Business Taxation Given 1: Mang Kanor, a Canadian citizen, donated to his Filipina girlfriend, through a will, a P10-million worth shares of stocks of SM Corporation, a domestic company, and another P15-million worth of cash deposited in Bank of America. While they were living together, as residents, in Madagascar, Africa, Mang Kanor suffered heart attack and died. Canada and Madagascar grant non-resident Filipino citizens exemptions on intangible personal properties from transfer taxes. Q: The BIR asks if how much of the properties of the decedent will be subject to Philippines estate tax. Given 2: Don Fortunato, a widower, died in May, 2011. In his will, he left his estate of P100 million to his four children. He named his compadre, Don Epitacio, to be the administrator of the estate. When the BIR sent a demand letter to Don Epitacio for the payment of the estate tax, he refused to pay claiming that he did not benefit from the estate, he not being an heir. Forthwith, he resigned as administrator. Q: As a result of the resignation, who may be held liable for the payment of the estate tax? Given 3: During his lifetime, Mr. Sakitin obtained a loan amounting to P10 million from Bangko Uno for the purchase of a parcel of land located in Makati City, using such property as collateral for the loan. The loan was evidenced by a duly notarized promissory note. Subsequently, Mr. Sakitin died. At the time of his death, the unpaid balance of the loan amounted to P2 million. The heirs of Mr. Sakitin deducted the amount of P2 million from the gross estate, as part of the "Claims against the Estate." Such deduction was disallowed by the Bureau of Internal Revenue (BIR) Examiner, claiming that the mortgaged property was not included in the computation of the gross estate. Q: Do you agree with the BIR? Why