14 Tolentino v Sec. of Finance (1994)

8/10/2019 14 Tolentino v Sec. of Finance (1994)

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Republic of the PhilippinesSUPREME COURTManila

EN BANC

G.R. No. 11555 Au!ust "5# 1$$

ARTURO M. TO%ENT&NO# petitione'#(s.T)E SECRETAR* O+ +&NANCE an, T)E COMM&SS&ONER O+ &NTERNA%RE-ENUE# 'espon,ents.

G.R. No. 1155"5 Au!ust "5# 1$$

UAN T. /A-&/# petitione'#(s.TEO+&STO T. GU&NGONA# R.# as E0ecuti(e Sec'eta'2 ROBERTO /E OCAMPO# asSec'eta' of +inance2 %&3A*3A* -&N4ONSC)ATO# as Co66issione' of &nte'nalRe(enue2 an, thei' AUT)OR&4E/ AGENTS OR REPRESENTAT&-ES# 'espon,ents.

G.R. No. 11557 Au!ust "5# 1$$

RAU% S. ROCO an, the &NTEGRATE/ BAR O+ T)E P)&%&PP&NES# petitione's#(s.

T)E SECRETAR* O+ T)E /EPARTMENT O+ +&NANCE2 T)E COMM&SS&ONERSO+ T)E BUREAU O+ &NTERNA% RE-ENUE AN/ BUREAU O+ CUSTOMS#'espon,ents.

G.R. No. 1155 Au!ust "5# 1$$

P)&%&PP&NE PRESS &NST&TUTE# &NC.2 EGP PUB%&S)&NG CO.# &NC.2 PUB%&S)&NGCORPORAT&ON2 P)&%&PP&NE OURNA%&STS# &NC.2 OSE %. PA-&A2 an, O+E%&A%. /&MA%ANTA# petitione's#(s.)ON. %&3A*3A* -. C)ATO# in he' capacit as Co66issione' of &nte'nal Re(enue2)ON. TEO+&STO T. GU&NGONA# R.# in his capacit as E0ecuti(e Sec'eta'2 an,)ON. ROBERTO B. /E OCAMPO# in his capacit as Sec'eta' of +inance# 'espon,ents.

G.R. No. 11585 Au!ust "5# 1$$

C)AMBER O+ REA% ESTATE AN/ BU&%/ERS ASSOC&AT&ONS# &NC.# 9CREBA:# petitione'#(s.



T)E COMM&SS&ONER O+ &NTERNA% RE-ENUE# 'espon,ent.

G.R. No. 1158;1 Au!ust "5# 1$$

<&%OSBA*AN# &NC.# O-&TO R. SA%ONGA# C&R&%O A. R&GOS# ERME CAMBA#

EM&%&O C. CAPU%ONG# R.# OSE T. APO%O# EP)RA&M TEN/ERO# +ERNAN/OSANT&AGO# OSE ABCE/E# C)R&ST&NE TAN# +E%&PE %. GO4ON# RA+AE% G.+ERNAN/O# RAOU% -. -&CTOR&NO# OSE CUNANAN# =U&NT&N S. /OROMA%#MO-EMENT O+ ATTORNE*S +OR BROT)ER)OO/# &NTEGR&T* AN/ NAT&ONA%&SM# &NC. 9>MAB&N&>:# +REE/OM +ROM /EBT COA%&T&ON# &NC.#P)&%&PP&NE B&B%E SOC&ET*# &NC.# an, 3&GBERTO TA?A/A# petitione's#(s.T)E E@ECUT&-E SECRETAR*# T)E SECRETAR* O+ +&NANCE# T)ECOMM&SS&ONER O+ &NTERNA% RE-ENUE an, T)E COMM&SS&ONER O+CUSTOMS# 'espon,ents.

G.R. No. 115;5" Au!ust "5# 1$$P)&%&PP&NE A&R%&NES# &NC.# petitione'#(s.T)E SECRETAR* O+ +&NANCE# an, COMM&SS&ONER O+ &NTERNA% RE-ENUE#'espon,ents.

G.R. No. 115;87 Au!ust "5# 1$$

COOPERAT&-E UN&ON O+ T)E P)&%&PP&NES# petitione's#(s.)ON. %&3A*3A* -. C)ATO# in he' capacit as the Co66issione' of &nte'nalRe(enue# )ON. TEO+&STO T. GU&NGONA# R.# in his capacit as E0ecuti(e Sec'eta'#an, )ON. ROBERTO B. /E OCAMPO# in his capacit as Sec'eta' of +inance#'espon,ents.

G.R. No. 115$71 Au!ust "5# 1$$

P)&%&PP&NE E/UCAT&ONA% PUB%&S)ERS ASSOC&AT&ON# &NC.# an,ASSOC&AT&ON O+ P)&%&PP&NE BOO<SE%%ERS# petitione's#(s.)ON. ROBERTO B. /E OCAMPO# as the Sec'eta' of +inance2 )ON. %&3A*3A* -.C)ATO# as the Co66issione' of &nte'nal Re(enue an, )ON. GU&%%ERMOPARA*NO# R.# in his capacit as the Co66issione' of Custo6s# 'espon,ents.

A'tu'o M. Tolentino fo' an, in his behalf.

/onna Celeste /. +eliciano an, uan T. /a(i, fo' petitione's in G.R. No. 1155"5.

Roco# Buna!# <apunan# Mi!allos an, a',elea fo' petitione' R.S. Roco.



-illa'ana an, C'u fo' petitione's in G.R. No. 1155.

Ca'los A. Raneses an, Manuel M. Se''ano fo' petitione' in G.R. No. 11585.

Salon!a# )e'nan,e Alla,o fo' +'ee,on +'o6 /ebts Coalition# &nc. Phil. BibleSociet.

Estelito P. Men,oa fo' petitione' in G.R. No. 115;5".

Pan!aniban# Benite# Pa'la,e# Af'ica Ba'ina!a %a Offices fo' petitione's in G.R. No.115;87.

R.B. Ro,'i!ue Associates fo' petitione's in G.R. No. 115$71.

Re(e A.-. Sa!uisa! fo' MAB&N&.

MEN/O4A# .D

The (aluea,,e, ta0 9-AT: is le(ie, on the sale# ba'te' o' e0chan!e of !oo,s an, p'ope'ties as ell as on the sale o' e0chan!e of se'(ices. &t is eui(alent to 1F of the!'oss sellin! p'ice o' !'oss (alue in 6one of !oo,s o' p'ope'ties sol,# ba'te'e, o'e0chan!e, o' of the !'oss 'eceipts f'o6 the sale o' e0chan!e of se'(ices. Republic Act No. 881H seeIs to i,en the ta0 base of the e0istin! -AT sste6 an, enhance itsa,6inist'ation b a6en,in! the National &nte'nal Re(enue Co,e.

These a'e (a'ious suits fo' ce'tio'a'i an, p'ohibition# challen!in! the constitutionalit ofRepublic Act No. 881H on (a'ious !'oun,s su66a'ie, in the 'esolution of ul H# 1$$of this Cou't# as follosD

&. P'oce,u'al &ssuesD

A. /oes Republic Act No. 881H (iolate A't. -&# J " of the ConstitutionK

B. /oes it (iolate A't. -&# J "H9": of the ConstitutionK

C. 3hat is the e0tent of the poe' of the Bica6e'al Confe'ence Co66itteeK

&&. Substanti(e &ssuesD

A. /oes the la (iolate the folloin! p'o(isions in the Bill of Ri!hts 9A't. &&&:K

1. J1



". J

7. J 5

. J 1F

B. /oes the la (iolate the folloin! othe' p'o(isions of the ConstitutionK

1. A't. -&# J ";91:

". A't. -&# J ";97:

These uestions ill be ,ealt in the o',e' the a'e state, abo(e. As ill p'esentl bee0plaine, not all of these uestions a'e Lu,iciall co!niable# because not all p'o(isionsof the Constitution a'e self e0ecutin! an,# the'efo'e# Lu,iciall enfo'ceable. The othe',epa't6ents of the !o(e'n6ent a'e euall cha'!e, ith the enfo'ce6ent of the

Constitution# especiall the p'o(isions 'elatin! to the6.&. PROCE/URA% &SSUES

The contention of petitione's is that in enactin! Republic Act No. 881H# o' the E0pan,e,-alueA,,e, Ta0 %a# Con!'ess (iolate, the Constitution because# althou!h ). No.111$8 ha, o'i!inate, in the )ouse of Rep'esentati(es# it as not passe, b the Senate butas si6pl consoli,ate, ith the Senate (e'sion 9S. No. 1H7F: in the Confe'enceCo66ittee to p'o,uce the bill hich the P'esi,ent si!ne, into la. The folloin! p'o(isions of the Constitution a'e cite, in suppo't of the p'oposition that becauseRepublic Act No. 881H as passe, in this 6anne'# it ,i, not o'i!inate in the )ouse ofRep'esentati(es an, it has not the'eb beco6e a laD

A't. -&# J "D All app'op'iation# 'e(enue o' ta'iff bills# bills autho'iin! inc'ease of the public ,ebt# bills of local application# an, p'i(ate bills shall o'i!inate e0clusi(el in the)ouse of Rep'esentati(es# but the Senate 6a p'opose o' concu' ith a6en,6ents.

&,.# J "H9":D No bill passe, b eithe' )ouse shall beco6e a la unless it has passe, th'ee'ea,in!s on sepa'ate ,as# an, p'inte, copies the'eof in its final fo'6 ha(e been,ist'ibute, to its Me6be's th'ee ,as befo'e its passa!e# e0cept hen the P'esi,entce'tifies to the necessit of its i66e,iate enact6ent to 6eet a public cala6it o'e6e'!enc. Upon the last 'ea,in! of a bill# no a6en,6ent the'eto shall be alloe,# an,the (ote the'eon shall be taIen i66e,iatel the'eafte'# an, the eas an, nas ente'e, inthe ou'nal.

