Supreme Court: Heirs of foreign deposit accounts exempted from estate tax | ABS-CBN
ADVERTISEMENT
Welcome, Kapamilya! We use cookies to improve your browsing experience. Continuing to use this site means you agree to our use of cookies. Tell me more!
Supreme Court: Heirs of foreign deposit accounts exempted from estate tax
Supreme Court: Heirs of foreign deposit accounts exempted from estate tax
.jpg)
The Supreme Court building in Padre Faura, Manila on August 24, 2022. George Calvelo, ABS-CBN News
The Supreme Court building in Padre Faura, Manila on August 24, 2022. George Calvelo, ABS-CBN NewsMANILA — The Supreme Court has ruled that heirs of foreign currency deposit accounts are exempted from paying estate tax under the Foreign Currency Deposit Act or Republic Act No. 6426.
MANILA — The Supreme Court has ruled that heirs of foreign currency deposit accounts are exempted from paying estate tax under the Foreign Currency Deposit Act or Republic Act No. 6426.
In a decision promulgated on October 9, 2024, the 1st Division upheld the claim for an estate tax refund of Maricel Romig, the heir of American national Charles Romig who resided in Puerto Galera, Oriental Mindoro.
In a decision promulgated on October 9, 2024, the 1st Division upheld the claim for an estate tax refund of Maricel Romig, the heir of American national Charles Romig who resided in Puerto Galera, Oriental Mindoro.
Charles passed away in 2011 without leaving a will and Maricel transferred the ownership of his properties to herself including a dollar deposit account with the Hong Kong Shanghai Banking Corporation Limited.
Charles passed away in 2011 without leaving a will and Maricel transferred the ownership of his properties to herself including a dollar deposit account with the Hong Kong Shanghai Banking Corporation Limited.
The court noted that Maricel initially excluded the dollar deposit account from the estate tax computation but later paid an additional P4.56 million.
The court noted that Maricel initially excluded the dollar deposit account from the estate tax computation but later paid an additional P4.56 million.
ADVERTISEMENT
Maricel then sought a refund as she argued that foreign currency deposit accounts are exempt from estate tax under the law.
Maricel then sought a refund as she argued that foreign currency deposit accounts are exempt from estate tax under the law.
The Bureau of Internal Revenue denied Maricel's claim but the Court of Appeals ruled in favor of Maricel.
The Bureau of Internal Revenue denied Maricel's claim but the Court of Appeals ruled in favor of Maricel.
The BIR then elevated the case to the Supreme Court.
The BIR then elevated the case to the Supreme Court.
Maricel stressed that the 1997 National Internal Revenue Code did not explicitly revoke the tax exemption provided in the law.
Maricel stressed that the 1997 National Internal Revenue Code did not explicitly revoke the tax exemption provided in the law.
“The court finds the argument of the estate meritorious,” the court said in the decision penned by Associate Justice Ramon Paul Hernando.
“The court finds the argument of the estate meritorious,” the court said in the decision penned by Associate Justice Ramon Paul Hernando.
The court emphasized that the dollar account is governed by the provisions of RA No. 6426 and is therefore exempted from any and all taxes, including estate tax.
The court emphasized that the dollar account is governed by the provisions of RA No. 6426 and is therefore exempted from any and all taxes, including estate tax.
“Hence the court upholds the CTA en banc that the estate has the right to recover the amount of P4,565,349.07 representing estate tax that it had erroneously paid to the government,” the court said.
“Hence the court upholds the CTA en banc that the estate has the right to recover the amount of P4,565,349.07 representing estate tax that it had erroneously paid to the government,” the court said.
MORE STORIES:
ADVERTISEMENT
ADVERTISEMENT
