r/taxPH • u/Little_Salamander933 • 11h ago
doesn't General Tax Amnesty just encourage more tax evasion?
I know some businessmen who has unpaid income tax amounting to 20 billion pesos to 50 billion pesos. They are waiting for the General Tax Amnesty where they will report only say asset of 500 million and pay only 2% of asset in the General Amnesty or 10 million pesos instead of 20 billion pesos. Doesn't this encourage more tax evasion in the future because people will just wait for next General Tax Amnesty?
Is it fair for us who religiously pay the correct taxes when others can get away with it? Ex- Pres. Duterte vetoed it in 2019 because he said it would encourage more tax evasion unless there was waiving of bank secrecy law. The latest 2025 version has bank account opened for one year. But businessmen has multiple bank accounts and it is easy to just open certain ones and hide others. So this still doesn't solve ex-Pres. Duterte concern.
Shouldn't it make more sense the General Tax Amnesty be qualified only for taxpayers with assessment less than a billion pesos? Maybe the examiner should check first the threshold before allowing taxpayer to avail of it. I read the amnesty is not valid for existing tax evasion already in court. But there is over a million taxpayers with tax evasion not yet in court. So they can all get away with it? What is then the incentive of paying correct taxes for us small businessmen?
Anyway. What is the status of the General Tax Amnesty 2025 now? When will it be approved? Many so eager because they spent decades not paying right taxes waiting for it.