CTA Case No. 639 (Decision)

REPUBLIC OF THE COURT OF TAX APPEALS MANILA PHILIPPINES

MARY LEE YU.WILLIAM LEE. On POLDO GABRIEL,ll surnamed and EILEEN, all surnamed LEE, minors RICHARD,EVANGELINE DIANASUSANA.ERIC and SAMUEL EDWINCHARLES PATRICK, JI. and CHRISTOPHER AUGUSTO.aii WILSON LEE, LEE KAM, SILVINO LEE JOHN LEE PETER LRE. VALERIANA LEE YU behalf of minor wILLIAM iEE. LUCIAN.nd VENUS LILIAN ali SUrNaMed LEE. RAFARL TEEHANKEE. on behalf of minors MICHAEL JOSE, MARIA CRISTINA. and IEO behalf of minore WAYNE. DANIRL ROY. all surnamed LEE, CHARLES surnamed LBE.and VICTOR LEE TANG HO DE LI SENG GIAP. JR..CECILIA C.LEE.FRANCES RICHARD, MARIA SYLVIA, RAFAEL TEEHANKEE. THKMAS J. LEE. On ANTHONY P. LEE on behalf of LEE. on behalf of minors JOSEPH behalf of minors JANE LEE and of C minors HENRY. JR. LEE. HENRY LBE, on behalf Petitioners. EDMOND JULIA On

versus CASE NO.639 C.I.M

JOSE ARARAS. as Collector of Internal Revenue. Respondent.

DECISION

This is an appeal from the decision of the res-

pondent holding the petitioners liable for the sum of

Pl,l35.37, allegedly representing *surcharges. inter-

osts and penalties" fcr failure to pay in due time cer-

tain donor's and danees' gift taxes. However, accord-

ing to the decision of respondent of March l0, 1959.

the said amount repxesents the balance of the donees.

166

DECISION - C.T.A.CASE NO.639

gift tex as of April 7. 1959. (See page 167. B.I.R.

records..

It is not clear from the pleadings how the sun of

mi,135.37 was errived at. However, an examination of

the B.I.R. rocords pertaining to the caso showe that the

said amount was arrived at as follows:

i interest on i.837.73 Donees' gift tax 5% surcharge on 1,837.73 1Y interest on Total Compromise for Leos amount Balance ment alreody late pay- P603.15 paid 3.117.73 3.649.9 514.5 404. 30 91.89 6.03

See page 165,B.I.R. records)

After trial and tho filing by counsel for petition-

ers cf their memorandum, a written manifestation was filod by counsel for the Government stating

entitlod case ic whether the petitioners a otill liahle to interests. surcharges that the basic donor's and donee's gift and penalties, notwithstanding the fact taxes have already been paid by them on the due date thereof: l. That the only issue in the above-

was the result of a wrongful computation of interests, penaltieo and surcharges by the Tax Audit Branch; 2. That the above ctatement of issue

above-entitled case Commissioner of IRternal Ravenue caused a reaudit of the assessment involved in the 3. That consequently. the respondent

tion to further insist on the coliection of the assessment herein involved, for which a letter to that offect was sent to coun- sel for the petitioners, a true copy of which ia hereto attached as Annox A*; found out that there is no legal justifica- 4. That as a result thereof, it was

the respondent will not file a memorandum in the above-entitled case inasmuch as the 5. That in view of the above action

167

C.T.A. CASE MO. 639 DECISION

3-

issue has become academic.

dismissod. that the petition for reviow filed by the petitionere in the above-entitled caie be WHEREFORE, it is respectfully Prayed

Respondent having admitted that a mistake was com- mitted in the issuance of an assesament against peti-

tioners in the sum of pl,l35.37. and it appearing that

the explanation is satisfactory. the decision appealod

from is hereby reversed. No pronouncenent as to costs.

SO ORDERED.

Manila. July 20. 196l.

Associate Judge ROMAN M. UMALI

WE CONCUR

Presiding Judge AARIANO NAL

ssociate Judge HIANO

168