Business and Transfer Taxes Notes

Estate Tax
Basic Terms in Taxation
Taxation power of the Government to impose burden upon
the people to earn Revenue.
3 Inherent Powers of the State ( definition: Acaylar, PJ)
. Police Power ! power to monitor people for
the "eneral welfare.
#. $minent %omain ! power to expropriate
private propert& for public use.
3. Taxation ! power of the "overnment to
impose burden upon the people to earn
revenue.
'Note(
Taxation is the foundation wherein "overnment
is founded on. Taxes and the "overnment have
a s&mbiotic relationship.
Without taxation there is no government
- Judge
Cooley
)IN%S *+ T,-$S
. Income Taxes ! taxes levied on the financial
income of persons. corporations. or other le"al
entities.
#. Business Taxes/ taxes levied on the privile"e
to enter into business
a. 0alue ,dded Taxes
b. *ther Percenta"e Taxes
c. $xcise Tax ! tax imposed on SIN
products 1 products that are harmful
and wasteful2
3. Transfer Taxes ! taxes on the privile"e to
transfer of propert& from one person to
another.
a. $state Taxes ! ta3es effect after death
b. %onor4s Taxes ! ta3es effect durin"
lifetime
a. %onation Inter 0ivos / durin"
life
b. %onation 5ortis 6ausa ! ta3es
effect after death. 1 7ast will
and Testament2
8. %ocumentar& Taxes ! taxes levied on the
privile"e to enter into contract.
RIG9T 0S. PRI0I7$G$
Ri"ht The basics of human existence.Those thin"s that
are Necessar& to live. :ou cannot live without these.
$". Ri"ht to breathe. ri"ht to live. ri"ht to vote. +reedom of speech. $tc.
PRivile"e ,re Ri"hts that &ou can live without.
These are thin"s that are allowed and "ranted b& the state.
These privile"es can be Taxed.
$". %river4s license. Professional 7icenses. etc. :ou can live without havin" to drive
or be a law&er. etc.
'Note(
Government re;uires us to pa& taxes so that
we can exercise the privile"es that the& have
"ranted upon us and these taxes also wor3 for
the protection of our ri"hts and privile"es.
To understand taxation. one must understand the
concept of ri"hts and privile"es. Rights are
usuall& not taxable while Privileges are usuall&
taxable.
%ouble Taxation / ille"al in the Philippines. :ou
cannot tax the same thin" twice for the same
period and for the same purpose.
6apital Gains tax ! , capital gains tax
1abbreviated( CGT2 is a tax char"ed on capital
"ains. the profit reali<ed on the sale of a non/
inventor& asset that was purchased at a lower
price.
# Basic =uestions in Taxation
. ,re &ou a 6iti<en>
#. ,re &ou a Resident
If the answer is :$S to an&one of these this is
TAXABLE.
Notes from( The New Philippine Business and Transfer Taxes 1Principles. 7aw and Problems2 b& 0ir"ilio %. Re&es 1Nov #??@2
Business and Transfer Taxes Notes from G. 5endo<a
,nd 7ectures b&( ,TT:. PR,6)I$ A,: ,6,:7,R. 6P, 1$,6/ 5anila2
5ari3itp
5aia 6astaneda #??B
Business and Transfer Taxes Notes
Estate Tax
Principles of Succession
$le5$NTS *+ S'66$SSI*N
. %eceasedC %ecedent !Person who died.
TestatorC Testatrix 1+2 ! person who wrote the last
will and testament. ,lso called the decedent.
#. $state/ a bul3 of propert& left behind b& the
decedent.
3. SuccessorsC 9eir/ the persons to whom the
estate is "iven to.
8. $xecutorC,dministrator ! person who will ta3e
char"e of the estate before the distribution.
DD $xecutor/ person named in the will b& the
testator
DD ,dministrator/ person appointed b& the
courts in the absence of an assi"ned executor.
succession mode of ac;uisition b& virtue of which the propert&
ri"hts and obli"ations. to the extent of the value of the $state of a
person are transmitted throu"h his death to others b& will or operation
of 7aw. 1 Re&es2
Thin"s Transmissible in Succession
. Propert& ! thin"s that the decedent owned
before the time of his death.
a. Real $stateC Propert&/ land. buildin" or
an&thin" that is attached to the soil
with permanence.
b. Tan"ible Propert&/ propert& that can be
seen or touched.
$". 6ars. Aewelr&. $lectronic Gad"ets. etc.
c. Intan"ible Propert&/ propert& that
cannot be seen or touched.
