Scope and Coverage
- Applies to private agricultural lands covered under CARP pursuant to PD 27, EO 228, EO 229, RA 6657 (as amended by RA 9700).
- Focuses on cases with pending compensation claims due to unpaid estate, real property, and related taxes, including interests and penalties.
Tax Responsibilities and Payment Conditions
- BIR responsible for estate tax assessment and collection including interests, penalties.
- LGUs to assess and collect real property tax and related levies with interests and penalties.
- Penalties and interests on CARP-covered lands cease from June 10, 1988, forward, but accrued penalties prior remain payable.
- For PD 27/EO 228 claims, real property tax cut-off is October 21, 1972; for RA 6657/9700 claims, cut-off is the year title was transferred to the Republic.
Roles and Duties of Agencies
- DAR provides full landholding listings to BIR and LGU for tax computation.
- LBP deducts assessed taxes plus applicable charges from compensation upon heirs' signed undertaking.
- BIR and LGU must issue Certificates Authorizing Registration and Real Property Tax Clearance within five days after payment.
- Exceptions if just compensation cases are pending unless heirs submit written undertakings.
Key Definitions
- Administrator: Court appointee handling estate without valid executor.
- Estate: All assets of deceased subject to probate or extrajudicial settlement.
- Estate Tax: Tax on transfer of deceased’s assets including trusts and insurance proceeds.
- Heir: Person inheriting property per law or will.
- Real Property Tax: Ad valorem tax based on property value.
- Successor-in-interest: Party succeeding the deceased's interest in property.
Operating Procedures
- DAR Provincial Office lists CARP lands with deceased owners with unpaid taxes and coordinates with LBP.
- BIR-RDO computes estate tax within 5 working days of documents receipt; initiates estate tax return filing and tax payment.
- LGUs validate properties, compute due real property taxes, and issue tax bills and clearance certificates within 5 working days after payment.
- LBP facilitates payment process upon receipt of heirs’ undertaking and releases land compensation after document registration and clearances.
- LRA processes registration of estate settlement deeds upon submission of complete documents.
Miscellaneous Provisions
- Repeals all conflicting prior administrative issuances.
- Takes effect 10 days after publication in two national newspapers and registration with ONAR.
This structured framework ensures prompt, coordinated tax collection and release of rightful land compensation claims for agrarian reform beneficiaries while protecting government revenue interests.