Collector. Pursuant to
action commenced in Court of 1
Instance was forwarded to Court of Tax Appeals.
1. WON, one-half of the net estate should be deducted in determining thetaxable net estate of the decedent as Beatrice Mauricia’s share in accordancewith our law on conjugal partnership and
section 89 of the NIR Code
WON estate can avail of inheritance and estate taxes on shares of stock inMindanao Mother Lode Mines, Inc., granted by reciprocity proviso in
3. WON estate is entitled to 4,000 deduction allowed by
sec861, US FIRC,
4. WON real estate properties of decedent and shares of stock were correctlyappraised5. WON estate is entitled to deductions for judicial, administration, funeralexpenses and real estate taxes and amount representing indebtednessincurred by decedent during his lifetimes6. WON estate is entitled to payment of interest of amt. it claims to haveoverpaid the gov’t and to be refundable to it.
Decision affirmed with modifications.
Yes. In the absence of ante-nuptial agreement, the contracting partiesare presumed to have adopted the system of conjugal partnership as tothe properties acquired during their marriage. Since the marriage tookplace in 1909, Article 1325( not Art.124 of NCC which became effectiveonly in 1950), adhering to thenationality theoryof determining theproperty relation of spouses where one is a foreigner and there are noprior arrangements is the applicable law. However, in the instant case, both spouses are foreigners who married in the Philippines. Therefore,The law determining the Stevenson property relation is the English law,which must be presumed to be the same as our law since there is anabsence of proof otherwise (processual presumption, p699). Moreimportantly, property relations of spouses as distinguished fromsuccessional rights of spouses is governed differently by the specificand express provisions of Title VI, Chapter I of NCC.
No. There is no
reciprocity between the Philippines and the stateof California in that while the former exempts payment of both estateand inheritance taxes on intangible properties, the latter only exemptsthe payment of inheritance.
Amount under the Fed’l Estate Tax Law is in the nature of a deduction,not of an exemption regarding which reciprocity can’t be claimed under
No. Respondents contend that the fair market value should be theassessed values appearing in the tax rolls 6months after death ofStevenson, pursuant to
. However, properties are required to be appraised at their fair market value and the assessed value thereofshall be considered as their fair market value only when evidence to thecontrary hasn’t been shown.The situs of the shares of the stock forpurposes of taxation, being located in the Phils and sought to be taxedin this jurisdiction, consistent with the exercise of our govt’s taxingauthority, their fair market value should be fixed on the basis of theprice prevailing on our country. However, since the said shares of stockcommanded a lesser value at Manila Stock Exchange six months afterdeath of Stevenson, the testimony of Atty. Gibbs contributed to the SC’sreversal of Tax Court and holding the value of a share in said miningcompany in the Phil market as P.325 as claimed by respondents.5.Yes. These have been considered deductible by the Tax Court. p706-707
No, deduction has to be allowed only insofar as the Philippine probatecourt has not approved this particular indebtedness of the decedent,such approval is necessary. There is a regular administration undercontrol of the court where claims must be presented and approved andexpenses of administration allowed before deductions from the estatecan be authorized. Another reason: According to
sec89, letter d of NIR
,allowable deduction is only to the extent of the PORTION of theindebtedness which is equivalent to the proportion that the estate in thePhilippines bears to the total estate wherever situated. Since there is nostatement of the value of the estate situated outside the Phils, or thatthere exists no such properties outside the Phils, no part of theindebtedness can be allowed to be deducted.DONATIONSREQUISITES FOR DONATIONSArt. 82. Donations by reason of marriage are those which are made before itscelebration, in consideration of the same, and in favor of one or both of the futurespouses. (126)Art. 83. These donations are governed by the rules on ordinary donations establishedin Title III of Book III of the Civil Code, insofar as they are not modified by thefollowing articles. (127a)