Section 23
SEC. 23. Section 121 of the National Internal Revenue Code is hereby amended to read as follows: “Sec. 121. Rates of tax payable by donor. “(a) In general. The tax for each calendar year shall be computed on the basis of the total net gifts made during the calendar year, in accordance with the following schedule: If the net gift is The tax shall be Over But not Over Exempt Plus of Excess Over P 1,000 P1,000 1.5% P 1,000 50,000 50,000 735 2.5% 50,000 75,000 75,000 1,360 3% 75,000 100,000 100,000 2,110 6% 100,000 150,000 150,000 5,110 9% 150,000 200,000 200,000 9,610 12% 200,000 300,000 300,000 21,610 15% 300,000 400,000 400,000 36,610 18% 400,000 500,000 500,000 54,610 21% 500,000 625,000 625,000 80,860 24% 625,000 750,000 750,000 110,860 28% 750,000 875,000 875,000 145,860 32% 875,000 1,000,000 1,000,000 185,860 36% 1,000,000 2,000,000 2,000,000 545,860 38% 2,000,000 3,000,000 3,000,000 925,860 40% 3,000,000 “(b) Tax Payable by Donor if Donee is a Stranger. When the donee or beneficiary is a stranger, the tax payable by the donor shall be either the amount computed in accordance with the preceding paragraph (a) or twenty per cent (20%) of the net gifts, whichever is higher. For the purpose of this tax, a stranger is a person who is not a: “(ii) Brother, sister (whether by whole or half blood), spouse, ancestor, and lineal descendant, or “(iii) A relative by consanguinity in the collateral line within the fourth degree of relationship.”