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Nov. 28, 1958); xxx, and the petitioner, the Rev. Fr. Casimiro
Lladoc is hereby ordered to pay to the respondent the amount of
P900.00 as donees gift tax, plus the surcharge of five per centum
(5%) as ad valorem penalty under Section 119 (c) of the Tax Code,
and one per centum (1%) monthlv interest from May 15, 1958 to the
date of actual payment. The surcharge of 25% provided in Section
120 for failure to file a return may not be imposed as the failure to
file a return was not due to willful neglect, (x x x) No costs.
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exists, is, who should be called upon to pay the gift tax?
Petitioner postulates that he should not be liable, because at
the time of the donation he was not the priest of Victorias.
We note the merit of the above claim, and in order to put
things in their proper light, this Court, in its Resolution of
March 15, 1965, ordered the parties to show cause why the
Head of the Diocese to which the parish of Victorias
pertains, should not be substituted in lieu of petitioner Rev.
Fr. Casimiro Lladoc, it appearing that the Head of such
Diocese is the real party in interest. The Solicitor General,
in representation of the Commissioner of Internal
Revenue, interposed no objection to such a substitution.
Counsel for the petitioner did not also offer objection
thereto.
On April 30; 1965, in a resolution, We ordered the Head
of the Diocese to present whatever legal issues and/or
defenses he might wish to raise, to which resolution counsel
for petitioner, who also appeared as counsel for the Head of
the Diocese, the Roman Catholic Bishop of Bacolod,
manifested that it was submitting itself to the jurisdiction
and orders of this Court and that it was presenting, by
reference, the brief of petitioner Rev. Fr. Casimiro Lladoc,
as its own and for all purposes.
In view hereof and considering that, as heretofore stated,
the assessment at bar had been properly made and the
imposition of the tax is not a violation of the constitutional
provision exempting churches, parsonages or convents, etc.
(Art. VI, sec. 22[3], Constitution), the Head of the Diocese, to
which the parish Victorias pertains, is liable for the
payment thereof.
The decision appealed from should be, as it is hereby
affirmed insofar as tax liability is concerned; it is modified,
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