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  • Dayrit Vs CIR

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    The heirs of Marta and Toribio Teodoro filed estate and inheritance tax returns that were later assessed deficiencies by the BIR. [1] The heirs requested reconsideration and submitted a position paper within 30 days. [2] However, over a year later the Commissioner filed a collection suit in court before ruling on the reconsideration. [3] The court held that the assessments were final, executory and demandable since the heirs did not submit the requested position paper and failed to appeal the assessments to the Court of Tax Appeals within 30 days.

    Original Description:

    digest. Tax remedies under Prof. Dina Lucenario Tax 2 UP College of Law

    Original Title

    Dayrit vs CIR

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    The heirs of Marta and Toribio Teodoro filed estate and inheritance tax returns that were later assessed deficiencies by the BIR. [1] The heirs requested reconsideration and submitted a position paper within 30 days. [2] However, over a year later the Commissioner filed a collection suit in court before ruling on the reconsideration. [3] The court held that the assessments were final, executory and demandable since the heirs did not submit the requested position paper and failed to appeal the assessments to the Court of Tax Appeals within 30 days.

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    107 views2 pages

    Dayrit Vs CIR

    Uploaded by

    estvanguardia
    The heirs of Marta and Toribio Teodoro filed estate and inheritance tax returns that were later assessed deficiencies by the BIR. [1] The heirs requested reconsideration and submitted a position paper within 30 days. [2] However, over a year later the Commissioner filed a collection suit in court before ruling on the reconsideration. [3] The court held that the assessments were final, executory and demandable since the heirs did not submit the requested position paper and failed to appeal the assessments to the Court of Tax Appeals within 30 days.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Dayrit vs.

    Cruz
    165 SCRA 571, GR L-39910, 26 September 1988

    Facts: 
    Cecilia Teodoro Dayrit (as administrator) along with her siblings heirs of the Sps. Marta
    and Toribio Teodoro who died testate and intestate on 1 July 1965 and 30 August 1965,
    respectively filed this case to question the Collection Suit filed by the Commissioner at
    the CFI. 

    The heirs separately filed estate and inheritance tax returns for the estates of the
    spouses with the BIR. In 1972, the BIR issued deficiency estate and inheritance tax
    assessments for P1,662,072,34 and P1,747,790.94 respectively for the Estate of Dona
    Marta and P1,542,293.01 and P518,458.72, respectively for the Estate of Don Toribio,
    these assessments were received by Cecilia on August 14, 1972. On October 7, 1972
    the heirs asked for reconsideration as the assessment was allegedly contrary to law and
    not supported by sufficient evidence. In the letter asking for reconsideration, the heirs
    asked for a period of 30 daysto submit their position paper. 

    Meanwhile, then President Marcos issued a PD for tax amnesty and the heirs tried to
    avail of the benefits thereof.  However, the conditions for granting of a tax amnesty were
    not fulfilled and the Court ruled that they are not entitled to claim the benefits of such.   

    One year and 5 months after the filed a reconsideration of the BIR's assessment, the
    Commissioner filed in the CFI a claim against the estate of the Teodoro spouse.

    The heirs, of course, opposed on the ground that since the Commissioner hasn't yet
    ruled on their reconsideration the Judge (of the CFI) has no jurisdiction to entertain the
    Commissioner's claim against the estate of their parents.

    Issue: Whether the assessment is final, executory, and demandable and hence a claim
    against the estate is proper.

    Held: Yes, the assessment is already final, executory and demandable.

    The circumstances of the case would show that it took the Commissioner more 1 year
    and 5 months from the date the petitioner filed a reconsideration of the assessment.
    The defense of the petitioner that it is not yet demandable due to the failure of the
    Commissioner to rule on the reconsideration is  untenable. The act of the
    Commissioner, in filing an action for allowance of the claim for estate and inheritance
    taxes, may be construed as a denial of the taxpayers’ request for reconsideration. 

    Moreover, although it was shown that petitioner asked for a reconsideration and asked
    for 30 days to file a position paper, citing the basis for the opposition, such position
    paper was never submitted.
    The remedy of the taxpayer should have been to dispute  the assessment From the
    date of receipt of the copy of the Commissioner’s letter for collection of taxes,and upon
    denial thereof, they have a period of 30 days to appeal the case to the Court of Tax
    Appeals, instead of filing this case for Certiorari. 

    Tax assessment made by tax examiners are presumed correct and made in good faith.
    A taxpayer has to prove otherwise. Failure of the taxpayers to appeal to the Court of
    Tax Appeals in due time made the assessments final, executory and demandable.

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