Upload
jerushabrainerd
View
237
Download
0
Embed Size (px)
Citation preview
7/24/2019 Abakada v Exec Sec
1/64
EN BANC
ABAKADA GURO PARTY LIST
(Formerly AASJAS) OFFICERSSAMSON S. ALCANTARA a! ED
"INCENT S. ALBANO#
G.R. No. $%&'%
Petitioners, Present:
DAVIDE, JR., C.J.,
PUNO,
PANGANIBAN,
QUISUMBING,
YNARES-SANTIAGO,
SANDOVAL-GUTIERRE,- !ers"s - #ARPIO,
AUSTRIA-MARTINE,
#ORONA,
#ARPIO-MORALES,
#ALLEJO, SR.,
A#UNA,
TINGA,
#$I#O-NAARIO, and
GAR#IA,JJ.TE ONORABLE E*ECUTI"E
SECRETARY EDUARDO ERMITA+
ONORABLE SECRETARY OF
TE DEPARTMENT OF FINANCE
CESAR PURISIMA+ a!
ONORABLE COMMISSIONER
OF INTERNAL RE"ENUE
GUILLERMO PARAYNO# JR.#
Res%on&ents.
' - - - - - - - - - - - - - - - - - - - - - - - - - '
A,UILINO ,. PIMENTEL# JR.#
LUISA P. EJERCITO-ESTRADA#
JINGGOY E. ESTRADA# PANFILO
M. LACSON# ALFREDO S. LIM#
G.R. No. $%&'/
7/24/2019 Abakada v Exec Sec
2/64
JAMBY A.S. MADRIGAL# AND
SERGIO R. OSMEA III#
Petitioners,
- !ers"s -
E*ECUTI"E SECRETARY
EDUARDO R. ERMITA# CESAR ".
PURISIMA# SECRETARY OF
FINANCE# GUILLERMO L.
PARAYNO# JR.# COMMISSIONER
OF TE BUREAU OF INTERNAL
RE"ENUE#
Res%on&ents.
' - - - - - - - - - - - - - - - - - - - - - - - - - '
ASSOCIATION OF PILIPINAS
SELL DEALERS# INC. re0re1e2e!
3y 421 Pre14!e2# ROSARIO
ANTONIO+ PETRON DEALERS
ASSOCIATION re0re1e2e! 3y 421
Pre14!e2# RUT E. BARBIBI+
ASSOCIATION OF CALTE*DEALERS OF TE PILIPPINES
re0re1e2e! 3y 421 Pre14!e2#
MERCEDITAS A. GARCIA+
ROSARIO ANTONIO !o45 3614e11
6!er 27e ame a! 12yle o8 ANB
NORT SELL SER"ICE
STATION+ LOURDES MARTINE9
!o45 3614e11 6!er 27e ame a!
12yle o8 SELL GATE N.
DOMINGO+ BET9AIDA TAN!o45 3614e11 6!er 27e ame a!
12yle o8 AD"ANCE SELL
STATION+ REYNALDO P.
MONTOYA !o45 3614e11 6!er 27e
ame a! 12yle o8 NE: LAMUAN
SELL SER"ICE STATION+
G.R. No. $%&;%$
7/24/2019 Abakada v Exec Sec
3/64
EFREN SOTTO !o45 3614e11 6!er
27e ame a! 12yle o8 RED FIELD
SELL SER"ICE STATION+
DONICA CORPORATION
re0re1e2e! 3y 421 Pre14!e2# DESI
TOMACRU9+ RUT E. MARBIBI
!o45 3614e11 6!er 27e ame a!
12yle o8 R
7/24/2019 Abakada v Exec Sec
4/64
JOSELITO F. FLORDELI9A+
MOTORISTS AR"ARD
CORPORATION re0re1e2e! 3y 421
"4=e-Pre14!e2 8or O0era24o1#
JOSELITO F. FLORDELI9A+
MOTORISTS ERITAGE
CORPORATION re0re1e2e! 3y 421
"4=e-Pre14!e2 8or O0era24o1#
JOSELITO F. FLORDELI9A+
PILIPPINE STANDARD OIL
CORPORATION re0re1e2e! 3y 421
"4=e-Pre14!e2 8or O0era24o1#
JOSELITO F. FLORDELI9A+
ROMEO MANUEL !o45 3614e11
6!er 27e ame a! 12yle o8 ROMMAN GASOLINE STATION+
ANTONY ALBERT CRU9 III
!o45 3614e11 6!er 27e ame a!
12yle o8 TRUE SER"ICE STATION#
Petitioners,
- !ers"s -
CESAR ". PURISIMA# 4 741=a0a=42y a1 Se=re2ary o8 27e
De0ar2me2 o8 F4a=e a!
GUILLERMO L. PARAYNO# JR.# 4
741 =a0a=42y a1 Comm4114oer o8
I2eral Re>e6e#
Res%on&ents.
' - - - - - - - - - - - - - - - - - - - - - - - - - '
FRANCIS JOSEP G. ESCUDERO#"INCENT CRISOLOGO#
EMMANUEL JOEL J.
"ILLANUE"A# RODOLFO G.
PLA9A# DARLENE ANTONINO-
CUSTODIO# OSCAR G.
MALAPITAN# BENJAMIN C.
G.R. No. $%&;%?
