Group Topic

I. Estate Tax A. Nature of Estate Tax

1 1. Definition
2. Fixed Rate (Sec. 84) (amended by RA No. 10963)
3. Accrual of Estate Tax vs. Liability for Payment (Sec. 3 of RR No. 12-
2018)
4. Property Tax or Excise Tax?

Separate Opinion of Justice Bersamin in CIR vs. Pilipinas Shell, GR No.

188497 dated February 19, 2014

B. Composition of the Gross Estate (Sec. 104) / (Sec. 4 of RR No. 12-2018)

1. Residents and Citizens
2. Nonresident aliens
a. Rule on Reciprocity
b. Rules on Intangible Personal Property
CIR vs. Fisher (1 SCRA 93)

3. Gross Estate (Secs. 85 and 104)

a. Valuation Rules (Secs. 85 and 88) (Sec. 5 of RR No. 18-2013)
1. Real Property
2. Personal Property
3. Shares of Stock
4. Usufruct
b. Decedent’s Interest ,
c. Transfer in Contemplation of Death
d. Revocable Transfer
2 e. Property Passing Under General Power of Appointment - Correlate
with Sec. 87(b) and (c)
f. Proceeds of Life Insurance
g. Prior Interest
h. Transfers for Insufficient Consideration
i. Capital of Surviving Spouse

C. Deductions from the Gross Estate (Sec. 86, as amended by RA No. 10963)
(Sec. 6 of RR No. 12-2018)
1. Allowed to Residents and Citizens
2. Allowed to Nonresident aliens
a. Limitation under RA No. 10963, Sec. 7 RR No. 12-2018

3. Allowable Deductions (As amended by RA No. 10963)

a. Standard Deduction (As amended by RA No. 10963)
b. Claims against the Estate
Dizon vs. CTA (GR No. 140944 dated April 30, 2008)
c. Claims against insolvent persons
d. Unpaid Mortgages, Taxes and Casualty Losses
e. Vanishing Deduction
1. Requisites for deductibility
2. Rationale for grant
f. Transfers for Public Use
g. Family Home (As amended by RA No. 10963)
h. Amount Received by Heirs Under Republic Act No. 4917
3 D. Exclusion from Net Estate and Exemptions (Secs. 86 C and 87)
E. Foreign Estate Tax Credit/s (Sec. 86 D)
F. Estate Tax Returns and Payment of Tax (Secs. 90 and 91) (Sec. 9 of RR 12-
2018)
1. When required and contents
2. Time of Filing / Extension of time to file (as amended by RA No.
10963)
3. Place of Filing
4. Time of Payment / Extension of time to pay / Installment (as
amended by RA No. 10963)
5. CPA Certification (as amended by RA No. 10963)
G. Other Matters
1. Who is liable to pay? [Sec. 91 (C)]
Estate of Vda. De Gabriel vs. CIR (GR No. 155541 dated January 27,
2004)
a. Discharge of Executor or Administrator from Personal Liability
(Sec. 92)
b. Liability of Heirs
CIR vs. Pineda (21 SCRA 105)
2. Payment Before Delivery by Executor Sec. 94
Marcos II vs. CA
3. Duties of Certain Officers (Sec. 95)
4. Restitution of Tax Upon Satisfaction of Outstanding Obligations (Sec.
96)
5. Payment of Tax Antecedent to the Transfer of Shares, Bonds or
Rights (Sec. 97)
As amended by RA No. 10963
 Sec. 10 of RR No. 12-2018
RMC No. 62-2018 dated June 28, 2018

II. Donor’s A. Nature of Donor’s Tax GROUP 1

Tax
Lladoc vs. Vs. CIR (14 SCRA 292)

Pirovano vs. CIR (14 SCRA 232)

Abello vs. CIR, GR No. 120721 dated February 23, 2005

1. Definition
2. Composition of Gross Gift (Secs. 98 and 104)
3. Tax Exempt Net Gift (Sec. 99, as amended by 10963)
4. Fixed Rate (Sec. 99, as amended by 10963)
5. Gift Splitting

B. Composition of Gross Gifts (Sec. 104)

1. Residents and Citizens

2. Non-resident Alien
a. Rule on Reciprocity
b. Rules on Intangible Personal Property
3. Corporations
4. Valuation of Gifts made in Property (Sec. 102)
5. Exemption of Certain Gifts (Sec. 101, as amended)
a. Residents and Citizens
b. Nonresident Aliens
c. Corporations

