I have long decided against writing on this topic as I thought then those who brought up this issue have realized their stupidity regarding their understanding of the Marcos estate tax.
But I was wrong. The other day, I ran across news quoting the same people calling on President Rodrigo Duterte to “do more” on the Marcos estate tax. Then, a group of actors and actresses identified with some political personalities but claiming their actions bore no political colors, launched a movement called Bayad Buwis Movement, an obvious dig at Partido Federal ng Pilipinas standard bearer, former Senator Ferdinand “Bongbong” Marcos, Jr.
So, what really is the score on the Marcos state tax initially amounting to P23 billion but which has ballooned to P203 billion including interests?
While critics of the Marcoses have been citing the case with G.R. No. 120880, they have, as lawyer Vic Rodriguez, “conveniently omitted to mention that the Bureau of Internal Revenue have issued a total of thirty Notices of Levy, resorted to public sale of levied properties and there being no bidder, lots subject of the public sale was declared forfeited in favor of the government in satisfaction of the estate tax due.”
Rodriguez furthers that no less than the Supreme Court has clarified that “in the case of notices of levy issued to satisfy the delinquent estate tax, ‘the delinquent taxpayer is the Estate of the decedent, and not necessarily, and exclusively Bongbong Marcos as heir of the deceased.”
A former schoolmate, Cristy Panogalinga, a certified public accountant, explains that “the estate tax is the burden and demandable from the estate (property owned by the deceased). The billion-estate tax is not the liability of BBM/heirs.”
“The delinquent taxpayer of the estate tax is the estate of Marcos Sr. Thus, if the estate tax is not paid, the government can take actions such as auctioning the estate or selling them. The reason why the heirs have interest is that they will end up paying the estate tax because failing to do so would mean they will not be able to inherit the estate,” Panogalinga says.
Now, if 30 properties have already been subjected to Notices of Levy, aren’t these more than enough to cover the estate tax liabilities as a property is only charged six percent of its worth for estate tax purposes?
But by seizing these 30 properties, the government, in effect, is collecting 100 percent of the properties’ worth, and not merely six percent it is entitled to for estate tax.
Inheritance tax and estate tax are two different things. Inheritance tax is what the beneficiary — the person who inherited the wealth — must pay when they receive it. Estate tax is the amount that’s taken out of someone’s estate upon his death.READ: https://www.nerdwallet.com/article/taxes/inheritance-tax
Lawyer Bruce Rivera further expounds on the subject saying “the estate which is the property left by Ferdinand E. Marcos pays for it. Not the heirs. Not Imelda, not Imee. Not BBM. Because before they can even have the properties transferred to their names, taxes have to be settled.”
Here’s the clincher though, Rivera notes that “when the state collects estate taxes on a dead man’s properties, it presupposes that the property subject of the tax is owned by the deceased.”
“Hence, if the state has assessed estate taxes, it is deemed an admission by the state that Marcos, the father, is the rightful owner,” Rivera stresses.
Hitting two birds with one stone. Following Rivera’s explanation, BBM not only has no liabilities to the government with regards to the estate tax of his late father’s properties, but also, the collection of the estate taxes against his late father’s properties extinguishes allegations that those properties are ill-gotten.
“Kayo ba, babayaran mo ang buwis sa isang bahay na sinasabi ng gobyerno ay hindi sa yo? Kung oo ang sagot mo, tanga ka lang,” Rivera says.
Unfortunately for these people, they’d rather be branded as stupid than stop on stupid allegations against the Marcoses. Stupidity for them has no limits. #
Breaking News | Manila Times | April 7, 2022
Enrile hits Carpio
Former Senate president Juan Ponce Enrile on Wednesday blasted retired Supreme Court Justice Antonio Carpio for saying that the family of presidential frontrunner Ferdinand “Bongbong” Marcos Jr. has the obligation to pay P203 billion estate tax.
Enrile urged Carpio to stop issuing “wrong and baseless” pronouncements.
“Alam ninyo, mga kababayan, sa pulitika ngayon, eh bago kayo maghusga, bago kayo maniwala, makinig kayo. Bago kayo maniwala, isipin muna ninyo kung totoo ‘yung sinasabi ng mga tao na ‘yan (It’s campaign season, before you criticize, before you believe, you should listen. Before you believe them, you should think first if what they are saying is true),” he said.
He said that even if Carpio was a former Supreme Court Justice, he would not understand the issue because he did not study or practice tax law.
The former senator reiterated that the so-called P203-billion estate tax demanded from the Marcoses is “pure nonsense.”
Enrile, a tax expert, graduated with a Masters of Law degree from Harvard School of Law with a specialization in international tax law.
“Ang taxpayer ng estate tax ay hindi ‘yung tagapagmana. Kalokohan ‘yung sinasabi nila na may utang si Bongbong Marcos at kanyang mga kapatid (The taxpayer of estate tax is not the heirs. They said that Bongbong Marcos and his siblings should pay, that’s nonsense),” he said.
“Ang gumawa ng issue ang gobyerno ni Cory, sinequester nila yung mga ari-arian ni Presidente Marcos, pagkatapos sisingilin nila ng estate tax, eh kalokohan ‘yun. Kaya dapat ‘yung legitimacy nung ari-arian ni Presidente Marcos, malinis ‘yun at ‘dun mo babayaran ‘yung utang niya kung may utang siya.”
(The one who made such issue was the government of Cory Aquino, they sequestered all the assets of former president [Ferdinand] Marcos, now they will ask his family to pay the estate tax, that’s nonsense. That’s why the legitimacy of all the assets of president Marcos should be cleared and that’s when he will pay his debt if he has any),” he added.
Carpio, in statement on Tuesday, said that under the Tax Code and the Revenue Regulations, “the co-administrators of the Marcos Estate, Imelda Marcos and Ferdinand Marcos Jr, as well as the other heirs of Marcos Sr., are expressly made liable to pay the estate tax in the original amount of P23.3 billion, which has now ballooned to over P203 billion.”
The retired magistrate said the high court issued a May 9, 1999 ruling that declared that the liability of the Marcos family in the estate tax is “final and executory.” (Truncated).