Beruflich Dokumente
Kultur Dokumente
L-19342 May 25, 1972 under the management of Oña and let him use their
shares as part of the common fund for their ventures,
LORENZO T. OÑA and HEIRS OF JULIA BUÑALES, even as they paid corresponding income taxes on their
namely: RODOLFO B. OÑA, MARIANO B. OÑA, LUZ respective shares.
B. OÑA, VIRGINIA B. OÑA and LORENZO B. OÑA, Yes. For tax purposes, the co-ownership of inherited
JR., petitioners, vs. THE COMMISSIONER OF properties is automatically converted into an
INTERNAL REVENUE, respondent. unregistered partnership the moment the said common
properties and/or the incomes derived therefrom are
used as a common fund with intent to produce profits
FACTS: for the heirs in proportion to their respective shares in
Julia Buñales died leaving as heirs her surviving the inheritance as determined in a project partition
spouse, Lorenzo T. Oña and her five children. either duly executed in an extrajudicial settlement or
- A civil case was instituted for the settlement approved by the court in the corresponding testate or
of her state, in which Oña was appointed intestate proceeding. The reason is simple. From the
administrator moment of such partition, the heirs are entitled already
- A partition was thereafter approved by the to their respective definite shares of the estate and the
Court. The Court also appointed Lorenzo, incomes thereof, for each of them to manage and
upon petition to the CFI of Manila, to be dispose of as exclusively his own without the
appointed guardian of the persons and intervention of the other heirs, and, accordingly, he
property of Luz, Virginia and Lorenzo, Jr., who becomes liable individually for all taxes in connection
were minors at the time. therewith. If after such partition, he allows his share to
- This shows that the heirs have undivided ½ be held in common with his co-heirs under a single
interest in 10 parcels of land, 6 houses and management to be used with the intent of making profit
money from the War Damage Commission. thereby in proportion to his share, there can be no
Although the project of partition was approved by doubt that, even if no document or instrument were
the Court, no attempt was made to divide the executed, for the purpose, for tax purposes, at least, an
properties and they remained under the unregistered partnership is formed.
management of Oña who used said properties in For purposes of the tax on corporations, our National
business by leasing or selling them and investing Internal Revenue Code includes these partnerships —
the income derived therefrom and the proceeds
from the sales thereof in real properties and The term “partnership” includes a syndicate, group,
securities. pool, joint venture or other unincorporated
- As a result, petitioners’ properties and organization, through or by means of which any
investments gradually increased. business, financial operation, or venture is carried on…
- However, petitioners did not actually receive (8 Merten’s Law of Federal Income Taxation, p. 562
their shares in the yearly income. The income Note 63; emphasis ours.)
was always left in the hands of Lorenzo T. with the exception only of duly registered general
Oña who, as heretofore pointed out, invested copartnerships — within the purview of the term
them in real properties and securities. “corporation.” It is, therefore, clear to our mind that
Based on these facts, CIR decided that Oña and petitioners herein constitute a partnership, insofar as
heirs formed an unregistered partnership and said Code is concerned, and are subject to the income
therefore, subject to the corporate income tax, tax for corporations. Judgment affirmed.
particularly for years 1955 and 1956.