142260-1969-Commissioner_of_Internal_Revenue_v._Suter20181014-5466-1wyywdj.pdf - EN BANC[G.R No L-25532 COMMISSIONER OF INTERNAL REVENUE petitioner vs


This preview shows page 1 - 2 out of 7 pages.

EN BANC [G.R. No. L-25532. February 28, 1969.] COMMISSIONER OF INTERNAL REVENUE COMMISSIONER OF INTERNAL REVENUE, petitioner , vs. WILLIAM J. SUTER and THE COURT OF TAX APPEALS SUTER and THE COURT OF TAX APPEALS, respondents . Solicitor General Antonio P . Barredo, Assistant Solicitor General Felicisimo R . Rosete and Special Attorneys B . Gatdula, Jr . and T . Temprosa for petitioner. A . S . Manzano, Gutierrez, Farrales & Ong for respondents. SYLLABUS 1. CIVIL LAW; PARTNERSHIP; PARTICULAR PARTNERSHIP; RESPONDENT COMPANY IN INSTANT CASE IS SUCH KIND OF PARTNERSHIP. — William J. Suter "Marcoin" Co., Ltd. was not a universal partnership, but a particular one. As appears from Article 1674 and 1675 of the Spanish Civil Code of 1889 (which was the law in force when the subject Drm was organized in 1947), a universal partnership requires either that the object of the association be all the present property of the partners, as contributed by them to the common fund, or else "all that the partners may acquire by their industry or work during the existence of the partnership." William J. Suter "Morcoin" Co., Ltd. was not such a universal partnership, since the contributions of the partners were Dxed sums of money, P20,000.00 by William Suter and P18,000.00 by Julia Spirig, and neither one of them was an industrial partner. It follows that William J. Suter "Morcoin" Co., Ltd. was not a partnership that spouses were forbidden to enter by Article 1677 of the Civil Code of 1889. 2. ID.; ID.; SEPARATE PROPERTY BROUGHT BY PARTNERS INTO THE MARRIAGE DOES NOT BECOME CONJUGAL. — The appellant's view, that by the marriage of both partners the company became a single proprietorship, is equally erroneous. The capital contributions of partners William J. Suter and Julia Spirig were separately owned and contributed by them before their marriage; and after they were joined in wedlock, such contributions remained their respective separate property under the Spanish Civil Code (Article 1396); "The following shall be the exclusive property of each spouse: (a) That which is brought to the marriage as his or her own; . . . " Thus, the individual interest of each consort in William J. Suter "Morcoin" Co., Ltd. did not become common property of both after their marriage in 1948. 3. ID.; ID.; SEPARATE JURIDICAL PERSONALITY OF PARTNERSHIP; MEMBERS THEREOF HAVE SEPARATE INCOME UNDER THE TAX CODE. — It being a basic tenet of the Spanish and Philippine law that the partnership has a juridical personality of its own, distinct and separate from that of its partners (unlike American and English law that does not recognize such separate juridical personality), the bypassing of the existence of the limited partnership as a taxpayer can only be done by ignoring or disregarding clear statutory mandates and basic principles of our law. The limited partnership's separate individuality makes it impossible to equate its income with that of the component members. True, section 24 of the Internal Revenue Code merges registered general co-partnerships (compañias colectivas) with the personality of the individual partners for income tax purposes. But this rule is exceptional in its
Image of page 1

Subscribe to view the full document.

Image of page 2
  • Spring '17

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes