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Panel sets 3 conditions in tax amnesty 0K
ly Maricel V. Cruz ensure that asset or net worth declamtions
are truthful.
: "The general tax amnesty bill ad-
HE House of Representatives Committee on Ways
dresses the President's concems and also
and Means has passed a consolidated version of complies with intemational standards for
House Bills 191 and 3671, which grants a general financi4 accountabilily. 2020 will be a safeguards to ensure trutlful net worth
year ofreforms to make the flnancial sys-
ax amnesty of one year on all unpaid national intemal tem mote accountable and more transpar-
€venue taxes. ent, so that we can join the commuftity
of nations with credible financial institu-
Albay Rep, Jose Ma. Clemente Sarte based on 3 percent of equity in the tax- tions. We want this year to be the begin-
ialceda, comrnittee chairman, said the payq's Statement of Assets, Liability ning ofthe end lor fraud and lax evasion.
mnesty u.ill cover delinquent income, and Net Worth as ofend 2018. My ofrce and the Comrnittee on Ways
rithholding, capital gains, donor's, val- The consolidated version of the tax and Meaas are determined to play lead-
g-added, percentage, excise and docu- amnesty bills also contains stronger ing roles in getting these urgent reforms
rentaxy stamp taxes that the Bureau of antifraud measures following President done," Salcdda said.
ntemal Revenue and Bureau of Cus- Rodrigo Duterte's request that there be Earliel the President signed the Tax
>ms failed to collecied for taxable year a lifting ofbank secrecy for fiaud cases, Arnnesty Act on Feb. 14,2019, granting
018 and prior years. provision for the automatic exchange of Estaie Tax Amnesty and Tax Amnesty on
The amnesty tax payment shall be information (AEOI); and safeguards to Delinquencies but vetoed Title III, or the
\ fAq"u A,; '
General Tax Amnesty by viitue of Re-
public Act Number 11213. The president
vetoed the General Tax Amnesty Act un-
til the Congress provided for a lifting of
bank secrecy lor fiaud cases, AEOI, and
and asset declarations.
"There is not such thing as free am-
nesty. Accountability is demanded in ex-
change for the generdl tax amnesty.. The
Slate cannot forgire without conditions,
An unconditional amnesty would be free
money to confessed tax evaders, who will
avail ofthe privilege," Salceda said.
"We are granting tle President's re-
quest and then some: we are introducing
provisions to ensure that availing tax-
payers are compliatrt with the Foreign
Account Tax Compliance Act (FATCA).
This is to ensure that our banking system
THURsDAy MARcH tz,zozoii
fil
is not declared a pariah in the intemation-
al community, witli risks to our OFWs
and foreign investors," Salceda said.
FAICA compels foreign findncial in-
stitutions, in this case including thq Phil-
ippine banks, to repprt U.S. financial
set holders to the IRS beginning in 201
These institutions include banks,
ance and real estate companies,
funds; mutual fimds, private equity
and professionbls of the financial sector
Failure to comply with the FATCA
the FFLat risk of a punitiie
ing tax that may far orrtweigh the
of any single foreign account. US
may also refuse to transact with
pine banks who ate non-compliant
FAICA as they too could face steep
and penalties, including the inability
transact intemationally.