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Senate passes tax amnesty bill
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Posted on Sep 14 2005
Just a year after it passed a tax amnesty bill, the Legislature again approved a similar measure, granting delinquent taxpayers an amnesty for 180 days.
The Senate, in a session yesterday morning, concurred with the House of Representatives and passed House Bill 14-372 or the tax amnesty bill—the third of its kind since the 12th Legislature.
How the bill will fare at the Governor’s Office remains to be seem. Gov. Juan N. Babauta, in signing into law the last tax amnesty bill, had told the Legislature last year that he will not approve any more such bills.
In September 2004, the government enacted Public Law 14-28, which gave tax delinquents a 120-day chance to settle their obligations without paying interests and penalties. During the 12th Legislature, the government passed P.L. 12-51, which gave similar privileges to tax evaders.
H.B. 14-372, introduced by Rep. Clyde Norita and Vice Speaker Timothy P. Villagomez, said that not all delinquent taxpayers took advantage of the previously passed laws. It said a third amnesty program should be established because “it is still the most cost-effective way for the government to collect tax revenue during these difficult times.”
If enacted, the proposal would allow taxpayers to settle their outstanding debts with the government without paying penalties and interests, subject to certain exemptions. It also offers a waiver on the penalty for failure to obtain a business license.
The first amnesty program was implemented on May 7, 2001 and lasted for 106 days. Last year, the amnesty period took effect on Sept. 21 and expired in early January this year.
The Department of Finance said that it met its target collection of $2 million from the 2004 tax amnesty law.
H.B. 14-372 does not cite a projection of revenues if it gets enacted. The bill passed the House and the Senate unanimously. Two senators, however, were absent and excused from yesterday’s session: Tinian senators Joseph Mendiola and Henry San Nicolas. The two reportedly had prior obligations.
The Senate moved its session, which was rescheduled for next week, to yesterday primarily to pass an election-related bill.
