Republic of the PhilippinesSUPREME COURTManilaTHIRD DIVISIONG.R. No. 138485 September 10, 2001DR. FELS! L. "D!. DE S!N !GUSTN, #$ %&b%t#t&t#o$ o' (OSE ). FER!, #$ *#% +,p,+#t- ,% E.e+&tor o' t*e E%t,te o' (OSE S!N !GUSTN, petitioner, vs.COMMSSONER OF NTERN!L RE"ENUE, respondent."TUG,, J.:efore the !ourt is a petition for revie" see#in$ to set aside the decisionof %& 'ebruar( )*** of the !ourt of +ppeals, as "ell as its resolution of%, +pri))***, in !+-..R. SP No. /&)01, "hich has reversed that of the!ourt of Ta2 +ppeals in !T+ !ase No.&*01, entitled 34ose V. 'eria, in hiscapacit( as 52ecutor of the 5state of 4ose San +$ustin versus!o66issioner of Internal Revenue.3 The ta2 court7s decision has6odified the deficienc( assess6ent of the !o66ission of InternalRevenueforsurchar$e, interestsandotherpenaltiesi6poseda$ainstthe estate of the late 4ose San +$ustin.The facts of the case narrated b( the appellate court "ould appear, b(and lar$e, to be uncontroverted8 thus viz:3+tt(. 4ose San +$ustin of %*9& :a#aron$ St., Ol(6pia, Ma#ati died on4une %,, )**9 leavin$ his "ife Dra. 'elisa ;. San +$ustin as sole heir.He left a holo$raphic "ill e2ecuted on +pril %), )*)? 'ailure to file an( return and pa( the ta2 due thereon as re@uiredunder the provisions of this !ode or rules and re$ulations on the dateprescribed8 or3>%?Dnlessother"iseauthoriCedb(the!o66issioner,filin$areturn"ith an internal revenue officer other than those "ith "ho6 the return isre@uired to be filed8 or3>/? 'ailure to pa( the deficienc( ta2 "ithin the ti6e prescribed for itspa(6ent in the notice of assess6ent8 or3>&? 'ailure to pa( the full or part of the a6ount of ta2 sho"n on an(return re@uired to be filed under the provisions of this !ode or rules andre$ulations, or the full a6ount of ta2 due for "hich no return is re@uiredto be filed, on or before the date prescribed for its pa(6ent.33Sec.%&*. Interest. -3>+? In .eneral. -There shall be assessed and collected on an( unpaida6ount of ta2, interest at the rate of t"ent( percent >%9J? per annu6,or such hi$her rate as 6a( be prescribed b( rules and re$ulations, fro6the date prescribed for pa(6ent until the a6ount is full( paid.3>? Deficienc( Interest. - +n( deficienc( in the ta2 due, as the ter6 isdefinedinthis!ode, shall besubBect totheinterest prescribedinSubsection >+? hereof, "hich interest shall be assessed and collectedfro6 the date prescribed for its pa(6ent until the full pa(6ent thereof.3>!? Delin@uenc( Interest. -In case of failure to pa(E3>)? The a6ount of the ta2 due on an( return to be filed, or3>%? The a6ount of the ta2 due for "hich no return is re@uired, or3>/? + deficienc( ta2, or an( surchar$e or interest thereon on the duedate appearin$ in the notice and de6and ofthe !o66issioner, thereshall be assessed and collected on the unpaid a6ount, interest at therate prescribed in Subsection >+? hereof until the a6ount is full( paid,"hich interest shall for6 part of the ta2.3>D? Interest on 52tended Pa(6ent. -If an( person re@uired to pa( theta2is@ualifiedandelectstopa(theta2oninstall6ent under theprovisions of this !ode, but fails to pa( the ta2 or an( install6ent hereof,or an( part of such a6ount or install6ent on or before the dateprescribed for its pa(6ent, or "here the !o66issioner has authoriCedan e2tension of ti6e "ithin "hich to pa( a ta2 or a deficienc( ta2 or an(part thereof, there shall be assessed and collected interest at the ratehereinabove prescribed on the ta2 or deficienc( ta2 or an( part thereofunpaid fro6 the date of notice and de6and until it is paid.3It "ould appear that, as earl( as %/ Septe6ber )**), the estate alread(receivedapre-assess6ent noticeindicatin$adeficienc(estateta2ofP0/!ollectionService?, fro6proceedin$ "ith the +uction of the real propertiescovered b( Notices of Sale.