Thursday, April 28, 2011

11 Possible Deductions from your Estate Tax

In computing estate tax, the amount can sometimes be so outrageous and irritatingly hefty it can nearly wipe off the total net amount the heirs will be receiving from the estate of a deceased.

Oh yes, I have definitely encountered widows who wished their husbands have done some estate planning. It is even worse when people have failed to settle their estate taxes for the longest time so that penalties and surcharges have gravely and enormously accrued. This is such a frustrating tax condition because considering the grief/state the heirs might still be in, the last thing they need is the government telling them:   “We are sorry for the death of your loved one, but this is how much you owe us and you still have to pay us”.

Sadly, there is no way getting around it because we have to submit to the power of the government to tax us, even if we are already 6 feet below the ground. Don’t they say that tax, aside from death, is the only thing that is certain on earth? Talk about ironies.


That is why as property owner and/or prospective property owner it won’t hurt to know some key information about estate taxation. Apart from estate planning, (this was already discussed in previous blog) below are some deductions one should consider or prepare for to write off as deductions from the estate of a deceased or decedent.
A)   If the decedent is a Citizen or a Resident, the following deductions are allowed: 

1.    Actual funeral expenses or in an amount equal to five percent (5%) of the gross estate, whichever is lower, but not to exceed Two hundred thousand pesos (P200,000);

2.      Judicial expenses of the testamentary or intestate proceedings;

3.   Claims against the estate subject to certain documentary requirements such as i) duly notarized debt instrument executed at the time of indebtedness; and ii) if the loan was contracted within three (3) years before the death of the decedent, a statement showing the disposition of the proceeds of the loan;

4.   Claims of the deceased against insolvent persons provided such value is included in the gross estate;

5.    Unpaid mortgages upon, or any indebtedness in respect to, property provided the value of decedent's interest therein, undiminished by such mortgage or indebtedness, is included in the value of the gross estate.

6.    Property Previously Taxed. – this deduction is otherwise called vanishing deductions and involves a property previously taxed (for either donor’s or estate tax) because of the death and/or transfer of prior decedent to the present decedent. The amount to be deducted, equal to percentage value of the property, depends on time frame of the death of prior decedent from the death of present decedent. For example, if prior decedent died within one year to the death of the present decedent, the deduction is equal to 100% of the value of the property. Such value to be deducted vanishes by percentage as the time frame of death increases. Below is the table of percentage value to be deducted:

 100% - 1 year from death
                       80%   - More than 1 year from death but not more than 2 years
                       60%   - More than 2 years from death but not more than 3 years
 40%  -  More than 3 years from death but not more than 4 years
 20%  -  More than 4 years from death but not more than 5 years              

7.    Transfers for Public Use. – All amounts given as bequests, legacies, devises or transfers to or for the use of the Government of the Republic of the Philippines, or any political subdivision thereof, for exclusively public purposes.

8.   Family Home. - An amount equivalent to the current fair market value of the decedent's family home: Provided, however, That if the said current fair market value exceeds One million pesos (P1,000,000), the excess shall be subject to estate tax. This deduction shall be supported by a Certificate by the barangay captain of the locality.

9.    Standard Deduction. - An amount equivalent to One million pesos (P1,000,000).

10. Medical Expenses. - Medical Expenses not exceeding Five Hundred Thousand Pesos (P500,000) incurred by the decedent within one (1) year prior to his death which shall be duly substantiated with receipts.

11.  Amount Received by Heirs Under Republic Act No. 4917. - Any amount received by the heirs from the decedent - employee as a consequence of the death of the decedent-employee in accordance with Republic Act No. 4917: Provided, That such amount is included in the gross estate of the decedent.

Watch out for my next blog for allowable deductions in case the decedent is a non-resident of the Philippines.

Five (5) Rules You Should Know About Estate Tax.

