How Unfair Estate Partition Leads to Further Unfairness

THERE were six (6) brothers (Sons A, B, C, D, E and F) who will inherit the net estate of Sps. Juan Dela Cruz. 

For our example, we will stipulate that decedents Sps. Juan Dela Cruz left six (6) hectares of land. 

Three (3) hectares are in what we call commercial zone as these are along the national highway. The other three (3) hectares are located in inner or residential zone (in the vernacular, "looban"). 

When the estate was settled, the first three (3) sons received the one (1) hectare in the commercial zone, with each hectare valued at a conservative Twenty Million (Php20,000,000) Pesos. The remaining three (3) hectares were given to the last three (3) sons, with each hectare valued at a conservative Five Million (Php5,000,000) Pesos. Take note that each of them had the same portion in terms of area (at one (1) hectare each), but received, in terms of value, disproportionately with the first three sons receiving  four (4x) the last three (3) sons. 

When the estate settlement papers were submitted to the BIR for payment of taxes, the BIR assessed  an estate tax of Php4,500,000 (Php75,000,000 net estate x 6%). The first three (3) sons insisted that each of them pay their own taxes, so this estate tax was distributed equally to them (Php750,000 each). So a son who received Php5,000,000 (in terms of value) in inheritance and another who received  Php20,000,000 will have to pay the same share of estate tax (at Php750,000 each). A son receiving less  will be paying 15% of his inheritance in estate tax;  a son receiving more will only be paying 3.75% of his inheritance in estate tax. 

But the BIR not only assessed estate tax but also Donor's Tax, because in their view, by assigning particular slice of land, there was in fact a transfer without consideration (a waiver of a co-owner, as heirs are deemed under the law, in favor a co-owner). So, in BIR's view, a son receiving Php5,000,000 is technically waiving his rights in the amount of Php3,333,333.33  (Php20,000,000 divided by 6) to the inheritance worth  Php20,000,000 of another son,  so the son who received less was assessed further of Donor's Tax at the rate of 6% multiplied by the waived amount, or Php199,999.99 in taxes. On the other hand, the son who received Php20,000,000 is deemed by the BIR to waive his share in the Php5,000,000  inheritance of the former, and was assessed by the BIR of a Donor's Tax due of Php49,999. Repeat the same process for each son and their inheritance.

Son E, who received only Php5,000,000, will be assessed a Donor's Tax as broken down as:

Php199,999.99

Php199,999.99

Php199,999.99

Php49,999.99

Php49,999.99

TOTAL OF: Php699,995

In sum, Son E paid Php750,000 in estate tax and Php699,995 in Donor's Tax  or Php1,499,995 in taxes  or 28.99% of his inheritance. He is left with Php3,500,005.

Let's look at the Donor's Tax of Son A:

Php199,999.99

Php199,999.99

Php49,999.99

Php49,999.99

Php49,999.99

Son A had to pay Php549,995 in Donor's Tax. Combined with his share of the estate tax, that's Php1,299,995. That's 6.4% of his inheritance. He is left with Php18,770,005 in terms of value.

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So what we have here is a person receiving more paying less in terms of real amount and in terms of percentage of the amount received, with those receiving less paying more in terms of real amount and in terms of percentage of the amount received.  

It would have been more equal if the net estate is divided in terms of value with each son receiving Php12,500,000 in terms of value.

The funny thing is Sons A, B, and C thinks this is "just" and derogate Son D, E, and F. 

"People derogate victims in this way to avoid the cognitive dissonance that comes from trying to understand how individuals can suffer injustice in a just world." (Harvard Business Review)

Weave Pattern; Trade Mark

https://www.theiplawblog.com/2013/10/articles/copyright-law/weaving-a-trademark/  

Often times, the aesthetically functional aspect of the product is the primary reason for its commercial success and it would not be fair to allow a company or person a monopoly over that feature. xxx Bottega Veneta argued that even if their weave design was merely ornamental, it had acquired distinctiveness as a mark which would overturn a finding of ornamentation. A mark acquires distinctiveness if it is used and promoted extensively, to the point where consumers now directly associate the mark with the applicant as the source of those goods. Acceptable evidence of distinctiveness can include (a) advertising and promotional materials that specifically show or promote the applied-for mark in use as a trademark and source-identifier; (b) dollar figures for advertising devoted to such promotion; (c) dealer and consumer statements indicating recognition of the applied-for mark as a trademark; or (d) other evidence that shows consumer recognition of the applied-for mark as a trademark for applicant's goods. 