+fter the parties had pleaded their case, the !ourt of +ppeals renderedits Decision 2 on Nove6ber %*, )**&, rulin$ that the deficienc(assess6ents for estate and inco6e ta2 6ade upon the petitioner and theestate of the deceased President Marcos have alread( beco6e final andunappealable, and6a(thusbeenforcedb(thesu66ar(re6ed(oflev(in$ upon the properties ofthe late President,as "asdoneb( therespondent !o66issioner of Internal Revenue.FH5R5'OR5, pre6ises considered Bud$6ent is hereb( renderedDISMISSIN. the petition for Certiorari "ith pra(er for Restrainin$ Orderand InBunction.No pronounce6ents as to cost.SO ORD5R5D.Dnperturbed, petitioner isno"beforeusassailin$thevalidit(of theappellate court7s decision, assi$nin$ the follo"in$ as errorsE+. R5SPOND5NT!ODRTM+NI'5ST;=5RR5DINRD;IN.TH+TTH5 SDMM+R= T+M R5M5DI5S R5SORT5D TO = TH5.OV5RNM5NT+R5NOT+''5!T5D+NDPR5!;DD5D=TH5P5ND5N!= O' TH5 SP5!I+; PRO!55DIN. 'OR TH5+;;OF+N!5 O' TH5 ;+T5 PR5SID5NT7S +;;5.5D FI;;. TO TH5!ONTR+R=, THISPRO+T5PRO!55DIN.PR5!IS5;=P;+!5D+;; PROP5RTI5S FHI!H 'ORM P+RT O' TH5 ;+T5 PR5SID5NT7S5ST+T5IN!DSTODI+ ;5.ISO'TH5PRO+T5!ODRT TOTH55M!;DSION O' +;; OTH5R !ODRTS +ND +DMINISTR+TIV5+.5N!I5S.. R5SPOND5NT!ODRT+RITR+RI;=5RR5DINSF55PIN.;=D5!IDIN. TH+T SIN!5 TH5 T+M +SS5SSM5NTS O' P5TITION5R+ND HIS P+R5NTS H+D +;R5+D= 5!OM5 'IN+; +NDDN+PP5+;+;5, TH5R5 F+S NO N55D TO .O INTO TH5 M5RITSO'TH5.RODNDS!IT5DINTH5P5TITION. IND5P5ND5NTO'FH5TH5R TH5 T+M +SS5SSM5NTS H+D +;R5+D= 5!OM5'IN+;, HOF5V5R, P5TITION5RH+STH5RI.HTTOND5STIONTH5 DN;+F'D; M+NN5R +ND M5THOD IN FHI!H T+M!O;;5!TIONISSOD.HT TO55N'OR!5D=R5SPOND5NTS!OMMISSION5R +ND D5 .DOM+N. THDS, R5SPOND5NT !ODRTSHOD;DH+V5'+VOR+;=!ONSID5R5DTH5M5RITSO'TH5'O;;OFIN. .RODNDS IN TH5 P5TITIONE>)? The Notices of ;ev( on Real Propert( "ere issued be(ondthe period provided in the Revenue Me6orandu6 !ircular No./+nne2es343and34-)3of thePetition?. Thereafter,'or6al+ssess6ent notices"ere served on October %9, )**%, upon Mrs. Marcos cAo petitioner, athis office, House of Representatives, atasan Pa6bansa, NueCon !it(.Moreover, a notice to Ta2pa(er invitin$ Mrs. Marcos >or her dul(authoriCed representative or counsel?,to a conference,"asfurnishedthe counsel of Mrs. Marcos, Dean +ntonio !oronel L but to no avail.The deficienc( ta2 assess6ents "ere not protested ad6inistrativel(, b(Mrs. Marcos and the other heirs of the late president, "ithin /9 da(sfro6 service of said assess6ents.On 'ebruar( %%, )**/, the IR!o66issioner issued t"ent(-t"onotices of lev( on real propert( a$ainst certain parcels of land o"ned b(the Marcoses L to satisf( the alle$ed estate ta2 and deficienc( inco6eta2es of Spouses Marcos.OnMa(%9, )**/, four 6oreNoticesof ;ev(onreal propert("ereissued for the purpose of satisf(in$ the deficienc( inco6e ta2es.On Ma( %1, )**/, additionalfour >&? notices of;ev( on realpropert("ere a$ain issued. The fore$oin$ ta2 re6edies "ere resorted topursuant toSections%90and%)/of theNational Internal Revenue!ode >NIR!?.In response to a letter dated March )%, )**/ sent b( +tt(. ;oreto +ta>counsel of herein petitioner? callin$ the attention of the IRandre@uestin$that the(bedul(notifiedof an(actionta#enb(theIRaffectin$ the interest of their client 'erdinand 3on$bon$3 Marcos II, as"ell astheinterest of thelatepresident Lcopiesof theaforesaidnotices "ere, served on +pril ,, )**/ and on 