ESTATE TAX UNDER TRAIN LAW

[Music] good evening everybody my name is attorney Yasmin Muller and joining me tonight are my partner's attorney Bernardino aqua and attorney Tercel Mercado Gephardt so um tonight's episode on partners in law visible lady lawyers association has brought us a very special guest attorney jose hector miranda attorney Jose Baron de is the chief of the legal division of the Bureau of Internal Revenue scoob's good evening sir welcome to the show okay yeah good evening thank you for inviting me here in behalf of the Bureau of Internal Revenue or even original authority in Cebu City we are happy that we will were given the opportunity to talk about the new law or the new amendment on the state tax our topic for tonight is estate tax under the Train law and we will also be touching on well just slightly touching on donors taxes and to highlight the benefits under the Train law we will be comparing it to the estate tax and the donors tax of the old tax rules as well so let us begin with the most obvious change which is the tax rate so what is the tax rate under the new law again basically the purpose of this train load passes this law is to make the law simply for the benefit of the taxpayer considering there are stakeholders with regards to estate tax the most prominent amendment of this is the race now we have a flat rate of 6% on the based on the net asset the net asset of the decedent because previously it goes up to 20% and with regard to that we have also reduce an amendment on the amount of the family home it is before it's only 1 million now it goes up to 10 million and with regards is the standard deduction from 1 million so to 5 million another amendment that is that the we deleted the claims on deduction with regards to the medical expenses judicial allowance and the funeral expenses because we believe that it is difficult on the part of the heirs to justify the amount considering that it must be super before it is allowed as deduction it must be supported by documents so attorney veranda you mentioned that under the tree in law the tax rate is now a flat 6% under the old tax rules it was 20% do you believe the old rules made it very burdensome on the air taxpayers which resulted in them not transferring or processing properties into their names or not being able to properly use the inheritance that was given to them yes because basically as I've said before the outlook is that we have so many documentation and the rain also we said it's not it's that 20% up but it would depend on the assets of the decedent but as I said it goes up to 20% but now yes because obviously the previous law is on the rates alone it is more than sample for the part of the of the of the era's now we have only 6 percent based on the natasha so wounded rates alone we can see that the the new load 3 no it's more like I said friendly on the part of the the ears so you mentioned earlier about the value of the family home being higher under the Train law you said it is now that valued at ten million if for example their neighbor Rhonda there is a family home that is valued at six million can the heirs deduct the full ten million yes we have to identify her classify first a the kind of the classification of the families as to whether or not it is a conjugal property or exclusive of property because if it is a conjugal property assuming that the IMG have said it's only six millions the heirs can only did the family home up to 3 million considering that it is 20 grand but assuming that it is exclusive then the full six million can't be claimed as the adoption on the part of the the ears how about if the fat were the worth of the family home is at 15 million attorney so how do you about the doesn't that yes again we have to classify but the the loss is the maximum deduction is only 10 million so so if it's more than 10 million either limited to the Marion so I three how but I'm in terms of procedure what are the changes in the old tax law and under the new Train law this the first is the time of filing before it's only six months now you have one one year from the decedent you can find file the return within one year and the rule is that the rule is we have to file and pay but you are allowed to make representation with the Bureau as to whether or not you will pay in installment this disposition of one of the properties of the dissident attorney veranda if the taxpayer heirs decide to pay Stallman well they'd be free to transfer the property to their name pending the installments or only once it's fully paid no I sub said we have the rule that before we can release the property they state tax must first be settled now the rule says that if you want in an installment you have to indicate also on how you will bethe omits it monthly annually or quarterly so finding the full payment of the installment the property will not be released first and you are only given that to have the installment on the extended period meaning up to two years and you mentioned that you can select which properties you want to be released so under the old tax rules you had to callate that state and pay the taxes before it can be released to the heirs yes so how does that compare now to the new tax rules where you mentioned you can choose which properties you want to have release let's say mr. X left behind ten properties and the heirs only want to dispose of two and can only afford to pay the taxes on to so can they have those two properties release and this is also the the the amendment introduced under the Train because before I jump said you can you are your you have to call it for to consolidate all the properties of the DC that before you can pay this data but we have some time in 2003 revenue regulation - - 2003 I think it provides an installment also the sailing of properties is that you can you can dispose any of the properties but you will only be subjected to in the rest assuming that the it's allowed by the Bureau because you have to seek the approval of the bureau now on the on the train this is now incorporated or mentioned in the law itself before it was only under a regulation but now this is only now invention in the law that you can have