Is Letter Notice by The BIR Considered
Is Letter Notice by The BIR Considered
Is Letter Notice by The BIR Considered
b) an offense had just been committed and there is probable cause to believe, based in his
personal knowledge of the facts or of other circumstances, that the person to be arrested has
committed the offense; and
c) the person to be arrested is a prisoner who has escaped from a penal establishment or place
where he is serving final judgment or temporarily confined while his case is pending, or has
escaped while being transferred from one confinement to another.
In People vs. Barros 231 SCRA 557, the Honorable SC Ruled that the
"Silence of the accused was not construed as consent, rather, it was a
demonstration of regard for the supremacy of the law, hence, the search is
considered invalid.
In Veroy vs. Layague, 210 SCRA 97, the Honorable SC held that where
permission to enter the residence is given to search for rebels, it is illegal
to search the room therein and seized firearms without a search warrant.
(Scope of the waiver).
The lawful arrest must precede the search, the process cannot be
reversed.
BIR Revenue Regulations 4-2010 amend certain provisions of Revenue Regulations No. 112006.
Only those Tax Practitioners/Agents, Partners or Officers of General Professional
Partnerships, or Officers or Directors of corporate entities engaged in tax practice who have
been issued Certificate of Accreditation or ID Card shall be allowed to represent a taxpayer or
transact a business with the Bureau of Internal Revenue in representation of a taxpayer.
"Is an extra judicial settlement with waiver subject to donor's tax, aside from estate tax?"
"The father died with no will, the children waived their right in favor of their mother."
If the property is sold and the proceeds are equally distributed to the children
after deducting the living spouses one-half conjugal share, the living spouse is
considered to have waived his/her share in the estate of the decedent spouse in
favor of their children. Such WAIVER is tantamount to a donation of property
subject to donors tax imposed under Section 98 of the 1997 NIRC. The donors
tax shall be based on the total fair market value of the property comprising the
share of the surviving spouse in the estate of the decedent spouse. The fair
market value of the property shall be determined in accordance with Section 6(E)
of the 1997 NIRC. BIR Ruling No. 013-2005 dated August 16, 2005.
ESTATE TAX; Waiver by Heirs of their Respective Shares - The gross estate of the
late Antigono A. Rosil which consists merely of bank accounts in the total amount
of P153,478.01 which is even lower than the P200,000.00 tax exempt portion of
the net estate bracket as imposed under Section 84 of the same Code is indeed
exempt from estate tax. However, the executor, administrator or any of the legal
heirs of the late Antigono A. Rosil shall be required to file the corresponding
estate tax return within six (6) months from the decedent's death with the
Revenue District Officer (RDO) of the revenue district where the decedent was
previously registered.
On the other hand, the WAIVER by the three (3) legitimate children of their
respective share in the above-mentioned estate in favor of their mother is not
subject to donor's tax as prescribed under Section 98 of the Tax Code of 1997
because in legal succession, accretion takes place in case of repudiation among
heirs of the same degree. In other words, when the three (3) legitimate children
renounced their share in the inheritance, they did not donate the property/share
to their mother, since the said property/share has never become their own. (BIR
Ruling No. 105-99 dated July 13, 1999).
Question from PICPA Group: What about if, in an extrajudicial settlement among
8 children, 6 brothers and sisters waived their shares in favor of 2 brothers. Is
this subject to donor's tax in addition to the estate tax?
under Article 1050 par 3 "If the renunciation of inheritance should be gratuitous,
and the co-heirs in whose favor it is made are those upon whom the portion
renounced should devolve by virtue of accretion, the inheritance shall not be
deemed as accepted."
article 1051 of the same code also states that "The repudiation of an inheritance
shall be made in a public or authentic document, or by petition presented to the
court having jurisdiction over the testamentary or intestate proceedings."
The BIR adopted the provision of the civil code specifically article 1050 in its BIR
Ruling No. 105-99. Hence, the waiver of rights is not subject to donor's tax if it is
gratuitous.
Sample problem: Civil Code Annotated Volume III page 585, by justice Paras. "A
instituted B, C, and D to his inheritance. The estate consisted of one house. B
renounced his share in favor of C and D. This was made by B gratuitously. In this
case, B is not deemed to have accepted the inheritance. The law says that "if the
renunciation should be gratuitous, and the co-heirs in whose favor it is made are
those upon whom the portion renounced should revolved by virtue of accretion,
the inheritance shall not be deemed as accepted.
Reason for the law, this act of B is really an absolute repudiation because the
effect of an absolute repudiation is really to give B's share to C and D. Hence,
this act of B should not be considered as an implied acceptance.
Authomatic naman po kasi na kapag mana separate property po yun ng
nakamana at wala po pakialam dun yung asawa, ang asawa po kasi ay wala
naman karapatan sa na mana ng kanyang asawa. Kaya po kung I renounced
nung naka mana yung share nya gratuitously hindi po ito masa-subject sa
donor's tax na 30%, kung yung nag renounced nga po di subject sa donor's tax
eh, yung mga spouse pa kay. Di naman privy sa contract yugn mga spouse,
meaning po wala po donor's tax stranger at walang donation na nagyari sa pag
renounced. as provided po sa BIR Ruling 105-99, in accordance with the provision
of the civil code specifically Art. 1050.
Tax treatment of Renunciation of Hereditary Rights. General renunciation by an
heir, including the surviving spouse, of his/her share in the hereditary estate left
by the decedent is NOT SUBJECT to DONOR'S TAX, unless specifically and
categorically done in favor of identified heir to the exclusion or dis advantage of
the other co heirs in the heriditary estate.
please see Revenue Regulations No. 2-2003, section 11, par 4.
In the case of Contex Corp. vs. CIR, GR No. 151135, July 2, 2004, The Honorable
Supreme Court held that "In Indirect taxation, there is a need to distinguish
between the liability for the tax and the burden for the tax. The amount of tax
paid maybe shifted or passed on by the seller to the buyer. What is transferred in
such instances is not the liability for the tax, but the tax burden. In adding or
including the VAT Due to the selling price, the seller remains the person primarily
and legally liable for the payment of the tax. What is shifted only to the
intermediate buyer and ultimately to the final purchaser is the burden of the tax.
Stated differently, a seller who is directly and legally liable for payment of an
indirect tax, such as the VAT on goods or services is not necessary the person
who ultimately bears the burden of the same tax.