Tax Case Digests (Set 02)

8/13/2019 Tax Case Digests (Set 02)

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01 Roxas vs. CAG.R. No. 127876 | December 17, 1999En Banc

FACTSIn order to manage the properte! nherted "rom ther grandparent!, the Ro#a!

brother! "ormed a partner!hp ca$$ed Ro#a! % &ampana. '"ter the !econd (or$d (ar, thego)ernment, n con!onance (th the con!tt*tona$ mandate, per!*aded the Ro#a! brother!to part (th ther $andho$dng, (heren the $atter agreed to !e$$ 1+00 hectare! o" theNa!*gbo $and! to the go)ernment "or d!trb*ton to act*a$ occ*pant!. -o(e)er, thego)ernment dd not ha)e eno*gh "*nd! to co)er the p*rcha!e prce. o Ro#a! made a !peca$arrangement (th Rehab$taton "nance &orp. and a$$o(ed the "armer! to b*% the $and! "orthe !ame prce b% n!ta$$ment.

In 19+ and 19, on$% 0/ o" the net gan "rom n!ta$$ment pa%ment (a! reported "orncome ta# p*rpo!e! b% Ro#a!. oreo)er, (a! a$!o rece)ng renta$! "or the ho*!e the%nherted. th th!, on 198, the &IR demanded "rom Ro#a! the pa%ment o" rea$ e!tatedea$er! ta# a!!e!!ed ba!ed on the ho*!e renta$! and de"cenc% ncome ta#e! re!*$ted "romthe 0/ *nreported net pro"t "rom the !a$e o" the $and. 3he &IR con!dered the partner!hpa! engaged n the b*!ne!! o" rea$ e!tate, hence, 100/ o" the pro"t der)ed there "rom (a!ta#ed. 3he Ro#a! brother! prote!ted the a!!e!!ment b*t (ere dened. 3he% n!tt*ted an

appea$ n the &3' (hch !*!taned the a!!e!!ment. -ence, th! appea$.

ISSUEI! Ro#a! % &a $ab$e "or the de"cenc% ncome ta#e! "or the !a$e o" Na!*gbo $and!4

RULINGNo. the propo!ton o" the &IR cannot be "a)orab$% accepted n th! !o$ated tran!acton

(th t! pec*$ar crc*m!tance. 3he po(er o" ta#aton ! !ometme! ca$$ed a$!o the po(er tode!tro%. 3here"ore t !ho*$d be e#erc!ed (th ca*ton to mnm5e n*r% to the propretar%rght! o" a ta#pa%er. It m*!t be e#erc!ed "ar$%, e*a$$% and *n"orm$%, $e!t the ta# co$$ector$$ the hen that $a%! the go$den egg.: 'nd, n order to mantan the genera$ p*b$c;! tr*!tand con"dence n the Go)ernment th! po(er m*!t be *!ed *!t$% and not treachero*!$%. It

doe! not con"orm (th o*r !en!e o" *!tce n the n!tant ca!e "or the go)ernment to per!*adethe ta#pa%er to $ent a he$png hand and $ater on to pena$5e hm "or d*$% an!(erng the*rgent ca$$.

3h*!, Ro#a! cannot be con!dered a rea$ e!tate dea$er and that the gan "rom the !a$eo" Na!*gbo $and ! capta$ gan, ta#ab$e on$% to the e#tent o" 0/.


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02 Tanada et al vs. Angara et al.G.R. No. 11829 | a% 2, 1997En Banc

FACTSOn April 15, 199, !"# $"ilippin# Gov#rn%#n! r#pr#s#n!#d &' i!s S#(r#!ar' o)!"# *#par!%#n! o) Trad# and Ind+s!r' sign#d !"# Final A(! &inding !"# $"ilippin#Gov#rn%#n! !o s+&%i! !o i!s r#sp#(!iv# (o%p#!#n! a+!"ori!i#s !"# TO -orldTrad# Organia!ion/ Agr##%#n!s !o s##0 approval )or s+(". On *#(#%r 1, 199,R#sol+!ion No. 9 2as adop!#d &' !"# $"ilippin# S#na!# !o ra!i)' !"# TOAgr##%#n!.T"is is a p#!i!ion assailing !"# (ons!i!+!ionali!' o) !"# TO agr##%#n! as i!viola!#s S#( 19, Ar!i(l# II, providing )or !"# d#v#lop%#n! o) a s#l) r#lian! andind#p#nd#n! na!ional #(ono%', and S#(!ions 13 and 14, Ar!i(l# II, providing )or!"# 6Filipino )irs!7 poli('.

ISSUE"#!"#r or no! !"# R#sol+!ion No. 9 ra!i)'ing !"# TO Agr##%#n! is+n(ons!i!+!ional

RULINGT"# S+pr#%# Co+r! r+l#d !"# R#sol+!ion No. 9 is no! +n(ons!i!+!ional. "il#

!"# (ons!i!+!ion %anda!#s a &ias in )avor o) Filipino goods, s#rvi(#s, la&or and#n!#rpris#s, a! !"# sa%# !i%#, i! r#(ogni#s !"# n##d )or &+sin#ss #x("ang# 2i!"!"# r#s! o) !"# 2orld on !"# &as#s o) #8+ali!' and r#(ipro(i!' and li%i!s pro!#(!iono) Filipino in!#r#s!s onl' agains! )or#ign (o%p#!i!ion and !rad# pra(!i(#s !"a! ar#+n)air. In o!"#r 2ords, !"# Cons!i!+!ion did no! in!#nd !o p+rs+# an isola!ionalis!

poli('. F+r!"#r%or#, !"# (ons!i!+!ional poli(' o) a 6s#l)r#lian! and ind#p#nd#n!na!ional #(ono%'7 do#s no! n#(#ssaril' r+l# o+! !"# #n!r' o) )or#ign inv#s!%#n!s,goods and s#rvi(#s. I! (on!#%pla!#s n#i!"#r 6#(ono%i( s#(l+sion7 nor6%#ndi(an(' in !"# in!#rna!ional (o%%+ni!'.7