an installment in cash for this disposition of the to dispose the any of the properties to invade the ails and you can just pay that provided all the proceeds will be applied to the today state tax so he summarized long ago attorney if ever an air Condillac afford no pay in cash for the Salonika opted to pay me to kneel on one of the properties yeah inaudible IKEA and proceeds at oten and Moy in in Bolivia's entire yes yes yes and that's one of the amendments of the Train law within an amoeba property they will choose which of the properties then seal it with the approval of the Bureau provided as I've said the the proceeds will be applied to the payment of state tax and then to clarify put attorney under the new law whether Banga cannot eat a Geeta Guinea log buyer for example on estate tax long running a property long Byron and then release not on the property or in England Byron gyeongtae both state parks upon an maha property the property will be released those two centers provided that the the the tax on that property has already also been begging me so manga Angus yes yes the amendment on the parts as I state tax not o practical and then attorney regarding that so Dylan and I when the taxpayer applies for that installment and kind of soak a long on - a plan for the approved linear regulation only says that you will submit the in approval from the bureau so in the tax on the tax return you will indicate now assuming that you want to avail of the installment payment you will indicate there on how you would pay the one the the tax if it is monthly and quarterly or annually what's the two years yes so you're limited with a few years so the two years even if you eat a Gaeta Gaeta but Kinnelon at the end of two years and people estate tax or for that property law attorney state and full full what is this full state tax because if you will assuming you say that you will pay this in installment finally then the state that attacks joey's 1 million the new have only paid five five hundred thousand then the remaining five hundred thousand will now be subjected to the civil penalties this is the twenty five percent surcharge and interest recon from the times say and Daphnia one five hundred thousand a because and cotton 500 pneumonia Byron a a pre-op what if attorney I didn't get that and Anita unknown if only estates this is Chi quite Ananda Banco how is this estate disposed of under the old rules and how is it now under the Train law again this is an amendment on the new law because before before sayona is school assuming a bank deposit plan is initially you can only have twenty thousand for the heirs to use that on the processing of the estate tax now you are allowed to withdraw the bank deposit deposit of a decedent provided the six percent state that will be deducted by the bank managers amendment carried in animal mokuba and bank deposits decision it's a bank paul came along that only to us and Ian Ian tanning stayin you will apply Italian for the state for the state semana motto cassabi are then finally they deform and in Parramatta and all tax identification number and state then that document you will just have it received by the bank Perihan Banco his mother Kwajalein and not defined by our anni and for the bank also to the partner Bank in agreement nila not an idea in an estate and estate so canning the ions is the separately shaza ears the eye endpoints a disease yes yes so my hope the I mean I'm Banco and withholds 60s years so ego Rock'em oh I'd totally Paquita aunty s stain on there it would draw anymore less than six percent so I'm Punk would Alma limit analyst with the bank will give you the two three go six form to as proof that you have already six weeks six percent or they've been deducted on that amount but not shake wanna a document you have to attach the son declaration that you are six percent already been deducted and that the older assuming that it is joint accounts that the holder doing doing this the depositor is alive for example it's a joint account so I'm entire value of the of the deposit on a charge on at those six percent or only how do you go about that no it's only in the proportional interest of the decedent meaning assuming I 100000 and then the there are two depositors joint accounts then only the fifty percent will be considered for taxation purposes state that a tree breaks at a so we'll be right back after this break you welcome back earlier before the break we were talking about the bank deposits under the new train and how it will be treated under the new train law attorney Bernardin aqua asked attorney Miranda how to treat joint accounts so attorney can you elaborate more yes sir because if it is a joint account only the the on the portion of the interest of the decision will be considered for taxation purposes as state tax because the other is will be for the very possible so attorney so for example 1 million and values deposit Valley five hundred thousand will be included as state of the decision and then attorney what if I tell me the kind of when you try to to withdraw the deposit can we also claim the deductions or that's that's the that's the neck a there are because that's the because if you want a and I said captain Hitomi story Anya you can just bring the API n the the state then you can have no you cannot withdraw the amount no deduction is allowed on the full six percent will be but if you want that deposit to to have to be subjected to the deduction you will have to file it trip on the regular procedure meaning you will have the extra judicial settlement filed a state tax returns so but how about attorney if partial memory withdraw quite inertia then partials that I must subject to the final tax or you have to withdraw everything in her account and England's rose is within one year you can withdraw that within one year Allah meaning assuming the young decedent died January 1 you have only until December 31 to avail of this the bank more than that you have to file it regularly now if you want the six percent unknown of the the partial the rules is silent on that aspect but basically you can do that portion land and most likely countable amount or salamu given Royal Assent