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UNIVERSITY OF THE PHILIPPINES

COLLEGE OF LAW
Diliman, Quezon City
Syllabus on
ESTATE TAX
Prof. Carlos G. Baniqued
I.

INTRODUCTION
A. When Estate Tax Accrues
Revenue Regulations No. 2-2003, Dec. 16, 2002
Lorenzo v. Posadas, 64 Phil. 353 (1937)
B. Non-Resident Alien Decedent
Sections 84, 85, and 104, NIRC
C. General Definition of Gross Estate
Secs. 85 and 104, NIRC
D. Constitution
1.
Property in Which Decedent Had an Interest
Sec. 85(A), NIRC
2.
Transfers in Contemplation of Death
Sec. 85(B), NIRC
3.
Transfers Taking Effect at Death
Sec. 85(B), NIRC
Ganuelas v. Cawed, 401 SCRA 447 (2003)
4.
Transfers with Retained Interest
Sec. 85(B), NIRC
a.
Period for Which Interest is Retained
i. For life
ii. For a period not ascertainable without reference to death
iii. For any period which does not in fact end before death
b.
Nature of Interest Retained
i. Possession or enjoyment
ii. Right to income
iii. Right to designate person who shall have possession or
enjoyment
iv. Right to designate person who shall receive income
5.
Revocable Transfers
Sec. 85(C), NIRC
a.
Nature of Power
i. Power to alter or amend
ii. Power to revoke
iii. Power to terminate
b.
Meaning of Power in “Whatever Capacity”
c.
Meaning of Power Exercisable in “Conjunction with any
Other Person”
d.
Meaning of “Relinquishment of Power in Contemplation
of Death”
6.
Power of Appointment
Sec. 85(D), NIRC

Meaning of “Power of Appointment” Applicability in the Philippines 7. NIRC A. 328 SCRA 666 (2000) Lizarraga Hermanos v. Transfers for Public Use D. Global Limitation VII. 40 Phil. Losses B. Funeral Expenses 2. Claims Against the Estate Dizon v. Expenses. 85(E). 012-2002. Meaning of Resident or Non-Resident B. 86. Unpaid Debts/Mortgages 6. FOREIGN TAX CREDITS Sec. Court of Tax Appeals. Losses. Etc. b. (C) AND (D) OF THE NIRC Secs. Vanishing Deduction C. 526 (1938) Lorenzo v. NIRC A. NIRC . De Guzman. 83 SCRA 256 (1978) 3. NIRC a. Estate as Beneficiary b. 553 SCRA 111 (2008) III. Proceeds of Life Insurance Sec.SPECIAL RULES FOR NON-RESIDENT ALIENS A. 85 and 104. Indebtedness. VALUATION OF ESTATE AND AMOUNT TO BE INCLUDED IN CASES COVERED BY SECS. 85(B). CA. DEDUCTIONS FROM GROSS ESTATE Sec.2 a. 2002 E. 86(E). 65 Phil. (ELITE) 1. 124 (1919) De Guzman v. Claims Against Insolvent Persons 5. Medical Expenses G. Death Benefits from Employer Under NIRC § 32(B)(6)(a) and (b) VI. Inclusions in Gross Estate Secs. April 3. supra 4. NIRC Dizon v. EXEMPT TRANSFERS Sec. NIRC IV. NIRC V. Third Person as Beneficiary II. Family Home BIR Rul. Taxes. Haygood. 85(G) and 88. 85(H). Standard Deduction F. Expenses for Testamentary or Intestate Proceedings CIR v. supra Collector v. Posadas. Court of Tax Appeals. Per Country Limitation B. 520. No. EXCLUSION OF CONJUGAL SHARE OF SURVIVING SPOUSE Sec. 87. Abada.

NIRC C. No. April 23. NIRC B.3 C. By or Among Heirs of Different Degree Sec. 86(E). By or Among Heirs of Same Degree Sec. 19. 89. No. EFFECT OF RENUNCIATION/WAIVER BY SOME HEIRS A. DA-251-99. Consequences of Non-Payment of Estate Tax Secs. 2-2003 BIR Rul. ADMINISTRATIVE PROVISIONS A. Regs. 25. NIRC E. 1999 BIR Rul. Estate Tax Return Sec. 248. Rev. Rev. 90. 11. No. 84. Regs. July 13. 1999 BIR Rul. NIRC F. NIRC D. NIRC VIII. Deductions from Gross Estate Sec. Status of Heirs Pending Partition of Estate IX. No. Payment of Estate Tax Sec. _____. 2-2003 BIR Rul. 249. Tax Rates Sec. Foreign Tax Credits Sec. 455-93. 1977 . NIRC D. Nov. 94 to 97. Aug. 105-99. 86(B) and (D). 11. 91. No. No. Notice of Death Sec. 1993 B.