Transfer and Business Taxation-Introduction - [PPTX Powerpoint] (2024)

TRANSFER AND BUSINESS TAXATION

TRANSFER AND BUSINESS TAXATIONBallada & Ballada

Presented by ATTY DON ADA DUPIO11. INTRODUCTION2MODES OFACQUIRING OWNERSHIPOccupation the property seized is without aknown owner.Intellectual Creation the composer owns his musicalcreation while the author owns his literary, legal, historical,scientific or other works.Donation an act of liberality whereby aperson disposes gratuitously of a thing or right in favor ofanother, who accepts it.3Succession the property, rights, andobligations to the extent of the value of the inheritance, of aperson are transmitted through his death to another by his will orby operation of law.Prescription one acquires ownership and otherreal rights through the lapse of time in the manner and under theconditions laid down by law. In the same way, rights and actionsare lost by prescription.4Some terms to remember.Property -embraces everything which is or may be the subject of ownership.The term includes not only ownership and possession but also theright of use and enjoyment for lawful purposes.Ownership is theexclusive right of possessing, enjoying, and disposing of aproperty.Owner the person in whom the ownership, dominion or titleof property is with.Transfer taxes are taxes imposed upon thegratuitous disposition of private property.Estate encompasses thetotality of assets and liabilities a decedent owns at the time ofhis death.

52. BASIC CONCEPTS OF SUCCESSION6Some terms to remember.Decedentis the general term applied to the person whose property istransmitted through succession, whether or not he/she left awill.Testator one who makes and executes a testament orwill.Executor is a person appointed by a testator to carry out thedirections and request in his will, and to dispose of the propertyaccording to his/her testamentary provisions after hisdeath.Administrator is a person appointed by the court toadminister the assets and liabilities of a decedent.7Some terms toremember.Will is an act whereby a person is permitted, with theformalities prescribed by law, to control to a certain degree thedisposition of his estate to take effect after his/her death.8A.Kinds of SuccessionTestamentary or testate is that which resultsfrom the designation of an heir, made a will executed in the formprescribed by law.Legal or intestate is that effected by operationof law since the decedent did not execute a will.Mixed is thateffected partly by will and partly by operation of law.9B. Elementsof SuccessionDeath of the decedent or testator.Inheritance.includes all property, rights and obligations of a person which arenot extinguished by his/her death.Successors. heirs, devisees andlegatees.Acceptance. it may be express or tacit.10C. TestamentarySuccession

Definition of termsWill is an act whereby a person is permitted,with the formalities prescribed by law, to control to a certaindegree the disposition of his estate to take effect after his/herdeath.Codicil is an instrument that amends the provision of awill.Probate of a will is the court procedure by which a will isproved to be valid or invalid.Holographic will is a will writtenentirely by the testator with his own hand and not witnessed orattested.

11Institution of an heir is an act by virtue of which a testatordesignates in his will the person or persons who are to succeed himin his property and transmissible rights and obligations.Legitimeis that part of the testators property which he cannot dispose ofbecause the law has reserved it for certain heirs who are,therefore, called compulsory heirs.12C.1. Capacity and intent tomake a will.All persons who are not expressly prohibited by law maymake a will, provided that:He/she is eighteen years of age;Of soundmind at the time of the execution;He/she has the intention to makea will.

May a married woman make a will without the consent of herhusband?What is the presumption on soundness of mind?13C.2.Capacity to succeed by Will or by Intestacy.Persons notincapacitated by law may succeed by will or ab intestate.A childalready conceived at the time of the death of the decedent iscapable of succeeding provided it be born later.Testamentarydispositions may be made to the State, provinces, municipalcorporations, private corporations, organizations, or associationsfor religious, scientific, cultural, educational, or charitablepurposes.

14C.3. Forms of WillsEvery Will must be:In writing and executedin a language or dialect known to the testator;Must be subscribedat the end by the testator or by some other persons in hispresence;Attested and subscribed by three or more crediblewitnesses in the presence of the testator and of one another.Aholographic will must be entirely written, dated, and signed by thehand of the testator himself.

15C.4. Revocation of WillsA will may be revoked by the testatorat any time before his/her death. Any waiver or restriction of thisright is void.Subsequent will which do not revoke the previous onesin an express manner, annul only such disposition in the priorwills as are inconsistent with or contrary to those contained inthe later wills.16C.5. Compulsory Heirs.Legitimate children anddescendants, with respect to their legitimate parents andascendants;In the absence of the foregoing, legitimate parents andascendants, with respect to their legitimate children anddescendants;The widow or widower;Acknowledged natural children, andnatural children by legal fiction;Other illegitimatechildren.17Table of legitimes for compulsory heirs.

18Table of legitimes for compulsory heirs.

19C.6. Disinheritance.Disinheritance can be effected onlythrough a will wherein the legal cause therefor shall bespecified.Sufficient causes for the disinheritance of children:Whena child or descendant has been found guilty of an attempt againstthe life of the testator, his or her own spouse, descendants orascendants;When a child or descendant has accused the testator of acrime for which the law prescribes imprisonment for six years ormore, if the accusation groundless;When a child or descendant hasbeen convicted of adultery or concubinage with the spouse of thetestator;20When a child or descendant by fraud, violence,intimidation or undue influence causes the testator to make a willor to change one already made;A refusal without justifiable causeto support the parent or ascendant who disinherits such child ordescendant;Maltreatment of the testator by word or deed, by thechild or descendant;When a child or descendant leads a dishonorableor disgraceful life;Conviction of a crime with the penalty of civilinterdiction.

21Causes for disinheriting a spouse:When the spouse has beenconvicted of an attempt against the life of the testator, his orher descendants or ascendants;When the spouse has accused thetestator of a crime punishable by imprisonment of six years ormore, and the accusation is false;When the spouse, by fraud,violence, intimidation or undue influence causes the testator tomake a will or to change it;When the spouse has given cause forlegal separation;When the spouse has given grounds for loss ofparental authority;Unjustifiable refusal to support the children orthe other spouse22D. Legal or Intestate Succession

Definition of termsConsanguinity is the relation of personsdescending from the same stock or common ancestor. It may be linealor collateral.Representation is a right created by fiction of law,by virtue of which the representative is raised to the place andthe degree of the person represented and acquires the rights whichthe latter would have if he were living or if he could haveinherited.When does legal or intestate succession takesplace?23D.1. Order of Intestate Succession.Descending direct line(legitimate children/descendants;Ascending direct line (legitimateparents/ascendants)Illegitimate children/descendants;Survivingspouse;Collateral relatives within the 5th degree;The State.24D.2.Table of intestate shares.

25GradingGrades are based on the accumulation of points.Pointsare based on:Class participation (effort)Completion ofassignments(daily work)Major projects, exams, and self-reflectionGrades are posted online and updated every Thursday.Our GradingScale90-100% = A80-89% = B70-79% = C60-69% = DBelow 60% = F

Grades are calculated on cumulative percentage and are roundedup whenever possible. 26My Pledge to StudentsI will trust you untilyou give me reason to do otherwise.I will respect you and work withyou to solve problems.I will promptly correct and offer feedback onyour work.I will work with you to meet learning goals.I will offerextra help and alternative assessments should you requirethem.27