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POLLABTAX | CRM
CIVCOM | REMETH
#BestBarOutlineReviewerEverbasedontheShortenedS
yllabus
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TABLEOFCONTENTS BillofRights Powersrelativetoappropriationmeasures
DueProcess Vetopowers
DAY1|AMConstitutionalLaw 2
EqualProtection Judiciary
DAY1|AMInternationalLaw 34 FreedomofExpression SeparationofPowers
RightsDuringExpropriation SystemofChecksandBalances
DAY1|AMLaborLaw 37
SearchesandSeizure ProcessofLegislation
DAY1|AMTaxationLaw 54
CompositionandPowersoftheGovernment Organs SubjectandTitle
DAY1|PMCriminalLaw 106 JudicialReview Astospecificlaws
SupervisionofCourts Procedureforpassageofbills
DAY2|AMCivilLaw 145
PowersoftheSupremeCourt NationalizationPrinciple
DAY2|AMCommercialLaw 222 Qualification,DisqualificationsandSelection NaturalResources
ImmunityandPrivileges EconomicActivities
DAY2|PMRemedialLaw 247
PresidentialImmunity AdvertisingandMedia
DAY2|PMEthics 358 PrivilegesofLegislators AmendmentandRevisionoftheConstitution
StructureofGovernment
DAY2|PMPracticalExercises 384 1. BasicPrinciplesofPoliticalLaw
Composition
a. Sovereignty
DAY1|AMConstitutionalLaw Functions
ConcurringOpinionofJusticeMendozainE
stradav.Arroyo,supra
PowersandPrivileges
BasicPrinciplesofPoliticalLaw While Art. II, §1
of
the
Constitution says
that
"sovereignty resides
Legislative in the people and all government authority emanates from
Sovereignty them," it also says that "the Philippines is a democratic and
Executive republicanstate."
StateImmunity
Powerofappointment This means that ours is a representative democracy — as
DelegationofPowers
distinguished from a direct democracy — in which the sovereign
Powerofcontrolandsupervision
FundamentalPowersoftheState will of the people is expressed through the ballot, whether in an
Emergencypowers election, referendum, initiative,
recall
or
plebiscite. Any
exercise of
PolicePower thepowersofsovereigntyinanyotherwayisunconstitutional.
Commander-in-chiefpowers
EminentDomain Indeed, the right to revolt cannot be recognized as a constitutional
Executiveclemency principle. A constitution to provide for the right of the people to
Taxation revolt
will
carry with it
the
seeds
of
its
own destruction. Rather, the
Diplomaticpower
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right
to revolt is affirmed as a natural right. Even then, it must be
b. StateImmunity
a) sovereignandgovernmentalacts(j ureimperii)from
exercisedonlyforweightyandseriousreasons.
1) Where a suit is filed NOT against the government itself or its b) private,commercialandproprietaryacts(j uregestionis).
What took place at EDSA from January 16 to 20, 2001 was not a officials
but against one of its entities, it must be ascertained Under the restrictive rule of state immunity, state immunity
revolution but the peaceful expression of popular will. The operative
whetherornottheStatehasgivenitsconsenttobesued. extends only to acts jure imperii. The restrictive application of
fact
which enabled VP
Arroyo to assume the
presidency was the fact
2) This ascertainment will depend in the first instance on WON State immunity is proper only when the proceedings arise out of
that there was a crisis, nay a vacuum, in the executive leadership
commercial transactions of the foreign sovereign, its commercial
which made the government rife for seizure by lawless elements. The theagencyimpleadedisincorporatedorunincorporated. activitiesoreconomicaffairs.
presidency was up for grabs, and it
was
imperative that
the
rule
of
3) An incorporated agency has a charter of its own that The doctrine of immunity from suit will not
apply and may
not be
successionintheConstitutionbeenforced.
invests it with a separate juridical personality. The test of invoked where the public official is being sued in his private and
suability lies
in
its charter
— It
is
suable
if
its
charter
says personalcapacityasanordinarycitizen.
DissentingOpinionofJusticePunoinT
olentino,etal.vComelec
so;regardlesso fthenatureofthefunctionsitisperforming. In
this case, the US respondents were sued in their official capacity as
The
people can directly exercise their sovereign authority through the commanding officers of
the
US
Navy.
The
suit
is
deemed to be one
4) Unincorporated agencies have no separate juridical
followingmodes,namely: againsttheUSitself.TheprincipleofStateimmunitythusapplies.
personality as they are
merged
in
the
general
machinery
of
1) Elections. — the p
eople choose the representatives t o
thegovernment. PhilippineTextileResearchInstitutev.CA2
019
whom they will entrust the exercise of powers of
government. a. AsuitagainstitisnecessarilyagainsttheState. PTRI, et al. are not immune from suit. Being an unincorporated
2) Plebiscite. — the people ratify any amendment to or b. Suability then
depends on the nature of the function government agency that exercises a governmental function,
revision of
the
Constitution and may introduce amendments itisperformingeithergovernmentalorproprietary. ordinarily,thePTRIenjoysimmunityfromsuit.
totheconstitution.
5) Suability vs. Liability.
— Waiver
of
immunity
by
the
State The
State may be sued with
its
consent. The State's consent to be
3) Initiative. — legal
process
whereby the registered voters of sued
may be
given either expressly or impliedly. Express consent
doesnotmeanconcessionofitsliability.
an
LGU may directly propose, enact, or amend any ordinance may
be made through a general law or a special law. The general law
throughanelectioncalledforthepurpose. a. Suability is the result of the express or implied waiving the immunity of the state from suit is found in Act No. 3083,
4) Recall. — a method
of
removing a local
official
from office consentoftheStatetobesued. where the Philippine government 'consents and submits to
be
sued
before the expiration of his term because of loss of upon any money claim involving liability arising from contract,
b. Liability is
determined after hearing on the basis of
confidence. express or implied, which could serve as a basis of civil action
relevantlawsandestablishedfacts. betweenprivateparties.
5) Referendum. — the people can approve
or
reject
a law
or
anissueofnationalimportance. Arigov.Swift2
014EnBanc PTRI entered into a Contract of Works with B.A. Ramirez. PTRI is
being sued upon a claim involving liability
arising from
a contract.
The 1987 Constitution not only enlarged the
democratic space
with While the doctrine appears to prohibit only suits against the state Hence, the general law on the waiver of immunity from suit
provisions on
the
electorate’s direct
exercise of
sovereignty, but also without its consent, it is also
applicable to
complaints filed
against findsapplication.
highlighted the right of
the
people to
information on
matters of officials of the state for acts allegedly performed by them in the
public interest as a predicate to good governance and a dischargeoftheirduties. Furthermore, there isimplied
consent on
the
part of
the
State to be
workingdemocracy. subjected to suit when the State enters into a contract. However,
The rule is that if the judgment against such officials will require the distinction must still
be
made between one which is
executed in the
In our jurisdiction, it is also the rule that the exercise of the right of state itself to
perform an
affirmative act
to
satisfy the
same, such exercise
of its sovereign functions and another which is done in its
suffrage should be an enlightened one, hence,
based on
relevant as the appropriation of the amount needed to pay the damages proprietarycapacity.
facts,dataandinformation. awarded against them, the
suit
must
be
regarded as
against the
state
itselfalthoughithasnotbeenformallyimpleaded. c. DelegationofPowers
This traditional rule has evolved into a restrictive doctrine which
distinguishes The rule is that what has been delegated,
cannot
be
delegated
or
as
expressed in a Latin maxim—potestas delegata non delegari
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potest.Therecognizede
xceptionst otherulearedelegation: 4. May not
be bargained away through the medium of contract
The Social Security Act has validly delegated the power to fix the
1) OftariffpowerstothePresidentunderSec28(2)ArtVI; contribution rate and the minimum and maximum amounts for
the or even a treaty. The impairment
clause must
yield to
the
monthly salary credits. It is within the scope
of
the
Social
Security police power whenever the contract deals with a subject
2) Of
emergency
powers
to
the
President under Sec 23(2) Art
Commission'spowertofixthem,asclearlylaidoutinthelaw. affectingthepublicwelfare.
VI;
3) Tothepeopleatlarge; d. FundamentalPowersoftheState 5. May sometimes use the taxing power
as
an
implement
fortheattainmentofalegitimatepoliceobjective.
4) Tolocalgovernments;and PolicePower EminentDomain Taxation
a. In Lutz v. Araneta, the SC sustained as a legitimate
5) Toadministrativebodies.
exercise of
the
police
power the
imposition of a special
Regulates Bothliberty Onlypropertyrights
In
every
case
of permissible delegation, there must be a showing that tax on sugar producers for the purpose of creating a
andproperty
thedelegationitselfisvalid.Itisvalidonlyifthelaw special fund to be used for the rehabilitation of the sugar
complete
a) is in itself, setting forth therein the policy to be Exercisedby Government Governmentand Government industry.
executed,carriedout,orimplementedbythedelegate;and privateentities
b. In
Gerochi v.
DOE, the Universal Charge was
considered
b) fixes a standard — the limits of which are sufficiently Propertytaken Destroyed Intendedforpublicuseor as
an
exaction in the exercise of the State’s police power,
determinate and
determinable — to which the delegate must becauseitis purposeandistherefore imposed to
ensure the viability
of the country’s electric
conformintheperformanceofhisfunctions. noxious wholesome powerindustry.
Asufficientstandardisonewhichdefineslegislativepolicy, 6. Power of eminent domain could also be used as an
marksitslimits,mapsoutitsboundariesandspecifiesthepublic Compensation Intangible Afullandfairequivalentofthe
altruistic propertyexpropriatedor implement.
agencytoapplyit.Itindicatesthecircumstancesunderwhichthe
legislativecommandistobeeffected. feelingthathe protectionandpublic 7. When the conditions so demand as determined by the
has improvementsforthetaxespaid legislature, property rights must bow to
the
primacy of
⭐Provincial
Bus
Operators Association of the Philippines v. DOLE contributedto
police power because property rights,
though sheltered
by
2018EnBancLeonen,J thegeneral
welfare due process, must yield to general welfare. (Carlos
Our governmental structure rests on the
principle
of
separation of Superdrugv.DSWD)
powers. In reality, however, the powers are not as strictly confined or i. PolicePower 8. Both
ends
and means must be legitimate. Otherwise, the
delineated to each branch. The growing complexity of modern life, police measure shall be struck down as an arbitrary
the
multiplication of
the subjects of governmental regulation, and the 1. Power of promoting the public welfare by restraining and intrusionintoprivaterights.
increased difficulty of administering the laws require the regulatingtheuseoflibertyandproperty.
delegation of powers traditionally belonging to the legislative to 9. There
should
be
reasonable relation between the means
administrativeagencies. 2. In
a positive
sense, it
is
the
power to
prescribe
regulations andtheend.
to
promote the
health, morals, peace,
education,
good
order a. In Ynot v. IAC, an EO prohibiting the transport of
⭐KilusangMayoUnov.AquinoIII2
019EnBancLeonen,J orsafety,andgeneralwelfareofthepeople. carabaos and carabeef across provincial boundaries
without government clearance, was invalidated as the
All
that
is
required for the valid exercise of this power of subordinate In
negative terms,
it
is
that inherent
and plenary
power in
purpose of indiscriminate slaughter was not
legislationisthat the State
which
enables it to prohibit all things hurtful to the satisfactorilymetbythemeansemployed.
1) the regulation
must
be
germane
to
the
objects
and purposes comfort,safetyandwelfareofsociety.(A gustinv.Edu)
b. A law limiting the capacity of common carriers, or of
ofthelaw;and 3. The most essential, insistent and the least limitable of theaters as
in
the
case
of
People v.
Chan, is valid as this
2) that the regulation be not in contradiction to, but in powers,extendingasitdoes“toallthegreatpublicneeds.” would be a reasonable method for promoting the
conformitywith,thestandardsprescribedbythelaw. comfort,convenienceandsafetyofthecustomers.
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c. In City Government of QC v. Ericta, in invalidating an specific grant takes precedence over requirements set forth in a. Complaint for expropriation sufficient in
form
and
ordinance, the SC said “there is no reasonable relation another law
of
general
application,
in
this
case the National Building substanceisfiledinthepropercourt;and
between the
setting
aside of
at
least 6% of the total area Code.
b. Deposit with said court at least 15% of the
of private cemeteries for charity burial grounds of Even if
the
National Building
Code
imposes minimum requirements property’s fair market
value based
on
its
current
deceased paupers and the
promotion of
health, morals, as to the construction and regulation of billboards, the city
good order, safety, or
the
general welfare of
the
people. taxdeclaration.
government may impose stricter limitations
because its
police
The ordinance is actually a taking without just power to do so originates from its charter and not from the 4. Stages
compensation.” NationalBuildingCode. a. Determination of the validity
of
the
expropriation.
d. In OSG v. Ayala Land, Inc., the SC rejected petitioner’s Necessity of an expropriation is a justiciable
contention that
malls,
inasmuch as they are required by CityofCagayanDeOrov.CagayanElectricPower&Light2
018 question.
the National Building Code to provide parking spaces
The purpose of an imposition will determine its nature as either a tax b. Determinationofj ustcompensation.
fortheircustomers,shouldprovidesuchforfree.
or
a fee.
If
the purpose is primarily revenue, or if revenue is at least 5. Private Property. — Anything that can come under the
10. The SC has invariably
applied
certain
standards
for
judicial
one of the real and substantial purposes, then the exaction is properly dominion of man, including: (1) real and personal, (2)
review:
classified as an exercise of the power to tax. On the other hand, if the
tangible and intangible properties. Except money and
Lawsdealingwiththefreedomofthe purpose is primarily to regulate, then it is deemed an exercise of
Strictscrutiny chosesinaction.
police power in the form of a fee, even though revenue is
mindorrestrictingthepoliticalprocess.
incidentally generated. In other words,
if
generation of
revenue is a. Property already devoted to public use is still
the primary purpose, the imposition is a tax but, if regulation is subject to
expropriation,
provided this
is
done (1)
Rationalbasis the primary purpose, the imposition is properly categorized as
Reviewofeconomiclegislation directly by the legislature, or (2) under a
standard aregulatoryfee.
specificgrantofauthoritytothedelegate.
Heightenedor Evaluatingclassificationsbasedongender ii. EminentDomain b. Services are considered embraced in the concept of
immediatescrutiny andlegitimacy property.
1. Definition, Nature and Function. — Also called the power
6. Taking. — May include trespass without actual eviction
of
Overbreadth Astatuteneedlesslyrestrainseven of expropriation, it is described as “the highest and most
the owner, material impairment of
the
value of
the property
doctrine constitutionallyguaranteedrights exact idea of property remaining in the government” that
or prevention of the ordinary uses for which the property
may be
acquired for
some public purpose through a method
wasintended.
Void-for-vagueness Apenalstatuteencroachesuponthe “inthenatureofacompulsorysaletotheState.”
a. In Ayala
de
Roxas v.
City of Manila, the imposition of an
doctrine freedomofspeech. 2. EssentialrequisitesfortheexercisebyanLGU easement over a 3-meter strip of the plaintiff’s
property could not be legally done without payment of
11. In fine, the
means employed for
the
accomplishment of
the a. Enactmentofanordinance,notjustaresolution;
justcompensation.
police objective must pass the test of reasonableness and, b. Must be
for a public use, purpose or welfare, or for
thebenefitofthepoorandthelandless; b. In People v.
Fajardo, a municipal ordinance prohibiting
specifically, conform
to
the
safeguards embodied in
the Bill
construction of any building that would destroy the
ofRightsfortheprotectionofprivaterights. c. Paymentofj ustcompensation;and view of the plaza from the highway was considered a
d. Exercise must
be
preceded
by
a valid and definite takingunderthepowerofeminentdomain.
Evasco,Jr.v.Montañez2
018 offermadetotheowner,whorejectsthesame. c. The right-of-way easement, resulting in the restriction
Ordinance No. 092-2000, which regulates the construction and 3. Conditions precedent to the issuance of a writ of or
limitation on
property rights
over
the land traversed
installation of building and
other structures such as billboards possession by transmission lines is also an exercise of
within Davao City, is an exercise
of
police
power. This
direct
and expropriation,asinN PCv.Aguirre-Paderanga.
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CityofManilav.Prieto2
019
d. In NPC v. Ileto, the prohibition imposed by the 10516, that the Petrochemical Industrial Park is intended and
transmission lines, i.e. construction of any The SC adopted the ruling of the CA wherein the latter found the accordinglydevotedbylawasacommercialandbusinessventure.
improvements or planting of any trees that exceed 3 following circumstances to invalidate the expropriation done by
Thus, NGCP has the
authority
under
Section
4 of
R.A.
No.
9511
meters within the aerial right of way, clearly interferes petitioner:
toexpropriatethesubjectproperty.
with the landowners’ right to possess and enjoy their 1. The records lack any
evidence to
support
petitioner's claim
properties. that an on-site development program is the most
NationalTransmissionCorp.v.SpsTaglao2
020
7. Requisites of Taking in Eminent Domain (according to practicable and advantageous for the
beneficiaries, to justify
Republicv.Castellvi) the non-applicability of the list of priorities in land True, an
easement of
a right
of
way transmits no
rights except
the
acquisitionunderSection9ofR.A.No.7279. easement itself, and the
respondents would retain full
ownership of
a. Theexpropriatormuste
nteraprivateproperty;
2. Petitioner failed to exhaust other modes of acquisition the
property taken.
Nonetheless, the
acquisition of
such easement is
b. The entry must be for more than a momentary before it resorted to expropriation in violation of Section 10 not gratis. The limitations on the use of the property taken for an
period; of R.A. No. 7279. Failure to renegotiate the offer to indefiniteperiodwoulddepriveitsownerofthenormalusethereof.
c. The
entry must be under warrant or color of legal purchase the property before filing the expropriation case NPC
v. Sps Aoque citing NPC v. Tiangco held that if the easement is
authority; warrantsthedismissalofthecomplaintforexpropriation. intended to perpetually or indefinitely deprive the owner of his
3. The
intended beneficiaries of petitioner's socialized housing proprietary rights, then the owner should be compensated for the
d. The property must be devoted to public use or
program are not "underprivileged and homeless," in monetaryequivalentoftheland.
otherwise informally appropriated or injuriously
violationofSection8.
affected; In this case, considering that the installation of the power lines
Sec 19 of the LGC states that the exercise of such delegated power would definitely deprive Spouses Taglao of the normal use of
their
e. The utilization of the
property for
public
use
must should be pursuant to the Constitution and pertinent laws.
R.A.
No. property,theyareentitledtothepaymentofajustcompensation.
be in such a way as to oust the owner and 7279 is such pertinent law in this case as it governs the local
deprive him of beneficial enjoyment of the expropriation of properties for purposes of
urban land reform
property. MCIAAv.Lozada,etal.2
010EnBanc
andhousing.
8. Just Compensation. — The determination of just The
case of Estate or Heirs of the Late Ex-Justice Jose B.L. Reyes v. We now expressly hold that the taking of private property,
compensation is a judicial function which cannot be City of Manila emphatically ruled that the provisions are strict consequent to the Government's exercise of its power of eminent
curtailed or limited by legislation, much less by an limitations on
the
exercise
of
the
power of eminent domain by local domain, is
always subject to
the
condition that the property be
administrativerule.(LBPv.Manzano2018Leonen,J) governmentunits,especiallywithrespectto: devoted to the specific public purpose for which it was taken.
Corollarily, if
this
particular purpose or
intent is not initiated or
a. According to De Knecht v. CA, owner refers to all 1) the order of priority in acquiring land for socialized
not at all pursued, and is peremptorily abandoned, then the
those
who have lawful interest in the property to be housing;and
former owners, if they so desire, may seek the reversion of
the
condemned, including a mortgagee, a lessee,
and a 2) the resort to expropriation proceedings as a means of property, subject to the return of the amount of
just
compensation
vendeeinpossessionunderanexecutorycontract. acquiringit. received. In such a case, the exercise of the power of eminent domain
b. The measure is not the taker's gain, but the Compliancewiththeseconditionsismandatory. has become improper for lack of the required factual
owner'sloss. justification.
PNOCAlternativeFuelsv.NGCP2
019
c. The owner is entitled to payment of interest from
the time of the taking until
just compensation is Republic v. East Silverlane Realty Development Corp. held that ⭐LBPv.Manzano2018Leonen,J
actually paid to him. To be just,
the compensation when the subject property is classified by the government as an
The Special Agrarian Court must ensure that the
amount determined
must not only be the correct amount to
be
paid;
it industrial zone, the subject property therein had been declared
at
the
end of
the
proceedings is
equivalent to
the
fair market value
must also be paid within a reasonable time from the patrimonial. Further, it
is
apparent from
R.A.
No.
10516 and its IRR
of the property at the time of the taking, and not based on a
time the
land is taken from the owner. (Apo Fruits v. that the industrial estate is being
owned, managed, and
operated by
strict adherence to a particular set or series of
rules imposed
LBP2010EnBanc) the State, not in its sovereign capacity, but rather in its private
by agricultural reform laws or administrative orders. While
capacity. It is apparent from P.D. No. 949, as
amended by
R.A. No.
Section 17 requires due consideration of the formula prescribed
by
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DAR, the determination of just compensation is still subject to the institute the proper expropriation or condemnation 1) establishment of easements such as where
the
landowner
finaldecisionofthepropercourt. proceedings and to pay the just compensation and is perpetually deprived of
his
proprietary
rights
because
of
consequentialdamagesassessedtherein;or the hazards posed by electric transmission lines constructed
CityGovernmentofValenzuelav.SpsAbacan2
019 to
continue with
the
case as if it were an expropriation case abovehispropertyor
and determine the just compensation and consequential 2) the compelled interconnection of the telephone system
In Meralco v. Pineda, the Court held that where the issue is damages pursuant to Rule 67, if the ejectment court has
determining the amount of just compensation in an expropriation betweenthegovernmentandaprivatecompany.
jurisdictionoverthevalueofthesubjectland.
suit, a trial before the commissioners is indispensable. However, Peoplev.Fajardo
while the appointment of
commissioners is
mandatory in
resolving Agan,Jr.v.PIATCO
the issue of just compensation, courts are not bound by their A regulation which substantially d eprives an owner of all
findings. Courts may substitute
their
estimate of
the
value, as
long Sec 17 Art XII pertains to the right of the State in
times
of
national beneficial use of his property is confiscation and is a
asitissupportedbytheevidenceonrecord. emergency, and in the exercise of its police power, to temporarily take deprivation.
overtheoperationofa nybusinessaffectedwithpublicinterest.
Republicv.DelaCruz2
019 The term "national emergency" was defined to include threat DrugstoreAssociationv.NationalCouncilonDisabilityAffairs
from external aggression, calamities or national disasters, but 2016
Interest in eminent domain cases "runs as a matter of law and not strikes "u nless it is of such proportion that would paralyze
follows as
a matter
of
course
from the
right of
the landowner to be government service." The temporary takeover by the government The PWD mandatory discount on the purchase of medicine is
placed in
as good
a position as
money can accomplish, as of the extends only to the operation of the business and not to the supported by a valid objective or purpose. It has a valid subject
dateoftaking." ownership thereof. As such the government is not required to considering that the concept of public use is no longer confined to the
compensate the
private entity-owner of the said business as there traditional notion of use by the public, but held synonymous with
ExportProcessingZoneAuthorityv.EstateofJimenez2
011 public interest, public benefit, public welfare, and public
is no transfer of ownership. The private entity-owner affected
The Court has
held that
compensation cannot be just to the owner cannot, likewise, claim just compensation as the temporary takeover convenience. As in
the case of senior citizens, the discount privilege
in the case of property that is immediately taken unless there is by the
government is
in
exercise of its
police power and not of its to which the PWDs are entitled is actually a benefit enjoyed by
the
prompt payment, considering that
the
owner thereby immediately powerofeminentdomain. general public to which these
citizens belong. The means employed
suffers not only the
loss of
his
property but also the loss of its fruits in invoking the active participation of
the
private sector, in
order to
Thus, requiring the government to pay reasonable achieve the purpose or objective of the law, is reasonably and directly
or income. Thus, in addition, the owner is entitled to legal interest compensation for
the
reasonable use
of
the
property pursuant
from the time of the taking of the property until the actual related. Also, the means employed to
provide a fair, just
and quality
totheoperationofthebusinessc ontravenest heConstitution. health care to PWDs are reasonably related to its accomplishment,
payment in order to place the owner in a position as good as, but not
betterthan,thepositionhewasinbeforethetakingoccurred.
and are
not
oppressive, considering that as a form of reimbursement,
ManilaMemorialParkv.SecretaryoftheDSWD2013EnBanc the discount extended to PWDs in the purchase of medicine can be
claimedbytheestablishmentsasallowabletaxdeductions.
NTCv.BermudaDevelopment2
019
In the exercise of police
power, xxxx
examples
of
these
regulations
A case filed by a landowner for recovery of possession or are iii. Taxation
ejectment against a public utility corporation, which has
occupied 1) property condemned for being noxious or intended for
the land belonging to the former without prior acquisition of title 1. Taxes are the enforced proportional contributions from
noxiouspurposes;
thereto by negotiated purchase or expropriation proceedings, will not persons and property, levied by the State by virtue of its
prosper. 2) zoning ordinances p rohibiting the use of property for sovereignty, for
the
support of government and for all public
purposes injurious to the health, morals or safety of the
Theproperrecourseisfortheejectmentcourt: needs.Obligationtopaytaxesisn otbasedoncontract.
community.
to
dismiss
the
case
without prejudice to the landowner filing the 2. Except only in the case of poll taxes, nonpayment of a tax
On the other
hand, in
the exercise of the power of eminent domain,
proper action for recovery of just compensation and it is a settled rule
that the acquisition of
title
or
total
destruction
of maybethesubjectofcriminalprosecutionandpunishment.
consequentialdamages;or the property is not
essential for
“taking” under the power of eminent
to dismiss the case and direct the public utility
corporation
to domaintobepresent.Examplesoftheseinclude
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3. Taxes are the nation’s lifeblood through
which
government a. substantive due process which requires the accept the views of a subordinate in arriving at a
agencies continue to operate and with which the State intrinsic validity of the law in
interfering with
the decision.
dischargesitsfunctionsforthewelfareofitsconstituents. rights of the
person
to
his life,
liberty,
or
property, g. The board or body should, in all controversial
4. Taxes = levied to raise revenues; Licenses = imposed and questions, render its decision in such a manner that
forregulatorypurpose. b. procedural
due process which consists of the two the
parties to the proceeding can know the various
5. InAngelesUniversityFoundationv.CityofAngeles,SCheld basic rights of notice and hearing, as
well
as
the issues involved, and the reason for the decision
thatthepaymentofbuildingpermitfeeisaregulatory guarantee of being heard by an impartial and rendered.
imposition,andnotachargeonproperty,andistherefore competenttribunal.
notanimpositionfromwhichpetitionerisexempt. Agcaoili,Jr.v.Fariñas2
018EnBanc
7. JudicialDueProcess
6. Revenues received from the imposition of taxes or levies a. There must be an impartial court or tribunal In
Secretary
of
National Defense et
al.
v.
Manalo et
al.,
the Court
cannot be used for purely private purposes or for the clothed with judicial power to hear
and
determine explainedtheconceptofr
ighttolifeinthiswise:
exclusivebenefitofprivatepersons. thematterbeforeit. While the right to life under Article III, Section 1 guarantees
7. InPlantersProductsIncv.FertiphilCorporation,theCourt b. Jurisdiction must be lawfully acquired over the essentially the right to be alive—upon which the enjoyment of all
declaredthatataxlevyonthesaleoffertilizersforpurposes other rights is preconditioned—the right to security of
person of the defendant and over the property
ofbenefitingaprivatecorporation,PhilippinePlantersInc., person is
a guarantee of
the secure quality of this life. In a broad
whichisthesubjectmatteroftheproceeding. sense, the right to security of person "emanates in a person's
isinvalid.Itmaynotbejustifiedevenasavalidexerciseof
c. The
defendant
must
be given an opportunity to be legal and uninterrupted enjoyment of
his life, his limbs, his body,
policepower. his health, and his
reputation. It
includes the right to
exist,
and
heard.
the right to enjoyment of life while existing, and it is invaded not
2. BillofRights d. Judgmentmustberendereduponl awfulhearing. only by a deprivation of life but also of
those things which are
necessary to the enjoyment of life according to the nature,
a. DueProcess 8. AdministrativeDueProcess
temperament,andlawfuldesiresoftheindividual."
a. The
right
to
a hearing, which includes the right to
1. Due process is a guaranty
against
any
arbitrariness
on
the right
The to
liberty, on the other hand, was defined in the City of
present one’s case
and
submit
evidence
in
support Manila,etal.v.Hon.Laguio,Jr.,inthismanner:
partofthegovernment.
thereof.
2. Protects all
persons, natural as well as juridical, citizen or Liberty as guaranteed by the Constitution was defined to include
b. The tribunal must consider the evidence "the right to exist and the right to be free from arbitrary
alien.
presented. restraintorservitude.
3. Juridical persons are also covered
but
only
insofar
as
their
c. The decision must have something to support ⭐Acostav.Ochoa2019EnBancLeonen,J
propertyisconcerned.
itself.
4. To deprive is to “take away forcibly, to prevent from There is no constitutional right to bear arms. Neither is the
d. Theevidencemustbes ubstantial. ownership or possession of a firearm a property right. Persons
possessing,enjoyingorusingsomething.”
e. The decision must be
rendered
on
the
evidence intending to use a firearm can only either accept or decline the
5. Deprivation
is
denial
of
the right to life, liberty or property. government's terms for its use. The grant of license, however, is
presentedatthehearing.
It is per se not unconstitutional. What is prohibited is withoutprejudicetotheinviolabilityofthehome.
deprivationwithoutdueprocessoflaw. f. The tribunal or body
or
any
of
its
judges
must
act
With the bearing of arms being a mere privilege granted by the
on
its
or
his
own independent consideration of State, there could not have been a deprivation of petitioners'
6. Dueprocessi scomprisedoftwo(2)components—
the
law
and
facts
of the controversy and not simply right to due process in requiring a license for the possession of
firearms. Article III, Section 1 of the Constitution is clear
that
only
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life, liberty, or property is protected by the due process Scrutiny restrictingthepolitical compelling,ratherthan In
Samahan ng Progresibong Kabataan v. Quezon City, this Court
clause. True property rights arise from legitimate claims of process;regulationof substantialgovernmental summarized the
three (3) tests to determine the reasonableness
entitlement defined by existing rules or understanding that stem from speech,gender,orrace, interestandontheabsence ofaclassification:
anindependentsource,suchaslaw. otherfundamental oflessrestrictivemeansfor
Thestrictscrutinytesta pplieswhenaclassificationeither
rightssuchassuffrage, achievingthatinterest.
