Sale of Shares Philippines

Tax Deductions for Sale of Shares: Understanding Philippine Law

Question:
What are the tax deductions allowed for the sale of shares in the Philippines?

Answer:

What are the types of shares?

In the Philippine context, shares can either be classified as:

1. Listed shares - shares that are traded in the Philippine Stock Exchange.
2. Unlisted shares - shares not traded in the stock exchange.

What are the taxes imposed on the sale of shares?

1. Listed Shares:

   • A final tax of 0.6% of the gross selling price or gross value in money is imposed on the sale, barter, exchange, or other disposition of shares through the stock exchange.

2. Unlisted Shares:

   • Capital Gains Tax of 15% is imposed on the net capital gains.

What constitutes a deductible item?

For the sale of unlisted shares, the basis for the calculation of net capital gains are the "costs of acquisition" which may include:

1. Purchase Price - the actual amount paid to acquire the shares.
2. Broker's Fees - if any, although this is more common in listed shares.
3. Additional Costs - other costs directly attributable to the acquisition of the shares.

Are there allowable deductions on listed shares?

For listed shares, the final tax rate is applied to the "gross selling price or gross value in money," so no deductions are usually permitted.

How do these deductions impact the tax liability?

For unlisted shares, you can subtract your allowable deductions (costs of acquisition) from the selling price to determine the net capital gains. The tax of 15% is then applied to the net capital gains.

Is the holding period relevant for tax deductions?

No, the Philippine tax code does not currently differentiate tax rates or allowable deductions based on holding periods for the sale of shares.

What are the administrative requirements for claiming these deductions?

Documentation is essential. Keep accurate and verifiable records of all transactions and costs. These will be vital when declaring taxes to the Bureau of Internal Revenue (BIR).

What happens if I do not report the sale?

Failure to report the sale and pay the corresponding tax can result in penalties, including surcharges, interest, and compromise penalties.

Should I consult a tax advisor?

Given the complexities involved, consulting a tax advisor can provide personalized guidance, helping you understand your tax obligations and how to optimize your tax position.

Conclusion:
Understanding the tax implications when selling shares is critical. In the Philippines, the type of share (listed or unlisted) affects the tax rate and allowable deductions. Documentation is crucial for compliance and potential deductions, especially for unlisted shares. For accurate and tailored advice, it may be beneficial to consult a tax advisor.

Transferring Land Title Philippines

Transferring Land Title When the Parent is Still Alive: A Legal Guide in the Philippines

Question:
How can I transfer the title of a land property if my parent, the current owner, is still alive?

Answer:

What are the common ways to transfer land title in the Philippines?

1. Sale: The parent can sell the property to another party, which could be their child.
2. Donation: The parent may donate the land to anyone, commonly to a child or another relative.
3. Partition: In the case of co-ownership, the land may be divided among the owners through judicial or extrajudicial partition.

What are the required documents for transferring land title?

1. Original Land Title
2. Tax Declaration
3. Real Estate Tax Clearance
4. Deed of Absolute Sale, Deed of Donation, or Partition Agreement

What is the process for each method?

1. Sale:

   1. Both parties must execute a Deed of Absolute Sale.
   2. The seller, or by stipulation, the buyer, pays the capital gains tax and documentary stamp tax.
   3. The Registry of Deeds will issue a new title in the buyer's name.

2. Donation:

   1. Execute a Deed of Donation.
   2. The donor pays the donor's tax.
   3. A new title will be issued in the name of the donee by the Registry of Deeds.

3. Partition:

   1. Co-owners execute an agreement for partitioning the land.
   2. File a Petition for Partition if a judicial partition is required.
   3. Once partition is agreed or ordered, new titles will be issued.

How long does it usually take to transfer land titles?

The duration varies depending on the method and the specific circumstances. However, it generally takes several weeks to a few months to complete all the legal and bureaucratic steps.

Do I need a lawyer for the process?

