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Republic of the Philippine:

HOUSE OF REPRESENTA’ 16 AUG 2016
Quezon City
SEVENTEENTH CONGRE:
First Regular Session | peo-e=garion cry

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Introduced by HONORABLE ROMERO “MIRO” S. QUIMBO

EXPLANATORY NOTE

As it stands, only a small percentage of the tax collection of the
Bureau of Internal Revenue pertain to estate taxes. In 2013, only 28,634 are
registered estate taxpayers.!Moreover, data from the Philippine Statistics
Authority show that there is a total of 531,280 deaths in the same
year.After deducting the registered estate taxpayers from the total deaths in
2013, data show that ninety-four percent (94%) did not file the required
estate tax return. Even if the estate is exempt from taxes, the filing of a
return is still required under the National Internal Revenue Code (NIRC).

Several concerns have also been raised regarding the filing of the
estate tax return. For one, the failure to file the return within six (6) months
from the death of the decedent, extendible by the Commissioner for a period
of thirty (30) days subjects the taxpayer to penalties and interests under the
NIRC. In addition, compliance with the filing and payment of taxes is
rendered more difficult by the arduous procedure that the taxpayer has to
go through.

This results to a situation wherein the heirs of the deceased resort to
non-compliance of the law’s requirements, hindering them from using these
properties. Thus, the decedent’s properties become idle and unproductive,
providing a disincentive to the heirs, as well as to the economy, given the
potential income that can be derived from these stagnant properties.

This issue becomes more incongruous considering that in 2013, only
2.69% of the total collection of the BIR comprise of collection of taxes on

“Aguilar, Anthony Alden Sy. “Mapping the Future.” Management Association of the Philippines website, August

10, 2015. <http://map.org.oh/profile/membership-nomination-guidelines-membership-nomination-forms/2-

latest/484-four-bills-and-a-tax-amending-the-estate-tax-system, accessed August 16, 2016>

*«Deaths in the Philippines, 2013.” Philippine Statistics Authority website, April 6, 2016.
a.g0v.ph/content/deaths-philippines-2013, accessed August 16, 2016>



property, including estate taxes.3 This creates a double whammy: the
government is not able to derive revenue from these properties; and the
heirs are not able to productively use said properties.

To unlock this impasse, this bill proposes the grant of tax amnesty for
all unpaid estate taxes at the time of this bill’s passage, as well as those
which shall be due three (3) years from the time of its enactment. This bill
proposes a revised schedule of tax due for each estate to encourage the
declaration of tax returns and payment for non-compliant estates.

In view of the foregoing, the immediate passage of this bill is earnestly
sought.

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ROMERO “tWIRO” S. QUIMBO
Representative
Second District Marikina City

* Aguilar, id.


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. __ 3019

Introduced by HONORABLE ROMERO "MIRO" S. QUIMBO

AN ACT GRANTING AMNESTY IN ESTATE TAX

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

Section 1. Title. ~ This Act shall be known as the “Estate Tax Amnesty Law.”

Section 2. Coverage and Duration of Tax Amnesty. - The tax amnesty granted
herein shall cover all unpaid estate taxes as of the time this Act shall have taken
effect, and those that shall be due within three (3) years henceforth.

Section 3. Grant of Tax Amnesty. - Within the period of the estate tax amnesty as
provided in the preceding section, estate tax shall be levied, assessed, collected and
paid upon the transfer of the net estate, as determined in accordance with Section
85 and 86 of Republic Act No. 8424, as amended, of every decedent, whether
resident or non-resident of the Philippines, based on the value of such net estate,
as computed in accordance with the following schedule:

“If the net estate is:

The Tax
| Shall
= But Not Over | __Be Plus _| Of the Excess Over
[ 3,000,000.00 0 _
3,000,000.00 | _6,000,000.00 | _20,000 5% | 3,000,000.00
6,000,000.00 | 12,000,000.00 | 200,000 8% 6,000,000.00
12,000,000.00 _ 650,000 11% 12,000,000.00,

Section 4. Applicability of Republic Act No. 9480 - Section 6, on the grant of
immunities and privileges, Section 8, on exceptions, Section 9, on divulgence of tax


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amnesty return, and Section 10, on penalties of Republic Act No. 9480, shall apply
to the herein grant of estate tax amnesty, in so far, as they are relevant.

Section 5. Implementing Rules and Regulations. - The Secretary of Finance shall
promulgate the necessary rules and regulations for the effective implementation of
the provisions of this Act.

Section 6. Repealing Clause. - All laws, orders, issuances, circulars, rules and
regulations or parts thereof, which are inconsistent with the provisions of this Act
are hereby repealed or modified accordingly.

Section 7. Separability Clause. - If any provision of this Act is declared
unconstitutional or invalid, other parts or provisions hereof not affected thereby

shall continue to be in full force and effect.

Section 8. Effectivity. - This Act shall take effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation.

Approved,