Happy Independence Day!
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?
We wait.
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:
Section 27.
(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!
69 replies on “Meanwhile, the estate tax amnesty program is in limbo…though hopefully not for long!”
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