I.

QUIZ 2: Estate Tax Return

1.
The last day to file the estate tax return is on August
12, 2024. The law provides that the estate tax return shall be
filed within six (6) months from decedent’s death and under
the civil code, when the law speaks of months it shall be
understood that months are of thirty days and if months are
designated by their name, they shall be computed by the
number of days which they respectively have. Here, Mr. X
died on February 14, 2024, so counting from the said date,
the estate of Mr. X has 180 days for it to be settled. Since Mr.
X died on February, the month of death is then designated so
the period is computed by the number of days which the
months have. So, the 180 days falls of the 12 th day of August
2024. The computation of the 180 days is particularly
described as follows:
Date of death: February 14, 2024
Months: Days:
1. February 15
2. March- 31
3. April- 30
4. May- 31
5. June- 30
6. July- 31
7. August- 31 (12)
Total: 180 days

2.
The law provides that the gross estate includes all
property, real or personal, tangible or intangible, owned by
the decedent at the time of death. The documentary
requirements for filling and settlement of the estate tax
return for such properties are:

a.) For Real Properties: One (1) original copy and one (1)
photocopy
 1. TIN of decedent and heir/s as indicated in the duly
accomplished TIN Verification Slip
2. Certified true copy of the Death Certificate;
3. Certified true copy of Original/ Transfer/ Condominium
Certificate/s of Title (OCT/TCT/CCT);
4. Certified true copy of the Tax Declaration of Real
Properties for land and improvement at the time of
death;
5. Any of the following:
 Affidavit of Self Adjudication;
 Deed of Extra-Judicial Settlement of the Estate, if the
estate has been settled extra judicially;
 Court order if settled judicially; or Sworn Declaration
of all properties of the Estate
6. A certified copy of the schedule of partition and the
order of the court approving the same within thirty (30)
days after the promulgation of such order, in case of
judicial settlement;
7. CPA Statement on the itemized assets of the decedent,
itemized deductions from gross estate and the amount
due if the gross value of the estate exceeds five million
pesos (₱ 5,000,000) for decedent’s death on or after
January 1, 2018 or two million pesos (₱ 2,000,000) for
decedent’s death from January 1, 1998 to December
31, 2017;
8. Certification of the Barangay Captain for the claimed
Family Home (If the family home is conjugal property
and does not exceed Php10 Million, the allowable
deduction is one-half (1/2) of the amount only);
9. Duly notarized Promissory Note for “Claims Against the
Estate” arising from Contract of Loan;
10. Accounting of the proceeds of loan contracted
within three (3) years prior to death of the decedent;
11. Proof of the claimed “Property Previously Taxed”;
12. Proof of the claimed “Transfer for Public Use”;

Other Applicable Documents: One (1) original copy and one

(1) photocopy
  Certificate of No Improvement issued by the
Assessor’s Office, if the declared properties have no
improvement.
 Proof of claimed tax credit;
 Special Power of Attorney (SPA), if the person
transacting/processing the transfer is not a party to
the transaction and/or Sworn Statement, if one of the
heirs is designated as executor/administrator;
 Certification from the Philippine Consulate or Apostille,
if DOAS and SPA were executed abroad;
 Location Plan/Vicinity map if zonal value cannot be
readily determined from the documents submitted;
 Certificate of Exemption/BIR Ruling issued by the
Commissioner of Internal Revenue or his authorized
representative, if claiming tax exemption;
 BIR-approved request for installment payment of
Estate tax due;
 BIR-approved request for partial disposition of Estate;
 Others as the BIR deemed necessary.
b.) For Personal Properties: One (1) original copy and one
(1) photocopy
1. TIN of decedent and heir/s; as indicated in the duly
accomplished TIN Verification Slip
2. Certified true copy of the Death Certificate;
3. Any of the following
 Affidavit of Self Adjudication;
 Deed of Extra-Judicial Settlement of the Estate, if the
estate has been A certified copy of the schedule of
partition and the order of the court approving the
same within thirty (30) days after the promulgation
of such order, in case of judicial settlement;
 Court order if settled judicially; or Sworn Declaration
of all properties of the Estate
4. CPA Statement on the itemized assets of the decedent,
itemized deductions from gross estate and the amount
due if the gross value of the estate exceeds five million
pesos (₱ 5,000,000) for decedent’s death on or after
January 1, 2018 or two million pesos (₱2,000,000) for
decedent’s death from January 1, 1998 to December
31, 2017;
 5. Duly notarized Promissory Note for “Claims Against the
Estate” arising from Contract of Loan;
6. Accounting of the proceeds of loan contracted within
three (3) years prior to death of the decedent;
7. Proof of the claimed “Property Previously Taxed”;
8. Proof of the claimed “Transfer for Public Use”
Other Applicable Documents: One (1) original copy and one
(1) photocopy
 Certificate of Deposit/ Investment/ Indebtedness owned
by the decedent and the surviving spouse;
 Photocopy of Certificate of Registration of vehicles and
other proofs showing the correct value of the same;
 Proof of valuation of shares of stock at the time of
death:
 For shares of stocks not listed/not traded – Latest
Audited Financial Statement of the issuing
corporation with computation of the book value per
share;
 For shares of stocks listed/traded – Price index from
the PSE/latest FMV published in the newspaper at the
time of transaction;
 For club shares – Price published in newspapers on
the transaction date or nearest to the transaction
date
 Photocopy of certificate of stocks;
 Proof of valuation of other types of personal property;
 Proof of claimed tax credit;
 Special Power of Attorney (SPA), if the person
transacting/processing the transfer is not a party to the
transaction and/or Sworn Statement if one of the heirs
is designated as executor/administrator;
 Certification from the Philippine Consulate, or Apostille,
if DOAS and SPA were executed abroad);
 Certificate of Exemption/BIR Ruling issued by the
Commissioner of Internal Revenue or his authorized
representative, if claiming tax exemption;
 BIR-approved request for installment payment of Estate
tax due;
 BIR-approved request for partial disposition of Estate;
  Such other documents as may be required by
law/rulings/regulations/etc.

3.
No, the heirs could not avail of estate tax amnesty to
settle the estate taxes. Republic Act No. 11956 approved on
August 8, 2022 further extended the Estate Tax Amnesty
availment period to June 14, 2025. However, it also
expanded the coverage of decedents who may avail of the
Estate Tax Amnesty to those who passed away on or before
May 31, 2022. Here, Mr. X died on February 14, 2024,
therefore the heirs cannot avail of the tax amnesty because
their decedent passed away after the period prescribed by
the said law.

4.
The estate tax return of Mr. X is hereto attached, hereof.

Taxation Law Review

April 29, 2025
JDBAA
5:30-6:30 Tue & 5:30-7:30 Thurs

QUIZ 2 FINALS
ESTATE TAX

On 14 February 2024, Mr. X died intestate leaving

behind his wife, Ms. Z, and their five children. Four of
their children, A, B, C, D, are now married. Their last
child, E, has died but has a surviving heir, E’s child F.
Mr. X is a resident Filipino Citizen. He married Ms. Z
on 14 January 1980. He left the following properties:

1. A parcel of Agricultural land located at Diliman,

Quezon City, Metro Manila, containing an area of
1000sqm, which is particularly described in TCT
No. 0001 of the Registry of Deeds of Quezon City.
This is lot was purchased by Mr. X for
 PhP1,000,000.00 last 2003. The zonal value
appearing on the tax declaration at the time of
Mr. X’s death is PhP10,000,000.00 but the
assessed value as determined by the BIR is
PhP9,500,000.00
2. The agricultural lot contains a residential house
which is the primary residence of Mr. X. The
construction cost of the house is
PhP2,500,000.00. The assessed value at the time
of Mr. X’s death is PhP1,000,000.00 and the zonal
value is PhP1,500,000.00. At the time the return
is filed, the value of the residential house has
decreased by PhP20,000.00.
3. Mr. X holds 100,000 shares of Jollibee Foods
Corporation. At the time of his death, the closing
value of the shares is PhP5/share but he was able
to purchase them for only PhP3/share.
4. Joint bank account of Mr. X and Ms. Z had
500,000.00 at the time of Mr. X’s death.
5. Funeral expenses of PhP150,000 were incurred in
the wake of Mr. X.
6. Mr. X has unpaid obligations amounting to
PhP200,000.00.
7. Mr. X and Mr. Y purchased a 2022 Raize car for
PhP1,000,000.00 payable in 20 monthly
installments. As of Mr. X’s death, only 8
installments were paid. The car has an assessed
value of PhP800,000 as of the death of Mr. X.

