Facts: Following the death of former President Marcos in 1989, a Special Tax Audit Team was created on June 27, 1990 to conduct investigations and examinations of tax liabilities of the late president, his family, associates and cronies. The investigation disclosed that the Marcoses failed to file a written notice of death of the decedent estate tax return and income tax returns for the years 1982 to 1986, all in violation of the Tax Code. Criminal charges were field against Mrs. Marcos for violation of Secs. 82, 83 and 84, NIRC.
The CIR thereby caused the preparation of the estate tax return for the estate of the late president, the income returns of the Marcos spouses for 1985 and 1986 and the income tax returns of petitioner Marcos II for 1982 to 1985. On July 26, 1991, the BIR issued deficiency estate tax assessments and the corresponding deficiency income tax assessments. Copies of deficiency estate and income tax assessments were served personally and constructively on August 26, 1991 and September 12, 1991 upon Mrs. Marcos. Likewise, copies of the deficiency income tax assessments against petitioner Marcos were personally and constructively served. Formal assessment notices were served upon Mrs. Marcos on October 20, 1992.
The deficiency tax assessments were not administratively protested by the Marcoses within 30 days from service thereof. Subsequently, the CIR issued a total of 30 notices to levy on real property against certain parcels of land and other real property owned by Marcoses.
Notices of sale at public auction were duly posted at the Tacloban City Hall and the public auction for the sale of 11 parcels of land took place on July 5, 1993. There being no bidder, the lots were declared forfeited in favor of the government.
Petitioner filed a petition for certiorari and prohibition with an application for TRO before the CA to annul and set aside the notices of levy as well as the notice of sale and to enjoin the BIR from proceeding with the auction. The CA dismissed the petition ruling that the deficiency assessments for the estate and income taxes have already become final and unappealable and may thus be enforced by summary remedy of levying upon the real property.
Issue: Whether or not the proper avenue of assessment and collection was taken by respondent bureau.
Held: Apart from failing to file the required estate tax return within the time required for filing the same, petitioner and other Marcos heirs never questioned the assessment served upon them, allowing the same to lapse into finality, and prompting the BIR to collect said taxes by levying upon the properties left by the late President Marcos.
The Notice of Levy upon real property were issued within the prescriptive period and in accordance with Sec. 222 of the Tax Code. The deficiency tax assessment, having become final, executory and demandable, the same can now be collected through the summary remedy of distraint and levy pursuant to Sec. 205 of the Tax Code.
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