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DOF on Marcos estate tax: BIR cutting through issues to do job


The Department of Finance and the Bureau of Internal Revenue is still keen on collecting all taxes, in response to reports claiming that heirs of the late dictator Ferdinand Marcos could not be compelled to pay P203 billion in estate taxes.

Sought for comment on a recent report citing anonymous sources within the BIR, Dominguez said statements were not the official stance of the agency.

“Neither are official statements of the BIR,” Dominguez was quoted as saying by Finance Assistant Secretary Paola Alvarez in a mobile message to reporters.

A newspaper report, citing anonymous “field officials” of the BIR, said that the heirs and administrators of the Marcos estate could not be mandated or sued should they refuse to pay the tax deficiencies.

Dominguez last week said that the BIR was collecting and demanding payment from the Marcos estate administrators, adding that they hadnot paid.

The BIR said it already sent a written demand to the Marcos family, demanding to pay their tax deficiencies.

“We have been in discussions, intense discussions with the Bureau of Internal Revenue," Dominguez told reporters on the sidelines of an event in Pasay City on Tuesday.

"As you know, this has a long history. This history goes back to when the estate actually was created when former President Marcos passed away and it has been encrusted with a lot of court cases and my understanding with the Bureau of Internal Revenue is that they are trying to cut through all these issues in order to do their job,” he added.

According to the BIR, estate tax is on the right of the deceased to transmit estate to lawful heirs and beneficiaries at the time of death and on certain transfers equivalent to testamentary disposition.

“It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner," it said in its official website.

"The estate tax is based on the laws in force at the time of death notwithstanding the postponement of the actual possession or enjoyment of the estate by the beneficiary,” it added. 

Marcos and his family fled to Hawaii amid the EDSA Revolution in 1986, bringing with them 22 crates of cash valued at $717 million; 300 crates of assorted jewelry with undetermined value; $4-million worth of unset previous gems; and $7.7 million worth of jewelry; among others.

A Supreme Court document showed that the its ruling to affirm the Court of Appeals decision on the Marcos estate tax in 1994 were final and executory, and the deficiency income were unappealable.

Court records show that the estate taxes were set at P23 billion in 1991, and have since reportedly grown to P203.819 billion.

“There was the amount of originally I think P9 billion and then it became P23 billion and then now because of penalties and interest, it’s now, they say, around P203 billion so which amount is going to be settled is in discussions now with BIR,” Dominguez explained.

“The DOF and the BIR are intent on collecting all taxes due,” he added, when asked to clarify whether the agency is still keen on collecting the estate taxes from the Marcos heirs.

Senator Aquilino “Koko” Pimentel III has filed Senate Resolution 998, pushing for an investigation as to why the estate taxes dues of the Marcoses had yet to be collected after nearly 25 years.

Marcos’ son and presidential candidate Ferdinand “Bongbong” Marcos Jr. claimed that there is “a lot of fake news” involved in the issues regarding his family’s ill-gotten wealth, and the issues should be left with the lawyers to discuss.

A spokesperson for the younger Marcos also noted that the ownership of the properties subject to the estate taxes had yet to be settled.

“It’s not a coincidence that rivals of presidential frontrunner Bongbong Marcos are raising this matter in unison a few weeks before the elections. Sadly, this is all about politics,” Atty. Victor Rodriguez said.

Co-administrators

Retired Supreme Court Justice Antonio Carpio said that under the Tax Code and the Revenue Regulations, the co-administrators of the Marcos Estate, Imelda Marcos and Ferdinand Marcos Jr.,  as well as the other heirs of Marcos Sr. are expressly made liable to pay the estate tax in the original amount of P23.3 billion, which has now ballooned to more than P203 billion.

Carpio stated Section 91(D) of the Tax Code, indicating that "the estate tax imposed by Section 84 shall be paid by the executor or administrator before delivery to any beneficiary of his distributive share of the estate."

"Where there are two or more executors or administrators, all of them are severally liable for the payment of the tax. The executor or administrator of an estate has the primary obligation to pay the estate tax, but the heir or beneficiary has subsidiary liability for the payment of that portion of the estate which his distributive share bears to the value of the total net estate."

Carpio said it is clear that the Tax Code and its implementing regulations impose upon the co-administrators of the Marcos Estate "the primary obligation to pay the estate tax, and the subsidiary obligation to pay the estate tax falls on all the heirs in proportion to their distributive share in the estate."

Rodriguez, Marcos' spokesman, said the "political adversary is again painting the town yellow with his usual falsehood, lies, hatred and black propaganda."

"As held in this case by the Supreme Court, in the case of notices of levy issued to satisfy the delinquent estate tax, the delinquent taxpayer is the Estate of the decedent, and not necessarily, and exclusively Bongbong Marcos as heir of the deceased," Rodriguez said.

"Mindful that cases are still pending in court, truth however must be told, peddlers of lies unmasked; negative and hateful campaigning be stopped," he added.

The lawyer said Marcos' critics have omitted to mention that the Bureau of Internal Revenue have issued a total of 30 Notices of Levy, resorted to public sale of levied properties and there being no bidder, lots subject of the public sale was declared forfeited in favor of the government in satisfaction of the estate tax due. —with a report from Anna Felicia Bajo/NB, GMA News

 

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