Marcos II v - President PDF

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June 5, 1997 G. No. 120880 FERDINAND R. MARCOS II, petitioner, vs. COURT OF APPEALS, THE COMMISSIONER OF THE BUREAU OF INTERNAL REVENUE and HERMINIA D. DE GUZMAN, respondents. TORRES, JR., J.:Facts: Marcos died on September 1989. In June 1990, a special tax audit team was created for the purpose of ...

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June 5, 1997 G.R. No. 120880 FERDINAND R. MARCOS II, petitioner, vs. COURT OF APPEALS, THE COMMISSIONER OF THE BUREAU OF INTERNAL REVENUE and HERMINIA D. DE GUZMAN, respondents. TORRES, JR., J.:

Facts: Marcos died on September 1989. In June 1990, a special tax audit team was created for the purpose of conducting investigations and examinations of tax liabilities of former president Marcos. Upon the conclusion of their investigation, they issued a memorandum in 1991 stating that the Marcoses failed to file several tax returns from 1982-86 and a written notice of death in violation of the National Internal Revenue Code. Criminal charges were filed against Imelda Marcos and the Commission on Internal Revenue (CIR) caused the preparation of the Income Tax Return of the Marcoses. The BIR then issued several deficiency tax assessments. The CIR claimed that these were personally and constructively received delivered to the Marcoses but these that the deficiency tax assessments were not protested administratively within the 30 days following receipt of assessments. From February to May 19993, the BIR issued numerous notices of levy on real properties of the Marcoses. Ferdinand Marcos II, eldest son of former President Marcos filed a petition for certiorari and prohibition with an application for writ of preliminary injunction, questioning the actuations of the Commission on Internal Revenue in assessing and collecting through the summary remedy of Levy on Real Properties, estate and income tax delinquencies upon the estate and properties of former President Marcos despite the pendency of the probate proceedings on the will of the former’s father. He prayed for the (1) annulment and setting aside of notices on levy of real property (2) enjoining the Head Revenue Executive Assistant from proceeding with the auction of the real properties covered by the said notices. The Court of Appeals denied the petition as the deficiency assessments on the sale have become final and unappealable, therefore enforceable by the summary remedy of levy. Arguments of the Petitioner (Marcos II): (1) The notices of levy, notices of sale, and subsequent sale of properties of the late President Marcos effected by the BIR are null and void for disregarding the established procedure for the enforcement of taxes due upon the estate of the deceased which was for the claimant to present the claim before the probate court so that the court may order the administrator to pay. (2) "the numerous pending court cases questioning the late president's ownership or interests in several properties (both real and personal) make the total value of his estate, and the consequent estate tax due, incapable of exact pecuniary determination at this time. Thus, respondents' assessment of the estate tax and their issuance of the Notices of Levy and sale are premature and oppressive." Argument of BIR: (1) The state’s authority to collect internal revenue taxes is paramount. Thus, the pendency of probate proceedings over the estate of the deceased does not preclude the assessment and collection, through summary remedies, of estate taxes over the same. Issues:...