$". Ri"hts. +ranchises. Shares. bonds. etc.
#. Ri"hts ! le"al claims. franchises. 1could be the
same as intan"ible propert&2
3. *bli"ations ! unpaid debt
)inds of Succession
. Testamentar& Succession/ succession which
results from a desi"nation of heirs made in the
last will and testament executed b& the
testator.
#. IntestateC7e"al Succession/ succession which
results from the operation of law where there is
no last will and testament or the 7EFT is void
for an& reason "iven b& law.
3. 5ixed Succession ! succession which results
partl& from the 7EFT and Partl& from the
operation of law.
)inds of 9eirs
G Primar& 6ompulsor& 9eirs ! heirs in a
succession whether there is or there is no last
will and testament. These include(
E 7e"itimate 6hildren F7e"itimate
%escendants
E 7e"itimate Survivin" Spouse
E 7e"itimated 6hildren
Legitimate Children/ all children born F conceived
N*T out of wedloc3.
H 7e"itimate 6hild
H 7e"all& ,dopted 6hild
H 7e"itimated 6hild
Illegitimate Children all children born F conceived
out of wedloc3.
All hildren conceived and !orn outside a valid
marriage are considered illegitimate"
#(Art $%&, 'amily ode of the
Phili((ines)
G Secondar& 6ompulsor& 9eir ! onl& can "et
part of the estate in the absence of the
primar& compulsor& heirs.
E 7e"itimate ,scendants
E Illi"itimate ,scendants
G 0oluntar& 9eirs ! 9eirs determined throu"h
the last will
and testament.
7,ST EI77 ,N% T$ST,5$NT a will or testament is a document
b& which a person 1the testator2 re"ulates the ri"hts of others over his
or her propert& or famil& after death. +or the devolution of propert& not
disposed of b& will. see inheritance and intestac&. In the strictest
sense. IwillI is a "eneral term. while ItestamentI applies onl& to
dispositions of personal propert& 1this distinction is seldom observed2.
, will is also used as the instrument in a trust.
/ , written instrument wherein the testator would administer his
properties ri"hts and obli"ation after his death. 1aca&lar2
6odicil/ addenums or attachments to the will.
)inds of 7ast Eill and Testaments
G 9olo"raphic Eill / a will entirel& written
or created b& the testator himself. si"ned
and dated and N*T subJect to le"al
formalities on form. witnesses. or
ac3nowled"ement before a notar& public.
KKK This 3ind of will does not need
formalities because man& people can
reco"ni<e his handwritin" and it can be
verified b& a penmanship expert.
G Notarial Eill/ a will that is created +*R the
testator b& a 3
rd
part&. usuall& his law&er.
follows proper form. si"ned and dated in
front of the re;uired number of witnesses
and ac3nowled"ed b& the presence of a
notar& public.
# 5ari3itp
5aia 6astaneda #??B
Business and Transfer Taxes Notes
Estate Tax
# P,RTS *+ T9$ $ST,T$
G 7e"itime This is a secured portion of the estate that the law
reserves for compulsor& heirs.
G +ree Portion Portion of the will that the testator can freel&
dispose of.
PR*B,T$ *+ T9$ 7,ST EI77 ,N% T$ST,5$NT This is a Special
Proceedin" validatin" the last will and testament.
LNo propert& of a testator shall pass to an heir unless proven that all
terms in the 7ast will and testament is le"al and valid in court.M
Revocation of Eill the testator ma& revo3e his last will and
testament at an& time before he dies. If he executed more than one
7ast will and testament the last one before he dies will be the
prevalent one
%iSIN9$RIT,N6$ , compulsor& heir ma& be deprived of his
le"itime for a cause provided b& law and effected b& will where the
le"al cause of which is stated. If there is an& discrepanc&. there must
be proof or evidence.
$-$6'T*RC ,%5INISTR,T*R 6arries out the provisions of the last
will and testament that is appointed b& the testator. If he does not
accept. the court shall appoint.
,rticulo 5*RTIS testator dies within 3 months of the time of
marria"e
$ST,T$ T,-$S
, tax on the ri"ht of transmittin" propert& at the time of death
and on the privile"e that a person is "iven control to a certain
extent to the disposition of his propert& to ta3e effect upon
death.
,pplies to(
a2 6iti<ens of the Philippines
b2 Residents of the Philippines
Non/resident aliens with properties in the
Philippines
Ehere to file/ municipalit& in which the
decedent was domiciled at the time of his
death or if there be no le"al residence in the
Philippines. with the *ffice of the
6ommissioner.
