 |
 |
|
|
       |
Prior tax-amnesty programs had little returns |
|
By Arnold S. Tenorio, Senior Reporter
(December 04, 2003 - Thursday, The Manila Times, BusinessTime Section, p. b1-b2) THE Department of Finance admits that previous tax amnesty programs generated meager returns for government. |
|
“Aside from being non-recurrent, records of the past amnesties show that revenues collected were not substantive by present standard,” the DOF said in a position paper submitted to the Senate committee on ways and means.
The Senate committee on ways and means is deliberating on a proposed bill that would require a taxpayer with assets of at least P100,000 to file a statement of assets, liabilities and net worth (SALN). The SALN would be used as a tool whereby the Bureau of Internal Revenue could build a taxpayer database and track his financial condition. At the same time, the proposed measure would also provide for a tax amnesty program whereby a tax filer who under-declared or failed to declare his actual net worth prior to 2002 would be pardoned for his incorrect declaration and levied a 3-percent tax based on his net worth. The finance department, in its position paper, cited 10 amnesty programs undertaken by the Marcos regime, which yielded only P1.5 billion. The amnesty programs implemented by the Aquino administration managed to generate only P1.37 billion. In this regard, the DOF wants to insert a provision into the bill declaring a moratorium on future tax amnesties. “Tax amnesties, when often granted, can be counter-productive. They can be interpreted as a sign of weaknesses on the part of government and its enforcement mechanism, and might encourage taxpayers not to fulfill their tax obligations motivated by the speculation that another tax amnesty is in the offing,” the position paper read. Malacañang, upon prodding from the Federation of Filipino-Chinese Chambers of Commerce, wants Congress to expedite passage of the tax-amnesty bill. Earlier, Finance Undersecretary Grace Pulido-Tan said the department would support the bill if safeguards were introduced into the proposed measure. Apart from the moratorium on future amnesties, the DOF wants to exclude from the tax amnesty program taxpayers with pending cases before the Presidential Commission on Good Government or the Sandiganbayan; those accused of violating the Anti-Money Laundering Act; those accused of fraud, illegal extractions and malversation of public funds under the Revised Penal Code; and those tax cases covered by final and executory judgement by the courts. Under HB 5718, nonresident citizens who qualify for the tax amnesty would only have to pay 2 percent of their net worth, or P15,000 whichever is higher, while resident citizens should shell out 3 percent of their net worth, or P20,000 whichever is higher. A company with a subscribed capital of at least P50 million can pay either 3 percent of their net worth or P500,000 whichever is higher. A business enterprise with a subscribed capital of between P20 million and P50 million should pay either 3 percent of its net worth or P250,000 whichever is higher, while a firm with a subscribed capital of P20 million and below is levied 3 percent of his net worth or P100,000, whichever is higher. After complying with the tax amnesty program, a tax filer would be immune from the civil, criminal or administrative penalties that otherwise should have been imposed by government under the National Internal Revenue Code, the Revised Penal Code, the Anti-Graft and Corrupt Practices Act, or any other applicable law. Furthermore, the tax filer’s amnesty declaration and SALN cannot be used against him as evidence in any tax proceeding involving claims due government before 2002. Similarly, the tax filer’s book of accounts and other tax records for the period during which he enjoys the amnesty would not be subject to examination. 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 |
