DOF pushes BIR to collect property taxes from Marcos heirs to generate more revenue for government

Metro Manila (CNN Philippines, March 18) — The Ministry of Finance is pushing the Bureau of Internal Revenue to collect the $203 billion in unpaid property taxes from the Marcos heirs to generate more revenue for the government, which will help institutionalize programs to make life easier for Filipinos amid the crisis. oil crisis.

“In general, we have pushed the BIR and the Customs Bureau to collect revenue, and look for sources of income, as you know, we really need more funds given the situation”, finances the Dried up. Paola Alvarez told CNN Philippines Source Friday.

Alvarez pointed to the lack of funds to subsidize more sectors that are struggling with rising pump prices and rising costs for other commodities.

The BIR, as previously confirmed by the Aksyon Demokratiko party, wrote a formal notice in December 2021 asking the Marcos to pay their inheritance tax.

READ: BIR says it sent written request to Marcos family to pay tax debts at end of 2021

“As to how they (the BIR) approached the heirs, we’re not entirely aware because it’s the BIR that’s dealing with that,” Alvarez said.

According to the BIR, inheritance tax is not a tax on property, but “imposed on the privilege of passing on property on the death of the owner”. She further explained via her official website that “property tax is based on the laws in effect at the time of death notwithstanding the postponement of possession or effective enjoyment of the estate by the beneficiary.”

Presidential candidate Ferdinand “Bongbong” Marcos Jr. earlier claimed “there is a lot of fake news involved” in his family’s unpaid property taxes despite the 1997 Supreme Court ruling that they must settle their debts , which initially amounted to £23 billion in 1997. In other words, based on the BIR’s definition of inheritance tax, the heirs of the late dictator Ferdinand Marcos, namely his wife Imelda and her children Imee, Bongbong and Irene, are forced to pay inheritance tax due to Marcos’ privilege of passing on their property

READ: Bongbong Marcos on unpaid property taxes: ‘A lot of fake news involved there’

Manila Mayor Isko Moreno, who chairs Aksyon Demokratiko, said earlier that the Marcos family should voluntarily pay the amount to show their sincerity for the welfare of Filipinos.

He argued that if the poll favorite is elected and leads the government for the next six years, the $200 billion in tax debts will likely be forgotten.

Alvarez said even the government is currently strapped for resources when it comes to providing meager monthly aid of ₱200 to the country’s poorest households amid the fuel crisis.

The DOF is also pushing the BIR to collect revenue streams from other online games and other forms of taxes.

The government has so far allocated £5billion to subsidize public transport drivers and £1billion in fuel rebates for the agricultural sector, which is also bearing the brunt of rising oil prices.

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