it's silent and resign but mana considering a six person and person and six weeks and partial rapport with require no six percent and open e opinion to the Tosa but I said it's gray area national my script these cells whom partial and picasa negotiate attorney we have been mentioning the old tax rules and the new Train law so when will this apply if a person died in December 2002 thousand seventeen what should apply the old tax law or the new well it's the law says it's the the trainer will apply only death occurring 2018 so meaning cutting mat I died before the old law will apply so they have the old rate twenty percent and the old deductions okay so when you have a loved one who dies and you are the heirs what should be the first step that you do first is you have to consolidate or have the properties of the DC then then you go up again to the documentation which is the extrajudicial settlement the tax declaration of the the property is the title of the properties and in filed under returns which is one year but you are allowed to have an extension of 30 years filing only filing because filing of returns is one year extension of thirty thirty days but we take our to payment you have up until two years you can have an extension of with the approval of the bureau you can pay in two years is the two years from the time of the death or from the time of the filing the rolls is filing filing but again we can we can still apply the one of one year period then we will count the two exactly in any weld up three years as long as the the the the request is filed within the one year period meaning the lacuna maemunah one year on him time to file a return and to pay nyberg extension after one year on the leadership we will deny that Anya negligence is grounds for denial meaning booming maken-ki Cadogan and getting most results of the fiercest a limit mummy we forgot we don't know how to file this what me knowledge Sonny well to us that's negation and it is provided in the rules that negligence is grounds for denial of the request for extension so in other words attorney if after one year in a comic file you have to pay in full yes no no more extension you can you can play a game um and got on civil penalties and interest but you can still pay in instances the same bill and the the interest will accrue an interest rates attorney it's still the same under the new and the old no under the Train law we will have now the an interest rate doable but the what is prescribed by the very central bank because the interest is 20% now considering that the the prevailing interest rate now as prescribed by the central bank is 6% so Alamo is 12% doable yeah ok so any lower get lower get up on the scintillation compared to the how about civil penalties is the same not the same upon 25% nation and compromise is depending the nation on is a bracket especially depending as a this rafinha district official so since we're talking about inheritance there is this tool that some people used to use under the old law which is called estate planning since certain states are burdened by up to 20% under the old law some people opted during their lifetime to donate the property to there would be heirs where the maximum tax rate is 15% do you think that this is still an important thing for people to do to help avoid heavier taxes or has it become irrelevant under the new Train law to me it's already irrelevant and that is a thing of the past Nadia okay because ungreased car on sale donation and the state tax is the same six percent only that indonesian donation is now subject to documentary stamp tax just the same as la para una silla and sale only the state tax is not subject to place T which is 1.5 percent so from atomic state plan Inca what we take a domain of look at the pressure 120 percent come on man okay Monica donate by Atlanta 1.5 percent assuming an I subset and don't donation can be subject nests and owners docking base big well-appointed actual is it - ah yes but is there a certain idea gap 100,000 is exempt from the genes okay so can you give us a quick comparison of donors tax under the old tax rules and under the nutrient law before my opponent and donation is what I say this the docs terms now we have terms and before is that if you donate properties which is considered as strangers thirty percent and among relatives its cotton we will use the the brackets and the what is this the rates provided in the code more than psychosis want no one telling strangers meaning if you donate to strangers or relatives now the same six percent how about cattle cattle there was an I remember there is an exception before a theory Nina every year like you have an allowance tax-free and donation do I think family members while an aside national Arwen well enough pay 6% muhimu London's pneumonia during the year knock upon a cathode tube if their embassy and you might same but more than that much objected Gaza so the 250 is an annual allowance yes yes morning on an initial inertia Gotama boots Ilona is undrafted after the common good sermon on among immigrant nation moving ammonia ammonia and so Nemoto madam the purpose of having it can an installment among donation is a great day we've got total donation during the year is 100,000 Somali she read assuming 10% but if you will you will donate more than 100,000 most abdomen and grades so that's the purpose you're talking on among a staggering among donation during the year now the same mantilla 6% ramana puja so adam adam one demente rates no man take back its rate so what i really really want so i'm property if it's disposed during your lifetime either through a sale or through a donation or after your death through inheritance the flat rate of 6% yes applies so this is a very big change from the old tax rules deliver I can see a lot on Kabir no I will not race got my and collection but and the purpose is to free up all this property singer manna cruciate or well Muhammad's among ears because of this taxes so money at Antigua monotone rates per se on the part of the heirs to settle their they state that the decedent so the tree know is really for the benefit of the taxpayer everything is simplified everything is