(Photo courtesy of Senate)
MANILA – The Senate is studying stricter payment deadlines under a proposed estate tax amnesty program to prevent taxpayers from delaying settlements after submitting their applications.
During a Senate Committee on Ways and Means hearing Friday, Senator Panfilo Lacson raised concerns that applicants could file their documents shortly before the amnesty period ends without immediately paying their tax obligations.
Lacson, who chairs the committee, emphasized the need for a clear payment deadline regardless of whether the Bureau of Internal Revenue (BIR) has completed processing the applications.
Department of Finance (DOF) Assistant Secretary Euvimil Nina Asuncion acknowledged the concern, noting that existing procedures specify deadlines for issuing payment forms but do not establish a definite period for settling the corresponding taxes.
The DOF maintained its recommendation to set June 30, 2028, as the final deadline for the proposed amnesty program.
“Our suggestion is to have it on June 30, 2028, at the end of the administration,” Asuncion said.
The department also expressed hope that the measure would be the last estate tax amnesty, encouraging families to settle outstanding obligations instead of relying on future extensions.
However, Tax Management Association of the Philippines president Martin Ignacio Mijares proposed extending the program until December 31, 2029, citing financial constraints and difficulties in obtaining inheritance-related documents.
The group also recommended expanding coverage to estates of individuals who died on or before December 31, 2025.
Meanwhile, Senate President Sherwin Gatchalian warned against repeatedly granting tax amnesties, stressing the need to address the underlying challenges that prevent families from complying with estate tax requirements.
“Amnesty normally is once in a blue moon,” Gatchalian said.
He proposed reviewing the existing 6-percent estate tax rate and simplifying documentary requirements to make compliance easier without requiring repeated amnesty programs.
The Senate committee is expected to consider the proposals as it deliberates on the measure.
