Module 1 Transfer Taxation: Concepts and Structure

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What is the nature of donor's tax?

Inter-vivos transfer – transfer by a living donor to a living donee.

Who is the taxpayer in the case of donor's tax?

Donor

When is the deadline for filing and payment of donor's tax?

30 days from the date of donation

What is the nature of estate tax?

Mortis-causa transfer – transfer upon death of the decedent. Signup and view all the answers

What is included in estate tax besides transfers upon death?

Transfers by a living donor but related to death Signup and view all the answers

Who is responsible for filing and paying estate tax?

Donee Signup and view all the answers

What is the term for the one-time tax paid from the net properties left by the decedent?

Estate tax Signup and view all the answers

When does estate tax need to be paid?

1 year from the date of death Signup and view all the answers

What is the term for individuals who receive assets from the decedent in the event of their death?

Heirs or beneficiaries Signup and view all the answers

What is the term for the net estate left by the decedent after a specified amount (e.g., P5,000,000 pesos)?

Net estate Signup and view all the answers

What is a 'transfer in contemplation of death' considered as?

Donation mortis-causa Signup and view all the answers

What type of transfer is made on the decedent's last will and testament?

Transfer to take effect upon death Signup and view all the answers

Why are transfer taxes imposed?

Transfer taxes are imposed to ensure the government takes its fair share of wealth accumulation, to tax the transfer of wealth as a manifestation of a person's ability to pay tax, and to redistribute wealth from the rich to the poor. Signup and view all the answers

What is the nature of transfer taxes?

Transfer taxes are considered as privilege or excise taxes. They are imposed on the exercise of the privilege to transfer properties through succession or donation. Signup and view all the answers

When does a donation mortis-causa occur?

A donation mortis-causa occurs when the death of the donor takes place before the fulfillment or waiver of a condition attached to the donation. Signup and view all the answers

What happens if a condition attached to a donation is waived?

If a condition attached to a donation is waived, the ownership of the property will be transferred to the beneficiary, resulting in a donation subject to donor's tax. Signup and view all the answers

According to the Ability to Pay Theory, why should transferring properties be taxed?

Transferring properties should be taxed as it is a manifestation of a person's capability to pay tax. One cannot give what they do not have. Signup and view all the answers

Explain the Wealth Redistribution Theory in relation to transfer taxes.

Wealth Redistribution Theory suggests that taxation, including transfer taxes, is a tool to redistribute wealth from the rich to the poor. Taxing transfers ensures part of the wealth is redistributed to benefit society. Signup and view all the answers