1.

Enumerate and explain the amendments in the Tax Code related to Estate
taxation by TRAIN law or RA 10963?
Below is a brief discussion of the changes under estate taxation under the Train law.
1. Amendments on the Procedure for Estate Tax Settlement
A. Repeal of Filing of Notice of Death provision
Section 24 of the TRAIN law repeals Section 89 of the Tax
Code. The repealed provision provides for when a notice of death
should be filed and the period to file the same.
B. Amendment on Filing of Estate Tax Return
Section 25 of the TRAIN law amends Section 90 of the Tax
Code, which provides for the procedural requirements for the estate-
tax return.
The TRAIN law requires that estate-tax returns showing a
gross value exceeding P5 million must be certified by a certified public
accountant. This is P3 million higher than the old tax rule, which only
required CPA certifications for estate-tax returns that exceed a gross
value of P2 million. The TRAIN law has also increased the period for
filing of estate-tax returns from six months from the decedent’s death
to one year.
C. Amendment of Payment of Estate Tax by Installment
Section 26 of the TRAIN law amends Section 91(c) of the Tax
Code, which provides for the payment of estate tax by installment.
Under the TRAIN law, payment by installment has been
particularly simplified. However, the law has provided for an implied
limitation of two years for the payment of the full estate-tax liability,
which was previously not contained in the old tax rule.

2. Amendment on Withdrawals from Deceased’s Bank Account

Section 27 of TRAIN Law amends Section 97 of the Tax Code, which
concerns allowable withdrawals from the deceased person’s account.
Under the old Tax Rule, only withdrawals up to P20,000 are allowed.
The administrator of the estate or any one of the heirs may, when authorized
by the commissioner, withdraw an amount not exceeding P20,000. However,
the Train Law has increased allowable withdrawals from the deceased
person’s account to any amount, subject to a 6-percent final withholding tax.
The amendments on estate taxes were enacted with the end in view
of enticing the heirs to declare the real value of their deceased kin’s estate
and to pay the proper estate tax. Filing requirements have also been made
simpler and filer-friendly. It remains to be seen whether collection of estate
taxes will improve.