T"# S#na!#, a)!#r d#lira!ion and vo!ing, gav# i!s (ons#n! !o !"# TOAgr##%#n! !"#r#&' %a0ing i! 6a par! o) !"# la2 o) !"# land7. T"# S+pr#%# Co+r!gav# d+# r#sp#(! !o an #8+al d#par!%#n! in gov#rn%#n!. I! pr#s+%#s i!s a(!ions asr#g+lar and don# in good )ai!" +nl#ss !"#r# is (onvin(ing proo) and p#rs+asiv#agr##%#n!s !o !"# (on!rar'. As a r#s+l!, !"# ra!i)i(a!ion o) !"# TO Agr##%#n!li%i!s or r#s!ri(!s !"# a&sol+!#n#ss o) sov#r#ign!'. A !r#a!' #ngag#%#n! is no! a%#r# o&liga!ion &+! (r#a!#s a l#gall' &inding o&liga!ion on !"# par!i#s. A s!a!#2"i(" "as (on!ra(!#d valid in!#rna!ional o&liga!ions is &o+nd !o %a0# i!s

l#gisla!ions s+(" %odi)i(a!ions as %a' n#(#ssar' !o #ns+r# !"# )+l)ill%#n! o)!"# o&liga!ions +nd#r!a0#n.


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0+ LTO vs. Ci!' o) :+!+anG. R. No. 1+112 | F=3RBF? b*t not, ta!!e)erate!, the a*thort% o" =3 to reg!ter a$$ motor )ehc$e! and to !!*e to *a$"edper!on! o" $cen!e! to dr)e !*ch )ehc$e!.

ISSUE

I! there a )a$d app$caton o" the =G& pro)!on! on ta#aton po(er! o" =G@!4

RULINGNo. 3he re$ance made b% re!pondent! on the broad ta#ng po(er o" $oca$ go)ernment

*nt!, !pec"ca$$% *nder ecton 1++ o" the =oca$ Go)ernment &ode, ! tangenta$. Ao$cepo(er and ta#aton, a$ong (th emnent doman, are nherent po(er! o" !o)eregnt% (hchthe tate mght !hare (th $oca$ go)ernment *nt! b% de$egaton g)en *nder a con!tt*tona$or a !tat*tor% "at. '$$ the!e nherent po(er! are "or a p*b$c p*rpo!e and $eg!$at)e n nat*reb*t the !m$arte! *!t abo*t end there. 3he ba!c am o" po$ce po(er ! p*b$c good and(e$"are. 3a#aton, n t! ca!e, "oc*!e! on the po(er o" go)ernment to ra!e re)en*e n orderto !*pport t! e#!tence and carr% o*t t! $egtmate obect)e!. '$tho*gh corre$at)e to eachother n man% re!pect!, the grant o" one doe! not nece!!ar$% carr% (th t the grant o" the

other. 3he t(o po(er! are, b% tradton and *r!pr*dence, !eparate and d!tnct po(er!,)ar%ng n ther re!pect)e concept!, character, !cope! and $mtaton!. 3o con!tr*e the ta#pro)!on! o" ecton 1++>1? nd!tnct)e$% (o*$d re!*$t n the repea$ to that e#tent o" =3;!reg*$ator% po(er (hch e)dent$% ha! not been ntended.


4/22

0R#'#s vs. Al%anorGR 98+9C6 | 'pr$ 26 1991En Banc

FACTS

eectment o" $e!!e!!?. AD20 amended R' 6+9 b%ab!o$*te$% prohbtng the ncrea!e and nde"nte$% !*!pendng 'rtc$e 167+.

3he Re%e!e!, th*!, (ere pre)ented "rom ra! ng the renta$! and "romeectng ther tenant!. In 197+, the &t% '!!e!!or o" an$a rec$a!!"ed andrea!!e!!ed the )a$*e o" the properte! ba!ed on the !ched*$e o" maret )a$*e! d*$% re)e(edb% the ecretar% o" nance. '! t enta$ed an ncrea!e o" the corre!pondng ta#

rate!, the Re%e!e! "$ed a memorand*m o" d!agreement (th the Board o" 3a#'!!e!!ment 'ppea$!, !tatng that the a!!e!!ment! (ere e#ce!!)e, *n(arranted,*ne*tab$e, con"!cator% and *ncon!tt*tona$ na!m*ch a! theta#e! mpo!ed e#ceededthe ann*a$ ncome der)ed "rom ther properte!H and that the ncome approach!ho*$d ha)e been *!ed n determnng $and )a$*e! n!tead o" the comparat)e!a$e! approach (hch the a!!e!!or adopted.

ISSUEa! the ta# a!!e!!ment rea!onab$e4

RULING3a#aton ! e*tab$e (hen t! b*rden "a$$! on tho!e better ab$e to pa%. 3a#aton !

progre!!)e (hen t! rate goe! *p dependng on the re!o*rce! o" the per!on a""ected. 3a#e!are *n"orm (hen a$$ ta#ab$e artc$e! ornd! o" propert% o" the !ame c$a!! are ta#ed atthe !ame rate. 3he ta#ng po(er ha! the a*thort% to mae rea!onab$e and nat*rac$a!!"caton "or p*rpo!e! o" ta#aton. =a(! !ho*$d operate e*a$$% and *n"orm$%, ho(e)er,on a$$ per!on! *nder !m$ar crc*m!tance! or that a$$ per!on! m*! t be treated n the !amemanner, the condton! not beng d""erent both n the pr)$ege! con"erred and $ab$te!mpo!ed. na$$%, *nder the Rea$ Aropert% 3a# &ode >AD 6?, propert% m*!t be appra!edat t! c*rrent and "ar maret )a$*e. 3he maret )a$*e o" the properte! co)ered b% AD 20,th*! cannot be e*ated (th the maret )a$*e o" properte! not !o co)ered. *ch propert%co)ered b% AD 20 ha! nat*ra$$% a m*ch $e!!er maret )a$*e n )e( o" the renta$re!trcton!. '$tho*gh ta#e! are the $"eb$ood o" the go)ernment and !ho*$d be co$$ected(tho*t *nnece!!ar% hndrance, !*ch co$$ecton !ho*$d be made n accordance (th $a( a!


