PROJECT JURISPRUDENCE

CASE DIGEST: MEDICARD PHILIPPINES, INC., Petitioner, vs. COMMISSIONER OF INTERNAL REVENUE, Respondent. (G.R. No. 222743; April 5, 2017) MEDICARD was ordered by the CTA to pay CIR VAT deficiency at 220 million pesos plus 20% interest per annum from January 25, 2007. Finding some discrepancies between MEDICARD's Income Tax Returns (ITR) and VAT Returns, the CIR informed MEDICARD and issued a Letter Notice (LN). A PAN was issued against MEDICARD for deficiency VAT.  A FAN was received by MEDICARD on January 4, 2008 for alleged deficiency VAT for taxable year 2006 in the total amount of Pl 96,614,476.69,10 inclusive of penalties. More importantly, MEDICARD raised the issue of lack of Letter of Authority (LOA) on the part of the revenue officer who conducted the examination. The CIR, on the other hand, posits that the LN is enough compliance with the LOA requirement, arguing that the use of computers to detect discrepancies dispenses with the requirement of LOA. Furthermore, the

CASE DIGEST: BUREAU OF INTERNAL REVENUE, ASSISTANT COMMISSIONER ALFREDO V. MISAJON, GROUP SUPERVISOR ROLANDO M. BALBIDO, and EXAMINER REYNANTE DP. MARTIREZ, Petitioners, vs. LEPANTO CERAMICS, INC., Respondent. (G.R. No. 224764; April 24, 2017) Lepanto Ceramics, Inc. (LCI) filed a petition for corporate rehabilitation under RA 10142 with the RTC in Calamba City. Aside from financial difficulties, the petition for rehab also alleged LCI's tax liability at 6.3 million pesos. The Rehabilitation (Rehab Court) issued a Commencement Order (Order). The Order declared LCI under rehab and suspended all actions or proceedings, in court or otherwise, for the enforcement of claims against LCI. It also directed the BIR to file and serve on LCI its comment or opposition to the petition, or its claims against LCI. Despite this, petitioners, acting as Assistant Commissioner, Group Supervisor, and Examiner, sent LCI a notice of informal conference, informing the latter of its tax liabili

CASE DIGEST: MITSUBISHI CORPORATION - MANILA BRANCH, Petitioner vs COMMISSIONER OF INTERNAL REVENUE, Respondent. (G.R. No. 175772; June 5, 2017) On June 11, 1987, the governments of Japan and the Philippines executed an Exchange of Notes, whereby the former agreed to extend a loan amounting to Forty Billion Four Hundred Million Japanese Yen (¥40,400,000,000) to the latter through the then Overseas Economic Cooperation Fund (OECF, now Japan Bank for International Cooperation) for the implementation of the Calaca II Coal-Fired Thermal Power Plant Project (Project). In Paragraph 5 (2) of the Exchange of Notes, the PHIL GOV, by itself or through its executing agency, undertook to assume all taxes imposed by the Philippines on Japanese contractors engaged in the Project. Consequently, the OECF and the PHIL GOV entered into Loan No. PH-P76 for said amount. Due to need for more funds for the Project, they later on executed Loan No. PH-P141 for 5.5 billion yen. Meanwhile, the Natio

CASE DIGEST: UNIVERSITY PHYSICIANS SERVICES INC. - MANAGEMENT, INC., Petitioner vs. COMMISSIONER OF INTERNAL REVENUE, Respondent. (G.R. No. 205955; March 7, 2018) PRINCIPLE:  When a corporation overpays its income tax liability as adjusted at the close of the taxable year, it has two options: (1) to be refunded or issued a tax credit certificate, or (2) to carry over such overpayment to the succeeding taxable quarters to be applied as tax credit against income tax due. Once the carry-over option is taken, it becomes irrevocable such that the taxpayer cannot later on change its mind in order to claim a cash refund or the issuance of a tax credit certificate of the very same amount of overpayment or excess m. come tax credit. GENERAL ISSUE: Does the irrevocability rule apply exclusively to the carry-over option? FACTS:  UPSI-MI had, as of 31 December 2005, an outstanding amount of ₱2,331, 102.00 in excess and unutilized creditable withholding taxes. For the subsequent taxable yea

CASE DIGEST: Silicon Philippines, Inc. vs. Commissioner of Internal Revenue (G.R. No. 182737; March 2, 2016) FACTS:  SP claimed tax refund or issuance of TCC relating to its excess/unutlized input valued-added tax (VAT) for the last 3 quarters of 2001. Due to continuous inaction by the CIR on its claims amounting to 25 million pesos, SP filed a petition for review before the CTA Div. The CTA Div ruled against SP. The CTA Div ruled that, under the NIRC, TF or TC of unused input VAT is allowed only when the excess input is due to zero-rated or effectively zero-rated sales and (b) when the excess input is due to capital goods purchased by a VAT-registered person. To prove zero-rated export sales, one must show (a) sales invoice; (b) export declaration or bil of lading/airway bill as proof of actual shipment from the PH; and (3) bank credit advice or certificate of remittance proving payment of goods in foreign currency. The CTA Div found that SP presented nothing more than a certifi

Malacañang on Wednesday advised officials of the National Food Authority (NFA) and its policy-making body, the NFA Council, against blaming each other for the country’s insufficient rice supply and its increased prices. In a congressional hearing Tuesday, NFA officer-in-charge Tomas Escarez blamed “the bureaucracy” at the NFA Council for the delayed arrival of imported rice to prevent the stock from depleting. Escarez said the NFA requested for rice importation as early as October 2017 but the NFA Council only approved it in May this year. However, Department of Trade and Industry (DTI) Undersecretary Ruth Castelo, a member of the NFA Council, said it was NFA’s fault for submitting its rice supply inventory late. Castelo also blamed the NFA for making a declaration of rice shortage which led to a spike in rice prices. “Hindi po dapat nagsisisihan (They should stop blaming each other),” Presidential Spokesperson Harry Roque said in an interview over DZRH. SOURCES:  Azer Parr

Mere suddenness of the attack would not, by itself, constitute treachery. There is a further need to prove that appellant consciously and deliberately adopted the mode of attack to insure execution without risk to himself. (People vs. Calago; G.R. No. 141122, 22 April 2002, 381 SCRA 448)

Time and again, the Supreme Court has deferred to the trial court's factual findings and evaluation of the credibility of witnesses, especially when affirmed by the CA, in the absence of any clear showing that the trial court overlooked or misconstrued cogent facts and circumstances that would justify altering or revising such findings and evaluation. CRIMINAL LAW: Establishment of guilt beyond reasonable doubt is not diminished by the non-identification and non-presentation of the weapon actually used in the killing. REMEDIAL LAW: Test of credibility of witnesses and testimonies is based on knowledge, observation and experience. Beyond these are the miraculous, outside judicial jurisdiction. Verily, the issue of credibility, when it is decisive of the guilt or innocence of the accused, is determined by the conformity of the conflicting claims and recollections of the witnesses to common experience and to the observation of mankind as probable under the circumstances. It has

In this recent latest of Leus vs. St. Scholastica's College, the Supreme Court held that a female teacher working as a non-teaching staff in a sectarian school cannot be dismissed on grounds of premarital sexual relations even if it resulted in her getting pregnant. [1] Public and secular morality should determine the prevailing norms of conduct, not religious morality. [2] The employee's pregnancy out of wedlock is not a disgraceful or immoral conduct since she and the father of her child have no impediment to marry each other. (G.R. No. 187226; January 28, 2015) The morality referred to in the law is public and necessarily secular, not religious. Religious teachings as expressed in public debate may influence the civil public order but public moral disputes may be resolved only on grounds articulable in secular terms. Otherwise, if government relies upon religious beliefs in formulating public policies and morals, the resulting policies and morals would require conformity

CASE DIGEST: COMMISSIONER OF INTERNAL REVENUE, Petitioner, vs. BASF COATING + INKS PHILS., INC., Respondent. (G.R. No. 198677; November 26, 2014) 2/3 of BC's board members and stockholders decided to dissolve the corporation by cutting its 50-year term of existence (from 1990) short (only until March 31, 2001). Subsequently, BC moved out of its address in Las Piñas City and transferred to Carmelray Industrial Park, Canlubang, Calamba, Laguna On June 26, 2001, BC submitted 2 letters to BIR. The first was a notice of dissolution. The send was a manifestation with documents supporting said dissolution such as BIR Form 1905 which refers to an update of information contained in its tax registration. Thereafter, a FAN was sent to BC's former address in Las Piñas City. The FAN indicated an amount of 18 million pesos representing income tax, VAT, WTC, EWT and DST for the taxable year of 1999. On March 5, 2004, BIR's RDO No. 39, South Quezon City, issued a First Notice Before

CASE DIGEST: COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. NEXT MOBILE, INC. (FORMERLY NEXTEL COMMUNICATIONS PHILS., INC.), Respondent. (G.R. No. 212825, December 07, 2015) PRINCIPLE:  Section 203 of the 1997 NIRC mandates the BIR to assess internal revenue taxes within 3 years from the last day prescribed by law for the filing of the tax return or the actual date of filing of such return, whichever comes later. Hence, an assessment notice issued after the three-year prescriptive period is not valid and effective. Exceptions to this rule are provided under Section 222 of the NIRC. FACTS:  After submission of its returs for the year 2001, NM received a copy of the LOA given by the BIR to Revenue Officer (RO) NLC, covering January to December of 2001. 5 waivers were signed by NM's finance director to extend the prescriptive period of assessment. In 2005, BIR sent NM a Preliminary Assessment Notice (PAN) to which the latter replied. Later, NM received a Formal Letter of Deman

In Sarenas-Ochagabia v. Atty. Balmes Ocampos (A.C. No. 4401, 29 January 2004), a lawyer failed to file an appellants' brief, and the necessary Manifestation and Motion with the Court of Appeals. The Court noted that for the said offense, it had imposed penalties ranging from reprimand, warning with fine, suspension and, in aggravated cases, disbarment. Owing to his advanced age, the Court imposed the penalty of suspension for 3 months with a warning that a repetition thereof will be dealt with more severely.

Broadly speaking, there are four (4) grounds for the revocation or reduction of donation. Below is an outline of the rules. [1] Ground: Birth, adoption of minor child and reappearance of a child believed to be dead, made by a donor having no children or descendants. (Art. 760). How to revoke or reduce? Action for reduction insofar as donation exceeds portion that may be freely disposed of at birth, adoption and reappearance of child (inofficious donation), based on presumed legitimate of child (Art. 761) What is the prescriptive period?  4 years from birth of first child, adoption and reappearance (At. 763) What is the effect?  Property shall be returned; mortgage may be redeemed by donor subject to recovery from donee; if it can no longer be returned, value estimated as at time of donation; donee shall not return the fruits except from the filing of the complaint. [2] Ground: Non-compliance with conditions (At. 764) How to revoke or reduce?  Action for revocation at the

ARTICLE II OF THE 1987 CONSTITUTION DECLARATION OF PRINCIPLES AND STATE POLICIES PRINCIPLES Section 1. The Philippines is a democratic and republican State. Sovereignty resides in the people and all government authority emanates from them. [1] This is self-executing. [2] What is the manifestation that we are a democratic-republic State? We elect representatives who write laws. It is as if we write law ourselves. [3] "Demo" means people. "Crat" means write. The people write their laws. [4] Republican comes from "res publica" which means property of the people. [5] "All governmental authority emanates from our people. No unreasonable restrictions of the fundamental and preferred right to expression of the electorate during political contests no matter how seemingly benign will be tolerated." (Diocese of Bacolod vs. Comelec) [6] The electoral process and our election laws are the enabling mechanisms of this provision. [7] &qu

When the donation imposes upon the donee the obligation to pay the debts of the donor, if the clause does not contain any declaration to the contrary, the former is understood to be liable to pay only the debs which appear to have been previously contracted. In no case shall the donee be responsible for debts exceeding the value of the property donated, unless a contrary intention clearly appears. (Art. 758 of the Civil Code) There being no stipulation regarding the payment of debts, the donee shall be responsible therefor only when the donation has been made in fraud of creditors. The donation is always presumed to be in fraud of creditors, when at the time thereof, the donor did not reserve sufficient property to pay his debts prior to the donation. (Art. 759 of the Civil Code)

Article 562. Usufruct gives a right to enjoy the property of another with the obligation of preserving its form and substance, unless the title constituting it or the law otherwise provides. (Civil Code) [1] While the share was bought by Sime Darby and placed under the name of Mendoza, his title is only limited to the usufruct , or the use and enjoyment of the club’s facilities and privileges while employed with the company. In Thomson v. Court of Appeals, we held that a trust arises in favor of one who pays the purchase price of a property in the name of another, because of the presumption that he who pays for a thing intends a beneficial interest for himself. (Sime Darby Pilipinas, Inc. vs. Mendoza, 2013) [2] The complicating factor in the case is the nature and basis of Wilfredo’s possession; he was holding the property as usufructuary , although this right to de jure possession was also disputed before his death, hand in hand with the de facto possession that is subject of

A qualifying circumstance changes the nature of the crime. A generic aggravating circumstance, on the other hand, does not affect the designation of the crime; it merely provides for the imposition of the prescribed penalty in its maximum period. Thus, while a generic aggravating circumstance may be offset by a mitigating circumstance, a qualifying circumstance may not. (Davalos vs. People, G.R. No. 145229, 20 April 2006, 488 SCRA 84)

Fake news has been around that it was former President Corazon "Cory" Aquino who enacted the law on contractualization. First of all, there is no "law allowing contractualization" since the right to enter into a contract is a natural right. Second, the law regulating "endo" is found under Article 106 to 109 of the Labor Code of the Philippines (Presidential Decree [P.D.] 442). This law was enacted by former President Ferdinand Marcos during the time when he had legislative powers. WIKIPEDIA:  The Labor Code of the Philippines is the legal code governing employment practices and labor relations in the Philippines. It was enacted on Labor day, May 1, 1974 by Late President of the Philippines Ferdinand Marcos in the exercise of his then extant legislative powers. https://en.wikipedia.org/wiki/Labor_Code_of_the_Philippines

[1] Ownership is acquired by occupation and intellectual creation. [2] Ownership and other real rights over property are acquired and transmitted by law, by donation, by estate and intestate succession, and in consequence of certain contracts, by tradition. [3] They may also be acquired by means of prescription. (Art. 712 of the Civil Code) [4] Mode and title are different. [5] Mode is the process of acquiring or transferring ownership. When there is an effective mode of acquisition, ownership is acquired. [6] Title is that which gives a juridical justification for a mode, that is, it provides the cause for the acquisition of ownership.

Effects of Donations: [1] Donees subrogated to all the rights and actions which in case of eviction would pertain to the donor. (Art. 754) [2] There being no provision regarding payment of debt, donee shall be responsible for payment of donor’s debts only when donation made in fraud of creditors. (Art. 759) [3] Donation of same thing to two persons – Donee who first accepts shall be preferred. (Note: Article 744 is a mistake. Donation cannot be compared to a sale, because donation is a mode. Effects of Excessive/Inofficious Donations: [1] Art. 750 – may comprehend all of present property provided he reserves sufficient means for his support and those of his relatives whom he is legally obliged to support (Art. 750) [2] No person may give more by way of donation than he may give by will (Art. 752)

Employers have the freedom and prerogative, according to their discretion and best judgment, to regulate and control the time when workers should report for work and perform their respective functions. However, this power must not be exercised in bad faith. Sime Darby Pilipinas, Inc. v. NLRC:  The exercise of this prerogative is best exemplified in this case where it was held that management retains the prerogative to change the working hours of its employees whenever exigencies of the service so require. Manila Jockey Club Employees Labor Union – PTGWO, v. Manila Jockey Club, Inc.:  The validity of the exercise of the same prerogative to change the working hours was likewise confirmed by the Supreme Court in this case. It was found that while Section 1, Article IV of the CBA provides for a 7-hour work schedule from 9:00 a.m. to 12:00 noon and from 1:00 p.m. to 5:00 p.m. from Mondays to Saturdays, Section 2, Article XI thereof expressly reserves to respondent the prerogative to

He believes in the right to contraception, the right to divorce, the right to gay marriage, and promises to stand against the death penalty. Meet Senator Serge Osmeña III, three-time senator, self-proclaimed liberal, martial law detainee. In June 2016 after he landed 14th in the senatorial race, he spoke to Rappler reporter Patricia Evangelista on what it means to leave the senate floor. http://bit.ly/295ram6 Tatlong termino. 150 batas na ipinasa. Walang katulad. Kaya nga naman nakilala si Serge Osmeña bilang isa sa pinaka-masipag na naging Senador ng Pilipinas. Panahon na para ibalik si Serge sa Senado. RAPPLER:  I am Serge Osmeña. I’m 72 years old, and I’m about to be a former senator. I grew up with politics. My grandfather, Sergio Osmeña Sr. was in public service for 42 years. He was the first speaker the Philippine national assembly at the age of 29 and rose to the ranks, became a senator, and later on secretary, the first secretary of education, vice president, and then p

THE LAW:  ARTICLE XVII OF THE 1987 CONSTITUTION ON AMENDMENTS AND REVISIONS Section 1. Any amendment to, or revision of, this Constitution may be proposed by: 1. The Congress, upon a vote of three-fourths of all its Members; or 2. A constitutional convention. Section 2. Amendments to this Constitution may likewise be directly proposed by the people through initiative upon a petition of at least twelve per centum of the total number of registered voters, of which every legislative district must be represented by at least three per centum of the registered voters therein. No amendment under this section shall be authorized within five years following the ratification of this Constitution nor oftener than once every five years thereafter. The Congress shall provide for the implementation of the exercise of this right. Section 3. The Congress may, by a vote of two-thirds of all its Members, call a constitutional convention, or by a majority vote of all its Members, submit to the el

INSTRUCTIONS: If the statement is true, write "true." If not, explain briefly but substantially what makes it inaccurate. [1] The Constitution's Article I on national territory is binding upon all other states. [2] An archipelago is a body of water studded with islands. [3] The phrase "all other territories over which the Philippines has sovereignty or jurisdiction" under Article I refers only to those belonging to the Philippines at the time of the adoption of the 1987 Constitution. [4] US military bases are not a part of the Philippine territory. [5] The straight baseline method was used in the Treaty of Paris of 1898 between the US and Spain. [6] Cory Aquino was a de facto President of the Philippines. [7] The activity of the City of Makati of giving free coffins to poor families and giving free birthday cakes to senior citizens is a ministrant function. [8] A government that usurps by force or by voice of majority creates a de jure government. [9]

INSTRUCTIONS: For true-or-false (T/F) questions, write "true" if so and, if not, write "false" and briefly but substantially explain what makes the statement inaccurate. [1] So to improve the fishing methods and techniques of Filipino fishermen, the Bureau of Fisheries (BOF), with the approval of President My Real John, entered into a memorandum of agreement with Japan to allow Japanese fishermen to fish within 200 miles from the Philippine sea coasts. In exchange, Filipino fishermen shall be allowed to use Japanese fishing equipment and vessels. By this, Filipino fishermen can learn modern technology in fishing and canning. Rule on the validity of the agreement. [2] T/F. Islands outside the baseline are not part of the national territory of the Philippines. [3] Define the archipelagic doctrine of national territory, state its rationale; and explain how it is implemented through the straight baseline method. [4] Section 2 of RA 9522 declared the Kalayaan I