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De Roces Vs Posadas
De Roces Vs Posadas
De Roces Vs Posadas
1. INHERITANCE TAX; GlFTS 'INTER VlVOS"; SECTION 4. ID.; ID.; ID.; JONES LAW.—The circumstance that the
1540, ADMINISTRATIVE CODE.—The gifts referred to in Administrative Code was prepared and compiled strictly
section 1540 of the Revised Administrative Code are, in accordance with the provisions of the Jones Law on that
obviously, those donations inter vivos that take effect matter should not be overlooked and that, in a compilation
immediately or during the lifetime of the donor, but are of laws such as the Administrative Code, it is but natural
made in consideration of his death. Gifts inter vivos, the and proper that provisions referring to diverse matters
transmission of which is not made in consideration of the should be found. (Ayson and Ignacio vs. Provincial Board
donor's death, should not be understood as included of Rizal and Municipal Council of Navotas, 39 Phil., 931.)
within the said legal provision for the reason that it would
be equivalent to levying a direct tax on property and not 5. PLEADING AND PRACTICE; DEMURRER TO THE
on the transmission thereof, which act is not within the COMPLAINT; STEPS TO BE TAKEN WHEN THE
scope of the provisions contained in Article XI of Chapter PLAINTIFF HAS NO CAUSE OF ACTION.—The
40 of the Administrative Code referring expressly to tax demurrer interposed by the appellee was well-founded
on inheritances, legacies and other acquisitions mortis inasmuch as it appears that the complaint does not allege
causa. facts sufficient to constitute a cause of action. When the
appellants refused to amend the same, in spite of the
2. ID.; ID.; ID.; INTERPRETATION.—Such interpretation of court's order to that effect, they voluntarily waived the
the law is not in conflict with the rule laid down in the opportunity offered them and they are not now entitled to
case of Tuason and Tuason vs. Posadas (54 Phil., 289), have the case remanded for any further proceedings,
wherein it was said that the expression "all gifts" refers to which would serve no purpose altogether in view of the
gifts inter vivos, because the law considers them as insufficiency of the complaint.
advances in anticipation of inheritance in the sense that
they are gifts inter vivos made in consideration of death. APPEAL from a judgment of the Court of First Instance of
In that case, it was not held that that kind of gifts Manila. Concepcion, J.
consisted in those made completely independent of death The facts are stated in the opinion of the court.
or without regard to it. Feria & La, O for appellants.
Attorney-General Jaranilla for appellee.
Our interpretation of the law is not in conflict with the were later instituted as the former's legatees. For this
rule laid down in the case of Tuason and Tuason vs. reason, the law considers such transmissions in the form of
Posadas, supra. We said therein, as we say now, that the gifts inter vivos, as advances on inheritance and nothing
expression "all gifts" refers to gifts inter vivos inasmuch as therein violates any constitutional provision, inasmuch as
the law considers them as advances on inheritance, in the said legislation is within the power of the Legislature.
sense that they are gifts inter vivos made in contemplation "Property Subject to Inheritance Tax.—The inheritance
or in consideration of death. In that case, it was not held tax ordinarily applies to all property within the power of
that that kind of gifts consisted in those made completely the state to reach passing by will or the laws regulating
independent of death or without regard to it. intestate succession or by gift inter vivos in the manner
Said legal provision is not null and void on the alleged designated by statute, whether such property be real or
ground that the subject matter thereof is not embraced in personal, tangible or intangible, corporeal or incorporeal."
the title of the section under which it is enumerated. On (26 R. C. L., p. 208, par. 177.)
