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Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

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SEVENTEENTH CONGRESS,
First Regular Session

16

48
HOUSE BILL NO.”

Introduced by Honorable Michael L. Romero

EXPLANATORY NOTE

One of the top priorities of President Rodrigo Duterte's administration is to
introduce reforms in the tax system. In his first State of the Nation Address
(SONA), the president emphasized that his "administration will pursue tax
reforms towards a simpler, more equitable and more efficient tax system
that can foster investment and job creation."

The proposed comprehensive tax reform packages are expected to result
in a decrease in revenue collections in the short term, which may hamper
the implementation of other reform agenda of the government. The
reform should also bring the desired end of strengthening tax
enforcement and ultimately collect more tox revenues to fund the
operation of the government and spur economic growth.

To complement these initiatives, the grant of estate tax amnesty under
certain terms and conditions, which shall cover all estate taxes due as of
31 December 2016 and prior years is a sound policy to take. The estate tax
amnesty will certainly yield to an immediate increase in tax collections
and at the same time provide an opportunity to broaden our taxpayer
base, as well as giving erring persons/entities a chance to reform and
become more responsible taxpayers.

The present administration has proven its determination in the
enforcement of our laws. It serves as a strong warning to tax evaders that

7 ReCeiveD A



change in tax administration and enforcement had started and that the
grant of the tax amnesty is the best avenue for reform.

Thus, approval ee is earnestly requested.

W

MICH. L. ROMERO Ph.D


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL no. 4818

Introduced by Honorable Michael L. Romero

AN ACT

TO GRANT AMNESTY ON UNPAID ESTATE TAXES FOR
TAXABLE YEAR 2016 AND PRIOR YEARS

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Coverage. — There is hereby authorized and granted an
estate tax amnesty which shall cover all estate taxes due but remained
unpaid as of December 31, 2016: Provided, however, That the amnesty
hereby authorized and granted shall not cover persons or cases
enumerated under Section 6 hereof.

SECTION 2. Availment of the Amnesty. — Any person, natural or juridical,
who wishes to avail himself of the estate tax amnesty authorized and
granted under this Act shall file with the Bureau of Internal Revenue (BIR) a
notice and Estate Tax Amnesty Retum in such form as may be prescribed


in the implementing rules and regulations (IRR) of this Act, and pay the
applicable amnesty tax within the period provided under Section 5

hereof.

SECTION 3. Grant of Estate Tax Amnesty. — Any taxpayer, not otherwise
disqualified, who will avail of the privilege under this Act shall be required
to pay the basic estate tax due as of December 31, 2016, excluding all
penalties, fines, surcharges and all other additions thereto.

SECTION 4. Immunities and Privileges. — Those who will avail themselves of
the estate tax amnesty provided under this Act and have fully complied
with all its conditions shall be relieved from any administrative, civil or
criminal liabilities arising or might arise from or connected or incidental to
the non-payment of the estate taxes that were due as of December 31,
2016.

SECTION 5. When and Where to File and Pay. — The filing of the notice and
Estate Tax Amnesty Return and the payment of the amnesty tax for those
availing themselves of the estate tax amnesty shall be made within six
months counted from the effectivity of the IRR. It shall be filed at the office
of the Revenue District Officer, which has jurisdiction over the legal
residence or principal place of business of the filer. The Revenue District
Officer shall issue an acceptance of payment form authorizing an
authorized agent bank, or in the absence thereof, the collection agent or

municipal treasurer concemed, to accept the amnesty tax payment.

SECTION 6. Exceptions. — The tax amnesty provided in Section 3 hereof
shall not extend to the following persons or cases existing as of the

effectivity of this Act:

1. Those with pending cases falling under the jurisdiction of the


Presidential Commission on Good Government;

2. Those with pending cases involving unexplained or unlawfully
acquired wealth or under the Anti-Graft and Corrupt Practices Act:

3. Those with pending cases filed in court involving violation of the
Anti-Money Laundering Law;

4. Those with pending criminal cases for tax evasion and other
criminal offenses under Chapter II of Title X of the National Internal
Revenue Code of 1997, as amended, and the felonies of frauds,
illegal exactions and transactions, and malversation of public funds
and property under Chapters Ill and IV of Title Vil of the Revised
Penal Code; and

5. Tax cases subject of final and executory judgment by the courts.

SECTION 7. Unlawful Divulgence of Tax Amnesty Return and Statement of
Assets, Liabilities and Networth. — Except as otherwise provided herein
and in Section 14 hereof, it shall be unlawful for any person having
knowledge of the Estate Tax Amnesty Return filed pursuant hereto, to
disclose any information relative to such Return, and any violation hereof
shall subject the offender to the penalties under Section 8 of this Act:
Provided, however, That the Commissioner of Internal Revenue may
disclose the content of the Estate Tax Amnesty Return upon the request of
Congress pursuant to and in accordance with Section 20(A) or Section
290 of the National internal Revenue Code of 1997, as amended.

SECTION 8. Penalties. — Any person who makes an unlawful divulgence
of the Tax Amnesty Return shall be penalized by a fine of not less than Fifty
thousand pesos (P50,000.00) and imprisonment of not less than six years


but not more than ten (10) years.

If the offender is an officer or employee of the BIR or any government
entity, he/ she shall likewise suffer an additional penalty of perpetual
disqualification to hold public office to vote and to participate in any
public election.

SECTION 9. Moratorium on the Grant of Estate Tax Amnesty. — In order to
encourage and improve tax compliance by taxpayers, it is hereby
declared the policy of this Congress that the grant of estate tax amnesty,
in whatever manner and form, shall not henceforth be allowed: Provided,
That this moratorium shall ikewise apply to any administrative estate tax
amnesty by the BIR.

SECTION 10. Information Management Program. — For purposes of
enhancing revenue administration, revenue collection and policy
formulation, the Department of Finance, in coordination with the BIR, Land
Registration Authority, Department of Trade and Industry, Securities and
Exchange Commission, Land Transportation Office, and other concemed
agencies shall institute an Information Management Program for the
effective use of information declared or obtainable from the Estate Tax
Amnesty Returns.

SECTION 11. Disposition of Proceeds from the Tax Amnesty. — An amount
equivalent to Four hundred million pesos (P400,000,000.00) of the
collection from the estate tax amnesty herein granted shall accrue to the
Department of Finance and shall be used exclusively for purposes of
instituting a Management Information System as mandated under Section
10 of this Act.

SECTION 12. Implementing Rules and Regulations. — The Secretary of


Finance shall, in coordination with the Commissioner of Internal Revenue,
promulgate and publish the necessary rules and regulations within sixty
(60) days from the effectivity of this Act.

SECTION 13. Separability Clause. - Should any portion or provision of this
Act be declared unconstitutional or invalid, the declaration shall not have

the effect of nullifying other portions or provisions not affected thereby.

SECTION 14. Effectivity. — This Act shall take effect fifteen (15) days atter its
publication in the Official Gazette or in any two newspapers of general

circulation, whichever comes earlier.

Approved,