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Probate of Will; Substantial Compliance; Number of Pages

Mere reading and observation of the will, without resorting to other extrinsic evidence, yields the conclusion that there are actually five (5) pages even if the said information was not provided in the attestation clause. In any case, the CA declared that there was substantial compliance with the directives of Article 805 of the Civil Code.

When the number of pages was provided in the acknowledgement portion instead of the attestation clause, "[t]he spirit behind the law was served though the letter was not. Although there should be strict compliance with the substantial requirements of the law in order to insure the authenticity of the will, the formal imperfections should be brushed aside when they do not affect its  purpose and which, when taken into account, may only defeat the testator's will."

In the matter of the petition for the probate of the will of Consuelo Santiago Garcia Vs. Natividad Garcia Santos

G.R. No. 204793. June 8, 2020

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Probate of Will; Testacy Over Intestacy

It is settled that "the law favors testacy over intestacy" and hence, "the probate of the will cannot be dispensed with Article 838 of the Civil Code provides that no will shall pass either real or personal property unless it is proved and allowed in accordance with the Rules of Court. Thus, unless the will is probated, the right of a person to dispose of his property may be rendered nugatory." In a similar way, "testaye proceedings for the settlement of the estate of the decedent take precedence over intestate proceedings for the same purpose."

In the matter of the petition for the probate of the will of Consuelo Santiago Garcia Vs. Natividad Garcia Santos G.R. No. 204793. June 8, 2020

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IT’S TIME FOR GANGWON-DO

IT'S TIME FOR GANGWON-DO! 

Social media influencers came together to promote winter tourism in Gangwon, South Korea's up-and-coming premier destination. 

A special summit of leaders of ASEAN and South Korea marked the 30th anniversary of ASEAN-Republic of Korea dialogue relations.  The event closed last November 27. Las year, the summit was previously held in Busan. 

The visit of the social media influencers to Gangwon-do was to promote the activities for winter sports in Gangwon Province, the Yongyang International Airport, and the famous tourist spots in Hanryu which is well known for the K-culture. 

The influencers, who have  more than 1 million followers and  visited Gangwon Province, include: Renee Dominique  (the musician who just released a single album with Jason Mraz),  Bautista Vanessa, Quijano Sergio, Luigi Pacheco and Bont Bryan Oropel from thePhilippines. 

The were also joined by singer and actress Jannine Weigel of Thailand. 

Osusu, Nabee TV and Umi TV of Vietnam also appeared in the winter tourist commercial video.

The Gangwon Province Winter Tourism commercial video will be produced and published on Arirang World Channel. 

It has 142 million receiving households in 103 countries.

The ASEAN social media influencers stayed in Gangwon province for 5 nights and 6 days from 26th November to  1st of December. 

They visited many locations including Nami Island in Chuncheon, known as the location of K – drama ,Yeongjin Beach, as well as the Daegwanryeong Ski Resort in Gangwon Province, which is called the Alps in Asia, Gangneung Curling Center and Wonju Soguem Mountain suspension bridge.

Cultural exchanges between ASEAN and Korea by the social media influencers were done in the snowplows in Gangwon Province.

This will be a great chance to promote Gangwon tourism to all the ASEAN countries.

NCIP; Jurisdiction; Ancestral Domain

As held in the main decision, the NCIP shall have jurisdiction over claims and disputes involving rights of ICCs/IPs only when they arise between or among parties belonging to the same ICC/IP group because of the qualifying provision under Section 66 of the IPRA that "no such dispute shall be brought to the NCIP unless the parties have exhausted all remedies provided under their customary laws.

Ref: Galang et al., vs. Wallis  G.R. No. 223434, July 03, 2019

Revival of Judgment; Jurisdiction

An action for revival of judgment may be filed either "in the same court where said judgment was rendered or in the place where the plaintiff or defendant resides, or in any other place designated by the statutes which treat of the venue of actions in general."

Ref: 

" HEIRS OF NUMERIANO MIRANDA, SR., namely: CIRILA (deceased), CORNELIO, NUMERIANO, JR., ERLINDA, LOLITA, RUFINA, DANILO, ALEJANDRO, FELIMON, TERESITA, ELIZABETH and ANALIZA, all surnamed MIRANDA vs. PABLO R. MIRANDA" G.R. No. 179638 July 8, 2013