GR*SS $ST,T$
,. Gross $state of 6iti<en and Resident %ecedent
. Real Propert& located within and without the
Philippines
# Tan"ible personal propert& located within and
without the Philippines
3. Intan"ible personal propert& located within
and without the Philippines
B. Gross $state of a Non/Resident ,lien %ecedent
. Real Propert& located within the Philippines
#. Tan"ible personal propert& located within the
Philippines
3. Intan"ible personal propert& located within the
Philippines unless there is reciprocit& in which
case it is not taxable in the Philippines.
Situs or P7,6e *+ T,x,TI*N
Propert& has a situs or location or a Jurisdiction for tax
purposes. Situs is decisive in determinin" the estate of a
deceased person taxable in the Philippines.
S'BA$6T T* T,-
EIT9IN EIT9*'T
6iti<en C Resident & &
Resident ,lien & &
Non Resident
,lienC
Non Resident
6iti<en
& N
Non Resident
6iti<en
& :
Real Propert&/ countr& where the& are situated
Tan"ible Personal Propert&/ countr& where the&
are actuall& located at the time of death of the
decedent
Intan"ible Personal Propert&/ considered as
intan"ible personal properties situated in the
Philippines(
G franchise which must be exercised in the
Philippines
G shares. obli"ations or bonds issued b& an&
corporation or"ani<ed in the Philippines
G shares. obli"ations or bonds issued b& an&
forei"n corporation BNO of the business of
which is located in the Phils
G shares. obli"ations or bonds issued b& a
forei"n corporation if such shares have
ac;uired a business situs in the Phils.
G Shares or ri"hts in an& partnership.
business or industr& established in the
Phils.
PR*P$RTI$S IN67'%IB7$ IN T9$ GR*SS $ST,T$
%$6$%$NT4S INT$R$ST / shall include all properties. ri"hts and
interest which the decedent owns at the time of death. It shall include(
Properties owned b& the decedent actuall& and
ph&sicall& present in his estate at the time of his
death such as land. buildin"s. shares of stoc3.
vehicles. ban3 deposit. etc
3 5ari3itp
5aia 6astaneda #??B
Business and Transfer Taxes Notes
Estate Tax
The value of an& interest in propert& owned or
possessed b& the decedent at the time of his
death such as dividends declared before his
death but received after his death. partnership
profits which have accrued before his death.
usufructuar& ri"hts. etc.
The value of propert&. ri"ht or interest in the
propert&. transferred b& the decedent durin" his
lifetime which. under the law. are in the nature of
testamentar& dispositions such as life insurance
proceeds in favor of a revocable beneficiar&.
T,-,B7$ TR,NS+$RS
0alue of the propert& or interest in propert&
transferred b& the decedent durin" his lifetime
which is in the nature of testamentar&
disposition(
H Transfers in contemplation of death
H Revocable transfers
H Propert& passin" under a "eneral power of
appointment
H Transfer with retention or reservation of
certain ri"hts over the income or
enJo&ment of the propert& transferred
H Transfer for insufficient consideration
Transfers in 6ontemplation of %eath
Impelled b& the thou"ht of death. or the
motivatin" factor or controllin" motive for the
transfer of the propert& is the thou"ht of death
without re"ard to the state of health of the
transferor.
%onation 5ortis 6ausa
Ta3es effect upon the death of the donor. Its
characteristics are(
H there is no conve&ance of title or
ownership to the donee or transferee
H the transfer is revocable b& the donor at
will durin" his lifetime
H the transfer shall be void id the donor
survives the donee
R$0*6,B7$ TR,NS+$RS
Ehere the enJo&ment of the propert& transferred
ma& be altered. amended. revo3ed or terminated
b& the decedent. The revocabilit& is not affected
b& the failure of the decedent to exercise the
power to revo3e durin" his lifetime. If the notice
has not been "iven. the power to revo3e has not
been exercised on of before the date of his death.
such notice shall be considered to have been
"iven. or the power exercised on the date of his
death.
