Professional Documents
Culture Documents
Taxation 2
By: Atty. Francis Jay Sababan
He knows the intricacies of law and jurisprudence like the lines on the palm of
his hand.
A pre-week and pre-bar lecturer in Taxation law and jurisprudence at the
following schools in geographical order:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
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18.
Last Bar majority of topics came from Tax 2. Your course is LLB,
meaning Libo-libong Bagsak o Liwat-liwat Bar sa Ilonggo. Do
not frustrate because the general rule in the bar is flanking and
exception is passing. So why frustrate yourself if you belong to
general rule?
Estate Tax
You have to know the term Estate Tax because in the
Philippine law we have 3 laws that use the word estate.
First, we have Income tax in sections 60-66 in tax code. We
also have real property tax under the local government code.
And the last is this estate tax, so do not confuse these terms.
So both donors and estate taxes are called transfer taxes. In
one of the bar exams it was asked, what are transfer taxes
under the Philippine Laws?
Section 104
You have to determine who are the taxpayers under
estate and donors tax are. Section 104 covers both kinds of
taxpayers.
Estate tax:
1.
2.
3.
4.
Resident citizen
Non-resident citizen
Resident alien
Non-resident alien
Donors tax:
1.
2.
3.
4.
5.
6.
Resident citizen
Non-resident citizen
Resident alien
Non-resident alien
Domestic corporations
Foreign corporations
2.
3.
Gross
estate
(sec.85)
MINUS
deductions
(sec.86,par.a-c) EQUALS net estate or taxable estate TIMES
the rate under sec.84 EQUALS taxable net estate.: So,
4.
1.
2.
5.
Remember:
2.
In contemplation of death:
a. During the lifetime of transferor he transfer
property but continues to possess the
property;
b. During lifetime he transfers but continues
to receives the fruits of the property;
c. He alone himself or together with other
persons and shall appoint a person who will
continue to receive the income of the
property.
By jurisprudence Vidal roses vs Posadas 58 Phil 108,
Dizon vs Posadas 57 Phil 465
Dizon vs Posadas
Father donated land to one and only son, father
died. Son tried to pay donors and donees tax. The
same officer argued again, it is a transfer in
contemplation of death because your father died
few days after execution of deed. SC agreed with
Posadas.
So you see, the transfer in contemplation death will
be under jurisprudence and under Tax code. So if
asked by way of enumeration what are transfers in
contemplation of death:
Dont quote the provision or case title
because that is marking.
Paragraph c on Revocable transfer- please memorize this.
What is revocable?
For instance your father said, this land will
be transferred in your name but it will be revoked if
you fail to pass bar in 2010 to be determine in March
2011. Whether you pass or not, that is a revocable
transfer.
1.
2.
3.
sec.86(e);
excess Input under VAT sec.110(B) credit
against any tax;
sec.204
Sec. 104
Who are the TPs under estate and donors tax?
Estate:
1.
2.
3.
4.
RC
NRC
RA
NRA- liability is only with respect to
property within the Philippines
Donors Tax:
1.
2.
3.
4.
5.
6.
RC
NRC
RA
NRA-sources within
DC
FC- sources within