immunities and privileges to amnesty beneficiaries, including immunity from the payment of estate tax and from civil, criminal or administrative penalties.
The proposed amnesty would cover estate taxes for 2016 and prior years.
“The primary cause of the inability to settle estate taxes is due to the high rates and second, the inability to cope with the penalties that have accrued. In 95 percent of the cases, the penalties are even higher than the value of the properties,” Quimbo said.
He noted that if delinquent taxes are amnestied, the properties could be leased, sold or developed under joint ventures, and such transactions would generate taxes. The government would earn income since amnesty applications would be asked to pay a small fee.
On the other hand, HB 4815 seeks to reduce the existing estate tax rates and ensure fair taxation.
Quirino Rep. Dakila Carlo Cua, chairman of the House committee on ways and means and principal author of HB 4815, said the measure proposes a single tax rate of six percent on estates based on the value of the net estate.
