PROJECT JURISPRUDENCE

[1] Section 21. Corporation by estoppel. - All persons who assume to act as a corporation knowing it to be without authority to do so shall be liable as general partners for all debts, liabilities and damages incurred or arising as a result thereof. (Corporation Code) As to liability, those who assume to act as a corporation are liable as general partners. Thus, there is a partnership created among them and all obligations they have incurred shall be chargeable against them. [2] Section 21. Corporation by estoppel. - [W]hen any such ostensible corporation is sued on any transaction entered by it as a corporation or on any tort committed by it as such, it shall not be allowed to use as a defense its lack of corporate personality. (Corporation Code) In the Philippines, only those who have juridical personality can sue and be sued. When a pretended corporation is sued, lack of such personality cannot be raised as a defense especially against complainants who have relied in good faith on

Section 21 of the Corporation Code provides: "Corporation by estoppel. - All persons who assume to act as a corporation knowing it to be without authority to do so shall be liable as general partners for all debts, liabilities and damages incurred or arising as a result thereof: Provided, however, That when any such ostensible corporation is sued on any transaction entered by it as a corporation or on any tort committed by it as such, it shall not be allowed to use as a defense its lack of corporate personality. One who assumes an obligation to an ostensible corporation as such, cannot resist performance thereof on the ground that there was in fact no corporation." Estoppel may exist to bar the corporation, the persons composing it or a third person transacting with it from saying that there is, in fact, no such corporation. The test is "fraud" or "benefit". Where a group of persons misrepresent themselves as a corporation, they are subsequently estopp

The following are three requisites for a de facto corporation to exist: [1] The corporation has been formed under an apparently valid statute. This may refer to a corporation law under which the (de facto) corporation has been earlier creation, which has later been declared unconstitutional. This has similarity with the doctrine of operative fact; [2] There has been not only good faith but also colorable compliance with the requirements set by law; and [3] The (de facto) corporation has transacted business or has entered into transactions of business as if it were a corporation. Good faith and colorable compliance with corporation law requires that there has been a certificate of registration or incorporation issued by the appropriate agency. Lack of such issuance gives rise to a presumption of bad faith on the part of the association of persons claiming to be a corporation.

A de facto corporation  is a corporation where there exists a flaw in its incorporation. In other words, it has not complied with all the essential requisites imposed by law for the creation of a corporation de jure. Section 20 of the Corporation Code provides: "De facto corporations. - The due incorporation of any corporation claiming in good faith to be a corporation under this Code, and its right to exercise corporate powers, shall not be inquired into collaterally in any private suit to which such corporation may be a party. Such inquiry may be made by the Solicitor General in a quo warranto proceeding." The defect in the juridical personality of a corporation cannot be inquired into by private individuals, except via quo warranto proceedings brought on behalf of the State where the main action is to question the validity or existence of such juridical personality. Such defect in juridical personality also cannot be used as a defense to avoid claims.

A corporation de jure is one organized in accordance with the requirements of the law. It has complied with all the essential legal requisites for its existence as a corporation.

The following are instances of conclusive presumptions: (a) ESTOPPEL. Whenever a party has, by his own declaration, act, or omission, intentionally and deliberately led to another to believe a particular thing true, and to act upon such belief, he cannot, in any litigation arising out of such declaration, act or omission, be permitted to falsify it; and (b) TENANCY. The tenant is not permitted to deny the title of his landlord at the time of commencement of the relation of landlord and tenant between them. (Section 2 of Rule 131 of the Rules of Court)

Burden of proof is the duty of a party to present evidence on the facts in issue necessary to establish his claim or defense by the amount of evidence required by law. (Section 1 of Rule 131 of the Rules of Court)

