YUTIVO V COURT OF APPEALS

DOPCTRINE: CORPORATION LAW

YUTIVO VS. CTA (1 SCRA 160; 1961)
Southern Motors was actually owned and controlled by Yutivo as to make it a mere
subsidiary or branch of the latter created for the purpose of selling vehicles at retail.
Yutivo financed principally, if not wholly, the business of Southern Motors and actually
exceeded the credit of the latter . At all times, Yutivo, through the officers and directors
common to it and the Southern Motors exercised full control over the cash funds,
policies, expenditures and obligations of the latter. Hence, Southern Motors, being a
mere instrumentality or adjunct of Yutivo, the CTA correctly disregarded the technical
defense of separate corporate identity in order to arrive at the true tax liability of Yutivo.