BIR Ruling

January 18, 1973 The Revenue Director Revenue Region No. 1 Baguio City S i r : This refers to your letter dated September 21, 1972 requesting information on whether or not the exclusive property (paraphernal or capital) registered in the name of a spouse may be properly levied upon to satisfy the taxes assessed only in the name of the other spouse. cd In reply, you are informed that Articles 138 to 139 of the New Civil Code provide, viz.: "Art. 136. The wife retains the ownership of the paraphernal property." "Art. 137. The wife shall have the administration of the paraphernal property, unless she delivers the same to the husband by means of a public instrument empowering him to administer it. In this case, the public instrument shall be recorded in the Registry of Property. As for the movables, the husband shall give adequate security." "Art. 138. The fruits of the paraphernal property form part of the assets of the conjugal partnership, and shall be subject to the payment of the expenses of the marriage. The property itself shall also be subject to the daily expenses of the family, if the property of the conjugal partnership and the husband's capital are not sufficient therefor." "Art. 139. The personal obligation of the husband cannot be enforced against the fruits of the paraphernal property, unless it be proved that they redounded to the benefit of the family." Whether the paraphernal property is administered by the wife or the husband, the fruits of the wife's paraphernal property belong to the conjugal partnership. (Art. 153, par. 3). If the wife administers the paraphernal property, she shall receive the fruits and, after deducting the expenses incurred in the administration and preservation of the paraphernal property, she shall deliver the net income of the fruits to the husband who is the administrator of the conjugal partnership. (Agapito vs. Mole 50 Phil. 779) Under the foregoing provisions of law and jurisprudence, this Office believes that collection of the tax assessed against the taxpayer cannot be enforced against the paraphernal property of his wife. However, the collection of the tax can be enforced against the fruits of the paraphernal property, if any. aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue