CTA Case No. 71131 (Decision)

1\EPUBLIC OF THE PHILIPPIN:mt COURT OF TAX APPEALS --- MANILA ' � � � � � - � � � � � � � �X CIS I 0 T i i a atm file by the t l!C of t 11 pin in t � , � � stat o � � , � c ��� publ . cla:Ua ally f1l in � ill 11 fort Court f �Of � 1la. .suant to 8 tion 22, pu lie o. 1125, t e a r- (I 0 0 z:t or final i& o 1 1 n. Th or of t e estate f!l a tion o f. i s i $;t& . o - the gJl'ound' that this Court ba n Juriadic io . o t � ca � an f x-t �r inter , �� deftnst t at the gov nt�s s already rr . Y pr rlption. On tb f1r nd thl Court 1n its �solution f July 7, 195-~, held that it ju~lsdlcti n er t � �~�� . n� �� r�gards the a - - ~o gr nd d fen the in tion the of to the rits. r the nt� into th follo - ing �et.tpulatio - facts an aubntitt �d the e s , for dec1stonr 213 . ...

r /� l I" . � 71131 - 2. is 1� ' t a.ti fi , 214

..... 3. c; � i � to ~��T_n � er a in tat ion J. � n th t t - t t 0y f a ser th t cl f not t�n 1 � 215

DEC IS � � Il.A CIVIL �ASE o. 71131 � 4 .. carr sz:ondin r ly r t in t h re character as co pl int n { 11 H Y-Oo I 65 il . 52 and th fa il r to n be r und for a judgi L1t by default . Iiow . in tr tor ha ac ually i l e his ns ITer cl i. ...n th ame �ay b t en s 1 . v ...., n ft r th pe... iod (Lama v� p cibl � 79 6 ) In d ). ion, v.e "ind i~ r on � le to that any o j cti n t~er to h uld .be e by e f c ha t cla \n p blic of t e hil� ipp s olunt~rily 'ril t reply to l ans v r of the dministrator. A reading of c l im nt ' s r pl y 111 readily o th t it r ly cont ins ount - ' s t at ement to the defense of pr script ion pr s nt d by the "'dministrator., �� inalJ.y , not e that th c laimant t.a not , by 1 otion . s d for ju nt of def ult (se 5 � 6, R 1 35, ul of C ur ) an i fa~ t no j dgme t y d f ult nor approv 1 of cla � b en ren red by ths Court of Fir t ! nstanc at t t� is cas s r an t i ourt. , f t hQ%' f r th cont nt i o of . claimant t hi prel iminar y issu as 1thout m r i t. oce i 9 t th pr i e ipal i Sll here involv d, ot her under t p rtin nt ortions of s tio 'lS l, 3 1, 32 nd 3 of th l: tional Int rnal I. v nu od ich e i nvo ed ere a !;)ec. 51 . X X X X 216

� ILA ,. � 71131 X X 217 tl ' l

� I � e tn cc d a. ith t . i s ! .$of t h Cou ( oll c or v. H goo � ~ h lippi tat nt Co. v. o ad s , 6 hil. 2 6} n t. i t (V c n J. Franci co v. oll ctor. c. � � , o utl on d d. r ch 18, 1955 c _t . � t o � 1.� 8997 , April 12, 1 55; A. P. R~y s � � olle�tor , � � � c � 2 a r ar s h ap. c V Ol.l � plie tion f ec.tion 51, P r. . ) of he d t o le t r of t nt r na.l n ha ... t hr e (... ' ars f r t l f ilin of h axp y r ' a inco- ta r t ur s wit h whic h to as s t he inc tax and coll �-t s ry � t ods of dist raint and levy. In h ase t b r ~ th .come �t ax return for l 6 s filed on I'l y 15, 1947 an �th c orr s pon in9 at , r . 1 , "'ti- . ulati"n of Pa ts ) so h t , th �th:re -year porio i t hin � ic to x r is~ he urn.nar y nethods of o lee � on of 1r�d on ;.� y 15, 1 .. � T. er ft r th only s:-� y avai l ul for t. purpose of c llectin the tQx i ility s b, � dic ial cti n , i: hic h .-cti n h d t be f l e on r efQr ay l , 1952 or five {5) y ars y 15� 19 7 t t o:f h f il �ng of 218

.nd t e ss s nt � f t th. . t rant of is �aint 1 . ' az.y 15, . 19-e2, hie h 12., 19 2. th a �ithout any f si n t t n., lo g r 1 5 ( ) it in e ec, i n 51 (d) of 't r x c . pro- vi$lon � ltca let � :tnco s �1 n � it. . st con� rol v r � 3 is �� g n x �1 o all 1n � r a r~v u ta..xes.. x- a.n ev nt, ran of 1 y et' 12t 1952 coul - d d t hav re te any r bt 1 f v t e go rnme t in vi of th fae that t Collector o� Inter al � ve u ha aile 0 ly 1th th X dr.n:e und $ t Oft .1 � 1 d 2 .. 32:.:> d'e, v� h ld to b ly rv �� ( !a � Caitro v. "oll c a � li � 141, Le lu 1 ate � $1" ..., l ' 1 55 � ln his , n r t rb f'Jf � �� tl s ription f th . :rope:rty iz d nor f tbe t 1 d n t . sal to at1$fy t gov rn ot' 11 c or ould n t h ve a;qui ed any ri ht v i -. ac:cordenc t1t h a � ar ant f 1 trai :t an � levy issu d by th t x aut riti is analo oua to a l vy o xeeutl r fi al attac t ( s u. � v. . ttll , e, u. . 247, L. �� 421) a li the 1 t� t r tb 1 suan of th -rrant f dis raint nd le 219

ta not al n� s� ff.i$1 �n t ye' e ef .tin 1 f t t a:t t the � n fit 0f s. � Uo of t a.x o.d .. . � inti thta c: o nti �� � wit t r!t... lind'% .. t.t alt Cod , Col ector of K�1rem����. lt ur � 1y to '1 � h y y distraint 1 vy a in � o . y 1� t ~ollKt %' . ar � t rlod f:r �nf ft , � c 11 i c ually tri ai a 1o � �ect-1� of t ' of 11� ati � st � one w r neith ~ j dicial � �1- il' � f � and o h� 1 � t t y t � stat t f 1 it t ... n 220

I t I f DEC IS I ,.. .. IU"W.,.�.,"" t CIVIL CA � I I' I' c 11 ction f h inco :c� 1 bil:tty �of ant $ecti n 1 , pub ic t . o. 1125. !are that th� r is o d fie ncy of ch i1 o t _,x,� L t la�m cf th ov r n ' it i hout pronou .c 0 s. 11 � PhU pi c , June 11, 1 5 , c iate Judge 0 � I di not t ke p rt. 221