7/24/2019 Abakada v Exec Sec
5/64
AGARAO# JR. JUAN EDGARDO M.
ANGARA# JUSTIN MARC SB.
CIPECO# FLORENCIO G. NOEL#
MUJI" S. ATAMAN# RENATO B.
MAGTUBO# JOSEP A.
SANTIAGO# TEOFISTO DL.
GUINGONA III# RUY ELIAS C.
LOPE9# RODOLFO ,. AGBAYANI
a! TEODORO A. CASIO#
Petitioners,
- !ers"s -
CESAR ". PURISIMA# 4 741
=a0a=42y a1 Se=re2ary o8 F4a=e#GUILLERMO L. PARAYNO# JR.# 4
741 =a0a=42y a1 Comm4114oer o8
I2eral Re>e6e# a! EDUARDO R.
ERMITA# 4 741 =a0a=42y a1 E@e=624>e
Se=re2ary#
Res%on&ents.
' - - - - - - - - - - - - - - - - - - - - - - - - - '
BATAAN GO"ERNOR ENRI,UE T.
GARCIA# JR.
G.R. No. $%&/?'
Petitioner,
- !ers"s -
ON. EDUARDO R. ERMITA# 4 741
=a0a=42y a1 27e E@e=624>e Se=re2ary+
ON. MARGARITO TE"ES# 4 741
=a0a=42y a1 Se=re2ary o8 F4a=e+ON. JOSE MARIO BUNAG# 4 741
=a0a=42y a1 27e OIC Comm4114oer o8
27e B6rea6 o8 I2eral Re>e6e+ a!
ON. ALE*ANDER ARE"ALO# 4
741 =a0a=42y a1 27e OIC Comm4114oer
o8 27e B6rea6 o8 C612om1#
Pro(")*+te&:
7/24/2019 Abakada v Exec Sec
6/64
Res%on&ents. Se%te(er , //0
' - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - '
D E C I S I O N
AUSTRIA-MARTINE9#J.
T1e e'%enses o2 *o!ern(ent, 1+!in* 2or t1eir o3e4t t1e interest
o2 +)), s1o")& e orne 5 e!er5one, +n& t1e (ore (+n en3o5s t1e
+&!+nt+*es o2 so4iet5, t1e (ore 1e o"*1t to 1o)& 1i(se)2 1onore& in
4ontri"tin* to t1ose e'%enses.-Anne Roert J+46"es T"r*ot 788-89
;ren41 st+tes(+n +n& e4ono(ist
Mo"ntin* "&*et &e2i4it, re!en"e *ener+tion, in+&e6"+te 2is4+) +))o4+tion 2or
e&"4+tion, in4re+se& e(o)"(ents 2or 1e+)t1 0/.
http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn1http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn17/24/2019 Abakada v Exec Sec
7/64
House Bill No. 3555@
7/24/2019 Abakada v Exec Sec
8/64
On M+5 ?, //0, t1e enro))e& 4o%5 o2 t1e 4onso)i&+te& $o"se +n& Sen+te
!ersion ??8. @01en s+i& &+te 4+(e,
t1e #o"rt iss"e& + te(%or+r5 restr+inin* or&er, e22e4ti!e i((e&i+te)5 +n&
4ontin"in* "nti) 2"rt1er or&ers, en3oinin* res%on&ents 2ro( en2or4in* +n&
i(%)e(entin* t1e )+
7/24/2019 Abakada v Exec Sec
9/64
J. PANGANIBAN : . . . (iti*+tin* (e+s"res . . .
ATTY. BANIQUED : Yes, Yo"r $onor.
J. PANGANIBAN : As + (+tter o2 2+4t + %+rt o2 t1e (iti*+tin* (e+s"res
7/24/2019 Abakada v Exec Sec
10/64
ATTY. BANIQUED : Yes, Yo"r $onor.
J. PANGANIBAN : A)ri*1t. So t1+ts one re+son
7/24/2019 Abakada v Exec Sec
11/64
G.R. No. $%&'/
On J"ne >, //0, Sen. A6"i)ino Q. Pi(ente), Jr., et al., 2i)e& + %etition
2or certiorari)i=e
7/24/2019 Abakada v Exec Sec
12/64
Section , +(en&in* Se4tion / 7B o2 t1e NIR#, i(%osin* + 8/ )i(it on t1e
+(o"nt o2 in%"t t+' to e 4re&ite& +*+inst t1e o"t%"t t+' +n&
? Section !", +(en&in* Se4tion C 74 o2 t1e NIR#, +"t1oriin* t1e
Go!ern(ent or +n5 o2 its %o)iti4+) s"&i!isions, instr"(ent+)ities or
+*en4ies, in4)"&in* GO##s, to &e&"4t + 0 2in+)
7/24/2019 Abakada v Exec Sec
13/64
G.R. No. $%&;%?
