Australia: My Experience With The Stock Market - Part 4

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Aside from stonks, I was also researching about ETFs (exchange traded funds). It's like mutual funds but no. Then I came across spaceship voyager  then raiz .  If you want to know more about the two, you can refer to this  article . Below is a summary: 📌Make sure you understand the product and the risks involved before investing.  Source: finder.com.au Update: I opened an account with Raiz and will do a review after a few months 😊 . If you want to get started, maybe you can use my referral link here  to have  $5 for me, $5 for you! Thanks!   

Estate Tax Amnesty Law

Last February 13, the Congress approved House Bill 4814 known as "Estate Tax Amnesty Law". This is an act granting amnesty in the payment of estate tax for taxable year 2016 and prior years, with or without assessments, that have remained unpaid as of December 31, 2016.
 
Key provisions of the act are:
  • Grants amnesty within two years (2) from the issuance of the implementing rules and regulations (IRR) at a rate of six percent (6%) of the decedent's net estate.
  • Provides immunities and privileges to amnesty beneficiaries including immunity from the payment of estate tax and from civil, criminal, or administrative penalties.
  • Exempts from coverage of the amnesty persons or cases that involve the jurisdiction of the Presidential Commission on Good Governance, pending cases involving unexplained or unlawfully acquired wealth under Anti-Graft and Corrupt Practices Act, pending cases filed in violation of the AMLA, pending cases involving criminal offenses under the NIRC code as amended of the Revised Penal Code and tax cases subject to final and executory judgment by the courts.
 
Any person who wants to avail shall file under BIR an estate tax amnesty return and pay the 6% of the decedent's net estate within 2 years from issuance.
 
My take: I thought this would be a great idea; however, it seems like the billionaires are at an advantage on this. How?
 
Let's look at the current estate tax table:
 
So if the decedent has a net estate of:
  • P200,000 - P12,000 (6%); exempt  (0%)
  • P500,000 - P30,000 (6%); P15,000 (3%)
  • P1 million - P60,000 (6%); P55,000 (5.5%)
  • P2 million - P120,000 (6%); P135,000 (6.75%)
  • P5 million - P300,000 (6%); P465,000 (9.3%)
  • P10 million - P600,000 (6%); P1.215 million (12.15%)
 
Looking at that, what can you say? House Bill 4815 if approved will set the estate tax to 6%. As to the allowable deductions, no changes are made.
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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