 |
 |
|
|
       |
DOF holds back recommendation on tax amnesty measure |
|
By Des Ferriols
(Wednesday, December 03, 2003 - The Philippine Star) The Department of Finance (DOF) said yesterday it is holding back its recommendation for Malacanang to classify as an urgent measure a tax amnesty bill pending for approval by the Congress. |
|
Finance Undersecretary Grace P. Tan said the DOF would recommend the certification only if the proposed bill incorporates the safety net measures that would prevent the amnesty program from being abused.
The proposed tax amnesty bill would allow delinquent taxpayers to declare their statement of assets, liabilities and net-worth (SALN) and then pay a minimal amnesty tax for taxable year 2001 and prior years. If they qualify for amnesty, the bill proposed to give delinquent taxpayers immunity from civil, criminal or administrative penalties under the National Internal Revenue Code (NIRC), the Revised Penal Code and the Anti-Graft and Corrupt Practices Act. The Filipino-Chinese Chamber of Commerce and Industry (FCCI) has been lobbying for Malacañang to certify the bill as an urgent measure but the DOF said President Arroyo was still waiting for the finance department to make its recommendations on the proposed measure. "Initially, the DOF’s position is supportive because it is more realistic to allow delinquent taxpayers to come cleanly rather than going after them with penalties and criminal cases which has proven difficult if not nearly impossible, " Tan said. In its initial position paper submitted to the Senate ways and means committee, the DOF said it was supportive of the provisions that required the submission of the SALN since this would flush out delinquent taxpayers once and for all. Ultimately, the DOF said this will enable new individual and corporate taxpayers to surface and be added to the list, expanding the existing tax base and improving future revenue collections. However, the DOF said it opposed the major provision giving amnesty even to taxpayers with pending cases under the Anti-Graft and Corrupt Practices Act as well as those under the jurisdiction of the Presidential Commission on Good Government. The DOF also wanted the tax amnesty program to exclude and disqualify those with pending cases under the Anti-Money Laundering Law as well as cases involving felonies of fraud, illegal exactions and transactions, malversation of public funds and property. Tan explained that delinquent taxpayers who were involved in such cases should not qualify and get away with their original crimes. "The amnesty should only apply to those who legitimately acquired their assets but did not pay the right taxes," she said. "If they got their assets from illegal means, then they should not qualify for amnesty." The DOF also wanted some adjustments in the proposed amnesty tax applicable on all unpaid internal revenue taxes imposed by the government for 2001 and prior years. The bill proposed to base the tax on the net-worth as of December 31, 2001 declared by the filer in the SALN. For individuals, the bill proposed to impose an amnesty tax of two to three percent and three percent for corporate taxpayers. But the DOF said the rate should be at three to four percent for self-employed individuals, about three to four percent for small to medium corporations and nine percent for large corporations. "Thus, we think that it would be reasonable to recommend the 10 percent rate based on the increase in net worth and the 3 percent rate based on total net worth," the DOF said. home | latest news |
 |
Circular Letters/Memoranda |
|
Speeches/ Presentations |
|
Photo Gallery |
|
The 2008 RBAP Charter Symposium |
|
2008 CFI Awards |
|
Rural Banking Week Celebration Golf Tournament |
|
Client Satisfaction Survey for Licensing Management System of the Supervision and Examination Sector |
|
Financial Reporting Package 2008 |
|
BSP releases regulations on liquidity, market risk weighting |