Se!er+) (e(ers o2 t1e $o"se o2 Re%resent+ti!es )e& 5 Re%. ;r+n4is
Jose%1 G. Es4"&ero 2i)e& t1is %etition 2orcertiorarion J"ne ?/, //0. T1e5
6"estion t1e 4onstit"tion+)it5 o2 R.A. No. >??8 on t1e 2o))o, , 0,@8C9, 0, ?, ?8 +n& 99,
7/24/2019 Abakada v Exec Sec
14/64
Re)5in* on t1e 4+se o2 #olentino vs. Secretary o$ %inance, ?0 S#RA
?/ 7>>C, res%on&ents +r*"e t1+t t1e %ro4e&"r+) iss"es r+ise& 5 %etitioners, i.e.,
)e*+)it5 o2 t1e i4+(er+) %ro4ee&in*s, e'4)"si!e ori*in+tion o2 re!en"e (e+s"res
+n& t1e %o
7/24/2019 Abakada v Exec Sec
15/64
. 1et1er Se4tions C, 0 +n& o2 R.A. No. >??8, +(en&in* Se4tions /, /8 +n&
/9 o2 t1e NIR#, !io)+te t1e 2o))o89, t1e s5ste(
7/24/2019 Abakada v Exec Sec
16/64
+*+inst or s"tr+4t 2ro( t1e VAT 41+r*e& on its s+)es or o"t%"ts t1e VAT %+i& on its
%"r41+ses, in%"ts +n& i(%orts.@C
It 98, ??8, +)so re2erre&
to 5 res%on&ents +s t1e VAT Re2or( A4t.
T1e #o"rt ??8
De)etin* entire)5 t1e no pass-on%ro!isions 2o"n& in ot1 t1e $o"se +n& Sen+te
i))s
? Insertin* t1e %ro!ision i(%osin* + 8/ )i(it on t1e +(o"nt o2 in%"t t+' to e4re&ite& +*+inst t1e o"t%"t t+' +n&
http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn14http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn15http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn16http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn17http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn18http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn14http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn15http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn16http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn17http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn187/24/2019 Abakada v Exec Sec
17/64
C In4)"&in* t1e +(en&(ents intro&"4e& on)5 5 Sen+te Bi)) No. >0/ re*+r&in*
ot1er =in&s o2 t+'es in +&&ition to t1e !+)"e-+&&e& t+'.
Petitioners no< esee41 t1e #o"rt to &e2ine t1e %o
7/24/2019 Abakada v Exec Sec
18/64
R")e II, Se4tion ?0 o2 t1e R")es o2 t1e Sen+te st+tes:
Se4. ?0. In t1e e!ent t1+t t1e Sen+te &oes not +*ree
7/24/2019 Abakada v Exec Sec
19/64
enro))e& 4o%5 o2 t1e i)). Ass+i)e& in s+i& 4+se ary45 8orm1 o8
e@0re114o# all !ey 2o 27e =o6r21 27e 0oer 2o 464re 42o
alle5a24o1 27a2# 4 ea=245 a la# a o61e o8 Co5re11 8a4le!
2o =om0ly 427 421 o r6le1# 4 27e a31e=e o8 17o45 27a2
27ere a1 a >4ola24o o8 a =o1242624oal 0ro>414o or 27e r45721
o8 0r4>a2e 4!4>4!6al1.In Os&ea v. Pendatun, it a=e# 27e =o6r21 7a>e o =o=er. T7ey may 3e a4>e!
or !41re5ar!e! 3y 27e le541la24>e 3o!y. Co1e6e2ly# mere
8a4l6re 2o =o8orm 2o 0arl4ame2ary 61a5e 4ll o2 4>al4!a2e
27e a=24o (2aHe 3y a !el43era24>e 3o!y) 7e 27e re64142e
7/24/2019 Abakada v Exec Sec
20/64
6m3er o8 mem3er1 7a>e a5ree! 2o a 0ar24=6lar mea16re.@7E(%1+sis s"%%)ie&
T1e 2ore*oin* &e4)+r+tion is e'+4t)5 in %oint >C or (ore t1+n ten 5e+rs +*o, in t1e 4+se
o2 #olentino vs. Secretary o$ %inance,@?t1e #o"rt +)re+&5 (+&e t1e
%rono"n4e(ent t1+t 48 a =7a5e 41 !e14re! 4 27e 0ra=24=e o8 27e B4=ameral
Co8ere=e Comm422ee 42 m612 3e 1o6572 4 Co5re11 14=e 2741 6e124o 41
o2 =o>ere! 3y ay =o1242624oal 0ro>414o 362 41 oly a 42eral r6le o8 ea=7
7o61e. @CTo &+te, #on*ress 1+s not seen it 2it to (+=e s"41 41+n*es +&!erte& to 5
t1e #o"rt. It see(s, t1ere2ore, t1+t #on*ress 2in&s t1e %r+4ti4es o2 t1e i4+(er+)
4on2eren4e 4o((ittee to e !er5 "se2") 2or %"r%oses o2 %ro(%t +n& e22i4ient
)e*is)+ti!e +4tion.
Ne!ert1e)ess, 3"st to %"t (in&s +t e+se t1+t no )+t+nt irre*")+rities t+inte&
t1e %ro4ee&in*s o2 t1e i4+(er+) 4on2eren4e 4o((ittees, t1e #o"rt &ee(s it
ne4ess+r5 to &
7/24/2019 Abakada v Exec Sec
21/64
?000 +n& ?8/0 on one 1+n&, +n& Sen+te Bi)) No. >0/ on t1e ot1er, re!e+)s t1+t
t1ere
7/24/2019 Abakada v Exec Sec
22/64
en&-"sers. VAT s1+)) e
+sore& 5 *ener+tion,
tr+ns(ission, +n& &istri"tion4o(%+nies.
