MANILA – The House of Representatives’ committee on ways and means on Tuesday approved the proposed tax amnesty program to boost the government’s revenue administration and collection.
The panel, chaired by Albay Rep. Joey Salceda, unanimously approved the substitute bill seeking to grant the general tax amnesty for one year on all unpaid national internal revenue taxes for the taxable year 2018 and prior years.
The general amnesty covers income tax, withholding tax, capital gains tax, donor’s tax, value-added tax, other percentage taxes, excise tax, and documentary stamp tax.
The bill allows those who avail of general tax amnesty to opt to pay 3 percent the taxpayer’s net worth as reflected in the Statement of Assets, Liabilities, and Networth (SALN) as of Dec. 31, 2018.
It also provides a one-year lifting of bank secrecy, automatic exchange of information and the adoption of the Foreign Account Tax Compliance Act (FATCA).
AAMBIS-OWA Rep. Sharon Garin, the author of the measure, said it seeks to improve the level of public tax consciousness, give errant taxpayers a chance to enter the tax system on a clean slate, widen the tax base, and ultimately raise additional revenues for the government
“It is imperative to have a general tax amnesty program for the taxpayers’ benefits but with the condition of lifting the bank secrecy and authorizing an automatic exchange of information for certain cases involving tax administration,” Garin said.
Under the bill, those who avail of general tax amnesty would be allowed not to pay penalties, surcharge, and interests.
These taxpayers shall not be liable for any civil, criminal, and administrative cases and penalties under the National Internal Revenue Code. (PNA)