Assuming, for the sake of argument, that the right to possess a judicialaccess, 1. interferes with t he exercise of fundamental rights,
firearm was considered a property right, it is doctrine that interstatetravel including the basic liberties guaranteed under the
propertyrightsarealwayssubjecttotheState'spolicepower.
Constitution,or
Intermsofjudicial Determinesthequalityand
InreAbellanav.Paredes2
019 2. burdenss uspectclasses.
reviewofstatutesor theamountofgovernmental
Jurisprudence has recognized that the writ of habeas corpus may also ordinances: interestbroughttojustify The intermediate scrutiny test applies when a classification
be
availed
of
as a post-conviction remedy when,
as a consequence theregulationof does not
involve suspect
classes or
fundamental
rights,
but requires
sentence as to circumstance of a judicial proceeding, any of the fundamentalfreedoms. heightened scrutiny,
such
as
in
classifications
based on gender and
followingexceptionalcircumstancesisattendant: legitimacy.
Rational Reviewforeconomic Rationallyfurthera
1) there has been a deprivation of a constitutional right Basis legislation;equal legitimategovernmental Lastly, the rational basis test applies to all other subjects not
resultingintherestraintofaperson; Standard protectionchallenges interest coveredbythefirsttwotests.
2) thecourthadn
ojurisdictiontoimposethesentence;or
A "suspect class" is "a class saddled with such disabilities, or
Heightened Classificationbasedon Governmentalinterestis
3) the imposed penalty has been excessive, thus voiding the subjected to such a history of purposeful unequal treatment, or
or genderandlegitimacy extensivelyexaminedand
sentenceassuch excess. relegated to such a position of political powerlessness as to
Immediate theavailabilityofless
command extraordinary protection from the majoritarian political
Even if
it
were
true
that
petitioner or his counsel were not notified of Scrutiny restrictivemeasures
process."
the scheduled hearing, it is
still
not
enough
to
warrant a finding of considered.
denial of due process. For in the application
of
the
principle of
due Juridicalentitiescannotbeconsidereda"suspectclass."
process, what is sought to be safeguarded is not lack of previous b. EqualProtection
The rational basis test may be applied to determine the
noticebutthedenialoftheopportunitytobeheard.
1. Requisitesforvalidclassification constitutionality of Republic Act No. 8971,
Section
47.
The
rational
Angv.Belaro,Jr.2019 basistestrequiresonlythat
a. Baseduponsubstantialdistinctions.
a) therebeal egitimategovernmentinterestandthat
The right to be heard is the most basic principle of
due process. b. Germanetothepurposeofthelaw.
There is only denial of due process when there is total absence or b) there
is
a reasonable
connection between it and the means
lackofopportunitytobeheardortohaveone'sdayincourt. c. Notbelimitedtoexistingconditionsonly. employedtoachieveit.
Technical rules of procedure are not strictly applied in administrative d. Applyequallytoallmembersofthesameclass. A longer period of redemption is given to natural persons whose
proceedings and administrative due process cannot be fully mortgaged properties are
more
often used for residential purposes. A
equated with due process in
its
strict
judicial sense. The essence
of DPWHRegionIV-Av.COA2
019EnBanconSelectiveProsecution shorter period of redemption is given to juridical persons whose
due process is simply to be heard, or as applied to administrative properties are
more often used for commercial purposes. Goldenway
proceedings, an opportunity to explain one's side, or an In People v. Dela Piedra, the Court declared that an erroneous Merchandising explains that the shorter period is aimed to
ensure
opportunity to seek a reconsideration of the action or ruling performance of statutory duty — such as an apparent selective thesolvencyandliquidityofbanks.
complainedof. enforcement of the statute — could not be considered a
violation of the equal protection clause, unless the element of c. FreedomofExpression
intentionalorpurposefuldiscriminationisshown.
Test Dealswith How? Sec 4. No
law
shall be
passed abridging the
freedom of
speech,
⭐ZomerDevelopmentv.CA2020EnBancLeonen,J
of expression, or of the press, or the right of the people peaceably
Strict Freedomofthemind; Focusisonthepresenceof
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to assemble and petition the government for redress of and thus constitutes prior restraint, censorship, and is
Content-based regulation bears a heavy presumption of
grievances. content-restrictive, which resulted to a "chilling effect" in violation of
and this court has used the clear and present danger
invalidity,
thefreedomofthepress.
ruleasmeasure.
Sec 18. No person shall be detained solely by reason of his Our jurisprudence has recognized four aspects of freedom of
politicalbeliefsandaspirations.xxxx If we apply the test for content-neutral regulation, the
questioned
thepress,towit:
acts of COMELEC will not pass
the
three requirements for evaluating
Sec 8. The right
of
the
people,
including
those
employed in
the 1) freedomfrompriorrestraint; such restraints on freedom of speech. “When the speech restraints
public and private sectors, to form unions, associations, or 2) freedomfrompunishmentsubsequenttopublication; take the form of a content-neutral regulation, only a substantial
societiesforpurposesnotcontrarytolawshallnotbeabridged. governmental interest is
required for its validity,” and it is subject
3) freedomofaccesstoinformation;and onlytotheintermediateapproach.
⭐TheDioceseofBacolodv.Comelec2
015EnBancLeonen,J 4) freedomofcirculation.
A content-neutral government regulation is sufficiently
Prior restraint refers to official governmental restrictions on the justified:
The right to freedom of expression applies to the entire
press or other forms of expression in advance of actual publication or
continuum of speech from utterances made to
conduct enacted,
and 1. ifitiswithintheconstitutionalpoweroftheGovernment;
dissemination. Freedom from prior restraint precludes
even to inaction itself as a symbolic manner of communication. 2. if it furthers an important or substantial governmental
governmentalactsthatrequired
Ebralinag v. The Division Superintendent of Schools of Cebu interest;
declaresthat: a) approvalofaproposaltopublish;
3. if the governmental
interest
is
unrelated
to
the
suppression
Freedom of
speech includes the right to be silent. The salute b) licensing or permits as prerequisites to publication offreeexpression;and
is a symbolic manner of communication that conveys its including the payment of license taxes for the privilege to
publish;and 4. if the incident restriction is no greater than is essential to the
message as clearly as the written or spoken word. As a valid
furtheranceofthatinterest.
form of
expression, it
cannot be
compelled any
more than it can c) eveninjunctionsagainstpublication.
be prohibited in the
face
of
valid religious
objections like
those In
this
case, limiting the maximum size of the tarpaulin would render
raisedinthispetition. Any
law or
official
that
requires
some form
of
permission to
be
had ineffective petitioners’ message and violate their right to exercise
before publication can be made, commits an infringement of the freedom of expression. The restriction in the
present case
does
not
The form of expression is just as important as the information constitutionalright,andremedycanbehadatthecourts. pass even
the lower
test
of
intermediate scrutiny for
content-neutral
conveyed that
it
forms
part
of
the
expression. The
present case
is
in
There is prior restraint when the government totally prohibits and/or regulations.
point. Large tarpaulins, therefore, are not analogous to time and
place. They are fundamentally part of expression protected under in
some way, restricts the expression of one's view or the manner of
ArtIII,Section4. expressing oneself. There is
none in this case. No other interpretation SouthernHemisphereEngagementNetworkv.Anti-Terrorism
can be had of respondents' pronouncements except that for
being
a Council2
010EnBanconFacialChallenge
speech must be protected under the safety valve theory. This
Free reminder of prevailing provisions of the law and jurisprudence,
provides that “nonviolent manifestations of dissent reduce the applicable to
all
and not only to
media personalities, that resistance A facial invalidation of a statute is allowed only in free speech
likelihood of violence.” This court has held free speech and other or disobedience to lawful orders of authorities may result to cases, wherein certain rules of constitutional litigation are rightly
intellectual freedoms as “highly ranked in our scheme of criminal,andevenadministrative,liabilities. excepted.
constitutional values.” These rights enjoy precedence and
⭐TheDioceseofBacolodv.Comelec2
015EnBancLeonen,J NB: While this Court has withheld the application of facial challenges
primacy.
to
strictly penal statutes,
it
has expanded its scope to cover statutes
This primordial right calls for utmost respect, more so “when Content-based regulations can either
be
based on the viewpoint of not only regulating free speech, but also those involving religious
what may be curtailed is the
dissemination
of
information to
make the speaker
or
the subject of the expression.Content-based
restraint freedom,ando therfundamentalrights.(Imbongv.Ochoa)
moremeaningfultheequallyvitalrightofsuffrage.” or censorship refers to restrictions “based on the subject matter
of
the utterance or speech.” In contrast, content-neutral regulation The doctrine of vagueness and the doctrine of overbreadth do
Tordesillasv.Puno2
018 NOT operate on the same plane. — A statute
or
act
suffers
from
includes controls merely on the incidents of the speech such as time,
place,ormannerofthespeech. the defect of v
agueness when it lacks comprehensible standards. It
WON the Advisory issued by the
respondents
is
not
content-neutral isrepugnanttotheConstitutionintworespects:
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the due process clause has been utilized in examining the overbreadthb
ecauseobscenityisunprotectedspeech.
1) itviolatesdueprocess;and
constitutionalityofcriminalstatutes.
2) it leaves law enforcers
unbridled
discretion
in
carrying out The
overbreadth and vagueness doctrines have special application
its provisions and becomes an arbitrary flexing of the only to
free speech cases. They are
inapt for testing the validity of
Nicolas-Lewisv.Comelec2
019EnBanc penal statutes. The doctrines of
strict scrutiny, overbreadth, and
Governmentmuscle.
vagueness are
analytical tools
developed for testing "on their faces"
The overbreadth doctrine, meanwhile, decrees that a At
issue
are
Section 36.8 of R.A. 9189, as amended by R.A. 10590 and
statutesinfreespeechcases.
Section 74(II)(8) of the COMELEC Resolution No. 10035, which
governmental purpose to control or prevent activities
prohibit the engagement of any person in partisan political It has been established in this jurisdiction that unprotected
constitutionally subject to state
regulations
may not
be
achieved
by
activitiesabroadduringthe30-dayoverseasvotingperiod. speechorlow-valueexpressionrefersto
means which sweep unnecessarily broadly and thereby invade the
area of protected freedoms. As distinguished from the vagueness The allowance of a review of a law or statute on its face in free speech 1) libelousstatements,
doctrine, the overbreadth doctrine assumes that individuals will cases is justified by the aim to avert the "chilling effect" on protected 2) obscenityorpornography,
understand what a statute prohibits and will accordingly refrain speech,theexerciseofwhichshouldnotatalltimesbeabridged.
fromthatbehavior,eventhoughsomeofitisprotected. 3) falseormisleadingadvertisement,
Restraints
on
freedom of
expression
are
also evaluated by either or a
A "facial" challenge is likewise different from an "as-applied" 4) insulting or
"fighting words," i.e., those which
by
their
very
combinationofthefollowingtheoreticaltests,towit:
utterance inflict
injury
or tend to incite an immediate breach
challenge. — Distinguished from an as-applied challenge which
a) thedangeroustendencydoctrine; ofpeaceand
considers only extant facts affecting real litigants, a facial
invalidation is an examination of the entire law, pinpointing its b) theclearandpresentdangerr ule;and 5) expressionendangeringnationalsecurity.
flaws and
defects, not
only
on
the
basis
of
its
actual operation to the c) thebalancingofinterestst est. A
litigant who
stands charged under a law that regulates unprotected
parties, but also on the assumption or prediction that its very speech can still mount a challenge that a statute is
unconstitutional
When the speech restraints take the form of a content-neutral
existence may cause others not before the court to refrain from as
it
is
applied to
him or her. If the litigant prevails, the courts carve
regulation, only a substantial governmental interest is required
constitutionallyprotectedspeechoractivities. away the unconstitutional aspects of the law by invalidating its
for its validity. They are not subject
to
the
strictest
form
of
judicial
The vagueness and overbreadth doctrines, as grounds for a facial scrutiny but an intermediate approach — somewhere between improperapplicationsonacasetocasebasis.
challenge, are not applicable to penal laws. The allowance of a the mere rationality that is required of any other law and the PharmaceuticalandHealthcareAssociationv.DuqueIII
facial challenge in free
speech cases is
justified by the
aim
to
avert compellingintereststandardappliedtocontent-basedrestrictions.
the "chilling effect" on protected speech, the exercise of which The advertising and promotion of breastmilk substitutes properly
AsexplainedinC
havez,
should not
at
all
times
be
abridged.
This rationale is
inapplicable to falls within the ambit of the term commercial speech—that is,
plain penal statutes that generally bear an "in terrorem effect" in 1) a content-based regulation is evaluated using the clear speechthatproposesaneconomictransaction.
deterringsociallyharmfulconduct. andpresentdangerrule,
Central Hudson provides a four-part analysis for evaluating the
By
its nature, the overbreadth doctrine has to necessarily apply a 2) while courts will subject content-neutral restraints to validityofregulationsofcommercialspeech.
facial type of invalidation. The most distinctive feature of the intermediatescrutiny.
overbreadth technique is
that
it
marks
an
exception
to some of the 1. To
begin with,
the
commercial
speech must "concern lawful
By banning partisan political activities or
campaigning even
during activityandnotbemisleading."
usualrulesofconstitutionallitigation. the
campaign period
within embassies, consulates, and other foreign
service establishments, regardless of whether it applies only to 2. Next, the asserted governmental interest must be
Ordinarily, a particular litigant claims that a statute is
substantial.
unconstitutional as
applied to
him or
her;
if
the
litigant
prevails, the candidates or whether the prohibition extends to
private
persons, it
courts carve away the unconstitutional aspects of the law by goes beyond the objective of maintaining order during the voting If both of these requirements are met, it must next be
invalidating its improper applications on a case to case basis. periodandensuringacredibleelection. determined
Moreover, challengers to
a law are not permitted to raise the rights of 3. Whether the state regulation directly advances the
third parties and can only assert their own interests. In overbreadth ⭐Madrilejosv.Gatdula2
019EnBanc governmentalinterestasserted,and
analysis,thoserulesgiveway.
4. Whether it
is
not
more
extensive
than
is
necessary
to
serve
SC
dismissed
the petition
on the ground
that
Ordinance No. 7780, an
In
this
jurisdiction, the void-for-vagueness doctrine asserted under anti-obscenity law, cannot be facially attacked on the ground of thatinterest.
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SeealsoD
isiniv.SOJ2
014EnBanc 1. uponprobablecause justificationoftheapplication;
To
prohibit the transmission of
unsolicited ads would deny a person 3) the questions should not merely be repetitious of t he
2. tobed
eterminedpersonallybythejudge
the right to read his emails, even unsolicited commercial ads averments stated in the affidavits or depositions of the
3. after examination under oath or affirmation of the applicantandthewitnesses.
addressed to him. Commercial speech is a separate category of
speech which is not accorded the same level of protection as that complainantandthewitnesseshemayproduce,and
given to
other
constitutionally guaranteed forms of expression but is 4. particularly describing the place to be searched and the Fenixv.CA2
016
nonetheless entitled to protection. The State cannot rob
him
of
this
personsorthingstobeseized. We uphold
the power of
judges to dismiss a criminal
case
when the
right without violating the constitutionally guaranteed freedom of
expression. Unsolicited advertisements are legitimate forms of evidence on record clearly fails to establish probable cause
for
the
Estradav.OfficeoftheOmbudsman2
015EnBanc issuanceofawarrantofarrest.
expression.
Probable cause can be established with hearsay evidence, as First, judges have no capacity to review the prosecutor's
d. RightsDuringExpropriation long as there is substantial basis for crediting the hearsay. determination of probable cause. That falls under the office of the
Hearsay evidence is admissible in determining probable cause
in
a DOJSecretary.
1. Owner’s failure to question for a long period of time the preliminary investigation because such investigation is merely
government’s failure to institute expropriation proceedings preliminary, and
does not
finally
adjudicate
rights and obligations of Second, once a complaint or an Information has been filed, the
constitutes a waiver of
his
right to
regain
possession of
his parties. disposition of the case is addressed to the sound discretion of the
property.
His only
remedy is an action for payment of just court,
subject
only to the qualification that its action must not impair
compensationandmaynotsueforejectment. the
substantial rights of
the accused
or
the right
of
the People to due
Peoplev.Ramon2019 processoflaw.
2. AmounttobeDeposited
The
quantum of
proof
to
establish
probable cause and a prima Third, the judge's determination of probable cause has a different
a. Rule 67 — an amount equivalent to the full assessed
facie
case
for
purposes of
issuance
of
an arrest warrant and for objectivethanthatoftheprosecutor.
value of the property in order for the court
to
issue
a
preliminaryinvestigationareoneandthesame.
writofpossession; The judge
is
not
compelled to follow the prosecutor's certification of
b. If the expropriator is an LGU, the amount to be If the evidence on record does not clearly establish probable cause the existence of probable cause. As
stated in
People
v.
Inting, "it
is
deposited is only 15% of the assessed value of the then the imperative is for the prosecutor or the
judge
to
relieve the the report, the affidavits, the transcripts of stenographic notes, and all
property. accused from the pain of going through trial. Conversely, if the finding other supporting documents behind the prosecutor's certification
by the prosecutor or the judge is that the evidence on record whicharematerialinassistingthejudgetomakehisdetermination."
c. In RA 8974, if the purpose of the expropriation is to
sufficiently establishes a prima facie
case
or
probable cause against
implement a national government infrastructure project, theaccused,theaccusedshouldbeindictedandheldfortrial. The panel's act of resolving the complaint against petitioners and
what needs to be
done is
not
a deposit but payment of Ong primarily on the basis of Doble's evidence, and
in
spite
of
the
BIR Zonal valuation of the property. This amount Peoplev.Gabiosa,Sr.2
020 timely submission of the counter-affidavits, was clearly committed
depositedorpaidisNOTthejustcompensation. withgraveabuseofdiscretion.
There is no
need
to
examine
both the
applicant
and
the
witnesses
if
3. In NPC v. Pobre, the expropriator is not allowed to
eitheroneofthemissufficienttoestablishprobablecause. Dimalv.People2
018
unilaterally withdraw because damages may have already
beencausedtotheproperty. The searching questions propounded to the applicant and the A
description of
a place
to be searched is sufficient if the officer with
witnesses depend largely on the discretion of the judge. It is the warrant can ascertain and identify with reasonable effort the
e. SearchesandSeizure axiomaticthat place intended, and distinguish it from other places in the
community. A designation that points out the place to be searched to
Sec 2 Art III. The right
of
the
people to
be
secure
in
their
persons, 1) the examination must be probing and exhaustive, not
merely routinary, general, peripheral, perfunctory or the exclusion of
all others,
and on inquiry unerringly leads the peace
houses, papers, and effects against unreasonable searches and officerstoit,satisfiestheconstitutionalrequirementofdefiniteness.
pro-forma;
seizures of
whatever nature and
for
any purpose shall
be
inviolable,
2) the judge must not simply rehash the contents of the In Vallejo v. CA, the Court c larified that technical precision of
andnosearchwarrantorwarrantofarrestshallissuee xcept description is not required. It is only necessary that there be
affidavit but must make his own inquiry on
the
intent
and
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reasonable particularity and certainty as to the identity of the 3) Appointment to
any
vacancy
shall
be
only
for the unexpired Government, or any of its subdivisions, agencies, or
property to
be
searched
for
and
seized,
so
that
the
warrant shall not instrumentalities, including GOCCs with original
termofthepredecessor.
beamerer ovingcommission. charters,andonap
ost-auditbasis:
4) In
no
case
shall any Member be appointed or designated in a constitutional bodies, commissions and offices that
An otherwise overbroad warrant will comply with the
particularity
temporaryoractingcapacity. have been granted fiscal autonomy under this
requirement when the affidavit filed in support of the warrant is
physically attached to it, and the warrant expressly refers to the
Constitution;
affidavitandincorporatesitwithsuitablewordsofreference. autonomousstatecollegesanduniversities;
CSC As the central personnel agency of the Government, otherGOCCsandtheirsubsidiaries;and
3. CompositionandPowersofthe shallestablishacareerservice.Itshall
such non-governmental entities receiving subsidy or
Government Organs 1. strengthenthemeritandrewardssystem, equity, directly or indirectly, from or through the
2. integrate all human resources development Government, which are required by law or the
Note:ThecompilerassumesthismeanttheConstitutionalCommissions programsforalllevelsandranks,and granting institution to submit to such audit as a
conditionofsubsidyorequity.
Sec 1. The Constitutional Commissions, which shall be 3. institutionalize a management climate conducive to
publicaccountability.
independent,are
a) theCivilServiceCommission, Comelec 1. Enforce and administer all laws and regulations
relative to the conduct of an election, plebiscite, 4. JudicialReview
b) theCommissiononElections,and initiative,referendum,andrecall.
c) theCommissiononAudit. 2. Exercise exclusive original jurisdiction over all Requisites
Sec 5. The Commission shall enjoy fiscal autonomy. Their contests relating to the elections, returns, and 1. Ripeness. — An actual case or controversy calling for
qualifications of all elective regional, provincial,
approved annual appropriations shall be automatically and theexerciseofjudicialpower;
and
city officials, and appellate jurisdiction over all
regularlyreleased. contests involving elective municipal officials 2. Locus standi.
— The
person
challenging
the
act
must
have
Sec 7.
Each
Commission shall
decide
by
a majority vote
of
all decided by trial courts of general jurisdiction, or "standing"tochallenge;
its
Members, any
case or matter brought before it within 60 days involving elective barangay officials decided by 3. The question of constitutionality must be raised at the
trialcourtsoflimitedjurisdiction. earliestpossibleopportunity;and
fromthedateofitssubmissionfordecisionorresolution.
3. Decisions, final orders, or rulings on election 4. The issue
of
constitutionality
must
be very lis mota of
the
AdditionalCommonalities
contests involving elective
municipal and barangay thecase.
1) How appointed and term of office. — All chairpersons officesshallbefinal,executory,andnotappealable.
and
commissioners are
appointed by
the
President with the 4. Decide, except
those
involving
the
right
to
vote, all KilusangMayoUnov.AquinoIII2
019EnBancLeonen,J
consent of
the
Commission on Appointments for a term of 7 questions affecting elections, including
There
is
an
actual
case
or controversy if
there
is
a "conflict
of legal
yearsw ithoutreappointment. determination of the number and location of right, an opposite legal claims susceptible to judicial
polling places, appointment of election officials
2) Staggering of terms. — Of those first appointed, the resolution." A petitioner bringing a case before this Court must
andinspectors,andregistrationofvoters. establish that there is a legally demandable and enforceable
Chairman shall
hold office
for
seven years, a Commissioner
amongothers rightundertheConstitution.Theremustbe
for five years (2 for Comelec), and another Commissioner
for three years (the remaining 4 for Comelec), without COA Shall have the power, authority, and duty to examine, 1. arealandsubstantialcontroversy,
reappointment. audit, and settle all accounts pertaining to
the revenue 2. with definite and concrete issues involving the legal
and receipts of, and expenditures or uses of
funds and relationsoftheparties,and
property, owned or
held in trust by, or pertaining to, the 3. admittingofspecificreliefthatcourtscangrant.
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6. PowersoftheSupremeCourt
Moreover, an actual case or controversy requires that the right must In some circumstances similar to those in White Light, the third
be enforceable and legally demandable. A case is ripe for parties represented by the petitioner would have special and
adjudication when the challenged governmental act is a completed legitimate reasons why they may not bring the action themselves. 1. Exercise original jurisdiction over cases affecting
action such that there
is
a direct,
concrete,
and adverse effect on the Understandably, the cost to patrons in the White Light case to
ambassadors, other public ministers and consuls, and over
petitioner. In connection with acts of administrative agencies, bring the action themselves—i.e., the amount they would
pay
for the lease of the motels—will be too small compared with petitions for certiorari, prohibition, mandamus, quo warranto,
ripeness is ensured under the doctrine of exhaustion of
the cost of the suit. This is the free rider problem in economics. It andhabeascorpus.
administrative remedies. One other concept pertaining to judicial
review is intrinsically connected to it: the concept of a case being is
a negative externality which operates as a disincentive to sue and 2. Review, revise, reverse, modify, or affirm on appeal or
mootandacademic. assertatranscendentalright.
certiorari, as the law or the Rules of Court may
provide,
final
Astoactualcontroversy. judgmentsandordersoflowercourtsin:
As mootness, Courts
for cannot render judgment after the issue has
already been resolved by or through external developments. Only constitutional rights shared by many and requiring a a. All cases in which the constitutionality or validity of any
However,Courtswilldecidecases,otherwisemootandacademic,if: grounded level
of
urgency can
be
transcendent. This
Court
is
not
a
treaty, international or executive agreement, law, presidential
forum to appeal political
and
policy choices
made by
the
Executive,
1. thereisag
raveviolationoftheConstitution; Legislative,andotherconstitutionalagenciesandorgans. decree, proclamation, order, instruction, ordinance, or
2. the exceptional character of the situation and the regulationisinquestion.
paramountpublicinterestisinvolved; 5. SupervisionofCourts b. All cases involving the legality of any tax, i mpost,
3. when constitutional issue raised requires formulation of assessment, or toll, or any penalty imposed in relation
controlling principles to guide
the
bench,
the
bar,
and
the Macedav.Vasquezresupervisionoflowercourtsandpersonnel
thereto.
public;and
Article VIII, Section 6 exclusively vests in the Supreme Court c. All cases in which the jurisdiction
of
any
lower
court
is
in
4. thecaseiscapableofrepetitionyetevadingreview. administrative supervision over all courts and court personnel. By issue.
virtue
of
this
power,
it is only the Supreme Court that can oversee the
Three (3)
circumstances must
be
present before
this Court
may
rule d. All
criminal cases in which the penalty imposed is reclusion
judges'
and court
personnel's compliance with
all
laws,
and
take the
on a moot issue.
There
must
be
an
issue
raising a grave
violation
proper administrative action against them if they commit any perpetuaorhigher.
of the Constitution, involving an exceptional situation of
violationthereof.
paramount public interest that is capable of repetition yet e. All cases in which only an error or question of law is
evadingreview. Thus, the Ombudsman should first refer the matter of involved.
petitioner's certificates of
service to
this Court for determination
3. Assign temporarily judges
of lower courts
to other stations as
⭐ProvincialBusOperatorsAssociationofthePhilippinesv.DOLE of whether said certificates reflected the true status of his pending
case load, as the Court has the necessary records to make such a public interest may require. Such temporary assignment shall
2018EnBancLeonen,J
determination. not exceed six months without the consent of the judge
Another exception is
the
concept third-party
of standing. Under Where a criminal complaint against a judge or other court concerned.
this concept, actions may be brought on behalf of third parties employee arises from their administrative duties, the 4. Order a change of venueor
place of trial to avoid a miscarriage
providedthefollowingcriteriaaremet: Ombudsman must defer action on said complaint and refer the ofjustice.
1. first, the party bringing suit must have suffered an same to this Court for determination whether said judge or
'injury-in-fact,' thus giving him or her a sufficiently court employee had acted within the scope of their 5. Promulgate rules concerning the protection and enforcement of
concreteinterest'intheoutcomeoftheissueindispute; administrativeduties. constitutional rights, pleading, practice, and procedure in all
2. second, the party must have a close relation to the third courts, the admission to the practice of law, the integrated
bar,
party;and andlegalassistancetotheunder-privileged.
3. third, there
must
exist
some hindrance
to
the third party's 6. Appoint all officials and employees of the Judiciary in
abilitytoprotecthisorherowninterests. accordancewiththeCivilServiceLaw.
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7. Qualification,DisqualificationsandSelection Government or any subdivision, agency, or
1. such
additional
duties
or
functions must
be
required
by the
instrumentality thereof, including GOCCs or their
Position Citizen Age Res Reg Term Limit primaryfunctionsoftheofficialconcerned,
subsidiaries.
2. who is to perform the same in an ex-officio capacity as
Ineligiblefor providedbylaw,
The spouse and
relatives by consanguinity or affinity within the
anyelection;
Pres
Natural-
fourth civil
degree of
the President shall not, during his tenure, 3. withoutreceivinganyadditionalcompensationtherefor.
Born 40 10 PH 6 Successorwho
servedatleast4 beappointedas
years. PublicInterestCenterv.ElmaD
ecisionandR
esolution
a) MembersoftheConstitutionalCommissions,or
Natural- b) theOfficeoftheOmbudsman,or The crucial test in determining whether incompatibility exists
VP 40 10 PH 6 2consecutive
Born between two
offices
was laid
out
inPeople
v. Green — whether one
as Secretaries, Undersecretaries, chairmen or heads of bureaus or office is
subordinate to the other, in the sense that one office has the
Natural- offices,includingGOCCsandtheirsubsidiaries. righttointerferewiththeother.
Senator
Born 35 2 PH 6 2consecutive
In
this
case,
an
incompatibility exists
between the positions of the
Party- Natural- CivilLibertiesUnionv.ExecutiveSecretary PCGG Chairman and the CPLC. The PCGG is, without question, an
ListRep Born 251 1 PH 3 3consecutive
agency under the Executive Department. Thus, the actions of the
The prohibition imposed on the President and his official PCGGChairmanaresubjecttothereviewoftheCPLC.
District Natural- family is all-embracing and covers both public and private
Rep Born 25 1 District 3 3consecutive
officeoremployment. The strict prohibition under Section 13, Article VII of the 1987
Constitution is not applicable to the PCGG
Chairman nor to the
Section 7, Article IX-B is meant to lay down the general rule CPLC. However, Elma remains covered by the general prohibition
a. PresidentandVicePresident applicable to all elective and appointive public officials and underSection7,ArticleIX-B.
employees, while Section 13, Article VII is meant to be the exception
Sec 4. The President and the
Vice-President shall
be
elected
by applicable only to the
President, the
Vice-President, Members of
the Elma's concurrent appointments as PCGG Chairman and CPLC are
direct vote
of
the
people
for a term of 6 years xxx. The President Cabinet, their deputies and assistants. The phrase
"unless otherwise unconstitutional, for
being
incompatible offices. This ruling does not
shalln otbeeligibleforanyre-election. provided in
this Constitution" must be given a literal interpretation to render both appointments void. Following the
common-law rule on
refer only to those particular instances cited in the Constitution itself, incompatibility of offices, Elma had, in effect, vacated his first
No person who has succeeded as President and has served as towit: office as PCGG Chairman when he accepted the second office as
such for
more than 4 years shall be qualified for election to the CPLC.
