Another Cabinet official has come out in favor of a tax amnesty being implemented next year.
Finance Secretary Carlos Dominguez 3rd echoed Budget Secretary Benjamin Diokno’s statement, telling reporters “we agree with him, we haven’t discussed it yet. [But] we think that the tax amnesty offer should be offered most likely next year.”
It was still too early to determine how much the government would gain, he added.
“We haven’t really determined [that]yet but certainly I think we will start with the estate taxes,” Dominguez said.
Diokno earlier this month said the government should consider implementing a tax amnesty as the government had already established its capability to go after large tax evaders.
The Budget chief noted settlements made by flag carrier Philippine Airlines (PAL) and tobacco firm Mighty Corp., and Sunvar Realty Development Corp’s decision to give up the disputed Mile Long property in Makati.
Mighty, the country’s second-largest cigarette manufacturer, offered in July to pay P25 billion to settle tax evasion cases. The offer was accepted and the firm was subsequently sold to Japan Tobacco, Inc.
PAL, meanwhile, settled a P6-billion debt owed to the Civil Aviation Authority of the Philippines and the Manila International Airport Authority. President Rodrigo Duterte had threatened to close the Ninoy Aquino International Airport’s Terminal 2, which is being used exclusively by the carrier, if payment was not made.
Sunvar, owned by the Prieto family, vacated Mile Long in August following repeated tirades by Duterte and the government’s issuance of an eviction notice. The Prietos also decided to sell the Philippine Daily Inquirer to a businessman said to be allied to Duterte.
Just last month, a Makati court also ordered Sunvar to pay P2 billion in back rentals.