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BIR tightens tax reins, ups estate ante to P50B


The Bureau of Internal Revenue will strictly enforce the rules governing estate taxes as it sets an ambitious collection goal of P50 billion by 2016.

According to BIR Commissioner Kim Henares, stricter enforcement of the estate tax is a key action plan that will enable the agency to reach its medium-term revenue goal.

In applying the rules, the BIR will have to coordinate with banks to get information on the wealth of a deceased person, Henares said.

The Bank Secrecy law, which prohibits the divulging of information related to deposits and assets entrusted to banks, does not apply to dead people nor to cases involving the need to collect appropriate estate tax, she stressed.

Also, the BIR will need to strengthen its ties with the National Statistics Office, which provides updates on people who have died and the property they pass on to their heirs, she said.

“We will strictly monitor the transfer of estate to collect the tax due. We are targeting to collect P50 billion [from now] up to 2016,” Henares told reporters.

The estate tax refers to the duty imposed on a deceased person’s beneficiaries. Henares said most people tend to cheat in settling their estate dues.

The BIR’s annual estate tax collection stands at about P1 billion, an amount she described to be negligible. The only exception was in 2012, Henares said, when one person, a foreigner whom she did not identify, paid P1 billion in estate tax, boosting the government’s take to P2 billion.

To attain its P50-billion goal by 2016, the BIR should collect P12.5 billion a year.

The Tax Code states that the estate tax is computed based on the net value of an estate. An estate worth below P200,000 is not covered by the tax.

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Tags: Bureau of Internal Revenue , Business , News , tax

  • Sarmie Nielsen

    The BIR to collect more taxes!? Did the government and politicians run out of pork barrel money ??

  • Mario_Garcia

    She’s praying that more billionaires will die between now and 2016.

  • Mario_Garcia

    Pati yung mga namayap ay hindi rin pinagbigyan.

  • Aydunlayk

    Mukhang pine-pressure si Henares ng mga buwaya na pataasin ang pangolekta ng taxes lalo na’t na-uncover ang pork barrel scam.

  • Anti-Pork lover boy

    Lesson to learn here: Bibili ka ng property and then later ipapamana mo rin lang sa mga anak mo, why not buy and name it to your children right away. Iwasan ang legal double taxation.

  • Garote

    Henares, why are you not going after Napoles, the senators and congressmen who pocketed their pork barrels? How come until now you have not gone after “Lady Corona” Sen. Legarda who like corona have unexplained wealth? You only go after the middle class Filipinos, but refused to tax the big tax evaders like Monsanto, big oil companies and pharmaceutical companies, big foreign investors who exploit our natural resources to ruins but do not pay their proper taxes. Henares, you better resign from the BIR. You are useless, letting the big fishes off the hook, and pretending to be efficient tax implementer, on selective bases, on the small hard earning Filipinos.

    • EOJ

      Stupid comment. as if the BIR is not taxing the richest people and biggest companies.

      • Roland_F

        Well well the top corporate tax payers are just the international corps and not the filthy rich local Oligarchs corporation according to the BIR list published a few weeks ago.

        The richest people of the country are practically NOT paying any taxes (less than 1% – pocket money) as showbiz icon Kris Aquino is on top of the list and Henry Sy, Lucio tan & Co are way behind.

        The richest banks making Billions of Peso profit each quarter — but those big banks are not even appear at the BIR taxpayers list, but a few single branch offices of foreign banks and rural banks only.

        The sacks full of cash stored from JLN in her bathtub and handed over to congresswomen and senators are of course tax free non declared transactions.

        And don’t forget that Lucio Tan evaded paying old taxes under Erap’s reign – the BIR chief was just sacked from Erap just in time to allow the case to expire.

        So squeezing the local inheritances of let’s say a regular townhouse of 2 Million market value and demand 12.5% tax so the heir has to pay 250,000 Peso cash to BIR just for inheriting lolo’s house — this will hit hundred thousands of honest Pinoys very hard.

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