TAX II ESTATE TAX

STUDY GUIDE
3 HOURS

I. Introductory principles
A) Nature and applicability of donor's tax
B) Governing provisions of the NIRC of 1997
C) Purposes for the imposition of the donor's tax
D) Requisites for donations subject to donor's tax
E) Other kinds of transfers of properties considered as donations subject to donor's tax
F) Manner of determining donor's tax payable
II. The gross gift
A) Classification of donor's for gift tax purposes (Secs.98 & 104)
B) Donations of Filipino citizens and resident aliens subject to donor's tax (Sec. 104)
C) The rule of reciprocity in gift taxation (Sec. 104)
1) Real properties
2) Tangible personal properties
3) Intangible personal properties
4) Valuation of donated properties subject to donor's tax (Sec. 102)
5) Valuation of properties transferred for less than an adequate and full consideration
subject to donor's tax (Sec. 100)
III. Deductions from the gross gift (Sec. 101)
A) Nature
B) If donor is Filipino citizen or resident alien
C) If donor is a non-resident alien
D) Other deductions
IV. The net gift
A) Rates of the donor's tax (Sec. 99)
B) Computation of the donor's tax due
V. Tax credit for donor's tax paid to a foreign country [Sec. 101(C)]
A) Meaning and nature of tax credit for donor's tax paid to foreign country
B) Amount of tax credit allowable
VI. Filing of reutrn and payment of the tax (Sec. 103)
A) Persons required to file return
B) Contents of the return
C) Time and place for filing of return
D) Time for payment of donor's tax
VII. Jurisprudence
A) Pirovano, et. al. v. CIR, 14 SCRA 832
B) PLDT v. Jeturian, 97 Phil. 981
C) CIR v. B.F. Goodrich Phils., Inc., February 4, 1999
D) Abello v. CIR, February 23, 2005
VIII. References
A) Chavez, J.R., Tax 2 Revealed (A Guide to Passing the Bar), Vol. II, 2014;
B) De Leon, H.S. and De Leon, H.M. Jr., The National Revenue Code, Vol I, Annotated,
2015;
C) De Leon H.S. and De Leaon, H.M. Jr., The Law on Transfer and Business Taxes, 2014.
D) Domondon, A.T., Taxation Vol. III, Transfer Taxes & Value-added Tax, 2013
E) Vitug, J. & Acosta, E., Tax Law and Jurisprudence, 2014