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an% arbtrarne!! ($$ negate the )er% rea!on "or go)ernment t!e$". '! the Re%e!e! areb*rdened b% the Rent ree5e =a(! >R' 6+9 and AD 20?, the% !ho*$d not be pena$5ed b% the!ame go)ernment b% the mpo!ton o" e#ce!!)e ta#e! the% cancan $$ a""ord and (o*$de)ent*a$$% re!*$t n the "or"et*re o" ther properte!, *nder the prncp$e o" !oca$ *!tce

0 Os%#na vs. Or&os

G.R. No. 99886 | arch +1, 199+En Banc

FACTSAettoner !ee! to ha)e ec.8, paragraph 1 & o" AD 196, a! amended b% E 1+7

dec$ared *ncon!tt*tona$ "or beng *nd*e and n)a$d de$egaton o" $eg!$at)e po(er to theEnerg% reg*$ator% Board. @nder the a!!a$ed $a(, the ERB ! g)en the a*thort% to mpo!eaddtona$ amo*nt! on petro$e*m prod*ct! and to mpo!e addtona$ amo*nt! to a*gment there!o*rce! o" the "*nd. -e arg*e that the mone% co$$ected p*r!*ant to AD 196 m*!t betreated a! a !peca$ "*nd, not a! a tr*!t acco*nt or a tr*!t "*nd, and that " a !peca$ ta# !co$$ected "or a !peca$ p*rpo!e t !ha$$ be treated a! a !peca$ "*nd to be *!ed on$% "or thep*rpo!e ndcated.

ISSUEI! there *nd*e de$egaton o" $eg!$at)e po(er4

RULINGNo. "or a )a$d de$egaton o" po(er, t ! e!!enta$ that the $a( de$egatng the po(er

m*!t be 1. &omp$ete n t!e$", that t m*!t !et "orth the po$c% to be e#ec*ted b% the de$egate2. It m*!t "# the !tandard $mt! o" (hch are !*""cent$% determnate or determned to(hch the de$egate m*!t con"orm. h$e the "*nd! ma% be re"erred to a! ta#e!, the% areenacted n the e#erc!e o" the po$ce po(er o" the !tate. 3he "*nd reman! !*bect to there)e( and acco*ntng o" the &'. 3he!e mea!*re! comp$% (th the con!tt*tona$ de!crptono" a !peca$ "*nd.

3he A ! a F3r*!t 'cco*ntF (hch (a! e!tab$!hed F"or the p*rpo!e o" mnm5ng the"re*ent prce change! bro*ght abo*t b% e#change rate ad*!tment andJor change! n (or$dmaret prce! o" cr*de o$ and mported petro$e*m prod*ct!.F @nder A.D. No. 196, a!amended b% E#ec*t)e rder No. 1+7 dated 27 ebr*ar% 1987, th! 3r*!t 'cco*nt ma% be"*nded "rom an% o" the "o$$o(ng !o*rce!K

a? 'n% ncrea!e n the ta# co$$ecton "rom ad )a$orem ta# or c*!tom! d*t% mpo!ed onpetro$e*m prod*ct! !*bect to ta# *nder th! Decree ar!ng "rom e#change rate ad*!tment,a! ma% be determned b% the n!ter o" nance n con!*$taton (th the Board o" Energ%H

b? 'n% ncrea!e n the ta# co$$ecton a! a re!*$t o" the $"tng o" ta# e#empton! o"go)ernment corporaton!, a! ma% be determned b% the n!ter o" nance n con!*$taton(th the Board o" Energ%H


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c? 'n% addtona$ amo*nt to be mpo!ed on petro$e*m prod*ct! to a*gment there!o*rce! o" the *nd thro*gh an approprate rder that ma% be !!*ed b% the Board o"Energ% re*rng pa%ment o" per!on! or compane! engaged n the b*!ne!! o" mportng,man*"act*rng andJor maretng petro$e*m prod*ct!H

d? 'n% re!*$tng pe!o co!t d""erenta$! n ca!e the act*a$ pe!o co!t! pad b% ocompane! n the mportaton o" cr*de o$ and petro$e*m prod*ct! ! $e!! than the pe!o co!t!comp*ted *!ng the re"erence "oregn e#change rate a! "#ed b% the Board o" Energ%.

07 Co%%ission#r o) In!#rnal R#v#n+# vs. San!osG.R. No. 11922 | '*g*!t 18, 1997r!t D)!on

FACTSG*$d o" Ah$.


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)a$dt% o" a pro)!on, that ! (hether or not t ha! been pa!!ed accordng to the pro)!on!$ad do(n b% $a(, and th*! cannot n*re a! to the rea!on! "or t! e#!tence.

08 Tol#n!ino). S#(r#!ar' o) Finan(#G.R. No. 11 | ctober +0, 199En Banc

FACTS3he!e are con!o$dated moton! "or recon!deraton o" th! &o*rt! dec!on d!m!!ng

the petton! "or the dec$araton o" *ncon!tt*tona$t% o" R.'. No. 7716, the E#panded a$*eC'dded 3a# =a(.3he Ah$ppne Are!! In!tt*te Inc. a)er! that b% remo)ng the e#empton o" the pre!!

"rom the '3 (h$e mantanng tho!e granted to other!, the $a( d!crmnate! agan!t thepre!!. 3he% a$!o c$amed that the app$caton o" the ta# to e#!tng contract! o" the !a$e o" rea$propert% b% n!ta$$ment (o*$d re!*$t n !*b!tanta$ ncrea!e! n the month$% amort5aton! tobe pad beca*!e o" the 10/ '3.

Aettoner! a$!o contend that (h$e the '3 e#empt! !*ch tran!acton! a! the !a$e o"agrc*$t*ra$ prod*ct!, "ood tem!, petro$e*m and medca$ and )eternar% !er)ce!, t grant! noe#empton on the !a$e o" rea$ propert% (hch ! e*a$$% e!!enta$.

