By Farah G. Decano

 

BEFORE Torrens Title to real properties can be transferred through succession, donation, or sale, the government must first authorize the transfer. This requires the payment of taxes – estate, donor’s, or capital gains – to the Bureau of Internal Revenue (BIR).  Documentary stamp taxes are also required for some transactions.

Only after these funds are collected can the BIR issue the electronic Certificate of Authorization to Register (eCAR) without which the Registrar of Deeds cannot proceed to transfer any title from a transferor to a transferee.

A few years ago, the government recognized that heirs – children, grandchildren, and great-grandchildren – were unable to initiate the process of transfer of title to inherited properties unto themselves due to the almost insurmountable penalties and interests on estate taxes.

Consequently, Congress passed the Estate Tax Amnesty law in 2019, granting exemption from payment of these interests and penalties. The availment of the benefits of this law was extended in 2021 for two years, and then again in 2023 for another two years, with the final deadline falling on June 14, 2025.

Many, including myself, rushed to the BIR to avail themselves of the amnesty benefits at the last minute! Yes, it’s perhaps a cultural trait that Filipinos often take action only when time is running out.

The local BIR offices would swell with people, with lines forming as early as 6 AM. I recall one instance where I didn’t leave the BIR office until 10:30 PM because our estate, number 113, was called last.

I must commend the BIR for extending their office hours to accommodate most, if not all, taxpayers. While their process was orderly, the sheer number of people was unusual, making the foot traffic and the long wait understandable.

It was during these hectic times, though not necessarily while I was in line, that I heard whispers of fraudulent activities allegedly perpetrated by some dishonest public servants of the Registry of Deeds (RD).

In attempts to siphon off our country’s lifeblood, it was claimed that the “insider” would suggest to desperate taxpayers that they could “skip not only the long lines at the BIR but also the entire payment of transfer (estate, donor, and capital gains) taxes” in exchange for “lagay” (bribe).

How is this devious scheme supposedly executed?

Purportedly, the computerized system of the Land Registration Authority (LRA) cannot distinguish whether the eCAR fed into the system pertains to the specific taxpayer and their property. Hence, it was conceivably possible to use someone else’s eCAR to complete the transfer in order to generate a new title.

It would be in the best interest of the public and the government for the BIR, LRA, and the Commission on Audit (COA) to investigate whether such reports are true.

When I was a councilor, I summoned the Registrar of Deeds of Dagupan to explain some allegations of anomalies in her office. I am unsure whether these reported anomalies persisted after I brought her before the Sanggunian because I no longer heard of “whispers” again.

I hope our councilors and provincial board members will always remember to advocate for their constituents.

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