Tax amnesty, alcohol reserve

BIR tax

The planned general tax amnesty approached the offer, as the House of Representatives on Tuesday approved the third and final reading measures a day after the Senate had done the same, while the proposal to raise the tax on alcohol products was sacked by the committee's approval.

Bill 8554 or the draft tax amnesty law of 2018 include property tax and general tax liabilities for the taxable period up to 2017.

House Ways and Means Chairman Estrellita B. Suansing Nueva Ecija 1Holy the district announced during its sponsorship speech on November 14 that the measure expects to increase sales by 114.8 billion. However, the program is designed to bring more tax offenders into the fold, thereby extending the country's tax base.

The bill will grant an amnesty for a property tax of six percent on the basis of the estate of the estate, provided that the legal heirs will apply within two years of the effective implementation rules and regulations. The general provision on tax amnesty places a two-thirds rate on the basis of the applicant's total assets as of December 2017. Stakeholders will have a year from the beginning of the program to be used.

Immunity and privileges under the amnesty package will not apply if it is shown that the declared value of the property and the total assets are understated by at least 30%.

The Bill also grants amnesty for offenses at various stages of prosecution. Mrs. Suansing, in the same speech, said that this move is aimed at "blowing up the houses of the BIR, the Regional Courts of Justice, the Court of Justice and the Supreme Court."

The measure provides that tax assessments that have become final and enforceable; tax cases subject to a final and enforceable judicial decision; and unresolved cases of tax evasion will have amnesty rates of 40%, 50% and 60%.

Also on Tuesday, the House Ways and Means Committee approved a version of its tax reform that will raise excise tax on alcohol products, which the Finance Ministry (DO) said would contribute only 7.8 billion profits.

"Our initial estimate of income from changes in the Chamber of Deputies' accounts for alcohol, total in 2019, from the original P32 billion, we estimate that the replacement account that will appear will generate only P7.8 billion, which is 24% of the original, Finance Deputy Finance Minister Karl Kendrick T. Chu said to committee legislators.

He also noted that by 2022 the reform would bring collections of $ 60 billion, instead of the planned 173 billion of the original proposal submitted to Congress by Congress.

The uncompensated substitution proposal suggested that from the distillation of spirits with effect from January 2019, the specific tax rate P30 per one liter of proof would be levied, except for 22% ad valorem of net retail tax (NDA) for one proof, except for excise duty and value added tax . The special tax rate will increase by 5 years per year until 2022 and by 7% each year from 2023 each year.

This is comparable to the existing tax on distilled spirits consisting of a 20% ad valorem tax on the NRP on a single proof and a special tax on the proof of liter P23.40 in 2019.

In addition, it will have sparkling wine based on NDP per liter that is not currently stored, 15% ad valorem and the specific P650 tax.

For silent wines and carbonated wines containing 14% by volume of alcohol, the excise duty will currently be P40 from P37.90; while those that contain more than 14%, the rate will increase to P80 from P75.90.

Excise and quiet wine consumption tax will increase by 7% from 2020.

For fermented liqueurs, excise duty will increase to P28 from P25.42 in 2019, P32 in 2020, P34 in 2021, and P36 in 2022. Rates will increase annually by seven percent from 2023. – C. A. Tadalan

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