CTA Case No. 259 (Decision)

� ~-- - � -�~---- f' � v rs\.ls - ��� �9 e n nt. x- � � � � � � � � � M � �x EI 0 � Th1 l a ro c ion of r pon etc 0 rn 1 venu d Y n ... titio r � cl Ol 0 u of l ch p1 1- t or or 1 � c 11 �� � h 0 er .,r v1o 1 0 of 0 al f6rn ' he t r 01 y daught n iu s ... l 00 at ' t 1 io 01 Ii n 0 n k, Cal f orn a, � � � t 0 0 , ood n th � 1 i p on he oth r r s on n t at 7. 4 � 0 v r . d r } arin c:���� th .rt1 a a r 0 c pr emise v lu ion of the s et n the h1l pia 5 L"'l h to 1 au / 315

- � 29 of 2 11 6 . 10, hie was arriv d at �� ol l ow 1, l � 38 � . ~-------~ 17, 1 52, tr h l tat n h r c return , t r t nf h 0 f l on nd st t n rlt nc X urn , r- tlt er�s eoun 1' pt rl ' 19~3, nt o. t . � l no fr t � t�t t so u of nh r t nee tax u nd y bl n or or pr 1 22, � n cto r 16, 195 , t et n r f11 n ended estate end nher t nc t turn h ing 316 3

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�2 n u u .. t 2 , th n nt , on t h as of ho ed eo pr no ro � t in h "l ppino , o th coll ct th at t ���������� 1 ,1 ~.- ���������� 12. 9 ����� �� � ��� 7 1.09 � � � � � � �� l � 2. ve.rp nh �x ��������������������� 2 � 1. 6 � � � f� r� � � � � � � � � � � 1 , 2. 10 � � � � � � � � � o 2. 6 2, 2� �� ��� ����� � �� �� � �� � � a� ������ ��� t 12. 1 nt n t X �� P L IE � � � � � �� � ���� �� �� �� �� h t u r s d n hi c a the foreea1d ev s r l. r cr not h of � e 1 t or nna ood t 11 1 f or t o p tax. ., . 3 1 8

-- � � � r or n t a educ lo of thoulcl e 1 o e&tat or purpose of h eata � XJ an � et er o nc t � pon nt ~oll c or - of ln �.rnal e enoe w a corr c i a � 1n ( altiea an inter at. fher re t lt lno IIU e pre ent ar r�aolutLon c ev r ot cessary o:r er to Ki e the C I on rl � On th firlt isauea 0t � tate o t � l te :ra nna 00 f.I fr t payment of he inh ritenc tax, the rovis co � taint in ec ion 22 ot the ational ~1 - venue o pert nent and y. tn t c � r, t ls uncon r v rt th�t the d c ent - ora nne ood, t th t c e / of he%' death, � a citizen an r al - funla , n t d tate of erica. nc he petl� tlone:r herein has prov d to t � aatis ct. n f ., 319

� -- it ouz thet th 1 1 of th ni � at �� 11 he tate of al� ornia oe a de�th tax o any c .aract r ~ r p et f nt ng1ble pezenn 1 prop r y o citiz n o t e 11 ppln no r ei in tn li�e ov r , this , on t le st tht � ec ni4e en l!f rn1� 1 in� l ath t x n 1nt n 1 l 01 l p.rope v � Coll ct of Int rn 1 v n � � ��� 1 1, un 2 � 19 J orton t 1., V � <.;o!lttCtOl" 73, nuery 12. l� ector 1 nu 1 emil o. 29 , 0 th opin on an r c pr e ity pr � vialona o .tlon 122 of t qu t d � te r in is ot fort pa. nt ' f tuX n r or not d c- on tt r 'y u. � � Ol.1%'t , f a vs. ct r 1 ov nu o. 1 1, d c:ld n un 2 ' l 5 ttat 320

� 259 � 7. X of 26, ��� 1n - t a.ra ~aM 1n � � enue, i o. 1956) � vall a t c � 321 ... '

ugu t 23. 1~:)6 , r ...... t!o r is r vi d u d nt not ce nd X r o r �n t u of .s.... , h v r . p tit on r v n r J.a nt r d or �r ot only p 1 1n nt o:a: tX u ut p 1 n ount n of t as o s nt o .Gt t t X y r.pond nt 322

