THE House committee on ways and means yesterday approved a bill extending the period for availing of the estate tax amnesty for another two years, from June 15 this year to June 14, 2025.
The panel voted 31-1 foe House Bill No. 7409, authored by Speaker Ferdinand Martin Romualdez, majority leader Manuel Jose Dalipe, Ilocos Norte Rep. Ferdinand Alexander Marcos, and Tingog party-list Reps. Yedda Marie Romualdez and Jude Acidre.
Rep. France Castro (PL, ACT) was the only member who voted against it.
Panel chair Rep. Joey Salceda and the Bureau of Internal Revenue (BIR) assured Castro that President Marcos Jr. and his family, who have an unpaid estate tax of P203 billion, will not benefit from the bill since Republic Act 11213, which is being amended by HB 7409, states that the amnesty will not extend to estate tax cases that have become final and executory.
The Supreme Court decision imposing estate tax on the Marcos heirs became final and executory on March 9, 1999.
“He (President) cannot take advantage of this,” said Salceda.
Proponents pushed for an extension of the estate tax amnesty, previously extended by RA No. 11569, for another two years as many families still have yet to avail themselves of the amnesty.
“Now that the extended deadline — June 14, 2023 — is upon us, we are informed that this tax amnesty is yet to be optimized. Families still struggle to comply with documentary as well as cash requirements. Hence, our leadership filed this measure to give more time to our constituents to clear their obligations,” Salceda said.
On the motion of Nueva Ecija Rep. Ria Vergara, the panel also approved Salceda’s proposal to include a provision which exempts from the 6 percent donor’s ta, heirs who inherit an estate worth a maximum of P1 million.
Salceda said Congress should allow parents, while they are still alive, to make decisions “as they know their children.”
“Instead of us passing estate tax amnesty laws, my suggestion is such an exemption of donor’s tax for those whose estate is worth P1 million and below so the parents can donate to their children before their time and these children won’t have to pay the donor’s tax anymore,” he said.
Salceda called for more “proactive steps to optimize this second estate tax amnesty extension,” saying he was hoping that it will be the last time that Congress will have to extend RA 11213 “because it defeats the purpose of tax compliance if violations will always be forgiven.”
“The steps we can study include simplifying the filing procedure including the option to do it online, opening assistance centers in local governments, relief from the judiciary on rules for signing special power of attorney or SPAs for OFWs abroad, and other steps to address the non-tax barriers to expeditiously settling estates. I am also open to supporting an Estate Tax Amnesty helpline by the Bureau of Internal Revenue, to provide filing support for indigent families and smaller estates,” he said.
Salceda also recommended that the Bureau of Internal Revenue and the interior department encourage local governments to enact local transfer tax and real property tax amnesties to facilitate transfers through the estate tax amnesty.
He also instructed the BIR during the hearing to simplify the estate tax amnesty filing procedure.
Salceda said unsettled estates can leave land and other assets idle and unused for years, if not decades.