With regard to 70$ li%it on in#ut ta& 'redit
Pro!i&es t1+t t1e in%"t
t+' 4re&it 2or 4+%it+)*oo&s on
7/24/2019 Abakada v Exec Sec
23/64
+n& t1e VAT i(%ose& on s+)e o2 %etro)e"( %ro&"4ts s1o")& not e %+sse& on to
4ons"(ers, +s %ro%ose& in t1e $o"se i)) 7? in
7/24/2019 Abakada v Exec Sec
24/64
41ose to sett)e s"41 &is+*ree(ent 5 +)to*et1er &e)etin* 2ro( its Re%ort +n5 no
pass-on%ro!ision.
?. it1 re*+r& to t1e &is+*ree(ent on
7/24/2019 Abakada v Exec Sec
25/64
C. it1 re*+r& to t1e +(en&(ents to ot1er %ro!isions o2 t1e NIR# on
4or%or+te in4o(e t+', 2r+n41ise, %er4ent+*e +n& e'4ise t+'es, t1e 4on2eren4e
4o((ittee &e4i&e& to in4)"&e s"41 +(en&(ents +n& +si4+))5 +&o%te& t1e
%ro!isions 2o"n& in Sen+te Bi)) No. >0/,
7/24/2019 Abakada v Exec Sec
26/64
R+)%1 Re4to, #1+ir(+n o2 t1e Sen+te P+ne), e'%)+ine& t1e re+son 2or &e)etin*
t1e no pass-on%ro!ision in t1is
7/24/2019 Abakada v Exec Sec
27/64
to it 2or re4on4i)i+tion. S"41 ein* t1e 4+se, t1e #o"rt &oes not see +n5 *r+!e +"se
o2 &is4retion +(o"ntin* to )+4= or e'4ess o2 3"ris&i4tion 4o((itte& 5 t1e
Bi4+(er+) #on2eren4e #o((ittee. In t1e e+r)ier 4+ses o2Philippine udes
Association vs. Prado@>+n& #olentino vs. Secretary o$ %inance,@?/t1e #o"rt
re4o*nie& t1e )on*-st+n&in* )e*is)+ti!e %r+4ti4e o2 *i!in* s+i& 4on2eren4e
4o((ittee +(%)e )+tit"&e 2or 4o(%ro(isin* &i22eren4es et
7/24/2019 Abakada v Exec Sec
28/64
+(en&(ent r")e 7Se4. 7, Art. VI o2 t1e >98 #onstit"tion, 2+i)s to 4on!in4e
t1e #o"rt to &e!i+te 2ro( its r")in* in t1e #olentino 4+se t1+t:
Nor is t1ere +n5 re+son 2or re6"irin* t1+t t1e #o((ittees Re%ort in t1ese
4+ses ("st 1+!e "n&er*one t1ree re+&in*s in e+41 o2 t1e te 7o61e1# 3e8ore 1a4! 34ll 41 2ra1m422e! 2o 27e
o27er 7o61e 8or 421 =o=6rre=e or ame!me2. Veri)5, to 4onstr"e s+i& %ro!ision
in +
7/24/2019 Abakada v Exec Sec
29/64
97B7 Inter-4or%or+te Di!i&en&s
?C7B7 Inter-4or%or+te Di!i&en&s
T+' on Persons E'e(%t 2ro( VAT
8 Per4ent+*e T+' on &o(esti4 4+rriers +n& =ee%ers o2
G+r+*e
> T+' on 2r+n41ises
T+' on +n=s +n& Non-B+n= ;in+n4i+)
Inter(e&i+ries
C9 E'4ise T+' on (+n"2+4t"re& oi)s +n& ot1er 2"e)s
0 E'4ise T+' on (iner+) %ro&"4ts
? Re*istr+tion re6"ire(ents
?8 Iss"+n4e o2 re4ei%ts or s+)es or 4o((er4i+)in!oi4es
99 Dis%osition o2 In4re(ent+) Re!en"e
Petitioners 4)+i( t1+t t1e +(en&(ents to t1ese %ro!isions o2 t1e NIR# &i&
not +t +)) ori*in+te 2ro( t1e $o"se. T1e5 +!er t1+t $o"se Bi)) No. ?000 %ro%ose&
+(en&(ents on)5 re*+r&in* Se4tions /, /8, /9, / +n& C o2 t1e NIR#,
7/24/2019 Abakada v Exec Sec
30/64
In t1e %resent 4+ses, %etitioners +&(it t1+t it e# 27e# 27e 0oer o8 27e Sea2e 2o 0ro0o1e ame!me21# 27e
Sea2e =a 0ro0o1e 421 o >er14o e>e 427 re10e=2 2o 34ll1 74=7 are
re64re! 3y 27e Co1242624o 2o or454a2e 4 27e o61e.
. . .
