BIR Ruling

December 3, 1969 The Regional Director Revenue Region No. 7 Kalaw Bldg. Dasmarias St. Manila S i r : Enclosed is a copy of the letter of Mr. Pablo M. Silva of the Filipino Pipe and Foundry Corporation, dated November 28, 1969, with the request that the allegations therein be verified and this Office be informed of the result of your verification. If, as alleged by Mr. Silva, his tax liability exclusive of penalties, amounts to P15,249.00 only and that we have duly annotated liens on properties with market values over and above his tax liability or liabilities (see properties mentioned in letters), then his request for the lifting of the Tax Lien annotated on the Title (TCT No. 2458) of his property located in Lantana and Boston Streets in Quezon City, may be granted subject to the condition that the proceeds thereof shall be applied to his tax liability or liabilities. In this connection, you are advised that under the law (Sections 316, 318, 325, 328 and 330 of the Tax Code) it is clear that only so much of the property of the taxpayer sufficient to pay the taxes and penalties, plus the expenses incurred in effecting the distraint or levy and sale of the property, should be distrained and/or levied upon. The authority to distraint or levy upon property of the taxpayer. Thus, in the case of Maria B. Castro vs. Collector of Internal Revenue, the Supreme Court citing American jurisprudence, said: cdll " '. . . If a citizen's rights and property are to be safe then they must be kept safe against little exactions as well as against large encroachments. The constant drip of water will wear away the largest stone; and if the sovereign by constant inroads in small things is allowed to take the citizen's property, then the rights of private ownership are gone to the real Limbo. Courts are to protect the rights of citizens that is one of the reasons for the existence of judicial tribunals.' (Lunsden vs. Erstine, 1943 Ark. 172 SW 2d 409, 147 ALR 1132, 1136-37)" (C.T.A. Case No. 141, Maria B. Castro vs. Collector of Internal Revenue, Resolution dated October 31, 1955) Be guided accordingly. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue