MARCH 21, 2014

NR # 3412

Solon seeks amendment of tax code for easier payment of gross estate tax on properties
A House member is seeking an amendment of the Tax Reform Act to give heirs of the decedent the opportunity to pay the gross estate tax on properties more easily and also increase tax collection of the government. Rep. Ma. Theresa Bonoan ( th !istrict" Manila# said her proposal is not only for the convenience of the heirs but also for the government to help it improve its collection of estate tax. Bonoan cited that estate tax remains to be one of the lo$est contributors to government coffers" citing that in %&'&" the Bureau of (nternal Revenue (B(R# managed to collect only )'.* billion in estate taxes" representing about a tenth of one percent of the total tax collection of )+%%., billion. As to the heirs" she said her proposal should allo$ them to pay the gross estate tax on properties included in the estate" per property. -This mean the heirs can pay first the estate tax on one property to be able to cause the transfer of the said property to the heirs or one of the heirs" or for the latter to be able to sell the same and the proceeds to be used as payment for the other estate tax" and so forth". said Bonoan" a vice chairperson of the House /ommittee on Metro Manila !evelopment. (n House Bill *+,0" Bonoan sought the amendment of 1ection 2' of Republic Act + % " other$ise kno$n as the Tax Reform Act of '223 or the 4ational (nternal Revenue /ode. The amendment provides that -(f the immediate payment in full of the gross estate tax as may be charged on the estate left by the decedent" $ould impose undue hardship and difficulty upon the estate or any of the heirs" the gross estate tax charged may be computed per property and that the heirs may then be allo$ed to pay the said estate tax per property and successively.. The bill" no$ pending at the House /ommittee on 5ays and Means chaired by Rep. Romero 6uimbo (%nd !istrict" Marikina /ity# further provides -The total amount of the gross estate tax as computed on all the properties covered by the estate must be completely settled $ithin '& years" in case the estate is settled through the courts" or seven years in case the estate is settled extra 7udicially.. (*&# rbb

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