EDITORIAL
FOR MAY 28, 2023
TEASER ON THE FRONT PAGE
This is a glimpse of this week’s Editorial entitled: Congress must pass
estate tax amnesty extension. “Before the window closes on June
14, 2023, people with unsettled estate taxes must take advantage
of this opportunity. Since the proposed extension is supported by
data showing that close to a million families will benefit, Congress
must now pass the estate tax amnesty extension.” For the full text
of the editorial, please turn to page __.
EDITORIAL
Congress must pass estate tax amnesty extension
Congress enacted Republic Act No. 11213, or The Tax
Amnesty Act, on February 14, 2019. The legislative department
intended the law to cover all unpaid internal revenue taxes
imposed by the national government for the taxable year 2017
and prior years with respect to estate tax, other internal revenue
taxes, and tax delinquencies.
Former President Rodrigo Duterte vetoed several items in
the Tax Amnesty Act, thus, leaving the said law with the
remaining two (2) separate tax amnesty programs: Estate Tax
Amnesty and Tax Amnesty on Delinquencies.
The pandemic prompted Congress to grant an extension
until June 14, 2023. Barely 17 days from today, the estate tax
amnesty program will end. Without another extension, several
unsettled estates will again be subjected to the applicable estate
tax rates in 2017 and prior years and penalties and surcharges.
The data culled by the House Ways and Means Committee
identified approximately 920,000 Filipino families that could
benefit from another extension of the estate tax amnesty.
Estates with unpaid estate taxes may indicate that the
properties in the said estate are undeveloped due to the neglect
of the heirs. The grant of the tax amnesty provides an incentive
for the heirs to adjudicate the estate and allow the new owners to
put the properties to productive use. Aside from the estate tax
payments expected to be collected, the income from using the
settled estates will provide additional tax revenues to the
government, such as income and business taxes.
Before the window closes on June 14, 2023, people with
unsettled estate taxes must take advantage of this opportunity.
Since the proposed extension is supported by data showing that
close to a million families will benefit, Congress must now pass
the estate tax amnesty extension.