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006 Collector of Internal Revenue Vs Campos Rueda 42 SCRA 23
006 Collector of Internal Revenue Vs Campos Rueda 42 SCRA 23
42 SCRA 23
“Foreign Country” used in Sec 122 of the National Internal Revenue Code, refers
to a government of that foreign power which although not an international
person in the sense of international law, DOES NOT impose transfer of death
taxes upon intangible personal properties of citizens not residing therein. Or
whose law allows a similar exemption from such taxes. It is not necessary that
Tangier should have been recognized by our government in order to entitle the
petitioner to the exemption benefits provided by our Tax Law.
Collector of Internal Revenue v. De Lara, 16 it was specifically held by us:
“Considering the State of California as a foreign country in relation to section 122
of our Tax Code we believe and hold, as did the Tax Court, that the Ancilliary
Administrator is entitled the exemption from the inheritance tax on the
intangible personal property found in the Philippines.” 17 There can be no doubt
that California as a state in the American Union was in the alleged requisite of
international personality. Nonetheless, it was held to be a foreign country within
the meaning of Section 122 of the National Internal Revenue Code.