Arneeious Posted July 27, 2008 Share Posted July 27, 2008 Thank you to everyone who replied. I told the situation to a friend of mine and when I told her that the interest rate of the loan is 5% per month (60% per annum), she said the interest rate is way too high and may even be illegal. Is there a particular rule in our tax laws that requires someone like the officemate to issue official receipts and not just handwritten receipts? Baka pwede ko gamitin yun as leverage to negotiate for a lower interest rate. Because of the high interest rate, palalim ng palalim ang debt ng tita ko. Quote Link to comment
azayco Posted July 28, 2008 Share Posted July 28, 2008 Sirs . . . May question po ako. My tita borrowed money (around P500K) from her officemate who has a sideline money-lending business aside from her office work. My tita has made partial payments but the officemate won't issue any type of receipt for the payments. Although it's just a sideline business, is the officemate still required to issue receipts for each payment? To add to the posts above, report the lender by sending an email to no-or-complaint@bir.gov.ph :evil: :thumbsupsmiley: Quote Link to comment
azayco Posted July 28, 2008 Share Posted July 28, 2008 (edited) Is there a particular rule in our tax laws that requires someone like the officemate to issue official receipts and not just handwritten receipts? Baka pwede ko gamitin yun as leverage to negotiate for a lower interest rate. Because of the high interest rate, palalim ng palalim ang debt ng tita ko. Tax law - RA 8424, as amended by RA 9337 (National Internal Revenue Code) "SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. - All persons subject to an internal revenue tax shall, for each sale and transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sale or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Provided, however, That where the receipt is issued to cover payment made as rentals, commissions, compensation or fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address of the purchaser, customer or client."The original of each receipt' or invoice shall be issued to the purchaser, customer or client at the time the transaction is effected, who, if engaged in business or in the exercise of profession, shall keep and preserve the same in his place of business for a period of three (3) years from the close of the taxable year in which such invoice or receipt was issued, while the duplicate shall be kept and preserved by the issuer, also in his place of business, for a like period."The Commissioner may, in meritorious cases, exempt any person subject to an internal revenue tax from compliance with the provisions of this Section." RA 3765 Truth in Lending Act "SECTION 4. Any creditor shall furnish to each person to whom credit is extended, prior to the consummation of the transaction, a clear statement in writing setting forth, to the extent applicable and in accordance with rules and regulations prescribed by the Board, the following information: (1) the cash price or delivered price of the property or service to be acquired; (2) the amounts, if any, to be credited as down payment and/or trade-in; (3) the difference between the amounts set forth under clauses (1) and (2); (4) the charges, individually itemized, which are paid or to be paid by such person in connection with the transaction but which are not incident to the extension of credit; (5) the total amount to be financed; (6) the finance charge expressed in terms of pesos and centavos; and (7) the percentage that the finance bears to the total amount to be financed expressed as a simple annual rate on the outstanding unpaid balance of the obligation." "SECTION 6. (a) Any creditor who in connection with any credit transaction fails to disclose to any person any information in violation of this Act or any regulation issued thereunder shall be liable to such person in the amount of P100 or in an amount equal to twice the finance charged required by such creditor in connection with such transaction, whichever is the greater, except that such liability shall not exceed P2,000 on any credit transaction. Action to recover such penalty may be brought by such person within one year from the date of the occurrence of the violation, in any court of competent jurisdiction. In any action under this subsection in which any person is entitled to a recovery, the creditor shall be liable for reasonable attorney's fees and court costs as determined by the court. (b ) Except as specified in subsection (a) of this section, nothing contained in this Act or any regulation contained in this Act or any regulation thereunder shall affect the validity or enforceability of any contract or transactions. (c ) Any person who wilfully violates any provision of this Act or any regulation issued thereunder shall be fined by not less than P1,00 or more than P5,000 or imprisonment for not less than 6 months, nor more than one year or both. X X X" Edited July 28, 2008 by azayco Quote Link to comment
