The Implementing Rules and Regulations for the Estate Amnesty Tax extension is out!
Noteworthy items include:
The new deadline in June 14, 2023
There is no need for proof of settlement (judicial or extrajudicial) when submitting the Estate Tax Amnesty Return (ETAR)
but no electronic Certificate Authorizing Registration (eCAR) shall also unless such proof is presented
The BIR Form has been revised (2118-EA)
Filing is now where the executor or administrator is registered, or if not yet registered, at the executor or administrator’s residence.
It also seems that after you submit your documents, you may need to wait 5 days before it is endorsed for payment with the authorized agent banks/collection officers or notified of any deficiencies in the application (i.e. babalik po kayo)
It also seems that there is a direction to issue just one eCAR for all properties although we are not there yet. (one property, one eCAR for now)
Lastly, should there be properties not covered by the deed of extra judicial settlement or court order, only those properties covered shall be issued eCAR. I hope this means that they will issue eCAR at least for those indicated.
Are you a Filipino who has been divorced from your foreign spouse?
Did you know that you are still married in the Philippines without a court recognition of the divorce? Did you know that if this is the case, your ex can still inherit from you properties located in the Philippines in case you die ahead of him/her?
Did you know it is simple (but not necessarily easy) to have this foreign divorce recognized?
The Estate Tax Amnesty Act Extension is OFFICIAL. RA 11569 extends the Estate Tax Amnesty until June 14, 2023. It was officially approved today (June 30) and will take effect 15 days from publication in the Official Gazette.
Implementing Rules and Regulations are to be issued but we expect them to be almost just the same as before. For those who didn’t make it, here’s your chance!
For the dozens of you wanting to know what’s what…
As earlier reported, Congress agreed on a version for the extension already and submitted it to the President.
Under the Constitution, the President may 1) veto (cancel) the bill or 2) certain portions of it OR 3) sign it OR 4) not do anything.
For 1, if the entire bill is vetoed, no more amnesty. Although the Dept. of Finance already expressed willingness to extend the program given the target collection in amnesty taxes for availment was not met.
For 2, this is highly unlikely since the only major provision is the extension of the program PLUS the removal of the Deed of Extrajudicial Settlement/Decision as a requirement for payment of the taxes.
As many of you and our clients have experienced, it is hard to get papers going around this pandemic. So if ever, the President may veto that portion and hopefully approve the rest.
For 3 and 4, same effect. If he signs it, it becomes law. If he doesn’t do anything, it passes into law 30 days after submission to him anyway.
So what now?
Since Congress submitted it late May, the bill has 30 days to lapse into law. Meanwhile, it is likely that after June 14, there will be a period of limbo where the bill will go either into passage around end of June and heaven for those wishing to avail…
or the other place for those who did not or could not avail. :’(
We will keep you posted until then, but meanwhile, why don’t you share your thoughts with us?
Here is the Constitutional provision btw for reference:
Section 27, Article VI of the 1987 Constitution which reads as follows:
(1) Every bill passed by the Congress shall, before it becomes a law, be presented to the President. If he approves the same he shall sign it; otherwise, he shall veto it and return the same with his objections to the House where it originated, which shall enter the objections at large in its Journal and proceed to reconsider it. If, after such reconsideration, two-thirds of all the Members of such House shall agree to pass the bill, it shall be sent, together with the objections, to the other House by which it shall likewise be reconsidered, and if approved by two-thirds of all the Members of that House, it shall become a law. In all such cases, the votes of each House shall be determined by yeas or nays, and the names of the Members voting for or against shall be entered in its Journal. The President shall communicate his veto of any bill to the House where it originated within thirty days after the date of receipt thereof, otherwise, it shall become a law as if he had signed it.
(2) The President shall have the power to veto any particular item or items in an appropriation, revenue, or tariff bill, but the veto shall not affect the item or items to which he does not object.
Should it be extended, we will again open our doors for your estate tax amnesty concerns. Thanks and God bless!
The Estate Tax Amnesty program have very distinct features that make it easier than regular estate tax settlement.
First, they won’t question your return as it enjoys the conclusive presumption as true, correct and final. This means that it will not matter whether there are other properties still comprising the estate. Of course the rules still apply but the tax return enjoys a “conclusive presumption of correctness”, to wit,
“Section 7. Presumption of Correctness of the Estate Tax Amnesty Returns. – The Estate Tax Amnesty Returns shall be conclusively presumed as true, correct, and final upon filing thereof, and shall be deemed complete upon full payment of the amount due.”
What is a conclusive presumption?
In the case of MATILDE MENCIANO et al, v. PAZ NERI SAN JOSE. G.R. No. L-1967. May 28, 1951, the syllabus stated,
“The provisions of Rule 123, section 68(c) on conclusive presumption are so clear that they do not require interpretation or construction, but only application.”
We therefore submit that the documents you present are no longer subject to interpretation or construction but only application.
A second feature is that there is no need for an accountant’s certification regarding the estate’s computation if the estate is more than the threshold amount at the time.
A third feature is that there is no need for a certificate of non-holdings from the nearby cities – quite tedious!
You have exactly 60 days from today to settle those properties that are still in the names of your dearly departed ancestors.
Note that there is still some work needed in preparation for this as you may need to prepare a Deed of Extrajudicial Settlement of Estate, not to mention secure certified copies of titles, tax declarations, bank or stock certificates.
The good news is, you save A LOT of money if you avail of it.
The BIR recently came out with Revenue Memorandum Circular No. 46-2021 last 6 April 2021. The deadline has NOT been extended for the filing of Annual Income Tax Returns for taxable year ending Dec. 31, 2020.
BUT, here is some good news: 1. Tentative AITR may be filed. 2. This can be amended on or before May 15, 2021 without fines/penalties. 3. Digital signatures are now allowed 4. Electronic submission of returns allowed in accordance with RMC 49-2020