Title
Clara Diuangco Palanca vs. Commissioner of Internal Revenue
Case
G.R. No. L-16661
Decision Date
Jan 31, 1962
In the case of Clara Diuangco Palanca v. Commissioner of Internal Revenue, the court ruled in favor of the Commissioner, stating that the government's right to collect estate and inheritance taxes had not yet prescribed, even if the warrant of distraint and levy was not executed.
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Case Digest (G.R. No. L-16661)

Facts:

  • Gliceria Diluangco died on April 18, 1947.
  • Testate proceedings were filed for the settlement and distribution of her estate.
  • The executor of the estate failed to file the required tax return.
  • The Commissioner of Internal Revenue discovered this and required the executor to file the tax return.
  • The estate was tentatively assessed estate and inheritance taxes, including a surcharge for failure to file the return on time.
  • The executor requested reconsideration of the surcharge, but it was denied.
  • An internal revenue examiner reported that the estate subject to tax was higher than initially reported, and a new assessment was made.
  • The Commissioner issued a warrant of distraint and levy for the satisfaction of the deficiency taxes.
  • The warrant was not executed due to requests for reinvestigation and the placing of real properties under constructive levy.
  • The heirs raised the defense of prescription, alleging that the government's right to collect the taxes had already prescribed.

Issue:

  • (Unlock)

Ruling:

  • The court ruled in favor of the Commissioner of Internal Revenue, stating that the right to collec...(Unlock)

Ratio:

  • The issuance of the warrant of distraint and levy began the summary remedy of distraint and levy, and it was not necessary for the warrant to be actually executed to be effective.
  • The court rejected the arguments that the warrant was defective and that it was not served on the taxpayers themselves.
  • The warrant ...continue reading

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