There are times people have not yet gone over their grief or pain for the loss of a loved one and already have to deal with the tedium of document processing in connection with the properties/estate left behind by the deceased.
Properties of a deceased person cannot be transferred to his heirs without paying the necessary estate tax. Payment of the estate tax is based on the principle that the estate of the deceased is one juridical personality and its right to transfer property to the heirs is a privilege and is thus subject to transfer tax.
A return or estate tax form (BIR Form No. 1801) needs to be filed with the Bureau of Internal Revenue for the payment of the estate tax. Hopefully, the following guidelines can aid the heirs in sorting out the tiresome process of estate taxation.
1.       When to file Estate Tax Return
        The return must be filed within six (6) months from the death of the decedent.  In meritorious cases, the Commissioner has authority to grant a reasonable extension not exceeding thirty (30) days for filing  the return.
2.       Where to file Estate Tax Return
        The return must be filed with the BIR district office or its representative having jurisdiction over the place of domicile of the decedent at the time of his death. If the decedent has no legal residence in the Philippines, the return shall be filed with the Office of the Commissioner (Revenue District Office No. 39, South Quezon City).
3.       Who shall file the Estate Tax Return
          This return must be filed in triplicate by the executor, or administrator, or any of the legal heirs of the decedent, whether resident or non-resident of the Philippines. If there is no executor or administrator appointed, qualified, and acting within the Philippines, then any person in actual or constructive possession of any property of the decedent.

          Basically, a return is required to be filed in all cases of transfers where estate tax is due. However, where no estate tax is due, a return is still required where the gross value of the estate exceeds two hundred thousand (P200,000) pesos; or where regardless of the gross value of the estate, it consists of registered or registrable property such as real property, motor vehicle, shares of stock or other similar property for which a clearance from the BIR is required (i.e. bank deposits) as a condition precedent for the transfer of ownership thereof in the name of the transferee; or

4.       When and Where to Pay Estate Tax

        Upon filing the return, the estate tax due is to be paid to the BIR authorized Agent Bank (AAB) where the return is filed. In places where there are no AABs, payment shall be made directly to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer.

         In certain cases, where the government finds that the payment on the due date of the estate tax or of any part thereof would impose undue hardship upon the estate or any of the heirs, it may allow extension of time for the payment of such tax or any part thereof not to exceed five (5) years, in case the estate is settled through the courts, or two (2) years in case the estate is settled extrajudicially.
               
5.       What docum

Wednesday, April 27, 2011

Who else wants to adopt?


Adoption in the Philippines can be very elaborate because the process involves social works and other professional services that are required in the placement of children in adoptive families. It comprises a lot of counselling and study for both the adoptive parent and child.

Before making a life-changing decision in your life you should consider the following information in connection with adoption.

There are three types of domestic adoption in the Philippines, namely:  i) Agency adoption; ii) Relative adoption and iii) Private adoption. Find out which is applicable to your circumstances.
Relative adoption is the easiest because this is where a biological parent merely makes a direct placement of his/her child to a relative of member of his/her extended family for adoption. On the other hand, Agency adoptions are those in which a licensed adoption agency finds and develops adoptive families for children who are voluntarily or involuntarily committed. The adoptive families go through the process from application to finalization of the child's adoption under the auspices of the Department of Social Welfare and Development or a licensed child-placing agency. Through this type of adoption, the legal rights of the child, the parents who gave birth to the child and the parents who will adopt the child, are all equally protected

While private or independent adoptions could either be a direct placement to a family known by the child's biological parents or through the use of an intermediary or a go-between. In an intermediary placement, an individual knows of parents who want to have their child adopted and arranges such placement to a family or someone who wants to adopt.

What are the components of domestic adoption?
This is the process involved in domestic adoption.
·         - Recruitment of potential adoptive families who may provide a home to a child;
·         - Development of adoptive applicants as parents to a particular child in need of a home;
·         - Selection of a family who can best contribute to the total development of a particular child;
·         - Preparation of the child and family prior to placement to insure acceptance and readiness for the new relationship;
·         - Supervision of trial custody for at least six months to facilitate the child's adjustment in the family prior to the completion of adoption;
·         - Preparation for removal of the child from the adoptive home if the placement disrupts while alternative plans are being worked out;
·         - Finalization of adoption and termination of service with issuance of the final decree of adoption and amended birth certificate;
·         - Organization of groups of adoptive parents as part of support system; and
·         - Post-legal adoption counselling when adoptive family and adoptee need further counselling related to information about adoptee's background and search for his/her biological parents.

Who may be adopted?
 The law on adoption says that the following may be adopted:
 1.      Any person below eighteen (18) years of age who has been voluntarily committed to the Department under Articles 154, 155 and 156 of P.D. No. 603 or judicially declared available for  adoption;
2.      The legitimate child of one spouse, by the other spouse;
3.      An illegitimate child, by a qualified adopter to raise the status of the former to that of legitimacy;
4.      A person of legal age regardless of civil status, if, prior to the adoption, said person has been consistently considered and treated by the adopters as their own child since minority;
5.      A child whose adoption has been previously rescinded; or
6.      A child whose biological or adoptive parents have died: Provided, That no proceedings shall be initiated within six (6) months from the time of death of said parents.
7.      A child not otherwise disqualified by law.

Who may adopt?

The following may adopt:
1.     Any Filipino citizen of legal age, in possession of full civil capacity and legal rights, of good moral character, has not been convicted of any crime involving moral turpitude; who is emotionally and psychologically capable of caring for children, at least sixteen (16) years older than the adoptee, and who is in a position to support and care for his children in keeping with the means of the family. The requirement of a 16-year difference between the age of the adopter and adoptee may be waived when the adopter is the biological parent of the adoptee or is the spouse of the adoptee’s parent;

2.    Any alien possessing the same qualifications as above-stated for Filipino nationals: Provided, That his country has diplomatic relations with the Republic of the Philippines, that he has been living in the Philippines for at least three (3) continuous years prior to the filing of the petition for adoption and maintains such residence until the adoption decree is entered, that he has been certified by his diplomatic or consular office or any appropriate government agency to have the legal capacity to adopt in his country, and that his government allows the adoptee to enter his country as his adopted child. Provided, further, That the requirements on residency and certification of the alien’s qualification to adopt in his country may be waived for the following:

(i) a former Filipino citizen who seeks to adopt a relative within the fourth (4th) degree of consanguinity or affinity; or

(ii) one who seeks to adopt the legitimate child of his Filipino spouse; or

(iii) one who is married to a Filipino citizen and seeks to adopt jointly with his spouse a relative within the fourth (4th) degree of consanguinity or affinity of the Filipino spouse.

3.    The guardian with respect to the ward after the termination of the guardianship and clearance of his financial accountabilities.

4.    Husband and wife shall jointly adopt, except in the following cases:

(i) if one spouse seeks to adopt the legitimate child of one spouse by the other spouse; or

(ii) if one spouse seeks to adopt his own illegitimate child: Provided, however, That the other spouse has signified his consent thereto; or

(iii) if the spouses are legally separated from each other.

5.            In case husband and wife jointly adopt or one spouse adopts the illegitimate child of the other, joint parental authority shall be exercised by the spouses.

What are the documentary requirements in Adoption?

The following documents shall be attached to the petition:

A. Birth, baptismal or foundling certificate, as the case may be, and school records showing the name, age and residence of the adoptee;

B. Affidavit of consent of the following:

1.The adoptee, if ten (10) years of age or over;

2. The biological parents of the child, if known, or the legal guardian, or the child-placement agency, child-caring agency, or the proper government instrumentality which has legal custody of the child;

3. The legitimate and adopted children of the adopter and of the adoptee, if any, who are ten (10) years of age or over;

4. The illegitimate children of the adopter living with him who are ten (10) years of age or over; and

5. The spouse, if any, of the adopter or adoptee.

C. Child study report on the adoptee and his biological parents;

D. If the petitioner is an alien, certification by his diplomatic or consular office or any appropriate government agency that he has the legal capacity to adopt in his country and that his government allows the adoptee to enter his country as his own adopted child unless exempted under Section 4(2);

E. Home study report on the adopters. If the adopter is an alien or residing abroad but qualified to adopt, the home study report by a foreign adoption agency duly accredited by the Inter-Country Adoption Board; and

F. Decree of annulment, nullity or legal separation of the adopter as well as that of the biological parents of the adoptee, if any.
So if you are considering adoption, the process can be a lot easier for you if you know what to documents to prepare and how to go about the adoption step by step. 

89 Possible Tax Deductions for Business Owners

Your accountant is good if he/she constantly teaches you to always think about various ways and means to save on taxes. And saving on taxes is either minimizing your taxable income or maximizing your deductions. To maximize your deductions, you should consider any and all personal expenses that may have a business purpose. In general, the Tax Code allows, as deduction from gross income, all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on or which are directly attributable to, the development, management, operation and/or conduct of the trade, business or exercise of a profession.
Thus, you may be able to convert some personal expenses to business expenses, as long as you have the proper business purpose for that expense. Note however that no business expense can be legitimately deducted without being substantiated with proper receipts and other adequate records and reconciled with the amount of the expense being deducted, and the direct connection or relation of the expense being deducted to the development, management, operation and/or conduct of the trade, business or profession of the taxpayer.
If you can document your expense, refer to this list of 89 possible deductions for business owners.

Association and membership dues
Advertising costs
Amortization
Auto expenses
Bad debts
Banking fees
Board meetings
Business travel
Capital Losses
Charitable contributions

Cleaning/janitorial services
Collection Expenses
Commissions to outside parties
Communication Expenses
Computers and technical supplies
Consulting fees
Continuing education
Conventions and trade shows
Costs of goods sold
Credit card annual fees

Dental Expense (with plan)
Depreciation
Discounts to customers
Education and training for employees
Entertainment for customers and clients
Equipment
Equipment repairs
Exhibits for publicity
Fire Insurance
Fire Loss

Franchise fees
Fringe Benefits paid to employees
Freight or shipping costs
Furniture or fixtures
Fire Insurance
Group insurance expense
Health insurance expense
Home office
Interest Expense
Internet hosting and services

Investment advice and fees
Laundry Allowance
Legal fees
License fees
Litigation expense
Losses due to theft, pilferage or embezzlement
Management fees
Materials
Maintenance
Meal allowance

Medical expenses (with plan)
Mortgage interest on business property
Moving/Freight expenses
Municipal/City Licenses
Newspapers and magazines
Office supplies and expenses
Pag-ibig contributions
Parking and toll fees
Pension trusts or plans
Per diems

Philhealth contributions
Professional Fees
Promotion and advertising fees
Pre-incorporation expense
Pre-development
Publicity
Real estate taxes
Real estate related expenses
Rebates on sales
Rent

Repairs
Representaton Expense
Research and development
Retirement plans
Rice Allowance
Royalties
Salaries and wages
Software and online services
SSS Contributions
Stamps and Postage fees

Storage rental
Subcontractors
Telephone
Transportation allowance
Training and/or teambuilding cost
Utilities
Value added taxes
Website design
Workers' compensation insurance

Tuesday, April 26, 2011

What everyone ought to know about Annulment and Divorce


There is a big difference between divorce and annulment.

Following are excerpts from an article on the Philippine Daily Inquirer by former Chief Justice Artemio V. Panganiban posted on  Philippine Daily Inquirer on 10 April 2011. It is a good read.

“This vast difference in attitude stems from the fact that the grounds for (1) annulling “voidable” marriages, and (2) declaring the nullity of a “void” marriage had existed before or at the time of the exchange of marital vows. Hence, no valid marriage existed from the very beginning. On the other hand, the cause for divorce arose after the exchange of “I do’s.” Thus, there was a valid marriage that the divorce decree dissolves.

For this reason, our courts are authorized to annul voidable marriages and/or to declare the nullity of void unions, whether among Filipinos or aliens. However, they have no power to issue divorce decrees, whether to Filipinos or to foreigners. Moreover, a divorce granted by a foreign court to Filipinos is not valid here.

Hence, a divorce obtained by a Filipino couple in Las Vegas, even though valid in Las Vegas, is not valid here. If one of the Filipino spouses should remarry again in this country, he or she would be guilty of bigamy. If the wife cohabits with another man in the Philippines without marrying that man, she could be prosecuted for adultery. If the husband cohabits openly with another woman without marrying her, he could be prosecuted for concubinage.
However, a divorce granted by a foreign court to foreigners, if valid according to the national law of the spouse concerned, shall be valid here. Furthermore, a divorce between a Filipino and a foreigner, obtained abroad by the alien spouse, shall also be valid here.

Here, “the Filipino spouse shall likewise have the capacity to remarry under Philippine law,” says Article 26 of our Family Code. The Supreme Court (Republic v. Orbecido, Oct. 5, 2005) explained that Article 26 aims “to avoid the absurd situation where the Filipino spouse remains married to the alien spouse who, after obtaining a divorce, is no longer married to the Filipino spouse.” This law prevents a scenario where a Filipino is still considered legally married to an alien who is no longer deemed legally wedded to the Pinoy.

When foreign divorce benefits Filipinos. Article 26 is the exception to the general rule that bars Filipinos from enjoying the benefits of divorce decrees obtained abroad. Under this exception, the foreign husband could no longer insist on cohabiting with his Filipina wife. The divorce released the wife from her obligation to cohabit with him. Likewise, the Filipina wife could consider herself capacitated to remarry or to cohabit, without being guilty of bigamy or adultery.