Aettoner! a$!o c$am that the '3 ! regre!!)e, th*! a )o$aton o" the &on!tt*tona$pro)!on on Ah$ppne ta# a! a progre!!)e !%!tem.

ISSUE;S

1. Doe! the $a( d!crmnate agan!t the pre!!4

2. Doe! the $a( mpar the contract*a$ ob$gaton! bet(een parte!4

+. Doe! the $a( )o$ate the E*a$ Arotecton &$a*!e n that t c$a!!"e! tran!acton! a! co)eredor e#empt

(tho*t rea!onab$e ba!!4


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. Doe! the $a( )o$ate the progre!!)e !%!tem o" ta#aton "o*nd n 'rtc$e I, ecton 28>1? o"the 1987

&on!tt*ton4

. Doe! the $a( )o$ate 'rtc$e I, ecton 2 o" the 1987 &on!tt*ton, n that t dd notorgnate e#c$*!)e$% n the -o*!e o" Repre!entat)e! "or the enate propo!edamendment! to t4

RULING

1. No. nce the $a( granted the pre!! a pr)$ege, the $a( co*$d tae bac the pr)$egean%tme (tho*t o""en!e to the &on!tt*ton. 3he '3 ! not a $cen!e ta#. It ! not a ta#on the e#erc!e o" a pr)$ege, m*ch $e!! a con!tt*tona$ rght. It ! mpo!ed on the!a$e, barter, $ea!e or e#change o" good! or properte! or the !a$e or e#change o"!er)ce! and the $ea!e o" properte! p*re$% "or re)en*e p*rpo!e!. 3o !*bect the pre!!to t! pa%ment ! not to b*rden the e#erc!e o" t! rght an% more than to mae thepre!! pa% ncome ta# or !*bect t to genera$ reg*$aton ! not to )o$ate t! "reedom*nder the &on!tt*ton.

2. No. 3he &o*rt re$ed on an ear$% ca!e, (heren t r*$ed that e)en tho*gh !*ch ta#atonma% a""ect partc*$ar contract!, a! t ma% ncrea!e the debt o" one per!on and $e!!enthe !ec*rt% o" another, or ma% mpo!e addtona$ b*rden! *pon one c$a!! and re$ea!ethe b*rden! o" another, !t$$ the ta# m*!t be pad *n$e!! prohbted b% the con!tt*ton,nor can t be !ad that t mpar! the ob$gaton o" an% e#!tng contract n t! tr*e $ega$!en!e.

+. No. 3he e#empton o" tho!e e!!enta$ good! and !er)ce! (a! a$read% !tp*$ated *nderthe Natona$ Interna$ Re)en*e &ode, e)en be"ore the enactment o" the $a(.

th regard to the rea$ e!tate tran!acton o" the $e!! poor, the co*rt ponted o*t thatthere ! a d""erence bet(een the home$e!! poor: and the home$e!! $e!! poor:, the

$atter can a""ord to rent a ho*!e (h$e the% cannot %et b*% ther o(n home!. 3he t(o!oca$ c$a!!e! are th*! d""erent$% !t*ated. It ! nherent n the po(er to ta# that the!tate be "ree to !e$ect the !*bect! o" ta#aton, and t ha! been repeated$% he$d thatne*a$te! (hch re!*$t "rom a !ng$ng o*t o" one partc*$ar c$a!! "or ta#aton ore#empton n"rnge no con!tt*tona$ $mtaton.

. No. E*a$t% and *n"ormt% o" ta#aton mean! that a$$ ta#ab$e artc$e! or nd! o"propert% o" the !ame c$a!! be ta#ed at the !ame rate. 3he ta#ng po(er ha! thea*thort% to mae rea!onab$e and nat*ra$ c$a!!"caton! "or p*rpo!e! o" ta#aton. 3o!at!"% th! re*rement t ! eno*gh that the !tat*te or ordnance app$e! e*a$$% to a$$per!on!, "orm! and corporaton! p$aced n !m$ar !t*aton.3he &on!tt*ton doe! not rea$$% prohbt the mpo!ton o" ndrect ta#e! (hch, $e the

'3, are regre!!)e. hat t !mp$% pro)de! ! that &ongre!! !ha$$ e)o$)e aprogre!!)e !%!tem o" ta#aton.: In the ca!e o" '3, the $a( mnm5e! the regre!!)ee""ect! o" th! mpo!ton b% pro)dng "or 5ero ratng o" certan tran!acton!, (h$egrantng e#empton! to other tran!acton!. Indeed, the mandate to congre!! ! not topre!crbe, b*t to e)o$)e, a progre!!)e ta# !%!tem.

Re!ort to ndrect ta#e! !ho*$d be mnm5ed b*t not a)oded entre$% beca*!e t !d""c*$t, " not mpo!!b$e, to a)od them.

. No. 3h! ! not the on$% n!tance n (hch the enate propo!ed an amendment to a-o*!e re)en*e b$$ b% enactng t! o(n )er!on. 3he amendment b% !*b!tt*ton


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10/22

abo*t ther d*te! a! ct5en! and de!ro*! to *pho$d the con!tt*tona$ mandate and r*$e o"$a( ...H that the% ha)e "$ed the n!tant petton on ther o(n and n beha$" o" a$$ other $pno!!nce the !*bect matter! are o" pro"o*nd and genera$ ntere!t. F

3he re!pondent &E=E&, repre!ented b% co*n!e$, oppo!e! the petton a$$egng thatpettoner! $ac !tandng to "$e the n!tant petton "or the% are not the proper parte! ton!tt*te the acton.

