Case 8

Legal Opinion:
Mr. John Tan owned a five-star hotel in Roxas Boulevard area. Based on Article XII: National Economy and
Patrimony in Section 14, all the national talents of Filipino especially to tourism and hospitality industry in all fields should
be promoted by the State. The State should prioritize Filipino talents for employment in the country. Since Mr. John Tan is
looking for a Chief Executive Officer; who is responsible for providing strategic, financial, operational leadership for the
company, and manages the company toward its primary goals and objectives – he should be committed enough to let
someone handle his hotel because being a Chief Executive Officer has overall huge responsibility for creating, planning,
implementing, and integrating the strategic direction of an organization. This includes responsibility for all components and
departments of a business. The qualifications he must look are, a person who obtained a bachelor’s degree or who pursued
a business-related degree, such as in business administration, someone who is familiar with the company environment and
business structure, and typically experienced several years of professional duties. Furthermore, he must look for legal
counsel who provide legal support and advice to management on relevant legal issues, who calculate and handle risks in
business process and decision making, and who will take charge of legal matters in hotel business. A lot of Filipinos have
been considering themselves to work on big hotels and knowing the Article XII: National Economy and Patrimony in Section
14, Filipinos have the higher chance to take huge opportunities and privilege to work on hotels because we should not
neglect our passion in providing services to customers.

Case 7
Legal Opinion:
Mr. Walker, and American investor is not allowed to open saunas and massage clinics here in Philippines unless the
60% of their capital is owned by Filipino citizens. Well, a foreigner can invest in the Philippines stock exchange according to
the Securities and Exchange Commission (SEC) because they put slight restrictions on foreign investment. The main
restriction is a foreigner cannot own more than 40% shares of a company in the Philippines because based on the Foreign
Investment Act (R.A. 7042, 1991, amended by R.A. 8179, 1996), it states that at least 60% of the business should be owned
by a Filipino citizen as mentioned in the first sentence, while the rest can be owned by the foreign investor and their
executive and managing officers of such public utility enterprises should be citizens from Philippines. The 60-40 equity rule
was enacted by the Philippine government to regulate foreign investments and businesses in the country.

Case 6
Legal Opinion:
Article XII, of the 1987 Constitution submits that the Manila Hotel has been identified with the Filipino nation and
has practically become a historical monument which reflects the vibrancy of Philippine heritage and culture. It is a proud
legacy of an earlier generation of Filipinos who believed in the nobility and sacredness of independence and its power and
capacity to release the full potential of the Filipino people. To all intents and purposes, it has become a part of the national
patrimony. It is also the thesis of petitioner that since Manila Hotel is part of the national patrimony and its business also
unquestionably part of the national economy, petitioner should be preferred after it has matched the bid offer of the
Malaysian firm. For the bidding rules mandate that if for any reason, the Highest Bidder cannot be awarded, GSIS may offer
this to the other Qualified Bidders that have validly submitted bids provided that these Qualified Bidders are willing to
match the highest bid in terms of price per share. The term “qualified Filipinos” simply means that preference shall be given
to those who can make a viable contribution to the common good because of credible competence and efficiency. Based on
Article XII in Section 10, qualified Filipinos are the one who grants economic rights, privilege, and concessions. Foreign
countries cannot invest to more than 40% capital to a certain business according to the Securities and Exchange
Commission, that’s why it was valid that the awarding of the sales is in favor of Filipino corporation.
Case 5
Legal Opinion:
It is obviously incorrect. According to Republic Act No. 7716, an Act Restructuring the Value Added Tax (Vat)
System, widening its Tax Based and Enhancing its Administration and for These Purposes Amending and Repealing the
Relevant Provisions of the National Internal Revenue Code, as Amended, and for Other Purposes. A value-added tax (VAT) is
paid at every stage of a product's production from the sale of the raw materials to its final purchase by a consumer. Each
assessment is used to reimburse the previous buyer in the chain. So, the tax is eventually paid by the consumer. Philippine
Airlines is one of the biggest international airlines here in the Philippines and the fact that they questioned the validity of
such law, they were not in place to file a petition. Based on Section 99 from Republic Act No. 7716, the value-added tax is an
indirect tax, and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods, properties,
or services. This rule shall likewise apply to existing contracts of sale or lease of goods, properties, or services at the time of
the effectivity of this Act.