UNIVERSITY OF THE PHILIPPINES
College of Law
COURSE SYLLABUS
TAXATION 2
Prof. Lai-Lynn Barcenas
Second Semester SY 2018-2019
Tuesdays 8:30 am to 10:00 am
Saturdays, 10:00 am to 11:30 am
I. ESTATE TAX
(Sec. 84-97, Sec. 104, NIRC, as amended by Rep. Act No. 10963, Rev. Reg. No.
12-2018)
Situationer on Estate Taxation in the Philippines: Issues and Prospects, NTRC Tax
Research Journal, Volume XXXIII.4, July – August 2011, pp. 1-13
[Link]
What law governs the imposition of the tax?
Section 3, Rev. Reg., 12-2018
Lorenzo v. Posadas, G. R. No. L-43082, June 18, 1937
A. GROSS ESTATE
1. Definition of Gross Estate, in general
Section 104, NIRC
a. Composition of Gross Estate
i. Residents and citizens
Section 4(1), Rev. Reg. 12-2018
ii. Non-resident alien
Section 4(2), Rev. Reg. 12-2018
b. Reciprocity principle
Section 104 (a) and (b), NIRC
CIR v. Fisher, G. R. No. L-11622 and L-11668, January 28, 1961
(focus on how the reciprocity principle is applied)
2. Determination of the Value of the Gross Estate
Section 88, NIRC
Section 5, Rev. Reg. 12-2018
Section 85(A) to (I), NIRC
a. Decedent’s Interest
Section 85(A)
b. Transfer in Contemplation of Death
Section 85(B)
BIR Ruling No. 10-03, September 08, 2003
c. Revocable Transfer
Section 85(C)
BIR Ruling No. 013-05, August 16, 2005
d. Property Passing Under General Power of Appointment
Section 85(D)
e. Proceeds of Life Insurance
Section 85(E)
BIR Ruling No. 166-93, May 03, 1993
f. Prior Interests
Section 85(F)
g. Transfers for Insufficient Consideration
Section 85(G)
B. EXCLUSION FROM GROSS ESTATE
Capital of the Surviving Spouse
Section 85(H), NIRC
C. DEDUCTION FROM GROSS ESTATE
1. Citizen or Resident
Section 86(A), NIRC, as amended
Section 6, Rev. Reg. 12-2018
a. Standard deduction
Section 86(A)(1), NIRC, as amended
Section 6(1), Rev. Reg. 12-2018
b. Claims against the estate
Section 86(A)(2), NIRC, as amended
Section 6(2), Rev. Reg. 12-2018
Dizon v. Court of Tax Appeals, G. R. No. 140944, April 30, 2008
c. Claims against insolvent persons
Section 86(A)(3), NIRC, as amended
Section 6(3), Rev. Reg. 12-2018
See Sec. 4 (c) and (p) of Rep. Act No. 10142 (Financial Rehabilitation
and Insolvency Act of 2010)
d. Unpaid mortgages
Section 86(A)(4), NIRC, as amended
Section 6(4), Rev. Reg. 12-2018
e. Property previously taxed
Section 86(A)(5), NIRC, as amended
Section 6(5), Rev. Reg. 12-2018
f. Transfers for public use
Section 86(A)(6), NIRC, as amended
Section 6(6), Rev. Reg. 12-2018
g. Family home
Section 86(A)(7), NIRC, as amended
Section 6(7), Rev. Reg. 12-2018
BIR Ruling No. 440-11, November 11, 2011
See Articles 152, 153, 156 and 161 of the Family Code
h. Retirement benefits and separation pay of decedent
Section 86(A)(8), NIRC, as amended
Section 6(8), Rev. Reg. 12-2018
See Section 1 of Rep. Act 4917
2. Non-Resident Alien (on part of gross estate situated in the Philippines)
Section 86(B), NIRC, as amended
Section 7, Rev. Reg. 12-2018
a. Standard deduction
Section 86(B)(1), NIRC, as amended
Section 7(1), Rev. Reg. 12-2018
b. Proportion of the Philippine gross estate to the world gross estate
in relation to the following:
i. Claims against the estate
ii. Claims against insolvent persons
iii. Unpaid mortgages
Section 86(B)(2), NIRC, as amended
Section 7(2), Rev. Reg. 12-2018
c. Property previously taxed
Section (B)(3), NIRC, as amended
Section 7(3), Rev. Reg. 12-2018
d. Transfers for public use
Section B(4), NIRC, as amended
Section 7(4), Rev. Reg. 12-2018
D. DEDUCTION FROM NET ESTATE
Share in Conjugal Property
a. Citizen and Resident Alien
Section 86(C), NIRC, as amended; Section 6(9), Rev. Reg. No. 12-
2018 (on Resident Alien, Nationality principle on property rights and
successional rights?)
b. Non-Resident Alien
Sec. 7 (5), Rev. Reg. No. 12-2018 (Nationality principle on property
rights and successional rights?)
E. TAX RATE AND ESTATE TAX DUE
Section 84 (NIRC), as amended
See Section 8, Rev. Reg. 12-2018
F. TAX CREDIT FOR ESTATE TAXES PAID TO FOREIGN COUNTRY
Section 86(D), as amended
G. EXEMPTION OF CERTAIN ACQUISITIONS
Section 87, NIRC
See Article 863 of the Civil Code
H. FILING OF ESTATE TAX RETURN
Section 90, NIRC, as amended
Section 9(1) to (3), Rev. Reg. 12-2018
a. Contents of the Return
Section 90(A), NIRC, as amended
Section 9(1), Rev. Reg. 12-2018
b. Time for filing
Section 90(B), NIRC, as amended
Section 9(2), Rev. Reg. 12-2018
c. When certification from a Certified Public Accountant is required
Section 90(A)(3), NIRC, as amended
Section 9(1), Rev. Reg. 12-2018
d. Extension of time to file return
Section 90 (C), NIRC, as amended
Section 9(3), Rev. Reg. 12-2018
e. Place of filing
Section 90(D), NIRC, as amended
Section 9(8), Rev. Reg. 12-2018
I. PAYMENT OF TAX
Section 91, NIRC, as amended
Section 9(4) to (9), Rev. Reg. 12-2018
a. Time of payment
Section 91(A), NIRC, as amended
Section 9 (4), Rev. Reg. No. 12-2018
b. Extension of time
Section 91(B), NIRC, as amended
Section 9 (5), Rev. Reg. No. 12-2018
c. Installment payment
Section 91(C), NIRC, as amended
Section 9 (6) and (7), Rev. Reg. No. 12-2018
d. Place of filing the return and payment of the tax
Section 9(8), Rev. Reg. 12-2018
e. Liability for payment
Section 91(D), NIRC, as amended
Sec. 9(9), Rev. Reg. No. 12-2018
f. When distributive share of heirs may be delivered
Section 94, NIRC
g. Payment of tax antecedent to the transfer of shares, bonds or
rights
Section 97, NIRC, as amended
Section 10, Rev. Reg. 12-2018
J. WHEN IS EXECUTOR OR ADMINISTRATOR DISCHARGED FROM PERSONAL LIABILITY
Section 92, NIRC
K. RESTITUTION OF TAX
Section 96, NIRC
L. DUTIES OF CERTAIN OFFICERS AND DEBTORS
Section 95, NIRC