PR*P$RT: P,SSING 'N%$R , G$N$R,7 P*E$R
*+ ,PP*INT5$NT
The rule is the "ross estate shall include an&
propert& passin" or transferred under a "eneral
power of appointment exercised b& the decedent
H B& will
H B& deed to ta3e effect in possession or
enJo&ment at or after his death
H B& deed under which he has retained for
his life or an& period not ascertainable
without reference to his death or for an&
period which does not in fact end before
his death
H The possession or enJo&ment of. or the
ri"ht to the income from the propert&
H The ri"ht. either alone. or in conJunction
with an& person to desi"nate the persons
who shall possess or enJo& the propert& or
the income therefrom
The donee of a "eneral power of appointment
holds the appointed propert& with all the
attributes of ownership thus. the appointed
propert& shall form part of the "ross estate of the
donee of the power upon his death.
Transfers with Retention and Reservation of
6ertain Ri"hts *ver the Income or $nJo&ment of
the Propert& Transferred
Transfers where the donor reserves the ri"ht to
the income of the propert& until deathP or
Transfers where the donor reserves the ri"ht to
the possession or enJo&ment of the propert& until
death
These transfers do not actuall& conve& full
ownership over the propert& transferred hence
the propert& still remains part of the "ross estate
of the transferor.
TR,N+$RS +*R INS'++I6I$NT 6*NSI%$R,TI*N
Q If the transfer is a bona fide sale for
ade;uate and full consideration in mone&
or mone&4s worth. no value shall be
included in the "ross estate.
Q If the transfer is not a bona fide sale for an
ade;uate and full consideration in mone&
8 5ari3itp
5aia 6astaneda #??B
Business and Transfer Taxes Notes
Estate Tax
or mone&4s worth. there shall be included
in the "ross estate onl& the excess of the
fair mar3et value of the propert& at the
time of death over the value of the
consideration received b& the decedent"
Q If an inter vivos transfer of the decedent is
proven to be fictitious. the total value of
the propert& at the time of death shall be
included in the "ross estate.
Reasons for Taxabilit& of the Transfers
It will be seen that in most of these transfers. the
propert& remains substantiall& that of the
transferor durin" his lifetime notwithstandin" the
transfer as he still retains either the LBeneficial
*wnershipM or LNa3ed TitleM to the propert&.
9ence. the transfer is essentiall& similar in
respect to a transmission b& testac& or intestac&
upon the death of the owner. In order to be
exempted from the purview of the taxin"
provisions. the transfer b& inter vivos must be
absolute and outri"ht with no strin"s attached
whatsoever b& the decedent.
PR*6$$%S *+ 7I+$ INS'R,N6$
Proceeds of life insurance under policies ta3en
out b& the decedent upon his own life shall be
included in his "ross estate in the followin" cases(
H when the beneficiar& is the estate of the
deceased. his executor or administrator
whether or not the deceased retained the
power of revocation
H when the beneficiar& is other than the
estate of the deceased. his executor or
administrator and the decedent retained
the power of revocation
67,I5S ,G,INST INS*70$NT P$RS*NS
,re receivables due or owin" from persons who
are not financiall& capable of meetin" their
obli"ations. The receivables shall be included in
the "ross estate at their full amount.
6,PIT,7 *+ T9$ S'R0I0ING SP*'S$
The "ross estate of a married decedent shall
consist of the followin"(
H conJu"al or communit& properties
H exclusive properties
The capital of the survivin" spouse shall not be
deemed part of the "ross estate.
EXEMT AC!"I#ITI$N# AN% T&AN#ACTI$N#
'&$M A(MENT $' E#TATE TAXE#
H the mer"er of the usufruct in the owner of
the na3ed title
H the transmission or deliver& of the
inheritance or le"ac& b& the fiduciar& heir
or le"atee to the fideicommissar&
H the transmission from the first heir.
le"atee or donee in favor of another
beneficiar& in accordance with the desire
of the predecessor
H all be;uests. devises. le"acies or transfers
to social welfare. cultural and charitable
institutions. no part of the income of which
inures to the benefit of an& individualP
Provided. however. that no more than 3?O
of the said be;uests. devices. le"acies or
transfers shall be used b& such institutions
for administration purposes.
0,7',TI*N *+ T9$ $ST,T$
H 0aluation %ate / time of death
H Basis of 0aluation / fair mar3et value.
which is the price which a propert& will
brin" when it is offered for sale b& one
who desires. but is not obli"ated to sell
and is bou"ht b& one who is under not
necessit& of bu&in" it
H 0aluation of 'sufruc t/ probable life of the
beneficiar& in accordance with the latest
Basic Standard 5ortalit& Table
H 0aluation of Real Propert& /
2 +50 as determined b& the 6ommissionerP or
#2 +50 as shown in the schedule of values fixed
b& the Provincial or 6it& ,ssessors
H 0aluation of Personal Properties/ +50 at
the time of the decedent4s death
%$%'6TI*NS +R*5 T9$ GR*SS $ST,T$
The estate tax is computed based on the net
estate. The net estate is determined b&
subtractin" from the "ross estate the deductions
authori<ed b& law.
