CTA Case No. 267 (Decision)

ft...U -Ill� PlllPPl~RJ UJlJH! 1 APJ)EAI...S MA:-o!U .~............ 3 ... PH , et1t1oner, - � rsus - C. T. � � SE � 267 � 31 L , in b a .t. . � 15 pac1tr �� ollector of � T� � 16 tern� eve ue , espon ent. X� � ~ - � � � � � - � ~ - k A r J E ' et1t1oner, - versus - L. � LA , 1 his eapac1tr aa ollector 0 Intern� � evenue , - - - - - - esponden � . - . - - ~ - �etltloner, � versus - ~ ' 1 11 c pacitr �� ollector of terna evenue, espo~dent. X- � ~ � � � ~ - - � � � � X EPH , et t:l er, - sus - his of X- � ~ � � � � ~ � � - � � X he ve-entitle cases ere heard jointly - fore this ~ourt. The facts and eire stances , as 11 aa the issue volved �therein , eing � lar nd Ln- terrelated with e ch ot r, hall dete in t a e jointly. 160 lyl

1 - c. r. 267, 31-4. - 2- These are petttlon� for the review of the d�� c1s1 ns of re pon �nt Co11 ctor of lntel"nal evenue �sseaslng against and de and1n fr eac of the above petitioners, yeua net 1n the nts 1nd1cated h reundar' A 0\lOt LaJar\ls Joseph 1~5 12 , 067. ~ .Lazarus Jo epb 19<46 87,521.63 Al ert Joseph 1946 32,814. 32 orge J'oseph 1946 26 , 896.6 John Joseph 19 6 31, 932.32 Petitioner Lazarus Jo..ph filed his 1nco � tax returns f r the y ars 1945 an 1946 on f bruary lB, 1 46 Apr il l , 1947. respectively. P t1t1oners 1 art Joseph and John Joaepb f~led t h ir l nc t a x returns for the ye r 1946 on April 1 , 1947. Pet1- 1oner orge l osep who waa then n th Un ted tatea, did not file his co x ~�turn s f tl y r 1946, which should b&ve been. filed on or efore arc h 1, 1 47. nee, an examiner of t � eau of ntern 1 evenut prepared an fUed for hilll an .1ne t x r - turn for t sal year. Af t er an 1n at! atton of the respect1v 1neo e and ded ctions of each of th petition r herein, and th 1r corros on 1ng �nco t x liabi l 1tiea ccordingly dete~ ined, respondent, on August 19 , 1947, assessed against and cl ded fro th th pa ant of th a inco � tax deficiencies. Ho ever, on epte r 10 , 1947, pet1- 161 lfo

- ......... I � C� � A. ... S � 267. 314, 315 316 - 3- t1 nera ested f r a e1nveat1ga 1 n of the �� e ts que tio � lc re eats �~� r nt d y respon nt. a a1 too 6 nd I, 19~1, r espondent tru. nc ach of t1t1on r� f ~ t e a nt of nt1 r v o � y 1asued against the plus terest p to tober 1~ . 1. 1- tan oualy, respo ent ala iatu d r nts traint and 1 vy a; 1n t propert1 s of p lt onus. ver , by letters all dated to r 16, 1 ~~. etl- tionert LaJarua Joseph , Al rt Josep and John Joseph, re ested for t suspe s1on of th su collec- ion o the e tax assessed a1nst t e , llegln that t etr cas 1 are at111 � ding reinvestigation. Later, y etters all ated to r 17, 1951, tl- t~o ers 1nfo ed respondent of thelr wner f c r- t shar toe p ic ey cia re uf lc ent t a.rante of t 1r spute co � tax 11 11 tie � t info ation furn1 d by t1- tionera t eir letter� of to 17, 1951, respon- ent on the a day, address d waxrant o n s - ent to Joseph oa., � � arn1sh1n h f stoc in ald corporation r�g1stered 1n th n of ch of t � it oners. owever , on � ruary 6, 195 , petl� of garnla ent , an requested furt er fo sti� gat1 n of the entire atter. g ln, reapon nt or r 162

