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Alima Casedigest
Alima Casedigest
Alima Casedigest
MWF ( 2:00-3:00)
Ms. Angie Salec - Amer
Alima, Keith Alex L.
PART I: FACTS
During the lifetime of the decedent Juliana Vda. De Gabriel, her business affairs were
managed by the Philippine Trust Company (PhilTrust). The decedent died on April 3,
1979 but two days after her death, PhilTrust filed her income tax return for 1978 not
indicating that the decedent had died.
The BIR conducted an administrative investigation of the decedent’s tax liability and
found a deficiency income tax for the year 1997 in the amount of P318,233.93. Thus, in
November 18, 1982, the BIR sent by registered mail a demand letter and assessment
notice addressed to the decedent “c/o PhilTrust, Sta. Cruz, Manila, which was the
address stated in her 1978 income tax return.
On June 18, 1984, respondent Commissioner of Internal Revenue issued warrants of
distraint and levy to enforce the collection of decedent’s deficiency income tax liability
and serve the same upon her heir, Francisco Gabriel. On November 22, 1984,
Commissioner filed a motion to allow his claim with probate court for the deficiency tax.
The Court denied BIR’s claim against the estate on the ground that no proper notice of
the tax assessment was made on the proper party. On appeal, the CA held that BIR’s
service on PhilTrust of the notice of assessment was binding on the estate as PhilTrust
failed in its legal duty to inform the respondent of antecedent’s death. Consequently, as
the estate failed to question the assessment within the statutory period of thirty days,
the assessment became final, executory, and incontestable.