ONA VS.

COMMISION OF INTRNAL REVENUE

45 SCRA 74
FACTS:
1. Julia Bunales died on March 23, 1944 leaving as heirs her
surviving spouse Lorenzo T. Oa and her ive children.
2. ! civil case "as ins#i#u#ed in #he $%& o Manila or #he se##le'en#
o her es#a#e.
3. Lorenzo "as appoin#ed ad'inis#ra#or o he deceased(s es#a#e.
4. ! pro)ec# o par#i#ion sho"s #ha# #he heirs have undivided *
in#eres# in 1+ parcels o land, , houses and an unde#er'ined
a'oun# #o -e collec#ed ro' #he .ar /a'age $o''ission.
0. !l#hough #he cour# approved #he pro)ec# o par#i#ion, no a##e'p#
"as 'ade #o divide #he proper#ies lis#ed #herein.
,. &ns#ead, #he proper#ies re'ained under #he 'anage'en# o
Lorenzo "ho used #he said proper#ies in -usiness -1 leasing or
#elling #he' and inves#ing #he inco'e derived #herero' and #he
proceeds ro' #he sales #hereo in real proper#ies and securi#ies.
2. !s a resul#, pe#i#ioner(s proper#ies and inves#'en# graduall1
increased ro' 3 1+0,4+0.++ in 1949 #o 3 44+,+++0.2+ in 190,.
4. 5esponden# $&5 decided #ha# pe#i#ioners or'ed an unregis#ered
par#nership and #hereore, su-)ec# #o #he corpora#e inco'e #a6
pursuan# #o 7ec#ion 24, in rela#ion #o 7ec#ion 448-9 o #he Ta6 $ode.
9. 3e#i#ioners pro#es#ed agains# #he assess'en# and as:ed or
reconsidera#ion o #he ruling #ha# #he1 have or'ed an unregis#ered
par#nership.
1+. 5esponden# denied #he 'o#ion or reconsidera#ion.
11. ;ence #his appeal.
ISSUE:
/id pe#i#ioners cons#i#u#e an unregis#ered par#nership, and are,
#hereore, su-)ec# #o #he pa1'en# o #he deicienc1 corpora#e
inco'e #a6es assessed agains# #he' -1 responden# $&5.
HELD:
%ro' #he 'o'en# pe#i#ioners allo"ed no# onl1 #he inco'es ro'
#heir respec#ive shares o #he inheri#ance -u# even #he inheri#ed
proper#ies #he'selves #o -e used -1 Lorenzo T. Oa as a co''on
und in under#a:ing several #ransac#ions or in -usiness, "i#h #he
in#en#ion o deriving proi# #o -e shared -1 #he' propor#iona#el1,
such ac# "as #an#a'oun# #o ac#uall1 con#ri-u#ing such inco'es #o a
co''on und and, in eec#, #he1 #here-1 or'ed an unregis#ered
par#nership "i#hin #he purvie" o #he provisions o #he Ta6 $ode.