Jyrah O. Vida
BSA II
Business Tax
The second semester in Taxation was a blast. Learned a lot of things, faced a lot of difficulties, a
lot of hardships, as well as a lot of learnings. One thing I am grateful for in learning business
taxation is that ut teaches me how taxation works, everytime I purchased something, I intend
to seek for the amount of tax that will be distrubuted. I get more conscious and curious. In
addition, the book of Transfer and Business Taxation taught me numerous learnings, specifically,
ownership and transfer taxes. When I was a kid, my grandma let me signed a certain document,
saying I can inherit her land when she dies and can take total control when I become 18, I didn't
understand the process at first, all I saw were just signing of papers. Now I understand why
there was an attorney, signing of documents, and testaments. The law on succession and estate
taxation also help me understanding my situation before. Estate tax is the tax on the right to
transmit propety at death on a certain transfers ehich are made by law the equivalent of
testamentary dispositions. It is not a tax on the property, transferor or transferee. It is an excise
tax or privilege tax and its object is to tax the shifting of economic benefits and enjoyment of
property from the dead to the living. When distribution of hereditary estate takes place, the
executor or judicial administrator has the task of making sure that the estate tax has been paid
before he delovers a distributive share to any part interested in the estate. In estate taxation,
the gross of citizens and residents include all their property wherever stiuated. This gross estate
is allowed deductions under the tax law; the difference called the net taxable estate is the basis
of the estate tax to be imposed. Once the estate is closed and a final distribution of assets is
made to the beneficiaries, the executor transferd the asset to be held in trust to the trustee. A
trust is the legal relationship created when a grantor known as the trustor, transfers property
with the intention that it be managed by a trustee for the benefit of a beneficiary or
beneficiaries. Even though the decedent did not exercise his power to revoke, the transfer just
the same is includible in his gross estate.