Question & AnswerQ&A (JOINT DAR-DOF-DOJ-LBP MEMORANDUM CIRCULAR NO. 18, S. 2013)
Its main purpose is to streamline the procedures in the release of unclaimed land compensation due to unpaid and outstanding estate and other related taxes on agricultural lands covered by the Comprehensive Agrarian Reform Program (CARP).
The Department of Agrarian Reform (DAR), Department of Finance (DOF) through the Bureau of Internal Revenue (BIR) and Bureau of Local Government Finance (BLGF), Department of Justice (DOJ) through the Land Registration Authority (LRA), and the Land Bank of the Philippines (LBP).
Private agricultural lands covered under the Comprehensive Agrarian Reform Program pursuant to PD 27, EO 228, EO 229, RA 6657 as amended by RA 9700, where heirs or successors-in-interest have pending land compensation claims due to non-payment of estate tax, real property tax, and related taxes.
The Bureau of Internal Revenue (BIR) is responsible for assessing and collecting estate tax, including applicable interest, penalties, and surcharges.
Effective June 10, 1988, all CARP-covered agricultural lands with accrued and delinquent real property taxes shall cease to be subject to penalties and interests. However, penalties and interests accrued before that date remain collectible and deductible from compensation claims.
The DAR must provide the BIR and LGUs with a complete listing of all landholdings covered to serve as reference for the computation of estate and real property tax liabilities.
The LBP deducts estate taxes and real property taxes, including applicable interests, penalties, and surcharges, from landowners' compensation claims based on a signed undertaking from heirs or successors-in-interest.
The policies on tax deduction shall not apply unless the heirs submit a notarized written undertaking accepting the BIR/LGU assessment for estate and property tax liabilities to be deducted from the land compensation claim.
An Administrator is the person appointed by the court to handle the estate of someone who died without a will, or where the named executor is unavailable or unwilling to serve.
Assessed Value is the fair market value of the real property multiplied by the assessment level; it is synonymous with the taxable value.
The RDO determines the estate tax liability within 5 working days, requires heirs to file estate tax returns, notifies heirs of additional document requirements, and issues the Certificate Authorizing Registration after payment.
The LGU must validate the list of properties, update the assessment roll, compute real property taxes, issue tax bills, collect payments, and issue a Real Property Tax Clearance Certificate after payment.
LBP advises heirs to submit an undertaking to pay taxes, prepares tax payments upon receipt of documents, remits payments to BIR and LGU, secures necessary certificates, and releases compensation upon receipt of complete documents.
The Land Registration Authority processes registration of judicial or extrajudicial deeds of settlement of estate with complete supporting documents after compliance with tax and documentary requirements.