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Domingo V Garlitos
Domingo V Garlitos
Case Digest”
8 SCRA 443
FACTS:
In Domingo vs. Moscoso, the Supreme Court declared at final and executor the order of
the court of first instance of Leyte for the payment of estate and inheritance taxes, charges and
penalties amounting to ₱ 40, 058.55 by the estate of the late Walter Scott Pine. He petition for
execution filed by the fiscal, however, was denied by the lower court the court held that the
execution is unjustified as the government itself is indebted to the estate for 262,200; and
ordered the amount of inheritance taxes be deducted from the governments’ indebtedness to
the estate.
Ruling:
Yes. The fact that the court having jurisdiction of the estate had found that the claim of
the estate against the government has been appropriated for the purpose by a corresponding
law ( RA 2700) shows that both the claim of the government for inheritance taxes and the claim
of the intestate for services regarded have already become overdue and demandable as well as
fully liquidated. Compensation, therefore, take place by operation of law, in accordance with
the provisions of article 1279 and 1290 of the civil code, and both debts are extinguished to the
amount.
Exception: SC allowed set off in the case of Domingo v. Garlitos [8 SCRA 443] re: claim for
payment of unpaid services of a government employee vis-à-vis the estate taxes due from his
estate. The fact that the court having jurisdiction of the estate had found that the claim of the
estate against the government has been appropriated for the purpose by a corresponding law
shows that both the claim of the government for inheritance taxes and the claim of the intestate
for services rendered have already become overdue and demandable as well as fully liquidated.
Compensation therefore takes place by operation of law.