BIR Ruling [DA-428-05]

October 19, 2005 BIR RULING [DA-428-05] Section 9 (D); BIR Ruling No. DA-034-2004 Mr. Jesus O. Vinluan Binmaley, Pangasinan S i r : This refers to your letter dated September 20, 2005 requesting authority to pay the estate tax in BIR-Pangasinan. As represented, you are selling a piece of your father's property in Binmaley, Pangasinan and that you have agreed with the buyer that upon closing the sale, the buyer who is a resident of the same place will assume payment of all taxes including the estate tax in BIR-Pangasinan. However, BIR-Pangasinan would not accept payment for the reason that the death certificate of your father was registered in Manila where he died while undergoing medical treatment. Your father, Antonio C. Vinluan was a bona fide resident of Binmaley, Pangasinan. All of your father's assets are located in Binmaley, Pangasinan. In reply, please be informed that except in cases where the Commissioner of Internal Revenue permits, the estate tax return shall be filed with an authorized agent bank, or Revenue District Officer, Collection Officer, or duly authorized Treasurer of the city or municipality in which the decedent was domiciled at the time of his death or if there be no legal residence in the Philippines, with the Office of the Commissioner (Section 90(D), Tax Code of 1997). In the case of Abella v. Commission on Elections , 201 SCRA 253, it was explained that the determination of a person's legal residence or domicile largely depends upon the intention that may be inferred from his acts, activities and utterances. "Residence," as used in the election law imports not only an intention to reside in a fixed place but also personal presence in that place, coupled with conduct indicative of such intention. "Domicile" denotes a fixed permanent residence to which when absent for business or pleasure, or for like reasons, one intends to return. Hence, in Romualdez v. RTC (226 SCRA 408), the Court explained that in order to acquire a new domicile by choice, there must concur (1) residence or bodily presence in the new locality, (2) an intention to remain there, and (3) an intention to abandon the old domicile. There must be animus manendi coupled with animus non revertendi . The purpose to remain in or at the domicile of choice must be for an indefinite period of time; the change of residence must be voluntary; and the residence at the place chosen for the new domicile must be actual. (Cited in BIR Ruling No. DA-034-2004 dated January 26, 2004). TIaCAc It appears that your father, Antonio C. Vinluan who was a resident of Binmaley, Pangasinan had no intention to abandon his old domicile since all of his assets are located therein and the only reason he was in Manila was to undergo medical treatment. Clearly, his intention was to go back to Binmaley, Pangasinan after his treatment. However, he died while undergoing treatment. In view of the foregoing, this Office is of the opinion that the domicile of the late Antonio C. Vinluan at the time of his death is Binmaley, Pangasinan. This serves as an authority for the Revenue District Officer concerned to accept payment of the estate tax by the buyer on behalf of the heirs of Antonio C. Vinluan. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service