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Podcast Unpacks Issues Relating to the Estate of Former Philippine President

What are the tax issues surrounding the estate of the late President Ferdinand E. Marcos? What remains to be collected by the Philippine government from the executors of said estate? The PPI Podcast “Death & Taxes” delves into the details in an online interview with two experts.

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After six administrations have led the country since the demise of the late Philippine President Marcos, questions pertaining to the taxes in relation to his estate remain.  Seeking clarification, journalist Ed Lingao takes up the matter with Former Bureau of Internal Revenue (BIR) Commissioner Kim Jacinto-Henares and Former Supreme Court (SC) Associate Justice Antonio T. Carpio in this podcast hosted by the Philippine Press Institute (PPI).  This episode addresses questions, such as: the basis for the determination of estate tax said to be for collection from the Marcoses and why it has yet to be collected.

Former Commissioner Henares pointed out the issues that the Commission’s continued efforts to collect said taxes as she was heading it faced and which still remain, including: the pending ratification of the Convention on Mutual Administrative Assistance in Tax Matters that was developed jointly by the Organisation for Economic Co-operation and Development (OECD) and the Council of Europe in 1988 and amended by Protocol in 2010; the Bank Secrecy Law (Republic Act No. 1405 otherwise known as An Act Prohibiting Disclosure of or Inquiry into Deposits with any Banking Institution); and, the difficulty in proving the component of “willfulness” in relation to Sections 254 and 255 of the Tax Reform Act of 1997 (Republic Act No. 8424).

Former Associate Justice Carpio, on the other hand, drew attention to the properties stated in the Sworn Statement of Assets, Liabilities and Net Worth of the widow of the former President and of those under the name of their son, Ferdinand Romualdez Marcos Jr., with the suggestion that these be investigated for legitimacy so that appropriate action in terms of the levying of any taxes, where applicable, may be done.

Queries from online viewers revolved around the properties of the late President Marcos that are within the purview of the PCGG and those outside the Philippines and are therefore considered currently outside its jurisdiction as well as that of the BIR.  Without divulging figures in the BIR demand letters, which were sent to the executors of the Marcos Estate in relation to the taxes due, due to the confidentiality provision in the Tax Code, and factoring in the interests, surcharges and penalties deemed to be applicable, a ‘conservative estimate’ of the total estate taxes due was pegged at around Two Hundred and Three Billion Philippine Pesos (PhP203,000,000,000.00).

The “quick timeline” presented showed that the BIR had created a Special Tax Audit Team on 27 June 1990, after late president’s passing on 28 September 1989.  Said Team declared its findings on 26 July 1991 and the BIR, in turn, served corresponding assessments in relation thereto to the executors of the Marcos Estate on five separated occasions.  It was pointed out that these assessments had not been protested administratively, whereby they were understood to have been accepted by said executors.  In 1993, the BIR began levying some identified parcels of Marcos land, some of which were eventually forfeited in favour of the Philippine government due to a failure of bidding.  In the same year, his son filed cases with the Court of Appeals to which the Supreme Court eventually responded with G.R. 120880 on 05 June 1997, ruling the tax assessments as “final and (u)nappealable.”

The discussion brought forth certain action points, better clarity and new insights on the subject.  The Supreme Court’s judgement on the tax case was confirmed final, executory and enforceable.  While citizens can object to the hitherto non-payment of said taxes by expressing dissatisfaction, they have no standing to file a case to collect taxes since such a criminal case can only be filed by the BIR.  The discourse concluded with the reminders that “compliance with tax obligations is important” since “taxes are the lifeblood of the nation.”  Furthermore, it was impressed upon the audience that “estate tax is mandatory and a legal obligation on the part of the executors.”

The Philippine Press Institute (PPI) expanded its reach with the launching of “The PPI Podcast” in January 2022.  This series of audio and audio-video broadcasts focuses mainly on current issues confronting the Philippine media and matters of public interest.  Published at least once a month, the episodes are available on the PPI’s Website, its video and podcast service platforms and its social media accounts as well as on the Media Library of the Hanns Seidel Foundation’s (HSF) Website and its social media pages.  The series is being developed by the PPI with the support of the HSF as part of their joint project, "Civic Journalism."

 

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