1. the Vice-President being appointed as a member of the
sameofficeatanytime. Cabinet under Section 3, par(2), Article VII; or acting as
NoVice-Presidentshallserveformorethan2
successiveterms. President in
those
instances provided
under Section 7, pars. Funav.ExecutiveSecretary2
010EnBanc
(2)and(3),ArticleVII;and,
Sec 13. The President, Vice-President, the Members of the Respondent Bautista being then the appointed Undersecretary of
2. the Secretary of Justice
being
an
ex-officio
member of
the DOTC, she
was thus covered by the stricter prohibition under Section
Cabinet, and their deputies or assistants shall not, unless
JudicialandBarCouncilbyvirtueofSec8(1),ArticleVIII. 13, Article VII and consequently she cannot invoke the exception
otherwise provided in this
Constitution, hold
ANY
other office
If the functions required to be performed are merely incidental, provided in Section 7, paragraph 2, Article IX-B where holding
oremploymentduringtheirtenure. another office is allowed by law or the primary functions of the
remotely related, inconsistent, incompatible, or otherwise alien
Theys hallnot,duringsaidtenure,directlyorindirectly, to the primary function of a cabinet official, such additional position. Neither was she
designated OIC of
MARINA in an ex-officio
functions would fall under the purview of "any other office" capacity,whichistheexceptionrecognizedinC ivilLibertiesUnion.
a) practiceanyotherprofession,
prohibitedb ytheConstitution.
b) participateinanybusiness,or
In order
that
such
additional
duties or
functions may not transgress
c) be financially
interested
in
any
contract
with,
or
in
any the prohibition embodied in Section 13, Article VII of the 1987
franchise, or special privilege granted by the Constitution,
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b. SenatorsandMembersoftheHouseof Does mandamus lie to compel the submission of the shortlist of
GonzalesIIIv.OfficeofthePresident2
014EnBanc
Representatives nomineesbytheJBC? Section 8(2) of RA No. 6770 vesting disciplinary authority in the
NO. The 90-day period is directed at
the President, not
at
the President over the
Deputy Ombudsman violates the independence of
1) No
Senator or
Member of
the
House
of Representatives may theOfficeoftheOmbudsmanandisthusunconstitutional.
JBC. Thus, the JBC should start the process of selecting the candidates
hold any
other office
or
employment in
the
Government,
or to
fill
the
vacancy in
the
Supreme Court before the occurrence of the The Office of the Ombudsman, by express constitutional mandate,
any subdivision, agency, or instrumentality thereof, vacancy. includes its key officials, all of them tasked to support the
including GOCCs or their subsidiaries, during his term Ombudsman in carrying out her mandate. What is true for the
The duty of the JBC to submit a list of nominees before the start of the
withoutforfeitinghisseat.(I ncompatibleoffice) President's mandatory 90-day period to appoint is
ministerial, but Ombudsman must be equally and necessarily true for her
its selection of the candidates whose names will
be in the
list
to
be Deputies who act as agents of the Ombudsman in the
2) Neither shall
he
be appointed to any office which may have
submitted to
the President
lies within the discretion of
the
JBC.
For performanceoftheirduties.
been
created or the emoluments thereof increased during the
mandamus to lie against the JBC, therefore, there should be an
termf orwhichhewaselected.(F orbiddenoffice) e. MembersofConstitutionalCommissions
unexplained delay on its part in recommending nominees to the
Judiciary,thatis,insubmittingthelisttothePresident. 1) Natural-borncitizens;
Libanv.Gordon
2) atleast35yearsolda tthetimeofappointmentand
Not being a government official
or
employee, the PNRC Chairman, as Aguinaldov.AquinoIII2
017EnBancre
such, does not hold a government office or employment. We hold that clusteringofnomineesbytheJBC 3) must not
have
been
candidates
for
any elective position in
the office of the PNRC Chairman is not a government office or an theelectionsimmediatelyprecedingtheirappointment.
office in
a GOCC for purposes of the prohibition in Section 13, Article The clustering of nominees for the six vacancies in the
Sandiganbayan by the JBC impaired the President's power to CSC Comelec COA
VIofthe1987Constitution.
appoint members of
the
Judiciary
and
to
determine
the
seniority
of
thenewly-appointedSandiganbayanAssociateJustices. 1Chair+2
c. JusticesandJudges Comms
1Chair+6Comms 1Chair+2Comms
It
also
bears to
point out that part of the President's power to appoint
Sec 7. No person shall be appointed Member of the
Supreme members of a collegiate court, such as the Sandiganbayan, is the 7yearswithoutreappointment
Court or any lower collegiate court unless he is a power to determine the seniority or
order of
preference of
such
newly appointed members by controlling the date and order of
natural-born citizen of the Philippines. A Member of the
issuance of said members' appointment or commission papers. By amajoritythereof, CPAswithnotlessthan10
SupremeCourtmustbe already designating the numerical order of the vacancies, the JBC includingthe yearsofauditingexperience,
1. atleast40yearsofage,and would be
establishing the seniority or order of preference of the new Chair,shallbe ORmembersofthePhilippine
withproven
Sandiganbayan Associate Justices even before their appointment by membersofthe Barwhohavebeenengagedin
2. must have been for 15 years or more, a judge of a capacityfor
the President and, thus, unduly arrogating unto itself a vital
part
of PhilippineBar thepracticeoflawforatleast
lower court or engaged in the practice of law in the public
thePresident'spowerofappointment. whohavebeen 10years.
Philippines. administration
engagedinthe
d. Ombudsman practiceoflawfor AtnotimeshallallMembers
The Congress shall prescribe the qualifications of judges of belongtothesameprofession.
atleast10years.
lower courts, but no person may be appointed judge thereof Art XI Sec 9. The Ombudsman and his Deputies shall be
unless he is a citizen of
the
Philippines
and
a member of
the appointed by the President from a list of at
least
six
nominees
PhilippineBar. prepared by
the
JBC,
and
from a list
of
three nominees for every Funav.Villar2
012EnBanc
A Member of the Judiciary must be a person of proven vacancy thereafter. Such appointments shall require no
The Court restates its ruling on Sec. 1(2), Art. IX(D) of the
competence,integrity,probity,andindependence. confirmation. All
vacancies shall be
filled within three
months Constitution,viz:
aftertheyoccur.
DeCastrov.JBC2
010EnBanc 1. The appointment of members of any of the three
constitutional commissions, after the expiration of the
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uneven terms of office of the first set of commissioners, not
be
impleaded in
any
suit
during
his
or
her
incumbency, as Congress does not destroy the privilege. The disciplinary authority of
shall always be for a fixed term of seven (7) years; an recentlyreiteratedinK ilusangMayoUnov.AquinoIII. the assembly and
the
voters,
not
the
courts, can properly discourage
appointmentforalesserperiodisvoidandunconstitutional. or correct such abuses committed in the name of parliamentary
2. Appointments to vacancies resulting from certain
causes b. PrivilegesofLegislators immunity.
shall only be for the unexpired portion of the term of the For the above
reasons, the
plea
of
Senator
Santiago
for
the dismissal
predecessor, but such appointments cannot be less than i. FreedomfromArrest
of
the complaint for
disbarment or
disciplinary
action
is
well taken.
the unexpired portion as this will likewise disrupt the Indeed, her privilege speech is not actionable criminally or in a
Sec 11. A Senator or Member of the House of
staggeringofterms. disciplinaryproceedingundertheRulesofCourt.
Representatives shall, in all offenses
punishable by not
3. Members who were
appointed for
a full
term of seven years
more than six years imprisonment, be
privileged
from
and who served the entire period, are barred from
arrestw
hiletheCongressisinsession.
9. StructureofGovernment
reappointmentt oanypositionintheCommission.
No Member shall be questioned nor
be
held
liable
in any a. Composition
4. A commissioner who resigns after serving in the
Commission for less than seven years is eligible for an other place
for
any
speech or
debate
in
the
Congress or in
i. Legislative
appointment to the position of Chairman
for the
unexpired anycommitteethereof.
portionofthetermofthedepartingchairman.
a. Such appointment is not covered by the ban on TrillanesIVv.Castillo-Marigomen2
018 Semav.Comelec
reappointment, provided that the vacancy in the The office of a legislative district representative to Congress is a
position of Chairman resulted from death, The questioned statements in this case were admittedly made in
response to queries from the media during gaps in the Senate's national office, and its occupant, a Member of the House of
resignation,disabilityorremovalbyimpeachment.
plenary and committee hearings, thus, beyond the purview of Representatives, is a n ational official. It would be incongruous
5. Any member of the Commission cannot be appointed or privilegedspeechordebateunderSection11,ArticleVI. for a regional legislative body like the
ARMM Regional
Assembly to
designatedinat emporaryo ractingcapacity. create a national office
when its legislative
powers extend only to its
Petitioner cannot successfully invoke parliamentary regionalterritory.
8. ImmunityandPrivileges nonaccountability to insulate his statements, uttered outside the
"sphereoflegislativeactivity,"fromjudicialreview. AquinoIIIv.Comelec2
010EnBanc
a. PresidentialImmunity
ii. PrivilegeofSpeechandDebate
There is
no specific provision in the Constitution that fixes a 250,000
⭐DeLimav.Duterte2
019EnBanc
minimum population that
must compose a legislative district. While
The concept of presidential immunity under our governmental and TrillanesIVv.Pimentel,Sr. a province is entitled to at least a representative, with nothing
constitutional system does not distinguish whether or not the suit mentioned about population, a city must first meet a population
pertains to an official act of the President. Neither does immunity The performance of legitimate and even essential duties by public
minimumof250,000inordertobesimilarlyentitled.
hinge on the nature of
the
suit. The lack
of
distinctions prevents us officers has never
been an excuse
to
free a person validly
in
prison.
frommakinganydistinctions. The
duties imposed by the "mandate of
the people" are multifarious. Plainly read, Section 5(3)
requires a 250,000 minimum population
Never has the call of a particular duty lifted
a prisoner into
a only
for a city
to
be
entitled
to a representative, but not so for a
SeparateconcurringofLeonen,J different classification from those others who are validly province.
Presidential immunity from suit
only
extends to civil,
criminal, and restrainedbylaw.
Population is
not
the
only
factor
but is just one of several other
administrative liability. A proceeding for the issuance of a writ of
habeasdata,asinthiscase,doesnotdetermineanysuchliability. factorsinthecompositionoftheadditionaldistrict.
Pobrev.Santiago
However, the proper respondent in a habeas data case for Courts do not interfere with the
legislature or its
members in Aldabav.Comelec2
010EnBancResolution
pronouncements made by
the
President in his official capacity is the the manner they perform their functions in the legislative floor
Executive Secretary, following the ruling in
Aguinaldo v.
Aquino or in committee rooms. Any claim of an unworthy purpose or of the The constitutionality of a legislative
apportionment
act
is
a judicial
III. This is in accord with the doctrine that the president should falsity and
mala
fides
of
the
statement uttered
by the member
of the question,andnotapoliticalone.
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ingaugingequalityofrepresentation. RA No. 7941 mandates at least four inviolable parameters.
Aside from failing to comply with Section 5(3), Article VI on the
population requirement, the creation by
RA
9591 of
a legislative Theseare:
district for Malolos City, carving the city from the former 1st Mariano,Jr.v.Comelec 1. First, the twenty percent allocation — Section 5 (2),
District, leaves the town of Bulacan isolated from the rest of the Petitioners have not demonstrated that the delineation of the land Article VI
is
not
mandatory.
It
merely
provides a ceiling for
geographic mass of that district. This contravenes the requirement area of the proposed City of Makati will cause confusion as
to
its party-listseatsinCongress.
in Section 5(3), Article VI that each legislative district shall boundaries. Section
2 stated
that
the
city's
land
area “shall comprise 2. Second, the two percent threshold — as qualified by
"comprise, as far as practicable, contiguous, compact, and thepresentterritoryofthemunicipality.” BANAT
adjacentterritory."
Even granting that the population of Makati stood at 450K, its 3. Third,t hethree-seatlimit;
legislative district may still be increased since it has met the 4. Fourth,p
roportionalrepresentation.
Bagabuyov.Comelec minimum population requirement of 250K. Section 3 of the
Ordinance appended to the Constitution provides that a city whose The formula, therefore, for
computing the
number
of
seats
to
which
Legislative apportionment is defined as the determination of the
population has increased to more than 250K shall be
entitled to
at thefirstpartyisentitledisasfollows:
number of
representatives which a State, county or other subdivision
maysendtoalegislativebody. leastonecongressionalrepresentative. N umber of votes of f irst party
T otal votes f or party −list system = P roportion of votes of 1st party
Reapportionment, on the other hand, is the realignment or change
Aldabav.Comelec2
010EnBancDecision
in legislative districts brought about by changes in
population
and The next step is to
solve
for
the
number
of
additional
seats
that
the
mandated by the constitutional requirement of equality of Intercensal demographic projections cannot be made for the entire other qualified parties are entitled to, based on proportional
representation. year. In
any event,
a city whose
population has increased to 250,000 representation.
is entitled to have a legislative district only in the "immediately
A
pronounced distinction between Article VI, Section 5 and, Article X, N o. of votes of party
followingelection"aftertheattainment. Addt′l seat = N o. of votes of f irst party × N o. of additional seats of 1st party
Section 10 is
on
the
requirement a plebiscite. The
of Constitution
and the
LGC expressly require
a plebiscite to
carry
out
any
creation, First, certifications on demographic projections can be issued
only if such projections are declared official by the National BantayRA7941v.Comelec2
007EnBanc
division, merger, abolition or alteration of boundary of an LGU. In
contrast, no plebiscite requirement exists under the apportionment StatisticsCoordinationBoard(NSCB). Comelec has
a constitutional
duty
to
disclose
and
release the names
orreapportionmentprovision. Second, certifications based on demographic projections can be of the nominees of the party-list groups named in the herein
petitions.
A
legislative apportionment does not mean, and does not even imply, issued only by the NSO Administrator or his designated
a
division of
an
LGU
where the apportionment takes place. Thus, the certifyingofficer.
CIBACv.Comelec2
007EnBanc
plebiscite requirement that
applies to the division of a province, city, Third, intercensal
population
projections
must
be
as
of
the middle
municipality or
barangay under the LGC should not apply to and be a In
determining the
number
of additional
seats for each party-list that
ofeveryyear.
requisite for the validity of a legislative apportionment or has met the 2% threshold, "proportional representation" is the
reapportionment. touchstonetoascertainentitlementtoextraseats.S eeBANAT
Party-ListSystem
Equalityofrepresentation.
Shall constitute 20% of the total number of representatives AngBagongBayaniv.Comelec2
001EnBanc
The law clearly provides that the basis for districting shall be the includingthoseunderthepartylist.
1. The political party, sector, organization or coalition must
number of the inhabitants of a city or a province, not the VeteransFederationPartyv.COMELEC2
000EnBanc represent the marginalized and underrepresented groups
number of registered voters therein. The Constitution does not
identified in Section 5 of RA 7941. Verily, majority of its
require mathematical exactitude or
rigid equality as a standard
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membership should belong to the marginalized and createssuchadditionalparty-listseats. 1. National parties or organizations and regional parties or
underrepresented. The filling-up of
all
available party-list seats
is
not
mandatory. organizations do not need
to
organize
along
sectoral
lines
and
2. Disqualificationsu
nderSec6ofRA7941: Actual occupancy of the party-list seats depends on the number of do not need to represent any “marginalized and
participantsintheparty-listelection. underrepresented”sector.
a. It is a religious sect or denomination, organization or
associationorganizedforreligiouspurposes; There are four parameters in a Philippine-style party-list election 2. Political parties can
participate in
party-list
elections provided
b. Itadvocatesviolenceorunlawfulmeanstoseekitsgoal; system: they register under the party-list system and do not field
1. Twenty percent of the
total
number
of
the
membership of candidatesinlegislativedistrictelections.
c. Itisaforeignp
artyororganization;
the House is the maximum number of seats available to A political party that fields candidates in legislative district
d. It is receiving support from any foreign government, party-list organizations, such that there is automatically elections can participate in
party-list
elections only through its
politicalparty,foundation,organization; one party-list seat for every four existing legislative sectoral wing that can separately register under the party-list
e. It violates or fails to comply with laws, rules or regulations districts. system. The sectoral wing is by itself an independent
relatingtoelections; 2. Garnering two percent of the total votes cast in the sectoral party, and is linked to a political party through a
f. Itdeclaresu
ntruthfulstatementsinitspetition; party-list elections guarantees a party-list organization coalition.
oneseat. 3. Sectoralpartiesororganizationsmayeitherbe
g. Ithasceasedtoexistforatleastone(1)year;or
3. The additional seats shall be distributed to
the
party-list a. “marginalized and underrepresented” — labor,
h. It fails to
participate in
the last two
(2)
preceding elections
organizations including those that received less than two peasants, fisherfolk, urban poor, indigenous cultural
or fails to obtain at least two percentum (2%)
of
the
votes
percentofthetotalvotes. communities, handicapped,
veterans,
and overseas workers;
cast under the party-list system in the two (2) preceding
electionsfortheconstituencyinwhichithasregistered. The continued operation of the two percent
threshold as
it or
3. The party or organization must NOT be an adjunct of, or a applies to the allocation of the additional seats is now b. lacking in “well-defined political constituencies.” —
unconstitutional. professionals,theelderly,women,andtheyouth.
project organized or an entity funded or assisted by, the
government. The additional seats shall be distributed
to
the
parties
in
a 4. A
majority of
the
members of sectoral parties must belong
4. The party must not only comply with the requirements of the second round of seat allocation until all available to the “marginalized and underrepresented” sector they
law;itsn
omineesmustlikewisedoso. seatsarecompletelydistributed. represent. Same rule applies to sectors that lack “well-defined
4. Thethree-seatcapisconstitutional. politicalconstituencies.”
5. Not only the candidate party or organization must represent
marginalized and underrepresented sectors; so also must its Thenomineesofsectoralpartiesororganizationseither
nominees. PhilGuardiansBrotherhoodv.Comelec2
010EnBanc a. mustbelongtotheirrespectivesectors,or
6. While lacking a well-defined political
constituency, the nominee The COMELEC may motu
proprio
or
upon verified
complaint of
any b. must have a track
record
of
advocacy
for
their
respective
must likewise be able to contribute to the formulation and interested party, remove or
cancel, after
due
notice and hearing, the sectors.
enactment of appropriate legislation that
will
benefit
the
nation registration of any national, regional or sectoral party, organization or The nominees of national and regional
parties
or
organizations
asawhole. coalitionifit: mustbebona-fidem embersofsuchpartiesororganizations.
a) failstoparticipateinthelasttwo(2)precedingelections;or
BANATv.Comelec2
009EnBancDecisionandResolution ii. Executive
b) fails to
qualify
for
a seat
in
the
two
preceding
elections
There
is
no
need for
legislation to
create an additional party-list seat fortheconstituencyinwhichitregistered.
Sec
1 Art
VII.
THE
executive
power
shall
be
vested in the
whenever four additional legislative districts are created by law.
Section 5(2), Article VI of the 1987 Constitution automatically PresidentofthePhilippines.
AtongPaglaumv.Comelec2
013EnBanc
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iii. Judiciary
iii. Judiciary hence, beyond the reach of Congress except through the power of
Judicial power includes the duty of the courts of
justice
to
settle impeachment.
Sec 1 Art VIII. The
judicial
power
shall
be
vested
in
one Section 1 cannot be applied to appearances of department
actual controversies involving rights which are legally
Supreme Court and in such lower courts as may be heads in inquiries in
aid of
legislation. Congress is
not
bound
in
demandableandenforceable.
establishedbylaw.xxxx such instances to respect the refusal of the department head to appear
Judicial Review. — and to
determine whether or not there has in such inquiry, unless a valid claim of privilege is subsequently
Sec 4. The Supreme Court shall be composed of a Chief been a grave
abuse of
discretion amounting to
lack
or
excess made,eitherbythePresidentherselforbytheExecutiveSecretary.
Justice and
fourteen
Associate Justices. It may sit en banc of
jurisdiction on
the part of any branch or instrumentality of
or in its discretion, in division of three, five, or seven theGovernment. LegislativeInvestigations
Members. Any vacancy shall be filled within 90 days c. PowersandPrivileges Section 21. The Senate or the
House of
Representatives or
any of
fromtheoccurrencethereof.xxxx its respective committees may conduct inquiries in aid of
i. Legislative legislation in accordance with its duly published rules of
b. Functions
procedure. The rights of
persons appearing in,
or
affected
by,
such
i. Legislative Legislativeinquiriesandoversightfunctions
inquiriesshallberespected.
Legislative power has been defined not only as the power to QuestionHour Bengzonv.SenateBlueRibbonCommittee
pass laws
but
also
the power to alter or modify them. It also covers
Sec 22. The heads of
departments may, upon
their own
initiative, The
power of
both houses
of
Congress
to
conduct
inquiries in aid of
the amendment of existing legislations and that would still be
encompassedaslegislativepower. legislation is
not,
therefore,
absolute
or unlimited. The investigation
with the consent of the President, or upon the request of either
mustbe
General Plenary Powers. — The legislative power shall be vested House, as the
rules
of each
House
shall provide, appear before and
in the Congress of the Philippines which shall consist
of
a Senate a) in aid
of
legislation
in
accordance
with
its
duly
published
be heard by such House on any matter pertaining to their
and a House of
Representatives, except to the extent reserved to the rulesofprocedureand
departments.xxxx
people by the
provision on
initiative and referendum. (Sec 1 Art b) that the rights of persons appearing
in
or
affected
by
such
VI) ⭐SenateofthePhilippinesv.Ermita inquiriesshallberespected.
ii. Executive The contemplated inquiry by respondent Committee is
not really "in
Section 22 which provides for
the
question hour must be interpreted
aid of legislation" because it is not related to a purpose within the
vis-á-vis Section 21 which provides for
the
power of either House of
Marcosv.ManglapusD
ecisionandR
esolution jurisdiction of
Congress, since the
aim of
the
investigation is
to
find
Congress to "conduct inquiries in
aid
of
legislation." A distinction
out
whether or
not the
relatives of
the
President or Mr. Ricardo Lopa
The
powers of
the
President
cannot be
said
to
be
limited
only
to the was made between inquiries in aid of legislation and the question
had violated Section 5 of RA No. 3019, the "Anti-Graft and Corrupt
specific powers enumerated in the Constitution. In other words, hour. While attendance was meant to be discretionary in the
Practices Act",
a matter that appears more within the province of the
executive power is more than the sum of specific powers so question hour, it was compulsory in inquiries in aid of
courtsratherthanofthelegislature.
enumerated. legislation.
This
is
so,
notwithstanding the avowed intent of
the members of the In fine, the oversight function of Congress may be facilitated by NegrosOrientalIIElectricCoopv.SPofDumaguete
Constitutional Commission of 1986—to limit the powers of the compulsory process only to the extent that it is performed in
President, for the result was a limitation of specific powers of the pursuitoflegislation. The exercise
by the legislature of the contempt power is a matter of
President, particularly those relating to the commander-in-chief self-preservation as that branch of the government vested with the
When Congress exercises its power of inquiry, the only way for
clause, but not a diminution of the general grant of executive legislative power, independently of the judicial branch, asserts its
department heads to exempt themselves therefrom is by a valid
power. authority and punishes contempts thereof. The contempt power of
claim of privilege. They are not exempt by
the
mere
fact
that
they
the
legislature is,
therefore, sui
generis, and local legislative bodies
are department heads. Only one executive official may
be
exempted
cannot correctly claim to
possess it
for
the
same reasons that
the
from this power — the President on whom executive power is vested,
nationallegislaturedoes.
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Arnaultv.Nazareno subject to balancing against other interest. In other words,
Thus,
Section 4(b) is directly repugnant with Article VI, Section 21.
confidentiality in
executive
privilege
is
not
absolutely protected
by
Section 4(b) exempts the PCGG members and staff from the
Once an inquiry is admitted or established to be within the theConstitution.
Congress' power of inquiry. This cannot be countenanced.
jurisdiction of
a legislative
body
to
make, we think the
investigating
Nowhere in the Constitution is any provision granting such
committee has the power to require a witness to answer any question StandardCharteredBankv.SenateCommitteeonBanks
exemption.
pertinent to
that inquiry,
subject
of
course to
his constitutional right
againstself-incrimination. Central to the Court’s ruling in Bengzon was the C
ourt’s
Gudaniv.Senga determination that the intended inquiry was not in aid of
If the subject of investigation before the committee is within
legislation.
the range of legitimate legislative inquiry and the proposed If
the
President or the Chief of
Staff refuses to allow a member of the
testimony of the witness called relates to that subject, AFP to appear before Congress, the legislative body seeking such Indeed, the
mere filing
of
a criminal
or
an
administrative complaint
obedience to
its
process may
be enforced by the
committee by testimony may seek judicial relief to compel the attendance. before
a court
or
a quasi-judicial body should not automatically bar
imprisonment. Such judicial action should be directed at
the heads of
the
executive theconductoflegislativeinvestigation.
branch or the armed forces, the persons who wield authority and
SenateBlueRibbonCommitteev.Majaducon control over the actions of the officers concerned. The legislative RomeroIIv.Estrada
purpose of
such testimony, as
well as any defenses against the same
When the Senate Blue Ribbon Committee served subpoena on — whether grounded on executive privilege, national security or Suffice it to state that when the Committee issued invitations and
respondent Flaviano to appear and testify before it in connection with similar concerns — would be accorded due judicial evaluation. All subpoenas to petitioners to appear before it in connection with its
its investigation of the alleged misuse and mismanagement of the the constitutional considerations pertinent to either branch of investigation of the aforementioned investments, it did
so
pursuant
AFP-RSBS funds, it did so pursuant to its authority to conduct government may be raised, assessed, and ultimately weighed against to its authority to conduct inquiries in aid of legislation. And the
inquiriesinaidoflegislation. each other. And once the courts speak with finality, both branches of Court has no
authority to prohibit a Senate committee from requiring
government have no option but to comply with the decision of
the persons to appear
and
testify before it
in
connection with an inquiry
In the instant case, no court had acquired jurisdiction over the
courts,whethertheeffectofthedecisionistotheirlikingordisfavor. in aid of legislation in accordance with its duly published rules of
matter. Thus, there was as yet no encroachment by
the
legislature
procedure.
into the exclusive jurisdiction of another branch
of
the
government.
Clearly, there was no basis for the respondent Judge to apply the Neriv.SenateCommitteeonAccountabilityofPublicOfficersand
Oversight
ruling in Bengzon. Hence, the denial of petitioner's motion to dismiss Investigation
thepetitionforprohibitionamountedtograveabuseofdiscretion. SeparateOpinion,JusticePuno,Macalintalv.Comelec,etal.
Nixon, In Re Sealed Case and Judicial
Watch, somehow
provide
the
elementsofpresidentialcommunicationsprivilege,towit: Conceptandbasesofcongressionaloversight
InreSabio
1) The protected communication must relate to a The power of oversight embraces all activities undertaken by
The 1987 Constitution recognizes the power of investigation, not just "quintessentialandnon-delegablepresidentialpower." Congress to enhance its understanding of and influence over the
of
Congress, but
also
of "any
of its committees." This is significant implementation of legislation it has enacted. Clearly, oversight
2) The communication must be authored or "solicited and
because it constitutes a direct conferral of investigatory power concernspost-enactmentmeasuresundertakenbyCongress.
received" by a close advisor of the President or the President
upon the committees and it means that the mechanisms which the himself. The judicial test is that an advisor must be in The power
of
oversight
has been held
to
be intrinsic
in
the
grant
of
Houses can take in order to effectively perform its investigative "operationalproximity"withthePresident. legislative power itself and integral to the checks and balances
functionarealsoavailabletothecommittees. inherentinademocraticsystemofgovernment.
3) The presidential communications privilege remains a
Senate v. Ermita categorically ruled that "the power of
inquiry
is qualified privilege that may be overcome by a showing of Categoriesofcongressionaloversightfunctions
broad enough to
cover officials
of
the executive branch." Verily, adequate need, such that the information sought "likely a. Scrutiny. — Its primary purpose is to determine economy
the Court reinforced the doctrine in Arnault that "the
operation of contains important evidence" and by the
unavailability of and
efficiency of the operation of government activities. It is
government, being a legitimate subject for legislation, is a the
information elsewhere by an appropriate investigating based primarily on the power of appropriation of Congress.
proper subject for
investigation" and that "the power of inquiry authority. Under the Constitution, the “power of the purse” belongs to
isco-extensivewiththepowertolegislate."
United States v. Nixon held that a claim of executive privilege is Congress.
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5. theOmbudsman.
Likewise, Congress exercises legislative scrutiny thru its is primarily for the protection of the people as a body politic,
power of confirmation. Through the power of confirmation, andnotforthepunishmentoftheoffender.
InreGonzales
Congresssharesintheappointingpoweroftheexecutive. Theone-yearbarrule
A public officer who under the Constitution is required to be a
b. Investigation.
— Congressional investigation involves a more Member of the
Philippine Bar
as
a qualification for the office held by Article XI, Section 3, paragraph (5) of the Constitution reads: "No
intense digging of facts. As now contained in the 1987 him and who may be removed from office only by impeachment, impeachment proceedings shall be initiated against the same
Constitution, the power of Congress to investigate is cannot be charged with disbarment during the incumbency of officialmorethanoncewithinaperiodofoneyear."
circumscribedbythreelimitations,namely: suchpublicofficer. Francisco states that the term "initiate" refers to the filing of the
a) itmustbeinaidofitslegislativefunctions, impeachment complaint coupled with
Congress' taking initial action
A Member of the Supreme Court must first be removed
from office
b) it must be conducted in accordance with duly published via the
constitutional route
of
impeachment. Should the tenure of the of said complaint. The initial action taken by the House on the
rulesofprocedure,and Supreme Court Justice be thus terminated by impeachment, he
may complaint is the referral of the complaint to
the Committee on
c) the persons appearing therein are afforded their thenbeheldtoanswereithercriminallyoradministratively. Justice.
constitutionalrights. Referring the complaint to the proper committee ignites the
Grounds.—f or,andc
onvictiono
f,
c. Supervision. — This connotes a continuing and informed impeachment proceeding. With a simultaneous referral of multiple
awareness on the part of a congressional committee regarding 1. culpableviolationoftheConstitution, complaints filed,
more than one
lighted
matchsticks light
the
candle
executive operations in a given administrative area. While both at
the
same time.
What is important is that there should only be
2. treason, ONE CANDLE that is kindled in a year, such that once the candle
congressional scrutiny and investigation involve inquiry into
past executive branch actions in order to influence future 3. bribery, starts burning, subsequent matchsticks can no longer rekindle
executive branch performance, congressional supervision allows thecandle.
4. graftandcorruption,
Congress to scrutinize the exercise of delegated law-making Indubitably,
an
impeachment is not a judicial proceeding, but rather a
authority, and permits Congress to retain part of
that
delegated 5. otherhighcrimes,or politicalexercise.(Resolution)
authority. 6. betrayalofpublictrust.
Non-legislative Procedure GonzalesIIIv.OfficeofthePresident2
014EnBanc
Informingfunction Gutierrezv.TheHouseofRepresentativesCommitteeonJustice Section 8(2) of RA No. 6770 vesting disciplinary authority in the
2011EnBancDecision President over the
Deputy Ombudsman violates the independence of
The
legislature’s informing function should be preferred to its theOfficeoftheOmbudsmanandisthusunconstitutional.
legislative function. Even more important than legislation is the The determination of sufficiency of form and substance of an
The Office of the Ombudsman, by express constitutional mandate,
instruction and guidance in
political affairs which the people might impeachment complaint
is
an
exponent of
the
express constitutional
includes its key officials, all of them tasked to support the
receive
from a body which kept all
national concerns
suffused in a grant of rule-making powers of
the
House of
Representatives which
Ombudsman in carrying out her mandate. What is true for the
broad daylight of discussion. (Separate Opinion, Justice Puno, committedsuchdeterminativefunctiontopublicrespondent.
Ombudsman must be equally and necessarily true for her
Macalintalv.Comelec,etal.) A determination of what constitutes an impeachable offense is a Deputies who act as agents of the Ombudsman in the
purely political question which the Constitution has left to the performanceoftheirduties.
Powerofimpeachment
sounddiscretionofthelegislature.
Whomaybeimpeached.— Effect
It
is
not
for
this
Court to tell a co-equal branch of government how to
1. ThePresident, promulgate when the
Constitution itself
has
not prescribed a specific Art XI Sec 3[7]. Judgment in cases of impeachment shall not
method of
promulgation. The Court is
in
no
position to
dictate a extend further than removal from office and
disqualification to
2. theVice-President,
modeofpromulgationbeyondthedictatesoftheConstitution. hold any office under the Republic of the Philippines, but the
3. theMembersoftheSupremeCourt, party convicted shall nevertheless be liable and subject to
It bears stressing that, unlike the process of inquiry in aid of
4. theMembersoftheConstitutionalCommissions,and legislation where the rights of witnesses are involved, impeachment prosecution,trial,andpunishment,accordingtolaw.
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Barcenasv.HouseofRepresentatives b) theOfficeoftheOmbudsman,or
Rufinov.Endriga
Section 3 (1) of Art XI speaks of initiating
"cases
of
impeachment" c) as Secretaries, Undersecretaries, chairmen or heads of
while Section 3 (5) pertains to the initiation of "impeachment The President appoints the
first group of officers with the consent bureausoroffices,includingGOCCsandtheirsubsidiaries.
proceedings." "Cases," no doubt, refers to those filed before the of the CA. The President appoints the second and
third groups
of
Senate. Its use and its sense are consistent throughout Section 3. officers without the
consent of
the CA. The President appoints
the Sec 15.
Two
months immediately before the next
presidential
Thus, Section 3(6) states, “The Senate shall have the sole power to third group of officers if the law is silent on
who
is
the
appointing elections and up to the end of his term, a President or Acting
decide all cases [not "proceedings"] of impeachment." Section
3(7) power, or if the law authorizing the head of a department, agency,
Presidents hallnotmakeappointments,except
provides, "Judgment in cases [not "proceedings"] of impeachment commission, or board to
appoint is declared unconstitutional. Thus,
shall
not
extend further than removal from office and disqualification if Section 6(b) and (c) of PD 15 is found unconstitutional, the a) temporaryappointments
toholdanyoffice...." President shall appoint the trustees of the CCP Board because the b) toexecutivepositions
trusteesfallunderthethirdgroupofofficers.
ii. Executive c) when continued vacancies therein will prejudice public
The CCP must fall under the Executive branch. Under the Revised
serviceorendangerpublicsafety.
Administrative Code of
1987, any
agency "not placed by law or order
creating them
under any specific
department" falls
"under the
Office
Powerofappointment DeCastrov.JBC2
010EnBanc
ofthePresident."
GovofPhilIslandsv.Springer Section 6(b) and (c) of PD 15 makes the CCP a self-perpetuating Prohibition under Section 15, Article VII does not apply to
entity, virtually outside the control of
the President. Such
a public appointments to
fill
a vacancy in the Supreme Court or to other
Appointment to office
is intrinsically an executive act involving office or board cannot legally exist under the 1987 appointmentstotheJudiciary.
theexerciseofdiscretion. Constitution. Given
the
background and rationale
for the prohibition in Section 15,
Art VII Sec 16. The President shall nominate and, WITH the Article VII, we have no doubt that the Constitutional Commission
UponrecommendationofJBC confined the prohibition to appointments made in the
consentoftheCommissiononAppointments,appoint
a) Members of
SC and
all
other
courts.
— Art VIII Sec
9. The Executive Department. The framers did not need to extend the
a) theheadsoftheexecutivedepartments, prohibition to appointments in the Judiciary, because their
Members of the Supreme Court and judges of lower courts shall
b) ambassadors,otherpublicministersandconsuls,or establishment of the JBC ensured that there would no longer be
be appointed by the President from a list of at least three
midnightappointmentstotheJudiciary.
c) officers of the armed forces from the rank of colonel or nominees preferred by the Judicial and Bar Council for every
navalcaptain,and vacancy.S uchappointmentsneednoconfirmation. Interimorrecessappointments
d) other officers whose appointments are vested in him in b) Ombudsman and deputies. — Art XI Sec 9. The Art VII Sec 16(2). The President shall have the power to make
thisConstitution. Ombudsman and his Deputies shall be appointed by the appointments during the
recess of
the Congress, whether voluntary
President from a list of at
least
six
nominees prepared by the or compulsory, but
such appointments shall
be
effective only until
i) The regular
members of
the JBC
shall be appointed by
JBC, and from a list of three nominees for every vacancy disapproved by the
Commission on Appointments or until the next
the President for
a term of four years with the consent
thereafter. Such appointments shall require no adjournmentoftheCongress.
oftheCA.(A
rtVIIISec8[2])
confirmation. All vacancies shall be filled within three Guevarav.Inocentes
Heshallalsoappoint monthsaftertheyoccur.
a) all other officers of the
Government
whose
appointments It is the clear intent of the framers of our Constitution to make a
ProhibitionagainstNepotismandMidnightAppointments
recessappointmenteffectiveonly
arenototherwiseprovidedforbylaw,and
Sec 13[2]. The spouse and relatives by consanguinity or a) untildisapprovalbytheCommissiononAppointments,or
b) thosewhomhemaybeauthorizedbylawtoappoint. affinity
within the
fourth civil degree of
the President shall not,
b) until the next adjournment of Congress, and never a day
The Congress may, by law,
vest
the
appointment of other officers duringhistenure,beappointedas longerregardlessofthenatureofthesessionadjourned.
lower in rank in the President alone, in the courts, or in the heads a) MembersoftheConstitutionalCommissions,or
ofdepartments,agencies,commissions,orboards. DeRamav.CA
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Powerofcontrolandsupervision
There is no law that prohibits local elective officials from making
Thephrase“w
ithoutreappointment”appliesonlytoonewho
appointmentsduringthelastdaysofhisorhertenure. Section 17. The
President
shall control
have of all the executive
1. hasbeenappointedb
ythePresidentand
The
constitutional prohibition on so-called "midnight appointments," departments, bureaus, and
offices. shall ensure that the laws be
He
appliesonlytothePresidentorActingPresident. 2. confirmed by the CA, whether or not such person completes faithfullyexecuted.
histermofoffice.
Matibagv.Benipayo There
must be
a confirmation
by the CA of the previous appointment ⭐PIDSv.COA2
019EnBancLeonen,J
beforetheprohibitiononreappointmentcanapply.
An ad
interim appointment is a permanent appointment because it There is no
absolute
or
categorical rule
stating that
a Senior Deputy
takes effect immediately and can no longer be withdrawn by the Powertoremove Executive Secretary has no power to
act
on
his
own or
in
default
of
President once the
appointee
has qualified into office. The fact that it the Executive Secretary by authority of the President generally or
is subject to confirmation by the CA does not alter its permanent GonzalesIIIv.OP2
012EnBanc specifically.
character. The Constitution itself makes
an ad
interim appointment Under the doctrine of implication, the power to appoint carries with While
this
may
be true, the authority to issue the exemption must
permanent in character by making it effective until disapproved by it the power to remove. As a general rule, therefore, all officers nonetheless be done upon the express designation and
theCAoruntilthenextadjournmentofCongress. appointedbythePresidentarealsoremovablebyhim. delegation by the president through a presidential or executive
A
distinction is
thus
made between the
exercise
of
such presidential issuance.
The
exception
to
this
is
when
the law expressly provides otherwise.
prerogative requiring confirmation by the CA when Congress is in The Constitution expressly separates the power
to
remove from
the Furthermore, it must be stressed that the Administrative Code
sessionandwhenitisinrecess. President'spowertoappoint. explicitly grants the power to sign papers by authority of the
In
the
former, the President
nominates, and only
upon the consent of president to
the
executive
secretary. It grants
no
similar authority
1. Under
Sec 9 Art
VIII,
the
Members
of
the Supreme Court and
the CA may the person thus named assume office. It
is
not
so
with toaseniordeputyexecutivesecretary.
judgesoflowercourtsshallbeappointedbythePresident.
reference to ad interim appointments. It
takes
effect at
once.
Thus, There are powers vested in
the
President by
the
Constitution which
the term “ad interim appointment”, as used in letters of a. However, Members of the Supreme Court may be
may not be
delegated
to
or
exercised by
an
agent or
alter
ego
of
the
appointment signed by the President, means a permanent removed after
impeachment proceedings
initiated
President.
appointment made by the President in the meantime that byCongress(Sec2ArtXI),
Congressisi nrecess. 1. Thedeclarationofmartiallaw,
b. while
judges
of
lower
courts
may
be
removed only
bytheSupremeCourt(Secs6and11,ArtVIII). 2. thesuspensionofthewritofhabeascorpus,and
TheConstitutionalityofRenewalsofAppointments
3. theexerciseofthepardoningpower,
There is no
dispute that an
ad
interim appointee
disapproved by
the 2. The Chairpersons and Commissioners of
the
Constitutional
CA can no longer be extended a new appointment. The disapproval is Commissions shall likewise be
appointed by
the
President, The list is
by
no
means exclusive, but there
must
be a showing
that
a
final
decision on the merits by the CA in the exercise of its checking but
they
may
be
removed only
by
impeachment (Sec 2 Art the
executive power in question is of similar gravitas and exceptional
power on the appointing authority of the President. Since the XI). import.
Constitution does not provide for any appeal from such decision, the 3. The Ombudsman himself shall be appointed by the
disapproval is
final and binding on
the
appointee as
well as on President (Sec 9 Art XI) but may also be removed only
by Nacinov.OfficeoftheOmbudsman2
019EnBanc
theappointingpower. impeachment(Sec2ArtXI).
Aquino’s actuations do
not
constitute
a participation in
the
planning
A by-passed appointment is one that has not been finally acted In giving the President the power to remove a Deputy Ombudsman and implementation of Oplan Exodus since, as President of the
upon on
the
merits by
the
CA
at
the
close of the session of Congress. and Special Prosecutor,
Congress simply laid
down in
express
terms Republic, he
does
not exercise direct
control over the PNP under
There is no final decision by the CA. Absent such decision, the an authority that is already implied from the President's thedoctrineofqualifiedpoliticalagency.
President is free to renew the ad interim appointment of a constitutional authority to appoint the aforesaid officials in the Office
by-passedappointee. The President of
the Republic of
the
Philippines is
NOT part of
oftheOmbudsman.
the chain of command of the PNP. Under Section 26 of RA No.
It is well settled in this jurisdiction that the President can 6975, the
command and direction
of
the PNP is vested in the Chief of
renewtheadinterimappointmentsofby-passedappointees. thePNP.
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The Court in Berdin v. Mascariñas expanded the
application of Art X Sec 4. The President of the Philippines shall exercise
The President's power over the PNP is subsumed in his general
the doctrine of qualified political agency. In that case, the doctrine generalsupervisionoverlocalgovernments.xxx.
power of
control and supervision over the executive department of
was extended to
cover
the Assistant
Regional Director as an alter ego
the
government. In fact, Carpio v. Executive Secretary held that "the Section 16. The President shall exercise general
supervision
oftheFinanceSecretary.
national police force does not fall under the Commander-in-Chief
over autonomous regions to ensure that laws are faithfully
power of the
President. As a civilian
agency of
the
government,
it is While this Court has at times expanded the application of the doctrine
only subject to the exercise by the President of the power of of qualified political agency, the doctrine remains limited to the executed.
executivecontrol." President's executive secretary and other Cabinet secretaries. It does Ganzonv.CA
not extend to
deputy executive
secretaries or
assistant deputy
Command responsibility has a technical meaning. In Saez, We 1. Local autonomy, under the Constitution, involves a mere
secretaries.
ruled that to hold someone liable under the doctrine of command decentralization of administration, not of power, in
responsibility,thefollowingelementsmustobtain: Executivedepartmentsandoffices which local officials remain accountable to the central
a) the existence of a superior-subordinate relationship governmentinthemannerthelawmayprovide;
Biraogov.PhilippineTruthCommission2
010EnBanc
between the accused as superior and
the
perpetrator
of
the 2. ThenewConstitutiondoesnotprescribefederalism;
crimeashissubordinate; Does the creation of the PTC fall within the ambit of
the power
to
3. The change in constitutional language with respect to the
b) the superior knew or had reason to know that the crime reorganize as expressed in Section 31 of
the
Revised
Administrative
supervision clause was meant but to deny legislative control
wasabouttobeorhadbeencommitted;and Code? NO. Section 31 contemplates "reorganization" as limited
by over local governments; it did not exempt the latter from
thefollowingfunctionalandstructurallines:
c) the
superior
failed
to take the necessary and reasonable legislative regulation provided regulation is
consistent with
measures to prevent the criminal acts or punish the 1) restructuring the internal organization
of the
Office
of
the thefundamentalpremiseofautonomy;
perpetratorsthereof. President Proper by abolishing, consolidating or merging 4. Since
local governments remain
accountable to
the
national
units thereof or transferring functions from one unit to authority,
the latter
may,
by
law,
and
in
the manner set forth
In
this
case,
since Aquino is considered a superior of the AFP but not
another; therein,imposedisciplinaryactionagainstlocalofficials;
the PNP which is the agency involved in this case, the first element is
notsatisfied. 2) transferringanyfunction;or 5. "Supervision" and "investigation" are not inconsistent
3) transferring any
agency, under
the
Office
of
the President terms: "investigation" does
not
signify
"control" which
the
Doctrineofqualifiedpoliticalagency toanyotherDepartmentorAgencyorviceversa; Presidentdoesnothave.
DENRv.DENREmployees The creation of an office is nowhere mentioned, much less
envisionedinsaidprovision. Dadolev.COA
It is apropos to reiterate the elementary doctrine of qualified
political agency. This doctrine is corollary to the control While the
power to create a truth commission cannot pass muster on WhetherLBC55oftheDBMisvoidforgoingbeyondthe
powerofthePresidentasprovidedforunderArticleVII,Section17. the basis
of
P.D. No. 1416 as amended by P.D. No. 1772, the creation supervisorypowersofthePresident
of the PTC finds justification under S
ection 17,
Article VII of In administrative law, supervision means overseeing or the
power
In the case at bar, the DENR Secretary can validly reorganize the
the Constitution, imposing upon the President the duty to ensure that or authority of an officer to see that subordinate officers perform
DENR by ordering the transfer of
the DENR XII Regional Offices from
thelawsarefaithfullyexecuted.(F aithfulExecutionClause) their duties. Control, on the other hand, means the power of an
Cotabato City to Koronadal, South Cotabato. The exercise of this
authority by the DENR Secretary, as an alter
ego,
is
presumed to
be One of the recognized powers of the President granted pursuant to officer to alter or modify or
nullify or
set
aside
what
a subordinate
the acts of the President for the latter had not
expressly repudiated this constitutionally-mandated duty is the power to create ad hoc officer has done in the performance of his duties and to substitute the
thesame. committees. This flows from the obvious need to ascertain facts and judgmentoftheformerforthatofthelatter.
determine if laws have been faithfully executed. Thus, in DOH v. By constitutional fiat, heads of political
subdivisions are subject to
In Chiongbian v. Orbos, this
Court stressed
the
rule
that
the
power
Camposano, the authority of
the
President
to
create
an investigative the President’s supervision only, not
control, so
long as
their
acts
of the
President
to
reorganize the administrative regions carries with
committee to look into the administrative charges filed against the areexercisedwithinthesphereoftheirlegitimatepowers.
itthepowertodeterminetheregionalcenters.
employees of the
DOH for the anomalous purchase of medicines was
upheld. Any
directive therefore by the President or any of his or her alter egos
⭐PIDSv.COA2
019EnBancLeonen,J seeking to alter the wisdom of
a law-conforming judgment on
local
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related
to
rebellion or
invasion,
the Judge need not inquire into
affairsofanLGUisapatentn
ullity.
Generally, Congress is the repository of emergency powers. thelegalityofhisdetention.
DoesLBC55gobeyondthelawitseekstoimplement?YES. Certainly,
a body cannot delegate a power not reposed upon it. 3. The power to declare martial law. — For the latter two
The
Framers of
our Constitution deemed it wise to allow Congress to
LBC 55 provides that
the additional monthly allowances to
be
given powers,theConstitutionrequires2requisitestoconcur:
grant emergency powers to the President, subject to certain
by an LGU should not exceed P1K
in
provinces and cities
and P700 1) Anactualinvasionorrebellion;AND
conditions,thus:
in municipalities. Section 458, par. (a)(1)(xi), of RA 7160, the law
that supposedly serves as
the
legal
basis of
LBC 55,
allows the grant 1) Theremustbeaw
arorotheremergency. 2) Thatpublicsafetyrequiresit.
of additional allowances to judges “when the finances of the city 2) Thedelegationmustbeforal imitedperiodonly. Ondeclaringastateofrebellion
government allow.” The said provision does not authorize setting
a Section 18, Article VII
does not
expressly prohibit the
President
definitemaximumlimit. 3) The
delegation must be subject to such restrictions as the
from declaring a state of rebellion. The President’s authority to
Congressmayprescribe.
declare a state
of
rebellion springs in
the
main from her powers as
Emergencypowers 4) The emergency powers must be exercised to carry out a chief executive and, at the same time, draws strength from her
nationalpolicydeclaredbyCongress. Commander-in-Chiefpowers.
Sec 23(2) Art VI provides that in
times
of
war
or
other national
emergency, the Congress may, by law, authorize the President, for In Araneta v. Dinglasan, this Court emphasized that legislative In calling out the armed forces, a declaration of a state of
a limited period and subject to such restrictions as it may power, through which
extraordinary measures are exercised, remains rebellion is
an
utter superfluity. At most,
it
only
gives
notice to
prescribe, to exercise powers necessary and proper to
carry
out
a inCongressevenintimesofcrisis. the nation that such a state exists. Sanlakas v. Reyes finds that
declared national policy. Unless sooner withdrawn by resolution such a declaration is
devoid of any
legal significance. For all legal
Here, PP 1017 does not authorize the President during the
of the Congress, such powers shall cease upon the next adjournment emergency to temporarily take over or
direct
the
operation of intents,t hedeclarationisdeemednotwritten.
thereof. any privately owned public utility or business affected with During a state
of
rebellion, Lacson v. Perez tells us that authorities
publicinterestwithoutauthorityfromCongress. may only resort to warrantless arrests of persons suspected of
Ampatuanv.Puno2
011EnBancreMaguindanaoMassacre
rebellion. They
should not be based on the declaration of a "state of
The President did not proclaim a national emergency invoking Sec Aganv.PIATCO rebellion."
23(2) of Art VI, only a state of emergency in the three places Callingoutpowers
mentioned. The calling out of the armed forces to prevent or The temporary takeover by the government extends only to the
suppress lawless violence in such places is a power that the operation of
the
business and
not
to
the
ownership thereof. As
such IBPv.Zamora
Constitution directly vests in the President. She did
not
need a the government is not required to compensate the private When the President calls the armed forces to prevent or suppress
congressionalauthorityt oexercisethesame. entity-owner of the said business as there is no transfer of lawless violence, invasion or rebellion, he necessarily exercises a
ownership, whether permanent or temporary. The State in effecting discretionary power solely
vested
in
his
wisdom. The
Court, thus,
OndeclaringastateofnationalemergencyinD
avidv.Arroyo thetemporarytakeoverisexercisingitsp olicepower. cannot be called upon to overrule the President’s wisdom or
substituteitsown.
A distinction must be drawn between the President's authority to Commander-in-chiefpowers
declare "a state of national emergency" and to exercise However, this does not prevent an examination of whether such
Graduatedpowers power was exercised within permissible constitutional limits or
emergency powers. To the
first,
Section
18,
Article
VII
grants the
President such power, hence, no legitimate constitutional objection Sec 18 grants the President, as Commander-in-Chief,
a “sequence” of whether it was exercised in a manner constituting grave abuse of
canberaised.Buttothesecond,manifoldconstitutionalissuesarise. “graduatedpowers.”Fromthemosttotheleastbenign,theseare: discretion. It
is
incumbent upon the
petitioner to
show that the
President’sdecisionistotallybereftoffactualbasis.
President
Arroyo
could
validly
declare the
existence of
a state of 1. The calling out power. — The only criterion is that
national emergency even in the absence of a Congressional ‘whenever it
becomes necessary,’ the
President
may call
the Congress may
revoke the
proclamation of
martial law or suspension
enactment. armed forces ‘to prevent or suppress lawless violence, invasion of the privilege of the writ of habeas corpus and the Court may
orrebellion.’ review the
sufficiency of
the
factual basis thereof. However, there is
But the exercise of emergency powers, such as the taking over of no such equivalent provision dealing with the revocation or
privately owned public utility or business affected with public 2. The power to suspend the privilege of the writ of habeas reviewofthePresident’sactiontocalloutthearmedforces.
interestr equiresadelegationfromCongress. corpus. — It is only the
privilege
that is
suspended, not
the
writ itself. Thus, when a person is detained for an offense
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Declarationofmartiallawandsuspensionofthe being
the
only
test
for
judicial
review of
the
President's power manner in which Congress deliberated on the President's
privilegeofthewritofhabeascorpus;extension to
declare martial
law and
suspend the
privilege of
the
writ
of request for extension is not subject to judicial review.
habeascorpusunderSection18,ArticleVII. (Lagmanv.PimentelIII2018EnBanc)
1. Fortun v.
Arroyo 2012 En
Banc affirms that although Sec 18
a. It must be based only on facts or information 11. Checks and balances on the exercise of martial law and
Art VII vests in the President the power to proclaim martial
known by or
available
to
the President at
the time suspensionpowers.—
law or suspend the privilege of the writ
of
habeas corpus, he
hemadethedeclarationorsuspension; a. The President may declare martial law
or
suspend of
sharessuchpowerwithCongress. Thus:
b. The Court should look into the full complement or the privilege or the writ of the privilege of habeas
a. The President’s proclamation or suspension is
totality of the factual basis, and not piecemeal
or corpus only
when there is an invasion or rebellion
temporary,g oodforonly60days;
individually. and public safety requires such declaration or
b. He must, within 48 hours of the proclamation or suspension.
c. Neither should the Court expect absolute
suspension, report
his
action in
person or in writing
correctness of the facts stated in the proclamation b. The President's proclamation or suspension shall be
toCongress;
andinthewrittenReport. foraperiodnotexceeding60days.
c. Both houses of Congress, if not in session must jointly
d. To
require
precision in
the
President's appreciation of c. Within 48 hours from the proclamation or
convene within 24 hours of the proclamation or
facts would unduly
burden him
and
therefore
impede suspension, the President must submit a Report in
suspension for the
purpose of reviewing its validity;
theprocessofhisdecision-making. personorinwritingtoCongress.
and
7. The parameters for determining the sufficiency of factual d. The Congress, voting jointly and by a vote of at
d. The Congress, voting jointly, may revoke or affirm
the President’s proclamation or suspension, allow basisareasfollows: least a majority of all its Members, can revoke the
their limited effectivity to lapse, or extend the same a. actualrebellionorinvasion; proclamationorsuspension.
ifCongressdeemswarranted. b. public safety requires it; the first two requirements e. The President cannot set aside the Congress'
2. The constitutional validity of the President’s proclamation of mustconcur;and revocationofhisproclamationorsuspension.
martial law
or
suspension
of the writ of
habeas corpus is first c. there is probable cause for the President to
believe f. The President cannot, by h
imself, extend his
a political question in the hands of Congress before it thatthereisactualrebellionorinvasion. proclamation or suspension. He should ask the
becomesajusticiableoneinthehandsoftheCourt. Congress'approval.
8. Public safety "involves
the
prevention of
and protection from
3. Lansang held that the factual basis of the declaration of events
that could endanger the safety of the general public from g. Upon
such
initiative or request from the President, the
martial law and the suspension of the
privilege of the
writ
of significant danger, injury/harm, or damage, such
as
crimes or Congress, voting jointly and by a vote of at least a
habeas corpus is not a political question and is within the disasters." majority of all its Members, can extend the
ambitofjudicialreview. proclamationorsuspension.
Onextendingmartiallaw
4. The
phrase "in an
appropriate proceeding" appearing on the h. The extension shall only be approved when the
third paragraph of Section 18, Article VII
refers
to
any action 9. The only
limitations
to
the
exercise
of
congressional authority invasion or rebellion persists and public safety
initiated by a citizen for the purpose of questioning the toe
xtends uchproclamationorsuspensionarethat: requiresit.
sufficiency of
the factual basis of the exercise of the
Chief a. the extension should be upon the President's i. The SC may review the sufficiency of the factual
Executive's emergency powers. It could be denominated as a initiative; basis of the proclamation or suspension or the
complaint,apetition,oramattertoberesolvedbytheCourt. extension thereof, in an appropriate proceeding filed
b. it should be grounded on the persistence of the
5. In Lagman v. Medialdea 2017 En Banc, the Court had the invasion or rebellion and the demands of public byanycitizen.
occasion to reexamine Fortun and clarify that the
Court can safety;and j. The SC
must
promulgate its
decision
within
30
days
simultaneously exercise its power of review with, and fromthefilingo ftheappropriateproceeding.
c. it
is
subject
to
the
Court's
review of the sufficiency of
independently from, the
power to
revoke
by Congress. In other
its factual basis upon the petition of any citizen. k. Martial
law
does
not
suspend
the
operation
of
the
words, the judicial power to review is not dependent on
(Lagmanv.Medialdea2 019EnBanc) Constitution.
whether Congress exercised its
own power to
review the act of
thePresident. 10. The Court
is
not barred
by
the doctrine of conclusiveness l. Martial law
does not
supplant the
functioning of the
of
judgment from examining the persistence of rebellion. The civil courts or legislative assemblies, nor authorize
6. Lagman established the sufficiency of factual basis
test
as
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the conferment of jurisdiction on
military courts
and Torresv.Gonzales
Former President Estrada was
granted an absolute pardon that fully
agencies over civilians where civil courts are
able to
restored all
his civil and political rights, which naturally includes the
function. The grant of pardon and the determination of the terms and
right
to
seek public elective office, the focal point of this controversy.
m. The suspension of the privilege of the writ applies conditions of
a
conditional pardon are
purely executive acts which
The only instances in which the President may not extend pardon
only to persons judicially charged for
rebellion or are n
ot s
ubject t
o j
udicial s
crutiny.
remaintobein:
offenses inherent in or directly connected with
Pardondistinguishedfromamnesty 1) impeachmentcases;
invasion.
n. the Barrioquintov.Fernandez
Finally, during the suspension of the privilege of 2) casesthathavenotyetresultedinafinalconviction;and
writ, any person thus arrested or detained
should be 1. Pardon is
a private
act
which must
be
pleaded
and proved 3) cases involving violations of election laws, r ules and
judicially charged within three days, otherwise he by the person pardoned, because the courts take no
notice regulations in which there was no f avorable
shouldbereleased. thereof; while amnesty is
a public
act
of
which
the
courts recommendationcomingfromtheCOMELEC.
Executiveclemency shouldtakejudicialnotice. Therefore, it
can be
argued that
any
act of Congress by way of statute
2. Pardon is granted to one
after
conviction;
while
amnesty cannot operate to
delimit the pardoning power of
the
President. The
Sec 19.
Except
in cases of impeachment, or as otherwise provided
is
granted to classes of persons or communities who may be foregoing pronouncements solidify the thesis that Articles 36
and
in this Constitution, the President may grant reprieves, 41 of
the
RPC cannot, in any way,
serve to
abridge or
diminish
guilty of political offenses, generally before or after the
commutations, and pardons, and remit fines and forfeitures, after institution of the
criminal prosecution and
sometimes after the exclusive power and prerogative of the President to pardon
convictionbyfinaljudgment. conviction. personsconvictedofviolatingpenalstatutes.