&t appea's that on (a'ious ,ates beteen ul ""# 1$$" an, Au!ust 71# 1$$7# se(e'al bills1 e'e int'o,uce, in the )ouse of Rep'esentati(es seeIin! to a6en, ce'tain p'o(isions of the National &nte'nal Re(enue Co,e 'elati(e to the (aluea,,e, ta0 o' -AT. These billse'e 'efe''e, to the )ouse 3as an, Means Co66ittee hich 'eco66en,e, fo'app'o(al a substitute 6easu'e# ). No. 111$8# entitle,



AN ACT RESTRUCTUR&NG T)E -A%UEA//E/ TA@ 9-AT: S*STEM TO 3&/EN&TS TA@ BASE AN/ EN)ANCE &TS A/M&N&STRAT&ON# AMEN/&NG +OR T)ESEPURPOSES SECT&ONS $$# 1FF# 1F"# 1F7# 1F# 1F5# 1FH# 1F8# 1F; AN/ 11F O+ T&T%E&-# 11"# 115 AN/ 11H O+ T&T%E -# AN/ "7H# "78 AN/ "7; O+ T&T%E &@# AN/

REPEA%&NG SECT&ONS 117 AN/ 11 O+ T&T%E -# A%% O+ T)E NAT&ONA%&NTERNA% RE-ENUE CO/E# AS AMEN/E/

The bill 9). No. 111$8: as consi,e'e, on secon, 'ea,in! sta'tin! No(e6be' H# 1$$7an,# on No(e6be' 18# 1$$7# it as app'o(e, b the )ouse of Rep'esentati(es afte' thi',an, final 'ea,in!.

&t as sent to the Senate on No(e6be' "7# 1$$7 an, late' 'efe''e, b that bo, to itsCo66ittee on 3as an, Means.

On +eb'ua' 8# 1$$# the Senate Co66ittee sub6itte, its 'epo't 'eco66en,in! app'o(al

of S. No. 1H7F# entitle,AN ACT RESTRUCTUR&NG T)E -A%UEA//E/ TA@ 9-AT: S*STEM TO 3&/EN&TS TA@ BASE AN/ EN)ANCE &TS A/M&N&STRAT&ON# AMEN/&NG +OR T)ESEPURPOSES SECT&ONS $$# 1FF# 1F"# 1F7# 1F# 1F5# 1F8# 1F;# AN/ 11F O+ T&T%E &-#11" O+ T&T%E -# AN/ "7H# "78# AN/ "7; O+ T&T%E &@# AN/ REPEA%&NGSECT&ONS 117# 11 an, 11H O+ T&T%E -# A%% O+ T)E NAT&ONA% &NTERNA%RE-ENUE CO/E# AS AMEN/E/# AN/ +OR OT)ER PURPOSES

&t as state, that the bill as bein! sub6itte, >in substitution of Senate Bill No. 11"$#taIin! into consi,e'ation P.S. Res. No. 87 an, ).B. No. 111$8.>

On +eb'ua' ;# 1$$# the Senate be!an consi,e'ation of the bill 9S. No. 1H7F:. &t finishe,,ebates on the bill an, app'o(e, it on secon, 'ea,in! on Ma'ch "# 1$$. On the sa6e,a# it app'o(e, the bill on thi', 'ea,in! b the affi'6ati(e (otes of 17 of its 6e6be's#ith one abstention.

). No. 111$8 an, its Senate (e'sion 9S. No. 1H7F: e'e then 'efe''e, to a confe'enceco66ittee hich# afte' 6eetin! fou' ti6es 9Ap'il 17# 1$# "1 an, "5# 1$$:# 'eco66en,e,that >)ouse Bill No. 111$8# in consoli,ation ith Senate Bill No. 1H7F# be app'o(e, inacco',ance ith the attache, cop of the bill as 'econcile, an, app'o(e, b theconfe'ees.>

The Confe'ence Co66ittee bill# entitle, >AN ACT RESTRUCTUR&NG T)E -A%UEA//E/ TA@ 9-AT: S*STEM# 3&/EN&NG &TS TA@ BASE AN/ EN)ANC&NG &TSA/M&N&STRAT&ON AN/ +OR T)ESE PURPOSES AMEN/&NG AN/ REPEA%&NGT)E RE%E-ANT PRO-&S&ONS O+ T)E NAT&ONA% &NTERNA% RE-ENUE CO/E#AS AMEN/E/# AN/ +OR OT)ER PURPOSES#> as the'eafte' app'o(e, b the)ouse of Rep'esentati(es on Ap'il "8# 1$$ an, b the Senate on Ma "# 1$$. Theen'olle, bill as then p'esente, to the P'esi,ent of the Philippines ho# on Ma 5# 1$$#



si!ne, it. &t beca6e Republic Act No. 881H. On Ma 1"# 1$$# Republic Act No. 881Has publishe, in to nespape's of !ene'al ci'culation an,# on Ma ";# 1$$# it tooIeffect# althou!h its i6ple6entation as suspen,e, until une 7F# 1$$ to allo ti6e fo'the 'e!ist'ation of business entities. &t oul, ha(e been enfo'ce, on ul 1# 1$$ but itsenfo'ce6ent as stoppe, because the Cou't# b the (ote of 11 to of its 6e6be's#

!'ante, a te6po'a' 'est'ainin! o',e' on une 7F# 1$$.

+i'st. Petitione's contention is that Republic Act No. 881H ,i, not >o'i!inatee0clusi(el> in the )ouse of Rep'esentati(es as 'eui'e, b A't. -&# J" of theConstitution# because it is in fact the 'esult of the consoli,ation of to ,istinct bills# ). No. 111$8 an, S. No. 1H7F. &n this connection# petitione's point out that althou!h A't. -&#SS " as a,opte, f'o6 the A6e'ican +e,e'al Constitution# " it is notable in to'espectsD the (e'b >shall o'i!inate> is ualifie, in the Philippine Constitution b the o',>e0clusi(el> an, the ph'ase >as on othe' bills> in the A6e'ican (e'sion is o6itte,. This6eans# acco',in! to the6# that to be consi,e'e, as ha(in! o'i!inate, in the )ouse#Republic Act No. 881H 6ust 'etain the essence of ). No. 111$8.

This a'!u6ent ill not bea' analsis. To be!in ith# it is not the la but the 'e(enue bill hich is 'eui'e, b the Constitution to >o'i!inate e0clusi(el> in the )ouse ofRep'esentati(es. &t is i6po'tant to e6phasie this# because a bill o'i!inatin! in the )ouse6a un,e'!o such e0tensi(e chan!es in the Senate that the 'esult 6a be a 'e'itin! ofthe hole. The possibilit of a thi', (e'sion b the confe'ence co66ittee ill be,iscusse, late'. At this point# hat is i6po'tant to note is that# as a 'esult of the Senateaction# a ,istinct bill 6a be p'o,uce,. To insist that a 'e(enue statute an, not onl the bill hich initiate, the le!islati(e p'ocess cul6inatin! in the enact6ent of the la 6ust substantiall be the sa6e as the )ouse bill oul, be to ,en the Senates poe' notonl to >concu' ith a6en,6ents> but also to >p'opose a6en,6ents.> &t oul, be to(iolate the coeualit of le!islati(e poe' of the to houses of Con!'ess an, in fact 6aIethe )ouse supe'io' to the Senate.

The contention that the constitutional ,esi!n is to li6it the Senates poe' in 'espect of'e(enue bills in o',e' to co6pensate fo' the !'ant to the Senate of the t'eat'atifin! poe' 7 an, the'eb eualie its poe's an, those of the )ouse o(e'looIs the fact thatthe poe's bein! co6pa'e, a'e ,iffe'ent. 3e a'e ,ealin! he'e ith the le!islati(e poe'hich un,e' the Constitution is (este, not in an pa'ticula' cha6be' but in the Con!'essof the Philippines# consistin! of >a Senate an, a )ouse of Rep'esentati(es.> Thee0e'cise of the t'eat'atifin! poe' is not the e0e'cise of le!islati(e poe'. &t is thee0e'cise of a checI on the e0ecuti(e poe'. The'e is# the'efo'e# no Lustification fo'co6pa'in! the le!islati(e poe's of the )ouse an, of the Senate on the basis of the possession of such nonle!islati(e poe' b the Senate. The possession of a si6ila' poe' b the U.S. Senate 5 has ne(e' been thou!ht of as !i(in! it 6o'e le!islati(e poe's thanthe )ouse of Rep'esentati(es.

&n the Unite, States# the (ali,it of a p'o(ision 9J 78: i6posin! an a, (alo'e6 ta0 base,on the ei!ht of (essels# hich the U.S. Senate ha, inse'te, in the Ta'iff Act of 1$F$#as uphel, a!ainst the clai6 that the p'o(ision as a 'e(enue bill hich o'i!inate, in the



Senate in cont'a(ention of A't. &# J 8 of the U.S. Constitution. H No' is the poe' toa6en, li6ite, to a,,in! a p'o(ision o' to in a 'e(enue bill e6anatin! f'o6 the )ouse.The U.S. Senate has !one so fa' as chan!in! the hole of bills folloin! the enactin!clause an, substitutin! its on (e'sions. &n 1;;7# fo' e0a6ple# it st'ucI out e(e'thin!afte' the enactin! clause of a ta'iff bill an, 'ote in its place its on 6easu'e# an, the

)ouse subseuentl accepte, the a6en,6ent. The U.S. Senate liIeise a,,e, ;8a6en,6ents to hat late' beca6e the PaneAl,'ich Ta'iff Act of 1$F$2 it ,ictate, thesche,ules of the Ta'iff Act of 1$"12 it 'e'ote an e0tensi(e ta0 'e(ision bill in the sa6eea' an, 'ecast 6ost of the ta'iff bill of 1$"". 8 Gi(en# then# the poe' of the Senate to p'opose a6en,6ents# the Senate can p'opose its on (e'sion e(en ith 'espect to billshich a'e 'eui'e, b the Constitution to o'i!inate in the )ouse.

&t is insiste,# hoe(e'# that S. No. 1H7F as passe, not in substitution of ). No. 111$8 but of anothe' Senate bill 9S. No. 11"$: ea'lie' file, an, that hat the Senate ,i, as6e'el to >taIe ). No. 111$8 into consi,e'ation> in enactin! S. No. 1H7F. The'e is'eall no ,iffe'ence beteen the Senate p'ese'(in! ). No. 111$8 up to the enactin! clause

an, then 'itin! its on (e'sion folloin! the enactin! clause 9hich# it oul, see6# petitione's a,6it is an a6en,6ent b substitution:# an,# on the othe' han,# sepa'atel p'esentin! a bill of its on on the sa6e subLect 6atte'. &n eithe' case the 'esult a'e to bills on the sa6e subLect.

