BIR Ruling [DA-008-98]

January 16, 1998 BIR RULING [DA-008-98] MEMORANDUM FOR : The Commissioner RE : BIR Ruling No. 108-96 (Sylvia C. Acosta) In response to the Memorandum dated July 17, 1997 of Executive Assistant II, Teresita M. Angeles, please be informed that after a careful review of the above-captioned ruling and the aforesaid Memorandum, this Office has come up with the following conclusions and recommendations: 1.) That the object of the complaint filed by Renato G. Dionisio in Civil Case No. 63892 against the defendants, Reynaldo Bonifacio D. Lacsina and Higino Honorato D. Lacsina was to establish his ownership over the properties mentioned therein, by reason of having inherited the same from his paternal grandmother Miguela de Leon-Dionisio by right of representation because his father Tereso Dionisio predeceased his grandmother and not to be included as an heir of his aunt, Isabel Dionisio Lacsina; 2.) That the court, in adopting the compromise agreement between the plaintiff, Renato G. Dionisio and defendants Reynaldo Bonifacio D. Lacsina and Higino Honorato D. Lacsina in Civil Case No. 63892 as basis for its decision, in effect, recognized the validity of the allegations in the complaint filed by Renato G. Dionisio; and 3.) Under Article 1603 of the Civil Code, if there are no descendants, ascendants, illegitimate children or surviving spouse, the collateral relatives shall succeed to the entire estate of the deceased. In other words, it is only in the absence of descendants, ascendants, illegitimate children and surviving spouse, that collateral relatives like Renato Dionisio could inherit from his aunt, Isabel Dionisio Lacsina. Accordingly, since the children of the deceased Isabel Dionisio Lacsina are still living at the time of her death, Renato Dionisio, her nephew cannot inherit from her, and therefore, in the instant case, Renato G. Dionisio could not be considered as an heir of Isabel Dionisio Lacsina. In view thereof, it is believed that BIR Ruling No. 108-96 is correct in stating that Renato G. Dionisio inherited from his paternal grandmother, Miguela de Leon-Dionisio and will only pay the inheritance tax for the following properties: 1. 1/3 of TCT No. 638; 2. 1/3 of TCT No. 614; 3. 1/3 of TCT No. 615; and 4. 1/2 plus 197 sq. m. of Tax Declaration No. C-011-01218 with the issuance of the corresponding tax clearance on his share in the properties of his deceased grandmother which were established to have been fraudulently transferred in the name of Isabel Dionisio-Lacsina provided that the corresponding estate and inheritance taxes due thereon in proportion to Renato's share have been paid applying the law enforced at the time of the death of his grandmother on November 10, 1957. Respectfully submitted: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)