DOF appeals to rich to pay correct estate taxes


Posted at Feb 18 2013 09:41 AM | Updated as of Feb 18 2013 05:41 PM

MANILA, Philippines - Finance Secretary Cesar Purisima appeals to wealthy people to pay the correct estate taxes.

Purisima says government's revenue collection from estate tax averaged only P800 million to P1 billion annually, which he says is too low.

He adds his goal is to increase estate tax collection to P50 billion annually by the end of President Aquino's term.

Estate tax is a 20% tax imposed on a deceased person's assets, which are transferred to his lawful heirs at the time of death.

Meanwhile, Bureau of Internal Revenue commissioner Kim Henares says some heirs try to evade estate taxes by buying the property of their parents while they are still alive.

The BIR is now coordinating with the National Statistics Office to secure the death certificates of rich taxpayers. - ANC