&n,ee,# hat the Constitution si6pl 6eans is that the initiati(e fo' filin! 'e(enue# ta'iff#o' ta0 bills# bills autho'iin! an inc'ease of the public ,ebt# p'i(ate bills an, bills of localapplication 6ust co6e f'o6 the )ouse of Rep'esentati(es on the theo' that# electe, asthe a'e f'o6 the ,ist'icts# the 6e6be's of the )ouse can be e0pecte, to be 6o'esensiti(e to the local nee,s an, p'oble6s. On the othe' han,# the senato's# ho a'eelecte, at la'!e# a'e e0pecte, to app'oach the sa6e p'oble6s f'o6 the national pe'specti(e. Both (ies a'e the'eb 6a,e to bea' on the enact6ent of such las.

No' ,oes the Constitution p'ohibit the filin! in the Senate of a substitute bill inanticipation of its 'eceipt of the bill f'o6 the )ouse# so lon! as action b the Senate as a bo, is ithhel, pen,in! 'eceipt of the )ouse bill. The Cou't cannot# the'efo'e#un,e'stan, the ala'6 e0p'esse, o(e' the fact that on Ma'ch 1# 1$$7# ei!ht 6onths befo'ethe )ouse passe, ). No. 111$8# S. No. 11"$ ha, been file, in the Senate. Afte' all it ,oesnot appea' that the Senate e(e' consi,e'e, it. &t as onl afte' the Senate ha, 'ecei(e, ). No. 111$8 on No(e6be' "7# 1$$7 that the p'ocess of le!islation in 'espect of it be!anith the 'efe''al to the Senate Co66ittee on 3as an, Means of ). No. 111$8 an, thesub6ission b the Co66ittee on +eb'ua' 8# 1$$ of S. No. 1H7F. +o' that 6atte'# if theuestion e'e si6pl the p'io'it in the ti6e of filin! of bills# the fact is that it as in the)ouse that a bill 9). No. "57: to a6en, the -AT la as fi'st file, on ul ""# 1$$".Se(e'al othe' bills ha, been file, in the )ouse befo'e S. No. 11"$ as file, in the Senate#an, ). No. 111$8 as onl a substitute of those ea'lie' bills.

Secon,. Enou!h has been sai, to sho that it as ithin the poe' of the Senate to p'opose S. No. 1H7F. 3e no pass to the ne0t a'!u6ent of petitione's that S. No. 1H7F,i, not pass th'ee 'ea,in!s on sepa'ate ,as as 'eui'e, b the Constitution ; because the



secon, an, thi', 'ea,in!s e'e ,one on the sa6e ,a# Ma'ch "# 1$$. But this as because on +eb'ua' "# 1$$ $ an, a!ain on Ma'ch ""# 1$$# 1F the P'esi,ent ha,ce'tifie, S. No. 1H7F as u'!ent. The p'esi,ential ce'tification ,ispense, ith the'eui'e6ent not onl of p'intin! but also that of 'ea,in! the bill on sepa'ate ,as. The ph'ase >e0cept hen the P'esi,ent ce'tifies to the necessit of its i66e,iate enact6ent#

etc.> in A't. -&# J "H9": ualifies the to state, con,itions befo'e a bill can beco6e a laD9i: the bill has passe, th'ee 'ea,in!s on sepa'ate ,as an, 9ii: it has been p'inte, in itsfinal fo'6 an, ,ist'ibute, th'ee ,as befo'e it is finall app'o(e,.

&n othe' o',s# the >unless> clause 6ust be 'ea, in 'elation to the >e0cept> clause# because the to a'e 'eall coo',inate clauses of the sa6e sentence. To const'ue the>e0cept> clause as si6pl ,ispensin! ith the secon, 'eui'e6ent in the >unless> clause9i.e.# p'intin! an, ,ist'ibution th'ee ,as befo'e final app'o(al: oul, not onl (iolate the'ules of !'a66a'. &t oul, also ne!ate the (e' p'e6ise of the >e0cept> clauseD thenecessit of secu'in! the i66e,iate enact6ent of a bill hich is ce'tifie, in o',e' to 6eeta public cala6it o' e6e'!enc. +o' if it is onl the p'intin! that is ,ispense, ith b

p'esi,ential ce'tification# the ti6e sa(e, oul, be so ne!li!ible as to be of an use ininsu'in! i66e,iate enact6ent. &t 6a ell be ,oubte, hethe' ,oin! aa ith thenecessit of p'intin! an, ,ist'ibutin! copies of the bill th'ee ,as befo'e the thi', 'ea,in!oul, insu'e spee, enact6ent of a la in the face of an e6e'!enc 'eui'in! the callin!of a special election fo' P'esi,ent an, -iceP'esi,ent. Un,e' the Constitution such a lais 'eui'e, to be 6a,e ithin se(en ,as of the con(enin! of Con!'ess in e6e'!encsession. 11

That upon the ce'tification of a bill b the P'esi,ent the 'eui'e6ent of th'ee 'ea,in!s onsepa'ate ,as an, of p'intin! an, ,ist'ibution can be ,ispense, ith is suppo'te, b theei!ht of le!islati(e p'actice. +o' e0a6ple# the bill ,efinin! the ce'tio'a'i Lu'is,iction ofthis Cou't hich# in consoli,ation ith the Senate (e'sion# beca6e Republic Act No.5F# as passe, on secon, an, thi', 'ea,in!s in the )ouse of Rep'esentati(es on thesa6e ,a 9Ma 1# 1$H;: afte' the bill ha, been ce'tifie, b the P'esi,ent as u'!ent. 1"

The'e is# the'efo'e# no 6e'it in the contention that p'esi,ential ce'tification ,ispensesonl ith the 'eui'e6ent fo' the p'intin! of the bill an, its ,ist'ibution th'ee ,as befo'eits passa!e but not ith the 'eui'e6ent of th'ee 'ea,in!s on sepa'ate ,as# also.

&t is nonetheless u'!e, that the ce'tification of the bill in this case as in(ali, becausethe'e as no e6e'!enc# the con,ition state, in the ce'tification of a >!'oin! bu,!et,eficit> not bein! an unusual con,ition in this count'.

&t is noteo'th that no 6e6be' of the Senate sa fit to cont'o(e't the 'ealit of thefactual basis of the ce'tification. To the cont'a'# b passin! S. No. 1H7F on secon, an,thi', 'ea,in!s on Ma'ch "# 1$$# the Senate accepte, the P'esi,ents ce'tification.Shoul, such ce'tification be no 'e(iee, b this Cou't# especiall hen no e(i,encehas been shon that# because S. No. 1H7F as taIen up on secon, an, thi', 'ea,in!s onthe sa6e ,a# the 6e6be's of the Senate e'e ,ep'i(e, of the ti6e nee,e, fo' the stu,of a (ital piece of le!islationK



The sufficienc of the factual basis of the suspension of the 'it of habeas co'pus o',ecla'ation of 6a'tial la un,e' A't. -&&# J 1;# o' the e0istence of a national e6e'!enc Lustifin! the ,ele!ation of e0t'ao',ina' poe's to the P'esi,ent un,e' A't. -&# J "79":#is subLect to Lu,icial 'e(ie because basic 'i!hts of in,i(i,uals 6a be at haa',. But the

factual basis of p'esi,ential ce'tification of bills# hich in(ol(es ,oin! aa ith p'oce,u'al 'eui'e6ents ,esi!ne, to insu'e that bills a'e ,ul consi,e'e, b 6e6be's ofCon!'ess# ce'tainl shoul, elicit a ,iffe'ent stan,a', of 'e(ie.

Petitione's also in(ite attention to the fact that the P'esi,ent ce'tifie, S. No. 1H7F an, not). No. 111$8. That is because S. No. 1H7F as hat the Senate as consi,e'in!. 3henthe 6atte' as befo'e the )ouse# the P'esi,ent liIeise ce'tifie, ). No. $"1F the pen,in!in the )ouse.

Thi',. +inall it is conten,e, that the bill hich beca6e Republic Act No. 881H is the bill hich the Confe'ence Co66ittee p'epa'e, b consoli,atin! ). No. 111$8 an, S. No.

1H7F. &t is clai6e, that the Confe'ence Co66ittee 'epo't inclu,e, p'o(isions not foun,in eithe' the )ouse bill o' the Senate bill an, that these p'o(isions e'e >su''eptitiousl>inse'te, b the Confe'ence Co66ittee. Much is 6a,e of the fact that in the last to ,asof its session on Ap'il "1 an, "5# 1$$ the Co66ittee 6et behin, close, ,oo's. 3e a'enot tol,# hoe(e'# hethe' the p'o(isions e'e not the 'esult of the !i(e an, taIe thatoften 6a'I the p'ocee,in!s of confe'ence co66ittees.

No' is the'e anthin! unusual o' e0t'ao',ina' about the fact that the Confe'enceCo66ittee 6et in e0ecuti(e sessions. Often the onl a to 'each a!'ee6ent onconflictin! p'o(isions is to 6eet behin, close, ,oo's# ith onl the confe'ees p'esent.Othe'ise# no co6p'o6ise is liIel to be 6a,e. The Cou't is not about to taIe thesu!!estion of a cabal o' siniste' 6oti(e att'ibute, to the confe'ees on the basis solel ofthei' >sec'et 6eetin!s> on Ap'il "1 an, "5# 1$$# no' 'ea, anthin! into the inco6plete'e6a'Is of the 6e6be's# 6a'Ie, in the t'ansc'ipt of steno!'aphic notes b ellipses. Theinco6plete sentences a'e p'obabl ,ue to the steno!'aphe's on li6itations o' to theincohe'ence that so6eti6es cha'acte'ie con(e'sations. 3illia6 Safi'e note, so6e suchlapses in 'eco',e, talIs e(en b 'ecent past P'esi,ents of the Unite, States.

&n an e(ent# in the Unite, States confe'ence co66ittees ha, been custo6a'il hel, ine0ecuti(e sessions ith onl the confe'ees an, thei' staffs in atten,ance. 17 Onl in No(e6be' 1$85 as a ne 'ule a,opte, 'eui'in! open sessions. E(en then a 6aLo'it ofeithe' cha6be's confe'ees 6a (ote in public to close the 6eetin!s. 1

As to the possibilit of an enti'el ne bill e6e'!in! out of a Confe'ence Co66ittee# ithas been e0plaine,D

Un,e' con!'essional 'ules of p'oce,u'e# confe'ence co66ittees a'e not e0pecte, to 6aIean 6ate'ial chan!e in the 6easu'e at issue# eithe' b ,eletin! p'o(isions to hich bothhouses ha(e al'ea, a!'ee, o' b inse'tin! ne p'o(isions. But this is a ,ifficult p'o(ision to enfo'ce. Note the p'oble6 hen one house a6en,s a p'oposal o'i!inatin! in



eithe' house b st'iIin! out e(e'thin! folloin! the enactin! clause an, substitutin! p'o(isions hich 6aIe it an enti'el ne bill. The (e'sions a'e no alto!ethe' ,iffe'ent# pe'6ittin! a confe'ence co66ittee to ,'aft essentiall a ne bill. . . . 15

The 'esult is a thi', (e'sion# hich is consi,e'e, an >a6en,6ent in the natu'e of a

substitute#> the onl 'eui'e6ent fo' hich bein! that the thi', (e'sion be !e'6ane to thesubLect of the )ouse an, Senate bills. 1H

&n,ee,# this Cou't 'ecentl hel, that it is ithin the poe' of a confe'ence co66ittee toinclu,e in its 'epo't an enti'el ne p'o(ision that is not foun, eithe' in the )ouse bill o'in the Senate bill. 18 &f the co66ittee can p'opose an a6en,6ent consistin! of one o'to p'o(isions# the'e is no 'eason h it cannot p'opose se(e'al p'o(isions# collecti(elconsi,e'e, as an >a6en,6ent in the natu'e of a substitute#> so lon! as such a6en,6ent is!e'6ane to the subLect of the bills befo'e the co66ittee. Afte' all# its 'epo't as not final but nee,e, the app'o(al of both houses of Con!'ess to beco6e (ali, as an act of thele!islati(e ,epa't6ent. The cha'!e that in this case the Confe'ence Co66ittee acte, as a

thi', le!islati(e cha6be' is thus ithout an basis. 1; Nonetheless# it is a'!ue, that un,e' the 'especti(e Rules of the Senate an, the )ouse ofRep'esentati(es a confe'ence co66ittee can onl act on the ,iffe'in! p'o(isions of aSenate bill an, a )ouse bill# an, that cont'a' to these Rules the Confe'ence Co66itteeinse'te, p'o(isions not foun, in the bills sub6itte, to it. The folloin! p'o(isions a'ecite, in suppo't of this contentionD

Rules of the Senate

Rule @&&D

J "H. &n the e(ent that the Senate ,oes not a!'ee ith the )ouse of Rep'esentati(es onthe p'o(ision of an bill o' Loint 'esolution# the ,iffe'ences shall be settle, b aconfe'ence co66ittee of both )ouses hich shall 6eet ithin ten ,as afte' thei'co6position.

The P'esi,ent shall ,esi!nate the 6e6be's of the confe'ence co66ittee in acco',anceith subpa'a!'aph 9c:# Section 7 of Rule &&&.

Each Confe'ence Co66ittee Repo't shall contain a ,etaile, an, sufficientl e0plicitstate6ent of the chan!es in o' a6en,6ents to the subLect 6easu'e# an, shall be si!ne, bthe confe'ees.

The consi,e'ation of such 'epo't shall not be in o',e' unless the 'epo't has been file, iththe Sec'eta' of the Senate an, copies the'eof ha(e been ,ist'ibute, to the Me6be's.

9E6phasis a,,e,:

Rules of the )ouse of Rep'esentati(es



Rule @&-D

J ;5. Confe'ence Co66ittee Repo'ts. &n the e(ent that the )ouse ,oes not a!'eeith the Senate on the a6en,6ents to an bill o' Loint 'esolution# the ,iffe'ences 6a be

settle, b confe'ence co66ittees of both Cha6be's.

The consi,e'ation of confe'ence co66ittee 'epo'ts shall alas be in o',e'# e0cept henthe Lou'nal is bein! 'ea,# hile the 'oll is bein! calle, o' the )ouse is ,i(i,in! on anuestion. Each of the pa!es of such 'epo'ts shall be si!ne, b the confe'ees. Each 'epo'tshall contain a ,etaile,# sufficientl e0plicit state6ent of the chan!es in o' a6en,6ents tothe subLect 6easu'e.

The consi,e'ation of such 'epo't shall not be in o',e' unless copies the'eof a'e ,ist'ibute,to the Me6be'sD P'o(i,e,# That in the last fifteen ,as of each session pe'io, it shall be,ee6e, sufficient that th'ee copies of the 'epo't# si!ne, as abo(e p'o(i,e,# a'e ,eposite,

in the office of the Sec'eta' Gene'al.9E6phasis a,,e,:

To be su'e# nothin! in the Rules li6its a confe'ence co66ittee to a consi,e'ation ofconflictin! p'o(isions. But Rule @%&-# J 11" of the Rules of the Senate is cite, to theeffect that >&f the'e is no Rule applicable to a specific case the p'ece,ents of the%e!islati(e /epa't6ent of the Philippines shall be 'eso'te, to# an, as a supple6ent ofthese# the Rules containe, in effe'sons Manual.> The folloin! is then uote, f'o6 theeffe'sons ManualD

The 6ana!e's of a confe'ence 6ust confine the6sel(es to the ,iffe'ences co66itte, tothe6. . . an, 6a not inclu,e subLects not ithin ,isa!'ee6ents# e(en thou!h !e'6ane toa uestion in issue.

Note that# acco',in! to Rule @%&@# J 11"# in case the'e is no specific 'ule applicable#'eso't 6ust be to the le!islati(e p'actice. The effe'sons Manual is 'eso'te, to onl assupple6ent. &t is co66on place in Con!'ess that confe'ence co66ittee 'epo'ts inclu,ene 6atte's hich# thou!h !e'6ane# ha(e not been co66itte, to the co66ittee. This p'actice as a,6itte, b Senato' Raul S. Roco# petitione' in G.R. No. 11557# ,u'in! theo'al a'!u6ent in these cases. 3hate(e'# then# 6a be p'o(i,e, in the effe'sons Manual6ust be consi,e'e, to ha(e been 6o,ifie, b the le!islati(e p'actice. &f a chan!e is,esi'e, in the p'actice it 6ust be sou!ht in Con!'ess since this uestion is not co(e'e, ban constitutional p'o(ision but is onl an inte'nal 'ule of each house. Thus# A't. -&# J1H97: of the Constitution p'o(i,es that >Each )ouse 6a ,ete'6ine the 'ules of its p'ocee,in!s. . . .>

This obse'(ation applies to the othe' contention that the Rules of the to cha6be's e'eliIeise ,is'e!a',e, in the p'epa'ation of the Confe'ence Co66ittee Repo't because theRepo't ,i, not contain a >,etaile, an, sufficientl e0plicit state6ent of chan!es in# o'



a6en,6ents to# the subLect 6easu'e.> The Repo't use, b'acIets an, capital lette's toin,icate the chan!es. This is a stan,a', p'actice in bill,'aftin!. 3e cannot sa that inusin! these 6a'Is an, s6bols the Co66ittee (iolate, the Rules of the Senate an, the)ouse. Mo'eo(e'# this Cou't is not the p'ope' fo'u6 fo' the enfo'ce6ent of these inte'nalRules. To the cont'a'# as e ha(e al'ea, 'ule,# >pa'lia6enta' 'ules a'e 6e'el

p'oce,u'al an, ith thei' obse'(ance the cou'ts ha(e no conce'n.> 1$ Ou' conce'n is iththe p'oce,u'al 'eui'e6ents of the Constitution fo' the enact6ent of las. As fa' as these'eui'e6ents a'e conce'ne,# e a'e satisfie, that the ha(e been faithfull obse'(e, inthese cases.

No' is the'e an 'eason fo' 'eui'in! that the Co66ittees Repo't in these cases 6ustha(e un,e'!one th'ee 'ea,in!s in each of the to houses. &f that be the case# the'e oul, be no en, to ne!otiation since each house 6a seeI 6o,ifications of the co6p'o6ise bill.The natu'e of the bill# the'efo'e# 'eui'es that it be acte, upon b each house on a >taIe ito' lea(e it> basis# ith the onl alte'nati(e that if it is not app'o(e, b both houses#anothe' confe'ence co66ittee 6ust be appointe,. But then a!ain the 'esult oul, still be

a co6p'o6ise 6easu'e that 6a not be holl satisfin! to both houses.A't. -&# J "H9": 6ust# the'efo'e# be const'ue, as 'efe''in! onl to bills int'o,uce, fo' thefi'st ti6e in eithe' house of Con!'ess# not to the confe'ence co66ittee 'epo't. +o' if the pu'pose of 'eui'in! th'ee 'ea,in!s is to !i(e 6e6be's of Con!'ess ti6e to stu, bills# itcannot be !ainsai, that ). No. 111$8 as passe, in the )ouse afte' th'ee 'ea,in!s2 that inthe Senate it as consi,e'e, on fi'st 'ea,in! an, then 'efe''e, to a co66ittee of that bo,2 that althou!h the Senate co66ittee ,i, not 'epo't out the )ouse bill# it sub6itte, a(e'sion 9S. No. 1H7F: hich it ha, p'epa'e, b >taIin! into consi,e'ation> the )ouse bill2that fo' its pa't the Confe'ence Co66ittee consoli,ate, the to bills an, p'epa'e, aco6p'o6ise (e'sion2 that the Confe'ence Co66ittee Repo't as the'eafte' app'o(e, bthe )ouse an, the Senate# p'esu6abl afte' app'op'iate stu, b thei' 6e6be's. 3ecannot sa that# as a 6atte' of fact# the 6e6be's of Con!'ess e'e not full info'6e, ofthe p'o(isions of the bill. The alle!ation that the Confe'ence Co66ittee usu'pe, thele!islati(e poe' of Con!'ess is# in ou' (ie# ithout a''ant in fact an, in la.