In a recent decision (Corpuz v. Sto. Tomas, Aug. 10, 2010), the Supreme Court ruled that this right given to the Filipino spouse by Article 26 is not available to the foreign spouse. In this case, a Canadian (to be more accurate, a Filipino who was naturalized as a Canadian) who obtained a divorce in Canada from his Filipina wife has no right to ask a Philippine court to recognize the divorce decree so he could remarry another Filipina. Only the former Filipina wife may do so, that is, ask Philippine courts for this recognition.

A Philippine court cannot adjudge the marital status of the Canadian because the capacity to marry is determined by the national law of the person who wants to be married. Aliens who marry in the Philippines are required to present to the solemnizing officer a certificate of capacity to marry issued by their embassy or consulate.”

Hence Article 26 of the Family Code, which capacitates a Filipino citizen to remarry after having been divorced by an alien spouse, can only be invoked by Filipino citizens and not by non-Filipino citizens.








10 Deadly Mistakes you made this last tax filing season

If you are a businessman or entrepreneur, you might have made the following crucial mistakes when you filed your income tax return last 15 April 2011:
1)      You failed to check your math in arriving at the taxes due.

2)      You failed to attach a CPA Certificate which is required if your gross quarterly sales, earnings, receipts or output exceed P 150,000.00.

3)      You failed to consider allowable deduction for taxes paid or incurred in connection with your profession, trade or business. Examples of these taxes are real property taxes, value added taxes, municipal/city taxes and licenses as expense. These taxes are deductible expenses and taxes not allowed as deductions are income taxes, estate and donor’s taxes.

4)      You failed to deduct interest as expense and if you did you failed to follow the limitations set forth by the Tax Code on deductibility of interest.

In general, the amount of interest paid or incurred on indebtedness in connection with the taxpayer's profession, trade or business are allowed as deduction from gross income. For example, the interest paid on mortgage for purchase of office building is deductible as expense. You may even have the option to treat the same as a capital expenditure whichever way is convenient tax wise.

Note though the limitations on deductibility of interest expense. Such allowable interest expense shall be reduced by an amount equal to 38% of the interest income subjected to final tax. Therefore, interests incurred are not deductible in full if you have earned interest income previously subjected to final tax.

Further, interests paid are not allowed as deductions if payment has been made or is to be made: i) between family members, ii) between a stockholder and corporation, where such stockholder owns 51% of the corporation; and iii) between fiduciary and trust.

Another limitation is the non-deductibility of interest paid in advance through discount or otherwise if one is at the same time reporting income on a cash basis. Such interest can only be deducted in the year the indebtedness is paid or if indebtedness is payable in periodic amortizations, the amount of interest which corresponds to the amount of the principal amortized or paid during the year shall be allowed as deduction in such taxable year.  In other words, advance interest paid cannot be deducted until the principal is paid if one is reporting income on a cash basis.

5)      You failed to write off bad debts or debts no longer collectible. So long as bad debts are connected with one’s profession, trade or business and not made between family members and those mentioned under Section 36 (B) of the Tax Code, the same can be deducted as expense.

6)      You failed to consider your travel expense provided that such travel was in pursuit of trade, business or profession.

7)      You failed to deduct entertainment, amusement and recreation expenses that are directly connected to the development, management and operation of your trade, business or profession, or that are directly related to or in furtherance of the conduct of your trade, business or exercise of profession.

8)      You failed to deduct losses from robbery, theft, pilferage, embezzlement, fire, storm or other losses provided that such losses are not compensated for by any insurance.

9)      You failed to deduct contributions made to charity which can either be deductible in full or with limitations. Contributions to the government, donations to Certain Foreign Institutions or International Organizations and to Accredited Nongovernment Organizations are deductible in full. Other contributions are only allowed as deductions in an amount not exceeding (10%) in the case of an individual, and five percent (5%) in the case of a corporation, of your taxable income derived from trade, business or profession as computed without the benefit of amount pertaining to charitable contributions,

10)  You failed to consider other deductions allowed by law such as depreciation, loss from exchange of property, benefits given to employees such as pension trusts, research and development, capital losses, fringe benefits, etc.