The remaining parties decided to execute an extra-

judicial settlement of estate and distribute the
properties according to the division prescribed by the
civil code.

1. What is the last day to file the estate tax return.

Answer:

The last day to file the estate tax return for Mr. X would be
February 14, 2025, unless an extension to file is granted by
the Commissioner of Internal Revenue.
Under Section 90 (B) of the National Internal Revenue Code,
the estate tax return must be filed within one (1) year from
the date of death of the decedent. Also, under Section 90 (C)
of the same Code, the Commissioner shall have authority to
grant, in meritorious cases, a reasonable extension not
exceeding thirty (30) days for the filing of return.

In this case, Mr. X passed away on February 14, 2024.

Accordingly, the estate tax return must be filed on or before
February 14, 2025, which falls on a Friday. If, however, an
extension is granted by the Commissioner of Internal
Revenue due to a meritorious ground, the filing deadline is
extended by thirty (30) days from the original due date. This
would move the deadline to March 16, 2025, which falls on a
Sunday. Pursuant to tax rules, if the deadline falls on a
weekend or holiday, the filing may be done on the next
working day. Thus, the extended deadline would be on March
17, 2025, a Monday.

2. What are the documentary requirements for filing

and settlement of the estate tax return.
Answer:

The filing and settlement of the estate tax return must be

filed to the Bureau of Internal Revenue (BIR). The
documentary requirements for filing and settling the Estate
Tax Return in the Philippines based on the National Internal
Revenue Code (NIRC) of 1997, as amended by the TRAIN Law
(Republic Act No. 10963), and the Revenue Regulations (RR)
No. 12-2018 and RR No. 17-2021 issued by the BIR, found on
the Bureau of Internal Revenue Website
https://www.bir.gov.ph/estate-tax are the following:

For Real Properties

Mandatory Requirements:
1. TIN of decedent and heir/s as indicated in the duly
accomplished TIN Verification Slip
2. Certified true copy of the Death Certificate; (One (1)
original copy and two (2) photocopies)
 3. Certified true copy of Original/ Transfer/ Condominium
Certificate/s of Title (OCT/TCT/CCT); [One (1) original
copy and one (1) photocopy]
4. Certified true copy of the Tax Declaration of Real
Properties for land and improvement at the time of
death[One (1) original copy and one (1) photocopy]
5. Any of the following: [One (1) original copy and two (2)
photocopies]
a. Affidavit of Self Adjudication;
b. Deed of Extra-Judicial Settlement of the Estate, if the
estate has been settled extra judicially;
c. Court order if settled judicially; or
d. Sworn Declaration of all properties of the Estate
6. A certified copy of the schedule of partition and the
order of the court approving the same within thirty (30)
days after the promulgation of such order, in case of
judicial settlement. [One (1) original copy and one (1)
photocopy]
7. CPA Statement on the itemized assets of the decedent,
itemized deductions from gross estate and the amount
due if the gross value of the estate exceeds five million
pesos (₱ 5,000,000) for decedent’s death on or after
January 1, 2018 or two million pesos (₱ 2,000,000) for
decedent’s death from January 1, 1998 to December
31, 2017. [One (1) original copy and one (1) photocopy]
8. Certification of the Barangay Captain for the claimed
Family Home (If the family home is conjugal property
and does not exceed Php10 Million, the allowable
deduction is one-half (1/2) of the amount only); [One (1)
original copy and one (1) photocopy]
9. Duly notarized Promissory Note for "Claims Against the
Estate" arising from Contract of Loan; (One (1) original
copy and two (2) photocopies)
10. Accounting of the proceeds of loan contracted
within three (3) years prior to death of the decedent;
(One (1) original copy and two (2) photocopies)
11. Proof of the claimed "Property Previously Taxed";
(One (1) original copy and two (2) photocopies)
12. Proof of the claimed "Transfer for Public Use"; (One
(1) original copy and two (2) photocopies)
Other Applicable Documents:
1. Certificate of No Improvement issued by the Assessor's
Office, if the declared properties have no improvement.
[One (1) original copy and one (1) photocopy]
2. Proof of claimed tax credit; [One (1) original copy and
one (1) photocopy]
3. Special Power of Attorney (SPA), if the person
transacting/processing the transfer is not a party to the
transaction and/or Sworn Statement, if one of the heirs
is designated as executor/administrator; [One (1)
original copy and one (1) photocopy]
4. Certification from the Philippine Consulate or Apostille,
if DOAS and SPA were executed abroad; [One (1)
original copy and one (1) photocopy]
5. Location Plan/Vicinity map if zonal value cannot be
readily determined from the documents submitted;
[One (1) original copy and one (1) photocopy]
6. Certificate of Exemption/BIR Ruling issued by the
Commissioner of Internal Revenue or his authorized
representative, if claiming tax exemption; [One (1)
original copy and One (1) photocopy]
7. BIR-approved request for installment payment of Estate
tax due; [One (1) original copy and one (1) photocopy]
8. BIR-approved request for partial disposition of Estate;
[One (1) original copy and one (1) photocopy]
9. Such other documents as may be required by
law/rulings/regulations/etc. [One (1) original copy and
one (1) photocopy]

