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Antonio Campos Rueda is the administrator of the estate of Doa Maria Dela Estrella Soriano Vda.

De Cerdeira in the Philippines who is a Spanish national by marriage and was a resident of tangier
morocco from 1931 up to the time of her death in 1955. She left, among others, intangible
properties in the Philippines. On 1955, respondent herein filed a provisional estate and inheritance
tax return on all properties of Doa Maria. Upon assessment, respondent paid the tax liabilities of
the properties. Months later, respondent filed an amended return wherein intangible personal
properties with the value of Php 396,308 were claimed as exempted from taxes. However,
petitioner denied the request stating that Tangier is not reciprocal to Section 122 of the National
Internal Revenue Code hence the petitioner demanded payment of Php 239,439 for deficiency
estate and inheritance taxes plus ad valorem penalties, surcharges, interests and compromise
penalties. The respondent requested for the reconsideration on the exemptions and ad valorem
penalties which was again denied on the grounds that there was no reciprocity with Tangier as it is
not a foreign country. The court of tax appeals ruled that the respondent should be allowed the
exemption as the proviso refers to a government of power, albeit not an international person of
international law, does not impose transfer or death taxes upon intangible properties of our citizens
or allows a similar exemption from such taxes must be recognized by our government. Thus, the
recognition of Tangier's laws and entitles the respondent to the exemption of taxes. With these
facts is our current appeal by petitioner is grounded.

Could Tangier, Morocco be recognized as a foreign country from who we can invoke reciprocity of
laws?

Yes. A foreign country can be identified with that of the definition of the state which is a politically
organized sovereign community independent of outside control bound by ties of nationhood, legally
supreme within its territory, acting through a government functioning under a regime of law. State is
also defined as body-politic organized by common consent for mutual defense and mutual safety
and to promote general welfares. Also, in the words of Esmein, it is defined as the juridical
personification of the nation. Though not an international personality, Tangier, Morocco is
recognized as a foreign country as it possess the characteristics of a state hence the decision of
the court of Tax Appeals is affirmed.