+ou'th. 3hate(e' ,oubts the'e 6a be as to the fo'6al (ali,it of Republic Act No.881H 6ust be 'esol(e, in its fa(o'. Ou' cases "F 6anifest fi'6 a,he'ence to the 'ule thatan en'olle, cop of a bill is conclusi(e not onl of its p'o(isions but also of its ,ueenact6ent. Not e(en clai6s that a p'opose, constitutional a6en,6ent as in(ali, because the 'euisite (otes fo' its app'o(al ha, not been obtaine, "1 o' that ce'tain p'o(isions of a statute ha, been >s6u!!le,> in the p'intin! of the bill "" ha(e 6o(e, o' pe'sua,e, us to looI behin, the p'ocee,in!s of a coeual b'anch of the !o(e'n6ent.The'e is no 'eason no to ,epa't f'o6 this 'ule.

No clai6 is he'e 6a,e that the >en'olle, bill> 'ule is absolute. &n fact in one case "7 e>ent behin,> an en'olle, bill an, consulte, the ou'nal to ,ete'6ine hethe' ce'tain p'o(isions of a statute ha, been app'o(e, b the Senate in (ie of the fact that theP'esi,ent of the Senate hi6self# ho ha, si!ne, the en'olle, bill# a,6itte, a 6istaIe an,ith,'e his si!natu'e# so that in effect the'e as no lon!e' an en'olle, bill to consi,e'.



But he'e alle!ations that the constitutional p'oce,u'es fo' the passa!e of bills ha(e not been obse'(e, ha(e no 6o'e basis than anothe' alle!ation that the Confe'ence Co66ittee>su''eptitiousl> inse'te, p'o(isions into a bill hich it ha, p'epa'e,# e shoul, ,eclinethe in(itation to !o behin, the en'olle, cop of the bill. To ,is'e!a', the >en'olle, bill>

'ule in such cases oul, be to ,is'e!a', the 'espect ,ue the othe' to ,epa't6ents of ou'!o(e'n6ent.

+ifth. An a,,itional attacI on the fo'6al (ali,it of Republic Act No. 881H is 6a,e bthe Philippine Ai'lines# &nc.# petitione' in G.R. No. 115;"# na6el# that it (iolates A't. -&#J "H91: hich p'o(i,es that >E(e' bill passe, b Con!'ess shall e6b'ace onl onesubLect hich shall be e0p'esse, in the title the'eof.> &t is conten,e, that neithe' ). No.111$8 no' S. No. 1H7F p'o(i,e, fo' 'e6o(al of e0e6ption of PA% t'ansactions f'o6 the pa6ent of the -AT an, that this as 6a,e onl in the Confe'ence Co66ittee bill hich beca6e Republic Act No. 881H ithout 'eflectin! this fact in its title.

The title of Republic Act No. 881H isDAN ACT RESTRUCTUR&NG T)E -A%UE A//E/ TA@ 9-AT: S*STEM#3&/EN&NG &TS TA@ BASE AN/ EN)ANC&NG &TS A/M&N&STRAT&ON# AN/ +ORT)ESE PURPOSES AMEN/&NG AN/ REPEA%&NG T)E RE%E-ANT PRO-&S&ONSO+ T)E NAT&ONA% &NTERNA% RE-ENUE CO/E# AS AMEN/E/# AN/ +OROT)ER PURPOSES.

A6on! the p'o(isions of the N&RC a6en,e, is J 1F7# hich o'i!inall 'ea,D

J 1F7. E0e6pt t'ansactions. The folloin! shall be e0e6pt f'o6 the (aluea,,e,ta0D

. . . .

9: T'ansactions hich a'e e0e6pt un,e' special las o' inte'national a!'ee6ents tohich the Philippines is a si!nato'. A6on! the t'ansactions e0e6pte, f'o6 the -ATe'e those of PA% because it as e0e6pte, un,e' its f'anchise 9P./. No. 15$F: f'o6 the pa6ent of all >othe' ta0es . . . no o' in the nea' futu'e#> in consi,e'ation of the pa6ent b it eithe' of the co'po'ate inco6e ta0 o' a f'anchise ta0 of ".

As a 'esult of its a6en,6ent b Republic Act No. 881H# J 1F7 of the N&RC no p'o(i,esD

J 1F7. E0e6pt t'ansactions. The folloin! shall be e0e6pt f'o6 the (aluea,,e,ta0D

. . . .

9: T'ansactions hich a'e e0e6pt un,e' special las# e0cept those !'ante, un,e'



P'esi,ential /ec'ee Nos. HH# 5"$# $8"# 1$1# 15$F. . . .

The effect of the a6en,6ent is to 'e6o(e the e0e6ption !'ante, to PA%# as fa' as the-AT is conce'ne,.

The uestion is hethe' this a6en,6ent of J 1F7 of the N&RC is fai'l e6b'ace, in thetitle of Republic Act No. 881H# althou!h no 6ention is 6a,e the'ein of P./. No. 15$F asa6on! those hich the statute a6en,s. 3e thinI it is# since the title states that the pu'pose of the statute is to e0pan, the -AT sste6# an, one a of ,oin! this is to i,enits base b ith,'ain! so6e of the e0e6ptions !'ante, befo'e. To insist that P./. No.15$F be 6entione, in the title of the la# in a,,ition to J 1F7 of the N&RC# in hich it isspecificall 'efe''e, to# oul, be to insist that the title of a bill shoul, be a co6pletein,e0 of its content.

The constitutional 'eui'e6ent that e(e' bill passe, b Con!'ess shall e6b'ace onl onesubLect hich shall be e0p'esse, in its title is inten,e, to p'e(ent su'p'ise upon the

6e6be's of Con!'ess an, to info'6 the people of pen,in! le!islation so that# if the ishto# the can be hea', 'e!a',in! it. &f# in the case at ba'# petitione' ,i, not Ino befo'e thatits e0e6ption ha, been ith,'an# it is not because of an ,efect in the title but pe'hapsfo' the sa6e 'eason othe' statutes# althou!h publishe,# pass unnotice, until so6e e(entso6eho calls attention to thei' e0istence. &n,ee,# the title of Republic Act No. 881H isnot an 6o'e !ene'al than the title of PA%s on f'anchise un,e' P./. No. 15$F# an, etno 6ention is 6a,e of its ta0 e0e6ption. The title of P./. No. 15$F isD

AN ACT GRANT&NG A NE3 +RANC)&SE TO P)&%&PP&NE A&R%&NES# &NC. TOESTAB%&S)# OPERATE# AN/ MA&NTA&N A&RTRANSPORT SER-&CES &N T)EP)&%&PP&NES AN/ BET3EEN T)E P)&%&PP&NES AN/ OT)ER COUNTR&ES.

The t'en, in ou' cases is to const'ue the constitutional 'eui'e6ent in such a 6anne' thatcou'ts ,o not un,ul inte'fe'e ith the enact6ent of necessa' le!islation an, to consi,e'it sufficient if the title e0p'esses the !ene'al subLect of the statute an, all its p'o(isions a'e!e'6ane to the !ene'al subLect thus e0p'esse,. "

&t is fu'the' conten,e, that a6en,6ent of petitione's f'anchise 6a onl be 6a,e bspecial la# in (ie of J " of P./. No. 15$F hich p'o(i,esD

This f'anchise# as a6en,e,# o' an section o' p'o(ision he'eof 6a onl be 6o,ifie,#a6en,e,# o' 'epeale, e0p'essl b a special la o' ,ec'ee that shall specificall 6o,if#a6en,# o' 'epeal this f'anchise o' an section o' p'o(ision the'eof.

This p'o(ision is e(i,entl inten,e, to p'e(ent the a6en,6ent of the f'anchise b 6e'ei6plication 'esultin! f'o6 the enact6ent of a late' inconsistent statute# in consi,e'ation of the fact that a f'anchise is a cont'act hich can be alte'e, onl b consent of the pa'ties.Thus in Manila Rail'oa, Co. (.Raffe't# "5 it as hel, that an Act of the U.S. Con!'ess# hich p'o(i,e, fo' the pa6entof ta0 on ce'tain !oo,s an, a'ticles i6po'te, into the Philippines# ,i, not a6en, the



f'anchise of plaintiff# hich e0e6pte, it f'o6 all ta0es e0cept those 6entione, in itsf'anchise. &t as hel, that a special la cannot be a6en,e, b a !ene'al la.

&n cont'ast# in the case at ba'# Republic Act No. 881H e0p'essl a6en,s PA%s f'anchise9P./. No. 15$F: b specificall e0ceptin! f'o6 the !'ant of e0e6ptions f'o6 the -AT

PA%s e0e6ption un,e' P./. No. 15$F. This is ithin the poe' of Con!'ess to ,o un,e'A't. @&&# J 11 of the Constitution# hich p'o(i,es that the !'ant of a f'anchise fo' theope'ation of a public utilit is subLect to a6en,6ent# alte'ation o' 'epeal b Con!'esshen the co66on !oo, so 'eui'es.

&&. SUBSTANT&-E &SSUES

A. Clai6s of P'ess +'ee,o6# +'ee,o6 of Thou!ht an, Reli!ious +'ee,o6

The Philippine P'ess &nstitute 9PP&:# petitione' in G.R. No. 1155# is a nonp'ofito'!aniation of nespape' publishe's establishe, fo' the i6p'o(e6ent of Lou'nalis6 in

the Philippines. On the othe' han,# petitione' in G.R. No. 1158;1# the Philippine BibleSociet 9PBS:# is a nonp'ofit o'!aniation en!a!e, in the p'intin! an, ,ist'ibution of bibles an, othe' 'eli!ious a'ticles. Both petitione's clai6 (iolations of thei' 'i!hts un,e' JJ an, 5 of the Bill of Ri!hts as a 'esult of the enact6ent of the -AT %a.

The PP& uestions the la insofa' as it has ith,'an the e0e6ption p'e(iousl !'ante,to the p'ess un,e' J 1F7 9f: of the N&RC. Althou!h the e0e6ption as subseuentl'esto'e, b a,6inist'ati(e 'e!ulation ith 'espect to the ci'culation inco6e ofnespape's# the PP& p'esses its clai6 because of the possibilit that the e0e6ption 6astill be 'e6o(e, b 6e'e 'e(ocation of the 'e!ulation of the Sec'eta' of +inance. On theothe' han,# the PBS !oes so fa' as to uestion the Sec'eta's poe' to !'ant e0e6ptionfo' to 'easonsD 91: The Sec'eta' of +inance has no poe' to !'ant ta0 e0e6ption because this is (este, in Con!'ess an, 'eui'es fo' its e0e'cise the (ote of a 6aLo'it ofall its 6e6be's "H an, 9": the Sec'eta's ,ut is to e0ecute the la.

