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AVAIL OF ESTATE TAX AMNESTY – PIMENTEL

Senator Koko Pimentel III is encouraging delinquent taxpayers with unsettled estate tax liabilities to avail of the amnesty period provided by Republic Act 11213, which was signed into law by President Rodrigo Duterte on Feb. 14.

The new “Tax Amnesty Act” aims to enhance revenue generation for the government by encouraging citizens to pay the correct amount of taxes without any of the incurred penalties and fines.

Pimentel authored Senate Bill 293 in 2016 providing for a one-time amnesty on estate taxes. The bill was made part and became an integral portion of RA 11213.

“The tax amnesty provides an opportunity to save on hefty fines.”

“Now’s the time for those with estate tax delinquencies to settle their obligations with the government. The tax amnesty provides an opportunity to save on hefty fines. Availment of the benefits of the law will be good both for the taxpayer and the government so this is a win-win situation,” Pimentel said.

An entire section of the comprehensive revenue measure is devoted to the tax levied on the transfer of the properties of the deceased or “decedent” on the “estate” or sum of that person’s properties.

Under the new law, the amnesty period covers the properties of decedents who died on or before Dec. 31, 2017 and whose estate taxes have remained unpaid as of that date.

RA 11213 pegs the tax rate at 6 percent computed from the net estate at the time of death.

Government would be able to earn from these delinquent payments

The President however, vetoed certain provisions of the law relating to general tax relief for both persons and corporations that failed to pay correct taxes for 2017 and earlier.

In a message after signing the law, the Chief Executive called on Congress to pass a separate general tax amnesty bill that included the lifting of bank secrecy for cases of fraud, saying that the move would strongly address the matter of tax evasion.

Pimentel, meanwhile, expressed elation that the Estate Tax Amnesty was retained under the Republic Act.

“The measure would still be effective as a revenue-generating measure because the benefits on the tax on properties of decedents still stands, and the government would be able to earn from these delinquent payments,” the legislator said.

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