Dulay: Tax amnesty extension appropriate in these trying times

August 19, 2021 Jun I. Legaspi 544 views

THE two-year extension of availment of the Estate Tax Amnesty is deemed appropriate in these trying times. It will give the lawful heirs and beneficiaries, especially those who have been financially struggling during this pandemic, more time to settle their Estate Tax obligations without penalties.”

Thus said Bureau of Internal Revenue (BIR) Commissioner Cesar R. Dulay as he encouraged “financially capable taxpayers, particularly those with inherited properties that cannot be transferred under his/her name because of unpaid taxes, to avail now of the Estate Tax Amnesty for this will not only personally benefit them but more importantly it will result to much-needed more tax collections for the government.”

President Rodrigo Roa Duterte signed on June 30, 2021 Republic Act No. 11569 extending the June 14, 2021, deadline for applications to avail the Estate Tax Amnesty by two (2) years or until June 14, 2023.

RA 11569 amends Section 6 of RA 11213 or Tax Amnesty Act that gives a one-time opportunity for taxpayers to settle unpaid estate taxes, without any penalties.

The amnesty shall cover the estate of the decedent/s who died on or before December 31, 2017, with or without assessments duly issued, therefore, whose Estate Tax/es have remained unpaid or have accrued as of December 31, 2017.

The Estate Tax Amnesty shall not extend to the delinquent Estate Tax liabilities which have become final and executory and those covered by Tax Amnesty on Delinquencies. Also not covered are properties involved in cases pending in appropriate courts as specified in Revenue Regulations No. 6-2019.

An Estate Tax Amnesty rate of six percent shall be imposed on each decedent’s total net taxable estate at the time of death without penalties at every stage of transfer of property. Provided, that the minimum Estate Amnesty Tax for the transfer of the estate of each decedent shall be Five Thousand Pesos (P5,000.00).

Estates covered by Estate Tax Amnesty, which have fully complied with all the conditions set forth in the Bureau’s regulations, including the payment of Estate Tax Amnesty, shall be immune from the payment of all Estate Taxes as well as any increments and additions thereto, arising from the failure to pay any and all Estate Taxes for taxable year 2017 and prior years, and from all appurtenant civil, criminal and administrative cases, and penalties under the 1997 Tax Code, as amended. The availment of the Estate Tax Amnesty and the issuance of the corresponding Acceptance Payment Form do not imply any admission of criminal, civil or administrative liability on the part of the availing estate.

In a related development, on August 3, 2021, the BIR issued Revenue Regulations (RR) 17-2021 to inform the availing taxpayers that the electronic Certificate Authorizing Registration (eCAR) shall only be issued upon submission of the proof of estate settlement [e.g., Extra-Judicial Settlement of Estate (EJS), Copy of Court Order].

In the event that these documents include properties not indicated in the Estate Tax Amnesty Return (ETAR) filed, the particular properties shall likewise be excluded from the eCAR, unless additional estate tax amnesty payment shall be made if the

submission is within the amnesty period. Otherwise, the additional estate tax to be paid for the additional properties indicated in the EJS or Court Order shall be subject to applicable estate tax rate including interests and penalties.