Elegado vs Court of Tax Appeals On November 5, 2010 173 scra 285 Applicability of

Laws On March 14, 1976, Warren Taylor Graham, an American national, formerly
resident of the Philippines, died in Oregon, USA. As certain shares of stock are
left in the Philippines, his son Ward Graham filed an estate tax return.
[Meanwhile, W. Graham designated executor, appointed Ildefonso Elegado as his
attorney-in-fact for the allowance of the will in the Philippines.] On the basis of
such return, the respondent Commission of Internal Revenue asses sed the descendant
s estate in the amount of P96,509.35. The assessment was protes ted by the law firm
of Bump, Yang, and Walker on behalf of the estates which was denied by the
Commissioner. Elegado as an ancillary administrator filed a second estate tax
return. The Comm issioner imposed an assessment on the estate in the amount of
P72,948.87 based o n the SEC return, which was protested by the Agrava Law Office
on behalf of the estate. While the protest was pending, the petitioner filed a
motion for the all owance of the basic estate tax of P96,509.35. He said that this
liability had no t yet been paid although the assessment had long become final and
executory. Pet itioner was denied contending that the first assessment is not
binding on him be cause it was based on a return filed for by lawyers. ISSUE:
Whether or not the first assessment is binding being filed for by lawyers . HELD:
The Supreme Court held that Elegado s contention is flimsy. The petitioner c annot
be serious when he argues that the first assessment was invalid because th e
foreign lawyers who filed the return on which it was based were not familiar w ith
our tax laws and procedure. If our own lawyers and taxpayers cannot claim si milar
preferences, it follows that foreigners cannot be any less bound by laws i n our
country.