Shobe_CEO » BIR Ruling No. 060-81 (April 1, 1981)

BIR Ruling No. 060-81 (April 1, 1981)

June 5th, 2009

118-00 000-00 060-81

Santiago, Sison & Associates

106 Paseo de Roxas

Makati, Metro Manila

Attention : Atty. Priscilla R. Gonzales

Special Counsel

M a d a m :

This refers to your letter dated October 28, 1980, requesting a ruling on what is meant by the taxes imposed on joint account deposit under Section 118 of the Tax Code, and what should be reported thereon for estate tax purposes.

In reply thereto, please be informed that the taxes mentioned in Section 118 of the Tax Code refers to estate taxes only, as Presidential Decree No. 69, which took effect on January 1, 1973 had abolished the imposition of inheritance taxes.

Pursuant to Section 53(3)(1) of the Tax Code, interest on a deposit account maintained by two persons shall be deemed to be equally owned by them for income tax purposes. The same presumption may likewise apply for estate tax purposes. Accordingly, only half of the balance of the deposit should be reported for estate tax purposes. aisadc

Very truly yours,

RUBEN B. ANCHETA

Acting Commissioner

Entry Filed under: Taxation