eCAR Claim Slip Transferee Name Requirements in the Philippines

Introduction

In the Philippine tax system, the Electronic Certificate Authorizing Registration (eCAR) plays a critical role in facilitating the transfer of properties, particularly in cases involving estate taxes, donor's taxes, and capital gains taxes. Issued by the Bureau of Internal Revenue (BIR), the eCAR serves as proof that the requisite taxes on the transfer of real properties, shares of stock, or other capital assets have been duly paid or settled. Without an eCAR, government agencies such as the Registry of Deeds (RD) or the Securities and Exchange Commission (SEC) cannot process the registration of the transfer, effectively halting the legal conveyance of ownership.

The "claim slip" in the context of eCAR refers to the document or form used by taxpayers or their representatives to request and claim the issuance of the eCAR from the BIR. This slip is typically generated or submitted after the filing of the relevant tax return (e.g., BIR Form No. 1706 for capital gains tax on real property or BIR Form No. 1801 for estate tax) and payment of taxes. It includes essential details about the transferor (seller, donor, or decedent), the transferee (buyer, donee, or heir), and the property involved.

A key aspect of the eCAR claim slip is the accurate and compliant specification of the transferee's name. Errors or inconsistencies in naming can lead to delays, rejections, or even legal complications in the transfer process. This article explores the legal framework, requirements, procedures, and best practices surrounding transferee name requirements on the eCAR claim slip, drawing from Philippine tax laws, BIR regulations, and administrative practices.

Legal Framework Governing eCAR and Transferee Name Requirements

The issuance of eCAR is governed primarily by the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act (RA) No. 10963 (TRAIN Law), RA No. 11534 (CREATE Law), and subsequent amendments. Specific provisions include:

Section 95 of the NIRC: Requires the issuance of a Certificate Authorizing Registration (CAR) for transfers subject to capital gains tax, donor's tax, or estate tax.
BIR Revenue Memorandum Order (RMO) No. 24-2013: Introduced the electronic version of the CAR (eCAR) to streamline processes and reduce fraud. This RMO mandates the use of the eCAR System for generating and verifying certificates.
RMO No. 15-2014 and RMO No. 34-2016: Provide guidelines on the enhanced eCAR System, including data encoding standards for taxpayer information, such as names.
Revenue Regulations (RR) No. 7-2019 and RR No. 12-2018: Detail procedures for estate and donor's tax filings, emphasizing the need for accurate identification of parties involved in transfers.
BIR Operations Memoranda and Circulars: Various issuances, such as Revenue Memorandum Circular (RMC) No. 46-2014, clarify naming conventions to align with civil registry standards under the Civil Code of the Philippines and RA No. 9048 (Clerical Error Law).

Under these regulations, the transferee's name on the eCAR claim slip must mirror official records to ensure traceability, prevent identity fraud, and comply with anti-money laundering laws (e.g., RA No. 9160, as amended).

Key Requirements for Transferee Names on the eCAR Claim Slip

The transferee's name must be encoded precisely on the claim slip to avoid discrepancies that could invalidate the eCAR or require amendments. Below are the comprehensive requirements:

1. Full and Accurate Name Specification

The transferee's name must be stated in full, without abbreviations, nicknames, or aliases, unless legally recognized (e.g., via court order under RA No. 9048).
For individuals: Use the complete name as it appears on the birth certificate, passport, or other primary identification documents (e.g., driver's license, SSS ID). This includes first name, middle name (or maiden name for married women), last name, and any suffixes (e.g., Jr., Sr., III).
For married women: The maiden name is preferred for tax purposes to maintain consistency with pre-marital records, but if the married name is used, it must be supported by a marriage certificate. BIR guidelines discourage the use of "Mrs." or "Ms." prefixes unless part of the legal name.
For minors or incapacitated persons: The name must include the guardian's or representative's details, with proof of authority (e.g., court-appointed guardianship under the Family Code).
For non-resident aliens or foreign nationals: Names must match passport details, including any transliterations, and include nationality and Taxpayer Identification Number (TIN) if applicable.

