SEVENTEENTH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES Third Regular Session JOINT EXPLANATION OF THE CONFERENCE COMMITTEE ae 12 P40 DISAGREEING PROVISIONS OF HOUSE BILL NOS. 4814 AN! AND SENATE BILL NO. 2059 Reece ae RP The Bicameral Conference Committee on the disagreeing provisions of House Bill Nos. 4814 and 8554, and Senate Bill No. 2059, after having met and fully discussed the said provisions, hereby report to their respective Houses the following, that: 1. The Conference Committee agreed to adopt the comparative matrix of H. Nos. 4814 and 8564 and S. No. 2059 as the working draft; 2. On Section 1 on Short Title of both the House versions and the Senate version, Section 1 of HBN 8554 was adopted as Section 1 of the reconciled version with modifications; » . On Section 2 on Deciaration of Policy of both the House versions and the Senate version, the Senate version was adopted as Section 2 of the reconciled version with modifications, particularly deleting paragraph “e”, which pertains to addressing cross-border tax evasion thru an exchange of information system, He On Section 3 on Definition of Terms of H. No. 8554 and S. No. 2059, the Senate version was adopted as Section 3 of the reconciled version with modifications; 5. On Section 4 on Coverage (Estate Tax Amnesty) of the House versions and the Senate version, the Senate version was adopted as Section 4 of the reconciled version: 6. On Section 5 of H. No. 8554 and Section 6 of S. No. 2059 on Entitlement Under Estate Tax Amnesty, the House version was adopted as Section 5 of the reconciled version with modifications, which shall now read, to wit “SEC. 5. Entitlement under Estate Tax Amnesty. - Except for instances covered by Section 9 hereof, the estate may enjoy the immunities and privileges of the Estate Tax Amnesty and pay an estate amnesty tax at the rate of six percent (6%) based on the decedent's total net estate at the time of death: Provided, That if an estate tax retum was previously filed with the Bureau of Internal Revenue, the estate tax rate of six percent (6%) shall be based on net undeclared estate. The provisions of the National Internal Revenue Code of 1997, as amended, on valuation, manner of computation, and other related matters shall apply suppletorily, atthe time of the entitlement. Provided, further, That if the allowable deductions applicable at the time of death of the decedent exceed the value of the gross estate, the heirs, executors, or administrators may avail of the benefits of tax amnesty under Title I! of this Act, and pay the minimum estate amnesty tax of Five Thousand Pesos (P5,000).” Section 6 on Availment of the Estate Tax Amnesty of H. No. 8554 was consolidated with Section 5 on Availment of the Amnesty of H. No. 4814 and Section 5 on Availment of the Estate Tax Amnesty and Section 7 on When and Where to File and Pay of S, No. 2059 and was adopted as Section 6 of the reconciled version with modifications, including on consolidation of estates; issuance of acceptance payment form; and non-admission of liability on the part of the taxpayer based solely on availment of amnesty, ae 2 . Section 7 on Presumption of Correctness of the Estate Tax Amnesty of H. No. 8554 has no counterpart Senate version and was adopted as Section 7 of the reconciled version with modifications including the provision of deadline (within 18 calendar days) for the BIR to issue the Certificate of Availment to the availing taxpayer, which deems the application as approved if not acted upon by the Bureau within the prescribed period; 9. On Section 8 on immunities and Privileges of the House version and the Senate version, the Senate version was adopted as Section 8 of the reconciled version with modifications, which include the declaration of the amnesty granted as final and irrevocable upon full compliance of the conditions as required in the Act, 40.On Section 9 of H. No. 8554, Section 7 of H. No. 4814 and Section 8 of S. No. 2059 on Exceptions, the Senate version was adopted as Section 9 of the reconciled version with modifications, which shall read, to wit: “Sec, 9, Exceptions. - The Estate Tax Amnesty under Title I! of this Act shail not extend to estate tax cases which shail have become final and executory and to properties involved in cases pending in appropriate courts: (a) Falling under the jurisdiction of the Presidential Commission on Good Goverment; (®) Involving unexplained or unlawfully acquired wealth under Republic Act No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act, and Republic Act No. 7080 or An Act Defining and Penalizing the Crime of Plunder; (¢) Involving violations of Republic Act No. 9160, otherwise known as the Anti-Money Laundering Act, as amended; (d) Involving tax evasion and other criminal offenses under Chapter Il of Title X of the National Internal Revenue Code of 1997, as amended; and (@) Involving felonies of frauds, illegal exactions and transactions, and matversation of public funds and property under Chapters Il! and !V of Title Vil of the Revised Penal Code.” 211. On Section 10 on Coverage (General Tax Amnesty) of both H. No. 8554 and S. No. 2059, the Senate version was adopted as Section 10 of the reconciled version with modifications, which shall now read as follows; “Sec. 10. Coverage. - There is hereby authorized and granted a tax amnesty, hereinafter called General Tax Amnesty, which shall cover all national internal revenue taxes such as, but not limited to, income tax, withholding tax, capital gains tax, donor's tax, value- added tax, other percentage taxes, excise tax and documentary stamp tax collected by the Bureau of Internal Revenue, including value-added tax and excise taxes collected by the Bureau of Customs for taxable year 2017 and prior years, with or without assessments duly issued therefore, that have remained unpaid: Provided, however, That the General Tax Amnesty hereby authorized and granted shall not cover persons or cases enumerated under Section 16 and Title IV hereof.” 12. Section 11 on Entitlement under General Tax Amnesty of H. No. 8554 was consolidated with Section 13 on Entitlement to Tax Amnesty of S. No. 2059, and was adopted as Section 11 of the reconciled version with modifications. These include the provision of option for taxpayers to avail based either on total assets or total networth; re-adjustment of the amnesty rate for individual, trusts and estates; and setting of minimum amnesty tax for negative networth declarations, 13. Section 11 on Avaifment of the General Tax Amnesty and Section 14 on When and Where to File and Pay of S. No. 2059 was consolidated with Section 12 on Availment of the General Tax Amnesty; When and Where to File and Pay of H. No. 8554 and was designated as Section 12 of the reconciled version with modifications including the grant of discounts on total tax amnesty due based on the date of payment, 14, On Section 13 on What to Declare in the Statement of Total Assets of H. No. 8554 and Section 12 on Contents of the SALN of S. No. 2059, the Senate version was adopted as Section 13 of the reconciled version with modifications, which mainly considered the amendment granting option for taxpayers to avail based either on total assets or networth; 15. On Section 14 on Presumption of Correctness of the Statement of Total Assets of H. No. 8554 and Section 16 on Presumption of Correctness of the SALN of S. No. 2059, the Senate version was adopted as Section 14 of the reconciled version with modifications including on its title, which shall now ead: “Sec. 14. Presumption of Correctness of the Statement of Total Assets, and Statement of Assets, Liabilities, and Networth. = The Statement of Total Assets or the Statement of Assets, Liabilities, and Networth, filed at the option of the taxpayer, shall be