Вы находитесь на странице: 1из 11

3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.

ChanRobles VirtualLawLibrary |chanrobles.com

Like Share 0 Tweet Share


Search


PhilippineSupremeCourtJurisprudence>Year2016>November2016Decisions>G.R. No. 210588, November
29, 2016 SECRETARY OF FINANCE CESAR B. PURISIMA AND COMMISSIONER OF INTERNAL REVENUE KIM S.
JACINTOH ENARES, Petitioners, v. REPRESENTATIVE CARMELO F. LAZATIN AND ECOZONE PLASTIC
ENTERPRISESCORPORATION,Respondents.:

Search

G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAAND
COMMISSIONEROFINTERNALREVENUEKIMS.JACINTOHENARES,Petitioners,v.REPRESENTATIVE
ChanRoblesOnLineBarReview CARMELOF.LAZATINANDECOZONEPLASTICENTERPRISESCORPORATION,Respondents.

ENBANC

G.R.No.210588,November29,2016

SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUE
KIMS.JACINTOHENARES,Petitioners,v.REPRESENTATIVECARMELOF.LAZATINAND
ECOZONEPLASTICENTERPRISESCORPORATION,Respondents.

DECISION

BRION,J.:

This is a direct recourse to this Court from the Regional Trial Court (RTC), Branch 58, Angeles City,
throughapetitionforreviewoncertiorari1underRule45oftheRulesofCourtonapurequestionof
law.ThepetitionseeksthereversaloftheNovember8,2013decision2oftheRTCinSCACaseNo.
12410. In the assailed decision, the RTC declared Revenue Regulation (RR) No. 22012
unconstitutionalandwithoutforceandeffect.

TheFacts

Inresponsetoreportsofsmugglingofpetroleumandpetroleumproductsandtoensurethecorrect
DebtKollectCompany,Inc. taxes are paid and collected, petitioner Secretary of Finance Cesar V. Purisima pursuant to his
authoritytointerprettaxlaws3andupontherecommendationofpetitionerCommissionerofInternal
Revenue(CIR)KimS.JacintoHenaressignedRR22012onFebruary17,2012.

The RR requires the payment of valueadded tax (VAT) and excise tax on the importation of all
petroleum and petroleum products coming directly from abroad and brought into the Philippines,
including Freeport and economic zones (FEZs).4 It then allows the credit or refund of any VAT or
excise tax paid if the taxpayer proves that the petroleum previously brought in has been sold to a
dulyregisteredFEZlocatorandusedpursuanttotheregisteredactivityofsuchlocator.5

In other words, an FEZ locator must first pay the required taxes upon entry into the FEZ of a
petroleum product, and must thereafter prove the use of the petroleum product for the locator's
registeredactivityinordertosecureacreditforthetaxespaid.

OnMarch7,2012,CarmeloF.Lazatin,inhiscapacityasPampangaFirstDistrictRepresentative,filed
apetitionforprohibitionandinjunction6againstthepetitionerstoannulandsetasideRR22012.

Lazatin posits that Republic Act No. (RA) 94007 treats the Clark Special Economic Zone and Clark
Freeport Zone (together hereinafter referred to as Clark FEZ) as a separate customs territory and
allows tax and dutyfree importations of raw materials, capital and equipment into the zone. Thus,
theimpositionofVATandexcisetax,evenontheimportationofpetroleumproductsintoFEZs(like
ChanRoblesIntellectualProperty ClarkFEZ),directlycontravenesthelaw.
Division
The respondent Ecozone Plastic Enterprises Corporation (EPEC) sought to intervene in the
proceedingsasacopetitionerandaccordinglyentereditsappearanceandmovedforleaveofcourt

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 1/11
3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.J
tofileitspetitioninintervention.8

EPEC claims that, as a Clark FEZ locator, it stands to suffer when RR 22012 is implemented. EPEC
insiststhatRR22012'smechanismofrequiringevenlocatorstopaythetaxfirstandtosubsequently
claimacreditortorefundthetaxespaideffectivelyremovesthelocators'taxexemptstatus.

The RTC initially issued a temporary restraining order to stay the implementation of RR 22012. It
eventuallyissuedawritofpreliminaryinjunctioninitsorderdatedApril4,2012.

The petitioners questioned the issuance of the writ. On May 17, 2012, they filed a petition for
certiorari9beforetheCourtofAppeals(CA)assailingtheRTC'sorder.TheCAgrantedthepetition10
anddeniedtherespondents'subsequentmotionforreconsideration.11

TherespondentsstoodtheirgroundbyfilingapetitionforreviewoncertioraribeforethisCourt(G.R.
No. 208387) to reinstate the RTC's injunction against the implementation of RR 22012, and by
moving for the issuance of a temporary restraining order and/or writ of preliminary injunction. We
deniedthemotionbutneverthelessrequiredthepetitionerstocommentonthepetition.

The proceedings before the RTC in the meanwhile continued. On April 18, 2012, petitioner Lazatin
amendedhisoriginalpetition,convertingittoapetitionfordeclaratoryrelief.12TheRTCadmittedthe
amendedpetitionandallowedEPECtointervene.

InitsdecisiondatedNovember8,2013,theRTCruledinfavorofLazatinandEPEC.

First,ontheproceduralaspect,theRTCheldthattheoriginalpetition'samendmentisallowedbythe
rules and that amendments are largely preferred it allowed the amendment in the exercise of its
soundjudicialdiscretiontoavoidmultiplicityofsuitsandtogivethepartiesanopportunitytothresh
outtheissuesandfinallyreachaconclusion.13

Second,theRTCheldthatLazatinandEPEChadlegalstandingtoquestionthevalidityofRR22012.
Lazatin'sallegationthatRR22012effectivelyamendsandmodifiesRA9400gavehimstandingasa
legislator: the amendment of a tax law is a power that belongs exclusively to Congress. Lazatin's
allegation, according to the RTC, sufficiently shows how his rights, privileges, and prerogatives as a

Download Chrome Browser memberofCongresswereimpairedbytheissuanceofRR22012.

The RTC also ruled that the case warrants a relaxation on the rules on legal standing because the
issues touched upon are of transcendental importance. The trial court considered the encompassing
effectthatRR22012mayhaveinthenumerousfreeportandeconomiczonesinthePhilippines,as
Install Ofine, Device-based wellasitspotentialimpactonhundredsofinvestorsoperatingwithinthezones.
Group Policies & More. Deploy The RTC then held that even if Lazatin does not have legal standing, EPEC's intervention cured this
Chrome MSI defect:EPEC,asalocatorwithintheClarkFEZ,wouldbeadverselyaffectedbytheimplementationof
RR22012.
enterprise.google.com/chrome
Finally,theRTCdeclaredRR22012unconstitutional.RR22012violatesRA9400becauseitimposes
taxes that, by law, are not due in the first place.14 Since RA 9400 clearly grants tax and dutyfree
incentives to Clark FEZ locators, a revocation of these incentives by an RR directly contravenes the
express intent of the Legislature.15 In effect, the petitioners encroached upon the prerogative to
enact,amend,orrepeallaws,whichtheConstitutionexclusivelygrantedtoCongress.
ThePetition

The petitioners anchor their present petition on two arguments: 1) respondents have no legal
standing,and2)RR22012isvalidandconstitutional.

The petitioners submit that the Lazatin and EPEC do not have legal standing to assail the validity of
RR22012.

First, the petitioners claim that Lazatin does not have the requisite legal standing as he failed to
November2016Jurisprudence exactlyshowhowtheimplementationofRR22012wouldimpairtheexercisehisofficialfunctions.
Respondent Lazatin merely generally alleged that his constitutional prerogatives to pass or amend
A.C. No. 7387, November 07, 2016 MANUEL lawsweregravelyimpairedorwereabouttobeimpairedbytheissuanceofRR22012.Hedidnot
ENRIQUEL.ZALAMEA,ANDMANUELJOSEL.ZALAMEA, specifythepowerthathe,asalegislator,wouldbeencroachedupon.
Petitioners,v.ATTY.RODOLFOP.DEGUZMAN,JR.AND
PERLAS DE GUZMAN, ANTONIO, VENTURANZA, While the Clark FEZ is within the district that respondent Lazatin represents, the petitioners
QUIZONVENTURANZA, AND HERROSA LAW FIRM,
emphasizethatLazatinfailedtoshowthatheisauthorizedtofileacaseonbehalfofthelocatorsin
Respondents.
theFEZ,thelocalgovernmentunit,orhisconstituentsingeneral.16Tothepetitioners,ifRR22012
G.R. No. 204419, November 07, 2016 PEOPLE OF ever caused injury to the locators or to any of Lazatin's constituents, only these injured parties
THE PHILIPPINES, Petitioner, v. HON. EDMAR P. possessthepersonalitytoquestionthepetitioners'actionsrespondentLazatincannotclaimthisright
CASTILLO, SR., AS PRESIDING JUDGE OF BRANCH 6, ontheirbehalf.17
REGIONAL TRIAL COURT, APARRI, CAGAYAN AND
JEOFREYJILRABINOYTALOZA,Respondent. The petitioners claim, too, that the RTC should not have brushed aside the rules on standing on
account of transcendental importance. To them, this case does not involve public funds, only a
G.R.No.217956,November16,2016REPUBLICOF speculative loss of profits upon the implementation of RR 22012 nor is Lazatin a party with more
THE PHILIPPINES, REPRESENTED BY MACTANCEBU
direct and specific interest to raise the issues in his petition.18 Citing Senate v. Ermita,19 the
INTERNATIONAL AIRPORT AUTHORITY (MCIAA),
Petitioner,v.LIMBONHAIANDSONS,Respondent.
petitionersarguethattherulesonstandingcannotberelaxed.

G.R. No. 212008, November 16, 2016 WILLIAM Second, petitioners also argue that EPEC does not have legal standing to intervene. That EPEC will
ENRIQUEZ AND NELIAVELA ENRIQUEZ, Petitioners, v. ultimately bear the VAT and excise tax as an enduser, is misguided.20 The burden of payment of
ISAROGLINETRANSPORT,INC.ANDVICTORSEDENIO, VAT and excise tax may be shifted to the buyer21 and this burden, from the point of view of the
Respondent. transfereeisnolongerataxbutmerelyacomponentofthecostofgoodspurchased.Thestatutory
liabilityforthetaxremainswiththeseller.Thus,EPECcannotsaythatwhentheburdenispassedon
A.C. No. 11059, November 09, 2016 JOSE toit,RR22012effectivelyimposestaxonitasaClarkFEZlocator.
ANTONIOF.BALINGIT,Complainant,v.ATTY.RENATO
M. CERVANTES AND ATTY. TEODORO B. DELARMENTE, ThepetitionerspointoutthatRR22012imposesan"advancetax"onlyuponimportersofpetroleum
Respondent.
products.IfEPECisindeedalocator,thenitenjoystaxanddutyexemptionsgrantedbyRA9400so
G.R.No.215198,November09,2016THEPEOPLE longasitdoesnotbringthepetroleumorpetroleumproductstothePhilippinecustomsterritory.22
OF THE PHILIPPINES, PlaintiffAppellee, v. JHUN
VILLALONYORDONO,AccusedAppellants. ThepetitionerslegallyarguethatRR22012isvalidandconstitutional.