2. Consistency with Supporting Documents

The name on the claim slip must align exactly with:
- Deed of Sale, Donation, or Extrajudicial Settlement (for estate transfers).
- Tax return forms (e.g., BIR Form 1707 for donor's tax).
- Property titles (TCT/OCT for real property) or stock certificates.
Discrepancies trigger BIR verification, potentially requiring affidavits or corrections via the Civil Registrar under RA No. 10172 (for substantial errors like gender or date of birth).
In estate cases, all heirs' names must be listed if the property is undivided; partial transfers require specifying shares and names proportionally.

3. Special Rules for Corporate or Entity Transferees

For corporations: Use the exact registered name as per SEC Certificate of Incorporation, including acronyms if part of the name (e.g., "ABC Corporation" not "ABC Corp.").
For partnerships or associations: Include the full entity name from the partnership agreement or DTI/SEC registration.
For trusts or estates: The transferee name should reflect the trust deed or court order, with the trustee's name if acting in a representative capacity.
Foreign entities: Must provide apostilled or legalized documents (under the Apostille Convention) confirming the name, along with a Philippine TIN or EOPT (Executive Order on Philippine Taxation) registration.

4. Multiple Transferees

In cases of co-ownership or multiple heirs (common in estate settlements), each transferee's name must be listed separately on the claim slip, with corresponding shares or interests.
The eCAR System allows up to a certain number of transferees per certificate (typically limited by system fields); excess may require multiple eCARs.
Requirements include individual TINs and identification for each, to prevent commingling of tax liabilities.

5. Encoding and Formatting Standards

Names must be in uppercase letters for system compatibility, as per eCAR System protocols.
Special characters (e.g., ñ, accents) are allowed but must be accurately inputted to avoid encoding errors.
No punctuation in names unless legally part (e.g., hyphenated surnames under the Family Code).
TIN linkage: The transferee's name must be associated with a valid TIN; unregistered transferees must apply for one via BIR Form 1904.

6. Amendments and Corrections

If errors in the transferee name are discovered post-claim slip submission but pre-eCAR issuance, amendments can be requested at the RDO with supporting documents.
Post-issuance corrections require filing a request for eCAR re-issuance, paying administrative fees (e.g., PHP 100-500 depending on the error), and submitting an affidavit explaining the discrepancy.
Delays from name issues can extend processing time beyond the standard 5-10 working days for eCAR issuance.

Procedure for Preparing and Submitting the eCAR Claim Slip

File the Tax Return: Submit the appropriate BIR form (e.g., estate tax return within 1 year from death under RR No. 12-2018) and pay taxes via authorized banks or eFPS (Electronic Filing and Payment System).
Generate Claim Slip: After payment confirmation, access the eCAR System (via BIR's eServices portal or at the RDO) to input details, including transferee names. The system generates a claim slip with a reference number.
Verification and Submission: Present the claim slip, along with originals/copies of deeds, IDs, and proof of payment, to the BIR RDO where the property is located or the transferor is registered.
Issuance of eCAR: Upon approval, the eCAR is issued electronically, printable with a barcode for verification by the RD.
Claiming: The taxpayer or authorized representative (with SPA or LOA) claims the eCAR using the slip.

Common Issues and Best Practices

Common Pitfalls: Mismatched names due to typographical errors, use of nicknames, or failure to update names post-marriage/divorce. These can lead to RD rejection, requiring BIR re-processing.
Best Practices:
- Cross-verify names against all documents before submission.
- Use BIR's Taxpayer Registration Information Update for name changes.
- Engage a tax professional or lawyer for complex transfers (e.g., involving multiple heirs).
- Keep digital copies of all submissions for audit purposes.
Penalties for Non-Compliance: Under Section 251 of the NIRC, falsification or errors can result in fines (PHP 20,000-50,000) or imprisonment, plus surcharges (25-50%) and interest (12% per annum).

Importance and Implications

Accurate transferee name requirements on the eCAR claim slip ensure the integrity of property transfers, protect against fraudulent claims, and facilitate smooth government transactions. In a country where land disputes are common, compliance minimizes legal risks and supports efficient estate planning. Taxpayers are encouraged to stay updated with BIR issuances, as digital enhancements (e.g., full integration with LRA's LTMS) may introduce further refinements.

This framework underscores the BIR's push toward digitalization while upholding civil law principles on identity and ownership. For specific cases, consulting the nearest BIR RDO or a qualified legal expert is advisable.