While not mandatory, hiring a lawyer can facilitate the process, ensuring that all legal requirements are met and helping to avoid costly errors.

What about estate planning tools like a living will or trust?

In the Philippines, living wills and trusts are not as commonly used for transferring property as in some other jurisdictions. However, these can be viable options and should be discussed with an estate planning attorney.

What are the possible tax implications?

Different tax rates and exemptions may apply depending on the method chosen for the transfer. It is advisable to consult with a tax advisor or lawyer for detailed advice.

Can a parent transfer title to a minor?

Yes, but the law requires that the property be placed under guardianship until the minor reaches the age of majority.

Conclusion:
Transferring a land title while the parent is still alive can be done through various methods, each with its own set of requirements and procedures. Due to the complexities involved, it may be beneficial to consult with a lawyer to guide you through the process and ensure compliance with Philippine laws.

Adultery and concubinage in the Philippines

Filing a Criminal Case Against a Mistress: A Legal Guide in the Philippines

Question:
I am planning to file a criminal case against the mistress of my husband. What are my legal options under Philippine law?

Answer:

What laws govern adultery and concubinage in the Philippines?

The acts of adultery and concubinage are offenses against chastity under the Philippine Revised Penal Code. Adultery is committed by a wife and her paramour, while concubinage is committed by a husband and his mistress.

How is concubinage defined, and what must be proven?

Concubinage is committed by a husband who keeps a mistress in the conjugal dwelling, has sexual intercourse with her under scandalous circumstances, or cohabits with her in any other place. To prove this in court, you must show evidence that your husband committed any of these acts.

What are the penalties for concubinage?

The penalties for concubinage can vary but usually include imprisonment. The mistress may also be imprisoned, albeit for a lesser period than the offending spouse.

What are the steps in filing a case for concubinage?

1. Gather Evidence: Collect proof such as photographs, text messages, or testimonies.
2. Seek Legal Advice: Consult with a lawyer to discuss the strength of your case.
3. File the Complaint: Submit your complaint and evidence to the Office of the Prosecutor.
4. Preliminary Investigation: The prosecutor will evaluate if there's enough evidence to charge the accused.
5. Court Proceedings: If the case proceeds, you will need to participate in court hearings.

Can the mistress be charged separately?

In concubinage, the mistress is considered a co-accused and can be criminally charged alongside your husband.

Can I withdraw the case once filed?

Yes, but this usually absolves both parties of criminal liability. Note that this is not applicable if the prosecution has already presented evidence in court.

What are the possible defenses for the mistress?

Common defenses include lack of proof of the relationship, the accuser's consent to the relationship, or that the actions didn't meet the criteria for concubinage under the law.

Are there other legal options?

Aside from criminal charges, you may also explore civil options such as filing for legal separation, annulment, or a protection order under the Anti-Violence Against Women and Their Children Act of 2004 (RA 9262).

Can a charge for concubinage affect child custody and property division?

While a conviction for concubinage may not automatically influence child custody and property division, it can be considered in related cases and could have an indirect effect.

Conclusion:
Filing a criminal case for concubinage is a serious matter and should be undertaken with careful consideration and robust evidence. Consult with a lawyer to explore all your legal options and to guide you through the legal process.

Credit Card Scams in the Philippines

Handling Credit Card Scams in the Philippines: A Q&A Guide

Question:
I got scammed using my credit card. What should I do, and what are my legal rights in the Philippines?

Answer:

What is the first step if I suspect fraudulent activity on my credit card?

Immediately report the suspected fraudulent activity to your credit card provider. The sooner you report the activity, the higher the chance that further unauthorized transactions can be prevented. Your provider can freeze your account or issue a new card to avoid future unauthorized transactions.

Are there any laws that protect me against credit card fraud?

Yes, Republic Act No. 8484, also known as the "Access Devices Regulation Act of 1998," criminalizes credit card fraud and provides measures for the protection of consumers. If you are a victim, you may file a complaint under this law.