4une )9, )**/, upon Mrs.I6eldaMarcos,the petitioner, andtheircounselofrecord, 3DeorBa,Medialdea, +ta, ello, .uevarra and Serapio ;a" Office3.Notices of sale at public auction "ere posted on Ma( %1, )**/, at thelobb( of the !it( Hall of Tacloban !it(. The public auction for the sale ofthe eleven >))? parcels of land too# place on 4ul( 0, )**/. There bein$no bidder, the lots "ere declared forfeited in favor of the $overn6ent.On 4une %0, )**/, petitioner 'erdinand 3on$bon$3 Marcos II filed theinstant petition for certiorariand prohibition under Rule 10 of the Rulesof !ourt, "ithpra(er for te6porar(restrainin$order andAor "rit ofpreli6inar( inBunction.It has been repeatedl( observed, and not "ithout 6erit, that theenforce6ent of ta2la"sandthecollectionof ta2es, isof para6ounti6portance for the sustenance of $overn6ent. Ta2es are the lifeblood ofthe $overn6ent and should be collected "ithout unnecessar( hindrance.Ho"ever, such collection should be 6ade in accordance "ith la" as an(arbitrariness "ill ne$atethever( reasonfor $overn6ent itself. It istherefore necessar( to reconcile the apparentl( conflictin$ interests of theauthorities and the ta2pa(ers so that the real purpose of ta2ation, "hichis the pro6otion of the co66on $ood, 6a( be achieved. 3Fhether or not the proper avenues of assess6ent and collection of thesaidta2obli$ations"ereta#enb(therespondent ureauisno"thesubBect of the !ourt7s in@uir(.Petitioner posits that notices of lev(, notices of sale, and subse@uent saleof properties of the late President Marcos effected b( the IR are nulland void for disre$ardin$ the established procedure for the enforce6entof ta2esdueupontheestateof thedeceased. Thecaseof omingovs. Garlitos 4 is specificall( cited to bolster the ar$u6ent that 3theordinar( procedure b( "hich to settle clai6s of indebtedness a$ainst theestate of a deceased, person, as in an inheritance >estate? ta2, is for theclai6ant to present a clai6 before the probate court so that said court6a( order the ad6inistrator to pa( the a6ount therefor.3 This re6ed( isalle$edl(, e2clusive, and cannot be effected throu$h an( other 6eans.Petitioner $oes further, sub6ittin$ that the probate court is not precludedfro6 den(in$ a re@uest b( the $overn6ent for the i66ediate pa(6ent ofta2es, and should order the pa(6ent of the sa6e onl( "ithin the periodfi2ed b( the probate court for the pa(6ent of all thedebts of thedecedent. In this re$ard, petitioner cites the case of Collector o! "nternalRevenuevs. #$e %dministratri&o! t$e'stateo! 'c$arri >1,Phil 09%?,"here it "as held thatEThe case of Pineda vs. Court o! (irst "nstance of Ta(abas and !ollectorof Internal Revenue >0% Phil +s inserted b( P.D. ),,/?+part fro6failin$tofilethere@uiredestateta2return"ithintheti6ere@uired for the filin$ of the sa6e, petitioner, and the other heirs never@uestionedtheassess6entsserveduponthe6, allo"in$thesa6etolapseintofinalit(,andpro6ptin$theIRtocollect thesaidta2esb(lev(in$ upon the properties left b( President Marcos.Petitioner sub6its, ho"ever,that 3"hiletheassess6ent of ta2es6a(have been validl( underta#en b( the .overn6ent, collection thereof 6a(have been done in violation of the la". Thus, the 6anner and 6ethod in"hich the latter is enforced 6a( be @uestioned separatel(, andirrespective of the finalit( of the for6er, because the .overn6ent doesnot have the unbridled discretion to enforce collection "ithout re$ard tothe clear provision of la".3 14Petitioner specificall( points out that appl(in$ Me6orandu6 !ircular No./+nne2es O to NN of +nne2 !of this Petition? in satisfaction of said assess6ents "ere still issued b(respondents "ell be(ond the period 6andated in RevenueMe6orandu6 !ircular No. /1? 6onths fro6)% Septe6ber )**). In accordance "ith the !ircular, respondents onl(had until )% March )**% >the last da( of the si2th 6onth? "ithin "hich toissue these Notices of ;ev(. The Notices of ;ev(, havin$ been issuedbe(ond the period allo"ed b( la", are thus void and of no effect. 15Fe hold other"ise. The Notices of ;ev( upon real propert( "ere issued"ithin the prescriptive period and in accordance "ith the provisions of thepresent Ta2 !ode. The deficienc( ta2 assess6ent, havin$ alread(beco6e final, e2ecutor(, and de6andable, the sa6e can no"becollectedthrou$h the su66ar( re6ed( ofdistraint or lev( pursuanttoSection %90 of the NIR!.Theapplicableprovisioninre$ardtotheprescriptiveperiodfor theassess6ent and collection of ta2 deficienc( in this instance is +rticle %%/of the NIR!, "hich pertinentl( providesESec. %%/. 52ceptionsastoaperiodof li6itationof assess6ent andcollection of ta2es. L >a? In the case of a false or fraudulent return "ithintent toevadeta2or of afailuretofileareturn, theta26a(beassessed, or a proceedin$ in court for the collection of such ta2 6a( bebe$un "ithout assess6ent, at an( ti6e "ithin ten >)9? (ears after thediscover(of thefalsit(,fraud, oro6issionEProvided,That, inafraudassess6ent "hichhasbeco6efinal ande2ecutor(,thefact of fraudshall be Budiciall( ta#en co$niCance of in the civil or cri6inal action forthe collection thereof.222 222 222>c? +n( internal revenue ta2 "hich has been assessed "ithin the periodof li6itation above prescribed, 6a( be collected b( distraint or lev( or b(a proceedin$ in court "ithin three (ears follo"in$ the assess6ent of theta2.222 222 222The o6ission to file an estate ta2 return, and the subse@uent failure tocontest or appeal theassess6ent 6adeb(theIRisfatal tothepetitioner7s cause, as under the above-cited provision, in case of failureto file a return, the ta2 6a( be assessed at an( ti6e "ithin ten (ears afterthe o6ission, and an( ta2 so assessed 6a( be collected b( lev( uponreal propert("ithinthree(earsfollo"in$theassess6ent of theta2.Since the estate ta2 assess6ent had beco6e final and unappealable b(thepetitioner7s default as re$ards protestin$thevalidit(of thesaidassess6ent, there is no" no reason "h( the IR cannot continue "iththecollectionof thesaidta2. +n(obBectiona$ainst theassess6entshould have been pursued follo"in$ the avenue paved in Section %%* ofthe NIR! on protests on assess6ents of internal revenue ta2es.Petitioner further ar$ues that 3the nu6erous pendin$ court cases@uestionin$ the late president7s o"nership or interests in severalproperties>both real and personal? 6a#e the totalvalue ofhis estate,and the conse@uent estate ta2 due, incapable of e2act pecuniar(deter6ination at this ti6e. Thus, respondents7 assess6ent of the estateta2 and their issuance of the Notices of ;ev( and sale are pre6ature andoppressive.3 He points out the pendenc( of Sandi$anba(an !ivil!aseNos. 999)-99/& and 9)&), "hich "ere filed b( the $overn6ent to@uestiontheo"nershipand interestsof thelatePresident in real andpersonal properties located "ithin and outside the Philippines. Petitioner,ho"ever, o6its to alle$e "hether the properties levied upon b( the IR inthe collectionofestateta2esuponthe decedent7sestate "ere a6on$those involved in the said cases pendin$ in the Sandi$anba(an. Indeed,the court is at a loss as to ho" these cases are relevant to the 6atter atissue. The 6ere fact that the decedent has pendin$ cases involvin$ ill-$otten "ealth does not affect the enforce6ent of ta2 assess6ents overthe properties indubitabl( included in his estate.Petitioner also e2presses his reservation as to the propriet( of the IR7stotal assess6ent of P%/,%*%,19,,1/+nne2 33, p. %)), ibid?.Thereafter, copies of Notices "ere also served upon Mrs. I6eldaMarcos, thepetitioner andtheir counsel 3DeorBa, Medialdea, +ta,ello, .uevarra and Serapio ;a" Office3, on +pril ,, )**/ and 4une )9,)**/. Despiteall of theseNotices, petitioner never liftedafin$er toprotest the assess6ents, >upon "hich the ;ev( and sale of properties"ere based?, nor appealed the sa6e to the !ourt of Ta2 +ppeals.Therebein$sufficient serviceof Noticestohereinpetitioner>andhis6other? and it appearin$ that petitioner continuousl( i$nored saidNotices despite several opportunities $iven hi6 to file a protest and tothereafter appeal to the !ourt of Ta2 +ppeals, L the ta2 assess6entssubBect of this case, upon "hich the lev( and sale of properties "erebased, couldnolon$er becontested>directl(or indirectl(? viathisinstant petition for certiorari. 20Petitioner ar$ues that all the @uestioned Notices of ;ev(, ho"ever, 6ustbe nullified for havin$ been issued "ithout validl( servin$ copies thereofto the petitioner. +s a 6andator( heir of the decedent, petitioner aversthat he has an interest in the subBect estate, and notices of lev( upon itsproperties should have been served upon hi6.Fedonot a$ree. Inthecaseof noticesof lev(issuedtosatisf(thedelin@uent estate ta2, the delin@uent ta2pa(er is the 5state of thedecedent, and not necessaril(, and e2clusivel(, the petitioner as heir ofthe deceased. In the sa6e vein, in the 6atter of inco6e ta2 delin@uenc(of the late president and his spouse, petitioner is not the ta2pa(er liable.Thus, it follo"s that service of notices of lev( in satisfaction of these ta2delin@uencies upon the petitioner is not re@uired b( la", as under Section%)/ of the NIR!, "hich pertinentl( statesE222 222 222. . . ;ev( shall be effected b( "ritin$ upon said certificate a descriptionof thepropert(upon"hichlev(is6ade. +t thesa6eti6e, "rittennoticeof thelev(shall be6ailedtoorservedupontheRe$isterofDeeds of the province or cit( "here the propert( is located and upon thedelin@uent ta2pa(er, or if he be absent fro6 the Philippines, to his a$entor the 6ana$er of the business in respect to "hich the liabilit( arose, orif there be none, to the occupant of the propert( in @uestion.222 222 222The fore$oin$ not"ithstandin$, the record sho"s that notices of "arrantsof distraint and lev( of sale "ere furnished the counsel of petitioner on+pril ,, )**/, and 4une )9, )**/, and the petitioner hi6self on +pril )%,)**/at hisofficeat theatasan$Pa6bansa. 21 Fecannot therefore,countenancepetitioner7sinsistencethat he"asdenieddueprocess.Fhere there "as an opportunit( to raise obBections to $overn6ent action,and such opportunit( "as disre$arded, for no Bustifiable reason, the part(clai6in$ oppression then beco6es the oppressor of the orderl( functionsof $overn6ent. He"hoco6estocourt 6ust co6e"ithcleanhands.Other"ise, he not onl( taints his na6e, but ridicules the ver( structure ofestablished authorit(.INVI5FFH5R5O', the !ourt R5SO;V5Dto D5N=the presentpetition. The Decision of the !ourt of +ppeals dated Nove6ber %*, )**&is hereb( +''IRM5D in all respects.SO ORD5R5D.Regalado, Romero, Puno and Mendoza, JJ., concur.Foot$ote%) Penned b( +ssociate 4ustice +saali S. Isnani, !hair6an8 4ustices !orona Iba( So6era and !elia ;ipana Re(es, concurrin$.% +nne2 3+3, Petition, p.