Previous Story
Tax amnesty bill introduced
|
Posted on Apr 27 2008
A new tax amnesty has been proposed in the House of Representatives.
Rep. Oscar M. Babauta introduced late last week a bill allowing delinquent taxpayers to settle their obligations without penalty and interest during a 120-day amnesty period.
The bill contains similar provisions as the tax amnesty programs implemented in 2001 and in 2005.
Babauta stated in this bill that, for various reasons, not all eligible taxpayers took advantage of the 2005 tax amnesty program. “Many delinquent taxpayers would welcome a second opportunity to pay their taxes under an amnesty law,” he added.
Babauta also said that an amnesty period “is still the most cost effective way for the government to collect tax revenue during this difficult times.”
There is no word on how much taxes could be collected under an amnesty program.
The new tax amnesty would apply to all taxes for all tax years prior to 2004, including taxes on wages, salary or earnings; gross revenue; room, bar, and jackpot taxes; and excise taxes. The law allows delinquent taxpayers to settle unpaid taxes by filing special returns with the government.
But it would not apply to those who are party in a civil or criminal tax action, or anyone who has not fully paid a civil or criminal judgment against them.
The bill would mandate the Department of Finance to make special returns available within 15 days. A taxpayer would not have to pay penalties and interest charges as long as they file the special return properly and pay the tax owed.
The bill would empower the government to collect on penalties and interests that would be forgiven during the tax amnesty period if the taxpayer fails to file a return or pay a tax due for two or more consecutive periods and has failed to timely contest the liability in an administrative or judicial proceeding.
Other instances that may effectively nullify the waiver of penalties and interests include the filing of returns or payment of taxes six months or more late from the due date, if concerned taxpayers fail to timely contest the liabilities.
The bill also provides that waived penalties and interests may be reassessed on those who will pay their taxes in installments if they default on its payment.