Arneeious Posted July 28, 2008 Share Posted July 28, 2008 Thank you very much for the assistance. Magagamit ko eto para maka-negotiate ng mas reasonable interest rate. My tita heard from other officemates that her officemate often lends money to other people at very high rates but no one complains. Hopefully, this will change things, at least for my tita. Thank you again! Tax law - RA 8424, as amended by RA 9337 (National Internal Revenue Code) "SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. - All persons subject to an internal revenue tax shall, for each sale and transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sale or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Provided, however, That where the receipt is issued to cover payment made as rentals, commissions, compensation or fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address of the purchaser, customer or client."The original of each receipt' or invoice shall be issued to the purchaser, customer or client at the time the transaction is effected, who, if engaged in business or in the exercise of profession, shall keep and preserve the same in his place of business for a period of three (3) years from the close of the taxable year in which such invoice or receipt was issued, while the duplicate shall be kept and preserved by the issuer, also in his place of business, for a like period."The Commissioner may, in meritorious cases, exempt any person subject to an internal revenue tax from compliance with the provisions of this Section." ...... Quote Link to comment
pol22366 Posted July 29, 2008 Share Posted July 29, 2008 May I just add that your tita needs the written receipts of payments because under the statute of frauds all transactions which are more than 500 pesos should be in writing. Hence, verbal proof may not be enough to evidence your tita's partial payments and some sort of written proof, i.e. receipts must be shown. Quote Link to comment
west Posted July 29, 2008 Share Posted July 29, 2008 Mga pre,Need to buy a property in Batangas from a friend. Unfortunately, nasa parent's name nya ang title. Both are deceased with no will left. According to some advise, In order for him to sell the property to me, he needs to execute an Extra Judicial Transfer or Partition document to transfer the title to him first then execute a DOS to me. Is this correct?Does anyone know how much this will cost?Regards Quote Link to comment
dickyryu Posted July 29, 2008 Share Posted July 29, 2008 dahil anak mo naman yan, meron kang karapatan sa custody ng anak mo, lalo na na ikaw lang ang magulang na nandito at nangangalaga sa bata. Kung dadalhin mo yung bata, hindi yan kidnapping o anumang krimen. In other words, walang problema dun. Ang maaari mo lang maging problema ay ang travel clearance for a minor travelling abroad. Dati kasi pag isa lamang sa mga magulang ang kasama ng bata palabas ng bansa, kailangan ng affidavit of consent mula sa magulang na di kasama. Ngunit, subalit, datapwat, may narining ako na sa ilalim ng bagong guidelines ng DSWD at BI, di na ito kailangan. I-check mo sa DSWD kung kailangan pa ng travel clearance. Kung di na kailangan, paglabas mo ng bansa, kailangan kasabay mo na ang anak mo. Di na kasi mailalabas yung bata kung papahabulin mo lang sa iyo dahil mangangailangan ka ng travel clearance (minor travelling alone or w/ persons not his parents), na nangangailangan ng affidavit of consent ng ama at ina (na hindi mo naman makukuha sa asawa mo). Kung pepekehin mo naman yung pirma ng asawa mo sa affidavit krimen yun (me sabit ka). Sir maraming maraming salamat po ulit sa reply na ito... medyo kinakabahan parin ako dahil aalis na kami anytime soon haha Quote Link to comment
rocco69 Posted July 30, 2008 Share Posted July 30, 2008 May I just add that your tita needs the written receipts of payments because under the statute of frauds all transactions which are more than 500 pesos should be in writing. Hence, verbal proof may not be enough to evidence your tita's partial payments and some sort of written proof, i.e. receipts must be shown. Actually, hindi na pwedeng gamitin ang Statute of Frauds (Art. 1403[2d], Civil Code - batas na nagsasabi na kailangan ng kasulatan bilang patunay o upang ipatupad ang kontrata) bilang depensa dahil naisagawa na ang kontrata. Ayon sa Art. 1405, kapag naisagawa na ang kontrata (sa kaso ng tita mo, sa pamamagitan ng pagtanggap ng halagang pinautang sa kanya at ng pagbabayad ng hulugan dito) di na maaring sabihin na wala namang kasulatan bilang ebidensya na nagbayad na ang tita mo, pwede na siyang magharap ng mga testigo na magsasabi na nagbayad nga siya. Kaya nga lang, mas matibay at malakas na ebidensya pa rin ang nakasulat na resibo kesa sa salaysay ng testigo, lalo na kung ang gumawa ng resibo ay ang taong nagpautang. Hope this helps. Quote Link to comment
redax Posted July 30, 2008 Share Posted July 30, 2008 (edited) This is more complicated than the one in the real estate portion. This time 2 estate tax returns have to be filed since both parents passed away. After the first one passed away, the property was inherited by the heirs which includes the surviving spouse. The estate tax obligation on the death of the first parent has to be settled including penalties. As said in the other legal site, an extrajudicial settlement of a deceased person is necessary. All of the decedent's assets have to be included in the estate tax return. The same procedure has to be done for the parent who subsequently passed away. After getting the Certificate Authorizing Registration, you will have to go through the Register of Deeds where you have to comply with all the requirements. Then the title issued will reflect the ownership share of each heir. If they desire to partition the property they can execute an extrajucidial partition of real estate. They will then need to have the property surveyed so that it can be subdivided, which is necessary for them to acquire their own transfer certificate of titles to their own lots.If he is the only offspring then there will be no need for the extrajudicial partition as he would be the sole owner of the property. He can then just sell it to you after the title is transferred to his name. Edited July 30, 2008 by redax Quote Link to comment
