Estate Tax Overview

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Questions and Answers

What is the primary basis for the imposition of an estate tax?

  • The income generated by the estate after death
  • The size of the estate in terms of assets
  • The value of the property being transferred
  • The privilege of controlling the disposition of property upon death (correct)

When does the right of the State to impose estate tax arise?

  • At the time of death of the property owner (correct)
  • When the property owner files an estate tax return
  • When the estate is distributed to the heirs
  • When the estate is valued and assessed by tax authorities

Which of the following statements is true regarding estate tax?

  • Estate tax applies only to properties exceeding a certain value
  • Estate tax is calculated based on the annual income of the deceased
  • Estate tax is levied on gifts made during the lifetime of the individual
  • Estate tax is an excise tax imposed on the act of passing property ownership (correct)

Which aspect of property transfer does the estate tax not consider?

<p>The value of the property being transferred (D)</p> Signup and view all the answers

What does estate tax specifically target?

<p>The privilege to transmit ownership at the time of death (D)</p> Signup and view all the answers

Who is primarily responsible for filing and paying the estate tax in the Philippines?

<p>The administrator or executor first (B)</p> Signup and view all the answers

What is the due date for the estate tax to be paid in the Philippines?

<p>Within one year from the date of death (B)</p> Signup and view all the answers

What is one of the main purposes of the estate tax in the Philippines?

<p>To generate revenue for the government (A)</p> Signup and view all the answers

Which entity is considered a juridical person in estate taxation?

<p>The estate itself (D)</p> Signup and view all the answers

Which of the following has the lowest priority when it comes to the obligation to pay estate tax?

<p>Transferees of properties (A)</p> Signup and view all the answers

Flashcards

Estate Tax

A tax on the right to pass on property at death.

Estate Tax: Nature

It's levied on the act of transferring ownership, not on the value of the property itself.

Estate Tax: Accrual

The moment a person dies, the right of the government to tax this privilege arises.

Privilege to Transmit Estate

The power to control the disposition of your property before death.

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Passing Ownership

The act of ownership being transferred from the deceased to the beneficiaries.

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When does estate tax accrue?

The moment the person dies, the government's right to tax this privilege arises.

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What is the nature of estate tax?

It's a tax on the right to pass on property at death, not on the value of the property itself.

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Who is the taxpayer in estate taxation?

The estate as a legal entity is responsible for paying the estate tax.

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Who is primarily responsible for filing estate tax?

The executor or administrator is primarily responsible for filing and paying the estate tax.

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Who is responsible for paying estate tax if the primary parties fail?

They are responsible for paying the estate tax if the executor, administrator, or heirs fail to do so.

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Study Notes

Estate Tax Overview

  • Estate tax is a tax levied on the transfer of property upon death.
  • It's an excise tax, not a tax on the property itself or the right to it.
  • The right to tax the estate transfer arises at the moment of death.
  • The accrual of the tax is distinct from the obligation to pay the same.
  • Accrual: Right upon death of the decedent.
  • Due Date: Within one year from death.
  • Purpose of Estate Tax: To generate revenue for the government and to ensure fair and equitable distribution of wealth within society.

Taxpayer in Estate Taxation

  • The estate as a juridical person.

Personal Obligation to File and Pay

  • In the Philippines, the responsibility for paying the estate tax generally falls to:
    • The administrator or executor
    • Any of the heir
    • Beneficiaries of the Estate
    • Transferees of Properties
    • Donees
    • Order of priority: 1. Administrator/Executor; 2. Heirs; 3. Beneficiaries; 4. Transferees; 5. Donees

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