Published : Monday, October 17, 2011 00:00 [ manilatimes.net ]
Written by : KATRINA MENNEN A. VALDEZ
THE Bureau of Internal Revenue vowed to put an end to the “collusion” between banks and heirs of the deceased in eroding estate tax collection.
Deputy Commissioner Estela Sales, who heads the legal and inspection group, told reporters that the agency has intensified its review on the mode of transfer of properties to individuals, particularly whether such transfer is acquired through donation inter vivos or as an inheritance.
”We want to determine whether there are badges of fraud as to the transfer of properties which is being done to avoid payment of higher taxes, which is the estate tax,” Sales said.
“There are suspicions and if we are able to prove such fraud then the transfer can be nullified pending the payment of the proper tax due plus criminal liability on the part of the taxpayer and the bank itself,” she said.
Finance Secretary Cesar Purisima earlier said the estate tax is one of the most problematic areas as far as tax administration is concerned given the substantial number of people who die every year. In 2010, the government raised merely P1.34 billion in estate taxes out of the P822.6 billion in total taxes collected. In 2009, the BIR realized P915 million from the estate tax. Claro Ortiz, BIR head revenue executive assistant and overall coordinator for Run After Tax Evaders, said banks will be equally held criminally liable as that of the erring heir should the collusion be proven. ”Its a common secret that a number of banks actually allow the heirs of their [deceased] depositors to withdraw or transfer money despite knowledge that a depositor has indeed already expired,” he said.
”The BIR aims to put an end on that practice by going after not only the heirs but as well as the banks who consented the same,” he added.
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