Bureau of Internal Revenue (BIR) Commissioner Joel Tan-Torres expect to collect P10.7 billion of estate tax with the launch of a project they call “Project RIP.”

Tan-Torres said this amount will be generated from some 250,000 tax return filings this year alone.

“From the statistics gathered, it clearly indicates that there is a large potential to increase the number of estate tax returns filed, once these tax potentials are tapped,” he said.

An estate tax based on BIR definition, is a tax on the right of the deceased person to “transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers which are made by law as equivalent to testamentary disposition.”

The BIR is concerned that the collection of estate tax has been neglected for years.

Based on data from the National Statistics Office, in 2004 there were 403,191 number of deaths, 415,271 in 2005 and 389,081 in 2006. But then based on BIR records, only 29,198 estate tax returns were filed in 2007; 29,863 in 2008; and 26,811 in 2009.

Tan-Torres said this is “a very low number” totaling P649.9 million in 2007, P854.9 million in 2008 and P876.8 million in 2009.

BIR’s Revenue Memorandum Order No.10-2010 issued recently will closely monitor potential estate tax cases such as establishing linkages with public and private institutions to access information about the decedent, communicate with the administrator or the decedent’s family the need to file the estate tax return and to conduct a public awareness campaign on Project RIP.

“If the decedent’s family failed to comply with their obligation in filing the said return and in paying the said tax, the (BIR will) undertake the necessary action to determine the estate tax obligation of the decedent and to protect the interest of the bureau,” the BIR said.

In 2007, the BIR attempted to claim the estimated P42-billion estate tax from the family of former president Ferdinand Marcos.

In 1991, the BIR issued the Marcos family the following tax assessments: Estate tax in the amount of P23.3 billion (from the estate of the late President Marcos); deficiency income tax against President Marcos and former First Lady Imelda Marcos worth P184.15 million for the tax years 1986-1987.

Two years later in 1993 the BIR sent notices of levy on real property owned by the Marcoses. Some lots were put under auction but since there were no bidders the properties were reverted back to the National Government.