However, don’t fret if you made the foregoing mistakes. You can always amend your income tax return. There is no prescription period for amending the return, except when one has been issued a Letter of Authority (LA).  An LA is the authority given to revenue agents to investigate your books of accounts and other tax documents to determine the correctness of taxes paid for a given taxable year. Once an LA has been issued, you can no longer amend your return. So rectify your tax mistakes while you still can.  

Tuesday, April 19, 2011

Most decisive thing to do, BEFORE YOU DIE.

If you have properties, whether real or personal, it is critical for you to manage your estate before you die. We Filipinos never seem to realize the importance of estate planning. Traditional Filipinos do not usually talk about “mana” while parents are still alive, and consider this topic taboo, only to realize later on that the properties, should have been disposed of or transferred prior to any death.

The primary reason for estate planning is to ensure your family is properly cared for after your death. Often people only start thinking about transferring registration of property left by an estate to the heirs, when a prospective buyer shows interest on an estate property. But this is an extremely wrong practice. Sadly, the estate left by a deceased sometimes burdens rather than favors the heirs. Thus, it is always wise to do estate planning that will have your family and heirs thanking you even after you are long gone. Estate planning however does not always involved transfer of property before one's death, but planning the most efficient way to transfer property whether to take effect during one's lifetime or after death.

An example of an estate planning tool is, firstly, by establishing a trust fund for your children. If the designation of a child is irrevocable, this shall be considered as a gift and exempted from tax up to the amount of PHP  100,000.00. The designation of an irrevocable trust fund is however subject to donor’s tax.

If the designation is revocable, then the amount so designated shall be considered as part of the estate and subject to estate tax. For real properties, one can always transfer property to his children. It should however be studied which is more tax efficient in the transfer, whether it is through estate or gift tax.
Secondly, another estate planning tool is to secure life insurance policy because the proceeds thereof are exempted from estate tax for the estate and income tax for the recipient or heirs of the deceased.


Thirdly, an effective way of deferring payment of estate tax as an estate planning tool is by establishing a family corporation. If you have substantial number of properties, these properties can be converted to shares of stock by transferring the properties to a newly established corporation in exchange for the shares. As a tax free-exchange transaction, the law recognizes that no tax is imposable if property is transferred to a corporation by a person in exchange for stock or unit of participation in such a corporation of which as a result of such exchange said person, alone or together with others, not exceeding four persons, gains control of said corporation. This way the transferor or heirs still gain control over the properties via the corporation.
Lastly, one may consider selling properties to his heirs. The capital gains tax due on the sale transaction which is 6% may be a lot less than the estate tax due if these properties are part of the estate.
Lot of considerations have to be factored in in doing your estate planning such as the nature of the properties, intentions of the transferor and transferee etc. All these strategies have to be applied on a case to case basis and are crucial considerations in doing your estate planning. 
So before you die, do your estate planning.......

Cost of Annulment

The cost of annulment is a paramount consideration in deciding whether to file for annulment. The cost really depends on a lot of factors, such as the venue, the ground/grounds for annulment, properties owned by the spouses, and of course the professional fee for psychologist and/or psychiatrist.  The psychology and/or psychiatry report, which is a pre-requisite, in an annulment case, makes up a substantial portion of the whole professional fee. Fees for doctors of psychology/psychiatry range between Php 25,000.00 to Php 50,000.00. This is why there is a move or clamour to regulate these fees through Supreme Court accreditation of these professional doctors.

The high cost of annulment is also the reason behind House Bill No. 3952 by Congressman Colmenares. House Bill No. 3952 which seeks to recognize spousal violence, infidelity, and abandonment as presumptive psychological incapacity, as a ground for the annulment of a marriage. Author claims that adding the presumption of psychological incapacity under Article 36 would reduce the length of the proceedings, and cut expenses like professional fees for psychiatrists or psychologists. Some legal experts however believe that this bill will not solve the problem of cost of litigation since it does not change the legal standards set by the Supreme Court in annulment cases. Under this bill, although psychological incapacity is presumed in case of violence, infidelity, and abandonment, one still has to prove seriousness, incurability and that such psychological incapacity existed at the time of marriage. The bill may do away with proving psychological incapacity but all the other factors still has to be proven resulting in protracted court proceedings.

Well, let us wait and see where this bill may lead our Congressmen to. After all some of them have benefited from “psychological incapacity” fever or still intend to avail of it.