Tax amnesty bill to raise P50 B for gov’t – JDV

The one-time tax amnesty bill that the House of Representatives approved on Tuesday night could raise up to P50 billion in additional revenues for the government, Speaker Jose de Venecia Jr. said yesterday.

"Our conservative estimate is that this bill, which the Senate passed earlier, will generate at least P10 billion. The optimistic estimate is P50 billion," he told a news conference.

He said the additional revenues would substantially reduce next year’s budget deficit and could allow government to wipe out the financing gap and balance the budget.

"The tax amnesty will provide delinquent taxpayers an opportunity to start with a clean slate and comply with our tax laws. By bringing in a large number of errant taxpayers into the fold of national taxation, the tax amnesty program will result in a broader and updated tax base and future non-compliance will be proportionately reduced," he said.

Under the bill, the amnesty would be available to taxpayers with delinquencies for 2003 and prior years.

An applicant would be required to file a statement of assets and liabilities. An amnesty fee of five percent would be levied on his or her net worth. Delinquent taxpayers can apply for amnesty with the Bureau of Internal Revenue within four months from the effectivity of the law.

The grant of an amnesty wipes out the taxpayer’s tax liabilities for the years covered. He would be immune from any kind of prosecution or investigation arising from such liabilities.

The immunities would not apply if the taxpayer understates his net worth as of Dec. 31, 2003 by 30 percent or more.

Excluded from the amnesty program are employers with withholding tax liabilities, those with pending cases with the Presidential Commission on Good Government and Sandiganbayan, those with cases for violating the Anti-Money Laundering Law, and those with final and executory judgment by the courts.

The amnesty bill is one of more than 20 measures the House passed on Tuesday, the last day of the special session of Congress.

"We produced a rich harvest of bills during the two-day special session. We approved the long-awaited anti-terrorism bill on the first day," De Venecia said.

He said he took a risk in recommending to President Arroyo the calling of the special session.

"Many feared that we in the House wouldn’t be able to muster quorum. As it turned out, 170 members, more than half of the House, showed up for the session. We responded overwhelmingly to the President’s call," he added.