THE COLLECTOR OF INTERNAL REVENUE v.

ANTONIO CAMPOS RUEDA

G.R. No. L-13250

Date: 1971-10-29

FACTS:

Antonio Campos Rueda was the husband of late Maria Cerdeira who was a
Spanish national and an inhabitant of Tangier, Morocco. When she died, she left
intangible properties in the Philippines. Rueda, upon attempting to claim these, was
given by the CIR an appraisal for state and inheritance taxes which added up to Php
369,383.96. Rueda then documented a revised return expressing elusive individual
properties ought to be absolved from these charges. The intangible properties was
worth Php 396,308.90. He then received a denial from CIR on the grounds that the laws
of Tangier could not be equated to Section 122 of the Internal Revenue Code.

ISSUES:

(1) Whether or not the exemption from Section 122 of the Internal Revenue Code is
deemed valid.
(2) Whether or not Tangier is a state which is considered in Section 122 of the
Internal Revenue Code.

RULING:

(1) YES, the exemption is valid.

(2) YES, Tangier is a state and therefore considered in Section 122 of the Internal
Revenue Code.

RATIO DECIDENDI:

A proviso is then noted in Section 122 which states that “no tax shall be collected
(a) if the decedent was a resident of a foreign country and did not impose a death tax or
(b) if the laws of the foreign country of which the decedent was a resident allow a
similar exemption from death taxes”. Tangier is also considered a state due to its
sovereignty itself.