COMMISSIONER V. REYES (TAX)

Under Section 228, an ASSESSMENT must state the facts and the law on which it is based. Otherwise, it is invalid. This is not satisfied when taxpayer is simply informed in writing of the investigation being conducted and the recommendation for the assessment of ESTATE TAX.

In these circumstances, there is denial of due process because taxpayer cannot adequately respond to the assessment. Here, there was lack of basis and insufficiency of the gross figures and details of the itemized deduction indicated in the notice letter. The assessment was based on estimates that appear to have been arbitrarily and capriciously arrived at.

DIZON V. CTA (TAX)

For purposes of computing the value of the net estate for ESTATE TAX PURPOSES, the value of the liabilities against an estate is to be determined as of the time of death.

Post-death developments effectively reducing the value of these liabilities do not require a reduction of the amount of these liabilities for estate tax purposes.