RULING3he petton m*!t be d!m!!ed.'! ta#pa%er!, pettoner! ma% not "$e the n!tant petton, "or no(here theren ! t

a$$eged that ta# mone% ! beng $$ega$$% !pent. 3he act comp$aned o" ! the nacton o" the&E=E& to ca$$ a !peca$ e$ecton, a! ! a$$eged$% t! mn!tera$ d*t% *nder the con!tt*tona$pro)!on abo)e cted, and there"ore, n)o$)e! no e#pendt*re o" p*b$c "*nd!. It ! on$% (henan act comp$aned o", (hch ma% nc$*de a $eg!$at)e enactment or !tat*te, n)o$)e! the$$ega$ e#pendt*re o" p*b$c mone% that the !oCca$$ed ta#pa%er !*t ma% be a$$o(ed. hat theca!e at bar !ee! ! one that enta$! e#pendt*re o" p*b$c "*nd! (hch ma% be $$ega$ beca*!et (o*$d be !pent "or a p*rpo!e that o" ca$$ng a !peca$ e$ecton (hch, a! ($$ be !ho(n, ha!no a*thort% ether n the &on!tt*ton or a !tat*te.

'! )oter!, nether ha)e pettoner! the re*!te ntere!t or per!ona$t% to *a$"% themto mantan and pro!ec*te the pre!ent petton. 3he *ncha$$enged r*$e ! that the per!on (ho

mp*gn! the )a$dt% o" a !tat*te m*!t ha)e a per!ona$ and !*b!tanta$ ntere!t n the ca!e!*ch that he ha! !*!taned, or ($$ !*!tan, drect n*r% a! a re!*$t o" t! en"orcement. In theca!e be"ore @!, the a$$eged nacton o" the &E=E& to ca$$ a !peca$ e$ecton to "$$C*p thee#!tng )acance! n the Bata!an Aamban!a, !tandng a$one, (o*$d ad)er!e$% a""ect on$% thegenera$5ed ntere!t o" a$$ ct5en!. Aettoner!; !tandng to !*e ma% not be predcated *pon anntere!t o" the nd a$$eged here, (hch ! he$d n common b% a$$ member! o" the p*b$cbeca*!e o" the nece!!ar$% ab!tract nat*re o" the n*r% !*ppo!ed$% !hared b% a$$ ct5en!.&oncrete n*r%, (hether act*a$ or threatened, ! that nd!pen!ab$e e$ement o" a d!p*te(hch !er)e! n part to ca!t t n a "orm tradtona$$% capab$e o" *dca$ re!o$*ton. hen thea!!erted harm ! a Fgenera$5ed gre)anceF !hared n !*b!tanta$$% e*a$ mea!*re b% a$$ or a$arge c$a!! o" ct5en!, that harm a$one norma$$% doe! not (arrant e#erc!e o" *r!dcton. '!ad)erted to ear$er, pettoner! ha)e not demon!trated an% perm!!b$e per!ona$ !tae, "or

pettoner =o5ada;! ntere!t a! an a$$eged canddate and a! a )oter ! not !*""cent to con"er!tandng. Aettoner =o5ada doe! not on$% "a$ to n"orm the &o*rt o" the regon he (ant! to bea canddate b*t mae! nd!crmnate demand that !peca$ e$ecton be ca$$ed thro*gho*t theco*ntr%. E)en h! p$ea a! a )oter ! predcated on an ntere!t he$d n common b% a$$ member!o" the p*b$c and doe! not demon!trate an% n*r% !peca$$% drected to hm n partc*$ar.

10 199? granted NA& ta# and d*t% e#empton pr)$ege!. R' 6+9 >1971? re)!ed the charter o"NA& ta!ng t to carr% o*t the po$c% o" the natona$ e$ectr"caton and pro)ded n deta$NA&! ta# e#empton! th*! !trengthenng t. AD 19+1 >198? (thdre( a$$ ta# e#emptonpr)$ege! granted n "a)or o" go)ernmentCo(ned or contro$$ed corporaton! nc$*dng ther!*b!dare!, ho(e)er, empo(erng the Are!dent or n!ter o" nance, *ponrecommendaton o" the !ca$ Incent)e! Re)e( Board >IRB?, to re!tore or mod"%, parta$$%


11/22

or comp$ete$%, the e#empton! (thdra(n or re)!ed. In 198, the e#empton (a! re))ed.It(a! agan remo)ed n 1987 b% )rt*e o" E 9+ (hch agan pro)ded that t ma% be re!tored*pon IRB recommendaton. 'nother re!o$*ton b% the IRB re!tored the e#empton agan,(hch (a! appro)ed b% Are!dent '*no on ctober 1987 thro*gh her e#ec*t)e !ecretar%acarag. aceda opned that the po(er granted to the IRB ! an *nd*e de$egaton o"$eg!$at)e po(er, (hch )e( (a! !trengthened b% pnon 77 !!*ed b% Department o"


12/22

o" t! e#!tence, t had eno%ed pre"erenta$ ta# treatment. rom the preamb$e o" AD9+8 t ! e)dent that the pro)!on! (ere not ntended to be !trct$% con!tr*ed agan!tNA&. n the contrar%, the $a( mandate! that t !ho*$d be nterpreted $bera$$% !o a! toenhance the ta# e#empt !tat*! o" NA&. It ! a recogn5ed prncp$e that !trctnterpretaton doe! not app$% n the ca!e o" e#empton! that "a)or a go)ernmentpo$tca$ !*bd)!on or n!tr*menta$t%. hen t come! to the !tateK e#cepton ! ther*$e and ta#aton the e#cepton.

+. 3he NA& ! a go)ernment n!tr*menta$t% (th the enormo*! ta! o" *ndertangde)e$opment o" h%droe$ectrc generaton o" po(er and prod*cton o" e$ectrct% "romother !o*rce!, a! (e$$ a! the tran!m!!on o" e$ectrc po(er on a naton(de ba!!, tompro)e the *a$t% o" $"e o" the peop$e p*r!*ant to the tate po$c% emboded necton E, 'rtc$e II o" the 1987 &on!tt*ton. 3he *!e o" the phra!e Fa$$ "orm!F o" ta#e!demon!trate the ntenton o" the $a( to g)e NA& a$$ the ta# e#empton! t ha! beeneno%ng be"ore. 3he ratona$e "or th! e#empton ! that beng nonCpro"t the NA& F!ha$$de)ote a$$ t! ret*rn! "rom t! capta$ n)e!tment a! (e$$ a! e#ce!! re)en*e! "rom t!operaton, "or e#pan!on. 3o enab$e the &orporaton to pa% the ndebtedne!! andob$gaton! and n "*rtherance and e""ect)e mp$ementaton o" the po$c% en*ncated necton one o" th! 'ct, . . .F It ! e)dent "rom the pro)!on o" AD 9+8 that t! p*rpo!e! to mantan the ta# e#empton o" NA&"romall forms o" ta#e! nc$*dng ndrect ta#e!

a! pro)ded "or *nder R.'. No. 689 and A.D. No. +80 " t ! to attan t! goa$!.

. 3r*e t ! that the then ecretar% o"


13/22

FACTSAettoner, n)ong h! con!tt*tona$ rght to n"ormaton and the corre$at)e d*t% o"

the !tate to d!c$o!e p*b$c$% a$$ t! tran!acton! n)o$)ng the natona$ ntere!t, demand! thatre!pondent! mae p*b$c an% and a$$ negotaton! and agreement! pertanng to A&GG;! ta!o" reco)erng the arco!e!; $$Cgotten (ea$th. -e c$am! that an% comprom!e on the a$$egedb$$on! o" $$Cgotten (ea$th n)o$)e! an !!*e o" Fparamo*nt p*b$c ntere!t,F !nce t ha! aFdeb$tatng e""ect on the co*ntr%;! econom%F that (o*$d be great$% pre*dca$ to thenatona$ ntere!t o" the $pno peop$e. -ence, the peop$e n genera$ ha)e a rght to no( thetran!acton! or dea$! beng contr)ed and e""ected b% the go)ernment. 'mong theagreement! n the &omprom!e 'greement o" December 199+ (a! the "o$$o(ng pro)!onK

# # # 3he a!!et! o" the ARI'3E A'R3 !ha$$ be net o" ande#empt "rom, an% "orm o" ta#e! d*e the Rep*b$c o" theAh$ppne!. -o(e)er, con!derng the *na)a$ab$t% o" a$$pertnent and re$e)ant doc*ment! and n"ormaton a! toba$ance! and o(ner!hp, the act*a$ !pec"caton o" a!!et! to beretaned b% the ARI'3E A'R3 !ha$$ be co)ered b%!*pp$ementa$ agreement! (hch !ha$$ "orm part o" th!'greement. # # #

ISSUEI! the po(er to grant ta# e#empton (thn the !cope o" the A&GG4

RULINGN. econd, *nder Item No. 2 o" the Genera$ 'greement, the A&GG commt! to e#empt

"rom a$$ "orm! o" ta#e! the properte! to be retaned b% the arco! her!. 3h! ! a c$ear)o$aton o" the &on!tr*cton. 3he po(er to ta# and to grant ta# e#empton! ! )e!ted n the&ongre!! and, to a certan e#tent, n the $oca$ $eg!$at)e bode!. ecton 28 >?, 'rtc$e I o"the &on!tt*ton, !pec"ca$$% pro)de!K FNo $a( grantng an% ta# e#empton !ha$$ be pa!!ed(tho*t the conc*rrence o" a maort% o" a$$ the ember o" the &ongre!!.F 3he A&GG ha!ab!o$*te$% no po(er to grant ta# e#empton!, e)en *nder the co)er o" t! a*thort% tocomprom!e $$Cgotten (ea$th ca!e!.

E)en grantng that &ongre!! enact! a $a( e#emptng the arco!e! "orm pa%ng ta#e!on ther properte!, !*ch $a( ($$ de"nte$% not pa!! the te!t o" the e*a$ protecton c$a*!e*nder the B$$ o" Rght!. 'n% !peca$ grant o" ta# e#empton n "a)or on$% o" the arco! her!($$ con!tt*te c$a!! $eg!$aton. It ($$ a$!o )o$ate the con!tt*tona$ r*$e that Fta#aton !ha$$be *n"orm and e*tab$e.F

Nether can the !tp*$aton be con!tr*ed to "a$$ (thn the po(er o" the comm!!oner o"nterna$ re)en*e to comprom!e ta#e!. *ch a*thort% ma% be e#erc!ed on$% (hen >1? there! rea!onab$e do*bt a! to the )a$dt% o" the c$am agan!t the ta#pa%er, and >2? theta#pa%er;! "nanca$ po!ton demon!trate! a c$ear nab$t% to pa%. De"nte$%, nether re*!te! pre!ent n the ca!e o" the arco!e!, beca*!e *nder the 'greement the% are e""ect)e$%concedng the )a$dt% o" the c$am! agan!t ther properte!, part o" (hch the% ($$ bea$$o(ed to retan.

Nor can the A&GG grant o" ta# e#empton "a$$ (thn the po(er o" the comm!!oner toabate or cance$ a ta# $ab$t%. 3h! po(er can be e#erc!ed on$% (hen >1? the ta# appear! tobe *n*!t$% or e#ce!!)e$% a!!e!!ed, or >2? the admn!traton and co$$ecton co!t! n)o$)ed donot *!t"% the co$$ecton o" the ta# d*e.


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12 Gonal#s v. NarvasaG.R. No. 108+ | '*g*!t 1, 2000En Banc

FACTSAettoner Ramon '. Gon5a$e!, n h! capact% a! a ct5en and ta#pa%er, a!!a$! the

con!tt*tona$t% o" the creaton o" the Areparator% &omm!!on on &on!tt*tona$ Re"orm>A&&R? and o" po!ton! en*merated theren. It "*rther enoned the &omm!!on on '*dt>&'? "rom pa!!ng n a*dt e#pendt*re! "or the A&&R. A&&R (a! created b% Are!. E!trada b%)rt*e o" E#ec*t)e rder no. + n order to !t*d% and recommend propo!ed amendment!andJor re)!on! to the 1987 &on!tt*ton, and the manner o" mp$ementng the !ame.:

ISSUEDoe! pettoner ha)e the locus standito brng a ta#pa%er! !*t4

RULINGNo. 3he co*rt he$d that pettoner ha! not !ho(n that he ha! !*!taned or ! n danger

o" !*!tanng an% per!ona$ n*r% attrb*tab$e to the creaton o" the A&&R. I" at a$$, t ! on$%&ongre!!, not pettoner, (hch can c$am an% n*r%: n th! ca!e !nce, accordng topettoner, the Are!dent ha! encroached *pon the $eg!$at*re! po(er! to create a p*b$co""ce and to propo!e amendment! to the &harter b% "ormng the A&&R. Aettoner a!!*!taned no drect, or e)en an% ndrect n*r%. Nether doe! he c$am that h! rght! orpr)$ege! ha)e been or are n danger o" beng )o$ated, nor that he !ha$$ be !*bected to an%pena$te! or b*rden! a! a re!*$t o" the A&&R! act)te!. &$ear$%, pettoner ha! "a$ed toe!tab$!h h! $oc*! !tand !o a! to enab$e hm to !ee *dca$ redre!! a! a ct5en.

' ta#pa%er ! deemed to ha)e the !tandng to ra!e a con!tt*tona$ !!*e (hen t !e!tab$!hed that p*b$c "*nd! ha)e been d!b*r!ed n a$$eged contra)enton o" the $a( or the&on!tt*ton. 3h*!, a ta#pa%er! acton ! proper$% bro*ght on$% (hen there ! an e#erc!e b%&ongre!! o" t! ta#ng or !pendng po(er.

In "na$ ana$%!!, t m*!t be !tre!!ed that the &o*rt retan! the po(er to decde (hetheror not t ($$ entertan a ta#pa%er! !*t. In the ca!e at bar, there beng no e#erc!e b%congre!! o" t! ta#ng or !pendng po(er, pettoner cannot be a$$o(ed to *e!ton thecreaton o" the A&&R n h! capact% a! ta#pa%er, b*t rather, he m*!t e!tab$!h that he ha! aper!ona$ and !*b!tanta$ ntere!t n the ca!e and that he ha! !*!taned or ($$ !*!tan drectn*r% a! a re!*$t o" t! en"orcement.:


15/22

1+ :a'an vs.Er%i!aG.R. No. 1+870 | ctober 10, 2000En Banc

FACTSn arch 1, 197, the Ah$ppne! and the @nted tate! o" 'merca "orged a $tar%

Ba!e! 'greement (hch "orma$5ed, among other!, the *!e o" n!ta$$aton! n the Ah$ppneterrtor% b% @nted tate! m$tar% per!onne$ and "*rther entered nto a *t*a$ De"en!e 3reat%on '*g*!t +0, 191. In )e( o" the mpendng e#praton o" the RAC@ $tar% Ba!e!'greement n 1991, the Ah$ppne! and the @nted tate! negotated "or a po!!b$e e#ten!ono" the m$tar% ba!e! agreement. n eptember 16, 1991, the Ah$ppne enate reected thepropo!ed RAC@ 3reat% o" rend!hp, &ooperaton and ec*rt% (hch, n e""ect, (o*$d ha)ee#tended the pre!ence o" @ m$tar% ba!e! n the Ah$ppne!. th the e#praton o" the RAC@ $tar% Ba!e! 'greement, the perodc m$tar% e#erc!e! cond*cted bet(een the t(o

co*ntre! (ere he$d n abe%ance. Not(th!tandng, the de"en!e and !ec*rt% re$aton!hpbet(een the Ah$ppne! and the @nted tate! o" 'merca contn*ed p*r!*ant to the *t*a$De"en!e 3reat%.

n


16/22

conc*rrence o" the enate ho(e)er ! mandator% to comp$% (th the !trct con!tt*tona$re*rement!.

n the (ho$e, the ' ! an agreement (hch de"ne! the treatment o" @nted tate!troop! and per!onne$ )!tng the Ah$ppne!. It pro)de! "or the g*de$ne! to go)ern !*ch)!t! o" m$tar% per!onne$, and "*rther de"ne! the rght! o" the @nted tate! and theAh$ppne go)ernment n the matter o" crmna$ *r!dcton, mo)ement o" )e!!e$ and arcra"t,mportaton and e#portaton o" e*pment, matera$! and !*pp$e!. or a! $ong a! theconc*rrence re*rement: *nder ecton 2, 'rtc$e PIII m*!t be con!tr*ed n re$aton tothe pro)!on! o" ecton 21, 'rtc$e II. In a more partc*$ar $ang*age, the conc*rrence o" theenate contemp$ated *nder ecton 2, 'rtc$e PIII mean! that at $ea!t t(oCthrd! o" a$$ themember! o" the enate "a)orab$% )ote to conc*r (th the treat%Cthe ' n the n!tant ca!e.

th the rat"caton o" the ', (hch ! e*)a$ent to "na$ acceptance, and (th thee#change o" note! bet(een the Ah$ppne! and the @nted tate! o" 'merca, t no( become!ob$gator% and nc*mbent on o*r part, *nder the prncp$e! o" nternatona$ $a(, to be bo*ndb% the term! o" the agreement.


17/22

1 AAB? created

p*r!*ant to R' 7160. 3he &)$ er)ce &omm!!on >&&? appro)ed the appontment!.'"ter a%or randa rea!!*med h! po!t, he !!*ed an order termnatng re!pondent!!er)ce! beca*!e the% per"ormed poor$%: d*rng the probatonar% perod. -o(e)er, &&re)er!ed randa! dec!on and ren!tated the re!pondent! (th bac (age!.

'"ter the a% 1998 e$ecton, randa (a! rep$aced b%


18/22

&$ear$%, t doe! not n)o$)e the ill#gal dis&+rs#%#n! o) p+&li( )+nds, hence, pettoner!acton cannot be con!dered a ta#pa%er! !*t.

16 $as(+al vs.S#(r#!ar' o) $+&li( or0sG.R. No. =C100 | December 29, 1960En Banc

FACTSAa!c*a$, n h! o""ca$ capact% a! the Aro)nca$ Go)ernor o" R5a$, pettoned "or a (rt

o" certorar agan!t the d!m!!a$ o" the ca!e and d!!o$)ng o" the pre$mnar% n*ncton he$db% the &o*rt o" the r!t In!tance. Aettoner pra%ed "or that Rep*b$c 'ct No. 920 be dec$aredn*$$ and )od, that the a$$eged Deed o" Donaton made b% O*$*eta be dec$ared*ncon!tt*tona$. Aettoner a$!o pra%ed "or an n*ncton enonng ecretar% o" A*b$c or!and &omm*ncaton!, Drector o" A*b$c or! and -gh(a%! and the d!b*r!ng o""cer! o"the $atter department "rom mang and !ec*rng an% "*rther re$ea!e o" "*nd! "or the !ad roadproect. R'Q 920 contaned an tem appropratng A8,000.00 (hch the pettoner a$$egedthat t (a! "or the con!tr*cton o" road! mpro)ng the pr)ate propert% o"


19/22

17 Cal!#x $"ilippin#s vs. COAG.R. No. 928 | a% 8, 1992

econd D)!on

FACTSIn 1989, the &omm!!on on '*dt >&'? !ent a $etter to pettoner &a$te# Ah$ppne!,

Inc, drectng t to remt t! co$$ecton to the $ Arce tab$5aton *nd >A?, o" theaddtona$ ta# on petro$e*m prod*ct! a*thor5ed *nder ecton 8 o" A.D 196 e#c$*dng tho!e(hch are *nremtted "or the %ear! 1986 and 1988H and that pendng !*ch remttance, a$$ t!c$am! "or remb*r!ement "rom the A !ha$$ be he$d n abe%ance. &a$te# re*e!ted &' "orthe ear$% re$ea!e o" t! remb*r!ement cert"cate! "rom the A co)erng c$am! (th the""ce o" Energ% '""ar!, b*t &' dened the !ame. n a% +1, 1989, &a$te# !*bmtted apropo!a$ to &' "or the pa%ment and the reco)er% o" c$am!. &' appro)ed the propo!a$ b*tprohbted &a$te# "rom "*rther o""!ettng remttance! and remb*r!ement! "or the c*rrent and

en!*ng %ear!. &a$te# mo)ed "or recon!deraton.

ISSUEhether pettoner &a$te# can a)a$ o" the rght to o""!et an% amo*nt that t ma% be

re*red *nder the $a( to remt to the A, agan!t an% amo*nt that t ma% rece)e b% (a%o" remb*r!ement.

RULINGIt ! a !ett$ed r*$e that a ta#pa%er %a' no! o))s#! !ax#s d+# )ro% !"# (lai%s !"a!

"# %a' "av# agains! !"# gov#rn%#n!. 3a#aton ! no $onger en)!oned a! a mea!*remere$% to ra!e re)en*e to !*pport the e#!tence o" the go)ernmentH ta#e! ma% be $e)ed(th a reg*$ator% p*rpo!e to pro)de mean! "or the rehab$taton and !tab$5aton o" a

threatened nd*!tr% (hch ! a""ected (th p*b$c ntere!t a! to be (thn the po$ce po(er o"the !tate. 3here can be no do*bt that the o$ nd*!tr% ! great$% mb*ed (th p*b$c ntere!t a!t )ta$$% a""ect! the genera$ (e$"are. AD 196 e#p$ct$% pro)de! that the !o*rce o" A !ta#aton. 3a#e! cannot be the !*bect o" compen!aton beca*!e the go)ernment andta#pa%er are not m*t*a$$% debtor! and credtor! o" each other and a c$am "or ta#e! ! not!*ch a debt, demand, contract, or *dgment a! ! a$$o(ed to be !et o"". =a!t$%, the ocompane! mere$% acted a! agent! "or the go)ernment n the $atter! co$$ecton !nce ta#e!are pa!!ed *nto the end *!er!, the con!*mng p*b$c.


20/22

18 Gar(ia vs. Ex#(+!iv# S#(r#!ar'G.R. No. 178 | 'pr$ 2, 2009En Banc

FACTST"# $r#sid#n! iss+#d an EO 2"i(" i%pos#d, a(ross !"# &oard, in(l+ding (r+d#

oil and o!"#r oil prod+(!s, addi!ional d+!' ad valorem. T"# Tari)) Co%%ission "#ldp+&li( "#arings on said EO and s+&%i!!#d a r#por! !o !"# $r#sid#n! )or(onsid#ra!ion and appropria!# a(!ion. T"# $r#sid#n!, on !"# o!"#r "and iss+#d anEO 2"i(" l#vi#d a sp#(ial d+!' o) $3.95p#r li!#r o) i%por!#d (r+d# oil and $1.33 p#r

li!#r o) i%por!#d oil prod+(!s.

ISSUECan !"# $r#sid#n! iss+# an EO 2"i(" is !an!a%o+n! !o #na(!ing a &ill in !"#

na!+r# o) r#v#n+#g#n#ra!ing %#as+r#s>

RULINGT"# Co+r! said !"a! al!"o+g" !"# #na(!%#n! o) appropria!ion, r#v#n+# and

!ari)) &ills is 2i!"in !"# provin(# o) !"# L#gisla!iv#, i! do#s no! )ollo2 !"a! EO in8+#s!ion, ass+%ing !"#' %a' ("ara(!#ri#d as r#v#n+# %#as+r# ar# pro"i&i!#d!o !"# $r#sid#n!, !"a! !"#' %+s! #na(!#d ins!#ad &' Congr#ss. S#(!ion 4? o)Ar!i(l# @I o) !"# 19? Cons!i!+!ion provid#s 6T"# Congr#ss %a', &' la2 a+!"ori#

!"# $r#sid#n! !o )ixB !ari)) ra!#s and o!"#r d+!i#s or i%pos!sB7 T"# r#l#van!Congr#ssional s!a!+!# is !"# Tari)) and C+s!o%s Cod# o) !"# $"ilippin#s andS#(!ions 13 and 31, !"# p#r!in#n! provisions !"#r#o).


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Tax Case Digests (Set 02)