CTA Case No. 328 (Decision)

"''~' Uhl.l\. O J! THJ<. Pt ULIPt'lj'lj~ I .OU kT OF lAX APPEALS W.ANlU \ J LE et1t1oner. .. ver s. - . t.A. COL CI t E O. 328 X� � � � � � � � . T . A. E� JU ~ f. D LE � - - versu c t cr X� � � � � � � � � � � � � � X D Cl 1 hese two c see involve ela! for r !uno of 1n� eo texea paid o the retpo dent ~oll ctor oy peti- t1oners .Joae Le the spouse& Juana f. onzalot nd Fortunato d L�on ( .T.A. C�s o. 29) in the rt&poctlv a unt of � facta tho 11~ o th~ p rtial stipulation &u ltted by th parties and the addition 1 evldenc presented by the � the follo 1n feets have � n este- llshed. et1t1oners Jose Loon Oonzal z and Juana � on- zalez (the latta~ m rr1e to petit1one ort nato e Leon) were part o~~�r~ of a parcel of land. each to th� extent of vne-s1xth (l/6) thereof. This parco! of land. situated ln ����� Caloocen, l&al , cont�1ns 277

- C. T.A� � 328�.;;2- - 2- �� of 871 , 2 ar~ eters. The pr operty was 1n er1t d pe it1on r and f ur other c � heirs fr their thor. ona . uf1n t a.rc ts Vde. d Gonzal ez. who died 1n t ' 1ty o� t an11 on u ust 14. 1 � On January 2 , 1947� t. e Rep:Jblic of t te !'hil1p� pines f le n ctioll 1n th Court o F u t In t nc of tzal t o X upzi t th afor id rop ty und r c ':)fi lth et ..o. 539, nd th day follo mo . took poaaeas!on of '"he aft r d po 1t 1 th a. o nt of � � propr1at1on p ~ ediny as u timat ly ele"ated to Supr� Court (G. � o. L-491 , 0 � n y 14, 19 ). ic d c1 d by virtu of -- fin 1 Jud n t t.a t th .JU c; u at on w���e h v rn- ent shou d p y 0 t expr prtat d p reel t>f 1 nd 1n question Sl uld r e are ter .... t c'l a nt ' r d G Sl p l. to th o n t' y th ent �xelusive of lnter st t th lo al r te of &\1 fro - January 2!>. 1'/47. t � d t the aver nt t.o k po & a1on of e ru rl:.y. 0 t 1n 19.4, t!- t1oners nd the ot er co- n r� t er o � r 1d th / ou t of 1, 7, 973. � t � d c:l re Ju t co p n t1 n for th xprop lan � ~ s th u::!l of /. ~3~. !>87. 7 , repr s 1 tin ... (v intr ~t per annu n the ount of ( l,S07. 7 � 0 ln s 28. 8 � the ount ith 0 rt 1947}, forth p.eriod anu � 1947 to to er � 1954. le s t � ount o � payme t of wh1c h was waived t>y petitioners an th oth�r eo-owners. 278

--...- I - �T.A� � 328�329 oat1s f t ~ ve �� espond nt t at ~t1t1oners Jose eon Gonaal s d naalea each � cap1t 1 a1n of and t a each also r � 61 as their share 1n t � TJ:eat1n t sa1 �~unts s axa l inc an a te� all g eao tlttoner a 1 na ex..pt1on of � - po ent ass ssed and anct.d fr e ch of t he au 0 � �� � 11\coaae tax � an paya le for 1 ~. ow J: 18. 19 � u t - s 0 r pondent, the eo le�s es1 � an Ho �s.n (;or r t ion tu.rne over to te a ev e otal ua of 1 , 007. � re ~eaent t x e froa t six co-o era of t eapro a roP4'rty. et1t1onera ae Leon nzalez and rt e c:h er dlte � � a.alez 6, 1 6. �� evl� need by t tar. recelp ss 0 n nzalez 1 ov. 1 � 1 Juana � naalet 5204 ov� et1t1oner u a rec . of "-� � � a � � 29) ate Fe ruary h ch ��� rece1ve spon � t on a,rch 1. 1 5 � r est� f refWl of onl aaMsa en � err n out on the oole 9. 1 r pre- sentlng teres � as cona1 ere �� ord y c 27 9

