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Tax Ii - 2024 Vasquez
Tax Ii - 2024 Vasquez
Estate tax is a type of excise or privilege tax, because it aims to tax a privilege—that is, of
shifting the economic benefits and enjoyment of property from the dead to the living.
Estate tax laws rest in their essence upon the principle that death is the generating source from
which the taxing power takes its being, and that it is the power to transmit or the transmission
from the dead to the living on which the tax is more immediately based (Lorenzo v. Posadas, 64
Phil 353).
NOTE: Only natural persons can be held liable for estate tax. Domestic and foreign
corporations cannot be liable because they are not capable of death.
1. Decedent's interest
2. Transfer in contemplation of death
3. Revocable transfer
4. Property under general power of
appointment
5. Proceeds of life insurance
6. Prior interests
7. Transfers for insufficient consideration
8. Share of the Surviving Spouse (Sec 85,
NIRC)
i. Decedent's interest
ii. Transfers in contemplation of death
iii. Revocable transfers
iv. Property passing under a general power of appointment
v. Proceeds of life insurance
vi. Prior interests
vii. Transfers for insufficient consideration
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Presumption of Death
74 years old and below - 7 years as a rule all purposes excluding succession
10 years for purposes of settling succession
75 and above 5 years in order for the person to presume dead for purposes of succession only
4 years for all purposes estate among the heirs (applicable on person on board a vessel,
soldiers members of Armed forces, persons in danger of death)
TADEO vs MATIAS
Insurable Interest - will suffer pecuniary loss (over own life, spouse, children and parents and
over the life of debtor).
NRA- Proportionate
FAMILY HOME
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SEC 97 Second Paragraph - INTRODUCTION TO THE TRAIN LAW
Vanishing deductions po nag end. For tom, Idiscuss pa natin daw ang Estate Amnesty Act, then
magproproceed na tayo sa Donors Tax.
https://www.coursehero.com/file/91123196/Illustrative-Problem-VANISHING-DEDUCTIONpdf/ -
Vanishing deduction
https://www.officialgazette.gov.ph/downloads/2023/08aug/20230805-RA-11956-FRM.pdf -
Estate Amnesty Act RA11956
Donor’s Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property
between two or more persons who are living at the time of the transfer. It shall apply whether the
transfer is in trust or otherwise, whether the gift is direct or indirect and whether the property is
real or personal, tangible or intangible.
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Sec 100 - Tax Code