� 259 to !a ully u� an paya le f~OM deceden ' � ��tate. n ebru~y 2, 19~. petitioner paid 6, 1. 46, ancl again, on ebJ:uaxy 22. 19.., , � � also - pa.t n. of 1 , 61.0. 7 , ~ � total � of , 572. 19 �� t � est t tax ,_,-.nt. espondent ita that these payments *te and �� cona1 �r� the .... in hla tnal ~ tation o t eatate ax. Aa a ..tt�r o fact, v.rpa nt !A ��tate ta t e � of , 249.3 � Cl arly :tbeHfor � t ti onel." no utl y o elay the payr.aent of x controversy, conMquen ly o urchar � ahoul osed an collected :r erJ (} ectton of th coll c ... ode whic h pz-ovidea for t tlon o the 1/ eflciency ' .' t ~~~~~~~~~rr~om� � Internal evenue, end shall � collected �� a p~t of the tax, at tbi ra � o 1x per centua per ann f~c. the ue date the tax to the ate t � deficle y ....ad. � (Unci racer in upplle � ) It will � noted fr th pro !a1on o t.h ve hat th int rest ia lev � , ������eo and collected upon ount of the dtfi� ~iency as dete~lfted by t � olleeto~ o a 323

- �2 -1 van� � n f Jrt r . t h t t t '& to tt 0 h$ t ��t� c .., t coll c 1bl fro oses d ain~w p tit on r . r ry. and as ln lly oun1 d t in p en � th re as l:o y n ov rp y cnt of th tt tx n he az ount o � vine o "n r t c n eollectod n 1t n ncy. un o old tt f 7 1. ou-.ly ss ss d I ru t on J nu ry 10. pon- nt n fr tition r h su ~h s- nt nd t on nd rot yp - titio n on d - ro � In f ct , r pon n n u v �� or nt 1 . 1 ��tate x � Co pared Jlth th cane 11 � - n � hor 6, iff r of or t tn ide prop r � If con- 0 th s Y. 0 lt � 11 . c nt of anu y 1 � t 1- nation o h ficie cy - aeaa ..n w oul y1 1 c or ~I

� 259 - 11 - c f. rat � o o oth 1 al ac:t o o put in a �t p o ppr al on r ..- r� po nt. t0 ax Cod �� 1 9 1 o... �ty 0 t.l n� �t c ll cti n o t ( ) 'l) 1.010. 1 t hich provide � thll �� � p i tio. z, 0 c � t ere y �� ate " � or any interest on sue f or 11r.y 11 � c ior. C2 ax Cod � no tt:r t e n !b c f n 101 ( } (1 0 th o al Intern 1 eve u � htr c unpat on lch t ontt ly int�reat c c � 'ollec � ll' h ref r oplll ou t lnte es n� cc rd c " 325

� 259 - 12 � wit law. (d) 1 ��� c enftl~y oan <)nly ~oll cte th t a au CC>n 0~ 1ty of t teJCp 0 U'l � i tOJ> - of Int rnal evenue nor thi~ �o r G& c p l t~� p t t� er to y t c rami � pen l y. h!a ha n ur co s1 te t rul A e 1 ..0 !n A loo !line f � Coll c 0 tnter al ev�nu � . 1 �� C��� No. 16, ep � 14, 19&/(C ntral /; 1.\:"' ~�l' arl c; v � ll ctor of Int�rnal eve � � ��� � 3u y � 1956J onifee o t f I ~rne ew � � C. T. A. C a o. 44, Ju y l , 1 a � 3a1 Ala! bU., vs. ~ta , . T.A. aa o. e , July 31, 19~ J r-�--"'"-C 1al v orp� va. olle~t~ of nternal ev nua , ~. r�� 218, t . ~. 195 1 lo ~~�\to on , Inc. va. Col� lector of � ov. , 19 6J t rn!t �� p0%'ation vs. Collector of � � Internal evenue, � � � � 2>1, " � 1&, 19 6. ) vm T t th he~ y eclare � t ��t t lr t � payment tance tax, but tJU � � J~t to th e tet t � c~nt o 1 , 1 .~ � l.noe t � t1t1o.er h s lr acy paid the ~ea ndant 1 her y ord�~ to r n o th ; l3

� 2o9 - 1a - tttione:r t � IU o 7. 411. 64 lth tnte:rea f~ t � date of pe nt . anila, 111 pine& , 4uly 5, 1957. aaoc1a � u ;� l concurs and dtsaents 1n � par� � opinion. 327

IU!PUBL!C OP' THE I'HILIPPINEI COURf OF TAX APl.)EAL.c;;, MANILA . - v r~lS- c. r.. c � 269 r nd n t. �VE � x� � � � � - ~ - � - - � � - x Icc c u:r - 0 . j or it t 6n t h reo t is c���� XC pt pt:::- on l pro r Y f holc.tln h n the decea i tl n t fr the ~ - �� � On t h .,..Q t ~ n i.nvolv ng th cation of he r .c :lp ity prov :a on I 1 2.2 of he I r ~t h in y c c rrin nd c! nt is her .ettin v. ct ..,...,. n� ern 1 \,( I ni C iv .1 o. 2 ~ . d c cd y hi pt... o r .l.. � 0 nc J.lc � ha t 1 1 c pro... t ) � 32