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Tax Law, Estates

Meanwhile, the estate tax amnesty program is in limbo…though hopefully not for long!

Happy Independence Day Philippines 2018

Happy Independence Day!

For the dozens of you wanting to know what’s what…

As earlier reported, Congress agreed on a version for the extension already and submitted it to the President.

Under the Constitution, the President may 1) veto (cancel) the bill or 2) certain portions of it OR 3) sign it OR 4) not do anything.

For 1, if the entire bill is vetoed, no more amnesty. Although the Dept. of Finance already expressed willingness to extend the program given the target collection in amnesty taxes for availment was not met.

For 2, this is highly unlikely since the only major provision is the extension of the program PLUS the removal of the Deed of Extrajudicial Settlement/Decision as a requirement for payment of the taxes.

As many of you and our clients have experienced, it is hard to get papers going around this pandemic. So if ever, the President may veto that portion and hopefully approve the rest.

For 3 and 4, same effect. If he signs it, it becomes law. If he doesn’t do anything, it passes into law 30 days after submission to him anyway.

So what now?

We wait.

Since Congress submitted it late May, the bill has 30 days to lapse into law. Meanwhile, it is likely that after June 14, there will be a period of limbo where the bill will go either into passage around end of June and heaven for those wishing to avail…

or the other place for those who did not or could not avail. :’(

We will keep you posted until then, but meanwhile, why don’t you share your thoughts with us?

Here is the Constitutional provision btw for reference:

Section 27, Article VI of the 1987 Constitution which reads as follows:


Section 27.

(1) Every bill passed by the Congress shall, before it becomes a law, be presented to the President. If he approves the same he shall sign it; otherwise, he shall veto it and return the same with his objections to the House where it originated, which shall enter the objections at large in its Journal and proceed to reconsider it. If, after such reconsideration, two-thirds of all the Members of such House shall agree to pass the bill, it shall be sent, together with the objections, to the other House by which it shall likewise be reconsidered, and if approved by two-thirds of all the Members of that House, it shall become a law. In all such cases, the votes of each House shall be determined by yeas or nays, and the names of the Members voting for or against shall be entered in its Journal. The President shall communicate his veto of any bill to the House where it originated within thirty days after the date of receipt thereof, otherwise, it shall become a law as if he had signed it.

(2) The President shall have the power to veto any particular item or items in an appropriation, revenue, or tariff bill, but the veto shall not affect the item or items to which he does not object.

Should it be extended, we will again open our doors for your estate tax amnesty concerns. Thanks and God bless!

Categories
Tax Law, Estates

Congress APPROVES the estate tax amnesty extension!

Great News for Estate Tax Amnesty fans!

The House of Representatives agreed with the Senate version of the Estate Tax Amnesty extension, so no need for bicameral hearing anymore!

Now, it is up to the President.

Once this bill is passed into law, you will have another 2 years to avail of the amnesty!

Though this time, maybe even without the Extrajudicial Settlement that is currently problematic because of all the travel restrictions due to COVID.

You may read the entire Business World article here.

If you have any questions regarding the Estate Tax Amnesty, you may send us a message or email us at info@jstplaw.com

We will let you know when it all happens!

And if Estate Tax Amnesty is extended, we will be again opening our virtual doors for free consultations!

Maybe this time, we all won’t wait until the last minute to work on it again, eh?

Keep safe and God bless.

Categories
Tax Law, Estates

3 More Distinct Features of the Estate Tax Amnesty Law

The Estate Tax Amnesty program have very distinct features that make it easier than regular estate tax settlement.

First, they won’t question your return as it enjoys the conclusive presumption as true, correct and final. This means that it will not matter whether there are other properties still comprising the estate. Of course the rules still apply but the tax return enjoys a “conclusive presumption of correctness”, to wit,

“Section 7. Presumption of Correctness of the Estate Tax Amnesty Returns. – The Estate Tax Amnesty Returns shall be conclusively presumed as true, correct, and final upon filing thereof, and shall be deemed complete upon full payment of the amount due.”

