For purposes of this Act, illegal recruitment shall mean any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract services, promising or advertising for employment abroad, whether for profit or not, when undertaken by non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines: Provided, That any such non-licensee or non-holder who, in any manner, offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. It shall likewise include the following acts, whether committed by any person, whether a non-licensee, non-holder, licensee or holder of authority:
“(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay or acknowledge any amount greater than that actually received by him as a loan or advance;
“(b) To furnish or publish any false notice or information or document in relation to recruitment or employment;
“(c) To give any false notice, testimony, information or document or commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code, or for the purpose of documenting hired workers with the POEA, which include the act of reprocessing workers through a job order that pertains to nonexistent work, work different from the actual overseas work, or work with a different employer whether registered or not with the POEA;
“(d) To include or attempt to induce a worker already employed to quit his employment in order to offer him another unless the transfer is designed to liberate a worker from oppressive terms and conditions of employment;
“(e) To influence or attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency or who has formed, joined or supported, or has contacted or is supported by any union or workers’ organization;
“(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines;
“(h) To fail to submit reports on the status of employment, placement vacancies, remittance of foreign exchange earnings, separation from jobs, departures and such other matters or information as may be required by the Secretary of Labor and Employment;
“(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the period of the expiration of the same without the approval of the Department of Labor and Employment;
“(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of travel agency;
“(k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations, or for any other reasons, other than those authorized under the Labor Code and its implementing rules and regulations;
“(l) Failure to actually deploy a contracted worker without valid reason as determined by the Department of Labor and Employment;
“(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment, in cases where the deployment does not actually take place without the worker’s fault. Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage; and
“(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.
“Illegal recruitment is deemed committed by
For purposes of this Act, illegal recruitment shall mean any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract services, promising or advertising for employment abroad, whether for profit or not, when undertaken by non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines: Provided, That any such non-licensee or non-holder who, in any manner, offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. It shall likewise include the following acts, whether committed by any person, whether a non-licensee, non-holder, licensee or holder of authority:
“(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay or acknowledge any amount greater than that actually received by him as a loan or advance;
“(b) To furnish or publish any false notice or information or document in relation to recruitment or employment;
“(c) To give any false notice, testimony, information or document or commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code, or for the purpose of documenting hired workers with the POEA, which include the act of reprocessing workers through a job order that pertains to nonexistent work, work different from the actual overseas work, or work with a different employer whether registered or not with the POEA;
“(d) To include or attempt to induce a worker already employed to quit his employment in order to offer him another unless the transfer is designed to liberate a worker from oppressive terms and conditions of employment;
“(e) To influence or attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency or who has formed, joined or supported, or has contacted or is supported by any union or workers’ organization;
“(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines;
“(h) To fail to submit reports on the status of employment, placement vacancies, remittance of foreign exchange earnings, separation from jobs, departures and such other matters or information as may be required by the Secretary of Labor and Employment;
“(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the period of the expiration of the same without the approval of the Department of Labor and Employment;
“(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of travel agency;
“(k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations, or for any other reasons, other than those authorized under the Labor Code and its implementing rules and regulations;
“(l) Failure to actually deploy a contracted worker without valid reason as determined by the Department of Labor and Employment;
“(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment, in cases where the deployment does not actually take place without the worker’s fault. Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage; and
“(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.
“Illegal recruitment is deemed committed by
For purposes of this Act, illegal recruitment shall mean any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract services, promising or advertising for employment abroad, whether for profit or not, when undertaken by non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines: Provided, That any such non-licensee or non-holder who, in any manner, offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. It shall likewise include the following acts, whether committed by any person, whether a non-licensee, non-holder, licensee or holder of authority:
“(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay or acknowledge any amount greater than that actually received by him as a loan or advance;
“(b) To furnish or publish any false notice or information or document in relation to recruitment or employment;
“(c) To give any false notice, testimony, information or document or commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code, or for the purpose of documenting hired workers with the POEA, which include the act of reprocessing workers through a job order that pertains to nonexistent work, work different from the actual overseas work, or work with a different employer whether registered or not with the POEA;
“(d) To include or attempt to induce a worker already employed to quit his employment in order to offer him another unless the transfer is designed to liberate a worker from oppressive terms and conditions of employment;
“(e) To influence or attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency or who has formed, joined or supported, or has contacted or is supported by any union or workers’ organization;
“(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines;
“(h) To fail to submit reports on the status of employment, placement vacancies, remittance of foreign exchange earnings, separation from jobs, departures and such other matters or information as may be required by the Secretary of Labor and Employment;
“(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the period of the expiration of the same without the approval of the Department of Labor and Employment;
“(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of travel agency;
“(k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations, or for any other reasons, other than those authorized under the Labor Code and its implementing rules and regulations;
“(l) Failure to actually deploy a contracted worker without valid reason as determined by the Department of Labor and Employment;
“(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment, in cases where the deployment does not actually take place without the worker’s fault. Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage; and
“(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.