In Criminal Cases: (1) The accused may prove his good moral character which is pertinent to the moral trait involved in the offense charged. (2) Unless in rebuttal, the prosecution may NOT prove his bad moral character which is pertinent to the moral trait involved in the offense charged. (3) The good or bad moral character of the offended party may be proved if it tends to establish in any reasonable degree the probability or improbability of the offense charged. In Civil Cases: Evidence of the moral character of a party in civil case is admissible only when pertinent to the issue of character involved in the case. (c) In the case provided for in Rule 132, Section 14, (Section 51 of Rule 130 of the Rules of Court)

The following are purposes for the imposition of estate tax: [1] To help in the diffusion of wealth and to avoid the concentration of wealth in fewer hands; [2] To generate additional revenue for the government so it can operate and provide the services due to the people; [3] To pay the government back for the protection given to the person of the decedent or testator and to his property; [4] To pay the government back for the economic prosperity that the decedent or testator enjoyed during his lifetime, enabling him to buy property; and [5] To allow the living to enjoy the property of the dead.

Requisites for the imposition of estate tax: [1] Death of a person, whether decedent or testator; [2] An person (an heir) who succeeds from the decedent or testator who is alive at the time of decedent or testator's death; and [3] This person who succeeds is qualified to inherit from the decedent or testator.

General rule. — The opinion of witness is NOT admissible, except as indicated in the following sections. Opinion of expert witness. — The opinion of a witness on a matter requiring special knowledge, skill, experience or training which he has been shown to posses, may be received in evidence. Opinion of ordinary witnesses. — The opinion of a witness for which proper basis is given, may be received in evidence regarding — (a) the identity of a person about whom he has adequate knowledge ; (b) A handwriting with which he has sufficient familiarity ; and (c) The mental sanity of a person with whom he is sufficiently acquainted . The witness may also testify on his impressions of the emotion, behavior, condition or appearance of a person. (Section 48, Section 49 and Section 50 of Rule 130 of the Rules of Court)

The testimony or deposition of a witness deceased or unable to testify, given in a former case or proceeding, judicial or administrative, involving the same parties and subject matter, may be given in evidence against the adverse party who had the OPPORTUNITY TO CROSS-EXAMINE  him. (Section 47 of Rule 130 of the Rules of Court)

A published treatise, periodical or pamphlet on a subject of history, law, science, or art is admissible as tending to prove the truth of a matter stated therein if the court takes judicial notice , or a witness expert in the subject testifies , that the writer of the statement in the treatise, periodical or pamphlet is recognized in his profession or calling as expert in the subject. (Section 46 of Rule 130 of the Rules of Court)

Evidence of statements of matters of interest to persons engaged in an occupation contained in a list, register, periodical, or other published compilation is admissible as tending to prove the truth of any relevant matter so stated if that compilation is published FOR USE by persons engaged in that occupation and is generally used and relied upon by them therein. (Section 45 of Rule 130 of the Rules of Court)

Entries in official records made in the performance of his duty by a public officer of the Philippines, or by a person in the performance of a duty specially enjoined by law, are PRIMA FACIE evidence of the facts therein stated. (Section 44 of Rule 130 of the Rules of Court)

Entries made at, or near the time of transactions to which they refer, by a person deceased, or unable to testify, who was in a position to know the facts therein stated, may be received as PRIMA FACIE  evidence, if such person made the entries in his professional capacity or in the performance of duty and in the ordinary or regular course of business or duty. (Section 43 of Rule 130 of the Rules of Court)

Statements made by a person while a starting occurrence is taking place or immediately prior or subsequent thereto with respect to the circumstances thereof, may be given in evidence as part of res gestae. So, also, statements accompanying an equivocal act material to the issue, and giving it a legal significance, may be received as part of the res gestae. (Section 42 of Rule 130 of the Rules of Court)

Common reputation existing previous to the controversy, respecting facts of public or general interest more than THIRTY YEARS OLD , or respecting marriage or moral character, may be given in evidence. Monuments and inscriptions in public places may be received as evidence of common reputation. (Section 41 of Rule 130 of the Rules of Court)

