Marcos II v. CA digest

002 FERDINAND R. MARCOS II, petitioner, vs. COURT OF APPEALS, THE COMMISSIONER OF THE BUREAU OF INTERNAL REENUE !n" HERMINIA D. DE #U$MAN, respon"ents. #.R. No. %20&&0 '(ne ), %**+ TORRES, 'R.,  J.:

FF Bongbong Marcos sought for the reversal of the ruling of the Court of Appeals to grant CIR's petition to levy the properties of the late Pres. Marcos to cover the payment of his tax delinuencies during the period of his exile in the !".  #he Marcos family $as assessed by the BIR after it failed to %le estate tax returns. returns. &o$ever &o$ever the assessment assessment $ere not protested administrativ administratively ely by Mrs. Marcos and the heirs of the late president so that they became %nal and unappealable after the period for %ling of opposition has prescribed. Marcos contends that the properties could not be levied to cover the tax dues because they are still pending probate $ith the court and settlement of tax de%ciencies could not be had unless there is an order by the probate court or until the probate proceedings are terminated. Petitioner also pointed out that applying Memorandum Circular (o. )*+,* the BIR's (otices of -evy on the Marcos properties $ere issued beyond the allo$ed period and are therefore null and void. SC #he de%ciency income tax assessments and estate tax assessment are already %nal and unappealable and the subseuent levy of real properties is a tax remedy resorted to by the government sanctioned by "ection /) and /* of the (ational Internal Revenue Code. #his summary tax remedy is distinct and separate from the other tax remedies 0such as 1udicial Civil actions and Criminal actions2 and is not a3ected or precluded by the pendency of any other tax remedies instituted by the government.  #he approval of the court sitting in probate or as a settlement tr ibunal over the deceased's estate is not a mandatory reuirement in the collection of estate taxes. 4n the contrary under "ection *5 of the (IRC it is t he probate or settlement court $hich is bidden not to authori6e the executor or 7udicial administrator of the decedent's estate to deliver any distributive share to any party interested in the estate unless it is sho$n a Certi%cation by the Commissioner of Internal Revenue that the estate taxes have been paid. #his provision disproves the petitioner's contention that it is the probate court $hich approves the assessment and collection of the estate tax. On pres-ription the omission to %le an estate tax return and the subseuent failure to contest or appeal the assessment made by the BIR is fatal to the petitioner's cause as under "ec.) of the (IRC in case of failure to %le a return the tax may be assessed at anytime $ithin /8 years after the omission and any tax so assessed may be collected by levy upon real property $ithin ) years 0no$ 9 years2 follo$ing the assessment of  the tax. "ince the estate tax assessment had become %nal and unappealable by the petitioner's default as regards protesting the validity of the said assessment there is no reason $hy the BIR cannot continue $ith the collection of the said tax.

FACTS /. More More than seven years years since the demise of the late :erdina :erdinand nd ;. Marcos Marcos the former former Preside President nt of the Repub Republic lic of  the Philippines the matter of the settlement of his estate and its dues to the government in estate taxes are still unresolved. . Petition Petitioner er :erdina :erdinand nd R. Marcos Marcos II the eldest eldest son of the decedent decedent uestion uestions s the actuation actuations s of the responde respondent nt Commissioner of Internal Revenue in assessing and collecting through the summary remedy of -evy on Real Properties estate and income tax delinuencies upon the estate and properties of his father despite the pendency of the proceedings on probate of the $ill of the late president. ). 1une * /