pol22366 Posted July 30, 2008 Share Posted July 30, 2008 Actually, hindi na pwedeng gamitin ang Statute of Frauds (Art. 1403[2d], Civil Code - batas na nagsasabi na kailangan ng kasulatan bilang patunay o upang ipatupad ang kontrata) bilang depensa dahil naisagawa na ang kontrata. Ayon sa Art. 1405, kapag naisagawa na ang kontrata (sa kaso ng tita mo, sa pamamagitan ng pagtanggap ng halagang pinautang sa kanya at ng pagbabayad ng hulugan dito) di na maaring sabihin na wala namang kasulatan bilang ebidensya na nagbayad na ang tita mo, pwede na siyang magharap ng mga testigo na magsasabi na nagbayad nga siya. Kaya nga lang, mas matibay at malakas na ebidensya pa rin ang nakasulat na resibo kesa sa salaysay ng testigo, lalo na kung ang gumawa ng resibo ay ang taong nagpautang. Hope this helps. Good add Brother Rocco, we both agree that proof-wise the receipts are stronger evidence of the partial payment rather than mere testimonial evidence. The statute of fraud merely puts to fore that we need receipts. Quote Link to comment
west Posted July 31, 2008 Share Posted July 31, 2008 This is more complicated than the one in the real estate portion. This time 2 estate tax returns have to be filed since both parents passed away. After the first one passed away, the property was inherited by the heirs which includes the surviving spouse. The estate tax obligation on the death of the first parent has to be settled including penalties. As said in the other legal site, an extrajudicial settlement of a deceased person is necessary. All of the decedent's assets have to be included in the estate tax return. The same procedure has to be done for the parent who subsequently passed away. After getting the Certificate Authorizing Registration, you will have to go through the Register of Deeds where you have to comply with all the requirements. Then the title issued will reflect the ownership share of each heir. If they desire to partition the property they can execute an extrajucidial partition of real estate. They will then need to have the property surveyed so that it can be subdivided, which is necessary for them to acquire their own transfer certificate of titles to their own lots.If he is the only offspring then there will be no need for the extrajudicial partition as he would be the sole owner of the property. He can then just sell it to you after the title is transferred to his name. Pre Thank you sa reply. I also need to know average cost of such service before I talk business. At least I have an idea of how much I need to spend and how long will it takebefore the title isi transferred to me. Nabasa ko kasi dadaan pa daw ng court or kailangan ifile sa court yung mga documents. Salamat. Quote Link to comment
moed Posted July 31, 2008 Share Posted July 31, 2008 As always stated in this forum everytime the cost of services comes up, it would depend on the lawyer or other person willing to provide the services. There is no set fee. Regarding the time, it would depend on how fast you can file the returns with the BIR. The returns should include all the assets of the deceased so if he had a lot of properties the payment of the estate tax may be a problem as it could substantial. And remember, he has to pay for 2 extate tax returns.Regarding whether it goes to court, the only time this process will go to court is if the heirs cannot agree on how to partition the property, then the partition will be judicial and not extrajudicial. Quote Link to comment
azayco Posted July 31, 2008 Share Posted July 31, 2008 To add to the posts above, the following fees will be incurred: 1. Settlement of the estates Estate tax for the 2 generational transfers - rates from 0-20% depending on estate valuePenalties payable to the BIR for late filing - 25% of basic tax + 20% from the time estate tax became due (ouch ) Fees with the Registry of Deeds (approx. 0.5% of the fair market value of the asset) 2. Sale from your friend to you :thumbsupsmiley: Capital gains - 6% of fair market valueDST - 0.5% of fair valueLocal transfer tax - 0.5% to 0.75% depending on the LGU where the land is located Fees with the registry of deeds - 0.5% of fair market value and of course... Legal fees for preparing the documents for the settlement of the estate and for the sale of the land :evil: :boo: :ph34r: :zorro: Quote Link to comment
masi Posted July 31, 2008 Share Posted July 31, 2008 You also have to publish the Notice of Extra Judicial Settlement for 3 consecutive weeks in a newspaper of national circulation. Upon completion of this requirement, the publisher will issue a certification of pulblication. Cost of publication depends on which newspaper you will use. A lawyer may do this work for you including all the necessary documentation for the transfer. Quote Link to comment
ela_bat Posted August 1, 2008 Share Posted August 1, 2008 DST 1.5% in Deed of Sale not .5% Quote Link to comment
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