The reputation or tradition existing in a family previous to the controversy, in respect to the pedigree of any one of its members, may be received in evidence if the witness testifying thereon be also a member of the family , either by consanguinity or affinity. Entries in family bibles or other family books or charts, engravings on rings, family portraits and the like, may be received as evidence of pedigree. (Section 40 of Rule 130 of the Rules of Court)

The act or declaration of a person deceased, or unable to testify, in respect to the pedigree of another person related to him by birth or marriage, may be received in evidence where it occurred before the controversy, and the relationship between the two persons is shown by evidence other than such act or declaration. The word "pedigree" includes relationship, family genealogy, birth, marriage, death, the dates when and the places where these fast occurred, and the names of the relatives. It embraces also facts of family history intimately connected with pedigree. (Section 39 of Rule 130)

There shall NOT  be transferred to any new owner in the books of any corporation, sociedad anonima, partnership, business, or industry organized or established in the Philippines any share, obligation, bond or right by way of gift inter vivos or mortis causa, legacy or inheritance, UNLESS  an eCAR is issued by the Commissioner or his duly authorized representative. If a bank has knowledge of the death of a person, who maintained a bank deposit account alone, or jointly with another, it shall allow the withdrawal from the said deposit account, subject to a final withholding tax of six percent (6%) of the amount to be withdrawn, provided that the withdrawal shall only be made WITHIN ONE YEAR  from the date of the decedent. The bank is required to file the prescribed quarterly return on the final tax withheld on or before the last day of the month following the close of the quarter during which the withholding was made. The bank shall issue the corresponding BIR Form No. 2306 certifying

The estate tax imposed under the NIRC shall be paid by the executor or administrator BEFORE  the delivery of the distributive share in the inheritance to any heir or beneficiary. Where there are two or more executors or administrators, all of them are SEVERALLY  liable for the payment of the tax. The eCAR pertaining to such estate issued by the Commissioner or the Revenue District Officer (RDO) having jurisdiction over the estate, will serve as the authority to distribute the remaining/distributable properties/share in the inheritance to the heir or beneficiary. The executor or administrator of an estate has the primary obligation to pay the estate tax but the heir or beneficiary has SUBSIDIARY  liability for the payment of that portion of the estate which his distributive share bears to the value of the total net estate. The extent of his liability, however, shall in no case exceed the value of his share in the inheritance. (Section 9[9], Revenue Regulation No. 12-2018. January 25,

In case of a RESIDENT  decedent, the administrator or executor shall register the estate of the decedent and secure a new TIN therefor from the Revenue District Office where the decedent was DOMICILED  at the time of his death and shall file the estate tax return and pay the corresponding estate tax with the Accredited Agent Bank (AAB), Revenue District Officer or Revenue Collection Officer having jurisdiction on the place where the decedent was domiciled at the time of his death, whichever is applicable, following prevailing collection rules and procedures. In case of a NON-RESIDENT decedent, whether non-resident citizen or non-resident alien, with executor or administrator in the Philippines, the estate tax return shall be filed with and the TIN for the estate shall be secured from the Revenue District Office where such EXECUTOR OR ADMINISTRATOR is registered: Provided, however, that in case the executor or administrator is not registered, the estate tax return shall be filed wit

For purposes of these Regulations, the request for extension of time to file the return, extension of time to pay estate tax and payment by installment shall be filed with the Revenue District Officer (RDO) where the estate is required to secure its TIN and file the estate tax return. This request shall be approved by the Commissioner or his duly authorized representative. (Section 9[7], Revenue Regulation No. 12-2018. January 25, 2018)

In case of insufficiency of cash for the immediate payment of the total estate tax due, the estate may be allowed to pay the estate tax due through partial disposition of estate, including the corresponding terms and conditions: i. CONVEYANCE AND CASH RULE:  The disposition, for purposes of this option, shall refer to the conveyance of property, whether real, personal or intangible property, with the equivalent cash consideration; ii. ONE-YEAR RULE:  The estate tax return shall be filed within one year from the date of decedent’s death; iii. REQUEST AND APPROVAL:  The written request for the partial disposition of estate shall be approved by the BIR. The said request shall be filed, together with a notarized undertaking that the proceeds thereof shall be exclusively used for the payment of the total estate tax due; iv. ALLOCATION RULE:  The computed estate tax due shall be allocated in proportion to the value of each property; v. PROPORTIONATE PAYMENT:  The estate shall pay t

In case of insufficiency of cash for the immediate payment of the total estate tax due, the estate may be allowed to pay the estate tax due through CASH INSTALLMENT , including the corresponding terms and conditions: i. 2-YEAR RULE:  The cash installments shall be made within two (2) years from the date of filing of the estate tax return; ii. 1-YEAR RULE:  The estate tax return shall be filed within one year from the date of decedent’s death; iii. INDICATION AND APPROVAL OF FREQUENCY:  The frequency (i.e., monthly, quarterly, semi-annually or annually), deadline and amount of each installment shall be indicated in the estate tax return, subject to the prior approval by the BIR; iv. PENALTIES AND INTERESTS:  In case of lapse of two years without the payment of the entire tax due, the remaining balance thereof shall be due and demandable subject to the applicable penalties and interest reckoned from the prescribed deadline for filing the return and payment of the estate tax; an

When the Commissioner finds that the payment of the estate tax or of any part thereof would impose UNDUE HARDSHIP upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof NOT  to exceed five (5) years in case the estate is settled through the courts, or two (2) years in case the estate is settled extrajudicially. In such case, the amount in respect of which the extension is granted shall be paid on or before the date of the expiration of the period of the extension, and the running of the statute of limitations for deficiency assessment shall be suspended for the period of any such extension. Judicial settlement of estates is given a better treatment in this case (5-year extension). On the other hand, estate tax cases involving extrajudicial settlement are only given 2 years as extension. Where the request for extension is by reason of negligence, intentional disregard of rules and regulations, or fraud on the part of the taxpayer,

PAY AS YOU FILE: As a general rule, the estate tax imposed under the NIRC shall be paid at the time the return is filed by the executor, administrator or the heirs. (Section 9(4), Revenue Regulation No. 12-2018. January 25, 2018)

The ownership of movables prescribes through uninterrupted possession for four years in good faith. The ownership of personal property also prescribes through uninterrupted possession for eight years, without need of any other condition. With regard to the right of the owner to recover personal property lost or of which he has been illegally deprived, as well as with respect to movables acquired in a public sale, fair or market, or from a merchant’s store, the provisions of Articles 559 and 1505 of this Code shall be observed. (Art. 1132) . Movables possessed through a crime can never be acquired through prescription by the offender. (Art. 1133 of the Civil Code)

Here, the effects of possession is good faith as to the fruits and as to the expenses are discussed. AS TO THE FRUITS:  A possessor in good faith is entitled to the fruits received before the possession is legally interrupted. Natural and industrial fruits are considered received from the time they are gathered or severed. Civil fruits are deemed to accrue daily and belong to the possessor in good faith in that proportion. (Art. 544 of the Civil Code) If at the time the good faith ceases, there should be any natural or industrial fruits, the possessor shall have a right to a part of the expenses of cultivation, and to a part of the net harvest, both in proportion to the time of the possession. The charges shall be divided on the same basis by the two possessors. The owner of the thing may, should he so desires, give the possessor in good faith the right to finish the cultivation and gathering of the growing fruits, as an indemnity for his part of the expenses of cultivation a

