Updated Dec 14, 2018, 8:39:21 AM
Metro Manila (CNN Philippines, December 13) — People with tax liabilities will be able to settle these in an amnesty bill that is a step closer to becoming a law.
In a statement, Senate ways and means committee chairman Sonny Angara said the Senate ratified the bicameral conference committee report on the tax amnesty bill Thursday. The House ratified it Wednesday. The measure will be transmitted to Malacañang for signing by the President into law.
"This is but another step in the long quest toward an efficient and equitable tax system," Angara said.
The bill allows taxpayers to settle their tax obligations for the years 2017 and earlier through a one-time payment. These include estate taxes, general taxes and other delinquent accounts.
The government estimates to raise up to ₱41 billion from uncollected taxes. This would go to funding its infrastructure program and mitigating measures for those most affected by the Tax Reform for Acceleration and Inclusion law.
"For general tax amnesty, the bicam panel agreed that taxpayers would be given the option to choose the rate between 2% of total assets or 5% of net worth or a minimum tax," the statement read.
It will also offer amnesty for unpaid estate taxes, charging a rate of 6 percent based on the total net estate to be settled by the heirs.
For delinquencies, the bill offers taxpayers an option of paying 40 to 60 percent of the uncollected tax.
This bill also places a fine of ₱150,000 and a maximum of 10 years in jail for violators from the private sector. Government officials or employees will be fined up to ₱1 million, face a maximum of five years of jail time and will be permanently disqualified from public office.