Sep 24, 2020

Take advantage of comprehensive tax reform, financial whiz says

Raymond Abrea of the CSR of the Philippines during a recent tax seminar roadshow

A financial expert advised businessmen in Palawan not to be critical about the comprehensive tax reform and to instead take advantage of the estate tax and tax amnesties it is offering on delinquent accounts.

Raymond Abrea of the non-profit Center for Strategic Reform (CSR) of the Philippines during a recent tax seminar roadshow in the city and province said that the Comprehensive Tax Reform Program (CTRP) which was initialed by the Tax Reform for Acceleration and Inclusion (TRAIN) law can help families that have estate tax issues and delinquent businesses.

“Dapat naiintindihan natin kung tayo ba ay qualified at ano ang mga requirements para ma-avail natin ang ganitong mga amnestiya. Ang buwis ay gastusin ng lahat ng mga negosyante at taxpayer kaya kailangan alam natin ang mga ito kasi malaki ang penalties kung hindi tayo aware,” Abrea said.

He explained that the estate tax amnesty refers to inherited properties that have not been transferred yet to the names of the heirs.

If there is no amnesty, Abrea said that the heirs will have to pay a 25 percent surcharge at 20 percent per year tax rate that is burdensome.

Under the amnesty being offered by the comprehensive tax reform, this will be waived and the 20 percent tax rate per year will go down to six percent.

The evaluation, he explained further, will be based on the period when the original owner died.

The tax amnesty on delinquent accounts, on the other hand, can be availed by businessmen who have long-standing issues with the Bureau of Internal Revenue (BIR).

Abrea said that with the comprehensive tax reform, the BIR will no longer impose interests and penalties on their pending cases.

Instead of the 100 percent interest or penalties, they will just instead pay 40 percent, he said.

Abrea pointed out that it is important that taxpayers and businessmen are aware of this to save funds in case they are qualified to the amnesty program.
“Dapat alam natin kung ano ang mga buwis na dapat mong bayaran o ano ang mga puwedeng hindi bayaran at ano iyong mga tax savings na puwede mo ma-avail para makatipid. Kasi kung naiintindihan ng lahat ang batas sa pagbubuwis, hindi na kailangan pang maglagay sa mga fixers kasi another gastos na naman yan. Kung sasabihin ninyong corrupt ang mga BIR examiners, hindi naman sila magkaka-pera kung hindi tayo magbibigay sa kanila dahil lang takot tayo sa proseso. Bentahe kung alam natin ang batas,” he pointed out.

The CSR will continue to make rounds of provinces in the country to educate the public on the comprehensive tax program, he said.

In August, it will return to Palawan to conduct a tax seminar for businesses in El Nido.

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