“Taxes are the lifeblood of the government and so should be collected without unnecessary hindrance. On the other hand, such collection should be made in accordance with law as any arbitrariness will negate the very reason for government itself. It is therefore necessary to reconcile the apparently conflicting interests of the authorities and the taxpayers so that the real purpose of taxation, which is the promotion of the common good, may be achieved.” – Commissioner of Internal Revenue v. Algue, Inc.

On February 14, 2019, President Rodrigo Duterte signed into law the RA 11213 also known as the “Tax Amnesty Act”. It covers provisions about Estate Tax Amnesty and Tax Amnesty on Delinquencies for Taxable Years 2017 and prior years. Unfortunately, he vetoed Title III, or the General Tax Amnesty (GTA) due to lack of safeguards against tax evasion.  General Tax Amnesty would have been a big help to every taxpayer as it will give them a chance to enter the tax system on a clean slate, and in return, it will ultimately raise revenues for the government.  

The COVID-19 outbreak has gravely torn down our economy. Business owners have taken a huge toll on the effects. As people are expected to stay from their homes, business establishments were left empty with little to no income generated.  They have no choice but to lay off their employees to make ends meet. And to top it all, they are obligated to pay their taxes. Worse, they are also being hunted by their tax liabilities from previous years.

The fund of our National Government has reached its peak, and everyone is suffering from this Pandemic, may it be financially, and even emotionally. The desperate efforts of the government to recover the funds has led to failure, they forgot the welfare of the main resource of national revenue – the taxpayers. Our national government may have generated revenue for now with their aggressive collection. But as more businesses kept on closing down, they will have fewer collections in the long run.

So, what’s the solution?

A General Tax Amnesty will be the best way to overcome these financial challenges we are facing right now. It will be beneficial for both the Taxpayers and the Government. As to taxpayers, they will be given a one-time opportunity to start a clean slate by paying a defined amount that will waive all of their tax liabilities and not worry about possible criminal or civil charges against them.

Let's move for the cancellation of:

1. BIR open cases
2. Deficiency assessments
3. Tax evasion cases (pending)
4. Real property-non/under-declaration
5. Expense-overstatement
6. Unpaid tax dues for taxable 2020 and prior years.

On the part of the government, it will widen the tax base and ultimately raise additional revenues for the government that can be used for different public needs, especially during this health crisis.

Congress has already taken a step in passing a revision of the vetoed General Tax Amnesty last 2019. It remains pending with the Committee on Ways and Means as of this date. We, the taxpayers, should do our part as well. Let's join together for our voices to be heard by our lawmakers for the ratification of General Tax Amnesty.