J 1F7 of the N&RC contains a list of t'ansactions e0e6pte, f'o6 -AT. A6on! thet'ansactions p'e(iousl !'ante, e0e6ption e'eD

9f: P'intin!# publication# i6po'tation o' sale of booIs an, an nespape'# 6a!aine#'e(ie# o' bulletin hich appea's at 'e!ula' inte'(als ith fi0e, p'ices fo' subsc'iptionan, sale an, hich is ,e(ote, p'incipall to the publication of a,(e'tise6ents.

Republic Act No. 881H a6en,e, J 1F7 b ,eletin! Q 9f: ith the 'esult that p'int 6e,ia beca6e subLect to the -AT ith 'espect to all aspects of thei' ope'ations. %ate'# hoe(e'# base, on a 6e6o'an,u6 of the Sec'eta' of ustice# 'espon,ent Sec'eta' of +inanceissue, Re(enue Re!ulations No. 11$# ,ate, une "8# 1$$# e0e6ptin! the >ci'culationinco6e of p'int 6e,ia pu'suant to J A'ticle &&& of the 1$;8 Philippine Constitution!ua'anteein! a!ainst ab'i,!6ent of f'ee,o6 of the p'ess# a6on! othe's.> The e0e6ptionof >ci'culation inco6e> has left inco6e f'o6 a,(e'tise6ents still subLect to the -AT.



&t is unnecessa' to pass upon the contention that the e0e6ption !'ante, is beon, theautho'it of the Sec'eta' of +inance to !i(e# in (ie of PP&s contention that e(en iththe e0e6ption of the ci'culation 'e(enue of p'int 6e,ia the'e is still an unconstitutionalab'i,!6ent of p'ess f'ee,o6 because of the i6position of the -AT on the !'oss 'eceiptsof nespape's f'o6 a,(e'tise6ents an, on thei' acuisition of pape'# inI an, se'(ices fo'

publication. E(en on the assu6ption that no e0e6ption has effecti(el been !'ante, to p'int 6e,ia t'ansactions# e fin, no (iolation of p'ess f'ee,o6 in these cases.

To be su'e# e a'e not ,ealin! he'e ith a statute that on its face ope'ates in the a'ea of p'ess f'ee,o6. The PP&s clai6 is si6pl that# as applie, to nespape's# the la ab'i,!es p'ess f'ee,o6. E(en ith ,ue 'eco!nition of its hi!h estate an, its i6po'tance in a,e6oc'atic societ# hoe(e'# the p'ess is not i66une f'o6 !ene'al 'e!ulation b theState. &t has been hel,D

The publishe' of a nespape' has no i66unit f'o6 the application of !ene'al las. )ehas no special p'i(ile!e to in(a,e the 'i!hts an, libe'ties of othe's. )e 6ust anse' fo'

libel. )e 6a be punishe, fo' conte6pt of cou't. . . . %iIe othe's# he 6ust pa euitablean, non,isc'i6inato' ta0es on his business. . . . "8

The PP& ,oes not ,ispute this point# eithe'.

3hat it conten,s is that b ith,'ain! the e0e6ption p'e(iousl !'ante, to p'int 6e,iat'ansactions in(ol(in! p'intin!# publication# i6po'tation o' sale of nespape's# RepublicAct No. 881H has sin!le, out the p'ess fo' ,isc'i6inato' t'eat6ent an, that ithin theclass of 6ass 6e,ia the la ,isc'i6inates a!ainst p'int 6e,ia b !i(in! b'oa,cast 6e,iafa(o'e, t'eat6ent. 3e ha(e ca'efull e0a6ine, this a'!u6ent# but e a'e unable to fin, a,iffe'ential t'eat6ent of the p'ess b the la# 6uch less an censo'ial 6oti(ation fo' itsenact6ent. &f the p'ess is no 'eui'e, to pa a (aluea,,e, ta0 on its t'ansactions# it isnot because it is bein! sin!le, out# 6uch less ta'!ete,# fo' special t'eat6ent but onl because of the 'e6o(al of the e0e6ption p'e(iousl !'ante, to it b la. The ith,'aalof e0e6ption is all that is in(ol(e, in these cases. Othe' t'ansactions# liIeise p'e(iousl!'ante, e0e6ption# ha(e been ,eliste, as pa't of the sche6e to e0pan, the base an, thescope of the -AT sste6. The la oul, pe'haps be open to the cha'!e of ,isc'i6inato't'eat6ent if the onl p'i(ile!e ith,'an ha, been that !'ante, to the p'ess. But that isnot the case.

The situation in the case at ba' is in,ee, a fa' c' f'o6 those cite, b the PP& in suppo'tof its clai6 that Republic Act No. 881H subLects the p'ess to ,isc'i6inato' ta0ation. &nthe cases cite,# the ,isc'i6inato' pu'pose as clea' eithe' f'o6 the bacI!'oun, of thela o' f'o6 its ope'ation. +o' e0a6ple# in G'osLean (. A6e'ican P'ess Co.# "; the lai6pose, a license ta0 eui(alent to " of the !'oss 'eceipts ,e'i(e, f'o6 a,(e'tise6entsonl on nespape's hich ha, a ci'culation of 6o'e than "F#FFF copies pe' eeI.Because the ta0 as not base, on the (olu6e of a,(e'tise6ent alone but as 6easu'e, b the e0tent of its ci'culation as ell# the la applie, onl to the thi'teen la'!enespape's in %ouisiana# lea(in! unta0e, fou' pape's ith ci'culation of onl sli!htlless than "F#FFF copies a eeI an, 1"F eeIl nespape's hich e'e in se'ious



co6petition ith the thi'teen nespape's in uestion. &t as ell Inon that the thi'teennespape's ha, been c'itical of Senato' )ue %on!# an, the %on!,o6inate, le!islatu'eof %ouisiana 'espon,ent b ta0in! hat %on! ,esc'ibe, as the >lin! nespape's> bi6posin! on the6 >a ta0 on lin!.> The effect of the ta0 as to cu'tail both thei' 'e(enuean, thei' ci'culation. As the U.S. Sup'e6e Cou't note,# the ta0 as >a ,elibe'ate an,

calculate, ,e(ice in the !uise of a ta0 to li6it the ci'culation of info'6ation to hich the public is entitle, in (i'tue of the constitutional !ua'anties.> "$ The case is a classicillust'ation of the a'nin! that the poe' to ta0 is the poe' to ,est'o.

&n the othe' case 7F in(oIe, b the PP&# the p'ess as also foun, to ha(e been sin!le, out because e(e'thin! as e0e6pt f'o6 the >use ta0> on inI an, pape'# e0cept the p'ess.Minnesota i6pose, a ta0 on the sales of !oo,s in that state. To p'otect the sales ta0# itenacte, a co6ple6enta' ta0 on the p'i(ile!e of >usin!# sto'in! o' consu6in! in that statetan!ible pe'sonal p'ope't> b eli6inatin! the 'esi,ents incenti(e to !et !oo,s f'o6outsi,e states he'e the sales ta0 6i!ht be loe'. The Minnesota Sta' T'ibune ase0e6pte, f'o6 both ta0es f'o6 1$H8 to 1$81. &n 1$81# hoe(e'# the state le!islatu'e

a6en,e, the ta0 sche6e b i6posin! the >use ta0> on the cost of pape' an, inI use, fo' publication. The la as hel, to ha(e sin!le, out the p'ess because 91: the'e as no'eason fo' i6posin! the >use ta0> since the p'ess as e0e6pt f'o6 the sales ta0 an, 9":the >use ta0> as lai, on an >inte'6e,iate t'ansaction 'athe' than the ulti6ate 'etail sale.>Minnesota ha, a hea( bu',en of Lustifin! the ,iffe'ential t'eat6ent an, it faile, to ,oso. &n a,,ition# the U.S. Sup'e6e Cou't foun, the la to be ,isc'i6inato' because thele!islatu'e# b a!ain a6en,in! the la so as to e0e6pt the fi'st 1FF#FFF of pape' an, inI use,# fu'the' na''oe, the co(e'a!e of the ta0 so that >onl a han,ful of publishe's paan ta0 at all an, e(en fee' pa an si!nificant a6ount of ta0.> 71 The ,isc'i6inato' pu'pose as thus (e' clea'.

Mo'e 'ecentl# in A'Iansas 3'ite's P'oLect# &nc. (. Ra!lan,# 7" it as hel, that a lahich ta0e, !ene'al inte'est 6a!aines but not nespape's an, 'eli!ious# p'ofessional#t'a,e an, spo'ts Lou'nals as ,isc'i6inato' because hile the ta0 ,i, not sin!le out the p'ess as a hole# it ta'!ete, a s6all !'oup ithin the p'ess. 3hat is 6o'e# b,iffe'entiatin! on the basis of contents 9i.e.# beteen !ene'al inte'est an, special inte'estssuch as 'eli!ion o' spo'ts: the la beca6e >enti'el inco6patible ith the +i'stA6en,6ents !ua'antee of f'ee,o6 of the p'ess.>

These cases co6e ,on to thisD that unless Lustifie,# the ,iffe'ential t'eat6ent of the p'essc'eates 'isIs of supp'ession of e0p'ession. &n cont'ast# in the cases at ba'# the statuteapplies to a i,e 'an!e of !oo,s an, se'(ices. The a'!u6ent that# b i6posin! the -ATonl on p'int 6e,ia hose !'oss sales e0cee,s P;F#FFF but not 6o'e than P85F#FFF# thela ,isc'i6inates 77 is ithout 6e'it since it has not been shon that as a 'esult the classsubLect to ta0 has been un'easonabl na''oe,. The fact is that this li6itation ,oes notappl to the p'ess alon! but to all sales. No' is i6pe'6issible 6oti(e shon b the factthat p'int 6e,ia an, b'oa,cast 6e,ia a'e t'eate, ,iffe'entl. The p'ess is ta0e, on itst'ansactions in(ol(in! p'intin! an, publication# hich a'e ,iffe'ent f'o6 the t'ansactionsof b'oa,cast 6e,ia. The'e is thus a 'easonable basis fo' the classification.