He shall also have the power to grant amnesty with the 3. Pardon looks forward; while amnesty looks backward Whomayavailofamnesty
concurrenceo famajorityofALLtheMembersoftheCongress. and abolishes and puts into
oblivion the offense with which
he is charged that the person released by amnesty stands Macaga-anv.People
Art IX-C Sec 5. No pardon, amnesty, parole, or suspension of
before the law precisely as though he had committed no
sentence for
violation of
election laws, rules, and regulations shall The crimes to be amnestied must have been for violations of
offense.
be
granted by the
President without the
favorable recommendation subversion laws or those defined and proscribed under crimes
againstpublicorderundertheRPC.
oftheComelec. Verav.People
Pardondistinguishedfromprobation Diplomaticpower
Whether or not a person invoking the benefit of amnesty should
Peoplev.Vera first admit having committed the crime of which they were Sec 21. No treaty or international agreement shall be valid and
accused. effective unless concurred in by at least 2/3 of all the Members
The power to suspend sentence was always a part of the judicial
power; the
power to grant reprieves and pardons was always a part of It is rank inconsistency for appellant to justify an act, or seek oftheSenate.
the executive power. The suspension of the sentence simply forgiveness for an act which, according to him, he has not committed.
Bayanv.ZamorareVFA
postpones the judgment of the
court
temporarily or
indefinitely,
but (supersedingBarrioquinto)
the conviction and liability following it, and all civil disabilities, Section 21, Article VII deals with treatise or international
remainandbecomeoperativewhenjudgmentisrendered. EffectofPardon
agreements in general. This
provision lays down general
the rule
A pardon reaches both the punishment prescribed for the offense Monsantov.Factoran on treatise or international agreements. All treaties or
and the
guilt
of the offender. It releases the punishment, and blots out international agreements entered into by the
Philippines, regardless
The pardon granted to petitioner has resulted in removing her of subject matter, coverage, or
particular
designation or
appellation,
of
existence the guilt,
so
that
in
the
eye
of
the
law,
the offender is as disqualification from holding public employment but it cannot go
innocent as if he had never committed the offense. It removes the requirestheconcurrenceoftheSenatetobevalidandeffective.
beyond that. To regain her former post as assistant city treasurer, she
penalties and disabilities, and restores him to his civil rights. It In contrast, Section 25, Article XVIII is a special provision that
must reapply and undergo the usual procedure required for a new
makes him, as it were, a new man, and
gives him a new credit
and appointment. applies to treaties which involve the presence of foreign military
capacity. bases, troops or facilities in the Philippines. It disallows foreign
military bases, troops, or facilities in the country, unless the
Pardondistinguishedfromparole Risos-Vidalv.COMELEC2
015EnBanc
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Powersrelativetoappropriationmeasures
followingconditionsaresufficientlymet,v iz:
Explicit is
the
requirement that
a provision in
the Appropriations
a) itmustbeunderat reaty; Pimentel,Jr.v.Aguirre Bill should relate specifically to some "particular
b) the treaty must be duly concurred in
by
the Senate and, Section 4 of AO 372 cannot be upheld. A basic feature of
local appropriation" therein. The challenged "provisions" fall short of
when so required by congress, ratified
by
a majority
of
the fiscal autonomy is the automatic release of
the shares of
LGUs this requirement. Consequently, Section 55 (FY '89) and Section 16
votescastbythepeopleinanationalreferendum;and in
the National internal revenue. This is mandated by no less than (FY ‘90), although labelled as "provisions," are actually
the Constitution. The LGC specifies further that the release shall be inappropriate provisions
that should
be
treated as items for the
c) recognizedasatreatybytheothercontractingstate. purposeofthePresident'svetopower.
made directly to the LGU concerned within five (5)
days after every
The phrase "recognized as a treaty" means that the other quarter of the
year and “shall not
be
subject to
any lien
or holdback
contracting party
accepts
or
acknowledges the
agreement as
a that may be imposed by the national government for whatever PHILCONSAv.Enriquez
treaty. purpose.” As a rule, the term “SHALL” is a word of command that
must be given a compulsory meaning. The provision is, therefore, VetoofProvisiononDebtCeiling—V
OID
Moreover, it is inconsequential whether the United States treats
the
VFA only as an executive agreement because, under
international IMPERATIVE. Also to be included in the category of "inappropriate
law, an executive agreement is as
binding as
a treaty.
To
be sure,
as provisions" are unconstitutional provisions and provisions which
Vetopowers
long as the VFA possesses the elements of an agreement under are intended to amend other laws, because clearly these kinds of laws
internationallaw,thesaidagreementistobetakenequallyasatreaty. 1) Generalvetopower.—vetoofentirebill. havenoplaceinanappropriationsbill.
In our jurisdiction, the power to ratify is vested in the 2) Item-veto. — The President shall have the power to
veto
any These provisos are
germane to
and
have a direct connection with the
President and not, as commonly believed, in the legislature. particular item or items in an Appropriation, Revenue, or item on debt service. Inherent in the power of
appropriation is
The role of the Senate is
limited
only
to
giving
or
withholding the power to specify how the money shall be spent. The said
Tariff bill, but the veto shall not affect the item or items to
itsconsent,orconcurrence,totheratification. provisos, being appropriate provisions, cannot be vetoed
whichhedoesnotobject.
separately.Hence,theitemvetoofsaidprovisionsisv oid.
Pimentelv.ExecutiveSecretary BolinaoElectronicsv.Valencia Vetoofprovisiononratioforroadmaintenance—V
OID
The usual steps in the treaty-making process are: negotiation, When a provision of
an
appropriation bill
affects
one
or
more
items It is not
alien to
the
appropriation for
road maintenance,
and
on
the
signature, ratification, and exchange of the instruments of of the same, the President cannot veto the provision
without
at
the other hand, it
specifies how
the
said
item shall
be
expended — 70%
ratification. The treaty may then
be
submitted for
registration and sametimevetoingtheparticularitemoritemstowhichitrelates. byadministrativeand30%bycontract.
publication under the U.N. Charter, although this step is not essential
Whether the
President
may legally
veto
a condition attached to VetoofprovisiononpurchaseofmedicinesbyAFP—V
OID
tothevalidityoftheagreementasbetweentheparties.
anappropriationoritemintheappropriationbill.N O. Being directly related
to
and inseparable from the appropriation item
The signature is primarily intended as a means of authenticating the
If the veto
is
unconstitutional,
it
follows
that
the
same
produced
no on
purchases of
medicines by
the
AFP,
the
special
provision cannot
instrument and as a symbol of the good faith of the parties. It is
effect whatsoever, and the restriction imposed by the be vetoed by the President without also vetoing the said item
usually performed by the state's authorized representative in the
appropriationbill,therefore,remains. followingB olinaoElectronics.
diplomatic mission. Ratification, on the other hand, is
the
formal
act by which
a state confirms and
accepts the
provisions of
a treaty Veto
of
provision
on
prior
approval
of
Congress
for
purchase of
concluded by its representative. It is generally held to be an Gonzalesv.Macaraig militaryequipment—V ALID
executive act, undertaken by the head of the state or of the
The
power given
the
executive to
disapprove any
item or items in an Any provision blocking an administrative action in
implementing a
government.
Appropriations Bill does not
grant the
authority
to
veto
a part
of
an law or requiring legislative approval of executive acts must be
Although the
refusal of a state to ratify a treaty which has been signed itemandtoapprovetheremainingportionofthesameitem. incorporatedinaseparateandsubstantivebill.
in its behalf is a serious step that
should not
be
taken
lightly,
such
The terms
item and
provision in
budgetary legislation and practice Furthermore, Special Provision No. 3, prohibiting the use of the
decision is within the competence of the President alone, which
are concededly different. An item in
a bill
refers to the
particulars, Modernization Fund for payment of the trainer
planes and armored
cannotbeencroachedbythisCourtviaawritofmandamus.
the details, the
distinct and
severable parts x x x of
the bill. It
is
an personnel carriers, which have been contracted for by the AFP, is
indivisiblesumofmoneydedicatedtoastatedpurpose. violative
of
the Constitutional prohibition on the passage of laws that
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impair
the
obligation of
contracts
(Art
III
Sec 10), more so, contracts regulates procedure, that is, the judicial process for enforcing
Each branch is considered separate, co-equal, coordinate and
enteredintobytheGovernmentitself. rights and duties recognized by substantive law and for justly
supreme within its own sphere, under the legal and political
administering remedy and redress for a disregard or infraction of
Veto of provision on use of savings to augment AFP pension reality of one overarching Constitution that governs one
them. If
the rule
takes away a vested right, it
is not procedural.
funds.—V ALID government and one nation for whose benefit all the three
If the rule creates a right such as the right to appeal, it may be
separatebranchesmustactwithunity.
The Special
Provision, which
allows the
Chief
of
Staff
to
use savings classified as a substantive matter; but if it operates as a means of
to augment the pension fund for the AFP being managed by the implementing an existing right then the rule deals merely with A lesser known but no less important aspect of the principle of
AFP-RSBSisv iolativeofSecs25(5)and29(1)oftheArtVI. procedure. separation of
powers
is
the principle
of comity or the practice of
ConditiononthedeactivationoftheCAFGU—V
OID Section 23 of Republic Act No. 9165 is declared unconstitutional for voluntarily observing inter-departmental courtesy in undertaking
being contrary to the
rule-making authority of
the
Supreme
Court their assigned constitutional duties for the harmonious working of
Such intention must be embodied and manifested in another law government.
underSection5(5),ArticleVIII.
considering that it abrades the powers of the Commander-in-Chief
and there are existing laws on the creation of the CAFGU to be e. SystemofChecksandBalances
d. SeparationofPowers
amended. Again we state: a provision in an appropriations act
cannot be used to repeal or
amend other
laws, in this
case,
P.D. The separation
of
powers is
a fundamental principle in our system SeparateOpinion,JusticePuno,Macalintalv.Comelec,etal.
No.1597andR.A.No.6758. of government. It obtains not through express provision but by
actualdivisioninourConstitution. For its part, this Court checks the exercise of power of the other
iii. Judiciary branches of
government through judicial review. Since then, the Court
SeparateOpinion,JusticePuno,Macalintalv.Comelec,etal. has used its expanded power to check acts of the House of
Estipona,Jr.v.Lobrigo2
017EnBancrePlea-bargaining Representatives, the
President,
and
even of
independent bodies such
The principle of
separation of
powers prevents the concentration astheElectoralTribunal,theComelec,andtheCSC.
The SC
has
rejected previous
attempts
on
the
part of the Congress, in of legislative, executive, and judicial powers to a single branch of
government by deftly allocating their exercise to the three branches of
Congress checks the other branches of government primarily
the exercise of its
legislative
power,
to
amend the Rules of
Court,
to through its law making powers. Congress can create
administrative
wit: government.
agencies, define their powers and
duties, fix the terms of officers and
1. Fabian v. Desierto — Appeal from the decision of the Office Itisnowbeyonddebatethattheprincipleofseparationofpowers their compensation. It
can also create courts, define their jurisdiction
of the Ombudsman in an administrative disciplinary case 1) allows “blending” of
the some of the executive, legislative, and reorganize the judiciary so long as it does not undermine the
should be
taken
to
the CA under the provisions of Rule 43 of orjudicialpowersinonebody; security of tenure of its members. Concomitant with its principal
the Rules instead of appeal by certiorari under Rule 45 as power to legislate is the auxiliary power to ensure that the laws it
providedinSection27ofR.A.No.6770. 2) does not prevent one branch of
government from inquiring enactsarefaithfullyexecuted.
into
the
affairs
of
the other branches to maintain the balance
2. Cathay Metal v. Laguna West Multi-Purpose ofpower;
Cooperative, Inc. — The Cooperative Code provisions on 10. ProcessofLegislation
notices cannot replace
the
rules
on summons under Rule 14 3) but ensures that there is no encroachment on matters
oftheRules. withintheexclusivejurisdictionoftheotherbranches. SubjectandTitle
3. Carpio-Morales v. CA 2015 En Banc — The first paragraph DelaCruzv.Paras
of
Section 14 of R.A. No. 6770, which prohibits courts except InReProductionofCourtRecords2
012EnBanc
the
Supreme Court from issuing temporary restraining order The title was not in any way altered. It was not changed one whit. The
The doctrine of separation of powers inures not by express
and/or writ of preliminary injunction to enjoin an exact wording was followed. The power granted remains that of
provision of the Constitution, but as an underlying principle that
investigation conducted by the Ombudsman, Is regulation, not prohibition. There is thus support for the view
constitutes the bedrock of our system of checks and balances in
unconstitutionalasitcontravenesRule58oftheRules. advanced by petitioners that to construe Republic Act No. 938 as
government. It
divides the government into three branches, each with
allowing the prohibition of the operation of night clubs
would give
In determining whether a rule prescribed by the
Supreme Court,
for well-defined powers. In
its
most basic concept, the doctrine declares
rise to a constitutional question. The Constitution mandates: "Every
the practice
and
procedure of
the lower courts, abridges, enlarges, or that the legislature enacts the law, the executive
implements it,
and
bill shall embrace only one subject which shall
be expressed in
the
modifies any substantive right, the test is
whether the
rule
really thejudiciaryinterpretsit.
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title thereof." Since there
is
no dispute as the title limits the power to substitute bill in anticipation of its receipt of the bill from the
The power to augment was to
be
used
only when the purpose for
regulating, not
prohibiting, it would result in the statute being invalid House,
so long
as
action by
the
Senate as a body is withheld pending
which the funds had been allocated were already satisfied, or
if, as was done by the Municipality of Bocaue, the operation of a night receiptoftheHousebill.
the need
for such funds had ceased to
exist, for only
then
could
clubwasprohibited.
savingsbeproperlyrealized.
Demetriav.Alba
Astospecificlaws According to Philconsa v. Enriquez, impoundment refers to a
The
purpose and conditions for which funds may be transferred were refusal by the President, for whatever reason, to spend funds made
1. Art VII Sec 22. The President shall submit to the Congress,
specified,i.e. available by Congress. It is the failure to spend or obligate budget
within thirty days from the opening of every regular session as authorityofanytype.
the basis of the general appropriations bill, a budget of 1. transfer may be allowed for the purpose of
augmenting
anitemand It
is the President who proposes the budget but it is Congress that has
expenditures and sources of financing, including receipts
the final say on matters of appropriations. For this purpose,
fromexistingandproposedrevenuemeasures. 2. such transfer
may be
made
only
if
there are
savings
from
another item
in
the
appropriation of
the
government branch appropriationi nvolvestwogoverningprinciples,namely:
2. Art VI Sec 24. All appropriation, revenue or
tariff
bills,
bills
orconstitutionalbody. 1) a Principle of the Public Fisc, asserting that all monies
authorizing increase of the public debt, bills of local received from whatever source by any part of the
application, and private bills, shall originate exclusively in AbakadaGurov.Ermita governmentarepublicfunds;and
the
House of Representatives, but the Senate may propose or 2) a Principle of Appropriations Control, prohibiting
concurwithamendments. Since there is
no question that the revenue bill exclusively originated expenditure of any public money without legislative
in
the House, the Senate was acting within its constitutional power to authorization.
3. Sec 25. The Congress may not increase the appropriations introduce amendments to
the House bill when it included provisions
recommended by the President for the operation of the in
Senate Bill No. 1950 amending corporate income taxes, percentage, OnCross-borderaugmentations
Governmentasspecifiedinthebudget. excise and franchise taxes. The sections
introduced by the Senate are
Section 25(5) has
delineated borders between their offices, such that
4. No provision or enactment shall be embraced in the general germane to the subject matter and purposes of the house bills, which
funds appropriated for one office are prohibited from crossing
over
is
to
supplement our country’s fiscal deficit, among others. Thus, the
appropriations bill unless it relates specifically to some to
another office
even in the guise of augmentation of a deficient item
Senateactedwithinitspowertoproposethoseamendments.
particular appropriation therein. Any such provision or or
items. Cross-border transfers, whether as
augmentation, or as aid,
werep rohibitedu nderSection25(5).
enactment shall be
limited in its operation to the appropriation
Araullov.AquinoIII2 014EnBanc
towhichitrelates.
The transfer of appropriated funds, to be valid under Section
Porkbarrelsystem
5. No law shall be passed authorizing any transfer of
25(5) must be made upon a concurrence of the following Belgicav.Ochoa2
013EnBanc
appropriations; however, the President, the President of
the requisites,namely:
Senate, the Speaker of the House of Representatives, the
Chief The Legislative branch of government, much more any of its
1) There is
a law authorizing the President, the President of the
Justice of the Supreme Court, and the heads of Constitutional members, should not cross over the field of implementing the
Senate, the Speaker, the Chief Justice, and the heads of the
Commissions may, by law, be authorized to augment any item Constitutional Commissions to transfer funds within their national budget since, as earlier stated, the same is properly the
in the general appropriations law for their respective offices respectiveoffices; domain of the Executive. Upon approval and passage of the GAA,
froms avingsi notheritemsoftheirrespectiveappropriations. Congress‘ law-making role necessarily comes to an end and from
2) The funds to be transferred
are savings generated from the there the Executive‘s role of implementing the national budget
appropriationsfortheirrespectiveoffices;and begins.
Tolentinov.SOF
3) The purpose of the transfer is to augment an item in the The foregoing cardinal postulates were definitively enunciated in
It is not the law – but the revenue bill – which
is
required
by
the generalappropriationslawfortheirrespectiveoffices.
Abakada where the Court held that from the moment the law
Constitution to "originate exclusively" in the House of
To comply with the first requisite, the GAAs should expressly becomes effective, any provision of law that empowers Congress
Representatives.
authorizethetransferoffunds.Savingsshouldbea ctual. or
any of
its
members to play any role in the implementation or
Nor does the Constitution prohibit the filing in the Senate of a enforcement of the law violates the principle of separation of
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powersandisthusunconstitutional. ofthefourclasseswillrendertheentireIPRAlawanullity.
Simply stated, the ICCs/IPs' rights over the natural resources
The Court must therefore abandon its ruling in Philconsa which Sections7(a),7(b)and57oftheIPRADoNotViolatethe taketheformofm anagementorstewardship.
sanctioned the
conduct
of
legislator
identification on
the
guise RegalianDoctrineEnshrinedinSection2,ArticleXII
that the same is merely recommendatory and, as such, TheLarge-ScaleUtilizationofNaturalResourcesIsA llowed
respondents‘relianceonthesamefaltersaltogether. The Constitution provides that in the exploration, development UnderParagraphs1and4,Section2,ArticleXII
and utilization of natural resources, the State exercises full
Procedureforpassageofbills Interpreting Section 2,
Article XII of
the
1987 Constitution in relation
control and supervision, and may undertake the
same in
four
(4)
to
Section 57 of
IPRA, the
State, as owner of
these
natural resources,
Tolentinov.SOF modes:
may directly undertake the development and exploitation of the
The presidential certification dispensed with the
requirement not 1. TheStatemayd
irectlyu
ndertakesuchactivities;or natural
resources by itself, or
in the alternative, it may recognize the
only
of
printing
but
also that of reading the bill on separate days. The 2. The State may enter into co-production, joint
venture or priority rights of
the ICCs/IPs as owners of
the
land
on which the
phrase "except when the President certifies to the necessity of its natural resources are found by entering into a co-production, joint
production-sharing agreements with
Filipino citizens
or
immediate enactment, etc."
in
Art VI,
§26(2)
qualifies the
two
stated
qualifiedcorporations; venture,orproduction-sharingagreementwiththem.
conditionsbeforeabillcanbecomealaw:
1) thebillhaspassedthreereadingsonseparatedaysand 3. Congress may, by law, allow small-scale utilization of
ShuleyMinev.DENR2
019
naturalresourcesbyFilipinocitizens;
2) it
has
been
printed in
its
final
form
and distributed three
daysbeforeitisfinallyapproved. 4. For the large-scale exploration, development and The
Regalian Doctrine espouses that
all lands of the public domain
utilization of minerals, petroleum and other mineral oils, belong to the State,
and
that,
as
a consequence thereof, any
asserted
Art VI §26(2) must, therefore, be construed as referring only to bills rightofownershipoverlandnecessarilytracesbacktotheState.
the
President may enter into agreements with foreign-owned
introduced for
the first time in either house of Congress, NOT to
theconferencecommitteereport. corporationsinvolvingt echnicalorfinancialassistance. The mineral agreements entered into by the State with private
personsandentitiespartakeoftwonatures:
Examining the
IPRA,
there is nothing in the law that grants to the
11. NationalizationPrinciple ICCs/IPs ownership over the natural resources within their a) apermit;and
a. NaturalResources ancestral domains. The right of ICCs/IPs in their ancestral domains b) acontract.
includes ownership, but this "ownership" is expressly defined and Consistent with the Regalian Doctrine, all unexplored or
Cruzv.SENRreConstitutionalityofIPRAanditsIRR limitedinSection7(a). unextracted mineral resources belong to every Filipino. Issues
regarding the exploration, extraction and utilization of mineral
AncestralDomainsandAncestralLandsarethePrivate TheSmall-ScaleUtilizationofNaturalResourcesIsA
llowed
resources are imbued with public interest. This striking
PropertyofIndigenousPeoplesandDoNotConstitutePartof UnderParagraph3,Section2ofArticleXII constitutional realization justifies a strict interpretation in favor of
theLandofthePublicDomain. Ownership over the natural resources in the ancestral domains preserving the possession of mineral resources in
favor
of
the
State and in trust for its citizens pending controversies regarding
The private character of
ancestral
lands and domains as laid down in remains with
the
State
and
the
ICCs/IPs
are
merely granted the right
theirexploration,extraction,transportationorexportation.
the IPRA is further strengthened by the option given to individual to
ICCs/IPsovertheirindividually-ownedancestrallands. Thus, the CA is correct in declaring that the RTC erred in enjoining the
1. "manageandconserve"themforfuturegenerations,
DENR-MGB in suspending petitioner's mining operations as
well
as
Section 3 of
Article XII on
National Economy and
Patrimony of the 2. "benefit and share" the profits from their allocation and withholdingtheissuanceofitsOTPsandMOEPs.
1987 Constitution classifies lands of the public domain into
four utilization,and
categories: (a) agricultural, (b) forest or timber, (c) mineral lands, b. EconomicActivities
3. "negotiate
the
terms and conditions for their exploration" for
and (d) national parks. Section 5 mentions ancestral lands and the purpose of "ensuring ecological and environmental Section 6. The use of property bears a social
function,
and
all
ancestral domains but it
does not classify them under any of the said protectionandconservationmeasures." economic agents shall contribute to the common good.
four categories. To classify them as
public lands under any one
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Individuals and private groups, including corporations, or
direct
the
operation of any privately-owned public utility or owing to the creditors of AGRIX is arbitrarily destroyed. There is
cooperatives, and
similar collective organizations, shall have the businessaffectedwithpublicinterest. discrimination as
well. In extinguishing the mortgage and other liens,
right to own, establish, and operate economic enterprises, the
decree lumps the
secured creditors
with
the
unsecured creditors
Section 18. The State may, in the interest of national welfare or and places them on the same level in the prosecution of their
subject to the duty of the State to promote distributive justice and
defense, establish and operate vital industries and, upon respective claims. In this respect, all of them are considered
to intervene when the common good so demands. unsecuredcreditorsviolativeofthee qualprotectionclause.
(StewardshipConcept) payment of just compensation, transfer to public ownership
utilities and other private enterprises to be operated by the On top of all this, New Agrix, Inc. was created by special decree
Section 12. The State shall promote the preferential use of Government. notwithstanding the provision of Article XIV, Section 4 of the 1973
Constitution proscribing the
formation, organization, or regulation of
Filipino labor, domestic materials and locally produced goods,
privatecorporationsbythegovernment.
andadoptmeasuresthathelpmakethemcompetitive. Albanov.Reyes
The decree also impairs the obligation of the contract between
Section 13.
The
State
shall
pursue a trade policy that serves the Art. XII, Sec. 11 does not necessarily imply that only Congress has AGRIX and the private respondent without justification. While it
is
the power to grant such authorization. Our statute books are true that the police power is
superior
to
the
impairment clause, the
general welfare and utilizes all forms and arrangements of
replete with laws
granting specified
agencies in the Executive Branch principle will apply only where the contract is so related to the
exchangeonthebasisofequalityandreciprocity. the power to issue such authorization for certain classes of public public welfare that it will
be
considered congenitally susceptible to
utilities. changebythelegislatureintheinterestofthegreaternumber.
Organization and Regulation of Private Corporations —
Section 16. The Congress shall not, except by general law, In
the instant case,
the PPA,
in
the exercise of the option granted it by
P.D. No.
857, chose to
contract out the
operation and management of Libanv.Gordon2
011EnBancResolution
provide for the formation, organization,
or regulation of
private
the MICP to
a private corporation. This is clearly within its power to
corporations. GOCCs may be created or established by special The structure of
the PNRC is sui generis, being neither strictly private
do. The contract between the PPA and ICTSI, coupled with the
charters in the interest of the
common good and
subject to President's written approval, constitute the necessary authorization nor public
in
nature. R.A.
No. 95
remains valid
and
constitutional in
thetestofeconomicviability. forICTSI'soperationandmanagementoftheMICP. itsentirety.
Operation of Public Utilities. — Section 11. No franchise, c. AdvertisingandMedia
Republicv.PLDT
certificate, or any other form of authorization for the operation of
Sec 10 Art XVI
. The
State shall provide the policy environment
apublicutilityshallbegrantedexcept There is no reason why the
State
may not
require
a public
utility to
render services in the general interest, provided just compensation is for
the full development of Filipino capability and the emergence
a) toc itizensofthePhilippinesor of communication structures suitable to the needs and
paid therefor. Ultimately, the beneficiary of the interconnecting
b) to corporations or associations organized under the service would be the users of both telephone systems, so that the aspirations of the nation and the balanced flow of information
laws of
the
Philippines,
at
least
60%
of
whose
capital condemnationwouldbeforpublicuse. into, out
of,
and
across the
country, in
accordance with a policy
isownedbysuchcitizens; thatrespectsthefreedomofspeechandofthepress.
NADECOv.PVB
nor shall such franchise, certificate, or authorization be exclusive Sec
11.
The
ownership and management of mass media shall be
incharacterorforalongerperiodthan50years. The interests of the public are not sufficiently involved to warrant the limited to citizens of the Philippines, or to corporations,
The State shall encourage equity participation in public interference of
the government with
the private contracts of AGRIX. It cooperatives or associations, wholly-owned and managed by
would appear that the decree was issued only to favor a special group suchcitizens.
utilitiesbythegeneralpublic. of investors who have been preferred to the legitimate creditors of
Section 17. In times of
national emergency, when the
public AGRIX. The Congress shall regulate or prohibit monopolies in
interest so requires, the State may, during the emergency and Also, the means employed to rehabilitate AGRIX
fall
far
short
of
the commercial mass media when the public interest so requires. No
under
reasonable terms prescribed by it, temporarily take over requirement that they shall not be unduly
oppressive. The
right to combinations in restraint
of
trade
or
unfair
competition therein
property in all mortgages, liens, interests, penalties and charges shallbeallowed.
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SourcesofInternationalLaw
The advertising industry is impressed with public interest, and b. by a majority vote of all its Members, submit to the
electoratethequestionofcallingsuchaconvention. Article38,InternationalCourtofJusticeStatute
shall be
regulated by law for the protection of consumers and the
promotionofthegeneralwelfare. Section
4.
Any
amendment
to,
or
revision
of,
this Constitution shall CustomaryInternationalLaw
Only Filipino citizens
or
corporations
or at
associations least be valid when ratified by a majority of the votes cast
in
a
GeneralPrinciplesofLaw
seventy
per
centum
(70%) of the capital of which is owned plebiscite which shall be held not earlier than sixty days nor
laterthanninetydays EffectofUNDeclarations,SecurityCouncilResolutions
by such citizens shall be allowed to engage in the advertising
industry. a. after the approval of such amendment or revision; Effect of actions of organs of international organizations
(ConstituentAssemblyorConstitutionalConvention)OR
The participation of foreign investors in the governing body
of createdbytreaty
entities in such industry shall be
limited to
their
proportionate b. after
the certification by the Comelec of the sufficiency of
RelationshipwithDomesticLaw
share in the capital thereof, and all
the
executive and
managing thepetition.(People’sInitiative)
officersofsuchentitiesmustbecitizensofthePhilippines.
1. SourcesofInternationalLaw
Lambinov.Comelec
12. AmendmentandRevisionoftheConstitution Article38,I nternationalCourtofJusticeStatute
The framers of the Constitution intended that the "draft of the
The
Court,
whose
function is
to decide in accordance with international
proposed constitutional amendment" should be "ready and
Article XVII. Section 1. Any amendment to, or revision of, this lawsuchdisputesasaresubmittedtoit,shallapply:
shown"tothepeople"b efore"theysignsuchproposal.
Constitutionmaybeproposedby: a. international conventions, whether general or p articular,
A
people's
initiative
to
change
the
Constitution
applies ONLY to an
establishing rules expressly recognized by the contesting
1. The Congress, upon a vote of three-fourths of all its amendment of the Constitution and NOT to its r evision.
states;
Members;or Revisionb roadlyimpliesachangethat
b. international custom, as evidence of a general practice
2. Aconstitutionalconvention. a. alters a basic principle
in
the constitution, like altering
acceptedaslaw;
the principle of separation of powers or the system of
Section 2. Amendments to this Constitution may likewise be checks-and-balances. c. thegeneralprinciplesoflawrecognizedbycivilizednations;
directly proposed by the people through initiative upon a petition
Thereisalsorevisionifthechange d. subject to
the
provisions of
Article
59,
judicial decisions
and
of the teachings of the most highly qualified publicists of the
b. alters the substantial entirety of the constitution, as
a. at least twelve per centum of the total number of various nations, as
subsidiary means for
the determination of
when the change affects substantial provisions of the
registeredvoters, constitution. rulesoflaw.
b. of
which
every
legislative district must be represented by at A
two-part test
is
thus
used: the quantitative test and the qualitative This provision shall not prejudice the power of the Court to decide
a
leastthreepercentumoftheregisteredvoterstherein. test. The quantitative test examines only the number of caseexaequoetbono,ifthepartiesagreethereto.
No amendment shall be authorized within five years following the provisionsaffectedanddoesnotconsiderthedegreeofthechange. 1. Thereare2instanceswheree
quitym
aybeapplied:
ratification of this Constitution nor oftener than once every five The qualitative test inquires into the qualitative effects of the a. Ex Aequo et Bono — there
is
the
requirement of
agreement
yearsthereafter. proposed change in the constitution. The main inquiry is whether the by
the parties by
permitting the ICJ to resolve the case on the
Section3.TheCongressm
ay, change will "accomplish such far reaching changes in the
nature
of basis e
of quity instead of the applicable rules of international
ourbasicgovernmentalplanastoamounttoarevision.". law.
a. by a vote of two-thirds of all its Members, call a
b. Non liquet.