G.R. No. 213221, November 09, 2016 PEOPLE OF First, petitioner submit that RR 22012's issuance and implementation are within their powers to
THE PHILIPPINES, PlaintiffAppellee, v. BIYAN undertake.23 RR 22012 is an administrative issuance that enjoys the presumption of validity in the
MOHAMMADYASDORIA.K.A."BONGBIYAN"ANDMINA mannerthatstatutesenjoythispresumptionthus,itcannotbenullifiedwithoutclearandconvincing
LADJAHASAN Y TOMBREO, ACCUSED, MINA evidencetothecontrary.24
LADJAHASANYTOMBREO,AccusedAppellant.
Second,petitionerscontendthatwhileRA9400doesgranttaxandcustomsdutyincentivestoClark
G.R.No.213934,November09,2016MARYANNG. FEZ locators, there are conditions before these benefits may be availed of. The locators cannot
VENZON, EDDIE D. GUTIERREZ, JOSE M. GUTIERREZ, invoke outright exemption from VAT and excise tax on its importations without first satisfying the
JR.ANDMONALIZAL.CABAL,Petitioners,v.ZAMECOII
conditionssetbyRA9400,thatis,theimportationmustnotberemovedfromtheFEZandintroduced
ELECTRIC COOPERATIVE, INC. AND ENGR. FIDEL S.
CORREA,GENERALMANAGER,Respondents. intothePhilippinecustomsterritory.25

G.R.No.208090,November09,2016FERDINAND These locators enjoy what petitioners call a qualified tax exemption. They must first pay the
V. TOMAS, Petitioner, v. CRIMINAL INVESTIGATION corresponding taxes on its imported petroleum. Then, they must submit the documents required
AND DETECTION GROUP (CIDG) ANTIORGANIZED

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 2/11
3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.J
CRIME DIVISION (AOCD) (CIDGAOCD) AND MYRNA UY underRR22012.Iftheyhavesufficientlyshownthattheimportedproductshavenotbeenremoved
TOMAS,Respondent. fromtheFEZ,theirearlierpaymentshallbesubjecttoarefund.
G.R.No.224302,November29,2016HON.PHILIP ThepetitionerslastlyarguethatRR22012doesnotwithdrawthelocators'taxexemptionprivilege.
A. AGUINALDO, HON. REYNALDO A. ALHAMBRA, HON. The regulation simply requires proof that a locator has complied with the conditions for tax
DANILO S. CRUZ, HON. BENJAMIN T. POZON, HON. exemption.Ifthelocatorcannotshowthatthegoodswereretainedand/orconsumedwithintheFEZ,
SALVADOR V. TIMBANG, JR., AND THE INTEGRATED
suchfailurecreatesthepresumptionthatthegoodshavebeenintroducedintothecustomsterritory
BAR OF THE PHILIPPINES (IBP), Petitioners, v. HIS
EXCELLENCY PRESIDENT BENIGNO SIMEON C. AQUINO withouttheappropriatepermits.26Ontheotherhand,iftheyhavedulyproventhedispositionofthe
III,HON.EXECUTIVESECRETARYPAQUITON.OCHOA, goodswithintheFEZ,their"advancepayment"issubjecttoarefund.Thus,tothepetitioners,tothe
HON. MICHAEL FREDERICK L. MUSNGI, HON. MA. extentthatarefundisallowable,thereisinrealityataxexemption.27
GERALDINE FAITH A. ECONG, HON. DANILO S.
SANDOVAL,HON.WILHELMINAB.JORGEWAGAN,HON. Counterarguments
ROSANA FE ROMEROMAGLAYA, HON. MERIANTHE
PACITAM.ZURAEK,HON.ELMOM.ALAMEDA,ANDHON. RespondentsLazatinandEPEC,maintainingthattheyhavestandingtoquestionitsvalidity,insistthat
VICTORIAC.FERNANDEZBERNARDO,Respondent. RR22012isunconstitutional.

G.R.Nos.21265657,November23,2016MAYOR Respondentshavestandingas
AMADO CORPUZ, JR., Petitioner, v. PEOPLE OF THE lawmakerandFEZlocator.
PHILIPPINESANDSANDIGANBAYAN,Respondents.
TherespondentsarguethatamemberofCongresshasstandingtoprotecttheprerogatives,powers,
G.R. No. 190385, November 16, 2016 UCPB
and privileges vested by the Constitution in his office.28 As a member of Congress, his standing to
GENERAL INSURANCE COMPANY, INC. Petitioner, v.
question executive issuances that infringe on the right of Congress to enact, amend, or repeal laws
HUGHESELECTRONICSCORPORATION,Respondent.
has already been recognized.29 He suffers substantial injury whenever the executive oversteps and
G.R. No. 209303, November 14, 2016 NATIONAL intrudesintohispowerasalawmaker.30
POWERCORPORATION,Petitioner,v.THEPROVINCIAL
TREASUREROFBENGUET,THEPROVINCIALASSESSOR On the other hand, the respondents point out that RR 22012 explicitly covers FEZs. Thus, being a
OFBENGUET,THEMUNICIPALTREASUREROFITOGON, ClarkFEZlocator,EPECisamongthemanybusinessesthatwouldhavebeendirectlyaffectedbyits
BENGUETANDTHEMUNICIPALASSESSOROFITOGON, implementation.31
BENGUET,Respondent.
RR22012illegallyimposestaxes
G.R.Nos.20941517,November15,2016JOCELYN
onClarkFEZs.
"JOY"LIMBUNGCARAS,Petitioner,v.COMMISSIONON
ELECTIONS (COMELEC) AND RICO RENTUZA, TherespondentsunderscorethatRA9400providesFEZlocatorscertainincentives,suchastaxand
Respondents.HERMENEGILDOS.CASTIL,Petitioner,v.
dutyfree importations of raw materials and capital equipment. These provisions of the law must be
COMMISSION ON ELECTIONS (COMELEC) AND RACHEL
B. AVENDULA, Respondents. JESUS AVENDULA, JR.,
interpreted in a way that will give full effect to law's policy and objective, which is to maximize the
DOMINGO RAMADA, JR. AND VICTOR RAMADA, benefitsderivedfromtheFEZsinpromotingeconomicandsocialdevelopment.32
Petitioners,v.COMMISSIONONELECTIONS(COMELEC),
MANUELO.CALAPRE,SATURNINOV.CINCO,FERNANV. They admit that the law subjects to taxes and duties the goods that were brought into the FEZ and
SALAS, ANTONIO DALUGDUGAN, FEDERICO C. JAPON, subsequentlyintroducedtothePhilippinecustomsterritory.However,contrarytopetitioners'position
SANTIAGO M. SANTIAGO, JACINTA O. MALUBAY AND thatlocators'taxanddutyexemptionsarequalified,theirincentivesapplyautomatically.
BELEN G. BUNGCAG, Respondents. G.R. No. 210002
ALDRIN B. PAMAOS, Petitioner, v. COMMISSION ON According to the respondents, petitioners' interpretation of the law contravenes the policy laid down
ELECTIONS, MANUEL O. CALAPRE, SATURNINO V. byRA9400,becauseitmakestheincentivessubjecttoasuspensivecondition.Theyclaimthatthe
CINCO, FERNAN V. SALAS, ANTONIO DALUGDUGAN, conditiontheremovalofthegoodsfromtheFEZandtheirsubsequentintroductiontothecustoms
FEDERICO C. JAPON, SANTIAGO M. SANTIAGO, territoryisresolutorylocatorsenjoythegrantedincentivesuponbringingthegoodsintotheFEZ.
JACINTA O. MALUBAY AND BELEN G. BUNGCAG, Itisonlywhenthegoodsareshowntohavebeenbroughtintothecustomsterritory will the proper
Respondent.
taxesanddutieshavetobepaid.33RR22012reversesthisprocessbyrequiringthelocatorstopay
A.M. No. 160201CTA, November 15, 2016 MA. "advance" taxes and duties first and to subsequently prove that they are entitled to a refund,
ROSARIOR.ESCAO,CHIEFJUDICIALSTAFFOFFICER, thereafter.34 RR 22012 indeed allows a refund, but a refund of taxes that were not due in the first
HUMAN RESOURCE DIVISION, OFFICE OF place.35
ADMINISTRATIVE AND FINANCE SERVICES, COURT OF
TAX APPEALS, Complainant, v. ADRIAN P. MANAOIS, The respondents add that even the refund mechanism under RR 22012 is problematic. They claim
HUMAN RESOURCE MANAGEMENT OFFICER III, HUMAN that RR 22012 only allows a refund when the petroleum products brought into the FEZ are
RESOURCE DIVISION, COURT OF TAX APPEALS, subsequentlysoldtoFEZlocatorsortoentitiesthatsimilarlyenjoyexemptionfromdirectandindirect
Respondent.
taxes.Theissuancedoesnotenvisionasituationwherethepetroleumproductsaredirectlybrought
A.M.No.P153386(FormerlyA.M.No.1507227 into the FEZ and are consumed by the same entity/locator.36 Further, the refund process takes a
RTC), November 15, 2016 OFFICE OF THE COURT considerablelengthoftimetosecure,thusrequiringcashoutlayonthepartoflocators37evenwhen
ADMINISTRATOR,Complainant,v.CLERKOFCOURTVI the claim for refund is granted, the refund will not be in cash, but in the form of a Tax Credit
MELVIN C. DEQUITO AND CASH CLERK ABNER C. ARO, Certificate(TCC).38
REGIONAL TRIAL COURT, SAN PABLO CITY, LAGUNA,
Respondent. Asthechallengedregulationdirectlycontravenesincentiveslegitimatelygrantedbyalegislativeact,
the respondents argue that in issuing RR 22012, the petitioners not only encroached upon
G.R.No.208350,November14,2016REPUBLICOF
congressional prerogatives and arrogated powers unto themselves they also effectively violated,
THE PHILIPPINES, Petitioner, v. HEIRS OF SPOUSES
TOMASAESTACIOANDEULALIOOCOL,Respondents. brushedaside,andrenderednugatorytherigorousprocessrequiredinenactingoramendinglaws.39

G.R.No.188751,November16,2016BONIFACIO Issues
NIEVA Y MONTERO, Petitioner, v. PEOPLE OF THE
PHILIPPINES,Respondent. Weshalldecidethefollowingissues:

G.R.No.225973,November08,2016SATURNINO I.WhetherrespondentsLazatinandEPEChavelegalstandingtobringtheactionofdeclaratory
C. OCAMPO, TRINIDAD H. REPUNO, BIENVENIDO reliefand
LUMBERA, BONIFACIO P. ILAGAN, NERI JAVIER
COLMENARES, MARIA CAROLINA P. ARAULLO, M.D., II.WhetherRR22012isvalidandconstitutional.
SAMAHAN NG EXDETAINEES LABAN SA DETENSYON AT
ARESTO (SELDA), REPRESENTED BY DIONITO TheCourt'sRuling
CABILLAS, CARMENCITA M. FLORENTINO, RODOLFO
DEL ROSARIO, FELIX C. DALISAY, AND DANILO M. Wedonotfindthepetitionmeritorious.
DELAFUENTE,*Petitioners,v.REARADMIRALERNESTO
C.ENRIQUEZ(INHISCAPACITYASTHEDEPUTYCHIEF I. Respondents have legal
OF STAFF FOR RESERVIST AND RETIREE AFFAIRS, standing to file petition
ARMED FORCES OF THE PHILIPPINES), THE GRAVE fordeclaratoryrelief.
SERVICES UNIT (PHILIPPINE ARMY), AND GENERAL
RICARDO R. VISAYA (IN HIS CAPACITY AS THE CHIEF
OF STAFF, ARMED FORCES OF THE PHILIPPINES),
The party seeking declaratory relief must have a legal interest in the controversy for the action to
DEFENSE SECRETARY DELFIN LORENZANA, AND HEIRS prosper.40Thisinterestmustbematerialnotmerelyincidental.Itmustbeaninterestthatwhichwill
OF FERDINAND E. MARCOS, REPRESENTED BY HIS beaffectedbythechallengeddecree,laworregulation.Itmustbeapresentsubstantialinterest,as
SURVIVING SPOUSE IMELDA ROMUALDEZ MARCOS, opposedtoamereexpectancyorafuture,contingent,subordinate,orconsequentialinterest.41
Respondents. RENE A.V. SAGUISAG, SR., RENE A.Q.
SAGUISAG,JR.,RENEA.C.SAGUISAGIII,Intervenors. Moreover,incasethepetitionfordeclaratoryreliefspecificallyinvolvesaquestionofconstitutionality,
G.R. No. 225984 REP. EDCEL C. LAGMAN, IN HIS thecourtswillnotassumejurisdictionoverthecaseunlessthepersonchallengingthevalidityofthe
PERSONAL AND OFFICIAL CAPACITIES AND AS A
actpossessestherequisitelegalstandingtoposethechallenge.42
MEMBER OF CONGRESS AND AS THE HONORARY
CHAIRPERSON OF THE FAMILIES OF VICTIMS OF
Locusstandiisapersonalandsubstantialinterestinacasesuchthatthepartyhassustainedorwill
INVOLUNTARY DISAPPEARANCE (FIND) FAMILIES OF
VICTIMS OF INVOLUNTARY DISAPPEARANCE (FIND),
sustain direct injury as a result of the challenged governmental act. The question is whether the
REPRESENTED BY ITS COCHAIRPERSON, NILDA L. challengingpartyallegessuchpersonalstakeintheoutcomeofthecontroversysoastoassurethe
SEVILLA REP. TEDDY BRAWNER BAGUILAT, JR. REP. existence of concrete adverseness that would sharpen the presentation of issues and illuminate the
TOMASITO S. VILLARIN REP. EDGAR R. ERICE AND courtinrulingontheconstitutionalquestionposed.43
REP. EMMANUEL A. BILLONES, Petitioners, v.
EXECUTIVE SECRETARY SALVADOR C. MEDIALDEA Werulethattherespondentssatisfythesestandards.
DEFENSE SECRETARY DELFIN N. LORENZANA AFP
CHIEF OF STAFF LT. GEN. RICARDO R. VISAYA AFP Lazatinhaslegalstandingas
DEPUTY CHIEF OF STAFF REAR ADMIRAL ERNESTO C. alegislator.
ENRIQUEZ AND HEIRS OF FERDINAND E. MARCOS,
REPRESENTED BY HIS SURVIVING SPOUSE IMELDA

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 3/11
3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.J
ROMUALDEZMARCOS,Respondents.G.R.No.226097 Lazatin filed the petition for declaratory relief before the RTC in his capacity as a member of
LORETTA ANN PARGASROSALES, HILDA B. NARCISO, Congress.44 He alleged that RR 22012 was issued directly contravening RA 9400, a legislative
AIDA F. SANTOSMARANAN, JOANN Q. MAGLIPON,
enactment.Thus,theregulationencroachedupontheCongress'exclusivepowertoenact,amend,or
ZENAIDAS.MIQUE,FEB.MANGAHAS,MA.CRISTINAP.
BAWAGAN, MILA D. AGUILAR, MINERVA G. GONZALES, repeallaws.45AccordingtoLazatin,amemberofCongresshasstandingtochallengethevalidityof
MA. CRISTINA V. RODRIGUEZ, LOUIE G. CRISMO, anexecutiveissuanceifittendstoimpairhisprerogativesasalegislator.46
FRANCISCOE.RODRIGO,JR.,LIWAYWAYD.ARCE,AND
ABDULMARI DE LEON IMAO, JR., Petitioners, v. WeagreewithLazatin.
EXECUTIVE SECRETARY SALVADOR C. MEDIALDEA,
DEFENSESECRETARYDELFINLORENZANA,AFPDEPUTY InBiraogov.ThePhilippineTruthCommission,47weruledthatlegislatorshavethelegalstandingto
CHIEF OF STAFF REAR ADMIRAL ERNESTO C. ensurethattheprerogatives,powers,andprivilegesvestedbytheConstitutionintheirofficeremain
ENRIQUEZ,AFPCHIEFOFSTAFFLT.GEN.RICARDOR. inviolate.Tothisend,membersofCongressareallowedtoquestionthevalidityofanyofficialaction
VISAYA, AND PHILIPPINE VETERANS AFFAIRS OFFICE
thatinfringesontheirprerogativesaslegislators.48
(PVAO) ADMINISTRATOR LT. GEN. ERNESTO G.
CAROLINA (RET.), Respondents. G.R. No. 226116
Thus,membersofCongresspossessthelegalstandingtoquestionactsthatamounttoausurpation
HEHERSON T. ALVAREZ, JOEL C. LAMANGAN, FRANCIS
X. MANGLAPUS, EDILBERTO C. DE JESUS, BELINDA O. of the legislative power of Congress.49 Legislative power is exclusively vested in the Legislature.
CUNANAN,CECILIAGUIDOTEALVAREZ,REXDEGRACIA When the implementing rules and regulations issued by the Executive contradict or add to what
LORES, SR., ARNOLD MARIE NOEL, CARLOS MANUEL, Congress has provided by legislation, the issuance of these rules amounts to an undue exercise of
EDMUND S. TAYAO, DANILO P. OLIVARES, NOEL F. legislativepowerandanencroachmentofCongress'prerogatives.
TRINIDAD,JESUSDELAFUENTE,REBECCAM.QUIJANO,
FR. BENIGNO BELTRAN, SVD, ROBERTO S. VERZOLA, To the same extent that the Legislature cannot surrender or abdicate its legislative power without
AUGUSTO A. LEGASTO, JR., AND JULIA KRISTINA P. violatingtheConstitution,50soalsoisaconstitutionalviolationcommittedwhenrulesandregulations
LEGASTO, Petitioners, v. EXECUTIVE SECRETARY implementing legislative enactments are contrary to existing statutes. No law can be amended by a
SALVADOR C. MEDIALDEA, DEFENSE SECRETARY
mereadministrativeruleissuedforitsimplementationadministrativeorexecutiveactsareinvalidif
DELFIN LORENZANA, AFP CHIEF OF STAFF LT. GEN.
RICARDO R. VISAYA, AFP DEPUTY CHIEF OF STAFF theycontravenethelawsortotheConstitution.51
REAR ADMIRAL ERNESTO C. ENRIQUEZ, AND
PHILIPPINE VETERANS AFFAIRS OFFICE (PVAO) OF Thus,theallegationthatRR.22012anexecutiveissuancepurportingtoimplementtheprovisions
THE DND, Respondents. G.R. No. 226117 ZAIRA oftheTaxCodedirectlycontravenesRA9400clothesamemberofCongresswithlegalstandingto
PATRICIA B. BANIAGA, JOHN ARVIN BUENAAGUA, questiontheissuancetopreventundueencroachmentoflegislativepowerbytheexecutive.
JOANNE ROSE SACE LIM, JUAN ANTONIO RAROGAL
MAGALANG, Petitioners, v. SECRETARY OF NATIONAL EPEChaslegalstandingasa
DEFENSEDELFINN.LORENZANA,AFPCHIEFOFSTAFF ClarkFEZlocator.
RICARDO R. VISAYA, ADMINISTRATOR OF THE
PHILIPPINE VETERANS AFFAIRS OFFICE ERNESTO G. EPEC intervened in the proceedings before the RTC based on the allegation that, as a Clark FEZ
CAROLINA,Respondents.G.R.No.226120ALGAMAR locator,itwillbedirectlyaffectedbytheimplementationofRR22012.52
A. LATIPH, Petitioner, v. SECRETARY DELFIN N.
LORENZANA,SUEDINHISCAPACITYASSECRETARYOF WeagreewithEPEC.
NATIONAL DEFENSE, LT. GEN. RICARDO R. VISAYA, IN
HIS CAPACITY AS CHIEF OF STAFF OF THE ARMED It is not disputed that RR 22012 relates to the imposition of VAT and excise tax and applies to all
FORCESOFTHEPHILIPPINESANDLT.GEN.ERNESTOG. petroleum and petroleum products that are imported directly from abroad to the Philippines,
CAROLINA (RET.), IN HIS CAPACITY AS
includingFEZs.53
ADMINISTRATOR, PHILIPPINE VETERANS AFFAIRS
OFFICE(PVAO),Respondents.G.R.No.226294LEILA
AsanenterpriselocatedintheClarkFEZ,itsimportationsofpetroleumandpetroleumproductswill
M. DE LIMA, IN HER CAPACITY AS SENATOR OF THE
REPUBLIC AND AS TAXPAYER, Petitioner, v. HON.
be directly affected by RR 22012. Thus, its interest in the subject matter a personal and
SALVADOR C. MEDIALDEA, DEFENSE SECRETARY substantialonegivesitlegalstandingtoquestiontheissuance'svalidity.
DELFIN LORENZANA, AFP CHIEF OF STAFF LT. GEN.
RICARDO R. VISAYA, UNDERSECRETARY ERNESTO G. In sum, the respondents' respective interests in this case are sufficiently substantial to be directly
CAROLINA,INHISCAPACITYASPHILIPPINEVETERANS affectedbytheimplementationofRR22012.TheRTCthereforedidnoterrwhenitgaveduecourse
AFFAIRSOFFICE(PVAO)ADMINISTRATORANDB/GEN. toLazatin'spetitionfordeclaratoryreliefaswellasPEC'spetitioninintervention.
RESTITUTO L. AGUILAR, IN HIS CAPACITY AS SHRINE
CURATOR AND CHIEF VETERANS MEMORIAL AND Inlightofthisruling,weseenoneedtoruleontheclaimedtranscendentalimportanceoftheissues
HISTORICAL DIVISION AND HEIRS OF FERDINAND raised.
EDRALINMARCOS,Respondent.
II. RR 22012 is invalid
G.R. No. 189026, November 09, 2016 PHILIPPINE andunconstitutional.
TELEGRAPH TELEPHONE CORP., Petitioner, v. SMART
COMMUNICATIONS,INC.,Respondent.
On the merits of the case, we rule that RR 22012 is invalid and unconstitutional because: a) it
G.R. No. 192369, November 09, 2016 MARIA
illegally imposes taxes upon FEZ enterprises, which, by law, enjoy taxexempt status, and b) it
VICTORIA TOLENTINOPRIETO, Petitioner, v. ROBERT effectively amends the law (i.e., RA 7227, as amended by RA 9400) and thereby encroaches upon
S. ELVAS, Respondent. G.R. No. 193685 ROBERT S. thelegislativeauthorityreservedexclusivelybytheConstitutionforCongress.
ELVAS, Petitioner, v. INNSBRUCK INTERNATIONAL
TRADINGAND/ORMARIVICTOLENTINO(A.K.A.MARIA FEZenterprisesenjoytaxand
VICTORIATOLENTINOPRIETO),Respondents. dutyfreeincentivesonits
importations.
G.R.No.222730,November07,2016BUENAFLOR
CAR SERVICES, INC., Petitioner, v. CEZAR DURUMPILI In1992,CongressenactedRA7227otherwiseknownasthe"BasesConversionandDevelopmentAct
DAVID,JR.,Respondent. of1992"toenhancethebenefitstobederivedfromtheSubicandClarkmilitaryreservations.54 RA
7227establishedtheSubicSpecialeconomiczoneandgrantedsuchspecialterritoryvarioustaxand
G.R. No. 190203, November 07, 2016 dutyincentives.
POWERHOUSE STAFFBUILDERS INTERNATIONAL, INC.,
Petitioner,v.ROMELIAREY,LIZACABAD,EVANGELINE ToeffectivelyextendthesamebenefitsenjoyedinSubictotheClarkFEZ,thelegislatureenactedRA
NICMIC,EVALAMEYRA,ROSARIOABORDAJE,LILYBETH
MAGALANG, VENIA BUYAG, JAYNALYN NOLLEDO, IREN
9400toamendRA7227.55Subsequently,theDepartmentofFinanceissuedDepartmentOrderNo.3
NICOLAS, AILEEN SAMALEA, SUSAN YBAEZ CHERYL 200856toimplementRA9400(ImplementingRules).
ANN ORIA, MA. LIZA SERASPI, KATHERINE ORACION,
AND JEJ INTERNATIONAL MANPOWER SERVICES UnderRA9400anditsImplementingRules,ClarkFEZisconsideredacustomsterritoryseparate and
CORPORATION,Respondents. distinct from the Philippines customs territory. Thus, as opposed to importations into and
establishmentsinthePhilippinescustomsterritory,57whicharefullysubjecttoPhilippinecustomsand
G.R. No. 223290, November 07, 2016 WOODROW
taxlaws,importationsintoandestablishmentslocatedwithintheClarkFEZ(FEZEnterprises)58 enjoy
B.CAMASO,Petitioner,v.TSMSHIPPING(PHILS),INC.,
UTKILEN,AND/ORJONESTULOD,Respondents. specialincentives,includingtaxanddutyfreeimportation.59Morespecifically,ClarkFEZenterprises
shallbeentitledtothefreeportstatusofthezoneanda5%preferentialincometaxrateonitsgross
G.R. No. 215047, November 23, 2016 UNIVERSAL income,inlieuofnationalandlocaltaxes.60
CANNING INC., MS. MA. LOURDES A. LOSARIA,
PERSONNELOFFICER,ANDENGR.ROGELIOA.DESOSA, RA9400anditsImplementingRulesgrantthefollowing:
PLANT MANAGER, Petitioners, v. COURT OF APPEALS
AND DANTE SAROSAL, FRANCISCO DUMAGAL, JR., First,thelawprovidesthatimportationsofrawmaterialsandcapitalequipmentintotheFEZsshallbe
NELSON E. FRANCISCO, ELMER C. SAROMINES AND tax and dutyfree. It is the specific transaction (i.e., importation) that is exempt from taxes and
SAMUELD.CORONEL,Respondents. duties.

G.R. No. 219430, November 07, 2016 JINKY S. Second,thelawalsograntsFEZenterprisestaxanddutyfreeimportationandapreferentialratein


STA. ISABEL, Petitioner, v. PERLA COMPAIA* DE the payment of income tax, in lieu of all national and local taxes. These incentives exempt the
SEGUROS,INC.,Respondent. establishmentitselffromtaxation.
G.R. No. 221897, November 07, 2016 ISIDRO Thus,theLegislatureintendedFEZstoenjoytaxincentivesingeneralwhetherwithrespecttothe
QUEBRAL, ALBERTO ESQUILLO, RENANTE SALINSAN,
transactions that take place within its special jurisdiction, or the persons/establishments within the
JEROME MACANDOG, EDGARDO GAYORGOR, JIM
jurisdiction.Fromthisperspective,thetaxincentivesenjoyedbyFEZenterprisesmustbeunderstood
ROBERT PERFECTO, NOEL PERFECTO, DENNIS
PAGAYON,ANDHERCULANOMACANDOGPetitioners,v.
tonecessarilyincludethetaxexemptionofimportationsofselectedarticlesintotheFEZ.
ANGBUS CONSTRUCTION, INC. AND ANGELO
BUSTAMANTE,Respondents. WehaveruledinthepastthatFEZenterprises'taxexemptionsmustbeinterpretedwithinthecontext
andinamannerthatpromotesthelegislativeintentofRA722761and,byextension,RA9400.Thus,
G.R. No. 221465, November 16, 2016 PEOPLE OF we recognized that FEZ enterprises are exempt from both direct and indirect internal revenue
THEPHILIPPINES,PlaintiffAppellee,v.RODELIOLOPEZ taxes.62Inparticular,theyareconsideredVATexemptentities.63
YCAPULI,AccusedAppellant.
In line with this comprehensive interpretation, we rule that the tax exemption enjoyed by FEZ
enterprisescoversinternalrevenuetaxesimposedongoodsbroughtintotheFEZ,includingtheClark

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 4/11
3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.J
G.R. No. 160864, November 16, 2016 PEOPLE OF FEZ,suchasVATandexcisetax.
THE PHILIPPINES, Petitioner, v. EDUARDO M.
COJUANGCO, JR., Respondent. G.R. No. 160897 RR22012illegallyimposesVATandexcise
REPUBLICOFTHEPHILIPPINES,Petitioner,v.EDUARDO taxongoodsbroughtintotheFEZs.
M.COJUANGCO,JR.,Respondent.
Section3ofRR22012providesthefollowing:
I.P.I. No. 15227CAJ, November 29, 2016 RE:
VERIFIED COMPLAINT DATED 17 NOVEMBER 2014 OF First, whenever petroleum and petroleum products are imported and/or brought directly to the
DOLORA CADIZ KHANNA AGAINST HON. EDGARDO L. Philippines,theimporterofthesegoodsisrequiredtopaythecorrespondingVATandexcisetaxdue
DELOS SANTOS, HON. MARILYN B. LAGURAYAP AND ontheimportation.
HON. JHOSEP Y. LOPEZ, ASSOCIATE JUSTICES, COURT
OF APPEALS, JUDGE RONALD H. EXMUNDO, REGIONAL Second, the importer, as the payor of the taxes, may subsequently seek a refund of the amount
TRIAL COURT, BRANCH 4, KALIBO, AKLAN, JUDGE
previouslypaidbyfilingacorrespondingclaimwiththeBureauofCustoms(BOC).
FRICIA C. GOMEZGUILLEN, BRANCH 15,
METROPOLITAN TRIAL COURT, MANILA AND JUAN S.
Third,theclaimshallonlybegranteduponshowingthatthenecessaryconditionhasbeenfulfilled.
APOLINAR, SHERIFF III, BRANCH 17, METROPOLITAN
TRIALCOURT,MANILA.
At first glance, this imposition a mere tax administration measure according to the petitioners
appearstobeconsistentwiththetaxationofsimilarimportedarticlesundertheTaxCode,specifically
G.R. No. 202114, November 09, 2016 ELMER A.
APINES, Petitioner, v. ELBURG SHIPMANAGEMENT underitsSections10764and14865(inrelationwithSections12966and13167).
PHILIPPINES, INC., AND/OR DANILO F. VENIDA,
Respondents. However, RR 22012 explicitly covers even petroleum and petroleum products imported and/or
broughtintothevariousFEZsinthePhilippines.Hence,whenanFEZenterprisebringspetroleumand
G.R. No. 181007, November 21, 2016 petroleum products into the FEZ, under RR 22012, it shall be considered an importer liable for the
COMMISSIONER OF CUSTOMS, Petitioner, v. WILLIAM taxesdueontheseproducts.
SINGSON AND TRITON SHIPPING CORPORATION,
Respondents. Thecruxofthecontroversycanbefoundinthisfeatureofthechallengedregulation.

G.R. No. 213488, November 07, 2016 TOYOTA ThepetitionersassertthatRR22012simplyimplementstheprovisionsoftheTaxCodeoncollection


PASIG, INC., Petitioner, v. VILMA S. DE PERALTA, ofinternalrevenuetaxes,morespecificallyVATandexcisetax,ontheimportationofpetroleumand
Respondent. petroleumproducts.Tothem,FEZenterprisesenjoyaqualifiedtaxexemptionsuchthattheyhaveto
pay the tax due on the importation first, and thereafter claim a refund, which shall be allowed only
G.R.No.190667,November07,2016COCACOLA uponshowingthatthegoodswerenotintroducedtothePhilippinecustomsterritory.
BOTTLERS PHILIPPINES, INC., Petitioner, v. SPOUSES
JOSE R. BERNARDO AND LILIBETH R. BERNARDO, Ontheotherhand,therespondentscontendthatRR22012imposestaxesonFEZenterprises,which
DOINGBUSINESSUNDERTHENAMEANDSTYLE"JOLLY
inthefirstplacearenotliablefortaxes.TheyemphasizethatthetaxincentivesunderRA9400apply
BEVERAGEENTERPRISES,"Respondents.
automatically upon the importation of the goods. The proper taxes on the importation shall only be
G.R. No. 194417, November 23, 2016 HEIRS OF
due if the enterprises can later show that the goods were subsequently introduced to the Philippine
TEODORO CADELIA, REPRESENTED BY SOLEDAD customsterritory.
CADIZ VDA. DE CADELIA, Petitioners, v. FRANCISCO
CADIZ, CELESTINO DELA CRUZ, ANTONIO VICTORIA, SincethetaxexemptionsenjoyedbyFEZenterprisesunderthelawextendeventoVATandexcise
HEIRS OF TELESFORO VILLAR REPRESENTED BY tax,aswediscussedabove,itfollowsandweaccordinglyrulethatthetaxesimposedbySection3of
SAMUEL VILLAR, FRANCISCO VICTORIA AND MAGNO RR 22012 directly contravene these exemptions. First, the regulation erroneously considers
GANTE,RespondentsHON.JOSEC.REYES,JR.,INHIS petroleum and petroleum products brought into a FEZ as taxable importations. Second, it
CAPACITY AS PRESIDING JUSTICE, HON. NORMANDIE unreasonablyburdensFEZenterprisesbymakingthempaythecorrespondingtaxesanobligation
PIZARRO, IN HIS CAPACITY AS MEMBER, AND HON. fromwhichthelawspecificallyexemptsthemevenifthereisasubsequentopportunitytorefund
RICARDO R. ROSARIO, IN HIS CAPACITY AS MEMBER thepaymentsmade.
OF THE COURT OF APPEALS SPECIAL FORMER THIRD
DIVISION,PublicRespondents. Petroleumandpetroleumproductsbrought
intotheFEZandwhichremainthereinare
G.R. No. 214772, November 21, 2016 PEOPLE OF
THE PHILIPPINES, PlaintiffAppellee, v. ELSON nottaxableimportations.
SANTUILLE @ "BORDADO" @ ELTON SANTUILLE @
"BORDADO,"AccusedAppellant. RR 22012 clearly imposes VAT and excise tax on the importation of petroleum and petroleum
products into FEZs. Strictly speaking, however, articles brought into these FEZs are not taxable
G.R. No. 185082, November 28, 2016 MANDAUE importationsunderthelawbasedonthefollowingconsiderations:
REALTY & RESOURCES CORPORATION AND MANDAUE
CITY REGISTER OF DEEDS, Petitioners, v. THE COURT
First, importation refers to bringing goods from abroad into the Philippine customs jurisdiction. It
OF APPEALS AND BANGKO SENTRAL NG PILIPINAS,
beginsfromthetimethegoodsenterthePhilippinejurisdictionandisdeemedterminatedwhenthe
Respondents.
applicabletaxesanddutieshavebeenpaidorthegoodshaveleftthejurisdictionoftheBOC.68
G.R. No. 161425, November 23, 2016 ANIANO
DESIERTO (SUBSTITUTED BY SIMEON V. MARCELO) Second,undertheTaxCode,importedgoodsaresubjecttoVATandexcisetax.Thesetaxesshallbe
AND MAUCENCIA ORDONEZ, Petitioners, v. RUTH paidpriortothereleaseofthegoodsfromcustomscustody.69Also,forVATpurposes,70an importer
EPISTOLAANDRODOLFOGAMIDO,Respondents. referstoanypersonwhobringsgoodsintothePhilippines.

G.R. No. 215759, November 28, 2016 HEIRS OF Third,thePhilippineVATsystemadherestothecrossborderdoctrine.71Underthisrule,noVATshall


ANDRESNAYA:TERESITAB.NAYA,NORMAN.ORBISO, beimposedtoformpartofthecostofthegoodsdestinedforconsumptionoutside the Philippine
CARMENCITA N. FERNAN, AND NARCISO P. NAYA,
Petitioners, v. ORLANDO P. NAYA AND SPOUSES
customs territory.72 Thus, we have already ruled before that an FEZ enterprise cannot be directly
HONESIMOC.RUIZANDGLORIAS.RUIZ,Respondents. chargedfortheVATonitssales,norcanVATbepassedontothemindirectlyasaddedcosttotheir
purchases.73
G.R.No.200726,November09,2016REPUBLICOF
THE PHILIPPINES, Petitioner, v. MATEO LAO, Fourth, laws such as RA 7227, RA 7916, and RA 9400 have established certain special areas as
Respondent. separate customs territories.74 In this regard, we have already held that such jurisdictions, such as
theClarkFEZ,are,bylegalfiction,foreignterritories.75
G.R.No.188047,November28,2016LIGHTRAIL
TRANSIT AUTHORITY, Petitioner, v. BIENVENIDO R.
Fifth,theImplementingRulesprovidesthatgoodsinitiallyintroduced into the FEZs and subsequently
ALVAREZ, CARLOS S. VELASCO, ASCENCION A.
brought out therefrom and introduced into the Philippine customs territory shall be considered as
GARGALICANO,MARLONE.AGUINALDO,PETRONILOT.
LEGASPI, BONIFACIO A. ESTOPIA, ANDRE A. DELA importationsandtherebysubjecttotheVAT.76OnesuchinstanceisthesalebyanyFEZenterpriseto
MERCED,JOSENOVIERD.BAYOT,ROLANDOAMAZONA a customer located in the customs territory, which the VAT regulations refer to as a technical
ANDMARLINOHERRERA,Respondents. importation.77

G.R. No. 197634, November 28, 2016 JULIUS B. Wefinditclearfromallthesethatwhengoods(e.g.,petroleumandpetroleumproducts)arebrought


CAMPOL, Petitioner, v. MAYOR RONALD S. BALAOAS intoanFEZ,the goods remain to be in foreign territory and are not therefore goods introduced into
AND VICEMAYOR DOMINADOR I. SIANEN, PhilippinecustomsterritorysubjecttoPhilippinecustomsandtaxlaws.78
Respondents.
Stated differently, goods brought into and traded within an FEZ are generally beyond the reach of
G.R. No. 215640, November 28, 2016 NESTOR
nationalinternalrevenuetaxesandcustomsdutiesenforcedinthePhilippinecustomsterritory.This
CABRERA, Petitioner, v. ARNEL CLARIN AND WIFE
MILAGROSBARRIOSANDHUSBANDAURORASERAFIN
is consistent with the incentive granted to FEZs exempting the importation itself from taxes and
AND HUSBAND AND BONIFACIO MORENO AND WIFE, duties.
Respondents.
Therefore, the act of bringing the goods into an FEZ is not a taxable importation. As long as the
G.R.No.215341,November28,2016THEPEOPLE goodsremain(e.g.,saleand/orconsumptionofthearticlewithintheFEZ)intheFEZorreexported
OF THE PHILIPPINES, PlaintiffAppellee, v. MARLON to another foreign jurisdiction, they shall continue to be taxfree.79 However, once the goods are
MANSONYRESULTAY,AccusedAppellant. introduced into the Philippine customs territory, it ceases to enjoy the tax privileges accorded to
FEZs.Itshallthenbeconsideredasanimportationsubjecttoallapplicablenationalinternalrevenue
G.R. No. 213453, November 29, 2016 PHILIPPINE taxesandcustomsduties.
HEALTH INSURANCE CORPORATION, Petitioner, v.
COMMISSION ON AUDIT, MA. GRACIA PULIDO TAN, ThetaxexemptiongrantedtoFEZ
CHAIRPERSON AND JANET D. NACION, DIRECTOR IV, enterprisesisanimmunityfromtaxliability
Respondents.
andfromthepaymentofthetax.
I.P.I. No. 16241CAJ, November 29, 2016
TherespondentsclaimthatwhenRR22012wasissued,petroleumandpetroleumproductsbrought
CLEMENTE F. ATOC, Complainant, v. EDGARDO A.
into the FEZ by FEZ enterprises suddenly became subject to VAT and excise tax, in direct
CAMELLO,OSCARV.BADELLESANDPERPETUAT.ATAL
PAO, ASSOCIATE JUSTICES, COURT OF APPEALS,
contravention of RA 9400 (with respect to Clark FEZ enterprises). Such imposition is not authorized
CAGAYANDEOROCITY.Respondents. underanylaw,includingtheTaxCode.80

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 5/11
3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.J
On the other hand, the petitioners argue that RR 22012 does not withdraw the tax exemption
G.R. No. 210316, November 28, 2016 THE privilegesofFEZenterprises.Astheirtaxexemptionismerelyqualified,theycannotinvokeoutright
SECURITIES AND EXCHANGE COMMISSION (SEC) exemption. Thus, FEZ enterprises are required to pay internal revenue taxes first on their imported
CHAIRPERSONTERESITAJ.HERBOSA,COMMISSIONER petroleum under RR 22012. They may then refund their previous payment upon showing that the
MA. JUANITA E. CUETO, COMMISIONER RAUL J.
condition under RA 9400 has been satisfied that is, the goods have not been introduced to the
PALABRICA, COMMISSIONER MANUEL HUBERTO B.
GAITE, COMMISIONER ELADIO M. JALA, AND THE SEC Philippinescustomsterritory.81Tothepetitioners,totheextentthatarefundisallowable,thereisstill
ENFORCEMENT AND PROSECUTION DEPARTMENT, inrealityataxexemption.82
Petitioners, v. CJH DEVELOPMENT CORPORATION AND
CJH SUITES CORPORATION, HEREIN REPRESENTED BY Wedisagreewiththiscontention.
ITS EXECUTIVE VICEPRESIDENT AND CHIEF
OPERATING OFFICER, ALFREDO R. YIGUEZ III, First, FEZ enterprises bringing goods into the FEZ should not be considered as importers subject to
Respondents. tax in the same manner that the very act of bringing goods into these special territories does not
makethemtaxableimportations.WeemphasizethattheexemptionfromtaxesanddutiesunderRA
Decisions/SignedResolutions 9400 are granted not only to importations into the FEZ, but also specifically to each FEZ enterprise.
Asdiscussed,thetaxexemptionenjoyedbyFEZenterprises necessarily includes the tax exemption
G.R. No. 217379, November 23, 2016 PEOPLE OF oftheimportationsofselectedarticlesintotheFEZ.
THE PHILIPPINES, PlaintiffAppellee, v. EDUARDO
MARMOLYBAUSO,JR.,AccusedAppellant. Second, the essence of a tax exemption is the immunity or freedom from a charge or burden to
G.R. No. 182201, November 14, 2016 UNIVERSAL
which others are subjected.83 It is a waiver of the government's right to collect84 the amounts that
INTERNATIONAL INVESTMENT (BVI) LIMITED, would have been collectible under our tax laws. Thus, when the law speaks of a tax exemption, it
Petitioner, v. RAY BURTON DEVELOPMENT shouldbeunderstoodasfreedomfromtheimpositionandpaymentofaparticulartax.
CORPORATION, Respondent. G.R. No. 185815,
November 14, 2016 UNIVERSAL INTERNATIONAL Basedonthispremise,werulethattherefundmechanismprovidedby RR 22012 does not amount
INVESTMENT(BVI)LIMITED,Petitioner,v.RAYBURTON to a tax exemption. Even if the possibility of a subsequent refund exists, the fact remains that FEZ
DEVELOPMENTCORPORATION,Respondent. enterprisesmuststillspendmoneyandotherresourcestopayforsomethingtheyshouldbeimmune
tointhefirstplace.Thiscompletelycontradictstheessenceoftheirtaxexemption.
G.R.No.210588,November29,2016SECRETARY
OF FINANCE CESAR B. PURISIMA AND COMMISSIONER In the same vein, we cannot agree with the view that FEZ enterprises have the duty to prove their
OF INTERNAL REVENUE KIM S. JACINTOHENARES, entitlement to tax exemption first before fully enjoying the same we find it illogical to determine
Petitioners, v. REPRESENTATIVE CARMELO F. LAZATIN whether a person is exempted from tax without first determining if he is subject to the tax being
AND ECOZONE PLASTIC ENTERPRISES CORPORATION, imposed.Wehaveremindedthetaxauthoritiestodeterminefirstifapersonisliableforaparticular
Respondents. tax, applying the rule of strict interpretation of tax laws, before asking him to prove his exemption
G.R. No. 201883, November 16, 2016 SPOUSES
therefrom.85 Indeed, as entities exempted on taxes on importations, FEZ enterprises are clearly
DESIDERIO AND TERESA DOMINGO, Petitioners, v. beyond the coverage of any law imposing those very charges. There is no justifiable reason to
SPOUSES EMMANUEL AND TITA MANZANO, FRANKLIN requirethemtoprovethattheyareexemptedfromit.
ESTABILLO,ANDCARMELITAAQUINO,Respondents.
Moreimportantly,wehavealsorecognizedthattheexemptionfromlocalandnationaltaxesgranted
G.R. No. 209098, November 14, 2016 JUAN B. underRA7227,asamendedbyRA9400,areipsofactoaccordedtoFEZs.Incaseofdoubt,conflicts
HERNANDEZ, Petitioner, v. CROSSWORLD MARINE withrespecttosuchtaxexemptionprivilegeshallberesolvedinfavorofthesespecialterritories.86
SERVICES, INC., MYKONOS SHIPPING CO., LTD., AND
ELEAZARDIAZ,Respondents. RR22012isunconstitutional.

G.R. No. 194412, November 16, 2016 SAMSODEN According to the respondents, the power to enact, amend, or repeal laws belong exclusively to
PANGCATAN, Petitioner, v. ALEXANDRO "DODONG" Congress.87InpassingRR22012,petitionersillegallyamendedthelawapowersolelyvestedon
MAGHUYOP AND BELINDO BANKIAO, Respondents.
theLegislature.
G.R. No. 194566, November 16, 2016 ALEXANDRO
"DODONG" MAGHUYOP AND BELINDO BANKIAO,
Weagreewiththerespondents.
Petitioners,v.SAMSODENPANGCATAN,Respondent.
Thepowerofthepetitionerstointerprettaxlawsisnotabsolute.Theruleisthatregulationsmaynot
G.R.No.195834,November09,2016GUILLERMO
enlarge, alter, restrict, or otherwise go beyond the provisions of the law they administer
SALVADOR,REMEDIOSCASTRO,REPRESENTEDBYPAZ
"CHIT" CASTRO, LEONILA GUEVARRA, FELIPE
administrators and implementors cannot engraft additional requirements not contemplated by the
MARIANO, RICARDO DE GUZMAN, VIRGILIO JIMENEZ, legislature.88
REPRESENTED BY JOSIE JIMENEZ, ASUNCION JUAMIZ,
ROLANDO BATANG, CARMENCITA SAMSON, AUGUSTO ItisworthytonotethatRR22012doesnotevenrefertoaspecificTaxCodeprovisionitwishesto
TORTOSA, REPRESENTED BY FERNANDO TORTOSA, implement. While it purportedly establishes mere administration measures for the collection of VAT
SUSANA MORANTE, LUZVIMINDA BULARAN, LUZ andexcisetaxontheimportationofpetroleumandpetroleumproducts,notoncediditmentionthe
OROZCO, JOSE SAPICO, LEONARDO PALAD, ABEL pertinentchaptersoftheTaxCodeonVATandexcisetax.
BAKING, REPRESENTED BY ABELINA BAKING,
GRACIANO ARNALDO, REPRESENTED BY LUDY Whilewerecognizepetitioners'essentialrationaleinissuingRR22012,theproceduresproposedby
ARNALDO, JUDITH HIDALGO, AND IGMIDIO the issuance cannot be implemented at the expense of entities that have been clearly granted
JUSTINIANO, CIRIACO MIJARES, REPRESENTED BY statutorytaximmunity.
FREDEZWINDA MIJARES, JENNIFER MORANTE,
TERESITA DIALA, AND ANITA P. SALAR, Petitioners, v. Tax exemptions are granted for specific public interests that the Legislature considers sufficient to
PATRICIA, INC., RESPONDENT. THE CITY OF MANILA
offset the monetary loss in the grant of exemptions.89 To limit the taxfree importation privilege of
ANDCIRIACOC.MIJARES,IntervenorsAppellees.
FEZenterprisesbyrequiringthemtopaysubjecttoarefundclearlyrunscountertotheLegislature's
G.R. No. 172539, November 16, 2016 ALBERTO intenttocreateafreeportwherethe"freeflowofgoodsorcapitalwithin,into,andoutofthezones"
GARONG Y VILLANUEVA, Petitioner, v. PEOPLE OF THE isensured.90
PHILIPPINES,Respondent.
Finally, the State's inherent power to tax is vested exclusively in the Legislature.91 We have since
G.R. No. 200150, November 07, 2016 CATHERINE ruled that the power to tax includes the power to grant tax exemptions.92 Thus, the imposition of
CHING, LORENZO CHING, LAURENCE CHING, AND
taxes, as well as the grant and withdrawal of tax exemptions, shall only be valid pursuant to a
CHRISTINE CHING, Petitioners, v. QUEZON CITY
legislativeenactment.
SPORTS CLUB, INC. MEMBERS OF THE BOARD OF
DIRECTORS, NAMELY: ANTONIO T. CHUA, MARGARET
AsRR22012,anexecutiveissuance,attemptstowithdrawthetaxincentivesclearlyaccordedbythe
MARYA.RODAS,ALEJANDROG.YABUT,JR.,ROBERTC.
GAW,EDGARDOA.HO,ROMULOD.SALES,BIENVENIDO legislative to FEZ enterprises, the *petitioners have arrogated upon themselves a power reserved
ALANO, AUGUSTO E. OROSA, AND THE FINANCE exclusivelytoCongress,inviolationofthedoctrineofseparationofpowers.
MANAGER,LOURDESRUTHM.LOPEZ,Respondents.
Intheselights,weherebyruleanddeclarethatRR22012isnullandvoid.
G.R. No. 221770, November 16, 2016 NANITO Z.
EVANGELISTA* (SUBSTITUTED BY HIS HEIRS, WHEREFORE, we hereby DISMISS the petition for lack of merit, and accordingly AFFIRM decision
REPRESENTED BY THE SURVIVING SPOUSE, oftheRegionalTrialCourtdatedNovember8,20132001inSCACaseNo.12410.
LEOVIGILDAC.EVANGELISTA),Petitioners,v.SPOUSES
NEREOV.ANDOLONGIIIANDERLINDAT.ANDOLONG** SOORDERED.
AND RINO AMUSEMENT INNOVATORS, INC.,
Respondents. Sereno, C.J., Carpio, Velasco, Jr., LeonardoDe Castro, Peralta, Bersamin, Del Castillo, Perez,
Mendoza,Reyes,PerlasBernabe,Leonen,andCaguioa,JJ.,concur.
G.R.No.217210,November07,2016REPUBLICOF Jardeleza,*J.,nopart.
THE PHILIPPINES, Petitioner, v. CAPITAL RESOURCES
CORPORATION,ROMEOROXAS,ANDTHEREGISTEROF Endnotes:
DEEDSOFTHEPROVINCEOFLAUNION,Respondents.

G.R. No. 216064, November 07, 2016 PEOPLE OF *NopartduetoprioractionasSolicitorGeneral.


THE PHILIPPINES, PlaintiffAppellee, v. ANTONIO
DACANAYYTUMALABCAB,AccusedAppellant. 1Rollo,pp.4785.

G.R.No.207246,November22,2016JOSEM.ROY 2PennedbyRTCPresidingJudgePhilbertI.Iturraldeid.at95125.
III, Petitioner, v. CHAIRPERSON TERESITA
HERBOSA,THE SECURITIES AND EXCHANGE
3 Section 4 of the 1997 National Internal Revenue Code (Tax Code) provides, "The
COMMISSION, AND PHILILIPPINE LONG DISTANCE
TELEPHONE COMPANY, Respondents. WILSON C. power to interpret the provisions of this Code and other tax laws shall be under the
GAMBOA, JR., DANIEL V. CARTAGENA, JOHN WARREN exclusive and original jurisdiction of the Commissioner, subject to review by the
P. GABINETE, ANTONIO V. PESINA, JR., MODESTO SecretaryofFinance."
MARTIN Y. MAMON III, AND GERARDO C. EREBAREN,
PetitionersinIntervention PHILIPPINE STOCK 4SECTION 3. TAX TREATMENT OF ALL PETROLEUM AND PETROLEUM PRODUCTS
EXCHANGE, INC., RespondentinIntervention IMPORTED AND ITS SUBSEQUENT EXPORTATION OR SALES TO FREEPORT AND

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 6/11
3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.J
SHAREHOLDERS' ASSOCIATION OF THE PHILIPPINES, ECONOMICZONELOCATORSOROTHERPERSONS/ENTITIESREFUNDOFTAXESPAID
INC.,RespondentinIntervention. AUTHORITY TO RELEASE IMPORTED GOODS (ATRIG) AND OTHER ADMINISTRATIVE
REQUIREMENTS. The ValueAdded and Excise taxes which are due on all petroleum
Decisions/SignedResolutions and petroleum products that are imported and/or brought directly from abroad to the
Philippines, including Freeport and Economic zones, shall be paid by the importer
G.R. No. 211072, November 07, 2016
thereoftotheBureauofCustoms(BOC).
COMMISSIONER OF INTERNAL REVENUE, Petitioner, v.
DEUTSCHE KNOWLEDGE SERVICES, PTE. LTD.,
Thesubsequentexportationorsale/deliveryofthesepetroleumorpetroleumproducts
Respondent.
to registered enterprises enjoying tax privileges within the Freeport and Economic
G.R. No. 205035, November 16, 2016 SPOUSES zones,aswellasthesaleofsaidgoodstopersonsengagedininternationalshippingor
GEMINOC.MIANO,JR.ANDJULIETMIANO,Petitioners, international air transport operations, shall be subject to 0% VAT. With respect to the
v. MANILA ELECTRIC COMPANY [MERALCO], VATpaidonpetroleumorpetroleumproductsbytheimporteronaccountofaforesaid
Respondents. 0% VAT transactions/entities and the Excise taxes paid on account of sales to
international carriers of Philippine or Foreign Registry for use or consumption outside
A.M.No.MTJ121813(FormerlyA.M.No.12542 thePhilippinesorexemptentitiesoragenciescoveredbytaxtreaties,conventionsand
METC), November 22, 2016 OFFICE OF THE COURT internationalagreementsfortheiruseorconsumption(coveredbyCertificationinsuch
ADMINISTRATOR, Complainant, v. JUDGE ELIZA B. YU, entity's favor), as well as entities which are by law exempt from indirect taxes, the
METROPOLITANTRIALCOURT,BRANCH47,PASAYCITY, importer may file a claim for credit or refund with the BOC, which shall process the
Respondent. A.M. No. 12109METC RE: LETTER claim for refund, subject to the favorable endorsement of the BIR, in accordance with
DATED21JULY2011OFEXECUTIVEJUDGEBIBIANOG.
existing rules and procedures: Provided, that no claim for refund shall be granted
COLASITO AND THREE (3) OTHER JUDGES OF THE
METROPOLITAN TRIAL COURT, PASAY CITY, FOR THE
unless it is properly shown to the satisfaction of the BIR that said petroleum or
SUSPENSION OR DETAIL TO ANOTHER STATION OF petroleumproductshavebeensoldtoadulyregisteredlocatorandhavebeenutilized
JUDGE ELIZA B. YU, BRANCH 47, SAME COURT. A.M. intheregisteredactivity/operationofthelocator,orthatsuchhavebeensoldandhave
No. MTJ131836 (FORMERLY A.M. No. 1111115 been used for international shipping or air transport operations, or that the entities to
METC)RE:LETTERDATEDMAY2,2011OFHON.ELIZA whichthesaidgoodsweresoldarestatutorilyzeroratedforVAT,and/orexemptfrom
B. YU, PRESIDING JUDGE, METROPOLITAN TRIAL Excisetaxes.
COURT, BRANCH 47, PASAY CITY. A.M. No. MTJ12
1815 (FORMERLY OCA IPI No. 112401MTJ) LEILANI In the event that the said Freeport/Economic zone registered enterprise shall
A.TEJEROLOPEZ,Complainant,v.JUDGEELIZAB.YU, subsequentlysell/introducethepetroleumorpetroleumproducts,orpartofthevolume
BRANCH 47, METROPOLITAN TRIAL COURT, PASAY thereof, into the customs territory (except sales of fuel for use in international
CITY, Respondent. OCA IPI No. 112398MTJ operations) or another Freeport/Economic zone registered enterprise not enjoying tax
JOSEFINA G. LABID, Complainant, v. JUDGE ELIZA B. privileges, no refund for excise taxes shall be granted to the importer for the product
YU,METROPOLITAN TRIAL COURT, BRANCH 47, PASAY
sold.Inanyevent,thepossessorofpetroleumorpetroleumproductsmustbeableto
CITY, Respondent. OCA IPI No. 112399MTJ AMOR
present sufficient evidence that the excise taxes due thereon have been paid,
V. ABAD, FROILAN ROBERT L. TOMAS, ROMER H.
AVILES, EMELINA J. SAN MIGUEL, NORMAN D.S. otherwise the excise taxes due on said goods shall be collected from said
GARCIA, MAXIMA SAYO AND DENNIS ECHEGOYEN, possessor/user.
Complainants,v.HON.ELIZAB.YU,PRESIDINGJUDGE,
METROPOLITAN TRIAL COURT, BRANCH 47, PASAY Incaseofsale/introductionofpetroleumandpetroleumproducts,orpartofthevolume
CITY, Respondent. OCA IPI No. 112378MTJ thereof, by a Freeport/Economic zone registered enterprise, or part/volume thereof,
EXECUTIVE JUDGE BIBIANO G. COLASITO, VICE into the customs territory or to a Freeport/Economic zone registered enterprise not
EXECUTIVE JUDGE BONIFACIO S. PASCUA, JUDGE enjoying tax privileges, or any sale to an entity not enjoying 0% VAT rate, the seller
RESTITUTOV.MANGALINDAN,JR.JUDGECATHERINEP. shall be liable for 12% VAT. In this instance, no refund for VAT shall be allowed the
MANODON, MIGUEL C. INFANTE (CLERK OF COURT IV, importer or an assessment for VAT shall be issued to the said importer, if the refund
OCCMETC),RACQUELC.DIANO(CLERKOFCOURTIII, hasalreadybeengranted,andanotherassessmentforVATshallbemadeagainstthe
METC, BRANCH 45), EMMA ANNIE D. ARAFILES seller.
(ASSISTANT CLERK OF COURT, OCCMETC), PEDRO C.
DOCTOLERO,JR.(CLERKOFCOURTIII,METC,BRANCH For each and every importation of petroleum and petroleum products, the importer
44), LYDIA T. CASAS (CLERK OF COURT III, METC, thereof shall secure the prescribed ATRIG from the SIR's Excise Tax Regulatory
BRANCH46),ELEANORN.BAYOG(LEGALRESEARCHER,
Division (ETRD), and pay the ValueAdded and excise taxes, as computed, before the
METC, BRANCH 45), LEILANIE A. TEJERO ( LEGAL
release thereof from the BOC's custody. In case of subsequent sale/introduction to
RESEARCHER, METC, BRANCH 46), ANA MARIA V.
FRANCISCO (CASHIER I, OCC METC), SOLEDAD J.
customsterritorybyaFreeport/Economiczoneregisteredenterpriseofpetroleumand
BASSIG (CLERK III, OCCMETC), MARISSA MASHHOOR petroleumproducts,theimportershallsecurethenecessaryWithdrawalCertificate.
RASTGOOY (RECORDS OFFICER, OCCMETC), MARIE
LUZM.OBIDA(ADMINISTRATIVEOFFICER,OCCMETC), For excise tax purposes, all importers of petroleum and petroleum products shall
VIRGINIA D. GALANG (RECORDS OFFICER I, OCC secure a Permit to Operate with the BIR's ETRD. Such permit shall prescribe the
METC), AUXENCIO JOSEPH CLEMENTE (CLERK OF appropriate terms and conditions which shall include, among others, the issuance of a
COURTIII,METC,BRANCH48),EVELYNP.DEPALOBOS WithdrawalCertificateandthesubmissionofliquidationreports,forthePermitee'sstrict
(LEGALRESEARCHER,METC,BRANCH44),MA.CECILIA compliance.
GERTRUDESR.SALVADOR(LEGALRESEARCHER,METC,
BRANCH 48), JOSEPH B. PAMATMAT (CLERK III, OCC 5Id.
METC), ZENAIDA N. GERONIMO (COURT
STENOGRAPHER,OCCMETC),BENJIEV.ORE(PROCESS 6Rollo,pp.131148.
SERVER, OCCMETC), FORTUNATO E. DIEZMO
(PROCESSSERVER,OCCMETC),NOMERB.VILLANUEVA 7 Also known as "An Act Amending Republic Act No. 7227, As Amended, Otherwise
(UTILITY WORKER, OCCMETC), ELSA D. GARNET
(CLERK III, OCC METC), FATIMA V. ROJAS (CLERK III, Known As The Bases Conversion And Development Act Of 1992, And For Other
OCCMETC), EDUARDO E. EBREO (SHERIFF III, METC, Purposes,"datedMarch20,2007.
BRANCH 45), RONALYN T. ALMARVEZ (COURT
8 On April 2, 2012, EPEC filed its Entry of Appearance with Motion for Leave to File
STENOGRAPHERII,METC,BRANCH45),MA.VICTORIA
C.OCAMPO(COURTSTENOGRAPHERII,METC,BRANCH PetitioninIntervention(RTCdecision,id.at106).
45),ELIZABETHLIPURA(CLERKIIIMETC,BRANCH45),
MARYANNJ.CAYANAN(CLERKIII,METC,BRANCH45), 9Rollo,pp.174205.
MANOLOMANUELE.GARCIA(PROCESSSERVER,METC,
BRANCH 45), EDWINA A. JUROK (UTILITY WORKER, 10InCAdecisiondatedFebruary14,2013,id.at207218.
OCCMETC), ARMINA B. ALMONTE (CLERK III, OCC
METC),ELIZABETHG.VILLANUEVA(RECORDSOFFICER, 11InCAresolutiondatedJuly29,2013,id.at220221.
METC,BRANCH44),ERWINRUSSB.RAGASA(SHERIFF
III, METC, BRANCH 44), BIEN T. CAMBA (COURT 12Id.at223258.
STENOGRAPHER II, METC, BRANCH 44), MARLON M.
SULIGAN (COURT STENOGRAPHER II, METC, BRANCH
13RTCDecision,id.at116117.
44), CHANDA B. TOLENTINO (COURT STENOGRAPHER
II,METC,BRANCH44),FERDINANDR.MOLINA(COURT
14Id.at112.
INTERPRETER, METC, BRANCH 44), PETRONILO C.
PRIMACIO,JR.(PROCESSSERVER,METC,BRANCH45),
EDWARD ERIC SANTOS (UTILITY WORKER, METC, 15Id.at114.
BRANCH 45), EMILIO P. DOMINE (UTILITY WORKER,
METC, BRANCH 45), ARNOLD P. OBIAL (UTILITY 16Petition,id.at5960.
WORKER, METC, BRANCH 44), RICARDO E. LAMPITOC
(SHERIFF III, METC, BRANCH 46), JEROME H. AVILES 17Id.at60.
(COURT STENOGRAPHER II, METC, BRANCH 46), ANA
LEA M. ESTACIO (COURT STENOGRAPHER II, METC, 18Rollo,p.62.
BRANCH 46), LANIE F. AGUINALDO (CLERK III, METC,
BRANCH 44), JASMINE L. LINDAIN (CLERK III, METC, 19G.R.No.169777,April20,2006,488SCRA1,3.
BRANCH44),RONALDOS.QUIJANO(PROCESSSERVER,
METC, BRANCH 44), DOMINGO H. HOCOSOL (UTILITY
20Rollo,pp.6364.
WORKER, METC, BRANCH 48), EDWIN P. UBANA
(SHERIFF III, METC, BRANCH 48), MARVIN O.
BALICUATRO (COURT STENOGRAPHER II, METC, 21ThepetitionerpointsoutthatVATandexcisetaxareindirecttaxes.
BRANCH 48), MA. LUZ D. DIONISIO (COURT
STENOGRAPHER II, METC, BRANCH 48), MARIBEL A. 22Rollo,p.67.
MOLINA (COURT STENOGRAPHER II, METC, BRANCH
48), CRISTINA E. LAMPITOC (COURT STENOGRAPHER 23Id.at68.
II,METC,BRANCH46),MELANIEDCBEGASA(CLERKIII,
METC,BRANCH46),EVANGELINEM.CHING(CLERKIII, 24Id.at6768citingEslaov.CommissiononAudit,G.R.No.89745,April8,1991,195
METC, BRANCH 46), LAWRENCE D. PEREZ (PROCESS
SERVER, METC, BRANCH 46), EDMUNDO VERGARA SCRA730.
(UTILITYWORKER,METC,BRANCH46),AMORV.ABAD

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 7/11
3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.J
(COURT INTERPRETER, METC, BRANCH 47), ROMER H. 25Id.at73.
AVILES(COURTSTENOGRAPHERII,METC,BRANCH47),
FROILAN ROBERT L. TOMAS (COURT STENOGRAPHER 26Id.at75.
II, METC, BRANCH 47), MAXIMA C. SAYO (PROCESS
SERVER, BRANCH 47), SEVILLA B. DEL CASTILLO 27 Id. at 76 citing CIR v. A.D. Guerrero, G.R. No. L20812, September 22, 1967, 21
(COURT INTERPRETER, METC, BRANCH 48), AIDA
JOSEFINA IGNACIO (CLERK III, METC, BRANCH 48), SCRA180,183.
BENIGNO A. MARZAN (CLERK III, METC, BRANCH 48),
28Id.at365.
KARLA MAE R. PACUNAYEN (CLERK III, METC, BRANCH
48), IGNACIO M. GONZALES (PROCESS SERVER, METC,
BRANCH 48), EMELINA J. SAN MIGUEL (RECORDS 29Id.at366citingBiraogov.ThePhilippineTruthCommission,651Phil374(2010).
OFFICER, OCC, DETAILED AT BRANCH 47), DENNIS M.
ECHEGOYEN (SHERIFF III, OCCMETC), NORMAN 30 Id. at 367 citing Philippine Constitution Association v. Enriquez, G.R. No. 113105,
GARCIA (SHERIFF III, METC, BRANCH 47), NOEL G. August19,1994,235SCRA506507.
LABID(UTILITYWORKERI,BRANCH47),Complainant,
v. HON. ELIZA B. YU, PRESIDING JUDGE, 31Id.at368.
METROPOLITAN TRIAL COURT, BRANCH 47, PASAY
CITY, Respondent. OCA IPI No. 122456MTJ JUDGE 32 Id. at 369 citing CIR v. Seagate Technology, G.R. No. 153866, February 11, 2005,
BIBIANOG.COLASITO,JUDGEBONIFACIOS.PASCUA,
JUDGE RESTITUTO V. MANGALINDAN, JR. AND CLERK 451SCRA132133CIRv.Toshiba,503Phil.823825(2005).
OF COURT MIGUEL C. INFANTE, Complainants, v. HON.
33Id.at374.
ELIZAB.YU,PRESIDINGJUDGE,METROPOLITANTRIAL
COURT, BRANCH 47, PASAY CITY, Respondent. A.M.
No.MTJ131821JUDGEEMILYL.SANGASPARGITO, 34Id.at375.
METROPOLITAN TRIAL COURT, BRANCH 20, MANILA,
Complainant, v. JUDGE ELIZA B. YU, METROPOLITAN 35Id.at378.
TRIALCOURT,BRANCH47,PASAYCITY,Respondent.
36Id.at377.

37Id.

38Id.

39Id.at381.

40Commissioner of Customs v. Hypermix Feeds Corp., G.R. No. 179579, February 1,


2012,664SCRA666.
41Galicto v. Aquino, G.R. No. 193978, February 28, 2012, 667 SCRA 150152, citing
Miosav.Lopez.,etal.,G.R.No.170914,April13,2011,648SCRA684.

42Jumamilv.Cafe,G.R.No.144570,September21,2005,70SCRA475.

43Galicto v. Aquino, supra, citing Southern Hemisphere Engagement Network, Inc. v.


Anti Terrorism Council, G.R. Nos. 178552, 178554, 178581, 178890, 179157 and
179461,October5,2010,632SCRA146.
44Rollo,p.224.

45Id.at228.

46Id.at229.

47Supranote29.

48 Id. citing Senate of the Philippines v. Ermita, G.R. No. 169777, April 20, 2006, 488
SCRA1,35andFranciscov.HouseofRepresentatives,460Phil.830,842(2003).

DeliveryforBusiness 49Id.citingPhilippineConstitutionAssociationv.Enriquez,G.R.No.113105,August19,
1994,235SCRA506,520.

TryLalamoeforyourbusiness 50Lokinv.Comelec,G.R.Nos.17943132,June22,2010,621SCRA385.

delivery.Clickmetosignup 51Id. citing Metropolitan Bank and Trust Company, Inc. v. National Wages and
ProductivityCommission,G.R.No.144322,February6,2007,514SCRA346,349350.
todayandlearnmore. 52Supranote31.

53SeeSection3,RR22012.
LalamoveBusiness
54Section2,RA7227.

55 Hereinafter, we will refer to RA 7227, as amended, when discussing benefits


accorded to FEZs, in general. On the other hand, we will refer to RA 9400 when
discussingbenefitsspecificallyinrelationtotheClarkFEZ.

56Entitled"RulesandRegulationstoImplementRepublicActNo.9400"(Implementing
Rules) issued by the Department of Finance, dated February 13, 2008, and signed by
thenSecretaryofFinanceMargaritoB.Teves.

57 Section 2(oo) of the Implementing Rules defines customs territory as "the national
territoryofthePhilippinesoutsideoftheboundariesoftheEcozonesorFreeportZones,
duly identified or proclaimed in accordance with RA 7227, where the customs and tax
lawsofthePhilippinesareinfullforceoreffect,andoutsideofthoseareasspecifically
declared by other laws and/or presidential proclamations to have the status of special
economiczonesand/orfreeports."

58 The parties in this case have liberally used the term "locator" to denote an entity
locatedwithintheFEZ.However.weshallhereinafteruse"FEZenterprise"asexplicitly
definedandusedbytheImplementingRules.

59Section2(aa),ImplementingRules.

60Section4(d),ImplementingRulesofSection15,RA9400.

61 Coconut Oil Refiners Association v. Torres, G.R. No. 132527, July 29, 2005, 465
SCRA47,6465.

62Supranote32.

63Id.

64SEC.107.ValueAddedTaxonImportationofGoods.(A)InGeneral.Thereshall
be levied, assessed and collected on every importation of goods a valueadded tax

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 8/11
3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.J
equivalent to ten percent (10%) [47] based on the total value used by the Bureau of
Customs in determining tariff and customs duties plus customs duties, excise taxes, if
any,andothercharges,suchtaxtobepaidbytheimporterpriortothereleaseofsuch
goodsfromcustomscustody:Provided,Thatwherethecustomsdutiesaredetermined
onthebasisofthequantityorvolumeofthegoods,thevalueaddedtaxshallbebased
onthelandedcostplusexcisetaxes,ifanyxxx

(B)TransferofGoodsbyTaxexemptPersons.Inthecaseoftaxfreeimportationof
goodsintothePhilippinesbypersons,entitiesoragenciesexemptfromtaxwheresuch
goods are subsequently sold, transferred or exchanged in the Philippines to non
exempt persons or entities, the purchasers, transferees or recipients shall be
considered the importers thereof, who shall be liable for any internal revenue tax on
suchimportation.Thetaxdueonsuchimportationshallconstitutealienonthegoods
superiortoallchargesorliensonthegoods,irrespectiveofthepossessorthereof.

65 SEC. 148. Manufactured Oils and Other Fuels. There shall be collected on refined
and manufactured mineral oils and motor fuels, the following excise taxes which shall
attach to the goods hereunder enumerated as soon as they are in existence as such:
(a)Lubricatingoilsandgreases,includingbutnotlimitedto,basestockforlubeoilsand
greases,highvacuumdistillates,aromaticextracts,andothersimilarpreparations,and
additivesforlubricatingoilsandgreases,whethersuchadditivesarepetroleumbased
or not, per liter and kilogram respectively, of volume capacity or weight, Four pesos
and fifty centavos (P4.50): Provided, however, That the excise taxes paid on the
purchased feedstock (bunker) used in the manufacture of excisable articles and
formingpartthereofshallbecreditedagainsttheexcisetaxduetherefrom:Provided,
further, That lubricating oils and greases produced from basestocks and additives on
which the excise tax has already been paid shall no longer be subject to excise tax:
Provided, finally, That locally produced or imported oils previously taxed as such but
are subsequently reprocessed, rerefined or recycled shall likewise be subject to the
taximposedunderthisSection.

(b)Processedgas,perliterofvolumecapacity,Fivecentavos(P0.05)

(c)Waxesandpetrolatum,perkilogram,Threepesosandfiftycentavos(P3.50)

(d)Ondenaturedalcoholtobeusedformotivepower,perliterofvolumecapacity,Five
centavos (P0.05): Provided. That unless otherwise provided by special laws, if the
denatured alcohol is mixed with gasoline, the excise tax on which has already been
paid, only the alcohol content shall be subject to the tax herein prescribed. For
purposes of this Subsection, the removal of denatured alcohol of not less than one
hundred eighty degrees (180o) proof (ninety percent (90%) absolute alcohol) shall be
deemedtohavebeenremovedformotivepower,unlessshownotherwise

(e) Naphtha, regular gasoline and other similar products of distillation, per liter of
volumecapacity,Fourpesosandthirtyfivecentavos(P4.35):Provided,however,That
naphtha, when used as a raw material in the production of petrochemical products or
asreplacementfuelfornaturalgasfiredcombinedcyclepowerplant,inlieuoflocally
extracted natural gas during the nonavailability thereof, subject to the rules and
regulations to be promulgated by the Secretary of Energy, in consultation with the
SecretaryofFinance,perliterofvolumecapacity,Zero(P0.00):Provided,further,That
the byproduct including fuel oil, diesel fuel, kerosene, pyrolysis gasoline, liquefied
petroleumgasesandsimilaroilshavingmoreorlessthesamegeneratingpower,which
areproducedintheprocessingofnaphthaintopetrochemicalproductsshallbesubject
totheapplicableexcisetaxspecifiedinthisSection,exceptwhensuchbyproductsare
transferred to any of the local oil refineries through sale, barter or exchange, for the
purpose of further processing or blending into finished products which are subject to
excisetaxunderthisSection

(f) Leaded premium gasoline, per liter of volume capacity, Five pesos and thirtyfive
centavos(P5.35)unleadedpremiumgasoline,perliterofvolumecapacity,Fourpesos
andthirtyfivecentavos(P4.35)

(g) Aviation turbo jet fuel, per liter of volume capacity, Three pesos and sixtyseven
centavos(P3.67)

(h) Kerosene, per liter of volume capacity, Zero (P0.00): Provided, That kerosene,
whenusedasaviationfuel,shallbesubjecttothesametaxonaviationturbojetfuel
undertheprecedingparagraph(g),suchtaxtobeassessedontheuserthereof

(i) Diesel fuel oil, and on similar fuel oils having more or less the same generating
power,perliterofvolumecapacity,Onepesoandzero(P0.00)

(j)Liquefiedpetroleumgas,perliter,Zero(P0.00):Provided,Thatliquefiedpetroleum
gas used for motive power shall be taxed at the equivalent rate as the excise tax on
dieselfueloil

(k)Asphalts,perkilogram,Fiftysixcentavos(P0.56)and

(l) Bunker fuel oil, and on similar fuel oils having more or less the same generating
power,perliterofvolumecapacity,zero(P0.00).

66SEC. 129. Goods subject to Excise Taxes. Excise taxes apply to goods
manufactured or produced in the Philippines for domestic sales or consumption or for
anyotherdispositionandtothingsimported.Theexcisetaximposedhereinshallbein
additiontothevalueaddedtaximposedunderTitleIV.

ForpurposesofthisTitle,excisetaxeshereinimposedandbasedonweightorvolume
capacityoranyotherphysicalunitofmeasurementshallbereferredtoas'specifictax'
andanexcisetaxhereinimposedandbasedonsellingpriceorotherspecifiedvalueof
thegoodshallbereferredtoas'advaloremtax.'
67(A)PersonsLiable.Excisetaxesonimportedarticlesshallbepaidbytheowneror
importertotheCustomOfficers,conformablywiththeregulationsoftheDepartmentof
Finance and before the release of such articles from the customs house, or by the
personwhoisfoundinpossessionofarticleswhichareexemptfromexcisetaxesother
thanthoselegallyentitledtoexemption.

In the case of taxfree articles brought or imported into the Philippines by persons,
entities, or agencies exempt from tax which are subsequently sold, transferred or
exchanged in the Philippines to nonexempt persons or entitles, the purchasers or
recipientsshallbeconsideredtheimportersthereof,andshallbeliableforthedutyand
internalrevenuetaxdueonsuchimportation.
68GeneralTravelService,Ltd.v.David,G.R.No.L19259,18SCRA59,September23,
1966,18SCRA59.

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 9/11
3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.J
69Section 4.1071 (b), RR 162005, otherwise known as the Consolidated VAT
Regulations of 2004, promulgated to Title IV of the Tax Code, as well as other
provisionspertainingtoVAT.
70Section4.1071(a),RR162005,id.

71Supranote32.

72Id.

73Id.

74RA7227withrespecttotheSubicSpecialEconomicZone,RA7916withrespectto
EcozonesasidentifiedbyPresidentialProclamations,andRA9400withrespecttoClark
FEZandPoroPointFreeportZone.
75Supranote32.

76Section7oftheImplementingRulesofRA9400provides:"TaxTreatmentofGoods
Introduced Into and Brought Out of the Ecozones and Freeport ZonesA. A. Raw
materials,capitalgoods,andconsumeritemsofdomesticoriginwhicharebroughtout
of the Ecozone or Freeport Zone introduced into the customs territory shall be
consideredasimportationsintothecustomsterritoryandthebuyerofthegoodsshall
be treated as importer thereof, hence subject to the VAT on importation. In all
instances, raw materials, capital goods, equipment and consumer items and foreign
articles introduced into the customs territory, unless authorized under applicable laws,
rules and regulations shall be subject to taxes and duties under the National Internal
Revenue Code of 1997, as amended, and by the Tariff and Customs Code of the
Philippines,asamended."
77Supranote69.

78Supranote57.

79Coconut Oil Refiners Association v. Torres, supra note 61 citing Senator Enrile from
therecordsoftheSenatecontainingthediscussionoftheconceptofspecialeconomic
zone."

80Comment,rollo,p.372.

81Rollo,pp.7273.

82Id.at76citingCIRv.A.D.Guerrero,supranote27.

83Greenfieldv.Meer,77Phil394(1946).

84CIR v. Phil. Ace lines, Inc., G.R. Nos. L2096061, October 31, 1968, 25 SCRA 912,
citingCIRv.BotheloShippingCorporation, G.R. No. L21633, June 29, 1967, 20 SCRA
487.
85CIRv.CourtofAppeals,G.R.No.115349,April18,1997,271SCRA605.

86Supranote32.Cf.Section6,RA7227,asamendedbyRA9400.

87Rollo,p.379.

88CommissionerofInternalRevenuev.CentralLuzonDrug,G.R.No.159647,April15,
2005,456SCRA414.
89Supranote84.

90Supranote61.

91FilmDevelopment Council of the Philippines v. Colon Heritage Realty Corporation,


G.R.No.203754,June16,2015,sc.judiciary.gov.ph.
92Quezon City v. ABSCBN Broadcasting Corporation, G.R. No. 166408, October 6,
2008,568SCRA496.
*Respondentschangedtopetitioners.

Adsby Google ForTaxes GR TaxForms


Adsby Google TaxRecords CustomsTariff TVGR
Adsby Google CustomsTariff BGRGR ImportDuty

BacktoHome|BacktoMain

QUICKSEARCH

1901 1902 1903 1904 1905 1906 1907 1908


1909 1910 1911 1912 1913 1914 1915 1916
1917 1918 1919 1920 1921 1922 1923 1924
1925 1926 1927 1928 1929 1930 1931 1932
1933 1934 1935 1936 1937 1938 1939 1940
1941 1942 1943 1944 1945 1946 1947 1948
1949 1950 1951 1952 1953 1954 1955 1956
1957 1958 1959 1960 1961 1962 1963 1964
1965 1966 1967 1968 1969 1970 1971 1972
1973 1974 1975 1976 1977 1978 1979 1980
1981 1982 1983 1984 1985 1986 1987 1988
1989 1990 1991 1992 1993 1994 1995 1996

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 10/11
3/8/2017 G.R.No.210588,November29,2016SECRETARYOFFINANCECESARB.PURISIMAANDCOMMISSIONEROFINTERNALREVENUEKIMS.J
1997 1998 1999 2000 2001 2002 2003 2004
2005 2006 2007 2008 2009 2010 2011 2012
2013 2014 2015 2016

MainIndicesoftheLibrary> Go!

|Disclaimer|EmailRestrictions
Copyright19982017ChanRoblesPublishingCompany ChanRobles VirtualLawLibrary |chanrobles.com RED

http://www.chanrobles.com/cralaw/2016novemberdecisions.php?id=986 11/11

Оценить