What is my liability?

Per the "Access Devices Regulation Act," the cardholder's liability for any unauthorized transaction is limited to Php 50,000, provided that the cardholder immediately reports the unauthorized transaction to the issuer.

What documents do I need to file a complaint?

You would usually need the following:

• Proof of Identification
• Credit card statement showing unauthorized transactions
• Police Report
• Affidavit of Loss or Unauthorized Transaction

Should I also file a police report?

Yes, filing a police report can serve as additional documentation to support your case. It is often required when reporting the matter to your credit card company or when filing a formal legal complaint.

What are the likely actions of the credit card company?

Upon notification, the credit card company will typically:

1. Freeze your current card to prevent further transactions.
2. Investigate the unauthorized transactions.
3. Issue a new card, if applicable.

Can I take legal action against the perpetrator?

If identified, you can file a case under Republic Act No. 8484. Penalties for violators under this Act include imprisonment and/or a fine.

What about my credit score?

If you report the fraud promptly, your credit card company will usually rectify the unauthorized transactions, and these should not affect your credit score in the long run.

Is there anything else I can do?

After resolving the immediate issue, take preventive measures such as updating passwords and being vigilant when sharing personal information. It's advisable to continuously monitor your account statements and immediately report any irregularities.

Conclusion:
Credit card scams can be distressing, but timely and appropriate action can mitigate the damages. Familiarize yourself with Republic Act No. 8484 and exercise vigilance to protect yourself from future scams.

Data Privacy Act (DPA) in the Philippines

Understanding the Data Privacy Act (DPA) in the Philippines: A Q&A Guide

Question:
Can you explain what the Data Privacy Act (DPA) is, its scope, and how it affects individuals and businesses in the Philippines?

Answer:

What is the Data Privacy Act (DPA)?

The Data Privacy Act of 2012, officially known as Republic Act No. 10173, is a law that aims to protect individual personal information stored in information and communications systems of both public and private sectors. It governs the collection, processing, storage, and disposal of personal data.

Who are the parties involved?

1. Data Subject: The individual whose personal information is being processed.
2. Data Controller: The entity that decides why and how personal data will be processed.
3. Data Processor: The entity that processes data on behalf of the data controller.

What is considered as 'Personal Data'?

Personal data refers to any information from which the identity of an individual is apparent or can be reasonably and directly ascertained. It also includes sensitive personal information such as marital status, age, financial information, and health records.

What are the rights of a Data Subject under DPA?

1. Right to Information: Must be informed that their data is being processed.
2. Right to Object: Can object to the processing of their data.
3. Right to Access: Can request access to their data.
4. Right to Correct: Can dispute any inaccuracies in their data.
5. Right to Erasure or Blocking: Can request the suspension, withdrawal, blocking, removal, or destruction of their data.
6. Right to Damages: Can claim damages for any breach of their data privacy rights.

How does DPA affect businesses?

1. Compliance: Organizations are mandated to comply with the DPA and its Implementing Rules and Regulations (IRR).
2. Data Protection Officer (DPO): Entities are required to appoint a Data Protection Officer responsible for ensuring compliance.
3. Penalties: Non-compliance can lead to penalties, including imprisonment and fines.

What are the responsibilities of Data Controllers and Processors?

1. Transparency: Must be transparent about how they collect, use, and store data.
2. Consent: Must obtain the consent of the data subject before processing.
3. Security Measures: Must implement reasonable and appropriate organizational, physical, and technical measures to protect personal data.

Is there an overseeing body?

Yes, the National Privacy Commission (NPC) is the agency responsible for enforcing and implementing the DPA.

Conclusion:
The Data Privacy Act is a crucial law that aims to safeguard the privacy and integrity of personal data in the Philippines. Non-compliance not only risks legal repercussions but can also severely tarnish an organization’s reputation. It is imperative for both individuals and businesses to understand their rights and responsibilities under this law.