THE tax amnesty bill and amendments to the Central Bank Act that were ratified by the Senate last December have already been transmitted to the office of President Rodrigo Duterte for his signature.
Copies of the two bills were sent to Malacañang on January 17 and are now awaiting the approval of the President.
The Tax Amnesty Act of 2018 will provide reprieve to taxpayers who have outstanding tax obligations in estate and general taxes for taxable year 2017 and prior years, and pay a rate of 6 percent based on the total net estate.
The New Central Bank Act will strengthen the regulatory powers and increase the capitalization of the Bangko Sentral ng Pilipinas’ (BSP) from P50 billion to P200 billion.
Those who will avail of the amnesty program will be immune from paying the taxes and the filing of civil, criminal and administrative cases and other penalties.
The measure is seen to encourage those in the formal and non-formal sector to legitimize, properly declare and pay the correct taxes without fear of civil, criminal or administrative penalties.
The grant of general amnesty which shall cover all national internal revenue taxes, including value-added tax (VAT) and excise taxes collected by the Bureau of Customs is also included in the bill.
In lieu of the taxes supposed to be paid, only five percent of the total net worth or a minimum of tax depending on the subscribed capital for corporations, will be collected.
Meanwhile, Senator Chiz Escudero, chair of the Senate Committee on Banks, Financial Institutions and Currencies, said there is a need for the BSP to respond to contemporary challenges in order to remain effective in its conduct of monetary policy and supervision of entities within the financial system.