— “it
is
not clear,” refers to a situation where there
constitutionalconvention,O R
DAY1|AMInternationalLaw is no applicable law and the parties have not agreed to have
theircasedecidedexaequoetbono.
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2. Equitycanperformthreefunctions addresses a jus cogens norm in order to protect, promote and
preserveajuscogensnorm. The raison d'etre of executive agreements hinges on prior
a. Equityi nfralegem—
toadapttothefactsofindividualcases; constitutionalorlegislativeauthorizations.
10. Unilateral Declaration of State Doctrine. — A unilateral
b. Equityp
raeterlegem—tofillgapsinthelaw;
declarationbindsthestateinternationallywhen:
c. Equity contra legem — as a reason for refusing to apply unjust
CustomaryInternationalLaw
a. Publiclymadeandmanifestingwilltobebound;
laws. 11. CIL
consists of
rules of
law
derived from the consistent conduct of
b. Madebyanauthorityvestedwiththepowertodoso;
3. HowisPILformed? States acting
out of
the
belief
that
the law
required them to act that
c. Madeorallyorinwriting; way.
a. Throughstatepractice—2elements:
d. Addressed to the international community
or
to
specific
state 12. Theelementsofcustomarynormsare:
i. objectiveelement(generalstatepractice);
orentity;
a. Durationo
rlongStatepractice;
ii. subjectiveelement(o
piniojurissivenecessitatis) e. Statedinclearandspecificterms;
b. Consistency of the
State
practice
or
the
widespread
repetition
b. Through agreement by the states — Through
conventions
f. Consistentwithjuscogens; byStatesofsimilarinternationalactsovertime;
ortreaties.
g. Willnotbindthirdstateswhodonotacceptit; c. Generality of the
State
practice or that
the
acts
are taken
by
a
4. Lotus
Doctrine. — A state
is
barred to
do an act only when it is so
h. Notvalidlyrevoked. significant number of States and not rejected by a significant
prohibited under a treaty or CIL because restriction to state
numberofStates;and
sovereigntyisnotpresumed.
BayanMunav.Romulo2
011EnBancreExecutiveAgreements
d. Opinio
Juris
Sive Necessitatis or the requirement that the acts
5. Relevant State Practice Doctrine. — Practice of those states
Internationalagreementsmaybeintheformof mustoccuroutofasenseofobligation.
whoseinterestsarespeciallyaffected.
1) treaties that require
legislative
concurrence
after
executive GeneralPrinciplesofLaw
6. WhatisthePersistentObjectorDoctrine(POD)?
ratification;or
Theimportantelementstoconsiderinthiscaseare: 13. Are those which are recognized by civilized nations to be so
2) executive agreements that are similar to treaties, except fundamental that they are a basic tenet in virtually every major legal
a. The
objection
by
the dissenter must have been done before the that they do not require legislative concurrence and are system. They are derived from domestic law. They find relevance in
normhasripenedtoCILorattheoutset. usually less formal and deal with a narrower range of subject
fillinggapsleftbytreatiesandCIL.
mattersthantreaties.
b. Theobjectionmustbec onsistent. 14. In
the
Corfu Channel Case, the ICJ held that the obligation of Albania
Under international law, there is no difference between treaties
c. The objection must be categorical, clear and equivocal to notify the UK of the existence of minefield in its territory is based
andexecutiveagreementsintermsoftheirbindingeffects.
dissentmustbeshown. oncertaingeneralandwell-recognizedprinciplesofIL:
7. What is the value of the POD? Since it is a CIL, all
states must Saguisagv.ExecutiveSecretary2 016EnBancreEDCA a. Elementary considerations of humanity, even more exacting
comply because all
states are
bound by
it. However, when the state inpeacethaninwar;
qualifies as
a persistent objector, it may not be compelled to follow Executive agreements may dispense with the requirement of
Senate
b. Principleoffreedomofmaritimecommunication;and
theCIL. concurrence b
ecause o
f
t
he l
egal
m
andate w
ith w
hich
t
hey are
concluded. They merely involve arrangements on the c. Every State has an obligation not to allow knowingly its
8. There is n o stare decisis on ICJ decisions because Art 59 implementation of
existing policies, rules, laws, or agreements. They territory to be used for acts contrary to the rights of other
provides that decisions of
ICJ
shall
apply only between the
parties areconcluded States.
andonlyinaparticularcase. 1) toadjustthedetailsofatreaty; 15. The
Aramco Arbitration Case declared
the
principle
of respect for
9. Obligations Erga Omnes. — Obligations of a state to the 2) pursuant to or upon confirmation by an act of the acquired rights as one of
the
fundamental principles of
both
PIL
international community. Obligations for which all states have a Legislature; andofthemunicipallawofmostcivilizedStates.
legal
interest
in the fulfillment
by
reason of the importance of their 3) in
the
exercise
of
the
President's
independent
powers
under 16. The
principle
of
estoppel is
also
considered
a general principle of
subject matter to the
international community. Whether
such duty theConstitution. lawasappliedintheC aseConcerningtheTempleofPreahVihear.
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17. Our own SC
in
Kuroda
v.
Jalandoni has
declared that
the and 24. The conduct of an organ of a State or an organ or agent of an
rules notice
and
hearing will
not
go
against
the treaty or the implementing
regulations of the Hague Conventions are generally accepted international organization that is placed at
the disposal of another law.
Neither the Treaty nor the Extradition Law precludes these rights
principles of
law. Therefore, they
form part
of
our
laws even if
the international o rganization shall be considered under international fromaprospectiveextraditee.
Philippineswasnotasignatorytotheconventions. law a
n
a
ct
o
f
t he l
atter
o
rganization i
f
t
he o
rganization exercises
effectivecontrolo verthatconduct. AngLadladv.Comelec2
010EnBanc
EffectofUNDeclarations,SecurityCouncilResolutions
18. Resolutions of the UN General Assembly are mere 2. RelationshipwithDomesticLaw We explicitly recognize the principle of non-discrimination as it
recommendations on questions or matters within the scope of the PhilipMorrisv.CA relates
to
the
right
to
electoral
participation, enunciated in the UDHR
andtheICCPR.
presentUNCharter.
The fact that international law has
been made
part of the law
of
the The principle of non-discrimination requires that laws of
general
The resolutions, however, may constitute evidence of the land does not by any means imply the primacy of
international law
application relating to elections be applied equally to all persons,
existenceofinternationalcustoms. over national law in the municipal sphere. Under the doctrine of regardless of sexual orientation. Although sexual orientation is not
19. Under Art 25 of the UN Charter, all members agree to accept and incorporation
a s
applied
i n
m ost
c ountries, rules o f i nternational specifically enumerated as a status or ratio for discrimination in
law are
given a standing e
qual, not superior, to national legislative Article 26 of the ICCPR, the ICCPR Human Rights Committee has
carry out
the decisions of the Security Council. While other organs
enactments. opined that the reference to "sex" in Article 26 should be construed to
of the UN make recommendations to Governments, the Council
include"sexualorientation."
alone has the power to make decisions which Member States are
Tanadav.Angara The
Yogyakarta Principles, consisting
of
a declaration formulated by
obligatedu ndertheChartertocarryout.
In its Declaration of Principles and State Policies, the Constitution various international
law professors, are — at best - de lege ferenda
Effectofactionsoforgansofinternationalorganizations —anddonotconstitutebindingobligationsonthePhilippines.
“adopts the generally accepted principles of international law
createdbytreaty as part of the law of the land, and adheres to the policy of peace,
equality, justice, freedom, cooperation and amity, with all CompareD
octrineofTransformationinU
Sv.Purganan
20. Art 2(a) of the 2011 Draft Articles on the Responsibility of
nations." By the doctrine of incorporation, the country is bound by
International Organizations, an “international organization” is generally accepted principles of international law, which are The US-RP Extradition Treaty in particular, undoubtedly affects not
one established by a treaty or other instrument governed by considered to be automatically part of our own laws. One of the only state
organs but
also private
individuals as
well.
It
is
said
that,
international law and possessing its own international legal oldest and most fundamental rules in international law is pacta in
treaties
of
this
nature,
it
should behoove the
state
to undertake or
personality. International organizations may include as members, adopt the necessary steps to make the treaty binding upon said
sunt servanda — international agreements must be performed in subjectseitherbyi ncorporationo rtransformation.
inadditiontoStates,otherentities. goodfaith.
Existing legislation contrary to
the
provisions of
the
treaty becomes
21. Every internationally wrongful
act
of
an
international
organization
SOJv.Lantion invalid, but
legislation is
necessary to
put
the treaty
into
effect. The
entailstheinternationalresponsibilityofthatorganization. constitutional requirement that the treaty be concurred in by no less
22. There is an internationally wrongful act of an international The doctrine of incorporation is applied whenever municipal than two-thirds of all
members of
the Senate is,
for
legal
intent
and
organizationwhenconductconsistingofanactionoromission: tribunals are confronted with situations in which there appears to be purposes, an equivalent to the required transformation of
a conflict between a rule of international law and
the provisions of treatylawintomunicipallaw.
a) isattributabletothatorganizationunderIL;and the constitution or statute of the local state. Efforts should first
be
In preserving harmony between treaty law and municipal law, it
is
b) constitutesabreachofaninternationalobligation. exertedtoh armonizet hem,soastogiveeffecttoboth. submitted—
23. The conduct
of
an
organ or agent of an international organization in In a situation, however, where the conflict is irreconcilable and a
1) That treaty
law
has
the
effect of amending, or even repealing
the performance of functions of that organ or agent shall be choice has to be made between a rule of international law and
an
inconsistent municipal statute, a later
enactment being
municipal law,
jurisprudence dictates that municipal law should be controlling,
considered an act of that organization under international law,
upheldbythemunicipalcourts.
whatever position the organ or agent holds in respect of the
In
the
absence of
a law
or
principle of law, we must apply the rules 2) but that an inconsistent municipal statute subsequently
organization.
of
fair
play. An application of the basic twin due process rights of passed cannot modify treaty law, without the concurrence of
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the other state party thereto, following the generally a) Workers can not be dismissed without
just
or
authorized
1. afford full protection to labor, local and overseas,
acceptedprincipleofp actasuntservanda. causes.
organizedandunorganized,and
b) Probationary employees shall be made regular after 6
2. promote
full
employment and
equality
of
employment
DAY1|AMLaborLaw opportunitiesforall.
monthsunlessadifferentperiodisagreed.
c) It is the right of the employee to continue to work until
BasicPrinciples Collective Rights of Workers.
— It
shall
guarantee
the
rights
of
all terminatedforjustorauthorizedcauseasprovidedbylaw.
workersto
ExistenceofER-EERelationship;Tests
1. self-organization, ARTICLE 294. Security of Tenure. — In cases of regular
TheFour-FoldTest employment, the employer shall not terminate the services of an
2. collectivebargainingandnegotiations,and
EconomicRealityortheTwo-TieredTest employee except for a j ust cause or when a
uthorized by this
3. peaceful
concerted
activities,
including
the
right
to
strike
in
Title. An employee who is
unjustly
dismissed from
work
shall
be
TerminationofEmployment accordancewithlaw.
entitledto
JustCauses IndividualRightsofWorkers.—T
heyshallbeentitledto
a) reinstatement without loss of seniority rights and other
AuthorizedCauses 1. securityoftenure, privilegesand
2. humaneconditionsofwork,anda b) hisfullbackwages,inclusiveofallowances,and
ProceduralDueProcess
3. livingwage. c) his other benefits or
their
monetary equivalent
computed
ConstructiveDismissal
from the
time
his
compensation was
withheld from him
up
Right
to
Participate.
— They
shall
also
participate in policy and tothetimeofhisactualreinstatement.
Reliefsfromillegaldismissal
decision-making processes affecting their rights and benefits as
ByEmployee maybeprovidedbylaw. 2. Socialjustice
Retirement TheStateshallpromote The promotion of
the
welfare
of all the people, the adoption by
RequirementforLabor-onlyContracting 1. the principle of shared responsibility between workers the Government of measures calculated to insure economic
andemployersand stability
of
all
the
component elements of
society, through
the
Rights
of
Employees and of Labor Organizations; Membership maintenance of a proper economic and social equilibrium in
2. the preferential use of voluntary modes in settling
inUnions the interrelation of the members of the community,
disputes, including conciliation, and shall enforce their
constitutionally, through the adoption of measures legally
ManagementPrerogative mutualcompliancetherewithtofosterindustrialpeace.
justifiable, or extra-constitutionally through the exercise of
IllegalRecruitmentofOFWs The State shall regulate the relations between workers and powers underlying the existence of all Governments on the
employers,recognizing time-honored principle of Salus Populi est suprema lex.
RemediesforLaborStandardsViolation (Calalangv.Williams)
1. the
right
of
labor to its just share in the fruits of production
3. Equalworkopportunities
1. BasicPrinciples and
a) The State shall promote full employment and equality
of
2. the right of enterprises to reasonable returns to
SEC3ARTXIII.T
heStateshall employmentopportunitiesforall.
investments,andtoexpansionandgrowth.
1. Securityoftenure
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b) A manifestation of this is
the
enactment
of
RA
10911
or c) The rule is that where the law speaks in clear and In illegal dismissal cases, the employer is burdened to prove just
the Anti-Age Discrimination in Employment Act. The categorical language, there is no room for interpretation; cause for terminating the employment of its employee w ith clear
lawhoweveracceptsofe xceptions there is only room for application. Only when the
law
is and convincing evidence. This principle is designed to give
i) Age is a bona fide occupational qualification ambiguous or
of
doubtful meaning
may the court interpret flesh and blood to the guaranty of
security of tenure
granted
by the
reasonably necessary in the normal operation of a or
construe its true intent. (Leoncio v. MST Marine Services ConstitutiontoemployeesundertheLaborCode.
particular business or where the differentiation is 2017)
basedonreasonablefactorsotherthanage; 6. Burdenofproofandquantumofevidence
2. ExistenceofER-EERelationship;Tests
ii) The intent is to observe the terms
of
a bona
fide a. It is in personam and involves the rendition of personal
Maulav.XimexDeliveryExpress2017
seniority system that
is
not
intended to evade the service by the employee, and partakes of master and servant
purposeofthisAct; In administrative and quasi-judicial proceedings, the quantum of relationship.
evidence required is substantial evidence or "such relevant
iii) The intent is to observe the
terms
of
a bona
fide b. Its existence is a question of law and fact. In the 2016
evidence as
a reasonable mind might accept as adequate to support a
employee retirement or a voluntary early conclusion." Thus, unsubstantiated suspicions, accusations, and Century Properties case,
SC
said that
the employment status of
retirement plan consistent with the purpose of conclusions of the employer do not provide legal justification for a person is defined and prescribed by law
and
not by
what
thisAct;or dismissingtheemployee. the parties
say it
should be.
It
can
not
be
negated
by expressly
repudiatingitinacontract.
iv) TheactionisdulycertifiedbytheSOLE. Minsolav.NewCityBuilders,Inc.2018reMoneyClaims
c. In the 2011 Tongko case, SC aptly described the
primary
and
4. Righttoself-organizationandcollectivebargaining In claims for payment of salary differential, service incentive controlling test in determining the existence of an ER-EE
a) An employee can join a union on the first day of leave, holiday pay and 13th month pay, the
burden rests
on
the
relationship as
the
control over the performance of the task
employment. employer to prove payment. This standard follows the basic rule
oftheoneprovidingtheservice
that in
all
illegal dismissal cases the burden rests on the defendant to
b) Collective
bargaining is
a contract
between workers and provepaymentratherthanontheplaintifftoprovenon-payment. TheFour-FoldTest
employers on terms and conditions of employment over
On the other hand, for
overtime pay,
premium pays for holidays
andabovethosemandatedbylaw. 1) SelectionandEngagementofemployees;
and rest days, the burden is shifted on the employee, as these
5. Constructioninfavoroflabor monetary claims are not incurred in the normal course of business. It 2) PaymentofWages;
is thus incumbent upon the
employee to
first
prove
that he
actually 3) PowerofDismissal;
rendered service in excess of
the
regular
eight
working hours a day,
ARTICLE 4. Construction in Favor of Labor. — All doubts in the andthatheinfactworkedonholidaysandrestdays. 4) ⭐ Power of Control over employee’s conduct and
implementation and interpretation of the provisions of this Code, over the means, manner and method by which the
including its implementing rules and regulations, shall be
resolved Remoticadov.TypicalConstructionTrading2018Leonen,J workistobeaccomplished.
infavoroflabor. reIllegalDismissal
EconomicRealityortheTwo-TieredTest
There can be no case for illegal termination of employment when
there was no termination by the employer. While, in illegal This test is used when there is no existing employment
a) In Peñaflor v. Outdoor Clothing 2010, this principle has
termination cases, the burden is upon the employer to show just contract.
been extended to
cover doubts in the evidence presented
cause for termination of employment, such a burden arises only if 1) The putative employer’s power to control the
bytheemployerandtheemployee. the
complaining employee has
shown, by s
ubstantial evidence,
employee with
respect to
the
manner
and methods by
b) If doubt exists between the evidence presented by the thefactofterminationb ytheemployer.
whichtheworkistobeaccomplished;and
employer and the employee, the scales
of
justice
must
be
DutyFreePhilippinesv.Tria2012
tilted in favor of the latter. (Dreamland Hotel Resort v.
reClearandConvincingEvidence
Johnson2 014)
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2) The underlying economic realities of the activity or
between BSP and the security guards assigned to it by an agency sufficientevidencetoprovetheexistenceofEER.
relationship, i.e. employee’s economic dependence pursuant to a Guard Service Contract. In the absence of such
ontheemployer. Kalookan Slaughterhouse, through Tablit, was the one who engaged
relationship, vicarious liability under Article
2180 of
the
Civil Code
petitioner, paid for his salaries, and in effect had the power to
Depends upon the circumstances of the whole economic cannot apply as
against
BSP.
Similarly, we
find
no
EER between MCS
dismiss him. Further, Kalookan Slaughterhouse exercised control
and respondent guards. The guards were merely assigned by
activity: over petitioner's conduct through De Guzman. To the mind of the
Grandeur to secure MCS' premises pursuant to their Contract of Guard
1) The broad
extent
to
which
the
services
performed are Court, Kalookan Slaughterhouse was petitioner's employer and it
Services. Thus, MCS cannot be held vicariously liable for damages
exercised its rights as an employer through Tablit and De Guzman,
anintegralpartoftheemployer’sbusiness. causedbytheseguards'actsoromissions.
whowereitsemployees.
2) The
limited
extent
of
the
worker’s
investment
in the Loreche-Amitv.CagayanDeOroMedicalCenter2
019
equipmentandfacilities. AmericanPowerConversionCorpv.Lim2
018reQuasi-Contract
ECONOMIC REALITY TEST. The benchmark of economic
reality
is
3) Thenatureandhighdegreeofcontrolbytheemployer; We have this unique situation where respondent was hired directly
theeconomicdependenceoftheworkeronhisemployer.
by APCC of the USA, but was being paid his remuneration by a
4) The worker’s limited opportunities for profit and WONLoreche-AmitwasanemployeeofCDMC. separate entity — APCP BV of
the
Philippines, and is supervised and
growth; controlled by
APCS from Singapore and APC Japan - all in furtherance
NO.CDMCdoesnotexercisethepowerofcontroloverpetitioner. of
APCC's objective of
doing business here unfettered by government
5) The small amount of initiative, skill, judgment or
Petitioner was working for two other hospitals aside from CDMC, not regulation.Foralllegalpurposes,APCCisrespondent'semployer.
foresight required for the success of the claimed
to mention those other hospitals which she caters to when her
independententerprise;
services are needed. Such fact evinces that petitioner controls her 3. TerminationofEmployment
6) The high degree of permanency and duration of workinghours.Onthisnote,relevantistheeconomicrealitytest.
relationship; JustCauses
Thus, the fact that petitioner continued to work for
other
hospitals
7) The degree of dependency of the worker upon the strengthens the proposition that petitioner was not wholly dependent ARTICLE 297. Termination by Employer. — An employer may
employerforhiscontinuedemployment.. onCDMC. terminateanemploymentforanyofthefollowingcauses:
Luv.Enopia2
017 Petitioner
likewise admitted that
she receives
in full her 4% share in
a) Serious misconduct or willful disobedience by
the
the
Clinical
Section
of
the
hospital regardless of the number of hours
The fact that petitioner had registered the respondents with SSS is sheworkedtherein.T heruleisthat employee of the lawful orders of his employer or
proof that they were indeed his employees. The coverage of the Social representativeinconnectionwithhiswork;
a. whereapersonwhoworksforanother
SecurityLawispredicatedontheexistenceofanEER.
b. performshisjobmoreorlessathisownpleasure, b) Gross and habitual neglect by the employee of his
It
was
established that petitioner exercised control over respondents. duties;
The control test merely calls for the existence of the right to c. inthemannerheseesfit,
control,andnotnecessarilytheexercisethereof. d. notsubjecttodefinitehoursorconditionsofwork,and c) Fraud or willful breach by the employee of the trust
The payment of
respondents' wages based on the percentage share of e. is
compensated according
to
the
result of his efforts and not reposed in him by his employer or duly authorized
the fish catch would not be sufficient to negate the EER existing theamountthereof, representative;
betweenthem. noemployer-employeerelationshipexists. d) Commission of a crime or offense by the employee
Petitioner
wielded the
power of
dismissal over respondents when he against the person of his employer or any immediate
dismissed them after they refused to sign the joint fishing venture Fernandezv.KalookanSlaughterhouse2
019
member of his family or his duly authorized representatives;
agreement. WONFernandezwasanemployeeofKalookanSlaughterhouse. and
Reyesv.Doctolero2
017 YES. The Court in Masonic Contractor, Inc. v. Madjos ruled that the e) Othercausesanalogoust otheforegoing.
fact that the company provided identification cards and
In Mamaril v. The Boy Scout of the Philippines, there was no EER
uniforms and the vague affidavit of the purported employer were
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1) Serious Misconduct. — Misconduct is improper or 4) FraudorWillfulBreachofTrust.—
iii) The employee concerned must be holding a
wrong conduct. It is a transgression of
some established and positionoftrustandconfidence;
a) Therearetwo(2)classesofp
ositionsoftrust.
definite rule of action, a forbidden act, a dereliction of duty,
iv) The loss of trust and confidence should not be
willful in
character and implies wrongful intent and not merely i) The first class consists of managerial
simulated;
error in judgment. It must be in connection with the EE’s employees, or
those
vested
with
the power to lay
worktoconstitutejustcauseforhisseparation. downmanagementpolicies;and v) It
should not be used as a subterfuge for causes
a) Theremustbem
isconduct; ii) The second class consists of cashiers, auditors, whichareimproper,illegal,orunjustified;and
property custodians or those who, in
the normal vi) It
must
be genuine and not a mere afterthought to
b) The misconduct must be of such grave and
and
routine exercise of
their
functions, regularly justifyanearlieractiontakeninbadfaith.
aggravatedcharacter; handle significant amounts of money or
5) Commission of a Crime. — By the employee against the
c) It must relate to the performance
of
the
employee's property.
person of his employer
or
his
immediate
family
or
authorized
duties;AND b) RequisitesofFraud
representatives.
d) There must be
showing
that
the becomes
employee i) There must be an act, omission, or a) There must be an act or omission
unfittocontinueworkingfortheemployer. concealment;
punishable/prohibitedbylaw;and
2) WillfulDisobedienceorInsubordination.— ii) The act, omission or concealment involves a
b) The act
or
omission
was
committed
by
the
employee
breach of legal duty, trust, or confidence justly
a) Theremustbedisobedienceorinsubordination; againstthepersonof
reposed;
b) The disobedience or insubordination must
be
willful i) employer,
iii) It must be committed against the employer
or
or intentional characterized by a wrongful and his/herrepresentative;and ii) anyimmediatememberofhis/herfamily,or
perverseattitude;
iv) It must be in connection with the employees' iii) his/herdulyauthorizedrepresentative.
c) The order violated must be reasonable, lawful, and work. 6) Analogous Causes. — No act or omission shall be
madeknowntotheemployee;and
c) RequisitesofBreachofTrust considered as analogous cause unless expressly specified in
d) The order must pertain to the duties which he has thecompanyrulesandregulationsorpolicies.
i) The employee holds a position of trust and
beenengagedtodischarge.
confidence; a) Abandonment is the deliberate and unjustified
3) GrossandHabitualNeglectofDuty.— ii) There
exists
an
act
justifying
the
loss of trust and refusal of an employee to resume his employment.
a) Gross Neglect refers to the absence
of
that
diligence confidence; Twofactorsshouldbepresent:
that an ordinary prudent man would use in his/her iii) Theemployee’sbreachmustbew
illful; i) the
failure
to
report for work or absence without
ownaffairs. validorjustifiablereason;and
iv) The act must be in relation to his work which
b) Habitual
Neglect
refers to repeated failure to perform ii) a
clear
intention
to
sever
EER
— manifested by
wouldrenderhimu
nfittocontinue.
one's
duties
over
a period of time, depending upon the overt acts
from
which
it
may
be
deduced
that
the
d) RequisitesofLossofConfidence
circumstances. employeeshavenomoreintentiontowork.
i) Theremustbeana
ct,omissionorconcealment;
GR: Neglect of duty must be BOTH Gross and b) Sexual Harassment. — The
gravamen
of
the
offense
Habitual. ii) The act, omission or concealment justifies the is not the mere violation of one’s sexuality, but the
EXC: Even if NOT habitual, but there is loss
of trust and confidence of the employer to the abuse of power by the employer who has a duty to
SUBSTANTIALDAMAGEorinjurytotheER. employee; protecthisemployeeagainstover-sex.
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c) GrossInefficiencyorpoorperformance.— NLRC2
010) Mamarilv.RedSystemCompany2
018
i) Employerhassetstandardsofperformance; SterlingPaperProductsEnterprisesv.KMM-Katipunan2
017
WON Mamaril was illegally dismissed by Red System, and is
ii) Standards are reasonable and in connection with The utterance of obscene, insulting or offensive words against a consequentlyentitledtoreinstatementandfullbackwages;and
employee’swork;AND superior is not only destructive of the morale of his
co-employees NO. Mamaril was validly dismissed on account of his willful
iii) Proof
that
EE
failed
to
meet
the standards despite and a violation of the company rules and regulations, but also disobedienceo fthelawfulordersofRedSystem.
givenreasonableopportunitytomeetthesame. constitutesgrossmisconduct.
Red System was not remiss in reminding its drivers of the
d) Drug use or abuse. — the law specifies that the WONEspongawasvalidlydismissedfors eriousmisconduct. importance of abiding by their
safety
regulations. Notably,
Mamaril
procedure shall employtwo testing methods, i.e., the YES. In de La Cruz v. NLRC, the dismissed employee shouted, violated Red System's safety rules twice, and caused damage
screening test and the confirmatory test.
(Nacague v. "Sayang ang pagka-professional mo!" and "Putang ina mo" at the amounting to over Php 40,000.00. To make matters
worse,
he
even
companyphysicianwhenthelatterrefusedtogivehimareferralslip. deliberatelyandwillfullyconcealedhistransgressions.
SulpicioLines2 010)
e) Attitude Problem. — An employee who cannot get Likewise, in Autobus Workers' Union (AWU) v. NLRC, the AlaskaMilkv.Ponce2
017
dismissed employee told his supervisor "Gago ka" and taunted the
along with his co-employees is detrimental to the WONPoncewasguiltyofgrossandhabitualneglecto
fduties.
latterbysaying,"Bakitanonggustomo,tanginamo."
company for he can upset and strain the working
Moreover, in Asian Design and Manufacturing Corporation v. NO. Fault cannot rest upon Ponce's shoulders alone, inasmuch as
environment. It is a situation analogous to loss of Deputy
Minister of
Labor, the
dismissed
employee
made
false and satisfactory completion of the assigned tasks was subject to an
trust
and confidence that must be duly proved by the maliciousstatementsagainsttheforeman(hissuperior). interplay of factors beyond his sole control. The fact that Ponce
employer.(H eavyliftManilav.CA) In Reynolds Philippines Corporation v. Eslava, the dismissed admitted to having been delayed in some of the tasks assigned to him
employee circulated several letters
to the members of the company's doesnotestablishgrossandhabitualneglectofduties.
f) Enforcementofunionsecurityclause.—
board of directors calling the executive vice-president and general WONPoncecanbeterminatedforl ossoftrustandconfidence.
i) Theunionsecurityclauseisapplicable; managera"bigfool,""anti-Filipino".
YES. As
regards
a managerial employee, the mere existence of a basis
ii) The bargaining union is requesting for the Hence, it is well-settled that accusatory and inflammatory for believing that such employee has breached the trust of his
termination of
employment due to enforcement of language used by an employee towards his employer or
employerwouldsufficeforhisdismissal.
superiorcanbeagroundfordismissalortermination.
theclauseintheCBA;A
ND
Ponce held the position of
Director
for
Engineering Services and that
iii) There
is sufficient evidence to support the union’s TransglobalMaritimeAgencyv.Chua2
017 he
was in
charge of managing AMC's Engineering Department. Hence,
decision to expel the employee from the union. he
belongs to
the first
class of
employees who
occupy a position of
There
must be
reasonable
proportionality between, on the one hand,
trustandconfidence.
(SlordDevelopmentv.Noya2 019) the
willful
disobedience by the
employee
and,
on the other hand, the
penaltyimposedtherefor. The Court rules that his dismissal from employment is justified.
g) Commissionofprohibitedactsduringstrike.—
First, The opening sentence of Ponce's R/A e-mail readily exposes the
WONChuawasvalidlydismissedfori nsubordination. attendant willfulness in
his act.
Second, the
act
of
soliciting receipts
i) A worker merely participating in
an
illegal
strike
may not be terminated from employment. It is NO. By virtue of the POEA-SEC, Chua is indeed bound to obey the from colleagues constitutes dishonesty, inimical to
AMC's
interests,
only when he commits illegal acts during a lawful commands of
the
captain of the ship, but only as long as these for the simple reason that Ponce would be collecting receipted
pertain to his duties.There is no relevance to
the
order to
sign the allowance from expenses he did not actually incur. Third, the R/A
strike that he may be declared to have lost
documentsinChua'sperformanceofhisdutyasaseaman. e-mail betrays a truly sinister purpose which AMC had a right to
employmentstatus.(S olidbankv.Gamier2 010) guardagainst.