The cases can(asse,# it 6ust be st'esse,# esche an su!!estion that >one's ofnespape's a'e i66une f'o6 an fo'6s of o',ina' ta0ation.> The license ta0 in theG'osLean case as ,ecla'e, in(ali, because it as >one sin!le in Iin,# ith a lon! histo'of hostile 6isuse a!ainst the f'ee,o6 of the p'ess.> 7 On the othe' han,# Minneapolis Sta' acInole,!e, that >The +i'st A6en,6ent

,oes not p'ohibit all 'e!ulation of the p'ess an, that the States an, the +e,e'alGo(e'n6ent can subLect nespape's to !ene'all applicable econo6ic 'e!ulationsithout c'eatin! constitutional p'oble6s.> 75

3hat has been sai, abo(e also ,isposes of the alle!ations of the PBS that the 'e6o(al ofthe e0e6ption of p'intin!# publication o' i6po'tation of booIs an, 'eli!ious a'ticles# asell as thei' p'intin! an, publication# liIeise (iolates f'ee,o6 of thou!ht an, ofconscience. +o' as the U.S. Sup'e6e Cou't unani6ousl hel, in i66 Sa!!a'tMinist'ies (. Boa', of Eualiation# 7H the +'ee E0e'cise of Reli!ion Clause ,oes not p'ohibit i6posin! a !ene'all applicable sales an, use ta0 on the sale of 'eli!ious6ate'ials b a 'eli!ious o'!aniation.

This b'in!s us to the uestion hethe' the 'e!ist'ation p'o(ision of the la# 78 althou!hof !ene'al applicabilit# nonetheless is in(ali, hen applie, to the p'ess because it las a p'io' 'est'aint on its essential f'ee,o6. The case of A6e'ican Bible Societ (. Cit ofManila 7; is cite, b both the PBS an, the PP& in suppo't of thei' contention that the lai6poses censo'ship. The'e# this Cou't hel, that an o',inance of the Cit of Manila# hichi6pose, a license fee on those en!a!e, in the business of !ene'al 6e'chan,ise# coul, not be applie, to the appellants sale of bibles an, othe' 'eli!ious lite'atu'e. This Cou't 'elie,on Mu',ocI (. Pennsl(ania# 7$ in hich it as hel, that# as a license fee is fi0e, ina6ount an, un'elate, to the 'eceipts of the ta0pae'# the license fee# hen applie, to a'eli!ious sect# as actuall bein! i6pose, as a con,ition fo' the e0e'cise of the sects'i!ht un,e' the Constitution. +o' that 'eason# it as hel,# the license fee >'est'ains ina,(ance those constitutional libe'ties of p'ess an, 'eli!ion an, ine(itabl ten,s tosupp'ess thei' e0e'cise.> F

But# in this case# the fee in J 1F8# althou!h a fi0e, a6ount 9P1#FFF:# is not i6pose, fo'the e0e'cise of a p'i(ile!e but onl fo' the pu'pose of ,ef'ain! pa't of the cost of'e!ist'ation. The 'e!ist'ation 'eui'e6ent is a cent'al featu'e of the -AT sste6. &t is,esi!ne, to p'o(i,e a 'eco', of ta0 c'e,its because an pe'son ho is subLect to the pa6ent of the -AT pas an input ta0# e(en as he collects an output ta0 on sales 6a,e o'se'(ices 'en,e'e,. The 'e!ist'ation fee is thus a 6e'e a,6inist'ati(e fee# one not i6pose,on the e0e'cise of a p'i(ile!e# 6uch less a constitutional 'i!ht.

+o' the fo'e!oin! 'easons# e fin, the attacI on Republic Act No. 881H on the !'oun,that it offen,s the f'ee speech# p'ess an, f'ee,o6 of 'eli!ion !ua'antees of theConstitution to be ithout 6e'it. +o' the sa6e 'easons# e fin, the clai6 of thePhilippine E,ucational Publishe's Association 9PEPA: in G.R. No. 115$71 that theinc'ease in the p'ice of booIs an, othe' e,ucational 6ate'ials as a 'esult of the -AToul, (iolate the constitutional 6an,ate to the !o(e'n6ent to !i(e p'io'it to e,ucation#science an, technolo! 9A't. &&# J 18: to be untenable.



B. Clai6s of Re!'essi(it# /enial of /ue P'ocess# Eual P'otection# an, &6pai'6entof Cont'acts

The'e is basis fo' passin! upon clai6s that on its face the statute (iolates the !ua'anteesof f'ee,o6 of speech# p'ess an, 'eli!ion. The possible >chillin! effect> hich it 6a ha(eon the essential f'ee,o6 of the 6in, an, conscience an, the nee, to assu'e that thechannels of co66unication a'e open an, ope'atin! i6po'tunatel ,e6an, the e0e'cise of this Cou'ts poe' of 'e(ie.

The'e is# hoe(e'# no Lustification fo' passin! upon the clai6s that the la also (iolatesthe 'ule that ta0ation 6ust be p'o!'essi(e an, that it ,enies petitione's 'i!ht to ,ue p'ocess an, that eual p'otection of the las. The 'eason fo' this ,iffe'ent t'eat6ent has been co!entl state, b an e6inent autho'it on constitutional la thusD >3hen

f'ee,o6 of the 6in, is i6pe'ile, b la# it is f'ee,o6 that co66an,s a 6o6entu6 of'espect2 hen p'ope't is i6pe'ile, it is the la6aIe's Lu,!6ent that co66an,s 'espect.This ,ual stan,a', 6a not p'ecisel 'e(e'se the p'esu6ption of constitutionalit in ci(illibe'ties cases# but ob(iousl it ,oes set up a hie'a'ch of (alues ithin the ,ue p'ocessclause.> 1

&n,ee,# the absence of th'eat of i66e,iate ha'6 6aIes the nee, fo' Lu,icial inte'(entionless e(i,ent an, un,e'sco'es the essential natu'e of petitione's attacI on the la on the!'oun,s of 'e!'essi(it# ,enial of ,ue p'ocess an, eual p'otection an, i6pai'6ent ofcont'acts as a 6e'e aca,e6ic ,iscussion of the 6e'its of the la. +o' the fact is that the'eha(e e(en been no notices of assess6ents issue, to petitione's an, no ,ete'6inations atthe a,6inist'ati(e le(els of thei' clai6s so as to illu6inate the actual ope'ation of the laan, enable us to 'each soun, Lu,!6ent 'e!a',in! so fun,a6ental uestions as those'aise, in these suits.

Thus# the b'oa, a'!u6ent a!ainst the -AT is that it is 'e!'essi(e an, that it (iolates the'eui'e6ent that >The 'ule of ta0ation shall be unifo'6 an, euitable an, Con!'essshall e(ol(e a p'o!'essi(e sste6 of ta0ation.> " Petitione's in G.R. No. 1158;1 uotef'o6 a pape'# entitle, >-AT Polic &ssuesD St'uctu'e# Re!'essi(it# &nflation an, E0po'ts> b Alan A. Tait of the &nte'national Moneta' +un,# that >-AT pa6ent b loinco6ehousehol,s ill be a hi!he' p'opo'tion of thei' inco6es 9an, e0pen,itu'es: than pa6ents b hi!he'inco6e househol,s. That is# the -AT ill be 'e!'essi(e.> Petitione's conten,that as a 'esult of the unifo'6 1F -AT# the ta0 on consu6ption !oo,s of those ho a'ein the hi!he'inco6e b'acIet# hich befo'e e'e ta0e, at a 'ate hi!he' than 1F# has been 'e,uce,# hile basic co66o,ities# hich befo'e e'e ta0e, at 'ates 'an!in! f'o67 to 5# a'e no ta0e, at a hi!he' 'ate.

ust as (i!o'ousl as it is asse'te, that the la is 'e!'essi(e# the opposite clai6 is p'esse, b 'espon,ents that in fact it ,ist'ibutes the ta0 bu',en to as 6an !oo,s an, se'(ices as possible pa'ticula'l to those hich a'e ithin the 'each of hi!he'inco6e !'oups# e(en as



the la e0e6pts basic !oo,s an, se'(ices. &t is thus euitable. The !oo,s an, p'ope'tiessubLect to the -AT a'e those use, o' consu6e, b hi!he'inco6e !'oups. These inclu,e'eal p'ope'ties hel, p'i6a'il fo' sale to custo6e's o' hel, fo' lease in the o',ina' cou'seof business# the 'i!ht o' p'i(ile!e to use in,ust'ial# co66e'cial o' scientific euip6ent#hotels# 'estau'ants an, si6ila' places# tou'ist buses# an, the liIe. On the othe' han,# s6all

business establish6ents# ith annual !'oss sales of less than P5FF#FFF# a'e e0e6pte,.This# acco',in! to 'espon,ents# 'e6o(es f'o6 the co(e'a!e of the la so6e 7F#FFF business establish6ents. On the othe' han,# an occasional pape' 7 of the Cente' fo'Resea'ch an, Co66unication cities a NE/A stu, that the -AT has 6ini6al i6pact oninflation an, inco6e ,ist'ibution an, that hile a,,itional e0pen,itu'e fo' the loestinco6e class is onl P7F1 o' 1.$ a ea'# that fo' a fa6il ea'nin! P5FF#FFF a ea' o'6o'e is P;#7F o' ".".

%acIin! e6pi'ical ,ata on hich to base an conclusion 'e!a',in! these a'!u6ents# an,iscussion hethe' the -AT is 'e!'essi(e in the sense that it ill hit the >poo'> an,6i,,leinco6e !'oup in societ ha',e' than it ill the >'ich#> as the Coope'ati(e Union of

the Philippines 9CUP: clai6s in G.R. No. 115;87# is la'!el an aca,e6ic e0e'cise. On theothe' han,# the CUPs contention that Con!'ess ith,'aal of e0e6ption of p'o,uce'scoope'ati(es# 6a'Ietin! coope'ati(es# an, se'(ice coope'ati(es# hile 6aintainin! that!'ante, to elect'ic coope'ati(es# not onl !oes a!ainst the constitutional polic to p'o6otecoope'ati(es as inst'u6ents of social Lustice 9A't. @&&# J 15: but also ,enies suchcoope'ati(es the eual p'otection of the la is actuall a polic a'!u6ent. The le!islatu'eis not 'eui'e, to a,he'e to a polic of >all o' none> in choosin! the subLect of ta0ation.

