Case Study
Yaleslie B. Amene
4BLM
ESTATE TAX CASE DIGESTS
Vidal de Roces v. Posadas, 58 Phil. 108
Facts:
On March 10 and 12, 1925, Esperanza Tuazon donated several parcels of land located in Manila to plaintiffs Concepcion Vidal de Roces and her husband, as well as one Elvira Richards. This was recorded in the Registry of Deeds. After subsequently taking possession of the said lands and its fruits, plaintiffs obtained the corresponding transfer certificates. In 1926, the donor died without leaving any forced heir and designated the sum of P5,000 to each of her donees. After the estate had been distributed among the instituted legatees and before delivery of their respective share, the Commissioner of Internal Revenue (CIR) ruled that plaintiffs being donees and legatees should pay inheritance taxes. These were then paid under protest.
Plaintiffs argue that donation inter vivos is not included in the Administrative Code and if it does, it is unconstitutional because it violates Section 3 of the Jones Law, the Legislature has no authority to impose inheritance tax on donations inter vivos, and that a legal provision of this character contravenes the fundamental rule of uniformity of taxation. Nonetheless, CIR contends that words ‘all gifts’ pertain plainly to donation inter vivos.
Issue:
Whether or not the donations are subject to inheritance tax
Ruling:
The court held that the said donations are subject to inheritance tax because the phrase ‘all gifts’ as laid down in the case of Tuason v. Posadas refers to gifts inter vivos being considered as advances in anticipation of inheritance in such a way that it is considered as gifts inter vivos made in contemplation of death therefore there is no violation of any constitutional provision.
Gifts inter vivos, the transmission of which is not made in contemplation of the donor's death should not be understood as included within the said legal provision for the reason that it would amount to imposing a direct tax on
4BLM
ESTATE TAX CASE DIGESTS
Vidal de Roces v. Posadas, 58 Phil. 108
Facts:
On March 10 and 12, 1925, Esperanza Tuazon donated several parcels of land located in Manila to plaintiffs Concepcion Vidal de Roces and her husband, as well as one Elvira Richards. This was recorded in the Registry of Deeds. After subsequently taking possession of the said lands and its fruits, plaintiffs obtained the corresponding transfer certificates. In 1926, the donor died without leaving any forced heir and designated the sum of P5,000 to each of her donees. After the estate had been distributed among the instituted legatees and before delivery of their respective share, the Commissioner of Internal Revenue (CIR) ruled that plaintiffs being donees and legatees should pay inheritance taxes. These were then paid under protest.
Plaintiffs argue that donation inter vivos is not included in the Administrative Code and if it does, it is unconstitutional because it violates Section 3 of the Jones Law, the Legislature has no authority to impose inheritance tax on donations inter vivos, and that a legal provision of this character contravenes the fundamental rule of uniformity of taxation. Nonetheless, CIR contends that words ‘all gifts’ pertain plainly to donation inter vivos.
Issue:
Whether or not the donations are subject to inheritance tax
Ruling:
The court held that the said donations are subject to inheritance tax because the phrase ‘all gifts’ as laid down in the case of Tuason v. Posadas refers to gifts inter vivos being considered as advances in anticipation of inheritance in such a way that it is considered as gifts inter vivos made in contemplation of death therefore there is no violation of any constitutional provision.
Gifts inter vivos, the transmission of which is not made in contemplation of the donor's death should not be understood as included within the said legal provision for the reason that it would amount to imposing a direct tax on