streamlined it's less burdensome so taxpayers no longer have an excuse not the file you have to pay the taxes because either way it would be the same because I really use this video to explain the Train law because the Train though this has been a top Commission delay my young but to me I hope you will agree with me that this law the wisdom is there the purpose there this is for the the taxpayers benefit what is the defect of this law it's not the law itself to me but it is the timing had this law been implemented before no one determine factors Karim this is a very good look so to me this is a very good long and effect long and is the timing Terina you said now this is actually for the benefit of the taxpayer so and people will be encouraged to do file their taxes on time so the government well and if I say like Michael X and i'ma penalties if because if if my biood Nikita and marine Midland during the year or be not a delay much Mayo we don't need the penalties a number is we can collect as much as collection during the year and penalties is kanae this is moral quality penalty lang give me personal attack spearing a dog a guy you know come by but on the part of the government we don't need these penalties as slow as we can collect the that's why we have rules we have do we have we have what is this prescription and how when and to pay that so thank you attorney will be will go on a break so we'll be right back after this break stay with us [Music] welcome before the break we were talking about the benefits of the Train law to taxpayers and how it was really framed more to benefit the taxpayers rather than the government so my question now attorney is for those who died before the effectivity of the Train law do they have any like consolation under the Train law or is it something that what solution or what what can you say I suppose it's it's not know because applications chaterino is death during 2018 and the those who died before 2008 in the old rates of the old law will apply now but we have this when congressman Koo Kim boom arrow conducted a public hearing how we will go about implementing and I'm misty on the state taxes last ebrary I think I supposed it's less temporary by hotel we were asking what suggestion so there is the the the main topic there or the discussion is cocoons and rates on Sun rates and then come as a coup top and qualified to have the amnesty but I want this to be clear that this is still pending in Congress although this is has already been considered since I said since February but most likely if assuming this will be approved this will be implemented any time next year so and the benefit of this is that the proposal on the consolidated build which is 48:1 for this is sponsored by different dependents or from Iloilo mirror in boy and the killer who were from casein I think the rate is 6% so meaning latitude and tantum penalties so the pop train law so basically this would be their benefits a train look at the automation and and the purpose of this amnesty is Abe said to properties because of this taxes what my divides ears or my use is because of this taxes now hopefully this bill will be approved any time next year the rate is 6% and the benefit of this is that the administrative penalties and Cuong also criminal because we can file this for failure to pay tax because nomination and political domination Sumana and gaining House bill 48.4 did build me hopefully my promise you any time next year I think a lot of people are really waiting because as the president said that we will build build build on the part of the air we have to call a cola-cola be seen and I came on at next year's visioned and probably nominees this the target is April so this will be with also prep during the filing so morgue macdougan hopefully vietname dong and but the target date is April I think for state that amnesty but I've said I want this to be clearing and this is consideration no chance yes for passage I think 70 percent and interns adding an apostle attorney come numata and assists a 19 forgotten and then on the Billina Lanka young Minako all the time 100 years maka benefits Allah yes and problem island not one is because maybe it will be traced out or included in the in the ire from the regulation because an estate tax money at once meaning see a facsimile attack assuming a numata 1901 so now a mañana we have to trace that because all this who died was interest on that property is subject to state that so my own it--and ounce maybe assassin is a length and iron concern and a topic function trepanning a Granik anonymity because this is one it's not only the rate is not only the penalties or the the the payment of the say that that is holding on the air to process this this inheritance but also on how to go about this scenario a technical dissident what sound in him okay and the documentation of the spoons are listening you will find one when when dockets for this dissident and are therefore this decision hopefully must solve yes I think just listen really I'm here to buy it but because of this Melissa and comply so husana psyche consider during the public hearing on how to make it simple no qualifies the taxpayers I owned by its own and quanta aura is the kind of communication so modern daily Caillou attractive on the parts taxpayer a more well because of this documentations asana it's not only the rate that has been traced out during the public hearing but on her to go about among simple and an application historically based on your experience a trainee every time there's a tax amnesty Duggan bump reveal the gungeon Minami regulation how to avail of to pay delinquent accounts dating Quinn delinquency taxes but again and now I requirements one good so daily more like I said it's not so attractive on the part a big one but much mine Ellen make it so I get a option and when I do K lying may move but kidding Robinho regulation I think toward s2000 I forget to Tonto if I'm not mistaken Naish a short manage a you will only pay 40% in person and I mean doubt for validities for the perset financial incapacitated person but Mona I think we can and hypothetical scenario what if is it possible because assuming amnesty is