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DIZON v. CTA/CIR
April 30, 2008
Petitioner: Rafael Dizon, in his capaci! as he "#$icial
A$%inisraor of he &sae
of he $ecease$ "ose 'ernan$ez
Respondent: CTA an$ CIR
Facts
"ose 'ernan$ez $ie$. A peiion for he pro(ae of his )ill )as *le$
)ih he +anila
RTC, )ho appoine$ he lae #pre%e Co#r "#sice Arsenio Dizon an$
A!. Rafael
Dizon -peiioner herein as a$%inisraor an$ assisan a$%inisraor,
respecivel!,
of 'ernan$ezs esae. "#sice Dizon hen *le$ an esae a re#rn )ih he
1IR
Reional Oce. The re#rn sho)e$ a nil -or co%pleel! zero esae a
lia(ili!. -The
ross val#e of he esae )as esi%ae$ a 456 %illion, )hile he
$e$#cions
presene$ a%o#ne$ o 4587 %illion.
The 1IR Reional Direcor hen iss#e$ a ceri*caion, sain ha he aes
$#e on
he ransfer of 'ernan$ezs properies ha$ (een f#ll! pai$, an$ %a!
(e ransferre$
o his heirs.
Thereafer, Rafael Dizon -)ho a his poin (eca%e he a$%inisraor a
his poin as
"#sice Dizon passe$ a)a! re#ese$ he pro(ae co#rs a#hori! o sell
so%e of
he esaes properies o pa! o9 'ernan$ezs cre$iors, na%el! ia(le
1an:,
1an#e $e ;In$ochine, +anila 1an: an$ ae Inves%en %illion as
$e*cienc!
esae a -435.8 %illion as he esae a iself, )ih he res of he a%o#n
(ein
s#rchares an$ penalies for lae pa!%en. The 1IR (asicall! re$#ce$
he
$e$#cions *le$ (eforehan$, an$ onl! he a%o#n ac#all! pai$ o he
cre$iors, an$
no he a%o#n ha )as $#e o he cre$iors a he i%e of he $eah of
"ose
'ernan$ez, )as allo)e$ as a $e$#cion.
The 1IR $enie$ he %oion o reconsi$er he a assess%en, so he case
)aselevae$ o he CTA, hen he CA, an$ *nall! he C.
Issue and Held: ?/N he $e$#ci(le a%o#n of he esae can (e a$@#se$
(! pos
$eah $evelop%ensBNO.
Note:The (#l: of he raio of he case is (ase$ on an evi$eniar!
iss#e. 1asicall!, in
he rials in he CTA an$ he CA, he 1IR presene$ evi$ence ha )ere
no for%all!
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o9ere$, )hich )ere consi$ere$ (! (oh co#rs. The 1IR relie$ on he
Cs r#lin in
Onate v. CA an$ Ramos v. Dizon, )herein he C allo)e$ he evi$ence
o (e #se$,
even if he sa%e )ere no for%all! o9ere$. allo)s as $e$#cions
fro% he val#e
of he ross esae he a%o#ns represene$ as clai%s aains he esae.II.
To ans)er he #esion on allo)a(le $e$#cion -i.e. )heher he
$e$#ci(le
a%o#n of he esae can (e a$@#se$ (! pos$eah $evelop%ens, s#ch
as
con$onaion of $e(s, he C #rne$ o he A%erican leal s!se%, on
)hich
he NIRC )as (ase$.A. There are )o A%erican heories on he
iss#e
5. In Propstra v. US, )here a lien clai%e$ aains he esae )as
cerainan$ enforcea(le on he $ae of he $ece$ens $eah, he fac ha
he
clai%an s#(se#enl! sele$ for a lesser a%o#n $i$ no precl#$e
he
esae fro% $e$#cin he enire a%o#n of he clai% for esae a
p#rposes. This principle is calle$ he EIthaca Trust
date-of-death
valuation principle.F2. The Inernal Reven#e ervice or IR, on he
oher han$, sa!s ha pos
$eah $evelop%ens sho#l$ (e a:en ino consi$eraion, an$ ha he
cre$iors clai% sho#l$ (e allo)e$ onl! o he een of he a%o#n
pai$1. O#r #pre%e Co#r ar%e$ he heor! sae$ in Propstra.
5. &la(orain on he EIthaca Trust $aeof$eah val#aion
principle,F he
G co#r sai$ in Propstra ha he esae a is (asicall! a a
i%pose$
on he ac of ransferrin proper! (! )ill or inesac!.2. 1eca#se he
ac on )hich he a is i%pose$ occ#rs a a ver! $isinc
i%e -i.e. he insance of $eah of he $ece$en, he val#e of he
proper! ransferre$ sho#l$ (e asceraine$ as of ha i%e.3. In
a$$iion, here is no 4hilippine la) ha $isallo)s or $isrear$s he
$aeof$eah val#aion principle. -Re%e%(er ha a sa#es are
consr#e$ strictissimi jurisaains he ain a#hori!.6. Also, in o#r
R#les of Co#r, he er% Eclai%sF is enerall! consr#e$ o
consis of hose $e(s )hich co#l$ have (een enforce$ aains
he$ecease$ in his lifei%e, or lia(ili! conrace$ (! he $ecease$
(efore
his $eah.III. Th#s, he clai%s eisin a he i%e of $eah are
sini*can o, an$ sho#l$ (e
%a$e he (asis of, he $eer%inaion of allo)a(le $e$#cions.
