House pitches estate tax amnesty deadline extension to Senate

TO accomodate more taxpayers, the House of Representatives on Tuesday endorsed for Senate approval a bill extending the period to avail of the estate tax amnesty.

This after lawmakers—voting 209 affirmative, zero negative with no abstention—approved House Bill 7068 on third and final reading. The measure amends Section 6 of Republic Act 11213 or the Tax Amnesty law.

The bill extends the period of availment of estate tax amnesty from two years to four years.

House Committee on Ways and Means Chairman Joey Sarte Salceda, sponsor of the measure, said the estate tax amnesty allows the transfer of long unsettled estates so these can be productive.

“The original deadline of availment and payment on April 23, 2020, has since been extended four times. However, only 23,911 persons have availed of the amnesty, earning only P1.362 billion out of the potential P6 billion,” he said.

“estate tax amnesty extension, as far as it releases land for productive use and raises revenues for the government, should be considered a stimulus bill. The extension of the estate tax amnesty acknowledges the plain reality that it has become very difficult to process papers because of Covid-19,” he added.

According to Salceda, the approval of the estate tax amnesty extension is a “win-win” for all stakeholders.

The bill was authored by Majority Leader Martin Romualdez, Tingog Party-list Rep. Yedda Marie Romualdez, and Deputy Majority Leader Wilter Wee Palma II.

According to them, amending RA 11213 will enable those who want to take advantage of the program to have ample time to recoup their resources and get back on their feet so they can still apply and pay their estate tax dues.

They said this accounts for why everyone with outstanding estate tax liabilities as of December 31, 2017, “is 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 noted.