COLLECTOR V.

DE LARA (multiplicity of situs)

FACTS:
Appeal: CTA decision where assessment for estate and
inheritance tax on Hugo H. Miller is modified and Collector is to
pay 2047.22 pesos for estate taxes due. Failure to pay within 30
days will result in 5% surcharge and interest.
Hugo H. Miller from Santa Cruz, California
came to the PH where he was connected to the public
school system as a teacher, later a superintendent.
retiring under Osmeiia Retirement Act, he got a position in
Ginn & Co. book publishers in NY until the start of the
Pacific War.
1922-Dec. 7, 1941: stationed at PH but also covered
JP and CN. sold books for Philippine schools.
stayed at the Manila Hotel (1922) and never in any
residential house in the PH , even when his wife came to
visit. Upon her death (1931), he transferred to Army and
Navy Club until the outbreak of Pacific War.
Jan. 14, 1941: execution of last will and testament in SC,
California.
Dec. 7, 1941: Ginn & Co. closed and he joined Board of
Censors of the US Navy which eventually lead to his
capture by the Japanese forces during the war and
reportedly executed (Mar. 11, 1944)
Ancillary proceedings were filed by executors (BOA, Natl Trust &
Savings Assoc. SFC), as well as estate and inheritance tax return
with Collector, covering only shares of stocks issued by PH
Corps; P269.43 for taxes and P230.27 for inheritance taxes
Collector assessed (made known to executor April 3, 1950),
and De Lara (estate Ancillary Administrator) protested at
the total of 77300.92 pesos (Jan. 16, 1954)
In determining the gross estate of a decedent, under Section
122 in relation to section 88 of our Tax Code, it is first necessary
to decide whether the decedent was a resident or a non-resident
of the Philippines at the time of his death.
CTA: Miller was considered a resident of the PH at the time of his
death due to length of stay, thus imposing taxes on intangible
properties in the US.
residence and domicile used interchangeably by Court, not
affected by actual residence.
despite being a non-resident of the PH, only taxable
properties are PH shares of stocks under the doctrine of
mobilia secuuntur persona.

 but his activities are with respect to the intangibles,

lead him to avail of PH laws and benefits; thus
leading taxation to not be limited to California, but
also to the PH. Actual situs of the shares of stock,
corporation itself are in the PH, and rights to
dividends, dispose shares (transmission and
acquisition) enjoy PH protection. PH may, with due
process, impose a tax upon transfer by death of
shares of stock in a domestic corporation owned by a
decedent whose domicile was outside of the state.
DE LARA:
Section 122 of Tax Code: No tax shall be collected in
respect of intangible personal property
(a) if the decedent at the time of his death was a
resident of a foreign country which at the time of his
death did not impose a transfer tax or death tax of
any character in respect of intangible personal
property of citizens of the Philippines not residing in
that country
exemption of non-californians based from
california inheritance tax with respect to
tangibles.
*an exemption was granted to the estate by
virtue of Section 122 of the Tax Code, also to
prevent multiple taxation which otherwise
would subject a decedents intangible personal
property to the inheritance tax, both in his
place of residence and domicile and the place
where those properties are found
(b) if the laws of the foreign country of which the
decedent was resident at the time of his death allow
a similar exemption from transfer taxes or death
taxes of every character in respect of intangible
personal property owned by citizen, of the Philippine
not residing in that foreign country.
exemption by reduction of 4000 pesos from
estates of non residents
*P4,000 based on the reduction under the
Federal Tax Law in the amount of $2,000 is in
the nature of deduction and not of an
exemption
ordered to pay 2047.22 as he used provisions in RA.
1253 which was for those affected by the Japanese
occupation, but was not in time and could not be
invoked.
ISSUE:

 W/N the estate is liable to file an estate and inheritance tax

return besides those covering shares of stock issued by
Philippine corporations.
HELD: No
The Court agrees with the CTA that residence was synonymous
with domicile, used interchangeabiy. The incidence of estate and
succession has historically been determined by domicile
and situs and not by the fact of actual residence. At the time of
his death, Miller had his residence or domicile in Santa Cruz,
California. During his stay in the PH, Miller never acquired a
residence and the bulk of his savings and properties were in
theUnited States.
Affirmed, with modification.