“Illegal recruitment is deemed committed by
(Constitutional Limitations) It is already well-settled that although the power to tax is inherent in the State, the same is not true for the LGUs to whom the power must be delegated by Congress and must be exercised within the guidelines and limitations that Congress may provide. In the case at bar, the sanggunian of the municipality or city cannot enact an ordinance imposing business tax on the gross receipts of transportation contractors, persons engaged in the transportation of passengers or freight by hire, and common carriers by air, land, or water, when said sanggunian was already specifically prohibited from doing so. Any exception to the express prohibition under Section 133(j) of the LGC should be just as specific and unambiguous. Section 21(B) of the Manila Revenue Code, as amended, is null and void for being beyond the power of the City of Manila and its public officials to enact, approve, and implement under the LGC. - City of Manila, Hon. Alfredo S. Lim, as Mayor of the City of Manila, et al. vs. Hon. Angel Valera Colet, as Presiding Judge, Regional Trial Court of Manila (Br. 43), et al., G.R. No. 120051, December 10, 2014 TAX CREDIT OR REFUND The tax burden for an indirect tax may be shifted to another. However, the tax liability remains with the statutory taxpayer. As such, it is the statutory taxpayer who is the proper party to question, or claim a refund or tax credit of an indirect tax. - Silkair (Singapore) PTE. Ltd., vs. Commissioner of Internal Revenue, G.R. No. 184398, February 25, 2010 Under the old rule, whether a PEZA-registered enterprise was exempt or subject to VAT depended on the type of fiscal incentives availed of by the said enterprise. If the PEZA-registered enterprise is paying the 5% preferential tax in lieu of all other taxes, it cannot claim tax credit/refund for the VAT paid on purchases. Conversely, if the taxpayer is availing of the income tax holiday, it can claim VAT credit. However, upon the issuance by the BIR of RMC No. 74-99 on October 15, 1999, the Cross Border Doctrine was clearly established. In effect, PEZA-registered enterprises are VAT-exempt and no VAT can be passed on to them. Thus, any sale by a supplier from the Customs Territory to a PEZA-registered enterprise as export sale should not be burdened by output VAT; hence, it is now impossible to claim for a tax credit/refund. - Toshiba Information Equipment (Phils.), Inc. vs. Commissioner Of Internal Revenue, G.R. No. 157594, March 9, 2010 MERGER OR CONSOLIDATION OF CORPORATIONS When the BIR had ruled that a purchase and sale agreement between two banks did not result in their merger, and that the CIR had previously ruled that the same two banks are not merged, the buyer bank is not liable for the deficiency DST of the seller bank. - Commissioner of Internal Revenue vs. Bank of Commerce, G.R. No. 180529, November 13, 2013
DISSOLUTION OF A CORPORATION Bangko Sentral ng Pilipinas placed Rural Bank of Tuba (RBTI) under receivership with the Philippine Deposit Insurance Corporation as the receiver. Accordingly, PDIC filed a petition for assistance in the liquidation of RBTI which was approved by the trial court. As an incident of the proceeding, BIR intervened as one of the creditors of RBTI. BIR contends that a tax clearance is required before the approval of project of distribution of the assets of a bank. In denying their contention, the Court held that Section 52(C) of the Tax Code of 1997 is not applicable to banks ordered placed under liquidation by the Monetary Board, and a tax clearance is not a prerequisite to the approval of the project of distribution of the assets of a bank under liquidation by the PDIC. - Philippine Deposit Insurance Corporation vs. Bureau Of Internal Revenue, G.R. No. 172892, June 13, 2013 VAT (Transitional Input Tax) The BIR cannot issue a revenue regulation contrary to what the NIRC provides such when the said regulation limits the coverage of the provision in the NIRC. Such revenue regulation shall not produce any effect and cannot be source of any right. Fort Bonifacio Development Corporation vs. Commissioner Of Internal Revenue, Regional Director, Revenue Region No. 8, and Chief Assessment Division, Revenue Region No. 8, G.R. No. 158885, October 2, 2009 Section 112(A) and (C) must be interpreted according to its clear, plain, and unequivocal language. The taxpayer can file his administrative claim for refund or credit at anytime within the two-year prescriptive period. If he files his claim on the last day of the two-year prescriptive period, his claim is still filed on time. The Commissioner will have 120 days from such filing to decide the claim. If the Commissioner decides the claim on the 120th day, or does not decide it on that day, the taxpayer still has 30 days to file his judicial claim with the CTA. This is not only the plain meaning but also the only logical interpretation of Section 112(A) and (C). - San Roque Power Corporation vs. Commissioner of Internal Revenue, G.R. No. 205543, June 30, 2014 The Court has consolidated these 3 petitions