Tax Amnesty Act

Case Overview and Summary

Summary of Republic Act No. 11213 (Tax Amnesty Act):

Declaration of Policy (Section 2):
- Protect and enhance revenue administration and collection.
- Make the tax system more equitable by simplifying tax compliance requirements.
- Provide a one-time opportunity to settle estate tax obligations through an estate tax amnesty program.
- Broaden the tax base by offering a general tax amnesty for unpaid internal revenue taxes.
- Enhance revenue collection by providing a tax amnesty on delinquencies.
- Provide a more equitable tax system by adopting a comprehensive tax reform program.

Definitions (Section 3):
- Basic tax assessed: Latest tax assessment issued by the Bureau of Internal Revenue (BIR), excluding interest, penalties, and surcharges.
- Net estate: Gross estate less allowable deductions under the National Internal Revenue Code of 1997.
- Net undeclared estate: Difference between total net estate at death and net estate previously declared with the BIR.
- Statement of Assets, Liabilities, and Networth: Declaration of assets, liabilities, and networth as of December 31, 2017.

Estate Tax Amnesty (Title II):
- Coverage (Section 4): Estates of decedents who died on or before December 31, 2017, with unpaid estate taxes.
- Entitlement (Section 5): Pay 6% amnesty tax based on decedent's total net estate at death or net undeclared estate.
- Availment (Section 6): File sworn Estate Tax Amnesty Return and pay amnesty tax within 2 years from effectivity of Implementing Rules and Regulations (IRR).
- Presumption of Correctness (Section 7): Estate Tax Amnesty Returns are conclusively presumed true, correct, and final upon filing and payment.
- Immunities and Privileges (Section 8): Immunity from payment of estate taxes, increments, additions, and appurtenant civil, criminal, and administrative cases and penalties.
- Exceptions (Section 9): Cases under Presidential Commission on Good Government, involving unlawfully acquired wealth, money laundering, tax evasion, and other felonies.

General Tax Amnesty (Title III):
- Coverage (Section 10): All unpaid national internal revenue taxes for taxable year 2017 and prior years.
- Entitlement (Section 11): Pay amnesty tax at 2% of total assets or based on total networth as of December 31, 2017, with minimum payments for different types of taxpayers.
- Availment (Section 12): File sworn General Tax Amnesty Return, Statement of Total Assets or Statement of Assets, Liabilities, and Networth, and pay amnesty tax within 1 year from effectivity of IRR.
- Contents of Statements (Section 13): Details on declaration of assets, liabilities, and networth.
- Presumption of Correctness (Section 14): Statements are conclusively presumed true, correct, and final upon filing and payment.
- Immunities and Privileges (Section 15): Immunity from payment of taxes, additions, and appurtenant civil, criminal, and administrative cases and penalties; confidentiality of information.
- Exceptions (Section 16): Withholding tax agents who failed to remit, cases involving unlawfully acquired wealth, money laundering, tax evasion, and other felonies, final and executory tax cases and delinquencies.

Tax Amnesty on Delinquencies (Title IV):
- Coverage (Section 17): All unpaid national internal revenue taxes for taxable year 2017 and prior years, including final and executory delinquencies and assessments, pending criminal cases for tax evasion, and cases with final and executory judgments.
- Entitlement (Section 18): Pay amnesty tax rates ranging from 40% to 100% of basic tax assessed, depending on the type of delinquency or case.
- Availment (Section 19): File sworn Tax Amnesty on Delinquencies Return and Certification of Delinquency, and pay amnesty tax within 1 year from effectivity of IRR.
- Immunities and Privileges (Section 20): Delinquency considered settled, criminal cases terminated, immunity from suits or actions, and issuance of Authority to Cancel Assessment.

Confidentiality and Non-Use of Information (Section 21):
- Information in Tax Amnesty Returns, Statements of Total Assets, and Statements of Assets, Liabilities, and Networth shall be confidential and not used in investigations or prosecutions.

Information Management System (Section 22):
- Department of Finance, in coordination with BIR and other agencies, shall institute an Information Management Program for effective use of information from Tax Amnesty Returns and Statements.

Disposition of Proceeds (Section 23):
- ₱500 million shall accrue to the Department of Finance for establishing a tax database.
- Excess shall be allocated for social mitigating measures and Build Build Build infrastructure projects.

Offenses and Penalties (Sections 24-25):
- Unlawful divulgence of information by BIR officers or employees is punishable by fines and imprisonment.
- Unlawful divulgence of Tax Amnesty Returns and appurtenant documents is punishable by fines, imprisonment, and perpetual disqualification from public office.

Congressional Oversight Committee and Final Provisions (Sections 26-30):
- The Commissioner of Internal Revenue shall submit a detailed report on the implementation of the Act to the Congressional Oversight Committee.
- The Secretary of Finance shall promulgate the Implementing Rules and Regulations within 90 days from effectivity.
- Separability clause, repealing clause, and effectivity date are provided.