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G.R. No.

L-11622 January 28, 1961


THE COLLECTOR OF INTERNAL REVENUE, petitioner,
vs.
DOUGLAS FISHER AND BETTINA FISHER, and the COURT OF TAX APPEALS,
respondents.
Barrera, J.

FACTS
British Walter G. Stevenson and Beatrice Mauricia Stevenson were married in Manila in
1909. Walter died on Feb. 22, 1951 in California where the couple established their
permanent residence since 1945. This case is on the determination and settlement of his
hereditary estate.

In his will, Walter instituted Beatrice as his sole heiress to real and personal properties
they acquired while residing in the Philippines amounting to P130k.

ISSUE relevant to us
WON in determining the taxable net estate of the decedent, one-half (½) of the net estate
should be deducted therefrom as the share of the surviving spouse.

HELD & RD
YES. The SC held that in determining the taxable net estate of the decedent, ½ of the net
estate should be deducted as the share of the surviving spouse in accordance with our law
on CPG. Thus, only the one-half share of Walter in the conjugal partnership property
constituted his hereditary estate subject to estate and inheritance taxes.

Under the old CC, where one spouse is a foreigner and there is no ante-nuptial agreement, it
is the national law of the husband that becomes the dominant law in determining property
relations. Since both are British citizens, British laws should apply; however, in the absence
of proof of what English law is, court is justified to indulge in “processual presumption" in
presuming that the law of England is the same as our law.