In&ee&,
7/24/2019 Abakada v Exec Sec
31/64
a00roa=7 27e 1ame 0ro3lem1 8rom 27e a24oal 0er10e=24>e. Bo27 >4e1 are
27ere3y ma!e 2o 3ear o 27e ea=2me2 o8 16=7 la1.@??7E(%1+sis s"%%)ie&
Sin4e t1ere is no 6"estion t1+t t1e re!en"e i)) e'4)"si!e)5 ori*in+te& in t1e
$o"se o2 Re%resent+ti!es, t1e Sen+te e6e mea16re1 27a2 4=l6!e mea16re1 2o
4m0ro>e 2a@ a!m4412ra24o a! =o2rol 27e leaHa5e1 4 re>e6e1 8rom
4=ome 2a@e1 a! 27e >al6e-a!!e! 2a@ ("AT). 7E(%1+sis s"%%)ie&
Re%. Eri4 D. Sin*son, in 1is s%onsors1i% s%ee41 2or $o"se Bi)) No. ?000,
&e4)+re& t1+t:
In t1e "&*et (ess+*e o2 o"r Presi&ent in t1e 5e+r //0, s1e reiter+te& t1+t
, e ee! 2o 1e4e
http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn33http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn337/24/2019 Abakada v Exec Sec
32/64
4!o1 o8 o00or26424e1 74=7 m4572 1eem 0o45a2 4 27e 3e5445# 362 4
27e lo5 r6 0ro>e e88e=24>e a! 3ee84=4al 2o 27e o>erall 12a261 o8 o6r
e=oomy. Oe 16=7 o00or2642y 41 a re>4e o8 e@41245 2a@ ra2e1# e>al6a245
27e rele>a=e 54>e o6r 0re1e2 =o!424o1.@?C7E(%1+sis s"%%)ie&
Not+)5 t1ere2ore, t1e (+in %"r%ose o2 t1e i))s e(+n+tin* 2ro( t1e $o"se
o2 Re%resent+ti!es is to rin* in sie+)e re!en"es 2or t1e *o!ern(ent
to s"%%)e(ent o"r 4o"ntr5s serio"s 2in+n4i+) %ro)e(s, +n& i(%ro!e t+'
+&(inistr+tion +n& 4ontro) o2 t1e )e+=+*es in re!en"es 2ro( in4o(e t+'es +n&
!+)"e-+&&e& t+'es. As t1ese 1o"se i))s
7/24/2019 Abakada v Exec Sec
33/64
e4+"se t1ere is + )i*1t +t t1e en& o2 t1e t"nne), t1is *o!ern(ent
7/24/2019 Abakada v Exec Sec
34/64
T1e ot1er se4tions +(en&e& 5 t1e Sen+te %ert+ine& to (+tters o2 t+'
+&(inistr+tion
7/24/2019 Abakada v Exec Sec
35/64
so)&, +rtere& or e'41+n*e&, s"41 t+' to e %+i& 5 t1e se))er or
tr+ns2eror: 0ro>4!e!# 27a227e Pre14!e2# 60o 27e
re=omme!a24o o8 27e Se=re2ary o8 F4a=e# 17all# e88e=24>e
Ja6ary $# ''%# ra41e 27e ra2e o8 >al6e-a!!e! 2a@ 2o 2el>e
0er=e2 ($)# a82er ay o8 27e 8ollo45 =o!424o1 7a1 3ee
1a24184e!.
(4) >al6e-a!!e! 2a@ =olle=24o a1 a 0er=e2a5e o8 Gro11
Dome124= Pro!6=2 (GDP) o8 27e 0re>4o61 year e@=ee!1
2o a! 8o6r-84827 0er=e2 ( ;) or
(44) a24oal 5o>erme2 !e84=42 a1 a 0er=e2a5e o8 GDP o8 27e
0re>4o61 year e@=ee!1 oe a! oe-7al8 0er=e2 ($ ).
SE#. 0. Se4tion /8 o2 t1e s+(e #o&e, +s +(en&e&, is 1ere5 2"rt1er
+(en&e& to re+& +s 2o))o
7/24/2019 Abakada v Exec Sec
36/64
7A R+te +n& B+se o2 T+'. T1ere s1+)) e )e!ie&, +ssesse& +n&
4o))e4te&, + !+)"e-+&&e& t+' e6"i!+)ent to ten %er4ent 7/ o2
*ross re4ei%ts &eri!e& 2ro( t1e s+)e or e'41+n*e o2ser!i4es: 0ro>4!e!# 27a2 27e Pre14!e2# 60o 27ere=omme!a24o o8 27e Se=re2ary o8 F4a=e# 17all# e88e=24>e
Ja6ary $# ''%# ra41e 27e ra2e o8 >al6e-a!!e! 2a@ 2o 2el>e0er=e2 ($)# a82er ay o8 27e 8ollo45 =o!424o1 7a1 3ee
1a24184e!.
(4) >al6e-a!!e! 2a@ =olle=24o a1 a 0er=e2a5e o8 Gro11
Dome124= Pro!6=2 (GDP) o8 27e 0re>4o61 year e@=ee!1
2o a! 8o6r-84827 0er=e2 ( ;) or
(44) a24oal 5o>erme2 !e84=42 a1 a 0er=e2a5e o8 GDP o8 27e
0re>4o61 year e@=ee!1 oe a! oe-7al8 0er=e2 ($
). 7E(%1+sis s"%%)ie&
Petitioners +))e*e t1+t t1e *r+nt o2 t1estand-by authorityto t1e Presi&ent to
in4re+se t1e VAT r+te is + !irt"+) +&i4+tion 5 #on*ress o2 its e'4)"si!e %o
7/24/2019 Abakada v Exec Sec
37/64
%o
7/24/2019 Abakada v Exec Sec
38/64
it1 res%e4t to t1e Le*is)+t"re, Se4tion o2 Arti4)e VI o2 t1e #onstit"tion
%ro!i&es t1+t the 7eislative po8er shall be vested in the 'onress o$
the Philippines 8hich shall consist o$ a Senate and a 9ouse o$ Representatives.