For Personal Properties

Mandatory Requirements:
1. TIN of decedent and heir/s; as indicated in the duly
accomplished TIN Verification Slip
2. Certified true copy of the Death Certificate; [One (1)
original copy and one (1) photocopy]
3. Any of the following: [One (1) original copy and two (2)
photocopies]
a. Affidavit of Self Adjudication;
b. Deed of Extra-Judicial Settlement of the Estate, if the
estate has been settled extra judicially;
c. Court order if settled judicially; or
d. Sworn Declaration of all properties of the Estate
4. A certified copy of the schedule of partition and the
order of the court approving the same within thirty (30)
days after the promulgation of such order, in case of
judicial settlement; [One (1) original copy and one (1)
photocopy]
5. CPA Statement on the itemized assets of the decedent,
itemized deductions from gross estate and the amount
due if the gross value of the estate exceeds five million
pesos (₱ 5,000,000) for decedent’s death on or after
January 1, 2018 or two million pesos (₱ 2,000,000) for
decedent’s death from January 1, 1998 to December
31, 2017; [One (1) original copy and one (1) photocopy]
6. Duly notarized Promissory Note for "Claims Against the
Estate" arising from Contract of Loan; [One (1) original
copy and one (1) photocopy]
7. Accounting of the proceeds of loan contracted within
three (3) years prior to death of the decedent; [One (1)
original copy and one (1) photocopy]
8. Proof of the claimed "Property Previously Taxed"; [One
(1) original copy and one (1) photocopy]
9. Proof of the claimed "Transfer for Public Use" [One (1)
original copy and one (1) photocopy]

Other Applicable Documents:

