Notice, Filing and Payment of Estate Tax

  No Judicial Proceedings  

With Judicial Proceedings

1.    Notice of death (written) 2 months after death 2 months from the time the executor or administrator qualifies
2.    Filing of estate tax return 6 months after death 6 months after death
3.    Payment of tax Upon filing of return Upon filing of return
  1. Place of filing – Authorized Agent Bank, RDO, Collection Agent, or duly authorized Treasurer of the City or Municipality in which the decedent was domiciled at the time of his death or if there be no legal residence in the Phil., with the Office of the Commissioner.
  2. When is notice of death required?
    1. When the transfer is subject to tax.
    2.  When the gross value of the estate exceeds P20,000, even if exempt from tax.
  1. When is filing of return required?
    1. When the transfer is subject to tax.
    2. When the gross value of the estate exceeds P200,000, even if exempt from tax.
    3. Irregardless of the gross value of the estate, where said estate consists of registered or registrable property such as real property, motor vehicle, shares of stock or other similar property for which a clearance from the BIR is required as a condition precedent for the transfer of ownership in the name of the transferee.
  2. When must the return be accompanied by statement certified by a CPA?
    1. When the gross value of the estate is more than P2,000,000.
  3. State the information included in the certified statement.
    1. Itemized assets of the decedent with valuations.
    2. Itemized deductions.
    3. Tax due and payable.

 

 

  1. Surcharges (ad valorem penalty)
50% False or fraudulent return is willfully filed.
  Willful neglect to file the return on time.
25% Failure to file any return and pay the tax due thereon.
  If the return is not filed with the proper internal revenue officer.
  Failure to pay on time the deficiency tax shown in the notice of assessment.

Note: The failure to file any return and pay the tax thereon are now treated as one act or violation for purposes of the imposition of penalties.

  1. Interest for failure to pay tax per return on time

Rate – 20% per annum, or such higher rate as may be prescribed by rules and regulations, computed from the date prescribed for payment until the amount is fully paid.

Questions to Answer:

  1. The estate tax return should be accompanied by a certificate of an independent CPA if the gross estate is:
a. P2,000,000 b. P2,000,000 or over c. Over P2,000,000 d. P50,000 or over
  1. Statement 1: The estate tax return should be filed with the Authorized Agent Bank, Revenue District Officer, Collection Agent or duly authorized Treasurer of the City or Municipality in which the decedent was domiciled at the time of his death.

Statement 2: If the decedent was a non-resident, not a citizen of the Philippines, the               estate tax return may be filed with the Commissioner of Internal Revenue.

A. Both statements are correct.

B. Both statements are wrong.

C. The first statement is correct and the second statement is wrong.

D. The first statement is wrong and the second statement is correct.

For the correct answers,  I would like to invite you to join my exclusive groups of aspiring CPAs for my upcoming project “CPA Dream Academy”.CPA DREAM ACADEMY

CPA Mentor,

JONATHAN RUIZ CPA, MIB

 

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About Jonathan Ruiz CPA

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
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