T1e %o
7/24/2019 Abakada v Exec Sec
39/64
in&i4+tes t1e 4ir4"(st+n4es "n&er e1 a !41=re24o a1 2o 7a2 42
17all 3e# a! =o8err45 a a627or42y or !41=re24o a1 2o 421 e@e=624o# 2o 3e
e@er=41e! 6!er a! 4 06r16a=e o8 27e la. T7e 84r12 =ao2 3e !oe+ 2o 27e
la22er o >al4! o3e=24o =a 3e ma!e.
. . .
It is 4onten&e&, 1oe 4 a1=er2a445 27e e@412e=e o8 8a=21 or =o!424o1 a1 27e
3a141 o8 27e 2aH45 42o e88e=2 o8 a la. T7a2 41 a me2al 0ro=e11 =ommo 2o all
3ra=7e1 o8 27e 5o>erme2.Not
7/24/2019 Abakada v Exec Sec
40/64
!e2erm4e! 3y 27e le541la26re. I o27er or!1# 27e le541la26re# a1 42 41 421 !62y
2o !o# !e2erm4e1 27a2# 6!er 54>e =4r=6m12a=e1# =er2a4 e@e=624>e or
a!m4412ra24>e a=24o 41 2o 3e 2aHe# a! 27a2# 6!er o27er =4r=6m12a=e1#
!488ere2 or o a=24o a2 all 41 2o 3e 2aHe. :7a2 41 2761 le82 2o 27e
a!m4412ra24>e o884=4al 41 o2 27e le541la24>e !e2erm4a24o o8 7a2 063l4=
0ol4=y !ema!1# 362 14m0ly 27e a1=er2a4me2 o8 7a2 27e 8a=21 o8 27e =a1ere64re 2o 3e !oe a==or!45 2o 27e 2erm1 o8 27e la 3y 74=7 7e 41 5o>ere!.
T7e e884=4e=y o8 a A=2 a1 a !e=lara24o o8 le541la24>e 4ll m612# o8 =o6r1e#
=ome 8rom Co5re11# 362 27e a1=er2a4me2 o8 27e =o245e=y 60o 74=7
27e A=2 17all 2aHe e88e=2 may 3e le82 2o 16=7 a5e=4e1 a1 42 may !e145a2e. T7e
le541la26re# 27e# may 0ro>4!e 27a2 a la 17all 2aHe e88e=2 60o 27e 7a00e45
o8 8626re 10e=484e! =o245e=4e1 lea>45 2o 1ome o27er 0er1o or 3o!y 27e
0oer 2o !e2erm4e 7e 27e 10e=484e! =o245e=y 7a1 ar41e.7E(%1+siss"%%)ie&.@C
In(du vs. (ricta,@C8t1e #o"rt reiter+te&:
1+t 4+nnot e &e)e*+te& is t1e +"t1orit5 "n&er t1e #onstit"tion to (+=e
)+1i)e t1e %o
7/24/2019 Abakada v Exec Sec
41/64
e )e2t to t1e(, in4)"&in* t1e %o
7/24/2019 Abakada v Exec Sec
42/64
+&(inistr+tion o2 t1e in4re+se r+te "n&er t1e )+< is 4ontin*ent. T1e )e*is)+t"re 1+s
(+&e t1e o%er+tion o2 t1e r+te e22e4ti!e J+n"+r5 , //, 4ontin*ent "%on +
s%e4i2ie& 2+4t or 4on&ition. It )e+!es t1e entire o%er+tion or non-o%er+tion o2 t1e
r+te "%on 2+4t"+) (+tters o"tsi&e o2 t1e 4ontro) o2 t1e e'e4"ti!e.