1. Certificate of Deposit/ Investment/ Indebtedness owned
by the decedent and the surviving spouse; [One (1)
original copy and one (1) photocopy]
2. Photocopy of Certificate of Registration of vehicles and
other proofs showing the correct value of the same;
[One (1) original copy and one (1) photocopy]
3. Proof of valuation of shares of stock at the time of
death: [One (1) original copy and one (1) photocopy]
a. For shares of stocks not listed/not traded - Latest
Audited Financial Statement of the issuing corporation with
computation of the book value per share;
b. For shares of stocks listed/traded - Price index from
the PSE/latest FMV published in the newspaper at the time of
transaction;
c. For club shares - Price published in newspapers on the
transaction date or nearest to the transaction date
 4. Photocopy of certificate of stocks[One (1) original copy
and one (1) photocopy]
5. Proof of valuation of other types of personal property.
[One (1) original copy and one (1) photocopy]
6. Proof of claimed tax credit; [One (1) original copy and
one (1) photocopy]
7. Special Power of Attorney (SPA), if the person
transacting/processing the transfer is not a party to the
transaction and/or Sworn Statement if one of the heirs
is designated as executor/administrator; [One (1)
original copy and one (1) photocopy]
8. Certification from the Philippine Consulate, or Apostille,
if DOAS and SPA were executed abroad); [One (1)
original copy and one (1) photocopy]
9. Certificate of Exemption/BIR Ruling issued by the
Commissioner of Internal Revenue or his authorized
representative, if claiming tax exemption; [One (1)
original copy and one (1) photocopy]
10. BIR-approved request for installment payment of
Estate tax due; [One (1) original copy and one (1)
photocopy]
11. BIR-approved request for partial disposition of
Estate; [One (1) original copy and one (1) photocopy]
12. Such other documents as may be required by
law/rulings/regulations/etc. [One (1) original copy and
one (1) photocopy]

Processing and Issuance of Electronic Certificate

Authorizing Registration (eCAR) for Estate of the
Decedent
Mandatory Requirements:
1. Tax Returns filed with proof of payment such as:
Revenue Official Receipt (ROR); Duly Validated Bank
Deposit Slip with Certification from the Authorized
Agent Bank (AAB) which received the tax payment;
Payment Confirmation/Reference Number, if payment
made thru e-Payment channel; Copy of Tax Debit Memo
used as payment; Certificate of Tax Exemption; or Proof
of eFiling if no payment returns; [One (1) original copy
and One (1) photocopy]
 2. Proof of payment of Certification Fee and loose
Documentary Stamp Tax (all original copies)
3. Approved ONETT Computation Sheet (OCS) of Tax Due;
[One (1) original copy for validation only and One (1)
photocopy]
4. Transfer document such as Deed of Absolute Sale, Deed
of Assignment etc.; [One (1) original copy for validation
only and One (1) photocopy]
5. Any of the following applicable document, if the person
presenting is not the party who secured the OCS/
among the parties to the transaction: [One (1) original
copy and two (2) photocopies]
a. Notarized Special Power of Attorney (SPA), if representing
individual taxpayer/s;
b. Secretary's Certificate or Board Resolution, if representing
non-individual taxpayer/s;
c. Certification from the Philippine Consulate, or Apostille, if
DOAS and SPA were executed abroad

3. Could the remaining heirs avail of estate tax

amnesty to settle the estate taxes?

No, the remaining heirs cannot avail of the estate tax

amnesty to settle the estate taxes.

Under Republic Act No. 11213, as amended by R.A. Nos.

11569 and 11956 states that, the Estate Tax Amnesty shall
cover the estate of decedent/s who died on or before May
31, 2022, with or without assessments duly issued therefor,
whose Estate Taxes have remained unpaid or have accrued
as of May 31, 2022. The period of availment of the said tax
amnesty has been extended until June 14, 2025 per Revenue
Regulation No. 10 - 2023.

In this case, Mr. X died on February 14, 2024. The Estate Tax
Amnesty is only applicable to estate of decedents who died
on or before May 31 2022 Mr. X died beyond the period
provided by law covered by the estate tax amnesty. The law
stated above covers only those estates of individuals whose
death took place on or before May 31, 2022. Mr. X died on
February 14, 2024 which is outside the limit set by the law to
be covered by estate tax amnesty. Therefore, the remaining
heirs of Mr. X cannot avail of the estate tax amnesty to settle
the estate taxes.