,2'uneral )x(enses
The limit is the actual funeral expenses or the
amount e;ual to NO of the "ross estate.
whichever is lower. but in no case to exceed
P#??.???.
N 5ari3itp
5aia 6astaneda #??B
Business and Transfer Taxes Notes
Estate Tax
+uneral expenses include the expenses for the
mournin" clothin" of the spouse and unmarried
minor children. fees and char"es for masses.
rites. ceremonies incident to the interment.
expenses of interment. and the cost of the coffin.
burial plot. tombstone. mausoleum or niche. The
cost of obituar& notices. flowers and expenses of
the wa3e precedin" the burial are also part of
funeral expenses. $xpenses incurred after burial
can no lon"er be deducted.
B2 Judicial )x(enses
Refers primaril& to court expenses and expenses
of administration. The expenses of
administration include those actuall& and
necessaril& incurred in the administration of the
estate.
62 laims Against *nsolvent Persons
The "ross estate shall include receivables of the
decedent at their full amount due from debtors
who are insolvent. The deduction is the amount
of the receivable which cannot be collected due
to insolvenc&.
%2 +n(aid ,ortgage
'npaid mort"a"e in respect to propert& is a
deduction from the "ross estate subJect to the
condition that the decedent4s interest in the
propert&. undiminished b& the mort"a"e. is
included in the "ross estate.
$2 -osses
Re;uisites(
. loss is not compensated b& insurance or
otherwise
#. loss was not claimed as a deduction in the
income tax return
3. loss must occur not later than the last da&
for pa&ment of the estate tax
+2 .anishing /eduction
The purpose is to minimi<e the effect of a double
taxation on the same propert& within a short
period of time
onditions:
a2 %ecedent died within five 1N2 &ears from
receipt of the propert& from a prior decedent or
donorP
b2 Propert& on which vanishin" deduction is
bein" claimed must be located in the PhilippinesP
c2 Propert& must have formed part of the taxable
estate of the prior decedent. or of the taxable "ift
of the donorP
d2 $state tax on the prior succession or the
donor4s tax on the "ift must have been finall&
determined and paidP
e2 Propert& on which vanishin" deduction is
bein" ta3en must be identified as the one
received from the prior decedent or from the
donor. or somethin" ac;uired in exchan"e
therefore.
f2 No vanishin" deduction on the propert& was
allowable to the estate of the prior decedent
G2 'amily 0ome
, deduction from the "ross estate is an amount
e;uivalent to the current fair mar3et value of the
decedent4s famil& home. The maximum is P5.
,s a condition for the deduction for the famil&
home. it must be certified to as famil& home b&
the baran"a& captain of the localit& where it is
located.
92 1tandard /eduction
The law provides an amount e;uivalent to P5.
I2 ,edical )x(enses
There is a deduction for medical expenses
incurred b& the decedent within &ear prior to
his death. substantiated with receipts. In no case
shall the deductible medical expenses exceed
PN??.???.
A2 Amount Received under RA 23$4
,n& amount received b& the heirs from the
decedent4s emplo&er as a conse;uence of the
death of the decedent/emplo&ee in accordance
with R, 8R@ shall be deductible if such amount
is included in the "ross estate of the decedent.
)2 Procedural Re;uirements
Notice of death 1Sec. BR2 in all cases of transfers
subJect to tax. or if exempt from tax. the "ross
value of the estate exceeds P#?.???.?? must be
filed two 1#2 months after the decedent4s death or
after ;ualif&in" as executor or administrator.
S 5ari3itp
5aia 6astaneda #??B
Business and Transfer Taxes Notes
Estate Tax
$state Tax Returns
. Re;uirements( in all cases of transfers thou"h
exempt. "ross value exceeds P#??.???.??
re"ardless of value. the estate consists of
re"istered or re"istrable propert& such as real
propert&. 5otor vehicle x x x . in which case the
le"al heirs. admin. exec files a return under oath
in duplicate settin" forth( value of estate at the
time of death. deductions allowed and other info.