the contrary, its provisions are perfectly summarized in the In the case of Tuason and Tuason vs. Posadas, supra, it
heading, "Tax on Inheritance, etc." which is the title of was also held that section 1540 of the Administrative Code
Article XI. Furthermore, the constitutional provision cited did not violate the constitutional provision regarding
should not be so strictly construed as to make it necessary uniformity of taxation. It cannot be null and void on this
that the title contain a full index to all the contents of the ground because it equally subjects to the same tax all of
law. It is sufficient if the language -used therein is those donees who later become heirs, legatees or donees
expressed in such a way that in case of doubt it would mortis causa by the will of the donor. There would be a
afford a means of determining the legislator's intention. repugnant and arbitrary exception if the provisions of the
(Lewis' Sutherland Statutory Construction, Vol. II, p. 651.) law were not applicable to all donees of the same kind. In
Lastly, the circumstance that the Administrative Code was the case cited above, it was said: "At any rate the argument
prepared and compiled strictly in accordance with the adduced against its constitutionality, which is the lack of
provisions of the Jones Law on that matter should not be uniformity, does not seem to be well founded. It was said
overlooked and that, in a compilation of laws such as the that under such an interpretation, while a donee inter vivos
Administrative Code, it is but natural and proper that who, after the predecessor's death proved to be an heir, a
provisions referring to diverse matters should be found. legatee, or a donee mortis causa, would have
(Ayson and Ignacio vs. Provincial Board of Rizal and
114
Municipal Council of Navotas, 39 Phil., 931.)
The appellants question the power of the Legislature to
impose taxes on the transmission of real estate that takes 114 PHILIPPINE REPORTS ANNOTATED
effect immediately and during the lifetime of the donor,
Vidal de Roces vs. Posadas
113
to pay the tax, another donee inter vivos who did not prove
to be an heir, a legatee, or a donee mortis causa of the
VOL. 58, MARCH 13, 1933 113
predecessor, would be exempt from such a tax. But as these
Vidal de Roces vs. Posadas are two different cases, the principle of uniformity is
inapplicable to them."
and allege as their reason that such tax partakes of the The last question of a procedural nature arising from the
nature of a land tax which the law has already created in case at bar, which should be passed upon, is whether the
another part of the Administrative Code. Without making case, as it now stands, can be decided on the merits or
express pronouncement on this question, for it is should be remanded to the court a quo for further
unnecessary, we wish to state that such is not the case in proceedings. According to our view of the case, it follows
this instance. The tax collected by the appellee on the that, if the gifts received by the appellants were not given
properties donated in 1925 really constitutes an mortis causa, the same would not be subject to the payment
inheritance tax imposed on the transmission of said of an inheritance tax and said appellants would have the
properties in contemplation or in consideration of the right to recover the sums of money claimed by them. Hence
donor's death and under the circumstance that the donees the necessity of ascertaining whether the complaint
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contains an allegation to that effect. We have examined contemplation of the donor's death. Presumptions are of
said complaint and found nothing of that nature. On the two kinds: One determined by law which is also called
contrary, it may be inferred from the allegations contained presumption of law or of right; and another which is formed
in paragraphs 2 and 7 thereof that said donations inter by the judge from circumstances antecedent to, coincident
vivos were made in consideration of the donor's death. We with or subsequent to the principal fact under
refer to the allegations that such transmissions were investigation, which is also called presumption of man
effected in the month of March, 1925, that the donor died (presunción de hombre). (Escriche, Vol. IV, p. 662.) The
in January, 1926, and that the donees were instituted Civil Code as well as the Code of Civil Procedure
legatees in the donor's will which was admitted to probate. establishes presumptions juris et de jure and juris tantum
It is from these allegations, especially the last, that we which the courts should take into account in deciding-
infer a presumption juris tantum that said donations were questions of law submitted to them for decision. The
made mortis causa and, as such, are subject to the payment presumption which the majority opinion wishes to draw
of inheritance tax. from said section 1540 of the Administrative Code can
Wherefore, the demurrer interposed by the appellee was neither be found in this Code nor in any of the
well-founded because it appears that the complaint did not aforementioned Civil Code and Code of Civil Procedure.
allege facts sufficient to constitute a cause of action. When Therefore, said presumption cannot be called legal or of
the appellants refused to amend the same, in spite of the law. Neither can it be called a presumption of man
court's order to that effect, they voluntarily waived the (presunción de hombre) inasmuch as the majority opinion
opportunity offered them and they are not now entitled to did not infer it from circumstances antecedent to,
have the case remanded for further proceedings, which coincident with or subsequent to the principal fact which is
would serve no purpose altogether in view of the the donation itself. In view
insufficiency of the complaint.
116
115
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