4. Extension of time of payment .............................................. 100 5. Payment of tax by cash installment and partial disposition of the estate ................................................. 101 6. Partial disposition of estate and application of tax proceeds ............................................................... 101 7. Measures to insure payment of tax ..................................... 102 8. Readjustment of tax liability ............................................... 106 9. Electronic Certificate Authorizing Registration (eCAR) for estate tax .................................................... 106 10. Estate Tax Amnesty ............................................................ 109
Chapter 2. — DONOR’S TAX A. PRELIMINARY TOPICS
ix C. EXEMPTIONS OR DEDUCTIONS 1. Exemptions or deductions from gifts................................... 123 2. Other deductions from gifts ................................................. 125 3. Exemptions from donor’s tax under special laws ............... 125 D. VALUATION 1. Generally............................................................................... 126 2. Valuation of particular gifts ................................................ 126 1. Definition of donation or gift................................................ 111 2. Transfer covered ................................................................... 111 3. Kinds of donation ................................................................. 112 4. Formal requisites of donation.............................................. 112 5. Definition of gift tax ............................................................. 112 6. Power to impose gift tax....................................................... 113 7. Nature of gift tax .................................................................. 113 8. Kinds of gift tax .................................................................... 113 9. Purposes of gift tax............................................................... 114 10. Donor’s tax distinguished from estate tax .......................... 114 B. APPLICATION OF THE TAX 1. What gift includes ................................................................ 114 2. Coverage of donor’s tax ........................................................ 115 3. Transfers subject to donor’s tax........................................... 115 4. Nature of transfer to be taxable .......................................... 115 5. Essentials of a taxable gift................................................... 116 6. Completed gift ...................................................................... 116 7. Capacity of the donor and donee ......................................... 116 8. Donative intent in direct gift ............................................... 117 9. Gifts for insufficient consideration ...................................... 118 10. Gifts given out of gratitude.................................................. 119 11. Forgiveness of indebtedness ................................................ 120 12. Condonation solely for business considerations ................. 120 13. Gift of community or conjugal property .............................. 121 14. Donation between spouses ................................................... 121 15. Renunciation by heir of inheritance .................................... 122 16. Political contributions .......................................................... 123 17. Contributions to an employees' retirement plan ................ 123
THE LAW ON TRANSFER AND BUSINESS TAXATION
F. SCHEDULE AND COMPUTATION OF THE TAX
viii I. PAYMENT AND SANCTIONS 1. Persons liable to pay ............................................................ 98 2. Liability of heirs for estate tax ............................................ 98 3. Time and place of payment of tax........................................ 99 4. Extension of time of payment .............................................. 100 5. Payment of tax by cash installment and partial disposition of the estate ................................................. 101 6. Partial disposition of estate and application of tax proceeds ............................................................... 101 7. Measures to insure payment of tax ..................................... 102 8. Readjustment of tax liability ............................................... 106 9. Electronic Certificate Authorizing Registration (eCAR) for estate tax .................................................... 106 10. Estate Tax Amnesty ............................................................ 109 13. Definition of legitime............................................................ 90 14. Compulsory heirs entitled to legitime................................. 90 15. Legitimes of compulsory heirs ............................................. 91 16. Order of intestate succession ............................................... 92 17. Right of representation ........................................................ 92 18. Shares in hereditary estate in case of intestate succession ................................................... 93 H. FILING OF RETURN 1. When and by whom filing of return required ..................... 95 2. Contents of returns .............................................................. 96 3. Time for filing return ........................................................... 96 4. Place of filing return............................................................. 97 5. Rule in case of a nonresident decedent .............................. 97 1. Estate tax imposed on net estate ........................................ 77 2. Rate of estate tax.................................................................. 77 3. Procedure for computing net estate and estate tax due .......................................................... 77 4. Tax credit for estate taxes paid to a foreign country.......... 84 G. BASIC CONCEPTS OF SUCCESSION 1. Definition and nature of succession .................................... 86 2. Elements of succession......................................................... 87 3. Kinds of successors............................................................... 87 4. Capacity to succeed .............................................................. 87 5. Acceptance and repudiation of inheritance......................... 87 6. What inheritance includes ................................................... 88 7. Kinds of succession............................................................... 88 8. Definition and nature of a will............................................. 88 9. Time of succession ................................................................ 89 10. Who may make a will ........................................................... 89 11. Executors and administrators ............................................. 89 12. Restrictions on freedom to dispose of property by will .......................................................... 90
E. SCHEDULE AND COMPUTATION OF THE TAX
1. Donor’s tax imposed on total gifts ....................................... 127 2. Rate of donor’s tax ................................................................ 127 3. Computation of net gifts and donor’s tax ............................ 128 4. Tax credit for donor’s taxes paid to a foreign country ........................................................ 129 F. RETURN, PAYMENT, AND SANCTIONS 1. Return by donor.................................................................... 130 2. Time and place of filing return and payment of tax ............................................................... 131 3. Notice of donation by a donor engaged in business ...................................................................... 132 4. Electronic Certificate Authorizing Registration (eCAR) for Donor's Tax .................................................. 132 Part II BUSINESS TAXATION Chapter 1. — IN GENERAL 1. Definition of privilege tax .................................................... 134 2. Nature of privilege tax ......................................................... 134 3. Power to impose and increase privilege taxes .................... 134 4. Kinds of privilege taxes........................................................ 135 5. Meaning of “business” .......................................................... 135 6. Meaning of “to engage in business” ..................................... 135 7. When single act deemed transaction in business............... 136 8. Business conducted with another business ........................ 137
Chapter 2. — DONOR’S TAX A. PRELIMINARY TOPICS
1. Definition of donation or gift................................................ 111 2. Transfer covered ................................................................... 111 3. Kinds of donation ................................................................. 112 4. Formal requisites of donation.............................................. 112 5. Definition of gift tax ............................................................. 112 6. Power to impose gift tax....................................................... 113 7. Nature of gift tax .................................................................. 113 8. Kinds of gift tax .................................................................... 113 9. Purposes of gift tax............................................................... 114 10. Donor’s tax distinguished from estate tax .......................... 114 B. APPLICATION OF THE TAX 1. What gift includes ................................................................ 114 2. Coverage of donor’s tax ........................................................ 115 3. Transfers subject to donor’s tax........................................... 115 4. Nature of transfer to be taxable .......................................... 115
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