4. Prepare an estate tax return, and avail all possible

deductions

FACTS, CONSIDERATIONS, & PRESUMPTIONS

1. Date of Marriage is January 14, 1980;
2. Date of Death is February 14, 2024;
3. Mr. X is a resident Filipino Citizen;
4. Old Civil Code of the Philippines applies to their
marriage. Under the Old Civil Code of the Philippines,
the presumed property regime during marriage was the
conjugal partnership of gains. This means that all
property acquired during the marriage, whether
registered in the name of one or both spouses, was
presumed to belong to the conjugal partnership unless
the contrary was proven.
5. Presumption: All property acquired during marriage is
presumed to be owned by both spouses or forms part of
the community property (conjugal property) unless
otherwise expressly mentioned in the problem;
6. The Agricultural lot was acquired during the time of
marriage, thus making it a conjugal property and the
value to be considered as Fair Market Value is the
₱10,000,000 assessed value which is higher than the
zonal value given.
7. The Family House or Improvements is valued at
₱1,000,000 at the time of death of Mr. X. Assessed
value was considered since there is no zonal value for
house or improvements.
8. The Agricultural lot and the Family House constitute the
Family Home;
9. The deduction of Family Home is limited to the lower of
the Family Home's fair market value (FMV) at the time
of the decedent’s death or ₱10,000,000.
10. The 100,000 shares of Jollibee Foods Corporation
at ₱5.00 per share is equivalent to ₱500,000 and is
 presumed to be acquired during the marriage and forms
the community property (conjugal property) of Mr. X
and Ms. Z.
11. Joint Bank account with ₱500,000 at the time of
Mr. X's death forms community property (conjugal
property).
12. Funeral expenses was removed as allowable
deductions to the estate of a citizen resident under the
TRAIN Law.
13. Mr. X's unpaid obligation of ₱200,000 forms part of
the community property (conjugal property) since it is
not expressly stated as an exclusive obligation.
14. 2022 Raize car is co-owned by Mr. X with Mr. Y,
thus, half the value of ₱800,000 which is ₱400,000 shall
form the community property of Mr. X and Ms. Z, since
it is presumed that all property acquired during the
marriage, forms the community property. Further, the
share for the unpaid obligation shall follow the
classification of the property which is conjugal.
15. Standard Deduction for Resident Filipino Citizen is
₱5,000,000.

II. Case Digest

LIGHT RAIL TRANSIT AUTHORITY vs. CITY OF PASAY,

REPRESENTED BY THE CITY TREASURER AND THE CITY
ASSESSOR
 G.R. No. 211299, June 28, 2022

HERNANDO, J.:

FACTS:

The City of Pasay assessed the Light Rail Transit

Authority (LRTA) for real estate taxes on various LRTA
properties, including lands, buildings, and transit systems.
Would-be tax payments were neglected by LRTA despite
admission of liability and appeals for installment payments.
Repeated demands led to a notice of delinquency and
issuance of warrants of levy by the city. Contesting these
actions, LRTA filed a petition for certiorari, prohibition, and
mandamus, invoking the 2006 Manila International Airport
Authority (MIAA) case that exempted a similar government
entity from local taxes.
The Regional Trial Court (RTC) dismissed LRTA’s petition.
LRTA appealed to the Court of Appeals (CA), which upheld
the RTC decision, affirming LRTA’s taxable status and
procedural lapses. Responding to the CA, LRTA brought the
case to the Philippine Supreme Court, raising several legal
issues, particularly focusing on its status as an
instrumentality exempt from taxes and questioning the
requirement for administrative remedies.

ISSUE:
Whether or not LRTA is exempt from local taxation
based on its nature as a government instrumentality.

HELD:
Yes. The Supreme Court re-evaluated LRTA’s status
under the framework laid out by the 2006 MIAA case. It
reasoned that LRTA, although generating revenue through
public transport operations, was mainly a government
instrumentality per Section 2(10) of the Administrative Code
of 1987.

The court further held that LRTA’s operations have been

crucial for public transportation in Metro Manila, reflecting
wider efforts at improving urban transit systems nationwide.
The vital role of LRTA and its public utility functions
underscored the need to classify such entities appropriately
within the overarching government structure and tax
legislation. It reaffirmed the principles established in the
2006 MIAA case, ensuring clear legal categories for tax
purposes among various government entities. This
exemption was shaped by the instrumental nature of LRTA’s
operations and underlines the delineation between public
services provided by government instrumentalities and
profit-driven activities of GOCCs.