CTA Case No. 1964 (Decision)

' I Lll,'P \liB I\. APl-lE, L8 � � 1 :"4 I - 1 � t r ' 2 " � 276

'10.F1J!4 2 r ;,~ est. te, thrnu .,11 f!":i'"~ t�al reque~ted reconsi erut. on of' the assessment -rn. a l ....ter \ 1er nt y cletu.i � ot tho ,~ ate p L ~he t al umo~nt of �2?2, 760. 86, not 1ri!Olut.i111� M1e 1.! an.. f~r t, Y~ $ due 01: tha NZIOUrJ.t Q f 11212, ( 3. t3, ~ '� ."'!h T' pr s nt~ t v .lu or the d ......Jent * on .. � vh � 'l\3SS~"''�$llt De pa rtment to.t~ and 1 1.- tt.::.t t ..nt.. ~1 l<! in ..: n i �� 'l',j flt;' unt ot �;;? )81 '" ~i() ( n.... ' ~':'!{~ *�8, 35 Q!i � e n - � de""~"" .A....;..t...,; ,... pore :U1 nd nhor t<: ne. ~�-I'J ' or on - hc.lf t) .' t'l ,...clone r ont� :1 � nteres, U:') to '"'Y I. 277

- 3 1 7 eo p t d r ���� �1 _!- 1.t .. 0 ., �.. . . . ��.. �.. " � io � � �.. � � � � in l �t � tt na n . ' l- t~ � �ou b n 6. t� i � .�. .... ��� o� l�l �t- �� ' 12, 1"" s, , 3, 19 l to �o ~ y . ' n .. I ti l t y .. ~.'135 . 37 til t0 e 0 . 17 .. d 110 o, 196 . ' . y lt 196? to ni ;r �tor � .' r 11' 19 278

D... ~ \.10' - <.Ll !h. � lKI . 196' l I' .r t .. :; t.l t .' ..l .. e rer L r the cr..)<il � a � ~ �t or :.r n:r t ts tut or n . ion J .... t � tio r , U1� r~ held .r j l 1 .- ::i ion of til� t.. � ~ou.rt in .t e ~ .. se c the � f ..er ti ;0 1 �t tl14 c e on .. . � _, ~;2~0 tie b J!( ei it� lir ' �n.1 .h . r~ s u~ ,..f � .1' hA t t ..btl J th~ .l -"� r; '"'(~ - I" t1 t:he vOU.�:t;: it for he ril)J tr) ro . ;.1. \tO .! .., l ��w 0 .. e ,� 1_ .~o.. &. <:> G r or t .ir.o. ~..oo ..rt J. ~""it ion. . 1 .1 ctlon �o t b:' co nj. ~nee t.11. t iG ~~~ . ... L �, l I p ti.t ert to tbls i�~, .:U .s .epubl t c I ! 125, uor ' ' rly , ct 0 7 n 1 1 th r 0 279

D~C I ..iiOll ... cr:~ ;Hv .... EO . 1964 5 penaltles imposed in relation thereto, or other mt>'tters ~rL.. ing unuer the �-ation.-'11 n- In~ernal .. evenue vode or ot.ler law or n rt of law aJrtdnistered by the Lureau of ternal .~~.evenue; X XX XXX XXX XXX "'ac . 11 . v. o may a.T.h>e::\1 ; effect of a;p )enl . - .cy person, associa,:;ton or cor- p.;t�ation adversely affected by a decision or ruline of the ~ommission.. r of Intern.."J.l ~ ~venut;:, the ~ollec�tor of ::;ustofls or an� proViJ.~Cial 0!' Ci't;y Poard Of t~SS..JS!:;Y'C:lt i p- pealS may file an np,;eal in the Court of ~rl'.x H).>e~lls v�li th5.n t ..lirty d.-:tys after the rt~ce1pt of such .,1 clsion or ruling . l.o Ulveal taken t.:O uhe vOUrt: Of ~aX I~ Har::.ls from the decision of tl'J.e c~..>nu:��issJ�. n- t.Jl'~ of Internal devenue or the ~ollector o�r Ct stom!.> r;hc.ll suspend the oaymant , levy, strai J.t , anu/or sale of :.ny prop �rty ot ttle ta::...'< yer ror the satisfaction of l1ir.; ta.c liahllity c.d ,H'OI!id3d by existing la1.r.: .?rovided, hovrever, Th:.:�t when in the opinion O.L t;1e ~ourt the collection by the J�ureau o Internal !tevenue ol" the Co!ru"'li;:.sioner of ustmns may jeot,f'l'<iize thll iHterest of ":he GovP.rr>..n;,ent end/or the axpayer the ..:ourt at ar~1 r;tage of t:he J.i'roeeedi:n!"; mt:Y suspend the <:laid coller,:;tlon :u1d raquire the ta:x- puyer either to de 1wsi t the at.ou.nt clalned 01 to .f'.lle a surr~t~r bond for not n ore than doubJ.e the amourrt; \�tith the Court . BetLled is c.he rule ti:1at all final G.eeisions of the ~omrJis., oner of Internal Revenue under oection 11 of hepublic Let ~o. 1125 re appealable to tho Gourt of .L'ax 1 pet:tls aud that o e th t threaten~ col- lect:on t.h.rm: gh administrative remedies nrovided by lt;it�!, as 1n the p:r�esent C<J se , is considered a final and c.ppealable decision (vt:; . ;}tephen ' ::; Associatio � Collect.o:r of Internal devenue , 10�+ 1'hil . 314-; Rafael

6 hl n 1"' r eo� ery t. tna 0' . ('}f ~ X "" er t pp � la pt t�s.l n 0 ction 3o6 t .e 1: wh1.b .: (),1'1, ~unr thtW# 6 0 h :r lall�� � '�he lf:Jl �:ct1o 11 o ~ p.Jbl c !t t .... e .to 11 l ,;,.vli y ot 281

