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    Pirovano v. CIR, 14 SCRA 832, July 31, 1965 - Digest

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    Moses Rivera
    Enrico Pirovano was given a life insurance policy by his employer, De la Rama Steamship Co., where he served as President and General Manager. After Pirovano's death, his heirs claimed the policy proceeds. The CIR classified this as a donation subject to Donor's Tax. The heirs argued it was a remuneratory donation in consideration of Pirovano's past services. The court held that there was no evidence Pirovano was not fully compensated for his services or promised additional compensation. The company's conveyance of the policy proceeds to Pirovano's heirs was done out of gratitude, not as payment for services, making it a simple donation subject to Don

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    Pirovano v. CIR, 14 SCRA 832, July 31, 1965 - Digest

    Uploaded by

    Moses Rivera
    322 views1 page
    Enrico Pirovano was given a life insurance policy by his employer, De la Rama Steamship Co., where he served as President and General Manager. After Pirovano's death, his heirs claimed the policy proceeds. The CIR classified this as a donation subject to Donor's Tax. The heirs argued it was a remuneratory donation in consideration of Pirovano's past services. The court held that there was no evidence Pirovano was not fully compensated for his services or promised additional compensation. The company's conveyance of the policy proceeds to Pirovano's heirs was done out of gratitude, not as payment for services, making it a simple donation subject to Don

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    Digest taxation Pirovano

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    1. Pirovano v. CIR, 14 SCRA 832, July 31, 1965_Digest

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    Enrico Pirovano was given a life insurance policy by his employer, De la Rama Steamship Co., where he served as President and General Manager. After Pirovano's death, his heirs claimed the policy proceeds. The CIR classified this as a donation subject to Donor's Tax. The heirs argued it was a remuneratory donation in consideration of Pirovano's past services. The court held that there was no evidence Pirovano was not fully compensated for his services or promised additional compensation. The company's conveyance of the policy proceeds to Pirovano's heirs was done out of gratitude, not as payment for services, making it a simple donation subject to Don

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    322 views1 page

    Pirovano v. CIR, 14 SCRA 832, July 31, 1965 - Digest

    Uploaded by

    Moses Rivera
    Enrico Pirovano was given a life insurance policy by his employer, De la Rama Steamship Co., where he served as President and General Manager. After Pirovano's death, his heirs claimed the policy proceeds. The CIR classified this as a donation subject to Donor's Tax. The heirs argued it was a remuneratory donation in consideration of Pirovano's past services. The court held that there was no evidence Pirovano was not fully compensated for his services or promised additional compensation. The company's conveyance of the policy proceeds to Pirovano's heirs was done out of gratitude, not as payment for services, making it a simple donation subject to Don

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    © All Rights Reserved
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    PIROVANO v CIR

    FACTS:
    Enrico Pirovano as General Manager and President of De la Rama Steamship Co. was
    given a life insurance by the latter. The initial beneficiary was the company but it
    later on renounced it rights and ceded it in favor of Pirovanos heirs.
    Because of this, the CIR classified such transaction as a donation and subjected it
    Donors Tax. The heirs of Pirovano contended that the grant does not come within
    the purview of Donors tax because such was a remuneratory donation given in
    consideration of Pirovanos past services.
    ISSUE:
    WON the donation was a simple donation or a remuneratory? And as such is it
    subject to Donors Tax?
    HELD:

    There is nothing on record to show that when the late Enrico Pirovano rendered
    services as President and General Manager of the De la Rama Steamship Co. he
    was not fully compensated for such services, or that, because they were "largely
    responsible for the rapid and very successful development of the activities of
    the company" (Res. of July 10, 1946). Pirovano expected or was promised further
    compensation over and in addition to his regular emoluments as President and
    General Manager. The fact that his services contributed in a large measure to
    the success of the company did not give rise to a recoverable debt, and the
    conveyances made by the company to his heirs remain a gift or donation. This is
    emphasized by the directors' Resolution of January 6, 1947, that "out of
    gratitude" the company decided to renounce in favor of Pirovano's heirs the
    proceeds of the life insurance policies in question. The true consideration for the
    donation was, therefore, the company's gratitude for his services, and not the
    services themselves.
    Therefore, the donation is a simple one and must be subjected to Donors tax

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