The Commissioner or any Revenue Officer authorized by him pursuant to the NIRC shall have authority to grant, in meritorious cases, a reasonable extension, NOT  exceeding thirty (30) days, for filing the return. The application for the extension of time to file the estate tax return must be filed with the Revenue District Office (RDO) where the estate is required to secure its Taxpayer Identification Number (TIN) and file the tax returns of the estate, which RDO, likewise, has jurisdiction over the estate tax return required to be filed by any party as a result of the distribution of the assets and liabilities of the decedent. (Section 9(3), Revenue Regulation No. 12-2018. January 25, 2018)

Confederation is not enumerated as an aggravating circumstance under Article 14 of the Revised Penal Code. Like conspiracy which must be alleged in and not merely inferred from the information, confederation is but a mode of incurring criminal liability and may not be considered criminal in itself unless specifically provided by law. Neither may confederation be treated as an aggravating circumstance in the absence of any law defining or classifying it as such. (People vs. Baroy, G.R. Nos. 137520-22, 09 May 2002, 382 SCRA 56)

According to Article 1157 of the Civil Code, there are five (5) sources of obligations: law, contracts, quasi-contracts, delicts and quasi-delicts. Quasi-delict is a separate source of obligation under Article 1157. Art. 100. Every person criminally liable for a felony is also civilly liable. (Revised Penal Code) Art. 2177. Responsibility for fault or negligence under the preceding article is entirely separate and distinct from the civil liability arising from negligence under the Penal Code. But the plaintiff cannot recover damages twice for the same act or omission of the defendant. (Civil Code) Authorities support the proposition that a quasi-delict or "culpa aquiliana " is a separate legal institution under the Civil Code with a substantivity all its own, and individuality that is entirely apart and independent from delict or crime. (G.R. No. L-48006. July 8, 1942) Section 2, Rule 2, of the 1997 Rules of Civil Procedure defines cause of action as the act or omission

Foreign corporations are those formed, organized or existing under any laws other than those of the Philippines AND  whose law allows Filipino citizens and corporations to do business in its own country and state. The first requirement is existence in the eyes of a foreign law/laws. The second requirement is reciprocal treatment; this means that the Philippine Corporation Code expects and demands that the country where a foreign corporation is registered allow Filipinos and Filipino corporations to do business therein.

It can be noticed that the power of a corporation sole to purchase real property is not restricted although the power to sell or mortgage sometimes is, depending upon the rules, regulations, and discipline of the church concerned represented by the corporation sole. If corporations sole can purchase and sell real estate for its church, charitable, benevolent, or educational purposes, can they register said real properties? As provided by law, lands held in trust for specific purposes may be subject of registration, and the capacity of a corporation sole to register lands belonging to it is acknowledged, and title thereto may be issued in its name (Bishop of Nueva Segovia vs. Insular Government, 26 Phil. 300-1913). Indeed, it is absurd that while the corporations sole that might be in need of acquiring lands for the erection of temples where the faithful can pray, or schools and cemeteries which they are expressly authorized by law to acquire in connection with the propagation of t

A corporation sole is one formed for the purpose of administering and managing, as trustee, the affairs and property of any religious denomination, sect, or church. Such administration and management are by the chief archbishop, bishop, priest, rabbi, or other presiding elder of such religious denomination, sect or church. Section 110 of the Corporation Code of the Philippines provides: "Corporation sole. - For the purpose of administering and managing, as trustee, the affairs, property and temporalities of any religious denomination, sect or church, a corporation sole may be formed by the chief archbishop, bishop, priest, minister, rabbi or other presiding elder of such religious denomination, sect or church."

Section 106. Incorporation. - Educational corporations shall be governed by special laws and by the general provisions of this Code. Section 107. Pre-requisites to incorporation. - Except upon favorable recommendation of the Ministry of Education and Culture (not the Department of Education or DepEd) , the Securities and Exchange Commission shall not accept or approve the articles of incorporation and by-laws of any educational institution. Section 108. Board of trustees. - Trustees of educational institutions organized as non-stock corporations shall not be less than five (5) nor more than fifteen (15): Provided, however, That the number of trustees shall be in multiples of five (5). Unless otherwise provided in the articles of incorporation on the by-laws, the board of trustees of incorporated schools, colleges, or other institutions of learning shall, as soon as organized, so classify themselves that the term of office of one-fifth (1/5) of their number shall expire every y

Corporators are those who compose a corporation, whether as stockholders or as members. Incorporators are those stockholders or members mentioned in the articles of incorporation as originally forming and composing the corporation and who are signatories thereof. Corporators in a stock corporation are called stockholders or shareholders . Corporators in a non-stock corporation are called members . (Section 5 of the Corporation Code of the Philippines)

Corporations created by special laws or charters shall be governed primarily by the provisions of the special law or charter creating them or applicable to them, supplemented by the provisions of this Code, insofar as they are applicable. (Section 4 of the Corporation Code of the Philippines)

Corporations formed or organized under this Code may be stock or non-stock corporations. Corporations which have capital stock divided into shares and are authorized to distribute to the holders of such shares dividends or allotments of the surplus profits on the basis of the shares held are stock corporations. All other corporations are non-stock corporations. (Section 3 of the Corporation Code of the Philippines)

A public corporation is one formed or organized for the government of a portion of the State. Otherwise put, if a corporation has been created not for the purpose of governing a portion, part or subdivision of the State, it is not a public corporation. Another purpose of public corporations are the common good and the general welfare. The BSP is a public corporation or a government agency or instrumentality with juridical personality, which does not fall within the constitutional prohibition in Article XII, Section 16, notwithstanding the amendments to its charter. Not all corporations, which are not government owned or controlled, are ipso facto to be considered private corporations as there exists another distinct class of corporations or chartered institutions which are otherwise known as public corporations. These corporations are treated by law as agencies or instrumentalities of the government which are not subject to the tests of ownership or control and economic viability but

Here are four (4) basic differences between stock corporations and non-stock corporations. The first difference is purpose . Stock corporations are organized for profit to be enjoyed by stockholders. Non-stock corporations are organized for purposes other than profit. The second difference is distribution of profits. In stock corporations, profits are declared and they are distributed to stockholders. On the other hand, profits in non-stock corporations are not so distributed but used to further its own purposes. The third difference is composition . Stock corporations are composed of stockholders (also called shareholders or share owners) while non-stock corporations are composed of members. The fourth difference is the governing board . A stock corporation is governed by a board of directions (BOD) while a non-stock corporation is governed by what is generally called a board of trustees (BOT).

A stock corporation is one having capital stock divided into shares and having the authority (as reflected on its articles of incorporation) to distribute to owners/holders of such shares dividends of the surplus profit, this distribution being based on the number of shares a holder owns. All other corporations are non-stock corporations. In other words, a non-stock corporation is one where no part of the income is allowed to be distributed as dividends to its members, trustees, or officers, except when it comes to cases of dissolution governed by Section 87 of the Corporation Code. It is not organized for profit. If a stock corporation is governed by a board of directors (BOD), a non-stock corporation's governing body is usually a board of trustees (BOT). However, non-stock corporations may, through their articles of incorporation or their by-laws, designate their governing boards by any name other than as board of trustees.

Stock corporations are corporations which have capital stock divided into shares and have authority to distribute to the holders of such shares dividends or allotments of the surplus profits on the basis of shares held. Stock corporations are organized for profit. The governing body of a stock corporation is usually the board of directors (BOD). There are certain exceptions such as in the case of close corporations. A corporation is deemed to have the power to declare dividends as long as it has capital stock AND  there is no prohibition in its articles of incorporation or in its by-laws for it to declare and distribute dividends, such corporation is a stock corporation.

A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes, and properties expressly authorized by law or incident to its existence. This does not strictly refer to succession which is one of the modes of acquiring ownership of property. This simply means that the continued existence of a corporation is NOT  affected by any change in the members or stockholders or by any transfer of shares by a stockholder to a third person. This is different from the rule in partnership where any change (death, incapacity, etc). in the parties will dissolve the partnership by operation of law.

For purposes of determining the estate tax, the estate tax return shall be filed within one (1) year from the decedent’s death . The Court approving the project of partition shall furnish the Commissioner with a certified copy thereof and its order within thirty (30) days after promulgation of such order . (Proper presentation of family home and standard deduction as deductions from the gross estate. Section 8, Revenue Regulation No. 12-2018. January 25, 2018)

In all cases of transfers subject to the tax imposed herein, or regardless of the gross value of the estate, where the said estate consists of registered or registrable property such as real property, motor vehicle, shares of stock or other similar property for which a Certificate Authorizing Registration from the Bureau of Internal Revenue is required as a condition precedent for the transfer of ownership thereof in the name of the transferee, the executor, or the administrator, or any of the legal heirs, as the case may be, shall file a return under oath. Estate tax returns showing a gross value exceeding Five million pesos (P5,000,000) shall be supported with a statement duly certified to by a Certified Public Accountant containing the following: 1.1 Itemized assets of the decedent with their corresponding gross value at the time of his death, or in the case of a nonresident, not a citizen of the Philippines, of that part of his gross estate situated in the Philippines; 1.2

Illustrative example to properly present the manner of deducting family home, standard deduction, and other allowable deduction from the gross estate in accordance with the provisions of the NIRC. Decedent is married, the family home is conjugal property, more than P10,000,000: Conjugal Properties: Family Home P30,000,000 Real and personal properties 14,000,000 Exclusive Properties 5,000,000 Gross Estate: P49,000,000 Less: Ordinary Deductions Conjugal Ordinary Deductions (2,000,000) Net Conjugal Estate 42,000,000 Special Deductions Family Home (10,000,000) Standard Deduction (5,000,000) Total Deductions (17,000,000) Net Estate 32,000,000 Less: ½ Share of Surviving Spouse (21,000,000) Conjugal Property P44,000,000 Conjugal Deductions (2,000,000) Net Conjugal Estate P42,000,000 (P42,000,000/2) NET TAXABLE ESTATE P11,000,000 (Proper presentation of family home and standard deduction as deductions from the gross estate. Section 8, Revenue Regulation No. 12

Illustrative example to properly present the manner of deducting family home, standard deduction, and other allowable deduction from the gross estate in accordance with the provisions of the NIRC. Decedent is unmarried, family home more than P10,000,000: Real and personal properties P 14,000,00 Family Home 30,000,000 Gross Estate P44,000,000 Less: Deductions Ordinary Deductions Unpaid real estate tax (2,000,000) Special Deductions Family Home (10,000,000) Standard Deduction (5,000,000) Total Deductions (17,000,000) NET TAXABLE ESTATE P27,000,000 Although the family home is valued at P30 million, the maximum allowable deduction for the family home is P10million only. (Proper presentation of family home and standard deduction as deductions from the gross estate. Section 8, Revenue Regulation No. 12-2018. January 25, 2018)

The value of the net estate of a decedent who is a non-resident alien in the Philippines shall be determined by deducting from the value of that part of his gross estate which at the time of his death is situated in the Philippines the following items of deductions: [1] Standard deduction. – A deduction in the amount of Five Hundred Thousand Pesos (P500,000) shall be allowed without need of substantiation. The full amount of P500,000 shall be allowed as deduction for the benefit of the decedent. (This is different from the rule on citizens and resident aliens which prescribes a deduction of five million pesos [5,000,000].) [2] The proportion of the total losses and indebtedness which the value of such part bears to the value of his entire gross estate wherever situated . Losses and indebtedness shall include the following: [a] Claims against the estate. [b] Claims of the deceased against insolvent persons where the value of the interest therein is included in the value of th