C. Other Matters

1. Rule on Political Contributions (Sec. 99C)

Secs 13 and 14 RA 7166 Omnibus Election Code (Treatment of

political contributions to candidates and political parties)

RR No. 7-2011 dated February 16, 2011

GROUP 2

RMC 30-2016 dated 14 March 2016 (Note: Only those

donations/contributions that have been utilized/spent during the
campaign period as set by the COMELEC are exempt from donor’s
tax.)
 RR 8-2009 dated 22 October 2009 – Withholding tax on all political
contributions and campaign expenditures of candidates running for
public office.

Cf with Abello vs CIR, G.R. No. 120721 dated 23 February 2005

2. Transfer for less than adequate and full consideration (Sec. 100, as
amended by RA 10963) Cf. Philamlife vs Secretary of Finance, G.R. No.
210987 dated 24 November 2014
- Note: Under Sec. 100, there is no donative intent
required.
3. Manner of computing Donor’s Tax (sec. 14 RR No. 12-2018)
4. Tax Credit for Donor’s Taxes paid to a Foreign Country [Sec. 101 (C)]
5. Renunciation of share in the conjugal partnership or absolute
community; and, hereditary estate (Sec. 11 RR No. 2-03)
6. Capacity to buy

Sps. Evono vs Department of Finance, CTA EB Case No. 705 dated 04

June 2012
III. Value Sections 105-115 of the NIRC, amended by RA Nos.9337, 10378 and RA
Added Tax 10963

Implemented by RR Nos. 16-05 as amended by RR Nos. 4-07 and RR 13-2018

(among others)

A. PRELIMINARY MATTERS

1. Nature and characteristic of VAT in general

Sec. 4.105.-2 of RR No. 16-05

CIR vs. Magsaysay Lines GR No. 146984 dated July 28, 2006
CIR vs. Seagate Technology (Phils) GR No. 153866 February 11, 2005
Concurring Opinion of Justice Abad – Fort Bonifacio Development
Corp. vs. CIR, GR No. 173425 dated September 4, 2012.

Tolentino v Guingona, G.R. No. 115455, 25 Aug. 1994 – legality of

eVat; Motion for Reconsideration 18 Oct 2005

GROUP 3

2. VAT as an indirect tax

Contex vs. CIR GR No. 151135 dated July 2, 2004

3. Persons Liable (Sec. 105)

i. Persons liable in general

CIR vs. CA and Commonwealth Management Services GR No. 125355

dated March 30, 2000.

ii. Who are required to register for VAT (Sec. 236 G, as amended by RA
10963)
iii. Optional VAT Registration (Sec. 236 H, as amended by RA 10963)
Sec. 109(2), Q/As 6, 30 and 31 of RMC No. 46-2008 dated February
1, 2008, Sec. 4-109-2 of

RR No. 13-2018

iv. VAT vs. Percentage Tax

1. Sec. 109(BB) vs. Sec. 116 (as amended by RA 10963)

4. Meaning of the phrase “in the course of trade of business” (Sec. 105)

Sec. 4.105-3 of RR No. 16-05

CIR vs. Magsaysay Lines GR No. 146984 dated July 28, 2006
Mindanao II Geothermal Partnership vs. CIR, GR No. 193301 dated
March 11, 2013
 CIR vs. Sony Phils, Inc. G.R. No. 178697, November 17, 2010
Power Sector Assets and Liabilities Management Corporation vs. CIR,
GR No. 198146 dated August 8, 2017

5. Exceptions to the Rule of Regularity

6. Output Tax vs. Input Taxes
i. Sources of Input Tax (Sec. 110 A) (as amended by RA 10963)
ii. Excess Output or Input Tax (Sec. 111 B)
iii. Rule on Input Tax on Capital Goods (Sec. 110A) (as amended
by RA 10963)
1. Sec. 4.110-3 of RR No. 16-05 as amended by Sec. 16
of RR 4-2007
2. Sec. 4.110-3 of RR No. 13-2018
iv. Substantiation of Input Tax Credits (Sec. 4.110-8 of RR No.
16-05)

CIR vs. Sony Phils, Inc. G.R. No. 178697, November 17, 2010