No' is the contention of the Cha6be' of Real Estate an, Buil,e's Association 9CREBA:# petitione' in G.R. 11585# that the -AT ill 'e,uce the 6a'I up of its 6e6be's b as6uch as ;5 to $F an 6o'e conc'ete. &t is a 6e'e alle!ation. On the othe' han,# theclai6 of the Philippine P'ess &nstitute# petitione' in G.R. No. 1155# that the -AT ill,'i(e so6e of its 6e6be's out of ci'culation because thei' p'ofits f'o6 a,(e'tise6entsill not be enou!h to pa fo' thei' ta0 liabilit# hile pu'po'tin! to be base, on thefinancial state6ents of the nespape's in uestion# still falls sho't of the establish6ent offacts b e(i,ence so necessa' fo' a,Lu,icatin! the uestion hethe' the ta0 is opp'essi(ean, confiscato'.

&n,ee,# 'e!'essi(it is not a ne!ati(e stan,a', fo' cou'ts to enfo'ce. 3hat Con!'ess is'eui'e, b the Constitution to ,o is to >e(ol(e a p'o!'essi(e sste6 of ta0ation.> This isa ,i'ecti(e to Con!'ess# Lust liIe the ,i'ecti(e to it to !i(e p'io'it to the enact6ent oflas fo' the enhance6ent of hu6an ,i!nit an, the 'e,uction of social# econo6ic an, political ineualities 9A't. @&&&# J 1:# o' fo' the p'o6otion of the 'i!ht to >ualite,ucation> 9A't. @&-# J 1:. These p'o(isions a'e put in the Constitution as 6o'alincenti(es to le!islation# not as Lu,iciall enfo'ceable 'i!hts.

At all e(ents# ou' 1$;; ,ecision in <apati'an 5 shoul, ha(e lai, to 'est the uestionsno 'aise, a!ainst the -AT. The'e si6ila' a'!u6ents 6a,e a!ainst the o'i!inal -AT %a9E0ecuti(e O',e' No. "87: e'e hel, to be hpothetical# ith no 6o'e basis than



nespape' a'ticles hich this Cou't foun, to be >hea'sa an, ithout e(i,entia'(alue.> As Republic Act No. 881H 6e'el e0pan,s the base of the -AT sste6 an, itsco(e'a!e as p'o(i,e, in the o'i!inal -AT %a# fu'the' ,ebate on the ,esi'abilit an,is,o6 of the la shoul, ha(e shifte, to Con!'ess.

Onl sli!htl less abst'act but nonetheless hpothetical is the contention of CREBA thatthe i6position of the -AT on the sales an, leases of 'eal estate b (i'tue of cont'actsente'e, into p'io' to the effecti(it of the la oul, (iolate the constitutional p'o(isionthat >No la i6pai'in! the obli!ation of cont'acts shall be passe,.> &t is enou!h to sathat the pa'ties to a cont'act cannot# th'ou!h the e0e'cise of p'ophetic ,isce'n6ent# fette'the e0e'cise of the ta0in! poe' of the State. +o' not onl a'e e0istin! las 'ea, intocont'acts in o',e' to fi0 obli!ations as beteen pa'ties# but the 'ese'(ation of essentialatt'ibutes of so(e'ei!n poe' is also 'ea, into cont'acts as a basic postulate of the le!alo',e'. The polic of p'otectin! cont'acts a!ainst i6pai'6ent p'esupposes the 6aintenanceof a !o(e'n6ent hich 'etains a,euate autho'it to secu'e the peace an, !oo, o',e' ofsociet. H

&n t'uth# the Cont'act Clause has ne(e' been thou!ht as a li6itation on the e0e'cise of theStates poe' of ta0ation sa(e onl he'e a ta0 e0e6ption has been !'ante, fo' a (ali,consi,e'ation. 8 Such is not the case of PA% in G.R. No. 115;5"# an, e ,o notun,e'stan, it to 6aIe this clai6. Rathe'# its position# as ,iscusse, abo(e# is that the'e6o(al of its ta0 e0e6ption cannot be 6a,e b a !ene'al# but onl b a specific# la.

The substanti(e issues 'aise, in so6e of the cases a'e p'esente, in abst'act# hpotheticalfo'6 because of the lacI of a conc'ete 'eco',. 3e accept that this Cou't ,oes not onla,Lu,icate p'i(ate cases2 that public actions b >non)ohfel,ian> ; o' i,eolo!ical plaintiffs a'e no co!niable p'o(i,e, the 6eet the stan,in! 'eui'e6ent of theConstitution2 that un,e' A't. -&&&# J 1# Q " the Cou't has a >special function> of(in,icatin! constitutional 'i!hts. Nonetheless the feelin! cannot be escape, that e ,onot ha(e befo'e us in these cases a full ,e(elope, factual 'eco', that alone can i6pa't toou' a,Lu,ication the i6pact of actualit $ to insu'e that ,ecision6aIin! is info'6e, an,ell !'oun,e,. Nee,less to sa# e ,o not ha(e poe' to 'en,e' a,(iso' opinions o'e(en Lu'is,iction o(e' petitions fo' ,ecla'ato' Lu,!6ent. &n effect e a'e bein! asIe, to,o hat the Confe'ence Co66ittee is p'ecisel accuse, of ha(in! ,one in these cases to sit as a thi', le!islati(e cha6be' to 'e(ie le!islation.

3e a'e tol,# hoe(e'# that the poe' of Lu,icial 'e(ie is not so 6uch poe' as it is ,uti6pose, on this Cou't b the Constitution an, that e oul, be 'e6iss in the pe'fo'6ance of that ,ut if e ,ecline to looI behin, the ba''ie's set b the p'inciple ofsepa'ation of poe's. A't. -&&&# J 1# Q " is cite, in suppo't of this (ieD

u,icial poe' inclu,es the ,ut of the cou'ts of Lustice to settle actual cont'o(e'siesin(ol(in! 'i!hts hich a'e le!all ,e6an,able an, enfo'ceable# an, to ,ete'6ine hethe' o' not the'e has been a !'a(e abuse of ,isc'etion a6ountin! to lacI o' e0cess of Lu'is,iction on the pa't of an b'anch o' inst'u6entalit of the Go(e'n6ent.



To (ie the Lu,icial poe' of 'e(ie as a ,ut is nothin! ne. Chief ustice Ma'shall sai,so in 1;F7# to Lustif the asse'tion of this poe' in Ma'bu' (. Ma,isonD

&t is e6phaticall the p'o(ince an, ,ut of the Lu,icial ,epa't6ent to sa hat the la is.Those ho appl the 'ule to pa'ticula' cases 6ust of necessit e0poun, an, inte'p'et that

'ule. &f to las conflict ith each othe'# the cou'ts 6ust ,eci,e on the ope'ation of each.5F

ustice %au'el echoe, this Lustification in 1$7H in An!a'a (. Electo'al Co66issionD

An, hen the Lu,icia' 6e,iates to allocate constitutional boun,a'ies# it ,oes not asse'tan supe'io'it o(e' the othe' ,epa't6ents2 it ,oes not in 'ealit nullif o' in(ali,ate anact of the le!islatu'e# but onl asse'ts the sole6n an, sac'e, obli!ation assi!ne, to it bthe Constitution to ,ete'6ine conflictin! clai6s of autho'it un,e' the Constitution an, toestablish fo' the pa'ties in an actual cont'o(e's the 'i!hts hich that inst'u6ent secu'esan, !ua'antees to the6. 51

This conception of the Lu,icial poe' has been affi'6e, in se(e'alcases 5" of this Cou't folloin! An!a'a.

&t ,oes not a,, anthin!# the'efo'e# to in(oIe this >,ut> to Lustif this Cou'tsinte'(ention in hat is essentiall a case that at best is not 'ipe fo' a,Lu,ication. That ,ut6ust still be pe'fo'6e, in the conte0t of a conc'ete case o' cont'o(e's# as A't. -&&&# J59": clea'l ,efines ou' Lu'is,iction in te'6s of >cases#> an, nothin! but >cases.> That theothe' ,epa't6ents of the !o(e'n6ent 6a ha(e co66itte, a !'a(e abuse of ,isc'etion isnot an in,epen,ent !'oun, fo' e0e'cisin! ou' poe'. /is'e!a', of the essential li6itsi6pose, b the case an, cont'o(e's 'eui'e6ent can in the lon! 'un onl 'esult inun,e'6inin! ou' autho'it as a cou't of la. +o'# as Lu,!es# hat e a'e calle, upon to'en,e' is Lu,!6ent acco',in! to la# not acco',in! to hat 6a appea' to be the opinionof the ,a.

&n the p'ecee,in! pa!es e ha(e en,ea(o'e, to ,iscuss# ithin li6its# the (ali,it ofRepublic Act No. 881H in its fo'6al an, substanti(e aspects as this has been 'aise, in the(a'ious cases befo'e us. To su6 up# e hol,D

91: That the p'oce,u'al 'eui'e6ents of the Constitution ha(e been co6plie, ith bCon!'ess in the enact6ent of the statute2

9": That Lu,icial inui' hethe' the fo'6al 'eui'e6ents fo' the enact6ent of statutes beon, those p'esc'ibe, b the Constitution ha(e been obse'(e, is p'eclu,e, bthe p'inciple of sepa'ation of poe's2

97: That the la ,oes not ab'i,!e f'ee,o6 of speech# e0p'ession o' the p'ess# no'inte'fe'e ith the f'ee e0e'cise of 'eli!ion# no' ,en to an of the pa'ties the 'i!ht to an



e,ucation2 an,

9: That# in (ie of the absence of a factual foun,ation of 'eco',# clai6s that the la is'e!'essi(e# opp'essi(e an, confiscato' an, that it (iolates (este, 'i!hts p'otecte, un,e'the Cont'act Clause a'e p'e6atu'el 'aise, an, ,o not Lustif the !'ant of p'ospecti(e

'elief b 'it of p'ohibition.

3)ERE+ORE# the petitions in these cases a'e /&SM&SSE/.

Bi,in# =uiason# an, <apunan# .# concu'.

Documents

14 Tolentino v Sec. of Finance (1994)