Fifteenth Congress
First Regular Session

HOUSE BILL NO. ___

2931

Introduced by Rep. Godofredo V. Arquiza

EXPLANATORY NOTE

Estate Tax is a tax on the right of the deceased person to transmit
his/her estate to his/her lawful heirs and beneficiaries at the time of death
and on certain transfers, which are made by law as 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. 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.

The Bureau of Internal Revenue (BIR) the government’s main
revenue earner is obliged to ensure collections from estate taxes. A
measure to boost collections of estate taxes would be to institute an
exchange of information between the concerned government offices. An
immediate access to information on death will enhance the monitoring and
proper payment of the estate tax.

Data gathered from the National Statistics Office manifests that there
were 403,191 number of deaths in 2004; 415,271 in 2005; and 389,081 in
2006. However, based on BIR records, only 29,198 estate tax returns were
filed in 2007; 29,863 in 2008; and 26,811 in 2009. This statistics revealed a
very low number of estate tax returns filed. Collections amounted to P649.9
million in 2007, P854.9 million in 2008 and P876.8 million in 2009.

The statistics clearly shows that there is a large potential to increase the
number of estate tax returns filed, once these tax potentials are tapped.
This bill will greatly help increase tax return filing that can generate more
estate tax collection.

GODOFREDO V. ARQUIZA


Fifteenth Congress
First Regular Session

HOUSE BILLNO.__2931

Introduced by Rep. Godofredo V. Arquiza

AN ACT REQUIRING THE LOCAL CIVIL REGISTRY TO PROVIDE THE
BUREAU OF INTERNAL REVENUE CERTIFIED TRUE COPIES OF DEATH
RECORDS, PROVIDING PENALTIES FOR THE VIOLATION THEREOF

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

Section 1. Title. - This Act shall be known as the " Death Information
Exchange Act of 2010".

Section 2. Declaration of Policy. - \t is the declared policy that estate tax
shall be levied, assessed, collected and paid upon the transfer of the net
estate whether resident or nonresident of the Philippines, a tax based on
the value of such net estate. The value of the gross estate of the decedent
shall be determined by including the value at the time of his death of all
property, real or personal, tangible or intangible, wherever situated.

Pursuant to this declared policy, the Local Civil Registry shall comply
with or commit to the exchange of required information to the Bureau of
Internal Revenue through the provision of necessary Certified True Copies
of death in order to help combat estate tax evasion and avoidance and to
help address estate tax concerns that affect our national economy. The
government shall likewise adopt measures and procedures to enhance
cooperation of Government offices in the efficient collection and payment
of taxes.

Section 3. Provision of Certified True Copy of Death to Bureau of Internal
Revenue.- Provision of the Certified True Copies of Death shall be conducted
in the following manner:

(a)The Local Civil Registry shall forward the Certified True Copies of
Death within ten (10) days to the Bureau of Internal Revenue.

(b) If the Local Civil Registry is unable to obtain and provide Certified
True Copies of death within thirty (30) days from the actual death,
due to obstacles encountered in furnishing the copies , the Local Civil
Registry shall immediately inform the Bureau of Internal Revenue of
the same, explaining the nature of the obstacles encountered.


Section 4. Willful Refusal to Supply Information. - Any employee of the Local
Civil Registry within the purview of this Act who, being required in writing
by this Act, willfully, refuses to supply the required Certified True Copies of
Death shall be subject to the following disciplinary actions

Any employee of the Local Civil Registry who, after the enactment of this
act, has been found to have violated the provisions of Section one of this Act
or has unreasonable delayed the giving of certified true copies of death to
authorized employee of the Bureau of Internal Revenue shall be subject to
the following disciplinary actions:

(a) suspension from office for a period not exceeding ninety (90)
days upon finding of guilt for the first time;

(b) suspension from office for not less than ninety-one (91) days and
not more than six (6) months upon finding of guilt for the second
time; and

(c) removal from office upon finding of guilt for the third time.

Section 5. Obligation to Maintain Confidentiality of Information Received. -
Any information on the certified true copies of death received by the
Bureau of Internal Revenue shall be treated by the Bureau of Internal
Revenue as absolutely confidential in nature in the same manner as
information obtained by the Local Civil Registry under its laws and shall be
disclosed only to persons or authorities, including courts and
administrative bodies, involves in the assessment and collection of estate
taxes.

Section 6. Separability Clause. -If any provision of this Act is declared
invalid or unconstitutional, other provisions hereof which are not affected
thereby shall continue to be in full force and effect.

Section 7. Repealing Clause. - All laws, presidential decrees, executive
orders, rules and regulations, other issuances or parts thereof which are
inconsistent with or contrary to this Act are hereby repealed or modified
accordingly.

Section 8, Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in at least two (2) newspapers
of general circulation.

Approved,

GODOFREDO V. ARQUIZA