No &is4retion
7/24/2019 Abakada v Exec Sec
43/64
1en one s%e+=s o2 t1e Se4ret+r5 o2 ;in+n4e +s t1e +)ter e*o o2 t1e
Presi&ent, it si(%)5 (e+ns t1+t +s 1e+& o2 t1e De%+rt(ent o2 ;in+n4e 1e is t1e
+ssist+nt +n& +*ent o2 t1e #1ie2 E'e4"ti!e. T1e (")ti2+rio"s e'e4"ti!e +n&
+&(inistr+ti!e 2"n4tions o2 t1e #1ie2 E'e4"ti!e +re %er2or(e& 5 +n& t1ro"*1 t1e
e'e4"ti!e &e%+rt(ents, +n& t1e +4ts o2 t1e se4ret+ries o2 s"41 &e%+rt(ents, s"41 +s
t1e De%+rt(ent o2 ;in+n4e, %er2or(e& +n& %ro(")*+te& in t1e re*")+r 4o"rse o2
"siness, +re, "n)ess &is+%%ro!e& or re%ro+te& 5 t1e #1ie2 E'e4"ti!e,
%res"(%ti!e)5 t1e +4ts o2 t1e #1ie2 E'e4"ti!e.T1e Se4ret+r5 o2 ;in+n4e, +s s"41,
o44"%ies + %o)iti4+) %osition +n& 1o)&s o22i4e in +n +&!isor5 4+%+4it5, +n&, in t1e
)+n*"+*e o2 T1o(+s Je22erson, s1o")& e o2 t1e Presi&entKs oso( 4on2i&en4e
+n&, in t1e )+n*"+*e o2 Attorne5-Gener+) #"s1in*, is s"3e4t to t1e &ire4tion o2 t1ePresi&ent.@00
In t1e %resent 4+se, in (+=in* 1is re4o((en&+tion to t1e Presi&ent on t1e
e'isten4e o2 eit1er o2 t1e t
7/24/2019 Abakada v Exec Sec
44/64
#on*ress si(%)5 *r+nte& t1e Se4ret+r5 o2 ;in+n4e t1e +"t1orit5 to +s4ert+in
t1e e'isten4e o2 + 2+4t, n+(e)5,
7/24/2019 Abakada v Exec Sec
45/64
B. #he !": 2ncrease *A# Rate Does ot 2&pose an
Un$air and Unnecessary Additional #a) Burden
Petitioners Pi(ente),et al. +r*"e t1+t t1e in4re+se in t1e VAT r+te
i(%oses +n "n2+ir +n& +&&ition+) t+' "r&en on t1e %eo%)e. Petitioners +)so +r*"e
t1+t t1e in4re+se, &e%en&ent on +n5 o2 t1e 4on&itions set 2ort1 in t1e
4onteste& %ro!isions, is +(i*"o"s e4+"se it &oes not st+te i2 t1e VAT r+te ??8, i2 +n5
o2 t1e t
7/24/2019 Abakada v Exec Sec
46/64
4o"rtKs see=in* t1e )e*is)+ti!e intent, t1e )+< ("st e t+=en +s it is, &e!oi& o2
3"&i4i+) +&&ition or s"tr+4tion.@
Petitioners +)so 4onten& t1+t t1e in4re+se in t1e VAT r+te,
7/24/2019 Abakada v Exec Sec
47/64
T1e %rin4i%)e o2 2is4+) +&e6"+45 +s + 41+r+4teristi4 o2 + so"n& t+' s5ste(
/ *oes to &et
ser!i4e. T1+ts interest %)"s +(orti+tion o2 o"r &et. So 4)e+r)5, t1is is not +
s"st+in+)e sit"+tion. T1+ts t1e 2irst 2+4t.
T1e se4on& 2+4t is t1+t o"r &et to GDP )e!e) is
7/24/2019 Abakada v Exec Sec
48/64
)o
7/24/2019 Abakada v Exec Sec
49/64
1et1er Se4tion 9 o2 R.A. No. >??8, +(en&in* Se4tions /7A7 +n& /7B o2
t1e NIR# +n& Se4tion o2 R.A. No. >??8, +(en&in* Se4tion C7# o2 t1e
NIR#, !io)+te t1e 2o))o??8, +(en&in* Se4tions / 7A7, / 7B, +n& Se4tion
o2 R.A. No. >??8, +(en&in* Se4tion C 7# o2 t1e NIR# +re +ritr+r5,o%%ressi!e, e'4essi!e +n& 4on2is4+tor5. T1eir +r*"(ent is %re(ise& on t1e
4onstit"tion+) ri*1t +*+inst &e%ri!+tion o2 )i2e, )iert5 o2 %ro%ert5
7/24/2019 Abakada v Exec Sec
50/64
t1e !+)"e-+&&e& t+' due on t1e s+)e or )e+se o2 t+'+)e *oo&s or %ro%erties or
ser!i4es 5 +n5 %erson re*istere& or re6"ire& to re*ister "n&er t1e )+
7/24/2019 Abakada v Exec Sec
51/64
On t1e ot1er 1+n&, it +%%e+rs t1+t %etitioner G+r4i+ 2+i)e& to 4o(%re1en& t1e
o%er+tion o2 t1e 8/ )i(it+tion on t1e in%"t t+'. A44or&in* to %etitioner, t1e
)i(it+tion on t1e 4re&it+)e in%"t t+' in e22e4t +))o??8 1o
7/24/2019 Abakada v Exec Sec
52/64
is 2or t1e %ersonHt+'%+5er to +%%)5 or 4re&it t1ese in%"t t+'es, +s e!i&en4e& 5
re4ei%ts, +*+inst 1is o"t%"t t+'es.
Petitioners Asso4i+tion o2PilipinasS1e)) De+)ers, In4.,et al.+)so +r*"e t1+t
t1e in%"t t+' %+rt+=es t1e n+t"re o2 + %ro%ert5 t1+t (+5 not e 4on2is4+te&,
+%%ro%ri+te&, or )i(ite& 8
7R.A. No. 9CC.@80T1e ri*1t to 4re&it in%"t t+' +s +*+inst t1e o"t%"t t+' is 4)e+r)5
+ %ri!i)e*e 4re+te& 5 )+
7/24/2019 Abakada v Exec Sec
53/64
Provided, T1+t t1e in%"t t+' on *oo&s %"r41+se& or i(%orte& in + 4+)en&+r (ont1
2or "se in tr+&e or "siness 2or ??8,
7/24/2019 Abakada v Exec Sec
54/64
7# it11o)&in* o2 V+)"e-+&&e& T+'. T1e Go!ern(ent or +n5 o2 its
%o)iti4+) s"&i!isions, instr"(ent+)ities or +*en4ies, in4)"&in* *o!ern(ent-o9, i(%)e(entin* R.A. No. 9CC 7T1e T+'
Re2or( A4t o2 >>8, t1e 4on4e%t o2 2in+)
7/24/2019 Abakada v Exec Sec
55/64
SE#TION .08. it11o)&in* o2 T+' +t So"r4e
7A ;in+) it11o)&in* T+'. Un&er t1e 2in+)
T1e #o"rt nee& not e'%)ore t1e r+tion+)e e1in& t1e %ro!ision. It is 4)e+r t1+t
#on*ress inten&e& to tre+t &i22erent)5 t+'+)e tr+ns+4tions
7/24/2019 Abakada v Exec Sec
56/64
inst+))(ent %+5(ent al6e-a!!e! 2a@l4a34l42y o8 27e 1eller or =o2ra=2or: Pro!i&e&, 1o
7/24/2019 Abakada v Exec Sec
57/64
%oint
7/24/2019 Abakada v Exec Sec
58/64
T1e e6"+) %rote4tion 4)+"se &oes not re6"ire t1e "ni!ers+) +%%)i4+tion o2 t1e
)+
7/24/2019 Abakada v Exec Sec
59/64
In t1is 4+se, t1e t+' )+< is "ni2or( +s it %ro!i&es + st+n&+r& r+te o2 / or
/ 7or on +)) *oo&s +n& ser!i4es. Se4tions C, 0 +n& o2 R.A. No. >??8,
+(en&in* Se4tions /, /8 +n& /9, res%e4ti!e)5, o2 t1e NIR#, %ro!i&e 2or + r+te
o2 / 7or on s+)e o2 *oo&s +n& %ro%erties, i(%ort+tion o2 *oo&s, +n& s+)e o2
ser!i4es +n& "se or )e+se o2 %ro%erties. T1ese s+(e se4tions +)so %ro!i&e 2or + /
r+te on 4ert+in s+)es +n& tr+ns+4tion.
Neit1er &oes t1e )+< (+=e +n5 &istin4tion +s to t1e t5%e o2 in&"str5 or tr+&e
t1+t
7/24/2019 Abakada v Exec Sec
60/64
Se4tion />7!, i.e., tr+ns+4tions +n& n+t"r+) *+s@>C
Asi&e 2ro( t1ese, #on*ress +)so in4re+se& t1e in4o(e t+' r+tes o2
4or%or+tions, in or&er to &istri"te t1e "r&en o2 t+'+tion. Do(esti4, 2orei*n, +n&
non-resi&ent 4or%or+tions +re no< s"3e4t to + ?0 in4o(e t+' r+te, 2ro( +
%re!io"s ?.@>0Inter4or%or+te &i!i&en&s o2 non-resi&ent 2orei*n 4or%or+tions +re
sti)) s"3e4t to 0 2in+)
7/24/2019 Abakada v Exec Sec
61/64
I. T1e s"3e4ts o2 e!er5 st+te o"*1t to 4ontri"te to88 In&ee&, t1e(+n&+te to #on*ress is not to %res4rie, "t to e!o)!e, + %ro*ressi!e t+' s5ste(.
Ot1er
7/24/2019 Abakada v Exec Sec
62/64
4ert+in tr+ns+4tions 7R.A. No. 88, ?, +(en&in* / 7 o2 t1e NIR#, ??8.
$ERE;ORE, Re%")i4 A4t No. >??8 not ein* "n4onstit"tion+), t1e
%etitions in G.R. Nos. 9/0, 9/8, 9C, 9C?, +n& 98?/, +re
1ere5 DISMISSED.
http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn99http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn100http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn101http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn99http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn100http://sc.judiciary.gov.ph/jurisprudence/2005/sep2005/168056.htm#_ftn1017/24/2019 Abakada v Exec Sec
63/64
T1ere ein* no 4onstit"tion+) i(%e&i(ent to t1e 2")) en2or4e(ent +n&
i(%)e(ent+tion o2 R.A. No. >??8, t1e te(%or+r5 restr+inin* or&er iss"e& 5 t1e
#o"rt on J")5 , //0 is LIFTED "%on 2in+)it5 o2 1erein &e4ision.
SO ORDERED.
MA. ALICIA AUSTRIA-MARTINE9
Asso4i+te J"sti4e
E #ON#UR:
ILARIO G. DA"IDE# JR.
#1ie2 J"sti4e
REYNATO S. PUNO
Asso4i+te J"sti4e
ARTEMIO ". PANGANIBAN
Asso4i+te J"sti4e
LEONARDO A. ,UISUMBING
Asso4i+te J"sti4e
CONSUELO YNARES-SANTIAGO
Asso4i+te J"sti4e
7/24/2019 Abakada v Exec Sec
64/64
ANGELINA SANDO"AL-GUTIERRE9
Asso4i+te J"sti4e
ANTONIO T. CARPIO
Asso4i+te J"sti4e
RENATO C. CORONA
Asso4i+te J"sti4e
CONCITA CARPIO-MORALES
Asso4i+te J"sti4e