'' )l.J ! l�~ LOti ... Gl\a ..:dJ.u � 1964 7 :u~vet1t.h.: t th t 11:., at'ter t,he- v t;tt:�:r� lie.- rer..'let e:l n rtru 1 ...eels [Qn� ..:ti:t(n:io;:'l ,306 of th'C r..:~x ;"tlrL: ,. on the .;ttwr ttt3t:1d, t'~qUi ~S iJ yr: e.n~ Of th ta_::;. fi!'St 'be "'f'"'fl H taX:[.'O;.N;~l" ct..rs ott~$tton in S1Jit th;; lu, l.i.t.r of such payment . It is not ll.,i.!f'!!':": ,.. 't.T'Y tha te 1 �n!t..; tJ);' e r X i:... t' t: rot st; he ""~ t...n.; .. in to action 1 t 282

1' ~ e t t: c �J.on '* o u a.n b;; th- "" rttJ1 a n �l" 1t l s i ~ 1 to :r uL .,. th t . .... 0 �~.r~th :'>l.r- e1 � c t " ' (t ~.il� 1 to ts __ e1aior~ a;.s l-e--nt fl�,., t ....._ 7h tl 1 � lhns, arr~c tf: i ... ::')~ h it" .h ,....,.,,,.,. ... 1 f pli>bt1c Q ... to . 1 ~c ;;. tho r1 lt, !) qU.O.'J.tlon tb~ 1 Ltty of ~ t X l.t>VOltt$1.,. \l~ � ~tn �rno-;. 1 P*ty1:n~. th �x tl" l u , !0 (j ion 3 � 1 f!nr: .1. t t .s :so for 283

... '.;r.;rm~ :, .. rio. '\.� 11~ v.s. t96~i� / 9 cit.l� 284

rJc�~!.l ... ' 195'5 did ... r; � j �H.o ;i(). 1964 10 � t th 1 .. f e ;lno l'h.' 1 � u.e in th .. �n�t , ..h? lnv o.. on J ;�~, 19':;.5 t; Ol'l l hz �� .;,q .o ). .o n o"': 1 ;. '� ftv)t :tn 1s_vut-1) .~o .. e the '.r.��t ... �0 ("'y Hoc Llo v . u"' .u. t 1 ' 1 l � 1J � Wd..L. 98 ) . 'lh. OV1 1, 2 �. ov c:. aw t n t.t;H1~ �y 2, 19/5, no , b :r ��. 19o2; thE vile ~0 . at l'te ne s ou 1' ;es tt ... ::.. \o{ o..~.� t' Ol th~ 1 t t r ,a ( � X 5t. ll.l. not rt'! eor_.J .;c�,u. e thtt th law () en Jl.\ft ..dOt b r 1+, 1962 (ha }. i � tr.~ or.. e c ;to> ank v. !ot~Ol' l tenaneio .t.J e J.in .-:ot ~J. � , � �� , .~ .-::..7936 r:t.d f. - 27Y.37, AU �c ~~ , 19 4 � u ..e on1 oture ,f~ v o.11 b.nz rMo s ,et.:i.tioner 1\.�:l::~d 1,, t ;l"' �Jas ... to ro i.lee , .d tn � .� r o. t 285

286

HC, 1$ � 12 :n, ro 'Oit o: n eo t !.lnt oont . t 1' t_ in - .3250 .�l � c ... t on h � 1 "a .1 ct.... � f X X 287

D~I'l<J- ... c to. I .�� vA~i; 19~4 13 a �oth~r e .r 1 .ical;ion asue J t :.t::r I S.:.lO ld bn 00 e1 h..,.t. .n t. t ~ �t i fif!>l t ! � n ' � w!o-mt i� att 1 0 1.., t th of ~\'! . 1 ~ o� ' tJClllUu.ry-~ o 193 . was a'till ).... ,e J~n Janu::rY ~) . t;, ~ t !. n nnl~" to ,.,he value of l . c .rti c ion s t tt ~ l� v ot' 1 r on J ... - t. oor.. "~Y v� �� t � t t 1 e t�ti. 'ic tto , consideri " be pr !' 0 1T.tit l icy . trust ill' COt't- ~t 1ne W'$ l.. .cnt.. ,, ot1> ehrnrTe or a. nir en..:. 1 tn the t ic of tt '? 1 \<1 of' Ja ' 30, 1 2 r. .tt-:. .r f.s noth � 1 n the . cnm:.9nt t:h f"�' ~ ..p.,.:t - ~ t t a rt f _e .tion f;p ;re 4 J.. 1 r of c u t � se 1 on n...d ��e� tif c �1o1 is s tl . ctm:jl' 288

.... L ..... 1/ v 1 ),;~ 1 .; '1 �61� 14- p�?.) rt a in 1962 ,, t f. t- e n r c n '.nu� � th " i g th in 19 � vI :r ._ rt . ~ '� at ~ �t. �. these 1 n J9 2 0 1" in tho y r n <!C):'j,. f\ b .d t thrt'lt !}' ' t�' irJ.~ " ~~ , ( t.uoo;.er v. iX t 3ttpr�~) . I J i t () () ! a UG- a~ n ,, t . ~ eol1. ct ir. nt or .~� ., ;5r..; 54 t r st tro 4, 19v7 'rh.:.::-n "mS it:'! CU ... t Ohtcl: .:r. 10 , 1968 1. t C' nt �rr:� out y t � 0 ~a. J t . . .. 0 c �.ion hr y tr, t '1.a ~o r:.t rc.t.� tm > e �:tt r� <4 pot~ ant �nc� u~. of ,,555,. 9i "' t. 1 .. o :r ..