Rates of Tax Due on the Transmission of the Estate of the Deceased Who Died in February, 1972

May 28, 1973 BIR RULING NO. 017-73 Rates of tax due on the transmission of the estate of the deceased who died in February, 1972 . The estate and inheritance taxes are generated by death and accrue at the time of death. They are governed by the laws in force at the time of death. (Knowlton vs. Moore, 178 41, 20 U.S. S. Ct. 747; Blackmore & Bancroft, Inheritance Taxes, p. 299; Seattle v. Kelleher, 195 U.S. 351, 49 L. ed. 232, 35 S. Ct. 44; Lorenzo v. Posadas, 64 Phil. 353) The law in force in February, 1972, the date of the death of wife is Chapter 1, Title III of the Tax Code, more specifically Sections 85 and 86 thereof which imposed an estate tax on the privilege of a decedent to transmit property at death based upon the entire net estate as a unit, regardless of the number of heirs and their relation to the decedent, and an inheritance tax on the privilege of the heirs to receive from the decedent their individual share in the net state after deducting the amount of the estate tax. In the light of the foregoing, this Office is of the opinion and so holds that in the computation or determination of the taxes due and payable on the transmission of the estate of the deceased wife, the estate and inheritance tax rates prescribed by Sections 85 and 86 of the Tax Code should be applied, and not only the estate tax rates imposed by Section 85 of the Tax Code as amended by Presidential Decree No. 69.