as they involve the same parties, similar facts and common questions of law. This is not the first time that Fort Bonifacio Development Corporation (FBDC) has come to this Court about these issues against the very same respondents (CIR), and the Court En Banc has resolved them in two separate, recent cases that are applicable here. It is of course axiomatic that a rule or regulation must bear upon, and be consistent with, the provisions of the enabling statute if such rule or regulation is to be valid. In case of conflict between a statute and an administrative order, the former must prevail. To be valid, an administrative rule or regulation must conform, not contradict, the provisions of the enabling law. An implementing rule or regulation cannot modify, expand, or subtract from the law it is intended to implement. Any rule that is not consistent with the statute itself is null and void. To recapitulate, RR 7-95, insofar as it restricts the definition of "goods" as basis of transitional input tax credit under Section 105 is a nullity. - Fort Bonifacio Development Corporation vs. Commissioner of Internal Revenue and Revenue District Officer, Revenue Page 2 of 4
District No. 44, Taguig and Pateros, Bureau of Internal Revenue, G.R. No. 175707, November 19, 2014 For failure of Silicon to comply with the provisions of Section 112(C) of the NIRC, its judicial claims for tax refund or credit should have been dismissed by the CTA for lack of jurisdiction. The Court stresses that the 120/30-day prescriptive periods are mandatory and jurisdictional, and are not mere technical requirements. - Silicon Philippines, Inc. (Formerly Intel Philippines Manufacturing, Inc.) vs. Commissioner of Internal Revenue, G.R. No. 173241, March 25, 2015 DOCUMENTARY STAMPS TAX JEC contented that it overpaid documentary stamp tax but the court ruled that it failed to prove such contention. A documentary stamp tax is in the nature of an excise tax. It is not imposed upon the business transacted but is an excise upon the privilege, opportunity or facility offered at exchanges for the transaction of the business. It is an excise upon the facilities used in the transaction of the business separate and apart from the business itself. Documentary stamp taxes are levied on the exercise by persons of certain privileges conferred by law for the creation, revision, or termination of specific legal relationships through the execution of specific instruments. - Jaka Investments Corporation vs. Commissioner of Internal Revenue, G.R. No. 147629, July 28, 2010 Documentary stamp tax is a tax on documents, instruments, loan agreements, and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto. It is in the nature of an excise tax because it is imposed upon the privilege, opportunity or facility offered at exchanges for the transaction of the business. It is an excise upon the facilities used in the transaction of the business distinct and separate from the business itself. - Commissioner of Internal Revenue vs. Manila Bankers' Life Insurance Corporation, G.R. No. 169103, March 16, 2011 An electronic message containing instructions to debit their respective local or foreign currency accounts in the Philippines and pay a certain named recipient also residing in the Philippines is not transaction contemplated under Section 181 of the Tax Code. They are also not bills of exchange due to their non-negotiability. Hence, they are not subject to DST. - The Hongkong and Shanghai Banking Corporation Limited-Philippine Branches vs. Commissioner of Internal Revenue, G.R. No. 166018 & 167728, June 4, 2014 JUDICIAL REMEDIES The appellate jurisdiction of the Court of Tax Appeals (CTA) is not limited to cases which involve decisions of the Commissioner of Internal Revenue (CIR) on matters relating to assessments or refunds. The issue of prescription of the Bureau of Internal Revenues (BIRs) right to collect taxes may be considered as covered by the term other matters over which the Court of Tax Appeals (CTA) has appellate jurisdiction.
Requisites before the Period to Enforce Collection may be Suspended (a) that the taxpayer requests for reinvestigation, and (b) that petitioner grants such request. Commissioner of Internal Revenue vs. Hambrecht & Quist Philippines, Inc., G.R. No. 169225, November 17, 2010 PNB has not demonstrated any cogent reason for the SC to take an exception and excuse PNBs blatant disregard of the basic procedural rules in a petition for review. Furthermore, the timely perfection of an appeal is a mandatory requirement. One cannot escape the rigid observance of this rule by claiming oversight, or in this case, lack of foresight. Neither can it be trifled with as a mere technicality to suit the interest of a party. Verily, the periods for filing petitions for review and for certiorari are to be observed religiously. Just as the losing party has the privilege to file an appeal within the prescribed period, so does the winner have the right to enjoy the finality of the decision. - Philippine National Bank vs. Commissioner Of Internal Revenue, G.R. No. 172458, December 14, 2011