If "ross value exceeds P#.???.???.?? the return
shall be supported b& a statement dul& certified
to b& a 6P,(
itemi<ed assets
itemi<ed deductions from "ross estate
amount of tax due whether paid or
outstandin"

Time for filin"( S months from the decedent4s
death
$xtension of time( 6ommissioner has authorit& to
"rant in meritorious cases a reasonable extension
not exceedin" 3? da&s.
Place of filin"( ,uthori<ed a"ent ban3. R%*.
6ollection officer. dul& authori<ed treasurer of
cit&Cmunicipalit& where decedent was domiciled
or if there be no le"al residence in the Philippines.
with the *ffice of the commissioner.
I-. Pa&ment of $state Tax
Time of Pa&ment( at the time the return is filed b&
executor. admin. and heir
$xtension( Ehen 6ommissioner finds that
pa&ment would impose undue hardship on estate
or heirs. he ma& "rant an extension
not exceedin" N &ears. if estate is settled
throu"h the courts
not exceedin" # &ears. if estate is settled
extraJudiciall&
No extension in cases of assessment b& reason of
ne"li"ence. intentional disre"ard of rules and
re"ulations or fraud on part of taxpa&er.
Eho pa&s ( $xecutor. administrator before
deliver& to beneficiar&.
Beneficiar& subsidiaril& liable to the extent
of distributive share.
-. Rates of $state Tax ! Section B8
-I. %uties of "overnment a"encies

a. Sec. R8 ! No Jud"e shall authori<e the
executor or administrator to deliver the
distributive share to an& part& interested in the
estate unless a 6ertification from the
6ommissioner shows that the estate taxes have
been paid.
Sec. RN ! The Re"ister of %eeds shall not re"ister
transfer of real propert& or real ri"hts b& wa& of
"ifts inter vivos or mortis causa unless tax is
shown to have been paid.
Sec. R@ ! No transfer of shares. obli"ations. bonds
in the boo3s of a new corporation b& wa& of "ifts
inter vivos or mortis causa unless there is a
certification that the taxes have been paid.
The law&er preparin" the document relatin" to
partition or disposition shall furnish the
6ommissioner. Re"ional %irector. R%* with such
copies to facilitate collection
The debtor of the deceased shall not pa& his
debts to the heirs unless there is a 6ertification
that the taxes have been paid.
, ban3 where deposit is maintained b& decedent
shall not allow withdrawal unless there is a
6ertification that the taxes have been paid.
#ome BI& &)lings
BIR 8#3/B@ 17ife Insurance2
The taxabilit& of insurance proceeds will depend
on whether the desi"nation of the beneficiar& is
revocable or irrevocable. If revocable. the
proceeds form part of the Gross $state even if
the decedent/ insured failed to revo3e. But if the
desi"nation is irrevocable. proceeds of the life
insurance vest upon the beneficiar& immediatel&
and the& no lon"er form part of the decedent4s
"ross estate.
BIR BS/B
Receivables as well as expected tax refunds at
the time of death of the decedent form part of
the "ross estate.
BIR ?RN/RB
@ 5ari3itp
5aia 6astaneda #??B
Business and Transfer Taxes Notes
Estate Tax
The estate tax shall be appraised at its +50 as of
the time of death or as of S months thereafter at
the election of the executor or administrator.
9owever the appraised value of real propert& as
of the time of death or at the election of the
executor or administrator as of S months after
death shall either be 1a2 the current and +50 as
shown in the schedule of values b& the provincial
or cit& assessor or 1b2 the +50 as determined b&
the 6IR. whichever is hi"her.
BIR ?/BS
Shares of stoc3 which had been either
suspended. de listed or where no transactions
invo3in" them have been made. shall be valued
at their boo3 value nearest the valuation date
which is the decedent4s death. The boo3 value is
prima facie considered as +50. 9owever. if there
had been previous bona fide salesCexchan"es of
such shares. the price at which such shares
exchan"ed hands should be ta3en or considered
as +50.
BIR ?SS/RB
The estate tax return is re;uired to be filed within
S months from the decedent4s death. and in
meritorious cases. a reasonable extension not
exceedin" 3? da&s for filin" the return ma& be
"ranted b& the 6IR. The pa&ment of estate tax
shall be made upon the filin" of the return or on
such date as fixed if an extension is "ranted b&
the 6IR as when pa&ment of the same would
impose undue hardship on the estate or an& of
the heirs. but in no case to exceed N &ears if the
estate is settled throu"h the courts or # &ears in
case the state is settled extra Judiciall&.
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5aia 6astaneda #??B