Feature: What is Tax Amnesty Law?
by A. Lumaque
Roxas City (6 September) -- Tax Amnesty Law will give a chance to tax delinquents to clear their record by applying for a compromise settlement of a measly tax amnesty fee with the Bureau of Internal Revenue (BIR) to generate more tax revenue.
The law, Republic Act 9480, which took effect last May 24, 2007 and will be implemented on September 6 after its Implementing Rules and Regulations have been finalized is also aimed to pave the way for inclusion in the BIR database of tax-delinquent individuals and businesses that are not registered with the bureau.
Under the amnesty law, tax delinquents qualified for the amnesty program will no longer face tax evasion charges as long as they pay the BIR the equivalent of 5.0 percent of their net worth as of 2005.
The 5.0 percent will take the place of their outstanding tax liabilities and interest as of 2005.
In the implementing rules and regulations, taxpayers with pending tax evasion cases can apply for amnesty but those whose cases have been decided with finality by the courts will not be allowed to apply.
Applicant for amnesty will be required to submit a statement of assets, liabilities and net worth as of Dec. 31, 2005, which will be the basis for computing the amnesty fee. (PIA) [top]