it possible now because of the penalties and interests mahad many on values of property such that an heiress well honestly like my Dawa yes I am the gun guy young metal and again and remedies a barrier a nice Munna Elin we have to first is alienable then select on public option capelin mijita boy attorney frequent Vanek na a new kind of Morag mahogany Rahul a new top or delete guy you can ideally and I get extremely obtained on our part but among a noun but we had a given wat on among a mirror and a new property whom did they get by an MA in fact Mona Simone option is first is we have to lien the property so notified the assuming from business am here I'm not see a real properties mean the property they notify taken that we have a claim on your property well no but no by admitted nominee land property compromisable Bonham estate tax attorney I'm an Aggie certain economic ma non agree Connecticut penalties nagging certain a compromise penalty but ideally time about score take Momo goodness sake oh and mom Ganesha so modern acid may rates as a compromise penalty once again in an interest and researchers nanana nanan compromise in a theme and then generally belong percentage anima compromise cooking behind on airs really good seller financially capable independent independent Asha depend if you depend on the the is the value of the property then I say brackets at it and so deal in Asia fix and then of the discretion is necessarily description but but echo insulated to 1998-99 a bracket gap okay if Co an attorney like really believe apology on property more except on the IR of let's a portion of the property instead of cash is that possible what do you mean like for example a lot that is subject to estate taxes let's say 1000 square meters and then believe me love myself when Obama offers along like 100 square meters in alimony P for estate taxes is that possible close but we don't agree it's a provisional monthly payment of property we got the property because of failure to pay it's not because we have the property I did the porosity because it is in you of payment in cash no that's not possible but I'm catanduva revenue regulation went to before and the option to sell a property on young options and to target a given property so cut among the ones who died before trained law can they can you they can just kind of go to that regular any regulation yes yes Marama subject to the discussion approval and the civil and the interest sensible a Jew dominant ups antennas at opening the new Louis come you sell coke atoms a moon in Wuhan voila - a colonist a civil civil interest pistachio man Lang name was a an IKE atoms acronyms installment is not O'Shea interest not interest an extension extension to pay motor China interest White's orchards and killing extension allowed to cut to pay Incas certain properties forgiveness she is no sable interests an airplane when one puts a cutter extension to pay as I have said before extension to pay and pay made installment or they they this was a dispositive on property so extension to pay is not a what case or charts but not after interest in Mumbai red green blob pass tamuka Anya besides an Apogee the the bureau may require you to put up a band not doable with the value of the property so mano-a-mano say the princess returned installment in cazuca the kuan-yin curtain extension to pay him is not a required on a bond and interest subject as a interest to on a case or church attorney come bada you need contacts amnestic obama give me sure the lemons at nasa forever no yes yes there's nice sunset provision on that so answer period nutella and more can comply al taxpayer or the taxpayer who wants to avail of the amnesty like my own experience again i forget that obscenities at is a you consider lesser discussion come harness on period anna it's two years five years but our recommendation is para deliver three years linked to my mama I don't know if it will be considered the last tax amnesty debate okay Gloria administration how long Monsanto sure before the sunset provision e1 I think that's only one year like one year in Lucia also the three years that's a good age okay statement good cattigan Gloria is government all internet access mental but income taxes so at least um cat among DeLuca disposal on property hey listen months at good mobility enjoys a kidney clinic process linearly because and an acre electronic certificate authority registration issue make it appear as proof the taxes already been paid and remitted the bureau Napa good day we have uncovered a the proliferation of faith girls they face so meaning well I give Bayat and megabox Bureau when I give it so Monica and bribe Quran is in fact we will be filing a case any time it's technique next for fake cars so money ban theta K night again faker and so de Lima muscle economy transaction sell a property processing of state that the nation involving real properties have Sedna and ie car can hang on Momo higher Gitmo I am a fixer the practicing lawyers must my unit sorry my responsibility accountability accountability siento by ok Munna Anand was a spare investigation mo and faker is done by cunning bang fly-by-night cunning man canning process process plan so attorney can and we need to wrap up so is there anything that you want my parting words first automobiles yes miss a burner and we need to collect for the entire thirty three billion for this region alone hopefully you can help us we need the the funds for the expenses of the the government have said the mandate the the trust of the government is to build build build so our mandate here also is the politically so thank you so much Attorney Jose October Rhonda from the Bureau of Internal Revenue for taking the time out to explain to us this new trained law other laws as well as the donor tax donors taxes and to all our viewers we hope that tonight has shed light on our new tax system and we hope that you could be this viii of use to you have a good night and thank you [Music]

Channel: Partners In Law - CELLA

Views: 16,453

Rating: 4.7553959 out of 5

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Id: 7c0GCyZEVBw

Length: 49min 24sec (2964 seconds)

Published: Sun Mar 31 2019