As Filipinos remember their departed loved ones, the taxman is watching.
The Bureau of Internal Revenue (BIR), under pressure to increase its collections, is aiming to collect more taxes from heirs of people who die, particularly the rich.
BIR Commissioner Kim Henares has told a congressional hearing that her agency is targeting families of the dead for more estate and donor’s taxes.
She said they are monitoring people who die through the National Statistics Office (NSO) and the obituary and society pages of newspapers.
She said the BIR has arranged for the NSO to report to it people who file death certificates. Watch out, as they are running after the HEIRS for 20% penalty for every 6 months of NON payment of ESTATE TAX.
An Estate tax is a tax levied on an heir’s inherited portion of an estate if the value of the estate exceeds an exclusion limit set by law. The estate tax is mostly imposed on assets left to heirs, but it does not apply to the transfer of assets to a surviving spouse. The right of spouses to leave any amount to one another is known as the “unlimited marital deduction.”
When the surviving spouse who inherited an estate dies, the beneficiaries may then owe estate taxes if the estate exceeds the exclusion limit. Because the estate tax can be quite high, careful estate planning is advisable.
People who are into serious stock investing throughout the years should consider getting an insurance to safeguard their wealth for their loved ones in case the inevitable happens.