To
amount to
a valid
dismissal, an
erring seafarer must be
handed a
ii) A union officer
who
knowingly participates in
an
written notice of the charge against him and must be given the Bravov.UriosCollege2
017Leonen,J
illegal strike is deemed to have lost his opportunity to explain himself — unless, of
course, there is
a clear
employment status, but a union member who is and existing danger against the safety of the crew or the vessel in WONBravowasproperlydismissedforajustcause.
merely instigated or
induced to participate in
the whichcasenoticemaybedispensedwith.
YES. Petitioner's act in assigning to himself a higher salary rate
illegal strike
is
more
benignly treated. (Escario v.
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without proper authorization is a clear breach of the trust and company's Special Accounts held in trust for the rightful
copyright
It can be gathered that respondent's departure was merely a precursor
confidence reposed
in
him. In
addition,
there
was no
reason
for
the owners, Gaite's ability to duly perform and accomplish her duties
to his scheme to turn the table
against
petitioner.
Realizing that
his
Comptroller's Office to undertake the preparation of its own and responsibilities as
General Manager has been seriously put
into
employment was at serious risk due to his habitual neglect of his
summary table because this was a function that exclusively pertained question.
duties, respondent jumped the gun on petitioner by lodging a
totheHumanResourcesDepartment.
On the second ground for termination,
the
Court
finds
that
FILSCAP baseless complaint for illegal dismissal even though
it
was
he
who
Panaliganv.PhyvitaEnterprises2
017 validly terminated Gaite's employment on the ground of loss of trust abandonedhisemployment.
andconfidence.
WON there exists just and valid cause for the termination of MariaDeLeonTransportationInc.,etal.v.Macuray2
018
PANALIGAN,etal.'s,employmentbyPHYVITA. Claudia’sKitchenInc.v.Tanguin2
017
An employee can not be said to have abandoned his employment
NO. No direct evidence was presented to link PANALIGAN, et al., to In abandonment, absence must be accompanied by overt acts when he
merely availed of
a company practice of taking sabbaticals
thetheftthattheyallegedlycommitted. unerringly pointing to the fact that the employee simply does not in order
to
afford them
the opportunity to
recover from
the
stresses
want to work anymore. Mere absence or failure to report for
work, of driving the same long and monotonous bus routes by accepting
Taking into consideration the fact that the DOLE-NCR conducted an even after a notice to return to work has been served, is not enough to jobselsewhere.
inspection of the respondent's premises on as a result of
the
labor amounttoanabandonmentofemployment.
complaint filed by PANALIGAN, et al., and they were implicated in the WON there was just cause for dismissing Macuray due to
alleged theft incident only thereafter, a reasonable inference can be Here, there was no abandonment on
the
part
of
respondent. Records abandonment.
made that
PANALIGAN, et
al.'s,
termination of employment may have are bereft of any indication
that
Tanguin's failure to
report
for work
NO. Macuray
was
not
dismissed
from
work
and
he
did
not
abandon
been indeed a retaliatory measure designed to coerce them into was with a clear intent to sever her employment relationship with the
hisemployment.
withdrawing their complaint for underpayment of wages and petitioners. Moreover, Tanguin's act of filing a complaint for illegal
nonpayment of other labor standard benefits. Such an act is dismissal with prayer for reinstatement negates any intention to Even assuming that
respondent was
indeed told
by respondent's bus
proscribedbyA rticle118o ftheLaborCode. abandonheremployment. dispatcher Roger Pasion that
he
was
AWOL, this was not tantamount
to dismissal, actual or constructive. An ordinary bus dispatcher
Aluagv.BIRMulti-PurposeCooperative2
017 MehitabelIncv.Alcuizar2
017 hasnopowertodismissanemployee.
WONBIRMPChadjustcausetoterminateAluag'semployment. The filing of a complaint for illegal dismissal does not ipso facto
foreclose the possibility of
abandonment. It
is
not
the
sole indicator
AuthorizedCauses
YES. One of the infractions that BIRMPC cited in justifying Aluag's in determining whether or not there was desertion. Other
dismissal is
her failure
to
deposit checks on due dates, pursuant to a ARTICLE 298.
Closure
of
Establishment and Reduction of Personnel.
circumstances surrounding the case must be taken into account in
member/debtor's request. The task of depositing checks on due dates — The employer may also terminate the employment of any
resolvingtheissueofwhetherornottherewasabandonment.
definitelyfallswithinAluag'sscopeofresponsibilities. employeedueto
WONAlcuizarwasdismissedbyMehitabel.
BIRMPC had ample reason to lose the trust and confidence it 1. theinstallationoflabor-savingdevices,
reposeduponherandthereby,terminateheremployment. NO. The publications were made through sheer inadvertence, and
that the vacancy is actually for the position of Purchasing Officer, 2. redundancy,
Gaitev.FilipinoSocietyofComposers2
018 ratherthanPurchasingManager.
3. retrenchmenttopreventlossesor
WON Gaite was validly dismissed due to loss of trust and Alcuizar was informed of
the
error
committed,
and that
it
was made
confidence. clear
to
him that he was never terminated from service at that time in 4. the closing or cessation of operation of the
spiteofhispoorperformance. establishmentorundertaking
YES. Gaite's actuations constitute serious misconduct. First, not
only is the amount involved herein a staggering amount of
P17.7M, WONAlcuizarabandonedhisemployment. unless the closing is
for the purpose of circumventing the provisions
the alleged reallocation violated an express provision of the
YES. Respondent's non-compliance with the directive in the Return to of
this Title, by serving a written notice on the workers and the DOLE
company's Distribution Rules. Second, Gaite committed said transfer
Work to Our mind, signifies his intention
to
sever
the
employment atleastone(1)monthbeforetheintendeddatethereof.
in the performance of her duties as General Manager of FILSCAP.
relation with
petitioner, and gives credence to the latter's claim that it
Third, because of this grave infraction causing the depletion of the
wasrespondentwhoabandonedhisjob.
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a) There must be introduction of
machinery,
equipment b) The losses, if already incurred, are not merely de
In case of termination due to the installation of labor-saving orotherdevices; minimis, but substantial, serious, actual
and
real,
or,
devices or redundancy, the worker affected thereby shall be entitled ifonlyexpected,arereasonablyimminent;
b) Theintroductionmustbedoneingoodfaith;
to
a
separation pay
equivalent to
at
least
his one (1) month pay or to
c) The
purpose
for
such
introduction
must be valid such c) The expected or actual losses must be proved by
at least one (1) month pay for every year of service, whichever is
higher. as to save on cost, enhance efficiency and other sufficientandconvincingevidence;
In
case of retrenchment to prevent losses and in cases of closures or justifiableeconomicreasons; d) The retrenchment must be in good faith for the
cessation of operations of establishment or undertaking not due to d) There is no other option available to the employer advancement of its interest and not to defeat or
serious business losses or financial reverses, the separation pay than the introduction of machinery, equipment or circumvent the
employees' right
to
security of
tenure;
shall be equivalent to one (1) month pay or at
least
one-half
(1/2) device and the consequent termination of employment and
monthpayforeveryyearofservice,whicheverishigher. ofthoseaffectedthereby;and e) There must be fair and reasonable criteria in
A fraction of at least six (6) months shall be considered one (1) e) There
must
be
fair
and
reasonable criteria in selecting ascertaining who
would be
dismissed
and who would
wholeyear. employeestobeterminated. be retained among the employees, such as status,
efficiency, seniority, physical fitness, age, and
2) Redundancy. — exists when "the services of an employee
CommonRequisites financialhardshipforcertainworkers.
are in excess of what is reasonably demanded by the actual
a) Goodfaith; requirementsoftheenterprise." 4) Closing or cessation of operation. — Refers to the
complete or partial cessation of the operations and/or
b) Terminationismatterofl astresort; a) written
notice
served
on
both
the employees and the
shut-downoftheestablishmentoftheemployer.
c) Two (2) Separate notices served on the affected EE and DOLE at least one
month
prior
to
the
intended
date
ofretrenchment; a) There must be a decision
to
close
or
cease
operation
DOLEONEMONTHpriortointendeddateoftermination;
oftheenterprisebythemanagement;
d) Separationpay; b) payment of
separation pay
equivalent to
at
least one
month
pay or
at
least
one
month pay for every year of b) Thedecisionwasmadeingoodfaith;and
i. Installation of labor saving Device or Redundancy — 1
service,whicheverishigher; c) There is no other option available to the employer
month pay or at least 1 month pay for every
year
of
c) goodfaithinabolishingtheredundantpositions;and excepttocloseorceaseoperations.
servicewhicheverishigher;
d) fair and reasonable criteria in ascertaining what 5) Disease. — To be a valid ground for termination, the
ii. Retrenchment or
closure
not
due
to
serious
losses
—
positions are to be declared redundant and accordingly followingmustbepresent:
1
month pay
or
at
least
1/2
month
pay
for
every
year
abolished. a) Theemployeemustbesufferingfromanydisease;
ofservicewhicheverishigher;
iii. Closureduetoseriouslosses—NONE. 3) Retrenchment. — or downsizing is
a mode
of
terminating b) The continued employment of the employee is
employment initiated by the employer through no
fault
of
the prohibited by law or
prejudicial to his/her health
iv. CBAprovisionshallprevail.
employee and without prejudice to the latter, resorted to by as well as to the health of his/her co-employees;
e) Fairandreasonablecriteria. management during periods of business recession, industrial and
1) Installation of labor-saving devices. — refers to the depression or seasonal fluctuations or during lulls over
c) There must be
certification by
a competent public
reduction of the number of workers in any workplace made shortageofmaterials.
health authority that the disease is incurable
necessary by the introduction of labor-saving machinery or a) The retrenchment must be reasonably necessary
and within a period of
six
(6)
months even
with proper
devices. likelytop
reventbusinesslosses; medicaltreatment.
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d) As to procedural due process. — The employer must Acostav.MatiereSAS2 019Leonen,J criterion for retrenching an employee. Retrenchment that
furnish the employee two written notices in disregards an employee's record and length of service is an
terminationsduetodisease,namely: In redundancy, an employer must show that it applied fair and
illegalterminationofemployment.
reasonable
criteria
in determining what positions have to be declared
i) the notice to apprise the employee of the redundant. Otherwise, it will be held liable for
illegally
dismissing WON Pascua's
retrenchment was
valid based on the criteria that she
groundforwhichhisdismissalissought;and theemployeeaffectedbytheredundancy. hadthehighestrateofpay.
ii) the notice informing the employee of his WON Acosta
was validly
dismissed
from
employment
on
the
ground NO. Jurisprudence requires that the necessity of retrenchment to
dismissal, to be issued after the employee has ofr edundancy. stave off genuine and significant business losses or reverses be
demonstrated by an employer's independently audited
been given
reasonable opportunity to
answer NO. Respondents' only basis for declaring petitioner's position
redundant was that his function, which was to
monitor the delivery
financial statements. Documents that have not been the subject
andtobeheardonhisdefense.
of
supplies,
became unnecessary upon
completion of the shipments. ofanindependentauditmayverywellbeself-serving.
ManggagawangKomunikasyonsaPilipinasv.PLDT2
017Leonen However, there was no mention of monitoring shipments as part
of The records indicate that La Consolacion suffered serious
business
Anorderofreinstatementisdifferentfromareturn-to-workorder. petitioner's tasks. If his work pertains mainly to the delivery of reverses or an aberrant drop in its revenue and income, thus,
supplies, it should have been specifically stated in his job compellingittoretrenchemployees.
1. The award of reinstatement, including backwages, is description. There was, hence no basis for
respondents to consider
awarded by a Labor Arbiter to an illegally dismissed hispositionirrelevantwhentheshipmentshadbeencompleted. La Consolacion's failure was non-compliance with using fair and
employeepursuanttoArticle294. reasonable criteria that considered the
status
and
seniority of
the
Likewise, respondents failed to show that they used fair and retrenchedemployee.
2. On
the
other hand, a return-to-work order is issued by the reasonable criteria in determining what positions should be
SOLE when he or she assumes jurisdiction over a labor declaredredundant. La Consolacion's disregard of respondent's seniority and preferred
dispute in an industry that is considered indispensable to status relative to a part-time employee indicates its resort to an
thenationalinterest. In Panlilio v.
NLRC, this
Court
held
that
fair
and
reasonable
criteria unfairandunreasonablecriterionforretrenchment.
may take into account the preferred status, efficiency, and
WONthe2002redundancyprogramofPLDTwasvalid. seniorityofemployeestobedismissedduetoredundancy. Employees who
have
earned their
keep by
demonstrating exemplary
performance and securing roles in their respective organizations
YES. To establish good faith, the company must provide substantial cannot be summarily disregarded by nakedly pecuniary
Read-RitePhilsv.Francisco,etal.2
017
proof that the services of the employees are in excess of what is considerations.
required of the company, and that fair and reasonable criteria were Given the diametrical nature of an involuntary and a voluntary
usedtodeterminetheredundantpositions. separation from
service,
one
necessarily excludes the other. For sure,
FujiTelevisionv.Espiritu2
014Leonen,J
PLDT's declaration of redundancy was backed by substantial an employee's termination from service cannot be voluntary
evidence showing a consistent
decline
for
operator-assisted calls for andinvoluntaryatthesametime. There is
no evidence showing that Arlene was accorded due process.
bothlocalandinternationalcallsbecauseofcheaperalternatives. After informing her employer of her lung cancer, she was not
given
FlightAttendantsandStewardsAssociationofthePhils.v.PAL
Aquino v. NLRC differentiated between separation pay and retirement the chance to present medical certificates. Fuji immediately
2018EnBanc concluded that Arlene could no longer perform her duties because of
benefits:
In
determining the
validity
of
a retrenchment, judicial
notice may be chemotherapy. It
did not ask
her how her
condition would affect her
1. Separation pay is required in the cases enumerated in work. Neither did it
suggest for her to take a leave, even though she
taken of the financial losses incurred by an employer undergoing
Articles
283
and 284. We have held that it is a statutory right was entitled to sick leaves. Worse, it
did not present any certificate
corporate rehabilitation. In such a case, the presentation of
audited
designed to provide the employee with the wherewithal from a competent public health authority. What Fuji did was to
financial statements may not be necessary to establish that the
duringtheperiodthatheislookingforanotheremployment. inform her that her contract would no longer be
renewed, and
when
employerissufferingfromseverefinanciallosses.
2. Retirement benefits, where not
mandated by
law,
may
be she did not agree, her salary was withheld. Thus, the Court of Appeals
granted by agreement of the
employees and
their
employer LaConsolacionCollegeofManila,etal.v.Pascua2
018Leonen,J correctly upheld the finding of the NLRC that for failure of Fuji to
or
as
a voluntary
act
on the part of the employer. Retirement complywithdueprocess,Arlenewasillegallydismissed.
When termination of employment
is
occasioned by
retrenchment to
benefits are intended to help the employee enjoy the
prevent losses, an employer must declare a reasonable cause or
remainingyearsofhislife.
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ProceduralDueProcess a. all circumstances involving the charge against the
NO. Respondent was excluded from important HR decisions which
Termination of Employment Based on Just Causes. As defined in employeehavebeenconsidered;and
she
was expected
not
only
to be privy to, but also to have a say in, by
Article
297,
the
requirement
of
two
written notices
served on the b. the grounds have been established to justify the virtueofherpositioninthecompany.
employeeshallobservethefollowing: severanceoftheiremployment. There is constructive dismissal when an employee's functions,
1. Thefirstw
rittennoticeshouldcontain: The foregoing notices shall be served personally to the which were originally supervisory in
nature, were reduced; and such
reduction is
not grounded on valid grounds such as genuine business
a. Thespecificcausesorgroundsfortermination; employeeortotheemployee'slastknownaddress. necessity.
b. Detailed narration
of
the
facts
and
circumstances
that ConstructiveDismissal The reduction in respondent's duties and responsibilities as HR
will serve as basis for the charge against the 1. Occurs when an employee quits because continued Manager amounted to a demotion that was tantamount to
employee. A general
description of the charge will not constructivedismissal.
employment is rendered impossible, unreasonable or
suffice;and unlikely as in the case of an offer
of
demotion
in
rank
and
a The above-cited circumstances indubitably present a hostile and
unbearable working environment that reasonably compelled
c. directive that the employee is given opportunity to
A diminutioninpay.
respondent to leave her employment. Respondent, therefore, was
submit a written explanation within a reasonable 2. The TEST of constructive dismissal is
whether a reasonable constructivelydismissed.
period. person in the position
of
the
EE
would have
felt
compelled to
"Reasonable period" should be construed as a period of at give up his position under the circumstances. It is an act Reliefsfromillegaldismissal
leastfive(5)calendardaysfromreceiptofthenotice. amounting to dismissal but made to appear it is not. It is 1. Effect
or
Consequences of
Dismissal. — An employee who is
thereforead ismissalindisguise. unjustlydismissedfromworkshallbeentitledto
2. After serving the first notice, the employer should afford the
employee ample opportunity to be heard and to 3. Constructive
dismissal
is
distinguished
from illegal dismissal a. reinstatement without loss of seniority rights and other
defend himself with the assistance of his representative if he in that in the latter,
intent
to
dismiss
is
clearly expressed by privilegesandtohis
the ER. In the former however, ER NEVER indicates
that
he
is b. fullbackwages,inclusiveofallowances,andtohis
sodesires.
terminatingtheEE.
"Ample opportunity to be heard" means any meaningful c. otherbenefitsortheirmonetaryequivalent
4. The
unilateral
and
arbitrary
reduction
of
the
work
day scheme
opportunity given to the employee to answer the charges computed from the time his compensation was withheld
that significantly reduced employees’ salaries is a form of
against him and submit evidence in support of his defense, fromhimuptothetimeofhisactualreinstatement.
whether in a hearing, conference or some other fair, just and constructivedismissal.(I ntecCebuv.CA2016)
GR: hen an EE is validly dismissed, NO
W
reasonable way. A formal hearing or conference becomes 5. A college professor that was later appointed as a laboratory
separationpayisgiven.
mandatoryonly custodian, divesting him of his teaching load, was
constructively dismissed. (Divine Word College of Laoag v. EXC: Such cause does not constitute serious
a. whenrequestedbytheemployeeinwritingor misconduct nor reflect on the EE’s moral
Mina2
016)
b. substantial evidentiary disputes exist or a company character, separation pay MAY be validly
DiwaAsiaPublishingetal.v.DeLeon2
018
ruleor awarded. This is the DISCERNING
WON the issuance of communications to
reprimand and/or correct COMPASSIONdoctrine.
c. practicerequiresit,or
an erring employee forms part of the employer's management 2. Reinstatement. — Separation pay is made an alternative
d. whensimilarcircumstancesjustifyit. prerogatives and is not
tantamount
to harassment,
let
alone
illegal
reliefinlieuofreinstatementincertaincircumstances,like:
dismissal.
3. After determining that
termination
of
employment
is
justified,
the employer shall serve the a written
employee notice
of
terminationindicatingthat:
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a. when reinstatement can no longer be effected in view of ByEmployee 1) Retirement has been defined as a withdrawal from office,
the passage of a long period of time or because of the public station, business, occupation, or public duty. It is the
realitiesofthesituation; ARTICLE 300. Termination by Employee. — (a) An employee may result of a bilateral act of the parties,
a voluntary
agreement
terminate without just
cause the employee-employer relationship by between the employer and the employee whereby the latter,
b. reinstatementisinimicaltotheemployer’sinterest;
serving a written
notice on
the employerat
least
one (1) month in after
reaching a certain age, agrees and/or consents to sever his
c. reinstatementisnolongerfeasible; advance. The employer upon whom no
such
notice
was served
may employmentwiththeformer.
d. reinstatement does not serve the best interests of the holdtheemployeeliablefordamages.
partiesinvolved; 2) Under the Labor Code, only unjustly dismissed employees are
(b)
An
employee may put an end to the relationship without serving
entitled to retirement benefits and other privileges including
e. the employer is prejudiced by the workers’ continued anynoticeontheemployerforanyofthefollowingjustcauses:
reinstatement and backwages. Since
petitioner’s dismissal was
employment; for
a just
cause,
he is
not entitled to any retirement benefit. (Sy
a) Serious
insult
by
the
employer
or his representative on the
f. facts that make execution unjust or inequitable have honorandpersonoftheemployee; v.Metrobank)
supervened;or 3) ⭐An employee in the private sector who did not expressly
b) Inhuman and unbearable treatment accorded the
g. strainedrelationsb
etweentheemployerandemployee employeebytheemployerorhisrepresentative; agree to the terms of an early retirement plan cannot be
3. AwardWhenReinstatementnotViable separated from the service before he reaches the age of 65
c) Commission of a crime or
offense
by
the
employer or
his
years. The employer who retires the employee
a. Backwages from date of dismissal until finality of representative against the
person of
the
employee
or
any of
prematurely is guilty of illegal dismissal, and is liable to
decision; theimmediatemembersofhisfamily;and
pay his back wages and to reinstate him without loss of
b. Separation pay from date of employment until finality
of d) Othercausesanalogoustoanyoftheforegoing. seniority and other benefits, unless the employee has
decision(notdateofdismissal); meanwhile reached the mandatory retirement age, in which
c. 10%attorney’sfeesbasedontheawardscomputed;and Doble,Jr.v.ABBInc.2017 case he
is
entitled
to separation pay pursuant
to
the terms of
Constructive dismissal is defined as quitting or cessation of the plan, with legal interest on the backwages and separation
d. Interest on the awards computed from date of finality of
work because continued employment is rendered impossible, pay reckoned from the finality
of
the decision.
(Laya, Jr
v.
CA
decision until they are
paid,
these monetary claims being
unreasonable or
unlikely.
There
is
involuntary
resignation due
to 2018EnBanc)
equivalent to a forbearance
of credit
(Javellana,
Jr
v.
Belen
theharsh,hostile,andunfavorableconditionssetbytheemployer. 4) However, where the employee has been informed and had
2010)
On the other resignation
hand, is the voluntary act of an employee consented, as when in
accepting the
employment offer,
he
has
4. Backwages in general are granted on grounds of equity for
who is in a situation where one believes that personal reasons cannot assented to all existing rules, regulations and policy of the
earnings which a worker or employee has lost due to his illegal be sacrificed in favor of
the
exigency of
the
service,
and one
has
no employer in
the employment contract, and furthermore, he did
dismissal. It is not private compensation or damages but is other choice but to dissociate oneself from employment. It is a not object to the compulsory age of retirement in the
awarded in
furtherance and
effectuation
of the
public objective formal pronouncement or relinquishment of an office, with the
Retirement Plan, he is deemed bound thereto. (Banco de Oro
oftheLaborCode. intention of relinquishing the office accompanied by the act of
relinquishment. Unibankv.Sagaysay2 015)
5. The rule in Bustamante is controlling that the dismissed
5) Jurisprudence is replete with
cases
discussing the employer's
employee is
to
be
paid
backwages for
the
entire
period that he Retirement
prerogative to lower
the
compulsory retirement age subject
to
waswithoutwork,withoutdeductionandwithoutqualification
GR: Employees dismissed for just cause
are
generally
entitled theconsentofitsemployees.
6. The base figure is the wage rate at time of dismissal
duetovestedrights 6) In Pantranco North Express, Inc. v. NLRC, the
Court
upheld
inclusive of
“allowances”, excluding salary increases. Salary
EXC: Where just cause termination proscribes the claim of the retirement of the private respondent
therein pursuant to
a
increases are not akin to allowances or benefits, and
retirementpayascitedinther etirementplan. CBA allowing the employer to compulsorily retire employees
cannotbeconfusedwitheither.(E quitableBankingv.Sadac)
uponcompleting25yearsofservicetothecompany.
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7) In Progressive Development Corporation v. NLRC, the the ground that he was a part-time employee as part-time
dismissal case in
order
to
recover
the
proper benefits
due to him. In
retirement plan, which allowed the employer to retire employees are not among those specifically exempted fact, it is telling that
he
never asked to
be
reinstated as he
only
employees who had rendered more than 20 years of service, under RA No. 7641 or its Implementing Rules. (Dela Salle sought the payment of his retirement benefits. In view of the
was declared valid and enforceable even though it was not AranetaUv.Bernardo2 017) foregoing, respondents must duly pay petitioner not only his
embodied in a CBA. In that case, the
Court concluded that the Catotocanv.LourdesSchoolofQuezonCity2 017 retirementbenefits,butalsohisothermonetaryclaims.
employees, who were hired before the execution of the On this note, case law instructs that in labor cases where the
employer's retirement plan, were bound by it because the RETIREMENT PLAN. Acceptance by the employees of an early
concerned employee is entitled to the wages/benefits prayed for, said
retirement age option must be explicit, voluntary, free, and employee is also entitled to attorney's fees amounting to ten
retirement plan was expressly made known and accepted
uncompelled. percent(10%)ofthetotalmonetaryawardduehim.
bythem.
WON Catotocan's receipt of
her retirement benefits will not stop her
8) In
contrast, the case of Jaculbe v. Silliman University did not
frompursuinganillegaldismissalcomplaintagainstLSQC. 4. RequirementforLabor-onlyContracting
allow the application of a lower retirement age. The petitioner
in the said case was employed sometime in 1958 while the NO. LSQC did not illegally dismiss Catotocan from service. While it a. Elements
may be true that Catotocan was initially opposed to the idea
of
her
retirement plan, which automatically retired its members upon 1) There is "labor-only" contracting where the person
retirement at an age below 60 years, it must be stressed that
reaching the age of 65 or after 35 years of uninterrupted service Catotocan's subsequent actions after her "retirement" are actually supplyingworkerstoanemployer
to
the university, came into being in
1970. The said retirement tantamount to
her consent to
the addendum to the LSQC's retirement a) does not have substantial capital
or
investment
in
plan was not applied to the petitioner because there was no policy of retiring her from service upon serving the school for at
the form of tools, equipment, machineries, work
agreementt owhichthelatterassented. least thirty (30) continuous years. Catotocan performed all the acts to
ratifyherretirementinaccordancewithLSQC'sretirementpolicy. premises,amongothers,and
9) Similarly, the case of Cercado v. UNIPROM Inc., involved a
Catotocan's repeated application and availment of the re-hiring b) the workers recruited and placed by such
person
are
non-contributory retirement plan which provided that any
program of LSQC for qualified retirees for 3 consecutive years is a performing activities which are
directly related to
employee with twenty (20) years of
service, regardless of
age,
supervening event that
would reveal that she has already voluntarily theprincipalbusinessofsuchemployer.
may be retired at his option or at the option of
the
company. and freely signified her consent to
the retirement policy despite her
The said plan was adopted while the petitioner therein was 2) Labor-only contracting, which is totally prohibited,
initialoppositiontoit.
employed earlier. There was no voluntary acquiescence to refersto:
UNIPROM'searlyretirementageoptiononherpart. PALv.Hassaram2 017 a) anarrangementwhere
10) On
the other
hand, in
Obusan v.
PNB, the petitioner, who was The determining factor in choosing which retirement scheme to i) The contractor or subcontractor does not
hired by PNB in 1979, was deemed covered by
its
retirement applyisstills uperiorityintermsofbenefitsprovided. havesubstantialcapital,OR
plan adopted in 2000. Considering that on February 21, 2001, ii) The contractor or subcontractor does not
Barrogav.QuezonCollegesoftheNorth2 018
PNB had informed all of its officers and employees about the have investments in the form of tools,
said retirement plan, the
said
plan was then registered with the While retirement from service is similar to termination of
equipment, machineries, supervision, work
BIR and was later recognized by the Philnabank Employees employment insofar as they are common modes of ending
employment, they are mutually exclusive, with varying juridical premises,amongothers,AND
Association in its CBA. Despite the proper dissemination of
bases and resulting benefits. Retirement from service is iii) The contractor's or subcontractor's
information, no one questioned the retirement plan. Hence,
contractual,whilet erminationofemploymentisstatutory. employees recruited and placed are
the Court deemed it valid and effective as due notice of the
employer's decision to retire an employee was adequately WON the CA correctly ruled that petitioner was not illegally performing activities which are directly
dismissed by respondents, but rather, retired from his employment related to
the
main
business
operation of
provided.
withthelatter. theprincipal;OR
11) ⭐Retirement of Part-time Faculty. Under the rule of
YES. The Court is inclined to hold that petitioner retired from
statutory construction of expressio unius est
exclusio alterius, service, but nonetheless, pursued the filing of the instant illegal
Bernardo's claim for retirement benefits cannot be denied on
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b) The contractor or subcontractor does not exercise 2) the contractor or subcontractor which
has
the
capacity
merelabor-onlycontractorfromarising.
the right to control over the performance of the work to independently undertake the performance of the job,
oftheemployee. workorservice,and The
facts failed to establish that
there is
any
circumvention of
labor
laws as to call for the creation by the statute of an EER between
3) "Substantial capital" — refers to paid-up capital 3) the contractual workers engaged by the contractor or ClassiqueVinylandValencia.
stock/shares at least P5M in the case of corporations, subcontractortoaccomplishthejobworkorservice.
Magoetal.v.SunpowerManufacturingLtd.2
018
partnerships and cooperatives; in the case of single c. Liabilities.—EffectsofLabor-onlyContracting
tleastP5M.
proprietorship,anetworthofa A contractor is presumed to be a labor-only contractor,
unless
the
i. Principal is deemed direct employer of contractor is able to discharge the burden of overcoming this
4) Contracting or subcontracting shall only be ALLOWED if contractor’semployees; presumption.
allthefollowingcircumstancesconcur:
ii. Contractorwillbetreatedasa
gentofprincipal; WONJobcrestisalegitimateandindependentcontractor.
a) The contractor or subcontractor is engaged in a
iii. Principal’s liability is comprehensive — all YES. Since the petitioners do not dispute that Jobcrest was a
distinct and independent business and undertakes
liabilitiesunderlaborlaws,notonlytounpaidwages. duly-registered contractor under Section 11 of DOLE DO No.
to perform the
job
or
work
on
its
own
responsibility, 18-02,
there
is no operative presumption that Jobcrest is a labor-only
accordingtoitsownmannerandmethod; NestlePhilippinesInc.v.Puedan,Jr2
017
contractor.
b) The contractor or subcontractor has substantial WON ODSI
is a labor-only contractor of NPI, and consequently, NPI is Conversely, the fact of registration with DOLE does not
necessarily
capital to carry out the job farmed out by the principal respondents' true employer and, thus, deemed jointly and
severally create a presumption that Jobcrest is a legitimate and independent
liablewithODSIforrespondents'monetaryclaims. contractor. The petitioners must overcome the presumption of
on
his
account, manner and method, investment in the
NO. A closer examination of the Distributorship Agreement reveals regularityaccordedtotheofficialactofDOLE.
formoftools,equipment,machineryandsupervision;
that
the
relationship of
NPI
and
ODSI is
not
that
of
a principal
and
a Jobcresthassubstantialcapital.
c) In performing the work farmed
out,
the
contractor
or contractor,butthatofasellerandabuyer/re-seller.
subcontractor is free from the control and/or Jobcrest had substantial capital to perform the business process
The stipulations in the
Distributorship Agreement do
not operate to services it provided Sunpower. It has its own office, to which the
direction of the principal in all matters connected control or fix
the
methodology on how
ODSI should
do its
business petitioners admittedly reported to, possessed numerous assets for
with the performance of the work except as to the as
a distributor of
NPI
products, but merely provide rules of conduct the
conduct of
its
business,
and
even continuously earned profit as a
resultthereto;and or guidelines towards the achievement of a mutually desired result result.
