Tax Law I: Nature of Income Madrigal V Rafferty Facts:: Divided Into 2 in Computing For The Additional Income Tax
Tax Law I: Nature of Income Madrigal V Rafferty Facts:: Divided Into 2 in Computing For The Additional Income Tax
Madrigal v Rafferty
Facts:
Vicente Madrigal and Susana Paterno were legally married prior to
Januray 1, 1914. The marriage was contracted under the provisions of law
concerning conjugal partnership. On 1915, Madrigal filed a declaration of his
net income for year 1914, the sum of P296,302.73. Vicente Madrigal was
contending that the said declared income does not represent his income for
the year 1914 as it was the income of his conjugal partnership with Paterno.
He said that in computing for his additional income tax, the amount declared
should be divided by 2 thereby making the income tax to be paid less than
when it is charged to the original, undivided amount. However, The revenue
officer was not satisfied with Madrigals explanation and ultimately, the
United States Commissioner of Internal Revenue decided against the claim of
Madrigal.
Madrigal paid under protest, and the couple decided to recover the
sum of P3,786.08 alleged to have been wrongfully and illegally assessed and
collected by the CIR.