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� . T.A� -- � s - 29 ay be atntaf.n d, th r or not ch t x, u has een pa1d und r protest or P l Y� ureaa. In n ch su t t or ~rocctd g hall after t � xp1ratlon of t o years fr of payf ot of th 1. x or n lty� ., 1 l n ed fro the a ov - quot pr vla on or p:roceed ' n J.ntaJ..ntd in eny coUl't for the refund of �Y er al rev n � ta � is tat a wri en cla r it :r fu duly ile wit t Coll.etor ln �~nal venue fU1n actio !.n c ur � ue r� the expira 1 n f t year ro the te of t t � tax sought t refun d. Th $ re air $ clearly datory d non�c � pl1 ce h !s fetal t t ct1o. ( ae o. VI. da � tl& 0 r jo vs. ollector o eve.ue, �7 o�� 292 { uppla nt}; . J . en r Co�� 2 J at n er .,.;o. Ine . v�. ollector of In� ernal evenue . � � o. L�;J2-: 2, pr11 2 , 1 7) . e cla or r fund hould set forth 1n de 11 acts and o nds u n wh ch t sa I a d and appri � th ollector of rnal ev u e rd ly. siat c etr le o. v � OS d It 2 � 72 � 0 vs � s a � URf&l see also u. v . v&. e t Tara f� 26 ). In tho ca&e at � that t t1 r Juana � nzalez' cla f r refu da ruary 29, 1956. an t1tioner Jose eon nzalet �s re est for refund dated ove er ~. 1 ~ hie are 1dant1cel. cove only the ount of 24 , 426. thet the only aa1a for 28 1

D vLSI - C. T�� &� � 28- 29 th 1r cla a fo~ refund 1� t alle erroat us tr at- ent o t � interest of 89, �61 � an rd.tnary ln� 1eh t1t1onera alle e. ah uld co a. r as a cap1t a1n r nc t x r r 1r c:la � for f n do al f 6,166. c is th esent r �- I und. n y - t c f e u � T .rt no 6,1 � �� red th cl re a.rd t nt1r ted t ap 0 h v 1 !ted 1 un 2 ,-4 2 � nzalez r elaJ.a �0 � at 6, 16 � f r r� und i."l it fro 2 0 x 1 its) �� ap arin in r iette~ x lb1t J ( olio of d te ove r � 1 5 � tha ' � �� re than t r 19 � ye s r � � 0 nt of the cons � - arre y 1� � � hr t sh 1 ctlo of t it n r � L n 1n ther r not t. � or efun .T. � s ever f1led a cla �r t of t � ull unt f -�� one e line of t �year 1Vt (5) by t � other petit r, u n aya after the d adl �� '-'O s ently, �0 opin � s ol hat pet on rs � to c p y with the ndatory re ire t of t 1th respect to the f1lln o their respective cla a for refund of t e ount of 22 j

v.:.\.ol L J. � - \,; � 1 � A � r.- � 22 -329 and not as c ptt�l gain. hue. 1n th cat� of Co - its on�r of Internal �v�nu� v. K1eaelbaeh. 127 F. 2d 0 � t 1reuit �ourt of Appeal h 1 ' 11e part p �1. t he o rt of Uni t d tates aff .........,_,.... th C1reutt COUl:'t of �1� 1n th � tattng t . ta r 1ter te 1t1 c1s1onrn .t '1

I -c. t �� � 28- 29 - 9 .. Co�� � nit d tatea, 149 � 2d ~1 . 1n t foll win �r � opinion at tea v.ry eftnLte!y that the o-~�lled interest is �not part f r~216c�u���� '1� ine t e . � 11 bt ev. ucndse,r Int ... 22, CA. pa e 2.~) id o t taxp y�rs 1n ! ieu f hat th y 1ght ave earned on the 1 found t th vel of t pro- perty n tb� day t proPtrty s t en.� If not art of th sale price. it c4nnot � us d to eter 1ne eth r t r aa ain or losa t r ina taxa 1 re rdlass of ain or loss. payer�s � eal th judgment t ftr ad. � An In a footnote. t furth �t.at d or one th g, the int res d � not t of t e sal s pric n th&l'e or e n t be cons1d red 1n ht eter 1natton f the capt al 1n (aee � a� ward Alrllne Wy. vs. u. � 261 u�� 2 ). th r it is pay nt r �eo n atlon for th u or for ar nee o� ooey ------~~~~~~~~~W4�. ( all iv r leetr1c <.;o. v � C 1s&1oner, 2 1 , 17lf &e al o Hov n va Co iss oner'� o~t. 160 la. ~ , 9 o. 4l7J K11a 1 ae v. 1 s1oner. 317 u.~. a 9) o lowing the pretent rule n tha United tates as a her d 1n the c::ases c::ited above, w r of the opinion and o hold that the � f 86, .61 rec�1v d y petition rs �� 1nt rest, 1s ordln ry 285

- .�r � � -329 -1 - f GO I , th ec1 1on of t 1 evenue denyin petition r � clatms o� und ahould , � they r eroby. ff1 a a1nst tit on r � _an1la. lipptn � J ly l � l � 286