GR 35694; (December, 1933) (Digest)
G.R. No. 35694 , December 23, 1933
ALLISON G. GIBBS, petitioner-appellee, vs. THE GOVERNMENT OF THE PHILIPPINE ISLANDS, oppositor-appellant. THE REGISTER OF DEEDS OF THE CITY OF MANILA, respondent-appellant.
FACTS
Allison D. Gibbs and his wife Eva Johnson Gibbs, both citizens and domiciled in California, U.S.A., acquired three parcels of land in Manila as conjugal property during their marriage. Eva died intestate in California. Allison, as administrator of her estate, obtained a decree from the Court of First Instance of Manila adjudicating the lands to him as sole owner under California law, which provides that community property belongs absolutely to the surviving husband upon the wife’s death. When Allison presented this decree to the Register of Deeds of Manila to secure transfer certificates of title, the Register refused, citing Section 1547 of the Administrative Code, which prohibits registration of transfers by inheritance without proof of payment of the inheritance tax. Allison then petitioned the court to compel the Register to issue the titles without requiring tax payment. The lower court granted his petition, leading to this appeal by the Government and the Register of Deeds.
ISSUE
Whether the transfer of the conjugal property interests to the surviving husband, upon the wife’s death, constitutes a transmission by inheritance subject to the inheritance tax under Philippine law.
RULING
Yes. The Supreme Court reversed the lower court’s order. The Court held that, under Philippine law (the Civil Code), the wife, upon acquisition of conjugal property, becomes immediately vested with a descendible interest equal to that of her husband. Upon her death, her share in the conjugal partnership is transmitted to her heirs by succession. This transmission falls within the scope of Article XI, Chapter 40 of the Administrative Code, which levies a tax on inheritances. The fact that the spouses were California citizens and that California law might govern the order of succession or extent of successional rights does not alter the nature of the transmission as one subject to inheritance tax under Philippine law, as the property is situated in the Philippines. Therefore, the Register of Deeds correctly refused registration until proof of payment of the inheritance tax is shown. The petition was ordered dismissed.
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