BIR Ruling No. 172-84

November 6, 1984 BIR RULING NO. 172-84 100-00-00-172-84 S i r : This refers to your letter dated September 7, 1984 requesting for a legal opinion on the following questions: "In the case of the estate of a deceased person where some of his properties which are conjugal in nature are located abroad: 1. Is the administratrix-heir obliged to declare assets abroad as part of the estate of the deceased, if said assets are subject to recovery as the same has been surreptitiously taken by other persons? 2. If I have to declare the same as part of the estate even if the same is subject to recovery, should these properties be considered part of the estate in the computation of the estate and inheritance taxes? Thus, before the same is actually recovered, should taxes be levied and paid on these properties before it is recovered? In reply, please be informed that Section 100 of the Tax Code, as amended provides: "Sec. 100. Gross estate . The value of the gross estate of the decedent shall be determined by including the value at the time of his death of all property(s), real or personal, tangible or intangible, wherever situated , Provided, however , That in the case of a non-resident decedent who at the time of his death, was not a citizen of the Philippines, only that part of the entire gross estate which is situated in the Philippines, shall be included in his taxable estate." (emphasis ours) Such being the case, the value of all properties of a deceased Filipino citizen located abroad shall form part of his gross estate and declared in the estate tax return to be filed pursuant to Section 105 of the Tax Code. Moreover, of as represented, the said assets have been surreptitiously taken by other persons, and are the subject matter of a recovery suit filed abroad, said properties which the administratrix-heir strongly believed to be conjugal in nature should nonetheless be declared as part of the gross estate of the decedent, and after the allowable deductions, the estate tax due on the net estate shall be paid, in accordance with Section 107 of the Tax Code, as amended. adc Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner