case doctrines in taxation law review

7/25/2019 Case Doctrines in Taxation Law Review

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CASE DOCTRINES IN LABOR LAW REVIEW

Prepared by: Glenn Rey Anino

Univeri!y o" Ceb#$ Colle%e o" La&

Manila Memorial Park, Inc. vs. Secretary of the Department of Social Welfare and Development,

711 SCR !"# , Decem$er "!, #"1!

Constitutional Law; Courts; Judicial Review; Requisites of Judicial Review.W'en !'e(on!i!#!ionali!y o" a la& i p#! in i#e) *#di(ial revie& +ay be availed o" only i" !'e "ollo&in%

re,#ii!e (on(#r: -./0 !'e e1i!en(e o" an a(!#al and appropria!e (ae2 .30 !'e e1i!en(e o" peronal and

#b!an!ial in!ere! on !'e par! o" !'e par!y raiin% !'e 4,#e!ion o" (on!i!#!ionali!y52 .60 re(o#re !o*#di(ial revie& i +ade a! !'e earlie! oppor!#ni!y2 and .70 !'e 4,#e!ion o" (on!i!#!ionali!y5 i !'e li

+o!a o" !'e (ae89

Same; Same; Same; An actual case or controversy exists when there is a conflict of leal rihts! oran assertion of o""osite leal claims susce"ti#le of $udicial resolution.!An a(!#al (ae or

(on!rovery e1i! &'en !'ere i -a (on"li(! o" le%al ri%'!9 or -an aer!ion o" oppoi!e le%al (lai+

#(ep!ible o" *#di(ial reol#!ion89 T'e Pe!i!ion +#! !'ere"ore 'o& !'a! -!'e %overn+en!al a(! bein%('allen%ed 'a a dire(! advere e""e(! on !'e individ#al ('allen%in% i!89 In !'i (ae) !'e !a1 ded#(!ion

('e+e ('allen%ed by pe!i!ioner 'a a dire(! advere e""e(! on !'e+8 T'#) i! (anno! be denied !'a!

!'ere e1i! an a(!#al (ae or (on!rovery8

%axation; %ax &eductions; 'olice 'ower; %hus( even if the current law( throuh its tax deduction

scheme )which a#andoned the tax credit scheme under the "revious law*( does not "rovide for a "esofor "eso reim#ursement of the +,- discount iven #y "rivate esta#lishments( no constitutional infirmity

o#tains #ecause( #ein a valid exercise of "olice "ower( "ayment of $ust com"ensation is not

warranted.T'e preen! (ae) !'#) a""ord an oppor!#ni!y "or # !o (lari"y !'e above$,#o!ed

!a!e+en! in Cen!ral L#;on Dr#% Corpora!ion) 7>>?08 @ir!) &e no!e !'a! !'e above$,#o!ed di,#ii!ion on e+inen!

do+ain in Cen!ral L#;on Dr#% Corpora!ion i obi!er di(!a and) !'#) no! bindin% pre(eden!8 A !a!ed

earlier) in Cen!ral L#;on Dr#% Corpora!ion) &e r#led !'a! !'e BIR a(!ed #l!ra vire &'en i! e""e(!ively!rea!ed !'e 3> di(o#n! a a !a1 ded#(!ion) #nder Se(!ion 38i and 7 o" RR No8 3$7) depi!e !'e (lear

&ordin% o" !'e previo# la& !'a! !'e a+e 'o#ld be !rea!ed a a !a1 (redi!8 We &ere) !'ere"ore) no!

(on"ron!ed in !'a! (ae &i!' !'e i#e a !o &'e!'er !'e 3> di(o#n! i an e1er(ie o" poli(e po&er ore+inen! do+ain8 Se(ond) al!'o#%' &e adver!ed !o Cen!ral L#;on Dr#% Corpora!ion in o#r r#lin% in

Carlo S#perdr#% Corpora!ion) !'i re"erred only !o preli+inary +a!!er8 A "air readin% o" Carlo

S#perdr#% Corpora!ion &o#ld 'o& !'a! &e (a!e%ori(ally r#led !'erein !'a! !'e 3> di(o#n! i a valide1er(ie o" poli(e po&er8 T'#) even i" !'e (#rren! la&) !'ro#%' i! !a1 ded#(!ion ('e+e .&'i('

abandoned !'e !a1 (redi! ('e+e #nder !'e previo# la&0) doe no! provide "or a peo "or peo

rei+b#re+en! o" !'e 3> di(o#n! %iven by priva!e e!abli'+en!) no (on!i!#!ional in"ir+i!y ob!ain

be(a#e) bein% a valid e1er(ie o" poli(e po&er) pay+en! o" *#! (o+pena!ion i no! &arran!ed8 We'ave (are"#lly revie&ed !'e bai o" o#r r#lin% in Carlo S#perdr#% Corpora!ion and &e "ind no (o%en!

reaon !o over!#rn) +odi"y or abandon i!8 We alo no!e !'a! pe!i!ioner ar%#+en! are a +ere rei!era!ion

o" !'oe raied and reolved in Carlo S#perdr#% Corpora!ion8 T'#) &e #!ain Carlo S#perdr#%Corpora!ion8

'olice 'ower; minent &omain; 'olice 'ower! and minent &omain(! &istinuished.Poli(epo&er i !'e in'eren! po&er o" !'e S!a!e !o re%#la!e or !o re!rain !'e #e o" liber!y and proper!y "or

p#bli( &el"are8 T'e only li+i!a!ion i !'a! !'e re!ri(!ion i+poed 'o#ld be reaonable) no! oppreive8

In o!'er &ord) !o be a valid e1er(ie o" poli(e po&er) i! +#! 'ave a la&"#l #b*e(! or ob*e(!ive and a


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la&"#l +e!'od o" a((o+pli'in% !'e %oal8 Under !'e poli(e po&er o" !'e S!a!e) -proper!y ri%'! o"

individ#al +ay be #b*e(!ed !o re!rain! and b#rden in order !o "#l"ill !'e ob*e(!ive o" !'e

%overn+en!89 T'e S!a!e -+ay in!er"ere &i!' peronal liber!y) proper!y) la&"#l b#inee and

o((#pa!ion !o pro+o!e !'e %eneral &el"are 4a lon% a5 !'e in!er"eren(e 4i5 reaonable and no!arbi!rary89 E+inen! do+ain) on !'e o!'er 'and) i !'e in'eren! po&er o" !'e S!a!e !o !ae or appropria!e

priva!e proper!y "or p#bli( #e8 T'e Con!i!#!ion) 'o&ever) re,#ire !'a! priva!e proper!y 'all no! be

!aen &i!'o#! d#e pro(e o" la& and !'e pay+en! o" *#! (o+pena!ion8

Same; /n the exercise of "olice "ower( a "ro"erty riht is im"aired #y reulation( or the use of "ro"erty

is merely "rohi#ited( reulated or restricted to "romote "u#lic welfare. /n such cases( there is nocom"ensa#le ta0in( hence( "ayment of $ust com"ensation is not required.In !'e e1er(ie o" poli(e

po&er) a proper!y ri%'! i i+paired by re%#la!ion) or !'e #e o" proper!y i +erely pro'ibi!ed) re%#la!ed

or re!ri(!ed !o pro+o!e p#bli( &el"are8 In #(' (ae) !'ere i no (o+penable !ain%) 'en(e) pay+en!o" *#! (o+pena!ion i no! re,#ired8 E1a+ple o" !'ee re%#la!ion are proper!y (onde+ned "or bein%

no1io# or in!ended "or no1io# p#rpoe .e8%8) a b#ildin% on !'e ver%e o" (ollape !o be de+oli'ed "or

p#bli( a"e!y) or ob(ene +a!erial !o be de!royed in !'e in!ere! o" p#bli( +oral0 a &ell a ;onin%

ordinan(e pro'ibi!in% !'e #e o" proper!y "or p#rpoe in*#rio# !o !'e 'eal!') +oral or a"e!y o" !'e(o++#ni!y .e8%8) dividin% a (i!y !erri!ory in!o reiden!ial and ind#!rial area08 I! 'a) !'#) been

oberved !'a!) in !'e e1er(ie o" poli(e po&er .a di!in%#i'ed "ro+ e+inen! do+ain0) al!'o#%' !'e

re%#la!ion a""e(! !'e ri%'! o" o&ner'ip) none o" !'e b#ndle o" ri%'! &'i(' (on!i!#!e o&ner'ip iappropria!ed "or #e by or "or !'e bene"i! o" !'e p#bli(8

minent &omain; /n the exercise of the "ower of eminent domain( "ro"erty interests are a""ro"riatedand a""lied to some "u#lic "ur"ose which necessitates the "ayment of $ust com"ensation therefor.In

!'e e1er(ie o" !'e po&er o" e+inen! do+ain) proper!y in!ere! are appropria!ed and applied !o o+e

p#bli( p#rpoe &'i(' ne(ei!a!e !'e pay+en! o" *#! (o+pena!ion !'ere"or8 Nor+ally) !'e !i!le !o and

poeion o" !'e proper!y are !ran"erred !o !'e e1propria!in% a#!'ori!y8 E1a+ple in(l#de !'ea(,#ii!ion o" land "or !'e (on!r#(!ion o" p#bli( 'i%'&ay a &ell a a%ri(#l!#ral land a(,#ired by

!'e %overn+en! #nder !'e a%rarian re"or+ la& "or redi!rib#!ion !o ,#ali"ied "ar+er bene"i(iarie8

o&ever) i! i a e!!led r#le !'a! !'e a(,#ii!ion o" !i!le or !o!al de!r#(!ion o" !'e proper!y i no!een!ial "or -!ain%9 #nder !'e po&er o" e+inen! do+ain !o be preen!8 E1a+ple o" !'ee in(l#de

e!abli'+en! o" eae+en! #(' a &'ere !'e land o&ner i perpe!#ally deprived o" 'i proprie!ary

ri%'! be(a#e o" !'e 'a;ard poed by ele(!ri( !ran+iion line (on!r#(!ed above 'i proper!y or !'e(o+pelled in!er(onne(!ion o" !'e !elep'one y!e+ be!&een !'e %overn+en! and a priva!e (o+pany8 In

!'ee (ae) al!'o#%' !'e priva!e proper!y o&ner i no! dive!ed o" o&ner'ip or poeion) pay+en! o"

*#! (o+pena!ion i &arran!ed be(a#e o" !'e b#rden pla(ed on !'e proper!y "or !'e #e or bene"i! o"!'e p#bli(8

Same; 'olice 'ower; /t may not always #e easy to determine whether a challened overnmental act is

an exercise of "olice "ower or eminent domain.I! +ay no! al&ay be eay !o de!er+ine &'e!'er a('allen%ed %overn+en!al a(! i an e1er(ie o" poli(e po&er or e+inen! do+ain8 T'e very na!#re o"

poli(e po&er a ela!i( and reponive !o vario# o(ial (ondi!ion a &ell a !'e evolvin% +eanin% and

(ope o" p#bli( #e and *#! (o+pena!ion in e+inen! do+ain evin(e !'a! !'ee are no! !a!i( (on(ep!8Be(a#e o" !'e e1i%en(ie o" rapidly ('an%in% !i+e) Con%re +ay be (o+pelled !o adop! or

e1peri+en! &i!' di""eren! +ea#re !o pro+o!e !'e %eneral &el"are &'i(' +ay no! "all ,#arely &i!'in

!'e !radi!ionally re(o%ni;ed (a!e%orie o" poli(e po&er and e+inen! do+ain8 T'e *#di(io# approa(')!'ere"ore) i !o loo a! !'e na!#re and e""e(! o" !'e ('allen%ed %overn+en!al a(! and de(ide) on !'e

bai !'ereo") &'e!'er !'e a(! i !'e e1er(ie o" poli(e po&er or e+inen! do+ain8 T'#) &e no& loo a!

!'e na!#re and e""e(! o" !'e 3> di(o#n! !o de!er+ine i" i! (on!i!#!e an e1er(ie o" poli(e po&er or


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e+inen! do+ain8

Senior Citi1en &iscount; %he +,- discount is intended to im"rove the welfare of senior citi1ens who( at

their ae( are less li0ely to #e ainfully em"loyed( more "rone to illnesses and other disa#ilities( and(thus( in need of su#sidy in "urchasin #asic commodities.T'e 3> di(o#n! i in!ended !o i+prove

!'e &el"are o" enior (i!i;en &'o) a! !'eir a%e) are le liely !o be %ain"#lly e+ployed) +ore prone !o

illnee and o!'er diabili!ie) and) !'#) in need o" #bidy in p#r('ain% bai( (o++odi!ie8 I! +ayno! be a+i !o +en!ion alo !'a! !'e di(o#n! erve !o 'onor enior (i!i;en &'o pre#+ably pen! !'e

prod#(!ive year o" !'eir live on (on!rib#!in% !o !'e develop+en! and pro%re o" !'e na!ion8 T'i

di!in(! (#l!#ral @ilipino pra(!i(e o" 'onorin% !'e elderly i an in!e%ral par! o" !'i la&8 A !o i! na!#reand e""e(!) !'e 3> di(o#n! i a re%#la!ion a""e(!in% !'e abili!y o" priva!e e!abli'+en! !o pri(e !'eir

prod#(! and ervi(e rela!ive !o a pe(ial (la o" individ#al) enior (i!i;en) "or &'i(' !'e

Con!i!#!ion a""ord pre"eren!ial (on(ern8 In !#rn) !'i a""e(! !'e a+o#n! o" pro"i! or in(o+eF%roale !'a! a priva!e e!abli'+en! (an derive "ro+ enior (i!i;en8 In o!'er &ord) !'e #b*e(! re%#la!ion

a""e(! !'e pri(in%) and) 'en(e) !'e pro"i!abili!y o" a priva!e e!abli'+en!8 o&ever) i! doe no! p#rpor!

!o appropria!e or b#rden pe(i"i( proper!ie) #ed in !'e opera!ion or (ond#(! o" !'e b#ine o" priva!e

e!abli'+en!) "or !'e #e or bene"i! o" !'e p#bli() or enior (i!i;en "or !'a! +a!!er) b#! +erelyre%#la!e !'e pri(in% o" %ood and ervi(e rela!ive !o) and !'e a+o#n! o" pro"i! or in(o+eF%ro ale

!'a! #(' priva!e e!abli'+en! +ay derive "ro+) enior (i!i;en8

Statutes; 2ecause all laws en$oy the "resum"tion of constitutionality( courts will u"hold a law3s validity

if any set of facts may #e conceived to sustain it.Be(a#e all la& en*oy !'e pre#+p!ion o"

(on!i!#!ionali!y) (o#r! &ill #p'old a la& validi!y i" any e! o" "a(! +ay be (on(eived !o #!ain i!8On i! "a(e) &e "ind !'a! !'ere are a! lea! !&o (on(eivable bae !o #!ain !'e #b*e(! re%#la!ion

validi!y aben! (lear and (onvin(in% proo" !'a! i! i #nreaonable) oppreive or (on"i(a!ory8 Con%re

+ay 'ave le%i!i+a!ely (on(l#ded !'a! b#ine e!abli'+en! 'ave !'e (apa(i!y !o aborb a de(reae in

pro"i! or in(o+eF%ro ale d#e !o !'e 3> di(o#n! &i!'o#! #b!an!ially a""e(!in% !'e reaonable ra!eo" re!#rn on !'eir inve!+en! (oniderin% ./0 no! all (#!o+er o" a b#ine e!abli'+en! are enior

(i!i;en and .30 !'e level o" i! pro"i! +ar%in on %ood and ervi(e o""ered !o !'e %eneral p#bli(8

Con(#rren!ly) Con%re +ay 'ave) lie&ie) le%i!i+a!ely (on(l#ded !'a! !'e e!abli'+en!) &'i(' &illbe re,#ired !o e1!end !'e 3> di(o#n!) 'ave !'e (apa(i!y !o revie !'eir pri(in% !ra!e%y o !'a!

&'a!ever red#(!ion in pro"i! or in(o+eF%ro ale !'a! !'ey +ay #!ain be(a#e o" ale !o enior

(i!i;en) (an be re(o#ped !'ro#%' 'i%'er +ar#p or "ro+ o!'er prod#(! no! #b*e(! o" di(o#n!8 A are#l!) !'e di(o#n! re#l!in% "ro+ ale !o enior (i!i;en &ill no! be (on"i(a!ory or #nd#ly

oppreive8

Same; A court( in resolvin cases #efore it( may loo0 into the "ossi#le "ur"oses or reasons thatim"elled the enactment of a "articular statute or leal "rovision.A (o#r!) in reolvin% (ae be"ore i!)

+ay loo in!o !'e poible p#rpoe or reaon !'a! i+pelled !'e ena(!+en! o" a par!i(#lar !a!#!e or

le%al proviion8 o&ever) !a!e+en! +ade rela!ive !'ere!o are no! al&ay ne(eary in reolvin% !'ea(!#al (on!roverie preen!ed be"ore i!8 T'i &a !'e (ae in Cen!ral L#;on Dr#% Corpora!ion) 7>


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len%!' !'e do(!rine on -!ain%9 in poli(e po&er &'i(' o((#r &'en priva!e proper!y i de!royed or

pla(ed o#!ide !'e (o++er(e o" +an8 Indeed) !'ere i a &'ole (la o" poli(e po&er +ea#re &'i('

*#!i"y !'e de!r#(!ion o" priva!e proper!y in order !o preerve p#bli( 'eal!') +oral) a"e!y or &el"are8

A earlier +en!ioned) !'ee &o#ld in(l#de a b#ildin% on !'e ver%e o" (ollape or (on"i(a!ed ob(ene+a!erial a &ell a !'oe +en!ioned by !'e Dien! &i!' re%ard !o proper!y #ed in viola!in% a (ri+inal

!a!#!e or one &'i(' (on!i!#!e a n#ian(e8 In #(' (ae) no (o+pena!ion i re,#ired8 o&ever) i! i

e,#ally !r#e !'a! !'ere i ano!'er (la o" poli(e po&er +ea#re &'i(' do no! involve !'e de!r#(!iono" priva!e proper!y b#! +erely re%#la!e i! #e8 T'e +ini+#+ &a%e la&) ;onin% ordinan(e) pri(e

(on!rol la&) la& re%#la!in% !'e opera!ion o" +o!el and 'o!el) la& li+i!in% !'e &orin% 'o#r !o

ei%'!) and !'e lie &o#ld "all #nder !'i (a!e%ory8 T'e e1a+ple (i!ed by !'e Dien!) lie&ie) "all#nder !'i (a!e%ory: Ar!i(le /


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e!abli'+en! !o in(#r loe in an #nreaonable) oppreive or (on"i(a!ory +anner) &'a! i a(!#ally

!aen i (api!al and !'e ri%'! o" !'e b#ine e!abli'+en! !o a reaonable re!#rn on inve!+en!8 I" !'e

b#ine loe are no! 'al!ed be(a#e o" !'e (on!in#ed opera!ion o" !'e re%#la!ion) !'i even!#ally lead

!o !'e de!r#(!ion o" !'e b#ine and !'e !o!al lo o" !'e (api!al inve!ed !'erein8 B#!) a%ain) pe!i!ionerin !'i (ae "ailed !o prove !'a! !'e #b*e(! re%#la!ion i #nreaonable) oppreive or (on"i(a!ory8

'olice 'ower; Senior Citi1en &iscount; %he State has( in the "ast( reulated "rices and "rofits of#usiness esta#lishments. /n other words( this ty"e of reulatory measures is traditionally reconi1ed as

"olice "ower measures so that the senior citi1en discount may #e considered as a "olice "ower

measure as well.T'e S!a!e 'a) in !'e pa!) re%#la!ed pri(e and pro"i! o" b#ine e!abli'+en!8 Ino!'er &ord) !'i !ype o" re%#la!ory +ea#re i !radi!ionally re(o%ni;ed a poli(e po&er +ea#re o

!'a! !'e enior (i!i;en di(o#n! +ay be (onidered a a poli(e po&er +ea#re a &ell8 W'a! i +ore) !'e

#b!an!ial di!in(!ion be!&een pri(e and ra!e o" re!#rn on inve!+en! (on!rol la& vi$$vi !'e enior(i!i;en di(o#n! la& provide %rea!er reaon !o #p'old !'e validi!y o" !'e enior (i!i;en di(o#n! la&8 A

previo#ly di(#ed) !'e abili!y !o ad*#! pri(e allo& !'e e!abli'+en! #b*e(! !o !'e enior (i!i;en

di(o#n! !o preven! or +i!i%a!e any red#(!ion o" pro"i! or in(o+eF%ro ale ariin% "ro+ !'e %ivin% o"

!'e di(o#n!8 In (on!ra!) e!abli'+en! #b*e(! !o pri(e and ra!e o" re!#rn on inve!+en! (on!rol la&(anno! ad*#! pri(e a((ordin%ly8

Constitutional Law; %here is nothin in the Constitution that "rohi#its Conress from reulatin the"rofits or income4ross sales of industries and enter"rises without franchises. 5n the contrary( the

social $ustice "rovisions of the Constitution en$oin the State to reulate the acquisition( ownershi"(

use( and dis"osition! of "ro"erty and its increments.T'ere i no!'in% in !'e Con!i!#!ion !'a!pro'ibi! Con%re "ro+ re%#la!in% !'e pro"i! or in(o+eF%ro ale o" ind#!rie and en!erprie

&i!'o#! "ran('ie8 On !'e (on!rary) !'e o(ial *#!i(e proviion o" !'e Con!i!#!ion en*oin !'e S!a!e !o

re%#la!e !'e -a(,#ii!ion) o&ner'ip) #e) and dipoi!ion9 o" proper!y and i! in(re+en!8 T'i +ay

(over !'e re%#la!ion o" pro"i! or in(o+eF%ro ale o" all b#inee) &i!'o#! ,#ali"i(a!ion) !o a!!ain!'e ob*e(!ive o" di""#in% &eal!' in order !o pro!e(! and en'an(e !'e ri%'! o" all !'e people !o '#+an

di%ni!y8 T'#) #nder !'e o(ial *#!i(e poli(y o" !'e Con!i!#!ion) b#ine e!abli'+en! +ay be

(o+pelled !o (on!rib#!e !o #pli"!in% !'e pli%'! o" v#lnerable or +ar%inali;ed %ro#p in o#r o(ie!yprovided !'a! !'e re%#la!ion i no! arbi!rary) oppreive or (on"i(a!ory) or i no! in brea(' o" o+e

pe(i"i( (on!i!#!ional li+i!a!ion8

Statutes; A law( which has #een in o"eration for many years and "romotes the welfare of a rou"

accorded s"ecial concern #y the Constitution( cannot and should not #e summarily invalidated on a

mere alleation that it reduces the "rofits or income4ross sales of #usiness esta#lishments.We+ain!ain !'a! !'e (orre(! r#le in de!er+inin% &'e!'er !'e #b*e(! re%#la!ory +ea#re 'a a+o#n!ed !o a

-!ain%9 #nder !'e po&er o" e+inen! do+ain i !'e one laid do&n in Alalayan v8 Na!ional Po&er

Corpora!ion) 37 SCRA /?3 ./=0) and "ollo&ed in Carlo S#perdr#% Corpora!ion)

.3>>?0) (oni!en! &i!' lon% !andin% prin(iple in poli(e po&er and e+inen! do+ain analyi8 T'#)!'e depriva!ion or red#(!ion o" pro"i! or in(o+eF%ro ale +#! be (learly 'o&n !o be #nreaonable)

oppreive or (on"i(a!ory8 Under !'e pe(i"i( (ir(#+!an(e o" !'i (ae) #(' de!er+ina!ion (an only

be +ade #pon !'e preen!a!ion o" (o+pe!en! proo" &'i(' pe!i!ioner "ailed !o do8 A la&) &'i(' 'a beenin opera!ion "or +any year and pro+o!e !'e &el"are o" a %ro#p a((orded pe(ial (on(ern by !'e

Con!i!#!ion) (anno! and 'o#ld no! be #++arily invalida!ed on a +ere alle%a!ion !'a! i! red#(e !'e

pro"i! or in(o+eF%ro ale o" b#ine e!abli'+en!8


6/63

%io vs. &ideo'ram Re'(latory )oard, 1*1 SCR #"+ , (ne 1+, 1-+7

Constitutional Law; Constitutional requirement that every #ill shall em#race only one su#$ect which

shall #e ex"ressed in the title thereof3 is sufficiently com"lied with if the title #e com"rehensive enouh

to include the eneral "ur"ose it see0s to achieve and if all the "arts of the statute are related andermane to the su#$ect matter ex"ressed in the title or as lon as they are not inconsistent with or

forein to the eneral su#$ect and title.T'e Con!i!#!ional re,#ire+en! !'a! -every bill 'all e+bra(e

only one #b*e(! &'i(' 'all be e1preed in !'e !i!le !'ereo"9 i #""i(ien!ly (o+plied &i!' i" !'e !i!lebe (o+pre'enive eno#%' !o in(l#de !'e %eneral p#rpoe &'i(' a !a!#!e ee !o a('ieve8 I! i no!

ne(eary !'a! !'e !i!le e1pre ea(' and every end !'a! !'e !a!#!e &i'e !o a((o+pli'8 T'e

re,#ire+en! i a!i"ied i" all !'e par! o" !'e !a!#!e are rela!ed) and are %er+ane !o !'e #b*e(! +a!!ere1preed in !'e !i!le) or a lon% a !'ey are no! in(oni!en! &i!' or "orei%n !o !'e %eneral #b*e(! and

!i!le8 An a(! 'avin% a in%le %eneral #b*e(!) indi(a!ed in !'e !i!le) +ay (on!ain any n#+ber o"

proviion) no +a!!er 'o& divere !'ey +ay be) o lon% a !'ey are no! in(oni!en! &i!' or "orei%n !o!'e %eneral #b*e(!) and +ay be (onidered in "#r!'eran(e o" #(' #b*e(! by providin% "or !'e +e!'od

and +ean o" (arryin% o#! !'e %eneral ob*e(!89 T'e r#le alo i !'a! !'e (on!i!#!ional re,#ire+en! a !o

!'e !i!le o" a bill 'o#ld no! be o narro&ly (on!r#ed a !o (ripple or i+pede !'e po&er o" le%ila!ion8 I!

'o#ld be %iven a pra(!i(al ra!'er !'an !e('ni(al (on!r#(!ion8

Same; Same; Section 6, '& 6789 otherwise 0nown as :ideoram Reulatory 2oard is not a Rider.

Se(!ion />8 Ta1 on Sale) Leae or Dipoi!ion o" Video%ra+8 No!&i!'!andin% any proviion o" la& !o!'e (on!rary) !'e provin(e 'all (olle(! a !a1 o" !'ir!y per(en! .6>0 o" !'e p#r('ae pri(e or ren!al ra!e)

a !'e (ae +ay be) "or every ale) leae or dipoi!ion o" a video%ra+ (on!ainin% a reprod#(!ion o" any

+o!ion pi(!#re or a#diovi#al pro%ra+8 @i"!y per(en! .0 o" !'e pro(eed o" !'e !a1 (olle(!ed 'alla((r#e !o !'e provin(e) and !'e o!'er "i"!y per(en! .0 'all a((r#e !o !'e +#ni(ipali!y &'ere !'e !a1

i (olle(!ed2 PROVIDED) T'a! in Je!ropoli!an Janila) !'e !a1 'all be 'ared e,#ally by !'e

Ci!yFJ#ni(ipali!y and !'e Je!ropoli!an Janila Co++iion8 1 1 1 19 T'e "ore%oin% proviion i allied

and %er+ane !o) and i reaonably ne(eary "or !'e a((o+pli'+en! o") !'e %eneral ob*e(! o" !'eDECREE) &'i(' i !'e re%#la!ion o" !'e video ind#!ry !'ro#%' !'e Video%ra+ Re%#la!ory Board a

e1preed in i! !i!le8 T'e !a1 proviion i no! in(oni!en! &i!') nor "orei%n !o !'a! %eneral #b*e(! and

!i!le8 A a !ool "or re%#la!ion i! i i+ply one o" !'e re%#la!ory and (on!rol +e('ani+ (a!!ered!'ro#%'o#! !'e DECREE8 T'e e1pre p#rpoe o" !'e DECREE !o in(l#de !a1a!ion o" !'e video

ind#!ry in order !o re%#la!e and ra!ionali;e !'e 'ere!o"ore #n(on!rolled di!rib#!ion o" video%ra+ i

eviden! "ro+ Prea+ble 3 and 0 !a1 i+poed i 'ar' and oppreive) (on"i(a!ory) and in

re!rain! o" !rade8 o&ever) i! i beyond erio# ,#e!ion !'a! a !a1 doe no! (eae !o be valid +erely

be(a#e i! re%#la!e) di(o#ra%e) or even de"ini!ely de!er !'e a(!ivi!ie !a1ed8 T'e po&er !o i+poe!a1e i one o #nli+i!ed in "or(e and o ear('in% in e1!en!) !'a! !'e (o#r! (ar(ely ven!#re !o de(lare

!'a! i! i #b*e(! !o any re!ri(!ion &'a!ever) e1(ep! #(' a re! in !'e di(re!ion o" !'e a#!'ori!y &'i('

e1er(ie i!8 In i+poin% a !a1) !'e le%ila!#re a(! #pon i! (on!i!#en!8 T'i i) in %eneral) a #""i(ien!e(#ri!y a%ain! erroneo# and oppreive !a1a!ion8 T'e !a1 i+poed by !'e DECREE i no! only a

re%#la!ory b#! alo a reven#e +ea#re pro+p!ed by !'e reali;a!ion !'a! earnin% o" video%ra+

e!abli'+en! o" aro#nd P=>> +illion per ann#+ 'ave no! been #b*e(!ed !o !a1) !'ereby deprivin% !'e


7/63

Govern+en! o" an addi!ional o#r(e o" reven#e8 I! i an end$#er !a1) i+poed on re!ailer "or every

video%ra+ !'ey +ae available "or p#bli( vie&in%) I! i i+ilar !o !'e 6> a+#e+en! !a1 i+poed or

borne by !'e +ovie ind#!ry &'i(' !'e !'ea!er$o&ner pay !o !'e %overn+en!) b#! &'i(' i paed on !o

!'e en!ire (o! o" !'e ad+iion !i(e!) !'# 'i"!in% !'e !a1 b#rden on !'e b#yin% or !'e vie&in% p#bli(8I! i a !a1 !'a! i i+poed #ni"or+ly on all video%ra+ opera!or8 T'e levy o" !'e 6> !a1 i "or a p#bli(

p#rpoe8 I! &a i+poed pri+arily !o an&er !'e need "or re%#la!in% !'e video ind#!ry) par!i(#larly

be(a#e o" !'e ra+pan! "il+ pira(y) !'e "la%ran! viola!ion o" in!elle(!#al proper!y ri%'!) and !'eproli"era!ion o" porno%rap'i( video !ape8 And &'ile i! &a alo an ob*e(!ive o" !'e DECREE !o pro!e(!

!'e +ovie ind#!ry) !'e !a1 re+ain a valid i+poi!ion8

Same; Same; Same; Same; '& 6789 not an undue deleation of leislative "ower.Nei!'er (an i! be

#((e"#lly ar%#ed !'a! !'e DECREE (on!ain an #nd#e dele%a!ion o" le%ila!ive po&er8 T'e %ran! in

Se(!ion // o" !'e DECREE o" a#!'ori!y !o !'e BOARD !o -oli(i! !'e dire(! ai!an(e o" o!'era%en(ie and Uni! o" !'e %overn+en! and dep#!i;e) "or a "i1ed and li+i!ed period) !'e 'ead or

peronnel o" #(' a%en(ie and #ni! !o per"or+ en"or(e+en! "#n(!ion "or !'e Board9 i no! a

dele%a!ion o" !'e po&er !o le%ila!e b#! +erely a (on"er+en! o" a#!'ori!y or di(re!ion a !o i!

e1e(#!ion) en"or(e+en!) and i+ple+en!a!ion8 -T'e !r#e di!in(!ion i be!&een !'e dele%a!ion o" po&er!o +ae !'e la&) &'i(' ne(earily involve a di(re!ion a !o &'a! i! 'all be) and (on"errin% a#!'ori!y

or di(re!ion a !o i! e1e(#!ion !o be e1er(ied #nder and in p#r#an(e o" !'e la&8 T'e "ir! (anno! be

done2 !o !'e la!!er) no valid ob*e(!ion (an be +ade89 Beide) in !'e very lan%#a%e o" !'e de(ree) !'ea#!'ori!y o" !'e BOARD !o oli(i! #(' ai!an(e i "or a -"i1ed and li+i!ed period9 &i!' !'e dep#!i;ed

a%en(ie (on(erned bein% -#b*e(! !o !'e dire(!ion and (on!rol o" !'e BOARD89 T'a! !'e %ran! o" #('

a#!'ori!y +i%'! be !'e o#r(e o" %ra"! and (orr#p!ion &o#ld no! !i%+a!i;e !'e DECREE a#n(on!i!#!ional8 S'o#ld !'e even!#ali!y o((#r) !'e a%%rieved par!ie &ill no! be &i!'o#! ade,#a!e

re+edy in la&8

(t/ vs. raneta, -+ Phil. 10+ , Decem$er ##, 1-**

C5S%/%A%/5; '5=R 5? S%A% %5 L:@ %A> / A/& A& S


8/63

Declaratory relief; Remedy cannot #e availed of if there has #een #reach of statute #efore filin of

action.T'e pri+e pe(i"i(a!ion o" an a(!ion "or de(lara!ory relie" i !'a! i! +#! be bro#%'! be"ore

brea(' or viola!ion o" !'e !a!#!e 'a been (o++i!!ed8 R#le =7) e(!ion / o provide8 Se(!ion = o" !'e

a+e r#le) &'i(' allo& !'e (o#r! !o !rea! an a(!ion "or de(lara!ory relie" a an ordinary a(!ion) applieonly i" !'e brea(' or viola!ion o((#r a"!er !'e "ilin%M o" !'e a(!ion b#! be"ore !'e !er+ina!ion !'ereo"8 I"

!'ere 'a been a brea(' o" !'e !a!#!e be"ore !'e "ilin% o" !'e a(!ion) !'e re+edy o" de(lara!ory relie"

(anno! be availed o") +#(' le (an !'e #i! be (onver!ed in!o an ordinary a(!ion8

Constitutional law; Statutory construction; AntiB%2 Stam" Law; ot violative of equal "rotection

clause of the Constitution.I! i (lai+ed !'a! Rep#bli( A(! /=6


9/63

Planters Prod(cts, Inc. vs. 4ertiphil Corporation, *0+ SCR 0+* , March 10, #""+

#di(ial Revie&2 Lo(# S!andi2 In priva!e #i!) lo(# !andi re,#ire a li!i%an! !o be a -real par!y inin!ere!)9 &'i(' i de"ined a -!'e par!y &'o !and !o be bene"i!ed or in*#red by !'e *#d%+en! in !'e

#i! or !'e par!y en!i!led !o !'e avail o" !'e #i!92 In !'i *#ridi(!ion) We 'ave adop!ed !'e -dire(!

in*#ry !e!9 !o de!er+ine lo(# !andi in p#bli( #i!2 T'e -dire(! in*#ry !e!9 in p#bli( #i! i i+ilar !o!'e -real par!y in in!ere!9 r#le "or priva!e #i! #nder Se(!ion 3) R#le 6 o" !'e /? R#le o" Civil

Pro(ed#re8

Sa+e2 Sa+e2 T'e "a(! o" pay+en! by a eller o" !'e levy i+poed by Le!!er o" In!r#(!ion .LOI0 /7=< i

#""i(ien! in*#ry!'e 'ar+ o((aioned on i! b#ine i #""i(ien! in*#ry "or p#rpoe o" lo(# !andi

Sa+e2 Sa+e2 T'e do(!rine o" !andin%) bein% a +ere pro(ed#ral !e('ni(ali!y) 'o#ld be &aived) i" a! all)

!o ade,#a!ely !'re' o#! an i+por!an! (on!i!#!ional i#e8

Sa+e2 #ridi(!ion2 Re%#lar (o#r! 'ave *#ridi(!ion over (ae involvin% !'e validi!y or(on!i!#!ionali!y o" a r#le or re%#la!ion i#ed by ad+ini!ra!ive a%en(ie8

Sa+e2 Li Jo!a2 T'e (on!i!#!ionali!y o" Le!!er o" In!r#(!ion .LOI0 No8 /7=< i alo !'e very li +o!ao" !'e (o+plain! "or (olle(!ion8

Ta1a!ion2 Poli(e Po&er2 Word and P'rae2 Poli(e po&er i !'e po&er o" !'e S!a!e !o ena(! le%ila!ion!'a! +ay in!er"ere &i!' peronal liber!y or proper!y in order !o pro+o!e !'e %eneral &el"are) &'ile !'e

po&er o" !a1a!ion i !'e po&er !o levy !a1e !o be #ed "or p#bli( p#rpoe8Poli(e po&er and !'e

po&er o" !a1a!ion are in'eren! po&er o" !'e S!a!e8 T'ee po&er are di!in(! and 'ave di""eren! !e!

"or validi!y8 Poli(e po&er i !'e po&er o" !'e S!a!e !o ena(! le%ila!ion !'a! +ay in!er"ere &i!' peronalliber!y or proper!y in order !o pro+o!e !'e %eneral &el"are) &'ile !'e po&er o" !a1a!ion i !'e po&er !o

levy !a1e !o be #ed "or p#bli( p#rpoe8 T'e +ain p#rpoe o" poli(e po&er i !'e re%#la!ion o" a

be'avior or (ond#(!) &'ile !a1a!ion i reven#e %enera!ion8 T'e -la&"#l #b*e(!9 and -la&"#l +ean9!e! are #ed !o de!er+ine !'e validi!y o" a la& ena(!ed #nder !'e poli(e po&er8 T'e po&er o" !a1a!ion)

on !'e o!'er 'and) i (ir(#+(ribed by in'eren! and (on!i!#!ional li+i!a!ion8 We a%ree &i!' !'e RTC

!'a! !'e i+poi!ion o" !'e levy &a an e1er(ie by !'e S!a!e o" i! !a1a!ion po&er8 W'ile i! i !r#e !'a!!'e po&er o" !a1a!ion (an be #ed a an i+ple+en! o" poli(e po&er) !'e pri+ary p#rpoe o" !'e levy i

reven#e %enera!ion8 I" !'e p#rpoe i pri+arily reven#e) or i" reven#e i) a! lea!) one o" !'e real and

#b!an!ial p#rpoe) !'en !'e e1a(!ion i properly (alled a !a18

Same; %he "ower to tax exists for the eneral welfare( hence( im"licit in its "ower is the limitation that

it should #e used only for a "u#lic "ur"oseit would #e a ro##ery for the State to tax its citi1ens and

use the funds enerated for a "rivate "ur"ose.An in'eren! li+i!a!ion on !'e po&er o" !a1a!ion ip#bli( p#rpoe8 Ta1e are e1a(!ed only "or a p#bli( p#rpoe8 T'ey (anno! be #ed "or p#rely priva!e

p#rpoe or "or !'e e1(l#ive bene"i! o" priva!e peron8 T'e reaon "or !'i i i+ple8 T'e po&er !o !a1

e1i! "or !'e %eneral &el"are2 'en(e) i+pli(i! in i! po&er i !'e li+i!a!ion !'a! i! 'o#ld be #ed only"or a p#bli( p#rpoe8 I! &o#ld be a robbery "or !'e S!a!e !o !a1 i! (i!i;en and #e !'e "#nd %enera!ed

"or a priva!e p#rpoe8 A an old Uni!ed S!a!e (ae bl#n!ly p#! i!: -To lay &i!' one 'and) !'e po&er o"

!'e %overn+en! on !'e proper!y o" !'e (i!i;en) and &i!' !'e o!'er !o be!o& i! #pon "avored individ#al!o aid priva!e en!erprie and b#ild #p priva!e "or!#ne) i none!'ele a robbery be(a#e i! i done

#nder !'e "or+ o" la& and i (alled !a1a!ion89


10/63

Same; =ords and 'hrases; 'u#lic "ur"ose is the heart of a tax law; 'u#lic "ur"ose is an elastic

conce"t that can #e hammered to fit modern standardsit does not only "ertain to those "ur"oses

which are traditionally viewed as essentially overnment functions( such as #uildin roads and

delivery of #asic services( #ut also includes those "ur"oses desined to "romote social $ustice; =hilethe cateories of what may constitute a "u#lic "ur"ose are continually ex"andin in liht of the

ex"ansion of overnment functions( the inherent requirement that taxes can only #e exacted for a

"u#lic "ur"ose still stands.T'e !er+ -p#bli( p#rpoe9 i no! de"ined8 I! i an ela!i( (on(ep! !'a! (anbe 'a++ered !o "i! +odern !andard8 #ripr#den(e !a!e !'a! -p#bli( p#rpoe9 'o#ld be %iven a

broad in!erpre!a!ion8 I! doe no! only per!ain !o !'oe p#rpoe &'i(' are !radi!ionally vie&ed a

een!ially %overn+en! "#n(!ion) #(' a b#ildin% road and delivery o" bai( ervi(e) b#! aloin(l#de !'oe p#rpoe dei%ned !o pro+o!e o(ial *#!i(e8 T'#) p#bli( +oney +ay no& be #ed "or

!'e relo(a!ion o" ille%al e!!ler) lo&$(o! 'o#in% and #rban or a%rarian re"or+8 W'ile !'e (a!e%orie o"

&'a! +ay (on!i!#!e a p#bli( p#rpoe are (on!in#ally e1pandin% in li%'! o" !'e e1panion o"%overn+en! "#n(!ion) !'e in'eren! re,#ire+en! !'a! !a1e (an only be e1a(!ed "or a p#bli( p#rpoe !ill

!and8 P#bli( p#rpoe i !'e 'ear! o" a !a1 la&8 W'en a !a1 la& i only a +a !o e1a(! "#nd "ro+ !'e

p#bli( &'en i! !r#e in!en! i !o %ive #nd#e bene"i! and advan!a%e !o a priva!e en!erprie) !'a! la& &ill

no! a!i"y !'e re,#ire+en! o" -p#bli( p#rpoe89 T'e p#rpoe o" a la& i eviden! "ro+ i! !e1! orin"erable "ro+ o!'er e(ondary o#r(e8 ere) We a%ree &i!' !'e RTC and !'a! CA !'a! !'e levy

i+poed #nder LOI No8 /7=< &a no! "or a p#bli( p#rpoe8

Same; /t is utterly re"ulsive that a tax law would ex"ressly name a "rivate com"any as the ultimate

#eneficiary of the taxes to #e levied from the "u#lici! i a (lear (ae o" (rony (api!ali+8I! i a bai(

r#le o" !a!#!ory (on!r#(!ion !'a! !'e !e1! o" a !a!#!e 'o#ld be %iven a li!eral +eanin%8 In !'i (ae) !'e!e1! o" !'e LOI i plain !'a! !'e levy &a i+poed in order !o raie (api!al "or PPI8 T'e "ra+er o" !'e

LOI did no! even 'ide !'e inidio# p#rpoe o" !'e la&8 T'ey &ere (avalier eno#%' !o na+e PPI a !'e

#l!i+a!e bene"i(iary o" !'e !a1e levied #nder !'e LOI8 We "ind i! #!!erly rep#live !'a! a !a1 la& &o#ld

e1prely na+e a priva!e (o+pany a !'e #l!i+a!e bene"i(iary o" !'e !a1e !o be levied "ro+ !'e p#bli(8T'i i a (lear (ae o" (rony (api!ali+8

'olice 'ower; %est for :alid xercise; Letter of /nstruction )L5/* o. 67D is invalid #ecause it did not"romote "u#lic interest.Even i" We (onider LOI No8 /=< ena(!ed #nder !'e poli(e po&er o" !'e

S!a!e) i! &o#ld !ill be invalid "or "ailin% !o (o+ply &i!' !'e !e! o" -la&"#l #b*e(!9 and -la&"#l

+ean89 #ripr#den(e !a!e !'e !e! a "ollo&: ./0 !'e in!ere! o" !'e p#bli( %enerally) a di!in%#i'ed"ro+ !'oe o" par!i(#lar (la) re,#ire i! e1er(ie2 and .30 !'e +ean e+ployed are reaonably

ne(eary "or !'e a((o+pli'+en! o" !'e p#rpoe and no! #nd#ly oppreive #pon individ#al8 @or !'e

a+e reaon a di(#ed) LOI No8 /=< i invalid be(a#e i! did no! pro+o!e p#bli( in!ere!8 T'e la&&a ena(!ed !o %ive #nd#e advan!a%e !o a priva!e (orpora!ion8

Statutes; 5"erative ?act &octrine; %he eneral rule is that an unconstitutional law is voidit

"roduces no rihts( im"oses no duties and affords no "rotection( it has no leal effect( and it is( in lealcontem"lation( ino"erative as if it has not #een "assed.T'e %eneral r#le i !'a! an #n(on!i!#!ional

la& i void8 I! prod#(e no ri%'!) i+poe no d#!ie and a""ord no pro!e(!ion8 I! 'a no le%al e""e(!8 I!

i) in le%al (on!e+pla!ion) inopera!ive a i" i! 'a no! been paed8 Bein% void) @er!ip'il i no! re,#ired!o pay !'e levy8 All levie paid 'o#ld be re"#nded in a((ordan(e &i!' !'e %eneral (ivil (ode prin(iple

a%ain! #n*#! enri('+en!8 T'e %eneral r#le i #ppor!ed by Ar!i(le ? o" !'e Civil Code) &'i(' provide:

ART8 ?8 La& are repealed only by #be,#en! one) and !'eir viola!ion or non$obervan(e 'all no! bee1(#ed by di#e or (#!o+ or pra(!i(e !o !'e (on!rary8 W'en !'e (o#r! de(lare a la& !o be

in(oni!en! &i!' !'e Con!i!#!ion) !'e "or+er 'all be void and !'e la!!er 'all %overn8


11/63

Same; Same;


12/63

#b!ra(! "ro+ !'e VAT ('ar%ed on i! ale or o#!p#! !'e VAT paid on i! p#r('ae) inp#! and i+por!8

I! &a only in /?) &'en Preiden! Cora;on C8 A,#ino i#ed E1$e(#!ive Order No8 3?6) !'a! !'e VAT

y!e+ &a ra!ionali;ed by i+poin% a +#l!i$!a%e !a1 ra!e o" > or /> on all ale #in% !'e -!a1

(redi! +e!'od89 E8O8 No8 3?6 &a "ollo&ed by R8A8 No8 ??/= or !'e E1panded VAT La&) R8A8 No837/ or !'e I+proved VAT La&) R8A8 No8 737 or !'e Ta1 Re"or+ A(! o" /?) and "inally) !'e

preen!ly belea%#ered R8A8 No8 66?) alo re"erred !o by reponden! a !'e VAT Re"or+ A(!8

Conress; 2icameral Conference Committee; Leislative Rules; /t should #e #orne in mind that the

"ower of internal reulation and disci"line are intrinsic in any leislative #ody( and "ursuant to this

inherent constitutional "ower to "romulate and im"lement its own rules of "rocedure( the res"ectiverules of each house of Conress "rovided for the creation of a 2icameral Conference Committee.

Pe!i!ioner no& beee(' !'e Co#r! !o de"ine !'e po&er o" !'e Bi$(a+eral Con"eren(e Co++i!!ee8 I!

'o#ld be borne in +ind !'a! !'e po&er o" in!ernal re%#la!ion and di(ipline are in!rini( in anyle%ila!ive body "or) a #nerrin%ly el#(ida!ed by #!i(e S!ory) -4i5" !'e po&er did no! e1i!) i! &o#ld be

#!!erly i+pra(!i(able !o !rana(! !'e b#ine o" !'e na!ion) ei!'er a! all) or a! lea! &i!' de(en(y)

delibera!ion) and order89 T'#) Ar!i(le VI) Se(!ion /= .60 o" !'e Con!i!#!ion provide !'a! -ea(' o#e

+ay de!er+ine !'e r#le o" i! pro(eed$in%89 P#r#an! !o !'i in'eren! (on!i!#!ional po&er !opro+#l%a!e and i+ple+en! i! o&n r#le o" pro(ed#re) !'e repe(!ive r#le o" ea(' 'o#e o" Con%re

provided "or !'e (rea!ion o" a Bi(a+eral Con"eren(e Co++i!!ee8

Same; Same; Same; Se"aration of 'owers; Judicial Review; Conress is the #est $ude of how it

should conduct its own #usiness ex"editiously and in the most orderly manner; /f a chane is desired in

the "ractice Eof the 2icameral Conference CommitteeF it must #e souht in Conress since thisquestion is not covered #y any constitutional "rovision #ut is only an internal rule of each house; ven

the ex"anded $urisdiction of the Su"reme Court cannot a""ly to questions reardin only the internal

o"eration of Conress( thus( the Court is wont to deny a review of the internal "roceedins of a coB

equal #ranch of overnment.Ain !o !'e @aria (ae) !'e preen! pe!i!ion alo raie an i#ere%ardin% !'e a(!ion !aen by !'e (on"eren(e (o++i!!ee on +a!!er re%ardin% Con%re (o+plian(e

&i!' i! o&n in!ernal r#le8 A !a!ed earlier) one o" !'e +o! bai( and in'eren! po&er o" !'e le%ila!#re

i !'e po&er !o "or+#la!e r#le "or i! pro(eedin% and !'e di(ipline o" i! +e+ber8 Con%re i !'ebe! *#d%e o" 'o& i! 'o#ld (ond#(! i! o&n b#ine e1pedi!io#ly and in !'e +o! orderly +anner8 I! i

alo !'e ole (on(ern o" Con%re !o in!ill di(ipline a+on% !'e +e+ber o" i! (on"eren(e (o++i!!ee

i" i! believe !'a! aid +e+ber viola!ed any o" i! r#le o" pro(eedin%8 Even !'e e1panded *#ridi(!iono" !'i Co#r! (anno! apply !o ,#e!ion re%ardin% only !'e in!ernal opera!ion o" Con%re) !'#) !'e

Co#r! i &on! !o deny a revie& o" !'e in!ernal pro(eedin% o" a (o$e,#al bran(' o" %overn+en!8

Joreover) a "ar ba( a /7 or +ore !'an !en year a%o) in !'e (ae o" Tolen!ino v8 Se(re!ary o"@inan(e) !'e Co#r! already +ade !'e prono#n(e+en! !'a! -4i5" a ('an%e i deired in !'e pra(!i(e 4o" !'e

Bi(a+eral Con"eren(e Co++i!!ee5 i! +#! be o#%'! in Con%re in(e !'i ,#e!ion i no! (overed by

any (on!i!#!ional proviion b#! i only an in!ernal r#le o" ea(' 'o#e89To da!e) Con%re 'a no! een i!

"i! !o +ae #(' ('an%e adver!ed !o by !'e Co#r!8 I! ee+) !'ere"ore) !'a! Con%re "ind !'e pra(!i(eo" !'e bi(a+eral (on"eren(e (o++i!!ee !o be very #e"#l "or p#rpoe o" pro+p! and e""i(ien!

le%ila!ive a(!ion8

Same; Same; Same; =ords and 'hrases; %he term settle! is synonymous to reconcile! and

harmoni1e!; %o reconcile or harmoni1e disareein "rovisions( the 2icameral Conference Committee

may then )a* ado"t the s"ecific "rovisions of either the Gouse #ill or Senate #ill( )#* decide that neither"rovisions in the Gouse #ill or the "rovisions in the Senate #ill would #e carried into the final form of

the #ill( and4or )c* try to arrive at a com"romise #etween the disareein "rovisions.Under !'e

proviion o" bo!' !'e R#le o" !'e o#e o" Repreen!a!ive and Sena!e R#le) !'e Bi(a+eral


13/63

Con"eren(e Co++i!!ee i +anda!ed !o e!!le !'e di""eren(e be!&een !'e dia%reein% proviion in !'e

o#e bill and !'e Sena!e bill8 T'e !er+ -e!!le9 i ynony+o# !o -re(on(ile9 and -'ar+oni;e89 To

re(on(ile or 'ar+oni;e dia%reein% proviion) !'e Bi(a+eral Con"eren(e Co++i!!ee +ay !'en .a0

adop! !'e pe(i"i( proviion o" ei!'er !'e o#e bill or Sena!e bill) .b0 de(ide !'a! nei!'er proviion in!'e o#e bill or !'e proviion in !'e Sena!e bill &o#ld be (arried in!o !'e "inal "or+ o" !'e bill) andFor

.(0 !ry !o arrive a! a (o+pro+ie be!&een !'e dia%reein% proviion8

Same; Same; Same; /t is within the "ower of a conference committee to include in its re"ort an entirely

new "rovision that is not found either in the Gouse #ill or in the Senate #illif the committee can

"ro"ose an amendment consistin of one or two "rovisions( there is no reason why it cannot "ro"oseseveral "rovisions( collectively considered as an amendment in the nature of a su#stitute(! so lon as

such amendment is ermane to the su#$ect of the #ills #efore the committee.All !'e ('an%e or

+odi"i(a!ion +ade by !'e Bi(a+eral Con"eren(e Co++i!!ee &ere %er+ane !o #b*e(! o" !'eproviion re"erred !o i! "or re(on(ilia!ion8 S#(' bein% !'e (ae) !'e Co#r! doe no! ee any %rave ab#e

o" di(re!ion a+o#n!in% !o la( or e1(e o" *#ridi(!ion (o++i!!ed by !'e Bi(a+eral Con"eren(e

Co++i!!ee8 In !'e earlier (ae o" P'ilippine #d%e Ao(ia!ion v8 Prado and Tolen!ino v8 Se(re!ary

o" @inan(e) !'e Co#r! re(o%ni;ed !'e lon%!andin% le%ila!ive pra(!i(e o" %ivin% aid (on"eren(e(o++i!!ee a+ple la!i!#de "or (o+pro+iin% di""eren(e be!&een !'e Sena!e and !'e o#e8 T'#) in !'e

Tolen!ino (ae) i! &a 'eld !'a!: 8 8 8 i! i &i!'in !'e po&er o" a (on"eren(e (o++i!!ee !o in(l#de in i!

repor! an en!irely ne& proviion !'a! i no! "o#nd ei!'er in !'e o#e bill or in !'e Sena!e bill8 I" !'e(o++i!!ee (an propoe an a+end+en! (oni!in% o" one or !&o proviion) !'ere i no reaon &'y i!

(anno! propoe everal proviion) (olle(!ively (onidered a an -a+end+en! in !'e na!#re o" a

#b!i!#!e)9 o lon% a #(' a+end+en! i %er+ane !o !'e #b*e(! o" !'e bill be"ore !'e (o++i!!ee8A"!er all) i! repor! &a no! "inal b#! needed !'e approval o" bo!' 'o#e o" Con%re !o be(o+e valid a

an a(! o" !'e le%ila!ive depar!+en!8 T'e ('ar%e !'a! in !'i (ae !'e Con"eren(e Co++i!!ee a(!ed a a

!'ird le%ila!ive ('a+ber i !'# &i!'o#! any bai8

Same; Same; Same; o Amendment! Rule; %he noBamendBment rule! refers only to the "rocedure

to #e followed #y each house of Conress with reard to #ills initiated in each of said res"ective

houses( #efore said #ill is transmitted to the other house for its concurrence or amendmentArt. :/(Sec. + )+* of the Constitution cannot #e ta0en to mean that the introduction #y the 2icameral

Conference Committee of amendments and modifications to disareein "rovisions in #ills that have

#een acted u"on #y #oth houses of Conress is "rohi#ited.T'e Co#r! rei!era!e 'ere !'a! !'e -no$a+end+en! r#le9 re"er only !o !'e pro(ed#re !o be "ollo&ed by ea(' 'o#e o" Con%re &i!' re%ard !o

bill ini!ia!ed in ea(' o" aid repe(!ive 'o#e) be"ore aid bill i !ran+i!!ed !o !'e o!'er 'o#e "or i!

(on(#rren(e or a+end+en!8 Verily) !o (on!r#e aid proviion in a &ay a !o pro(ribe any "#r!'er('an%e !o a bill a"!er one 'o#e 'a vo!ed on i! &o#ld lead !o ab#rdi!y a !'i &o#ld +ean !'a! !'e

o!'er 'o#e o" Con%re &o#ld be deprived o" i! (on!i!#!ional po&er !o a+end or in!rod#(e ('an%e

!o aid bill8 T'#) Ar!8 VI) Se(8 3= .30 o" !'e Con!i!#!ion (anno! be !aen !o +ean !'a! !'e in!rod#(!ion

by !'e Bi(a+eral Con"eren(e Co++i!!ee o" a+end+en! and +odi"i(a!ion !o dia%reein% proviion inbill !'a! 'ave been a(!ed #pon by bo!' 'o#e o" Con%re i pro'ibi!ed8

Same; 5riin of 2ills; Revenue 2ills; Since there is no question that the revenue #ill oriinated in theGouse of Re"resentatives( the Senate was actin within its constitutional "ower to introduce

amendments to the Gouse #ill when it included "rovisions in Senate 2ill o. 67D, amendin cor"orate

income taxes( "ercentae( excise and franchise taxesArticle :/( Section +H of the Constitution doesnot contain any "rohi#ition or limitation on the extent of the amendments that may #e introduced #y the

Senate to the Gouse revenue #ill.In !'e preen! (ae) pe!i!ioner ad+i! !'a! i! &a indeed o#e Bill

No8 6


14/63

!'e val#e$added !a18 Upon !ran+i!!al o" aid o#e bill !o !'e Sena!e) !'e Sena!e (a+e o#! &i!'

Sena!e Bill No8 / propoin% a+end+en! no! only !o NIRC proviion on !'e val#e$added !a1 b#!

alo a+end+en! !o NIRC proviion on o!'er ind o" !a1e8 I !'e in!rod#(!ion by !'e Sena!e o"

proviion no! dealin% dire(!ly &i!' !'e val#e$added !a1) &'i(' i !'e only ind o" !a1 bein% a+endedin !'e o#e bill) !ill &i!'in !'e p#rvie& o" !'e (on!i!#!ional proviion a#!'ori;in% !'e Sena!e !o

propoe or (on(#r &i!' a+end+en! !o a reven#e bill !'a! ori%ina!ed "ro+ !'e o#eQ Sin(e !'ere

i no ,#e!ion !'a! !'e reven#e bill e1(l#ively ori%ina!ed in !'e o#e o" Repreen!a!ive) !'e Sena!e&a a(!in% &i!'in i! (on!i!#!ional po&er !o in!rod#(e a+end+en! !o !'e o#e bill &'en i! in(l#ded

proviion in Sena!e Bill No8 / a+endin% (orpora!e in(o+e !a1e) per(en!a%e) e1(ie and "ran('ie

!a1e8 Verily) Ar!i(le VI) Se(!ion 37 o" !'e Con!i!#!ion doe no! (on!ain any pro'ibi!ion or li+i!a!ionon !'e e1!en! o" !'e a+end+en! !'a! +ay be in!rod#(ed by !'e Sena!e !o !'e o#e reven#e bill8

Same; Same; Same; %he main "ur"ose of the #ills emanatin from the Gouse of Re"resentatives is to

#rin in si1ea#le revenues for the overnment to su""lement our country3s serious financial "ro#lems(and im"rove tax administration and control of the lea0aes in revenues from income taxes and valueB

added taxes( and the Senate( a""roachin the measures from the "oint of national "ers"ective( can

introduce amendments within the "ur"oses of those #ills( li0e "rovidin ways that would soften theim"act of the :A% measure on the consumer.T'e +ain p#rpoe o" !'e bill e+ana!in% "ro+ !'e o#e

o" Repreen!a!ive i !o brin% in i;eable reven#e "or !'e %overn+en! !o #pple+en! o#r (o#n!ry

erio# "inan(ial proble+) and i+prove !a1 ad+ini!ra!ion and (on!rol o" !'e leaa%e in reven#e"ro+ in(o+e !a1e and val#e$added !a1e8 A !'ee 'o#e bill &ere !ran+i!!ed !o !'e Sena!e) !'e

la!!er) approa('in% !'e +ea#re "ro+ !'e poin! o" na!ional perpe(!ive) (an in!rod#(e a+end+en!

&i!'in !'e p#rpoe o" !'oe bill8 I! (an provide "or &ay !'a! &o#ld o"!en !'e i+pa(! o" !'e VAT+ea#re on !'e (on#+er) i8e8) by di!rib#!in% !'e b#rden a(ro all e(!or in!ead o" p#!!in% i! en!irely

on !'e 'o#lder o" !'e (on#+er8

Same; Same; Same; ermaneness Rule; %he amendments made on "rovisions in the tax on income ofcor"orations are ermane to the "ur"ose of the house #ills which is to raise revenues for the

overnment( and the sections referrin to other "ercentae and excise taxes are ermane to the reforms

to the :A% system( as these sections would cushion the effects of :A% on consumers.A !'e Co#r! 'aaid) !'e Sena!e (an propoe a+end+en! and in "a(!) !'e a+end+en! +ade on proviion in !'e !a1 on

in(o+e o" (orpora!ion are %er+ane !o !'e p#rpoe o" !'e 'o#e bill &'i(' i !o raie reven#e "or !'e

%overn+en!8 Lie&ie) !'e Co#r! "ind !'e e(!ion re"errin% !o o!'er per(en!a%e and e1(ie !a1e%er+ane !o !'e re"or+ !o !'e VAT y!e+) a !'ee e(!ion &o#ld (#'ion !'e e""e(! o" VAT on

(on#+er8 Coniderin% !'a! (er!ain %ood and ervi(e &'i(' &ere #b*e(! !o per(en!a%e !a1 and

e1(ie !a1 &o#ld no lon%er be VAT$e1e+p!) !'e (on#+er &o#ld be b#rdened +ore a !'ey &o#ld bepayin% !'e VAT in addi!ion !o !'ee !a1e8 T'#) !'ere i a need !o a+end !'ee e(!ion !o o"!en !'e

i+pa(! o" VAT8

Se"aration of 'owers; &eleation of 'owers; A loical corollary to the doctrine of se"aration of"owers is the "rinci"le of nonBdeleation of "owers( a doctrine #ased on the ethical "rinci"le that such

as deleated "ower constitutes not only a riht #ut a duty to #e "erformed #y the deleate throuh the

instrumentality of his own $udment and not throuh the intervenin mind of another.T'e prin(iple o"epara!ion o" po&er ordain !'a! ea(' o" !'e !'ree %rea! bran('e o" %overn+en! 'a e1(l#ive

(o%ni;an(e o" and i #pre+e in +a!!er "allin% &i!'in i! o&n (on!i!#!ionally allo(a!ed p'ere8 A

lo%i(al (orollary !o !'e do(!rine o" epara!ion o" po&er i !'e prin(iple o" non$dele%a!ion o" po&er) ae1preed in !'e La!in +a1i+: po!e!a dele%a!a non dele%ari po!e! &'i(' +ean -&'a! 'a been

dele%a!ed) (anno! be dele%a!ed89 T'i do(!rine i baed on !'e e!'i(al prin(iple !'a! #(' a dele%a!ed

po&er (on!i!#!e no! only a ri%'! b#! a d#!y !o be per"or+ed by !'e dele%a!e !'ro#%' !'e


15/63

in!r#+en!ali!y o" 'i o&n *#d%+en! and no! !'ro#%' !'e in!ervenin% +ind o" ano!'er8

Same; Same; xce"tion to the onB&eleation of Leislative 'owers; =ords and 'hrases; %he "owers

which Conress is "rohi#ited from deleatin are those which are strictly( or inherently andexclusively( leislativea""ertainin exclusively to the leislative de"artment; 'urely leislative

"ower has #een descri#ed as the authority to ma0e a com"lete lawcom"lete as to the time when it

shall ta0e effect and as to whom it shall #e a""lica#leand to determine the ex"ediency of itsenactment; /t is the nature of the "ower( and not the lia#ility of its use or the manner of its exercise(

which determines the validity of its deleation.Wi!' repe(! !o !'e Le%ila!#re) Se(!ion / o" Ar!i(le

VI o" !'e Con!i!#!ion provide !'a! -!'e Le%ila!ive po&er 'all be ve!ed in !'e Con%re o" !'eP'ilippine &'i(' 'all (oni! o" a Sena!e and a o#e o" Repreen!a!ive89 T'e po&er &'i('

Con%re i pro'ibi!ed "ro+ dele%a!in% are !'oe &'i(' are !ri(!ly) or in'eren!ly and e1(l#ively)

le%ila!ive8 P#rely le%ila!ive po&er) &'i(' (an never be dele%a!ed) 'a been de(ribed a !'e a#!'ori!y!o +ae a (o+ple!e la&(o+ple!e a !o !'e !i+e &'en i! 'all !ae e""e(! and a !o &'o+ i! 'all be

appli(ableand !o de!er+ine !'e e1pedien(y o" i! ena(!+en!8 T'#) !'e r#le i !'a! in order !'a! a (o#r!

+ay be *#!i"ied in 'oldin% a !a!#!e #n(on!i!#!ional a a dele%a!ion o" le%ila!ive po&er) i! +#! appear

!'a! !'e po&er involved i p#rely le%ila!ive in na!#re!'a! i) one apper!ainin% e1(l#ively !o !'ele%ila!ive depar!+en!8 I! i !'e na!#re o" !'e po&er) and no! !'e liabili!y o" i! #e or !'e +anner o" i!

e1er(ie) &'i(' de!er+ine !'e validi!y o" i! dele%a!ion8 None!'ele) !'e %eneral r#le barrin%

dele%a!ion o" le%ila!ive po&er i #b*e(! !o !'e "ollo&in% re(o%ni;ed li+i!a!ion or e1(ep!ion: ./0Dele%a!ion o" !ari"" po&er !o !'e Preiden! #nder Se(!ion 3 .30 o" Ar!i(le VI o" !'e Con!i!#!ion2 .30

Dele%a!ion o" e+er%en(y po&er !o !'e Preiden! #nder Se(!ion 36 .30 o" Ar!i(le VI o" !'e Con!i!#!ion2

.60 Dele%a!ion !o !'e people a! lar%e2 .70 Dele%a!ion !o lo(al %overn+en!2 and .


16/63

!'e po&er !o de!er+ine (er!ain "a(! or (ondi!ion) or !'e 'appenin% o" (on!in%en(ie) on &'i(' !'e

opera!ion o" a !a!#!e i) by i! !er+) +ade !o depend) b#! !'e le%ila!#re +#! pre(ribe #""i(ien!

!andard) poli(ie or li+i!a!ion on !'eir a#!'ori!y8 W'ile !'e po&er !o !a1 (anno! be dele%a!ed !o

e1e(#!ive a%en(ie) de!ail a !o !'e en"or(e+en! and ad+ini!ra!ion o" an e1er(ie o" #(' po&er +aybe le"! !o !'e+) in(l#din% !'e po&er !o de!er+ine !'e e1i!en(e o" "a(! on &'i(' i! opera!ion depend8

T'e ra!ionale "or !'i i !'a! !'e preli+inary a(er!ain+en! o" "a(! a bai "or !'e ena(!+en! o"

le%ila!ion i no! o" i!el" a le%ila!ive "#n(!ion) b#! i i+ply an(illary !o le%ila!ion8 T'#) !'e d#!y o"(orrela!in% in"or+a!ion and +ain% re(o++enda!ion i !'e ind o" #bidiary a(!ivi!y &'i(' !'e

le%ila!#re +ay per"or+ !'ro#%' i! +e+ber) or &'i(' i! +ay dele%a!e !o o!'er !o per"or+8 In!elli%en!

le%ila!ion on !'e (o+pli(a!ed proble+ o" +odern o(ie!y i i+poible in !'e aben(e o" a((#ra!ein"or+a!ion on !'e par! o" !'e le%ila!or) and any reaonable +e!'od o" e(#rin% #(' in"or+a!ion i

proper8 T'e Con!i!#!ion a a (on!in#o#ly opera!ive ('ar!er o" %overn+en! doe no! re,#ire !'a!

Con%re "ind "or i!el" every "a(! #pon &'i(' i! deire !o bae le%ila!ive a(!ion or !'a! i! +ae "ori!el" de!ailed de!er+ina!ion &'i(' i! 'a de(lared !o be prere,#ii!e !o appli(a!ion o" le%ila!ive poli(y

!o par!i(#lar "a(! and (ir(#+!an(e i+poible "or Con%re i!el" properly !o inve!i%a!e8

Same; Same; Same; Statutory Construction; %he case #efore the Court is not a deleation of leislative

"owerit is sim"ly a deleation of ascertainment of facts u"on which enforcement and administration

of the increase rate under the law is continent; o discretion would #e exercised #y the 'resident;%he use of the word shall! connotes a mandatory order.T'e (ae be"ore !'e Co#r! i no! a

dele%a!ion o" le%ila!ive po&er8 I! i i+ply a dele%a!ion o" a(er!ain+en! o" "a(! #pon &'i('

en"or(e+en! and ad+ini!ra!ion o" !'e in(reae ra!e #nder !'e la& i (on!in%en!8 T'e le%ila!#re 'a+ade !'e opera!ion o" !'e /3 ra!e e""e(!ive an#ary /) 3>>=) (on!in%en! #pon a pe(i"ied "a(! or

(ondi!ion8 I! leave !'e en!ire opera!ion or non$opera!ion o" !'e /3 ra!e #pon "a(!#al +a!!er o#!ide

o" !'e (on!rol o" !'e e1e(#!ive8 No di(re!ion &o#ld be e1er(ied by !'e Preiden!8 i%'li%'!in% !'e

aben(e o" di(re!ion i !'e "a(! !'a! !'e &ord 'all i #ed in !'e (o++on provio8 T'e #e o" !'e &ord'all (onno!e a +anda!ory order8 I! #e in a !a!#!e deno!e an i+pera!ive obli%a!ion and i

in(oni!en! &i!' !'e idea o" di(re!ion8 W'ere !'e la& i (lear and #na+bi%#o#) i! +#! be !aen !o

+ean e1a(!ly &'a! i! ay) and (o#r! 'ave no ('oi(e b#! !o ee !o i! !'a! !'e +anda!e i obeyed8 T'#) i!i !'e +ini!erial d#!y o" !'e Preiden! !o i++edia!ely i+poe !'e /3 ra!e #pon !'e e1i!en(e o" any o"

!'e (ondi!ion pe(i"ied by Con%re8 T'i i a d#!y &'i(' (anno! be evaded by !'e Preiden!8

Ina+#(' a !'e la& pe(i"i(ally #e !'e &ord 'all) !'e e1er(ie o" di(re!ion by !'e Preiden! doeno! (o+e in!o play8 I! i a (lear dire(!ive !o i+poe !'e /3 VAT ra!e &'en !'e pe(i"ied (ondi!ion are

preen!8 T'e !i+e o" !ain% in!o e""e(! o" !'e /3 VAT ra!e i baed on !'e 'appenin% o" a (er!ain

pe(i"ied (on!in%en(y) or #pon !'e a(er!ain+en! o" (er!ain "a(! or (ondi!ion by a peron or bodyo!'er !'an !'e le%ila!#re i!el"8

Same; Same; 'residency; Control 'ower; &octrine of Iualified 'olitical Aency; =hen one s"ea0s of

the Secretary of ?inance as the alter eo of the 'resident( it sim"ly means that as head of the&e"artment of ?inance he is the assistant and aent of the Chief xecutiveas such( he occu"ies a

"olitical "osition and holds office in an advisory ca"acity( and( in the lanuae of %homas Jefferson(

should #e of the 'residents #osom confidence! and( in the lanuae of AttorneyBeneral Cushin( issu#$ect to the direction of the 'resident.! W'en one pea o" !'e Se(re!ary o" @inan(e a !'e al!er

e%o o" !'e Preiden!) i! i+ply +ean !'a! a 'ead o" !'e Depar!+en! o" @inan(e 'e i !'e ai!an! and

a%en! o" !'e C'ie" E1e(#!ive8 T'e +#l!i"ario# e1e(#!ive and ad+ini!ra!ive "#n(!ion o" !'e C'ie"E1e(#!ive are per"or+ed by and !'ro#%' !'e e1e(#!ive depar!+en!) and !'e a(! o" !'e e(re!arie o"

#(' depar!+en!) #(' a !'e Depar!+en! o" @inan(e) per"or+ed and pro+#l%a!ed in !'e re%#lar (o#re

o" b#ine) are) #nle diapproved or reproba!ed by !'e C'ie" E1e(#!ive) pre#+p!ively !'e a(! o" !'e


17/63

C'ie" E1e(#!ive8 T'e Se(re!ary o" @inan(e) a #(') o((#pie a poli!i(al poi!ion and 'old o""i(e in an

adviory (apa(i!y) and) in !'e lan%#a%e o" T'o+a e""eron) -'o#ld be o" !'e Preiden! boo+

(on"iden(e9 and) in !'e lan%#a%e o" A!!orney$General C#'in%) i -#b*e(! !o !'e dire(!ion o" !'e

Preiden!89

Same; Same; Same; Same; Same; /n the "resent case( in ma0in his recommendation to the 'resident

on the existence of either of the two conditions( the Secretary of ?inance is not actin as the alter eoof the 'resident or even her su#ordinate( and he is not su#$ect to the "ower of control and direction of

the 'residenthe is actin as the aent of the leislative de"artment( to determine and declare the

event u"on which its ex"ressed will is to ta0e effect( #ecomin the means or tool #y which leislative"olicy is determined and im"lemented.In !'e preen! (ae) in +ain% 'i re(o++enda!ion !o !'e

Preiden! on !'e e1i!en(e o" ei!'er o" !'e !&o (ondi!ion) !'e Se(re!ary o" @inan(e i no! a(!in% a !'e

al!er e%o o" !'e Preiden! or even 'er #bordina!e8 In #(' in!an(e) 'e i no! #b*e(! !o !'e po&er o"(on!rol and dire(!ion o" !'e Preiden!8 e i a(!in% a !'e a%en! o" !'e le%ila!ive depar!+en!) !o

de!er+ine and de(lare !'e even! #pon &'i(' i! e1preed &ill i !o !ae e""e(!8 T'e Se(re!ary o"

@inan(e be(o+e !'e +ean or !ool by &'i(' le%ila!ive poli(y i de!er+ined and i+ple+en!ed)

(oniderin% !'a! 'e poee all !'e "a(ili!ie !o %a!'er da!a and in"or+a!ion and 'a a +#(' broaderperpe(!ive !o properly eval#a!e !'e+8 i "#n(!ion i !o %a!'er and (olla!e !a!i!i(al da!a and o!'er

per!inen! in"or+a!ion and veri"y i" any o" !'e !&o (ondi!ion laid o#! by Con%re i preen!8 i

peronali!y in #(' in!an(e i in reali!y b#! a pro*e(!ion o" !'a! o" Con%re8 T'#) bein% !'e a%en! o"Con%re and no! o" !'e Preiden!) !'e Preiden! (anno! al!er or +odi"y or n#lli"y) or e! aide !'e

"indin% o" !'e Se(re!ary o" @inan(e and !o #b!i!#!e !'e *#d%+en! o" !'e "or+er "or !'a! o" !'e la!!er8

Same; Same; Conress does not a#dicate its functions or unduly deleate "ower when it descri#es

what $o# must #e done( who must do it( and what is the sco"e of his authorityin our com"lex

economy that is frequently the only way in which the leislative "rocess can o forward.Con%rei+ply %ran!ed !'e Se(re!ary o" @inan(e !'e a#!'ori!y !o a(er!ain !'e e1i!en(e o" a "a(!) na+ely)

&'e!'er by De(e+ber 6/) 3>>>=8 T'ere i no #nd#e dele%a!ion o" le%ila!ive po&er b#! only o" !'e

di(re!ion a !o !'e e1e(#!ion o" a la&8 T'i i (on!i!#!ionally per+iible8 Con%re doe no! abdi(a!e

i! "#n(!ion or #nd#ly dele%a!e po&er &'en i! de(ribe &'a! *ob +#! be done) &'o +#! do i!) and&'a! i !'e (ope o" 'i a#!'ori!y2 in o#r (o+ple1 e(ono+y !'a! i "re,#en!ly !'e only &ay in &'i(' !'e

le%ila!ive pro(e (an %o "or&ard8

Same; Same; %axation; :alueBAdded %ax; %he intent and will to increase the :A% rate to 6+- camefrom Conress and the tas0 of the 'resident is to sim"ly execute the leislative "olicy.A !o !'e

ar%#+en! o" pe!i!ioner ABAADA GURO Par!y Li!) e! al8 !'a! dele%a!in% !o !'e Preiden! !'e

le%ila!ive po&er !o !a1 i (on!rary !o !'e prin(iple o" rep#bli(ani+) !'e a+e deerve (an!(onidera!ion8 Con%re did no! dele%a!e !'e po&er !o !a1 b#! !'e +ere i+ple+en!a!ion o" !'e la&8 T'e

in!en! and &ill !o in(reae !'e VAT ra!e !o /3 (a+e "ro+ Con%re and !'e !a o" !'e Preiden! i !o

i+ply e1e(#!e !'e le%ila!ive poli(y8 T'a! Con%re ('oe !o do o in #(' a +anner i no! &i!'in !'eprovin(e o" !'e Co#r! !o in,#ire in!o) i! !a bein% !o in!erpre! !'e la&8


18/63

Judicial Review; %he Court does not rule on alleations which are manifestly con$ectural( as these may

not exist at allthe Court deals with facts( not fancies( on realities( not a""earances.T'e inin#a!ion

by pe!i!ioner Pi+en!el) e! al8 !'a! !'e Preiden! 'a a+ple po&er !o (a#e) in"l#en(e or (rea!e !'e

(ondi!ion !o brin% abo#! ei!'er or bo!' !'e (ondi!ion pre(eden! doe no! deerve any +eri! a !'iar%#+en! i 'i%'ly pe(#la!ive8 T'e Co#r! doe no! r#le on alle%a!ion &'i(' are +ani"e!ly

(on*e(!#ral) a !'ee +ay no! e1i! a! all8 T'e Co#r! deal &i!' "a(!) no! "an(ie2 on reali!ie) no!

appearan(e8 W'en !'e Co#r! a(! on appearan(e in!ead o" reali!ie) *#!i(e and la& &ill be 'or!$lived8

Same; Se"aration of 'owers; Statutory Construction; Rewritin the law is a for#idden round that

only Conress may tread u"on. Under !'e (o++on provio o" Se(!ion 7) < and = o" R8A8 No8 66?)

i" any o" !'e !&o (ondi!ion e! "or!' !'erein are a!i"ied) !'e Preiden! 'all in(reae !'e VAT ra!e !o/38 T'e proviion o" !'e la& are (lear8 I! doe no! provide "or a re!#rn !o !'e /> ra!e nor doe i!

e+po&er !'e Preiden! !o o rever! i") a"!er !'e ra!e i in(reaed !o /3) !'e VAT (olle(!ion %oe belo&

!'e 3 7F< o" !'e GDP o" !'e previo# year or !'a! !'e na!ional %overn+en! de"i(i! a a per(en!a%e o"

GDP o" !'e previo# year doe no! e1(eed / /F38 T'ere"ore) no !a!#!ory (on!r#(!ion or in!erpre!a!ioni needed8 Nei!'er (an (ondi!ion or li+i!a!ion be in!rod#(ed &'ere none i provided "or8 Re&ri!in%

!'e la& i a "orbidden %ro#nd !'a! only Con%re +ay !read #pon8

%axation; :alueBAdded %ax; ?iscal Adequacy; =ords and 'hrases; %he "rinci"le of fiscal adequacy as

a characteristic of a sound tax system( which was oriinally stated #y Adam Smith in his Canons of

%axation( sim"ly means that sources of revenues must #e adequate to meet overnment ex"endituresand their variations. T'a! !'e "ir! (ondi!ion a+o#n! !o an in(en!ive !o !'e Preiden! !o in(reae !'e

VAT (olle(!ion doe no! render i! #n(on!i!#!ional o lon% a !'ere i a p#bli( p#rpoe "or &'i(' !'e la&

&a paed) &'i(' in !'i (ae) i +ainly !o raie reven#e8 In "a(!) "i(al ade,#a(y di(!a!ed !'e need "or

a raie in reven#e8 T'e prin(iple o" "i(al ade,#a(y a a ('ara(!eri!i( o" a o#nd !a1 y!e+ &aori%inally !a!ed by Ada+ S+i!' in 'i Canon o" Ta1a!ion ./??=0) a: IV8 Every !a1 o#%'! !o be o

(on!rived a bo!' !o !ae o#! and !o eep o#! o" !'e po(e! o" !'e people a li!!le a poible over and

above &'a! i! brin% in!o !'e p#bli( !rea#ry o" !'e !a!e8 I! i+ply +ean !'a! o#r(e o" reven#e +#!be ade,#a!e !o +ee! %overn+en! e1pendi!#re and !'eir varia!ion8

Same; Same; &ue 'rocess; qual 'rotection; =here the due "rocess and equal "rotection clauses are

invo0ed( considerin that they are not fixed rules #ut rather #road standards( there is a need for "roof

of such "ersuasive character as would lead to such a conclusion.T'e do(!rine i !'a! &'ere !'e d#epro(e and e,#al pro!e(!ion (la#e are invoed) (oniderin% !'a! !'ey are no! "i1ed r#le b#! ra!'er

broad !andard) !'ere i a need "or proo" o" #(' per#aive ('ara(!er a &o#ld lead !o #(' a

(on(l#ion8 Aben! #(' a 'o&in%) !'e pre#+p!ion o" validi!y +#! prevail8

Same; Same; =ords and 'hrases; /n"ut %ax is defined under Section 66,)A* of the /RC( as amended(

as the valueBadded tax due from or "aid #y a :A%Breistered "erson on the im"ortation of oods orlocal "urchase of ood and services( includin lease or use of "ro"erty( in the course of trade or

#usiness( from a :A%Breistered "erson( and 5ut"ut %ax is the valueBadded tax due on the sale or lease

of taxa#le oods or "ro"erties or services #y any "erson reistered or required to reister under thelaw.Se(!ion o" R8A8 No8 66?) a+endin% Se(!ion //>.B0 o" !'e NIRC i+poe a li+i!a!ion on !'e

a+o#n! o" inp#! !a1 !'a! +ay be (redi!ed a%ain! !'e o#!p#! !a18 I! !a!e) in par!: -4P5rovided) !'a! !'e

inp#! !a1 in(l#ive o" !'e inp#! VAT (arried over "ro+ !'e previo# ,#ar!er !'a! +ay be (redi!ed in


19/63

every ,#ar!er 'all no! e1(eed even!y per(en! .?>0 o" !'e o#!p#! VAT: 99 Inp#! Ta1 i de"ined

#nder Se(!ion //>.A0 o" !'e NIRC) a a+ended) a !'e val#e$added !a1 d#e "ro+ or paid by a VAT$

re%i!ered peron on !'e i+por!a!ion o" %ood or lo(al p#r('ae o" %ood and ervi(e) in(l#din% leae or

#e o" proper!y) in !'e (o#re o" !rade or b#ine) "ro+ a VAT$re%i!ered peron) and O#!p#! Ta1 i !'eval#e$added !a1 d#e on !'e ale or leae o" !a1able %ood or proper!ie or ervi(e by any peron

re%i!ered or re,#ired !o re%i!er #nder !'e la&8

Same; Same; &ue 'rocess; :ested Rihts; %he in"ut tax is not a "ro"erty or a "ro"erty riht within the

constitutional "urview of the due "rocess clausea :A%Breistered "erson3s entitlement to thecredita#le in"ut tax is a mere statutory "rivilee; %he riht to credit in"ut tax as aainst the out"ut tax

is clearly a "rivilee created #y law( a "rivilee that also the law can remove or limit; %he distinction

#etween statutory "rivilees and vested rihts must #e #orne in mind for "ersons have no vested rihts

in statutory "rivilees.T'e inp#! !a1 i no! a proper!y or a proper!y ri%'! &i!'in !'e (on!i!#!ional

p#rvie& o" !'e d#e pro(e (la#e8 A VAT$re%i!ered peron en!i!le+en! !o !'e (redi!able inp#! !a1 i a

+ere !a!#!ory privile%e8 T'e di!in(!ion be!&een !a!#!ory privile%e and ve!ed ri%'! +#! be borne

in +ind "or peron 'ave no ve!ed ri%'! in !a!#!ory privile%e8 T'e !a!e +ay ('an%e or !ae a&ayri%'!) &'i(' &ere (rea!ed by !'e la& o" !'e !a!e) al!'o#%' i! +ay no! !ae a&ay proper!y) &'i(' &a

ve!ed by vir!#e o" #(' ri%'!8 Under !'e previo# y!e+ o" in%le$!a%e !a1a!ion) !a1e paid a! every

level o" di!rib#!ion are no! re(overable "ro+ !'e !a1e payable) al!'o#%' i! be(o+e par! o" !'e (o!)&'i(' i ded#(!ible "ro+ !'e %ro reven#e8 W'en Pre8 A,#ino i#ed E8O8 No8 3?6 i+poin% a />

+#l!i$!a%e !a1 on all ale) i! &a !'en !'a! !'e (redi!in% o" !'e inp#! !a1 paid on p#r('ae or

i+por!a!ion o" %ood and ervi(e by VAT$re%i!ered peron a%ain! !'e o#!p#! !a1 &a in!rod#(ed8T'i &a adop!ed by !'e E1panded VAT La& .R8A8 No8 ??/=0) and T'e Ta1 Re"or+ A(! o" /? .R8A8

No8 73708 T'e ri%'! !o (redi! inp#! !a1 a a%ain! !'e o#!p#! !a1 i (learly a privile%e (rea!ed by la&) a

privile%e !'a! alo !'e la& (an re+ove) or in !'i (ae) li+i!8

Same; Same; Conress admitted that the s"readBout of the credita#le in"ut tax in this case amounts to

a HByear interestBfree loan to the overnment; ?or whatever is the "ur"ose of the ,Bmonth

amorti1ation( this involves executive economic "olicy and leislative wisdom in which the Court cannotintervene.I! i &or!' +en!ionin% !'a! Con%re ad+i!!ed !'a! !'e pread$o#! o" !'e (redi!able inp#!

!a1 in !'i (ae a+o#n! !o a 7$year in!ere!$"ree loan !o !'e %overn+en!8 In !'e a+e brea!') Con%re

alo *#!i"ied i! +ove by ayin% !'a! !'e proviion &a dei%ned !o raie an ann#al reven#e o" 338=billion8 T'e le%ila!#re alo dipelled !'e "ear !'a! !'e proviion &ill "end o"" "orei%n inve!+en!)

ayin% !'a! "orei%n inve!or 'ave o!'er !a1 in(en!ive provided by la&) and (i!in% !'e (ae o" C'ina)

&'ere depi!e a /?8


20/63

pay+en! "or p#r('ae o" %ood2 = on %ro pay+en! "or ervi(e #pplied by (on!ra(!or o!'er !'an

by p#bli( &or (on!ra(!or2 8


21/63

&i!' !'e %overn+en! di""eren!ly8 Sin(e i! 'a no! been 'o&n !'a! !'e (la #b*e(! !o !'e


22/63

Same; Same; Same; =) />? and />) repe(!ively) o" !'e NIRC) provide "or a ra!e o"/> .or /30 on ale o" %ood and proper!ie) i+por!a!ion o" %ood) and ale o" ervi(e and #e or

leae o" proper!ie8 T'ee a+e e(!ion alo provide "or a > ra!e on (er!ain ale and !rana(!ion8

Nei!'er doe !'e la& +ae any di!in(!ion a !o !'e !ype o" ind#!ry or !rade !'a! &ill bear !'e ?>li+i!a!ion on !'e (redi!able inp#! !a1) )>>>8>>8 Alo) bai(

+arine and a%ri(#l!#ral "ood prod#(! in !'eir ori%inal !a!e are !ill no! #b*e(! !o !'e !a1) !'# en#rin%

!'a! pri(e a! !'e %raroo! level &ill re+ain a((eible8 A &a !a!ed in apa!iran n% +%aNa%lilin%od a Pa+a'alaan n% Pilipina) In(8 v8 Tan: T'e dip#!ed ale !a1 i alo e,#i!able8 I! i

i+poed only on ale o" %ood or ervi(e by peron en%a%ed in b#ine &i!' an a%%re%a!e %ro

ann#al ale e1(eedin% P3>>)>>>8>>8 S+all (orner ari$ari !ore are (one,#en!ly e1e+p! "ro+ i!appli(a!ion8 Lie&ie e1e+p! "ro+ !'e !a1 are ale o" "ar+ and +arine prod#(!) o !'a! !'e (o! o"

bai( "ood and o!'er ne(ei!ie) pared a !'ey are "ro+ !'e in(iden(e o" !'e VAT) are e1pe(!ed !o be

rela!ively lo&er and &i!'in !'e rea(' o" !'e %eneral p#bli(8

Same; Same; 'roressive %axation; 'roressive taxation is #uilt on the "rinci"le of the tax"ayer3s

a#ility to "aytaxation is "roressive when its rate oes u" de"endin on the resources of the "erson

affected.Pe!i!ioner (on!end !'a! !'e li+i!a!ion on !'e (redi!able inp#! !a1 i any!'in% b#! re%reive8I! i !'e +aller b#ine &i!' 'i%'er inp#! !a1$o#!p#! !a1 ra!io !'a! &ill #""er !'e (one,#en(e8

Pro%reive !a1a!ion i b#il! on !'e prin(iple o" !'e !a1payer abili!y !o pay8 T'i prin(iple &a alo

li"!ed "ro+ Ada+ S+i!' Canon o" Ta1a!ion) and i! !a!e: I8 T'e #b*e(! o" every !a!e o#%'! !o(on!rib#!e !o&ard !'e #ppor! o" !'e %overn+en!) a nearly a poible) in propor!ion !o !'eir

repe(!ive abili!ie2 !'a! i) in propor!ion !o !'e reven#e &'i(' !'ey repe(!ively en*oy #nder !'e

pro!e(!ion o" !'e !a!e8 Ta1a!ion i pro%reive &'en i! ra!e %oe #p dependin% on !'e reo#r(e o" !'eperon a""e(!ed8

Same; Same; Same; %he :A% is an antithesis of "roressive taxation#y its very nature( it is

reressive; %he "rinci"le of "roressive taxation has no relation with the :A% system inasmuch as the:A% "aid #y the consumer or #usiness for every oods #ouht or services en$oyed is the same

reardless of income.T'e VAT i an an!i!'ei o" pro%reive !a1a!ion8 By i! very na!#re) i! i

re%reive8 T'e prin(iple o" pro%reive !a1a!ion 'a no rela!ion &i!' !'e VAT y!e+ ina+#(' a !'eVAT paid by !'e (on#+er or b#ine "or every %ood bo#%'! or ervi(e en*oyed i !'e a+e

re%ardle o" in(o+e8 In o!'er &ord) !'e VAT paid ea! !'e a+e por!ion o" an in(o+e) &'e!'er bi% or

+all8 T'e dipari!y lie in !'e in(o+e earned by a peron or pro"i! +ar%in +ared by a b#ine) #('!'a! !'e 'i%'er !'e in(o+e or pro"i! +ar%in) !'e +aller !'e por!ion o" !'e in(o+e or pro"i! !'a! i ea!en

by VAT8 A (onvero) !'e lo&er !'e in(o+e or pro"i! +ar%in) !'e bi%%er !'e par! !'a! !'e VAT ea! a&ay8

A! !'e end o" !'e day) i! i really !'e lo&er in(o+e %ro#p or b#inee &i!' lo&$pro"i! +ar%in !'a! i


23/63

al&ay 'arde! 'i!8

Same; Same; Same; %he Constitution does not really "rohi#it the im"osition of indirect taxes( li0e the

:A%.T'e Con!i!#!ion doe no! really pro'ibi! !'e i+poi!ion o" indire(! !a1e) lie !'e VAT8 W'a! i!i+ply provide i !'a! Con%re 'all -evolve a pro%reive y!e+ o" !a1a!ion89 T'e Co#r! !a!ed in

!'e Tolen!ino (ae) !'#: T'e Con!i!#!ion doe no! really pro'ibi! !'e i+poi!ion o" indire(! !a1e

&'i(') lie !'e VAT) are re%reive8 W'a! i! i+ply provide i !'a! Con%re 'all evolve apro%reive y!e+ o" !a1a!ion8 T'e (on!i!#!ional proviion 'a been in!erpre!ed !o +ean i+ply !'a!

dire(! !a1e are 8 8 8 !o be pre"erred 4and5 a +#(' a poible) indire(! !a1e 'o#ld be +ini+i;ed8 .E8

@ERNANDO) TE CONSTITUTION O@ TE PILIPPINES 33/ 4Se(ond ed8 /??50 Indeed) !'e+anda!e !o Con%re i no! !o pre(ribe) b#! !o evolve) a pro%reive !a1 y!e+8 O!'er&ie) ale !a1e)

&'i(' per'ap are !'e olde! "or+ o" indire(! !a1e) &o#ld 'ave been pro'ibi!ed &i!' !'e pro(la+a!ion

o" Ar!8 VIII) /? ./0 o" !'e /?6 Con!i!#!ion "ro+ &'i(' !'e preen! Ar!8 VI) 3 ./0 &a !aen8 Sale!a1e are alo re%reive8 Reor! !o indire(! !a1e 'o#ld be +ini+i;ed b#! no! avoided en!irely be(a#e

i! i di""i(#l!) i" no! i+poible) !o avoid !'e+ by i+poin% #(' !a1e a((ordin% !o !'e !a1payerM abili!y

!o pay8 In !'e (ae o" !'e VAT) !'e la& +ini+i;e !'e re%reive e""e(! o" !'i i+poi!ion by providin%

"or ;ero ra!in% o" (er!ain !rana(!ion .R8A8 No8 ??/=) 6) a+endin% />3 .b0 o" !'e NIRC0) &'ile%ran!in% e1e+p!ion !o o!'er !rana(!ion8 .R8A8 No8 ??/=) 7 a+endin% />6 o" !'e NIRC0

Sa+e2 Sa+e2 #di(ial Revie&2 T'e Co#r! (anno! !rie do&n a la& a #n(on!i!#!ional i+ply be(a#e

o" i! yoe8I! 'a been aid !'a! !a1e are !'e li"eblood o" !'e %overn+en!8 In !'i (ae) i! i *#! anene+a) a "ir!$aid +ea#re !o re#(i!a!e an e(ono+y in di!re8 T'e Co#r! i nei!'er blind nor i i!

!#rnin% a dea" ear on !'e pli%'! o" !'e +ae8 B#! i! doe no! 'ave !'e pana(ea "or !'e +alady !'a! !'e

la& ee !o re+edy8 A in o!'er (ae) !'e Co#r! (anno! !rie do&n a la& a #n(on!i!#!ional i+plybe(a#e o" i! yoe8 Le! # no! be overly in"l#en(ed by !'e plea !'a! "or every &ron% !'ere i a re+edy)

and !'a! !'e *#di(iary 'o#ld !and ready !o a""ord relie"8 T'ere are #ndo#b!edly +any &ron% !'e

*#di(a!#re +ay no! (orre(!) "or in!an(e) !'oe involvin% poli!i(al ,#e!ion8 8 8 8 Le! # lie&ie

diab#e o#r +ind "ro+ !'e no!ion !'a! !'e *#di(iary i !'e repoi!ory o" re+edie "or all poli!i(al oro(ial ill2 We 'o#ld no! "or%e! !'a! !'e Con!i!#!ion 'a *#di(io#ly allo(a!ed !'e po&er o"

%overn+en! !o !'ree di!in(! and epara!e (o+par!+en!2 and !'a! *#di(ial in!erpre!a!ion 'a !ended !o

!'e preerva!ion o" !'e independen(e o" !'e !'ree) and a ;ealo# re%ard o" !'e prero%a!ive o" ea(')no&in% "#ll &ell !'a! one i no! !'e %#ardian o" !'e o!'er and !'a!) "or o""i(ial &ron%$doin%) ea(' +ay

be bro#%'! !o a((o#n!) ei!'er by i+pea('+en!) !rial or by !'e ballo! bo18

Manila International irport (thority vs. City of Pasay, *+! SCR #!0 , pril "#, #""-

2y ex"ress mandate of the Local overnment Code( local overnments cannot im"ose any 0ind of taxon national overnment instrumentalities li0e the K/AA. )Kanila /nternational Air"ort Authority vs.

Court of A""eals( H7D SCRA D76 E+,,F*

%he determinative test whether K/AA is exem"t from local taxation is not whether K/AA is a $uridical

"erson( #ut whether it is a national overnment instrumentality under Section 6)o* of the Local

overnment Code. )/ EKanila /nternational Air"ort Authority vs. City of 'asay( D8 SCRA +H)+,,7*F

Administrative Aencies; Kanila /nternational Air"ort Authority; Kanila /nternational Air"ort

Authority )K/AA* is a overnment instrumentality! that does not qualify as a overnmentBowned orcontrolled cor"oration.!A (loe (r#!iny o" !'e de"ini!ion o" -%overn+en!$o&ned or (on!rolled

(orpora!ion9 in Se(!ion 3./60 &ill 'o& !'a! JIAA &o#ld no! "all #nder #(' de"ini!ion8 JIAA i a

%overn+en! -in!r#+en!ali!y9 !'a! doe no! ,#ali"y a a -%overn+en!$o&ned or (on!rolled


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(orpora!ion89 A e1plained in !'e 3>>= JIAA (ae: -A %overn+en!$o&ned or (on!rolled (orpora!ion

+#! be -or%ani;ed a a !o( or non$!o( (orpora!ion89 JIAA i no! or%ani;ed a a !o( or non$

!o( (orpora!ion8 JIAA i no! a !o( (orpora!ion be(a#e i! 'a no (api!al !o( divided in!o 'are8

JIAA 'a no !o('older or vo!in% 'are8 1 1 19

Same; Same; %axation; %ax xem"tions; Local overnment Code; Kanila /nternational Air"ort

Authority )K/AA* is not a overnmentBowned or controlled cor"oration #ut a overnmentinstrumentality which is exem"t from any 0ind of tax from the local overnments.JIAA i no! a

%overn+en!$o&ned or (on!rolled (orpora!ion b#! a %overn+en! in!r#+en!ali!y &'i(' i e1e+p! "ro+

any ind o" !a1 "ro+ !'e lo(al %overn+en!8 Indeed) !'e e1er(ie o" !'e !a1in% po&er o" lo(al%overn+en! #ni! i #b*e(! !o !'e li+i!a!ion en#+era!ed in Se(!ion /66 o" !'e Lo(al Govern+en!

Code8 Under Se(!ion /66.o0 o" !'e Lo(al Govern+en! Code) lo(al %overn+en! #ni! 'ave no po&er !o

!a1 in!r#+en!ali!ie o" !'e na!ional %overn+en! lie !'e JIAA8 en(e) JIAA i no! liable !o pay realproper!y !a1 "or !'e NAIA Paay proper!ie8

Same; Same; Same; 'ro"erty; %he air"ort lands and #uildins of Kanila /nternational Air"ort

Authority )K/AA* are "ro"erties of "u#lic dominion intended for "u#lic use; and as such are exem"tfrom real "ro"erty tax under Section +H)a* of the Local overnment Code )LC*; 5nly those "ortions

of the inoy Aquino /nternational Air"ort )A/A* 'asay "ro"erties which are leased to taxa#le "ersons

li0e "rivate "arties are su#$ect to real "ro"erty tax #y the City of 'asay.T'e airpor! land andb#ildin% o" JIAA are proper!ie o" p#bli( do+inion in!ended "or p#bli( #e) and a #(' are e1e+p!

"ro+ real proper!y !a1 #nder Se(!ion 367.a0 o" !'e Lo(al Govern+en! Code8 o&ever) #nder !'e a+e

proviion) i" JIAA leae i! real proper!y !o a !a1able peron) !'e pe(i"i( proper!y leaed be(o+e#b*e(! !o real proper!y !a18 In !'i (ae) only !'oe por!ion o" !'e NAIA Paay proper!ie &'i(' are

leaed !o !a1able peron lie priva!e par!ie are #b*e(! !o real proper!y !a1 by !'e Ci!y o" Paay8

4Janila In!erna!ional Airpor! A#!'ori!y v8 Ci!y o" Paay) >05

Tolen!ino v8 Se(re!ary o" @inan(e) 37 SCRA =3 ) O(!ober 6>) /8>7) p833 ./?3008

Same; Same; Same; Conference Committee; Conference committee has the "ower to insert new

"rovisions as lon as these are ermane to the su#$ect of the conference.Nor i !'ere any do#b! abo#!!'e po&er o" a (on"eren(e (o++i!!ee !o iner! ne& proviion a lon% a !'ee are %er+ane !o !'e

#b*e(! o" !'e (on"eren(e8 A !'i Co#r! 'eld in P'ilippine #d%e Ao(ia!ion v8 Prado) 33? SCRA ?>6

./60) in an opinion &ri!!en by !'en #!i(e Cr#;) !'e *#ridi(!ion o" !'e (on"eren(e (o++i!!ee i no!li+i!ed !o reolvin% di""eren(e be!&een !'e Sena!e and !'e o#e8 I! +ay propoe an en!irely ne&

proviion8 W'a! i i+por!an! i !'a! i! repor! i #be,#en!ly approved by !'e repe(!ive 'o#e o"

Con%re8 T'i Co#r! r#led !'a! i! &o#ld no! en!er!ain alle%a!ion !'a!) be(a#e ne& proviion 'adbeen added by !'e (on"eren(e (o++i!!ee) !'ere &a !'ereby a viola!ion o" !'e (on!i!#!ional in*#n(!ion

!'a! -#pon !'e la! readin% o" a bill) no a+end+en! !'ere!o 'all be allo&ed89

Same; Same; /t is the #ill which #ecomes a law that is required to ex"ress in its title the su#$ect ofleislation.PAL aer! !'a! !'e a+end+en! o" i! "ran('ie +#! be re"le(!ed in !'e !i!le o" !'e la& by

pe(i"i( re"eren(e !o P8D8 No8 /8 I! i #nne(eary !o do !'i in order !o (o+ply &i!' !'e

(on!i!#!ional re,#ire+en!) in(e i! i already !a!ed in !'e !i!le !'a! !'e la& ee !o a+end !'e per!inen!proviion o" !'e NIRC) a+on% &'i(' i />6.,0) in order !o &iden !'e bae o" !'e VAT8 A(!#ally) i! i

!'e bill &'i(' be(o+e a la& !'a! i re,#ired !o e1pre in i! !i!le !'e #b*e(! o" le%ila!ion8 T'e !i!le

o" 8 No8 ///? and S8 No8 /=6> in "a(! pe(i"i(ally re"erred !o />6 o" !'e NIRC a a+on% !'eproviion o#%'! !o be a+ended8 We are a!i"ied !'a! #""i(ien! no!i(e 'ad been %iven o" !'e penden(y

o" !'ee bill in Con%re be"ore !'ey &ere ena(!ed in!o &'a! i no& R8A8 No8 ?//=8

Same; Same; %axation; %he "ress is not exem"t from the taxin "ower of the State.VI8 Clai+ o"

pre "reedo+ and reli%io# liber!y8 We 'ave 'eld !'a!) a a %eneral propoi!ion) !'e pre i no! e1e+p!

"ro+ !'e !a1in% po&er o" !'e S!a!e and !'a! &'a! !'e (on!i!#!ional %#aran!ee o" "ree pre pro'ibi! are


26/63

la& &'i(' in%le o#! !'e pre or !ar%e! a %ro#p belon%in% !o !'e pre "or pe(ial !rea!+en! or &'i('

in any &ay di(ri+ina!e a%ain! !'e pre on !'e bai o" !'e (on!en! o" !'e p#bli(a!ion) and RA8 No8

??/= i none o" !'ee8

Same; Same; Same; xce"tions; 2y rantin exem"tions( the State does not forever waive the exercise

of its soverein "reroative.No& i! i (on!ended by !'e PPI !'a! by re+ovin% !'e e1e+p!ion o" !'e

pre "ro+ !'e VAT &'ile +ain!ainin% !'oe %ran!ed !o o!'er) !'e la& di(ri+ina!e a%ain! !'e pre8A! any ra!e) i! i averred) -even nondi(ri+ina!ory !a1a!ion o" (on!i!#!ionally %#aran!eed "reedo+ i

#n(on!i!#!ional89 Wi!' repe(! !o !'e "ir! (on!en!ion) i! &o#ld #""i(e !o ay !'a! in(e !'e la& %ran!ed

!'e pre a privile%e) !'e la& (o#ld !ae ba( !'e privile%e any!i+e &i!'o#! o""ene !o !'e Con!i!#!ion8T'e reaon i i+ple: by %ran!in% e1e+p!ion) !'e S!a!e doe no! "orever &aive !'e e1er(ie o" i!

overei%n prero%a!ive8

Same; Same; Same; Same; /n withdrawin the exem"tion( the law merely su#$ects the "ress to the sametax #urden to which other #usinesses have lon ao #een su#$ect.Indeed) in &i!'dra&in% !'e

e1e+p!ion) !'e la& +erely #b*e(! !'e pre !o !'e a+e !a1 b#rden !o &'i(' o!'er b#inee 'ave

lon% a%o been #b*e(!8 I! i !'# di""eren! "ro+ !'e !a1 involved in !'e (ae invoed by !'e PPI8 T'eli(ene !a1 in Gro*ean v8 A+eri(an Pre Co8)3? U8S8 366) > L8Ed8 ==> ./6=0 &a "o#nd !o be

di(ri+ina!ory be(a#e i! &a laid on !'e %ro adver!iin% re(eip! only o" ne&paper &'oe &eely

(ir(#la!ion &a over 3>)>>> &i!' !'e re#l! !'a! !'e !a1 applied only !o /6 o#! o" /37 p#bli'er inLo#iiana8 T'ee lar%e paper &ere (ri!i(al o" Sena!or #ey Lon% &'o (on!rolled !'e !a!e le%ila!#re

&'i(' ena(!ed !'e li(ene !a18 T'e (enorial +o!iva!ion "or !'e la& &a !'# eviden!8

Same; Same; Same; Same; %he :A% is im"osed on the sale( #arter( lease or exchane of oods or

"ro"erties or the sale or exchane of services and the lease of "ro"erties "urely for revenue "ur"oses.

T'e VAT i) 'o&ever) di""eren!8 I! i no! a li(ene !a18 I! i no! a !a1 on !'e e1er(ie o" a privile%e)

+#(' le a (on!i!#!ional ri%'!8 I! i i+poed on !'e ale) bar!er) leae or e1('an%e o" %ood orproper!ie or !'e ale or e1('an%e o" ervi(e and !'e leae o" proper!ie p#rely "or reven#e p#rpoe8

To #b*e(! !'e pre !o i! pay+en! i no! !o b#rden !'e e1er(ie o" i! ri%'! any +ore !'an !o +ae !'e

pre pay in(o+e !a1 or #b*e(! i! !o %eneral re%#la!ion i no! !o viola!e i! "reedo+ #nder !'eCon!i!#!ion8

Same; Same; Same; /t is inherent in the "ower to tax that the State #e free to select the su#$ects oftaxation( and it has #een re"eatedly held that Minequalities which result from a sinlin out of one

"articular class for taxation( or exem"tion infrine no constitutional limitation.3 !T'e ale o" "ood

i!e+) pe!role#+) +edi(al and ve!erinary ervi(e) e!(8) &'i(' are een!ial %ood and ervi(e &aalready e1e+p! #nder />6) par8 .b0 .d0 ./0 o" !'e NIRC be"ore !'e ena(!+en! o" R8A8 No8 ??/=8

Pe!i!ioner i in error in (lai+in% !'a! R8A8 No8 ??/= %ran!ed e1e+p!ion !o !'ee !rana(!ion) &'ile

#b*e(!in% !'oe o" pe!i!ioner !o !'e pay+en! o" !'e VAT8 Joreover) !'ere i a di""eren(e be!&een !'e

-'o+ele poor9 and !'e -'o+ele le poor9 in !'e e1a+ple %iven by pe!i!ioner) be(a#e !'e e(ond%ro#p or +iddle (la (an a""ord !o ren! 'o#e in !'e +ean!i+e !'a! !'ey (anno! ye! b#y !'eir o&n

'o+e8 T'e !&o o(ial (lae are !'# di""eren!ly i!#a!ed in li"e8 -I! i in'eren! in !'e po&er !o !a1 !'a!

!'e S!a!e be "ree !o ele(! !'e #b*e(! o" !a1a!ion) and i! 'a been repea!edly 'eld !'a! ine,#ali!ie&'i(' re#l! "ro+ a in%lin% o#! o" one par!i(#lar (la "or !a1a!ion) or e1e+p!ion in"rin%e no

(on!i!#!ional li+i!a!ion8 9 .L#!; v8 Arane!a) P'il8 /7) /


27/63

"ro"erty of the same class #e taxed at the same rate.E,#ali!y and #ni"or+i!y o" !a1a!ion +ean !'a!

all !a1able ar!i(le or ind o" proper!y o" !'e a+e (la be !a1ed a! !'e a+e ra!e8 T'e !a1in% po&er

'a !'e a#!'ori!y !o +ae reaonable and na!#ral (lai"i(a!ion "or p#rpoe o" !a1a!ion8 To a!i"y !'i

re,#ire+en! i! i eno#%' !'a! !'e !a!#!e or ordinan(e applie e,#ally !o all peron) "or+ and(orpora!ion pla(ed in i+ilar i!#a!ion8 .Ci!y o" Ba%#io v8 De Leon) /67 P'il8 /3 ./=02 Sion) r8 v8

An('e!a) /6> SCRA =3.b0 o" !'e NIRC0) &'ile %ran!in% e1e+p!ion !o

o!'er !rana(!ion8 .R8A8 No8 ??/=) 7) a+endin% />6 o" !'e NIRC08

Sa+e2 Sa+e2 Sa+e2 C'ari!able in!i!#!ion) ('#r('e and parona%e by reaon o" Ar!8 VI) 3 .60) andnon$!o() non$pro"i! ed#(a!ional in!i!#!ion by reaon o" Ar!8 IV) 7.60 &'i(' #nder !'e Con!i!#!ion

are !'e only e1e+p! "ro+ !a1a!ion8Indeed) pe!i!ioner !'eory a+o#n! !o ayin% !'a! #nder !'e

Con!i!#!ion (oopera!ive are e1e+p! "ro+ !a1a!ion8 S#(' !'eory i (on!rary !o !'e Con!i!#!ion #nder

&'i(' only !'e "ollo&in% are e1e+p! "ro+ !a1a!ion: ('ari!able in!i!#!ion) ('#r('e and parona%e) byreaon o" Ar!8 VI) 3.60) and non$!o() non$pro"i! ed#(a!ional in!i!#!ion) by reaon o" Ar!8 IV)

7.608

)ritish merican %o$acco vs. Camacho, *3# SCR *11 , ('(st #", #""+

%axation; Leislative Classification ?ree1e Scheme; %he assailed feature of this law "ertains to the

mechanism where( after a #rand is classified #ased on its current net retail "rice( the classification is

fro1en and only Conress can thereafter reclassify the same.A (an be een) !'e la& (rea!e a "o#r$

!iered y!e+ &'i(' &e +ay re"er !o a !'e lo&$pri(ed) +edi#+$pri(ed) 'i%'$pri(ed) and pre+i#+$

pri(ed !a1 bra(e!8 W'en a brand i in!rod#(ed in !'e +are!) !'e (#rren! ne! re!ail pri(e i de!er+ined

!'ro#%' !'e a"ore,#o!ed pe(i"ied pro(ed#re8 T'e (#rren! ne! re!ail pri(e i !'en #ed !o (lai"y #nder&'i(' !a1 bra(e! !'e brand belon% in order !o "inally de!er+ine !'e (orrepondin% e1(ie !a1 ra!e on a

per pa( bai8 T'e aailed "ea!#re o" !'i la& per!ain !o !'e +e('ani+ &'ere) a"!er a brand i

(lai"ied baed on i! (#rren! ne! re!ail pri(e) !'e (lai"i(a!ion i "ro;en and only Con%re (an!'erea"!er re(lai"y !'e a+e8 @ro+ a pra(!i(al poin! o" vie&) Anne1 -D9 i +erely a by$prod#(! o" !'e

&'ole +e('ani+ and p'iloop'y o" !'e aailed la&8 T'a! i) !'e brand #nder Anne1 -D9 &ere alo

(lai"ied baed on !'eir (#rren! ne! re!ail pri(e) !'e only di""eren(e bein% !'a! !'ey &ere !'e "ir! oneo (lai"ied in(e !'ey &ere !'e only brand #rveyed a o" O(!ober /) /=) or prior !o !'e e""e(!ivi!y

o" RA 37> on an#ary /) /?8 D#e !o !'i le%ila!ive (lai"i(a!ion ('e+e) i! i poible !'a! over

!i+e !'e ne! re!ail pri(e o" a previo#ly (lai"ied brand) &'e!'er i! be a brand #nder Anne1 -D9 or a


28/63

ne& brand (lai"ied a"!er !'e e""e(!ivi!y o" RA 37> on an#ary /) /?) &o#ld in(reae .d#e !o

in"la!ion) in(reae o" prod#(!ion (o!) +an#"a(!#rer de(iion !o in(reae i! pri(e) e!(80 !o a poin!

!'a! i! ne! re!ail pri(e pier(e !'e !a1 bra(e! !o &'i(' i! &a previo#ly (lai"ied8 Cone,#en!ly) even

i" i! preen! day ne! re!ail pri(e &o#ld +ae i! "all #nder a 'i%'er !a1 bra(e!) !'e previo#ly (lai"iedbrand &o#ld (on!in#e !o be #b*e(! !o !'e e1(ie !a1 ra!e #nder !'e lo&er !a1 bra(e! by vir!#e o" !'e

le%ila!ive (lai"i(a!ion "ree;e8

Same; Same; qual 'rotection; Requisites; /n our $urisdiction( the standard and analysis of equal

"rotection challenes in the main have followed the rational #asis! test( cou"led with a deferential

attitude to leislative classifications and a reluctance to invalidate a law unless there is a showin of aclear and unequivocal #reach of the Constitution; A leislative classification( to survive an equal

"rotection challene( must #e shown to rationally further a leitimate state interestthe classifications

must #e reasona#le and rest u"on some round of difference havin a fair and su#stantial relation to

the o#$ect of the leislation.We 'ave 'eld !'a! -in o#r *#ridi(!ion) !'e !andard and analyi o" e,#al

pro!e(!ion ('allen%e in !'e +ain 'ave "ollo&ed !'e ra!ional bai !e!) (o#pled &i!' a de"eren!ial

a!!i!#de !o le%ila!ive (lai"i(a!ion and a rel#(!an(e !o invalida!e a la& #nle !'ere i a 'o&in% o" a

(lear and #ne,#ivo(al brea(' o" !'e Con!i!#!ion89 Wi!'in !'e preen! (on!e1! o" !a1 le%ila!ion on inprod#(! &'i(' nei!'er (on!ain a #pe(! (lai"i(a!ion nor i+pin%e on a "#nda+en!al ri%'!) !'e

ra!ional$bai !e! !'# "ind appli(a!ion8 Under !'i !e!) a le%ila!ive (lai"i(a!ion) !o #rvive an e,#al

pro!e(!ion ('allen%e) +#! be 'o&n !o ra!ionally "#r!'er a le%i!i+a!e !a!e in!ere!8 T'e (lai"i(a!ion+#! be reaonable and re! #pon o+e %ro#nd o" di""eren(e 'avin% a "air and #b!an!ial rela!ion !o !'e

ob*e(! o" !'e le%ila!ion8 Sin(e every la& 'a in i! "avor !'e pre#+p!ion o" (on!i!#!ionali!y) !'e

b#rden o" proo" i on !'e one a!!a(in% !'e (on!i!#!ionali!y o" !'e la& !o prove beyond reaonabledo#b! !'a! !'e le%ila!ive (lai"i(a!ion i &i!'o#! ra!ional bai8 T'e pre#+p!ion o" (on!i!#!ionali!y

(an be over(o+e only by !'e +o! e1pli(i! de+on!ra!ion !'a! a (lai"i(a!ion i a 'o!ile and

oppreive di(ri+ina!ion a%ain! par!i(#lar peron and (lae) and !'a! !'ere i no (on(eivable bai

&'i(' +i%'! #ppor! i!8 A le%ila!ive (lai"i(a!ion !'a! i reaonable doe no! o""end !'e (on!i!#!ional%#aran!y o" !'e e,#al pro!e(!ion o" !'e la&8 T'e (lai"i(a!ion i (onidered valid and reaonable

provided !'a!: ./0 i! re! on #b!an!ial di!in(!ion2 .30 i! i %er+ane !o !'e p#rpoe o" !'e la&2 .60 i!

applie) all !'in% bein% e,#al) !o bo!' preen! and "#!#re (ondi!ion2 and .70 i! applie e,#ally !o all!'oe belon%in% !o !'e a+e (la8

Same; Same; Same; /t is quite evident that the classification free1e "rovision could hardly #econsidered ar#itra

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