We’ve been consulted on a number of real estate transactions that had to be shelved because of unsettled estate taxes. It’s not because the owners — who inherited the properties — have the intention of evading taxes; it’s just that a lot of people do not know about, or do not give much importance to, the settlement of estate taxes immediately after the death of the original owner. The rule is: if a real estate owner dies, the heirs (spouse, children, etc.) must file the appropriate tax return with the Bureau of Internal Revenue (BIR) and pay the corresponding estate taxes. Unless the estate tax is paid and the BIR issues a Certificate Authorizing Registration (CAR), the Register of Deeds will not allow the transfer of the title to the real estate. The difficiculty of complying with this requirement discourages transactions involving the property, like partition among the heirs and sale of the property itself. There are estate taxes that remain unpaid after decades, with the basic tax, plus interest, penalties and surcharges, potentially exceeding the value of the property. Continue reading
The last day to avail of tax amnesty is 5 May 2008. Now, before you get excited because you may happen to have failed to file your income tax return by 15 April 2008, this tax amnesty refers to all national internal revenue taxes for the taxable year 2005 and prior years that have remained unpaid as of 31 December 2005. Continue reading
DEPARTMENT ORDER No. 29-07
August 15, 2007
RULES AND REGULATIONS TO IMPLEMENT REPUBLIC ACT No. 9480
Pursuant to Section 15 of Republic Act No. 9480, “An Act Enhancing Revenue Administration and Collection By Granting An Amnesty On all Unpaid Internal Revenue Taxes Imposed by the National Government For Taxable Year 2005 and Prior Years,” the following rules and regulations are hereby promulgated to implement the provisions of said Act.
May 24, 2007
AN ACT ENHANCING REVENUE ADMINISTRATION AND COLLECTION BY GRANTING AN AMNESTY ON ALL UNPAID INTERNAL REVENUE TAXES IMPOSED BY THE NATIONAL GOVERNMENT FOR TAXABLE YEAR 2005 AND PRIOR YEARS