- .T.A. CAS � 2 7, 4, l Sl6 -- t re t l ft� �� a l.t.a 1 � ug � the warra t� 0 garn1s nt on pet1� tio er ' s ares o s oc~ o eph ~os . , �� �� r� serve on to 1' l � l 51, no urt er ct1on �� taken hereon nt11 August 22, 9:>~. en asK for the transfer o t e garnls ed c r o at ck to t n e t n e n 1 v n e. c:e er , 1 55, et t1onera t re pon- ent t at hla right to collect, ei r y 1stra nt nd levy or ju 1c1 1 ctlon, t e � tax sses tl stto h s alrea � r estec1 that t � id asse e� nts it a � .1 nuary 1 , 19 ' tition r n ur e t � ax ass �� galnst eac of t wlth t th t 1 th y fail to pay t a ess- ta en a a1nst th w1th- �� � ��� t �forat pu 1 c auct y 7, 19 � v :r, f 1' l c of seh duled sa � 1 . not t � place. ence, res o en � vert d again �� t � a sh of st.x or 1 c auct 1� Jun 26, 19o � g in; no iddera appeared. ncl for the third tiiH' respon � t e-advertls d t 1 at 163 1~1

DECISI - c. r. � CASES � 267. ....1 ' 1 16 - public uction of the a e s. r of stock to tak pl c: on ugust � 19~ � Inas ch a there w s no bi d r t this th &e led � le , asp ent ur- ch sed sh $toe for t ov r ent for ...h v r book valu the s r of &t c h ���� The only estlon ln this ca � is r or no th sale o petit on r � shares of at n t 30, 1 ~ 1s 1 al d v 11 ? e find that in t e stant case, all nco tax eh ar n r g rn1sh1n t1t1 n r � ah ras f s oc vd only on to r , 1 1, r ort th n 'r aft r th v n f 1 d. 11 � ttl d t.1:n t a provis1 ns of s et on 1 d) of the r c , th Collect r of Internal ev nue h a po to coll ct y tr tv tho ny inco t X nt 0 r1o t ld v ""\ r t rns v Vtie l l g lodj ( oll ctor of Inte... n 1 h11. 5!>4; olleetor of Intern 1 v� h1.1. 5 �' Ju n la Vii\ vs� 1 d � 65 P 11. 2 2f Coll ctor of Int r 1 v nu v � Av 11no et 1. , G. � � L-9 2, �ov. 19, 1 Coll ctor of Int nu va. ur lio P. al. , G�� o. L- 5 , n. 1,19~7; Coll ctor of In- t rn l ven e � Jos c. Z lu ta, 53 O. G. 32; 164 13

- 6- ch: no hua Joy vs. llector of nt r al ev nue , .4. � � L-10961 , � 2 � 1 5 .) T ac of t1e rev nu aut orities in viola� tion of � id et n 51 (d) ould 11 al � t e:refor , the rran' of t nvol in i)$ ra ard petit ne � ' sha.r k n issue c tr v to 1 w, f r an nee s or1lv oll s t at espo lly ac 1r d control ove:r 1 n rs� of t c st � l 56 an nt 1 1 tb r in f vor o t e over !!l n s 1 e 1 � nul end v 1 � y ver , 41$ to t ll ~ c ~ a jud cial ct on 0 11 ct t l' ch ju lc 1 e 6 not y t not t t l t c se~ rr t s o rt y petit r fo... 1e 1 n pp l � 1 56, n :r ond nt f11 n � r to th rc f rr n t~rc 1 ' 1957. t _$ t r ht t t t of l inst on of th c re th n f1v rs l u t i.-.. rc � r of ay a , ,} 2 of coil ct -on rt 1 � v r, n 1- ci l proe e tQS for coll t on of th �- n d ) y ars af t s- nt t reof. o a qu tly, the collee dGf c1ency t s nt from p ..i 0 rs is ~lre dy b r r d b th s atute of ltmit t~ons and 165

C ;)! -CT.A. CAS S � 267, 14, 15 316 herefor pursuant to ect1on 14 of public Act ~o. 112 , t ro is nod f c1cncy in r ~P ct to such tax. I v OF T � EGO .. c IDE � he d cision of r po d~nt 1 here y v rs � !he 1 of t1tloner � shares of toe in Jo h ro ., I c� t the ov rn nt n A u t 30, 1956, 1 r by d - c larod n 11 nd void, nd r!! pondent 1 h r v ord r d t o r turn th 1d h r of tock to p t1 1o rs. It is f urth r d c red that ther is no fi- c1 ncy nco o t due le y petition r L z ru Jo e h fo th y rs 4 nd 1 46 nd p tition rs Alb rt o p , or o ph nd Joh J ~ ph or h y ar 1946. 0 O~E D� �anlla , Ph 1pp1n s , Aprll 15, 1 � ~c i;/' {/,f d�.-~ ~ v~� 11 6 G. JC./'Io� L..-/cf()J~1 ~---~ � � 01 t t�r