What is a conclusive presumption?

In the case of MATILDE MENCIANO et al, v. PAZ NERI SAN JOSE. G.R. No. L-1967. May 28, 1951, the syllabus stated,

“The provisions of Rule 123, section 68(c) on conclusive presumption are so clear that they do not require interpretation or construction, but only application.”

We therefore submit that the documents you present are no longer subject to interpretation or construction but only application.

A second feature is that there is no need for an accountant’s certification regarding the estate’s computation if the estate is more than the threshold amount at the time.

A third feature is that there is no need for a certificate of non-holdings from the nearby cities – quite tedious!

Thanks for reading and keep safe!

Categories
Tax Law, Estates

Get the free e-book: “Ultimate Guide to Estate Tax Amnesty”

Just click here ==> http://eepurl.com/hwh8o9

Categories
Tax Law, Estates

For Estate Tax Amnesty Consultation

Thanks for everyone who attended our free webinar! Click on the link below to schedule a free consult for your Estate Tax Amnesty concerns. Stay safe!

https://www.calendar.com/joshsantiago/jstp-law/estate-tax-consult/

Categories
Tax Law, Estates

Estate Tax Amnesty is ENDING

ᐈ Deadline stock images, Royalty Free deadline photos photos | download on  Depositphotos®

You have exactly 60 days from today to settle those properties that are still in the names of your dearly departed ancestors.

Note that there is still some work needed in preparation for this as you may need to prepare a Deed of Extrajudicial Settlement of Estate, not to mention secure certified copies of titles, tax declarations, bank or stock certificates.

The good news is, you save A LOT of money if you avail of it.

Join our FREE webinar this April 17, 2021.

Click here to register.

Categories
Tax Law, Estates

April 15 deadline for Tax Returns NOT Extended BUT…

The BIR recently came out with Revenue Memorandum Circular No. 46-2021 last 6 April 2021. The deadline has NOT been extended for the filing of Annual Income Tax Returns for taxable year ending Dec. 31, 2020.

BUT, here is some good news:
1. Tentative AITR may be filed.
2. This can be amended on or before May 15, 2021 without fines/penalties.
3. Digital signatures are now allowed
4. Electronic submission of returns allowed in accordance with RMC 49-2020

Here is the full text of RMC 46-2021

Categories
Tax Law, Estates

SEC introduces Online Submission Tool

Composition of portable netbook with empty screen placed near dry plant in vase with basket

The Online Submission Tool (OST) is an online facility to be used for submitting the Audited Financial Statement (AFS), General Information Sheet (GIS), Sworn Statement for Foundations (SSF), General Form for Financial Statements (GFFS), Special Form for Financial Statement (SFFS) and other reportorial requirements. All corporations registered with SEC must enroll in the OST in order to access and submit reports through the system.

Here is the link to start submitting.
https://cifss-ost.sec.gov.ph/user/login

This is a very timely development as we continue to face the pandemic and as more and more processes are being done online. Should you wish for more guidance, please feel free to contact us. Keep safe!

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Article

141 days Before the Estate Tax Amnesty Expires

Do you have a house or land that could not be transferred because of estate taxes? For those who died before 2018, you can save a lot on estate taxes under the estate tax amnesty law which will expire on June 14, 2021.

This will be the last chance to avail of the 6% tax on the net estate or a minimum of only PHP 5,000 for loved ones who died before the year 2018. If not, estate tax rates can go up to as much as 20% PLUS interest and penalties.

For more information, see https://www.bir.gov.ph/images/bir_files/internal_communications_1/Digest%20RR%202019/RR%206-2019.pdf


#TaxAmnestyLaw #RA11213

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Article

Kamusta?

We hope you’re all safe in the midst of the pandemic of Covid-19.

We decided to change our website format (from static to blog type) to do our part and help people stay informed.

We will also be posting content regularly about the law and how it affects our everyday lives which we hope will also serve the community.