The House of Representatives Committee on Ways and Means in the Philippines has recently given its approval to a bill that extends the amnesty for the payment of estate taxes until June 15, 2025. The bill, known as House Bill (HB) No. 7409, received strong support from 31 members of the committee during a hearing. The aim of the extension is to provide individuals with a longer period to settle their estate taxes, as the previous deadline of June 14, 2023, has not been fully optimized.
While the extension is seen as a necessary measure to address challenges faced by families in filing required documents and meeting cash requirements, the committee chairperson expressed the hope that this will be the last extension granted. There is a desire to explore proactive steps that can optimize the process and promote compliance, such as simplifying filing procedures, offering online options, establishing local assistance centers, addressing non-tax barriers, and seeking relief for overseas Filipino workers (OFWs) regarding special power of attorney (SPA) requirements.
The bill serves as an amendment to Republic Act No. 11213, also known as the Tax Amnesty Act, which was signed into law by former President Rodrigo Duterte in 2019. The Tax Amnesty Act aimed to enhance revenue collection by granting amnesty on unpaid internal revenue taxes for the taxable year 2017 and prior years. However, delays caused by the COVID-19 pandemic have impacted the processing of estate taxes, as various restrictions and lockdown measures have affected operations and document submission.
The extension of the estate tax amnesty recognizes the challenges faced by taxpayers during these exceptional circumstances. It offers relief and additional time for individuals to fulfill their tax obligations and settle their estates properly. By granting this extension, the government seeks to strike a balance between facilitating compliance for taxpayers and ensuring revenue generation for the country’s development.
The approved bill reflects the government’s commitment to supporting individuals in meeting their tax responsibilities and settling their estates effectively. The extension allows taxpayers more time to address their outstanding tax liabilities and provides an opportunity for a smoother estate settlement process. As the bill progresses, it is expected that further discussions and improvements will be made to optimize the estate tax amnesty program, taking into consideration suggestions for simplification and addressing the challenges faced by taxpayers.
Overall, the extension of the estate tax payment amnesty until June 15, 2025 demonstrates the government’s responsiveness to the needs of taxpayers, while also striving to foster an efficient and equitable tax system in the Philippines.
Source: Inquirer.net