—whichinthiscaseisthesaleofNPIproductstotheendconsumer.
d) The Service Agreement ensures compliance with Sunpowerdoesnotcontrolthemannerbywhichthepetitioners
all
the
rights
and
benefits
for
all
the
employees
of the Thus,
the
foregoing
circumstances
show
that
ODSI
was
not
a labor accomplishedtheirwork.
onlycontractorofNPI.
contractororsubcontractorunderthelaborlaws. The fact that the petitioners were working within the premises of
b. Trilateral relationship. — In legitimate contracting, there Valenciav.ClassiqueVinylProductsCorp2
017 Sunpower, by itself, does not negate Jobcrest's control over the
means, method, and result of
the petitioners' work. The
petitioners,
exists a trilateral relationship under which there is
a contract WONValenciaisanemployeeofCMSandnotClassiqueVinyl. despite working in
Sunpower's plant
for
most of the time, admit that
for a specific job, work or service between the principal and the whenever they file their leave application, or
whenever required by
YES. Valencia's selection and engagement was undertaken by CMS
contractor or subcontractor, and a contract of employment their supervisors in Jobcrest, they report to the Jobcrest office.
and
conversely,
this negates
the
existence
of
such
element insofar as
between the contractor or subcontractor and its workers. ClassiqueVinylisconcerned. Designated on-site supervisors from Jobcrest were the ones who
Hence,therearethreepartiesinvolvedinthesearrangements, oversaw the performance of the employees' work within the
Here, Classique Vinyl presented the CMS’s
Certificate
of
Registration premisesofSunpower.
1) the
principal
which
decides to farm out a job or service to with the DTI and license as a private recruitment and placement
acontractororsubcontractor, agency from the DOLE. Indeed, these documents are
not
conclusive Abudaetal.v.L.NatividadPoultryFarms2
018Leonen,J
evidence of the status of
CMS as a contractor. However, such
fact
of
registration of CMS prevented the legal presumption of it being a WON the maintenance
personnel
in
L.
Natividad
Poultry
Farms
can
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beconsideredasitsregularemployees.
WONpetitionerswereregularemployeesofCCBPI. ✔T hoseemployedin ✘ EEs of GOCCs under Special
YES. San Mateo and petitioner Del Remedios were not independent commercial,industrialand charters;
YES. Petitioners' duties were reasonably connected to the very
contractors but labor-only contractors since they did not have business of CCBPI. They were indispensable to such business
substantial investment in the form of tools, equipment, or work agriculturalenterprises; ✘ManagerialEEs;
because without them the products of CCBPI would not reach its
premises. As labor-only contractors, they were considered to be
customers. ✔EEsofGOCCsWITHOUT ★ They are those who are
agentsofL.Natividad.
In Pacquing v. Coca-Cola Philippines, Inc., the Court ruled that the originalcharters(CorpoCode); vested with powers or
Phil.PizzaInc.v.Porras2
018 sales route
helpers of
CCBPI
were
its regular employees. In this case, ✔EEsofreligious,charitable, prerogatives to lay down and
petitioners had similarly undertook to
bring CCBPI's
products to
its execute management
Although not a conclusive proof of legitimacy, the certification by the customersattheirdeliverypoints. medicaloreducational
DOLE nonetheless prevents the presumption of labor-only institutions,forprofitornot; policies and/or hire,
contracting from arising. It gives rise to a disputable presumption WON MDTC is an independent contractor and employers of transfer, suspend, lay-off,
thatthecontractor'soperationsarelegitimate. petitioners. ✔AlienEEs recall, discharge, assign or
CBMI is a legitimate job contractor, and consequently, the NO. CCBPI's
contention
that
MDTC was
a legitimate
labor
contractor 1. Workinginthecountry; disciplineemployees.
employer of respondents. CBMI retained control over andwastheactualemployerofpetitionersdoesnotholdwater.
2. Withvalidworkingpermits ★ Supervisory EEs are
respondents, as shown by the
deployment of
at
least
one
(1)
CBMI
issuedbyDOLE; RELATIVELY prohibited in
supervisor in each Pizza Hut branch to regularly oversee, monitor, 5. RightsofEmployeesandofLaborOrganizations;
and supervise the employees' attendance and performance. that they are not allowed to
Respondents applied for work with CBMI and were consequently
MembershipinUnions 3. Nationalsofcountries
grantingsamerightsto join unions of rank and file
selectedandhiredbythelatter.
ARTICLE 253.
Coverage and Employees' Right to
Self-Organization. Filipinoworkers by virtue of separation of
LingnamRestaurantv.Skills&TalentEmployment2
018 — All persons employed in commercial, industrial and
agricultural (RECIPROCITYrule);and unionsdoctrine.
The
legitimate job contractor provides services, while the labor-only enterprises and in religious, charitable, medical, or educational 4. Countryoforiginhasratified ✘ConfidentialEEs
contractor provides only manpower. The legitimate job contractor institutions, whether operating for profit or
not,
shall
have
the
right
ILO87and98ascertifiedby ✘MembersofaCooperative;
undertakes to perform a specific job for the principal employer, to
self-organization and
to
form, join, or assist labor organizations of
DFA.
while the labor-only contractor merely provides the personnel to theirownchoosingforpurposesofcollectivebargaining. ★ Owners cannot
bargain
with
workfortheprincipalemployer.
Ambulant, intermittent and itinerant
workers, self-employed people, ✔AllotherworkersFORmutual themselves.
WONSTEPisengagedinlabor-onlycontracting. rural workers and those without any definite employers may form aidandprotectionandNOTfor
collectivebargaining;
✘ Members of International
YES. STEP merely acted as a placement agency providing manpower labororganizationsf ortheirmutualaidandprotection.
Orgs;
to Lingnam Restaurant. The service rendered by STEP in favor of
✔Securityguards;
Lingnam Restaurant was not the performance of a specific job, but the ★ By doctrine of
supplyofpersonnel. ARTICLE 254. Right of Employees in the Public Service. — ✔WorkersinEPZs. incorporation, they are
Employees of government corporations established under the immunefromsuit.
Lingatv.Coca-ColaBottlersPhils,Inc.2
018 Corporation Code shall have the right to organize and to bargain
To determine whether one is an independent contractor, the collectively with their
respective employers. All
other
employees in Doctrineofnecessaryimplication
possession of
substantial capital
is
only one element. It is necessary the civil service shall have the right to form associations for 1) Confidential employees, by Doctrine of Necessary
to prove not only substantial capital or investment in tools, purposesnotcontrarytolaw. Implication, are also disqualified for union membership. They
equipment, work premises, among
others, but ALSO that the work of
arethosewho
the employee is directly related to the work that contractor is Whomayormaynotexercisetheright
requiredtoperformfortheprincipal. a) assistoractinaconfidentialcapacityinregard
Qualified Disqualified
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b) to persons who formulate, determine, and effectuate 4) RightsoverM
ONEYmatters; individual written authorization if the non-union employees
management policies, specifically in the field of labor Non-abridgmentofrighttoself-organization acceptthebenefitsundertheCBA.
relations. 3. The union’s right to agency fees is neither contractual nor
GR: he right of any person to join an organization also
T
2) Forthedisqualificationtoapply statutorybutq
uasi-contractual.
includes the right to leave that organization and join
a) He must be in a fiduciary relationship with another to anotherone. 4. Requisites for validity of union dues and special
whomhereportsorwhomheassists; assessments
EXC: The right to refrain from joining labor organizations is,
b) The latter possesses labor-management relations however,
limited.
It
is
withdrawn by
operation
of law, a. Authorization by
a written
resolution
of the majority of all
information;and wherethepartieshaveagreedonac losedshop. the
members at
a general membership meeting duly called
c) He has access to that information by reason of his EXCTOTHEEXC forthepurpose;
position.
1. Members of the religious sect which prohibit b. Secretary’srecordoftheminutesofsaidmeeting;
3) ThedisqualificationwillNOTapplyif
affiliation
of
their members in such labor organization c. Individual written authorization (IWA) for check-off duly
a) Theinformationisbusinessinformation;and (1974Basa); signedbytheemployeesconcerned.
b) The information may be labor-management relations in 2. Employees
who are already members of another union 5. WhennottorequireIWA
naturebuttheemployee’saccesstheretoisaccidentalonly. atthetimeofthesigningoftheCBA(Art248[e]);
a. Assessmentfromnon-membersofSEBAofa
gencyfees;
a. Comminglingormixtureofmembership 3. Confidential employees who are excluded from the
b. Deductions for fees from mandatory activities such as
1) Mixed-membership is NOT a ground for the cancellation of bargainingunit(2
010BankofPhilIslands);
laborrelationsseminars;
a union’s certificate of registration. The grounds are 4. Employees excluded by express terms of the
limitedtothefollowing: c. Withholdingtax;
agreement.
a) FraudintheratificationofConstitutionandBylaws; d. EE’sdebttoERwhichisalreadydueanddemandable;
ARTICLE 113. Wage Deduction. — No employer, in
his
own
behalf
b) Fraudinelectionofofficers; e. Judgment
against
the
worker where wages may be subject
or
in behalf
of
any
person, shall
make any deduction from the wages
of attachment
or
execution but
only
for
debts
incurred
for
c) Voluntarydissolution ofhisemployees,e xcept:
xxxx food,clothing,shelter,andmedicalattendance.
i) By⅔
ofmembers;
(b) For u
nion dues, in cases
where the
right
of
the
worker
or
his f. Viacourtorder;
ii) Inameetingcalledforthepurpose;
union to check-off has been recognized by the employer or g. Authorized
by
law
such
aspremiums
for
SSS, PhilHealth,
iii) An application to cancel submitted by the board authorizedinwritingbytheindividualworkerconcerned; Pag-ibig.
attestedtobythepresident;
iv) Filed in the RO which issued the Certificate of 1. TheremaybesomeS
PECIALASSESSMENTS: 6. ManagementPrerogative
Registration. a. Authorized by a written resolution of majority of all Transferoremployees
members;AND
b. Rightsandconditionsofmembership 1) The lateral movement from one position to another of
b. Purposeisstated.
1) POLITICALR
ights—5
YEARtermforofficers. equivalentrank,levelorsalary.Couldbeamovement:
2. Union Dues vs. Agency Fees. — Assessment of
agency
fees
2) RighttoI NFORMATION; a) Fromonep
ositiontoanother;or
from non-union employees and deduction thereof from the
3) DeliberativeandDecision-MakingRight; employees’ salaries (Art. 248 [e]) even in the absence of b) From one office to
another
within
the
same
business
establishment.
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2) This is an inherent right to control or manage by the ER. b) Additionalexpenses; order of
management. Verily, the
right of
the employee to security of
ConsentofEEN OTrequired. tenure does not give her
a vested right
to her position
as
to
deprive
c) Inconvenience; management of its authority to transfer or re-assign her where she
3) This is
exercised by
the
ER
in
the
best interest of the company willbemostuseful.
d) Hardshipandanguish.
to see where a particular EE can be best maximized. For a
transfer to be valid, the following REQUISITES must be Pecksonv.RobinsonsSupermarket2 013 Changeofworkinghours
observed: Concerning the transfer of employees, these are the following CCBPIv.IloiloCoca-ColaPlantEmployeesUnion2
018
jurisprudentialguidelines:
a) Mustber easonableo rhaveasoundpurpose; WON scheduling Saturday work has ripened into a company
a) a transfer is a movement from one position to another of practice,theremovalofwhichconstitutedadiminutionofbenefits.
b) Mustn otinconvenientt hewelfareoftheEE; equivalent rank, level
or
salary
without
break
in the service
or a lateral movement from one position to another of NO. In Royal Plant
Workers Union v.
Coca-Cola Bottlers Philippines,
c) Notp rejudicialtotheEE; equivalentrankorsalary; Inc.-Cebu Plant, the Court had the occasion to rule that the term
"benefits" mentioned in the non-diminution rule refers to
d) Noti nvolvead
emotionofrankorstatus; b) the
employer
has the inherent right to transfer or reassign an
monetary benefits or privileges given to the employee with
employeeforlegitimatebusinesspurposes;
e) Notbemotivatedbyd
iscrimination; monetary equivalents. Stated otherwise, the employee benefits
c) a transfer becomes unlawful where it is motivated by contemplated by Article 100 are those which
are capable of
being
f) Notmadeinbadfaith; discrimination or bad faith or is effected as a form of measuredintermsofmoney.
punishmentorisademotionwithoutsufficientcause;
g) Not be effected as a form of punishment without CCBPI withdrew the Saturday work itself,
pursuant, as
already
held,
d) the employer must be able to show that
the
transfer
is
not to its management prerogative. In fact, this management
sufficientcause. unreasonable,inconvenient,orprejudicialtotheemployee prerogative highlights the fact that the scheduling of the Saturday
4) Failure to observe these requisites, the transfer is deemed work was actually
made subject to a condition, i.e., the prerogative to
ChateauRoyaleSports&CountryClubv.Balba,etal.2
017
CONSTRUCTIVE DISMISSAL. Same reliefs as that of illegal provide the company's
employees with Saturday work based on the
The burden
of
proof
lies
in
the
employer prove that the transfer
to existenceofoperationalnecessity.
demotion.
of
the
employee from one area of operation to another was for a valid In the case at bar, CCBPI's employees were not illegally prevented
5) An EE who refuses to be transferred when such is valid, is andlegitimateground,likegenuinebusinessnecessity. from working on Saturdays. The company was
simply exercising
guilty of insubordination or willful disobedience of a lawful The right of the employee to security of tenure does
not
give
her
a its option not to schedule work pursuant to the CBA provision
orderofanERunderA rt297[282]oftheLC. vested right
to her position as to deprive management of its authority which gave it the prerogative to do so. It therefore follows that
the
totransferorre-assignherwhereshewillbemostuseful. principleof"nowork,nopay"findsapplicationintheinstantcase.
6) Refusalt obetransferredisV
ALIDi nthefollowingcases
WON the
transfer
of
respondents
to
petitioner's
Manila
office
was
a Bonafideoccupationalqualifications
a) Overseasassignment; validexerciseofmanagementprerogative.
1) To
be
considered
a bona fide occupational qualification, the
b) Consequenttop
romotion; YES. The transfer could not be validly assailed as a form of
policymust
constructive dismissal, for, as held in Benguet Electric Cooperative
This is a scalar transfer. The
EE
may
refuse
as
this v. Fianza, management had the prerogative to determine the place a) Servealegitimatebusinesspurpose;
entailsadditionalresponsibilities. where the
employee is
best qualified to serve the interests of the
b) Bespecifictotheoccupationatissue;and
business given the qualifications, training and performance of the
c) Toavoidconflictofinterest;
affectedemployee. c) Reflect an inherent quality that would reasonably
d) Occasionedbytheabolitionoftheposition. According to Abbot Laboratories (Phils.), Inc. v. NLRC, the guaranteeworkefficiency.
employee who has consented to
the company's policy of hiring sales 2) Employment
may
not
be
limited
to
persons of a particular sex,
7) Refusali sI NVALID
staff willing
to
be assigned anywhere in the Philippines as demanded
religion,
or
national
origin
unless
the
employer
cas
show
that
a) Duetoparentalobligations; by the employer's business has no reason to disobey the transfer
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such
qualifications
are
necessary in
the performance of the job b) Disparate Impact — Plaintiff must prove that a License refers to the document issued by the SOLE authorizing a
involved.E
xceptionst oBFOQ: facially neutral policy
has
a disproportionate effect on person, partnership or corporation to operate a private
a) Employment qualification is reasonably related to apartoftheclass. recruitment/manningagency.
theessentialoperationofthejobinvolved;and DuncanAssoc.ofDetailman-PTGWOv.GlaxoWellcomePhils. Any
recruitment activities,
including
the
prohibited practices, to be
b) There is a factual basis for believing that all or undertaken by non-licensees or non-holders of authority shall be
No reversible error can be ascribed
to
the
Court
of
Appeals
when it
substantially all persons meeting the qualification ruled that Glaxo’s policy prohibiting an employee from having a deemedi llegal.
would be
unable
to
properly
perform the duties of the relationship with an employee of a competitor company is a valid Thecharacteristicsofarecruitmentlicenseare:
exerciseofmanagementprerogative.
job. 1) Itisplace-specific;
Glaxo has a right
to
guard
its
trade
secrets,
manufacturing formulas,
Post-employmentrestrictions marketing strategies and other confidential programs and 2) Itisperson-specific;and
1) An
EE
is
prohibited
after
separation
from
joining
a competitor. information from competitors, especially so that it and Astra are rival 3) Itisprospective.
companiesinthehighlycompetitivepharmaceuticalindustry.
VALID,subjecttolimitationsastodurationandplace.
1. Elements
2) Restrictive covenant clauses. — In
determining whether
the Coca-ColaBottlersPhilsInc.v.CCBPIStaRosaPlantEmployees
a) Essential Element. Presupposes deceit or
contract is reasonable or not, the following factors
should
be Union2
019
misrepresentation.
considered: The employer does not have the prerogative to impose other
i) Withoutbeingdulyauthorized;
a) whether
the
covenant
protects
a legitimate
business conditions on the amount of loan to be taken which does
not
involveitsdutytocollectandremitamortizations. ii) Gave distinct impression that he had power or
interestoftheemployer;
abilitytodeployworkers;
b) whether the covenant creates an undue burden on In carrying out the 50% cap policy, petitioner effectively limits its
employees on
the
utilization of their salaries when it is apparent that iii) Complainants were convinced to part with their
theemployee;
as long as the employee is qualified to avail the
same, he/she
may moneybysuchimpression;1
c) whether the covenant is injurious to the public apply for an SSS loan. This is in contravention with the
iv) There must be at least a promise or offer of
welfare; prohibition on interfering with the disposal of wages under
employment.2
Article112oftheLaborCode.
d) whether the
time
and
territorial
limitations
contained b) Recruitment and Placement;
Presumption. Where a fee
inthecovenantarer easonable;and 7. IllegalRecruitmentofOFWs is collected in consideration of a promise or offer of
e) whether the restraint is reasonable from the employmenttot woormoreprospectiveworkers.
Any
act
of
canvassing, enlisting, contracting, transporting, utilizing,
standpointofp
ublicpolicy. c) Additionalelements
hiring, or procuring workers and includes referring, contract
Marriagebetweenemployeesofcompetitor-employers services, promising or advertising for employment abroad, i) by
For syndicated. — committed three or more
whether for
profit
or not, when undertaken by a non-licensee persons conspiring and confederating with one
1) A
policy
prohibiting spouses from being employed in the same another.(P
eoplev.Hashim2012)
ornon-holderofauthority.
company. There must be compelling business necessity for ii) For large scale.
— committed against three or
which no alternative exists other than the discriminatory Authority refers to a document issued by the SOLE authorizing the
more persons,
individually
or
as a group. (People
practiceforittobeVALID. officers, personnel, agents or representatives of a licensed
v.Tuguinay2012)
recruitment/manning agency to conduct recruitment and
2) TheoriesonEmploymentDiscrimination
placement activities
in
a place stated in the license or in a specified
a) Disparate
Treatment — Plaintiff
must
prove
that an place.
employmentpolicyisdiscriminatingonitsface; 1
eoplev.Goce,GRNo113161,August29,1995
P
2
D
arvinv.CAandPeople,GRNo125044,July13,1998
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2. Types ExercisedbySOLEoranyofhis RDoranydulyauthorized
3. SOLE may order
stoppage
of
work or suspension of operations
dulyauthorizedrepresentatives, hearingofficerofDOLE ofunitordepartmentconcerned;
a) One is simple illegal recruitment committed by a
licenseeorholderofauthority. i.e.theRD 4. Within 24 hours, a hearing shall be conducted to determine
b) Any person “who is neither a licensee nor a holder of whethersaidstoppageordershallbeliftedornot.
AppealabletoSOLE,thentoCA AppealabletoNLRC
authority”commitsthesecondtypeofillegalrecruitment. a. If violation is attributable to ER, he shall pay the
c) Large scale or Qualified. — The third type of illegal RecoveryofWagesandSimpleMoneyClaims wages of EEs during the period of stoppage or
suspensionofoperations.
recruitment refers to offenders who either commit the 1. Requisites:
offense alone or with another person against three or b. Suspensionshouldnotexceed6
months.
a. Claimantisanemployeeordomesticworker;
morepersonsindividuallyorasagroup. 5. see RA 11058, Strengthening Compliance with
b. ClaimdoesnotexceedP5K;
d) Syndicated —A syndicate or a group of three or
more OccupationalSafety&HealthStandards;
persons conspiring and
confederating with one
another in c. Noclaimofreinstatement;
6. SEC. 23. Payment of Workers During Work Stoppage Due to
carrying out
the act
circumscribed by the law commits the d. ClaimarosefromER-EErelationship. Imminent Danger. — If stoppage of work due to imminent
fourth type of illegal recruitment by the law. (People v. 2. Employeefilesap
ro-formacomplaintwiththeRD; danger occurs as a result of the employer's violation or
Sadiosa) fault, the employer shall pay the workers concerned their
3. RDdocketsthecomplaintass implemoneyclaim;
Under RA 8042, the third and fourth types herein are wages during the period of such stoppage of work or
4. RD issues summons served upon employer as respondent, suspensionofoperations.
consideredIllegalRecruitmentasEconomicSabotage.
togetherwiththecopyofcomplaint;
7. In National Mines and Allied Workers Union v. Marcopper
8. RemediesforLaborStandardsViolation 5. ERisgiven5
calendardaystoanswer; Mining, if the suspension of operations was ordered by a
6. Afterreceivingtheanswer,RDcallsforas ummaryhearing; government agency other
than the DOLE, the general "no work,
VisitorialandEnforcement
SimpleMoneyClaim 7. RD
decides
within 30 calendar days from date of filing of the no pay" rule should prevail with respect to employees' wages
Power
complaint; during the
suspension period,
subject to existing CBA terms on
Art128 Art129 leavecreditsandsimilarbenefitsofemployees.
8. ER may appeal with the NLRC within 5 calendar days from
8. DOLE D.O. No. 198, S. 2018, distinguished from Bona fide
Policepower-Inspectionand Quasi-judicial-Adjudication receiptofdecision.Appealmustbewithcashorsecuritybond.
suspensionofoperations(Art301).
issuanceoforderstocompel throughsummaryproceedings 9. ERmaythefileMRfromanadversedecisionoftheNLRC;
compliance ClosureofBusinessunderRA9231
10. Petition for
Certiorari
under
Rule
65 to the CA not later than 60
Enforcementoflaborlegislation Monetaryclaimswhichonly daysfromnotice; DOLEDC03-09
ingeneral involvelaborstandardslaw 11. Appeal by certiorari under Rule 45 to the SC within 15
days SOLE or RD may
order
closure
of
business
found to
have
violated
fromnoticeonp urequestionsoflaw. anyprovisionsofRA9231m orethan3times.
Offshootsofinspectionsdoneby Sworncomplaintsbyinterested
laborofficersorsafetyengineers party EnforcementPoweronHealthandSafetyofWorkers GR: Prior notice and hearing is required before issuance of
suchClosureOrder,unless:
Involvesemployeesstillin Presentorpastemployeesatthe 1. AninspectionismadeviaArt128;
service timeofcomplaintprovidedthere EX:
isnodemandforreinstatement 2. Non-compliance was discovered that poses grave and
a. Violation resulted to death, insanity, or serious physical
imminent danger to the health and safety of
workers
in
injurytoachildemployed;
Nomaximummonetaryamount Claimperclaimantnottoexceed theworkplace.
P5K b. Prostitutionorobsceneorlewdshows;or
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c. Thereisimminentdangerinthelifeandlimbofachild. 8.Compliancerequirements mask to exact funds from the public when its true intent
is
to
give
Under any
such
circumstance,
SOLE or RD must, within 5 working undue benefit and advantage to
a private
enterprise, that law will not
Donor’sTax
satisfytherequirementof“publicpurpose.”
daysfromreceiptofcomplaint,orderimmediateclosure.
1.BasicPrinciples,Concept,andDefinition
A
close-now-hear-later
process
is to be adhered to, which shall be The purpose of
a law is
evident from its
text
or
inferable
from other
summaryinnature. 2.RequisitesofaValidDonation secondary sources. Here, the
levy imposed under LOI
No.
1465
was
notforapublicpurpose.
3.Transferswhichmaybeconsideredasdonation
DAY1|AMTaxationLaw RequisitesofaValidTaxpayer’sSuit
4.ClassificationofDonor
1. The
tax
money
is
being
extracted
and
spent
in violation of
BasicPrinciplesintheConstitution 5.DeterminationofGrossGift specific constitutional protection against abuses of
IncomeTax legislativepower;
6.Taxcreditfordonor'staxespaidtoaforeigncountry
2. Publicmoneyisbeingdeflectedtoanyimproperpurpose;
1.Definition,Nature,andGeneralPrinciples 7.Filingofreturnandpayment
3. Petitioner seeks to restrain wastage of public funds
2.ConceptofIncome Remedies throughenforcementofaninvalidlaw.
3.GrossIncome JurisdictionofCourts ImportantConceptsRegardingTaxpayer’sSuit
4.Deductions 1. Thepublicfundsmustbederivedfromtaxation;
Prescription
2. Does not apply to donations and contributions made by
5.IncomeTaxonIndividuals AgainstAssessmentNotices publicindividualsorprivateentities;
6.IncomeTaxonCorporations 3. Taxpayer
is
not
relieved
from the
obligation to pay tax just
1. BasicPrinciplesintheConstitution
7.FilingofReturnsandPayment becauseofhisbeliefthatitisbeingmisappropriated;
INHERENTLIMITATIONS
4. A
taxpayer
has
no
legal
standing to question acts which do
8.WithholdingTax
1) Public Purpose. — has now evolved to include social notinvolvetheuseofpublicfunds.
VAT justice. 2) ExemptionfromtaxationofGovernmententities
1.NatureandcharacteristicsofVAT Determinationthatthetaxisforpublicpurpose Refersonlytorealpropertytax.
2.PersonsliabletoVAT a. Used for the support of the government, specifically GR: Agencies and instrumentalities of the government
onitsgovernmentalfunctions; performing governmental functions are tax
exempt.
If
3.ImpositionofVAT
b. Foranyoftherecognizedobjectsofthegovernment; performingproprietaryfunctions,taxable.
4. Zero-rated and effectively zero-rated sales of goods or c. Promotesthewelfareofthecommunity. EXC: Even if performing proprietary functions, if the
properties,andservices franchise or law creating them exempts them — tax
d. Public purpose is determined at the time of the
exempt.
Zero-ratedsale enactment of the tax law and not
at
the
time
of
its
implementation. IftaxingauthorityisLGU
5.VAT-exempttransactions a. TAX EXEMPT — GOCCs with original charter; attached
PlantersProducts,Inc.v.Fertiphil
6.Inputandoutputtax tothegovernment;unincorporated;
Public
purpose
is
the
heart
of
a tax
law. When
a tax
law is only a ExemptfromIncomeTax
7.Refundortaxcreditofexcessinputtax;procedure
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1. GSIS 12% rate upon the existence of any of the conditions specified by SouthernCrossCementCorporationv.CMAP
2. SSS Congress. This is a duty which cannot be evaded by the
President.
There is no undue delegation of legislative power but only of the The Court recognizes that the authority delegated to the President
3. PHIC discretion as to the execution of a law. This is constitutionally under Section 28(2), Article VI may be exercised, in accordance
4. PCSO permissible. with legislative
sanction, by the alter
egos of
the
President, such
5. PAGCOR (but not exempted from business asdepartmentsecretaries.
DelegationtoLGU
tax) Only provinces and cities are allowed to impose a tax on the There is only one viable ground for challenging the legality of the
b. TAXABLE — GOCCs with special
charter;
personality transferofownershipofrealproperty. limitations and restrictions imposed by Congress under Section
distinctfromthegovernment;incorporated 28(2) Article VI,
and that
is
such limitations and restrictions are
NPCv.CityofCabanatuan themselves violative of the Constitution. Thus, no matter how
3) Non-delegation distasteful or noxious these limitations and restrictions may
seem,
The power to tax is
no
longer
vested
exclusively
on
Congress; local the Court has no choice but to uphold their validity unless their
Matterswhichcannotbedelegated
legislative bodies are now given direct
authority to
levy taxes, constitutionalinfirmitycanbedemonstrated.
1. Natureoftaxation; fees and other charges pursuant to Art X Sec 5 of the 1987
Constitution. 4) InternationalComity
2. Objectandpurpose;
1. Doctrine of sovereign equality among states — as
3. Subjectorcoverage; To
determine whether
the
petitioner
is
covered
by the franchise tax
inquestion,thefollowingrequisitesshouldconcur: between equals, there is no sovereign. One state cannot
4. Amountorrateoftax; exerciseitssovereignpowersoveranother.
1) that
petitioner
has
a “franchise”
in the sense of a secondary 2. Non-suability of States — under international law, a
5. Manner,meansandagenciesofcollection;
orspecialfranchise;and
foreign government may not be sued without its
consent.
6. Situs. 2) that it is exercising its rights or privileges under t his Hence, it is useless to impose a tax which could not be
franchise within the territory of the respondent city
AbakadaGuroPartyListv.Ermita collected.
government.
3. Usage among states — when a foreign sovereign enters
The general
rule
barring
delegation of legislative powers is subject to Fulfilling
both requisites,
petitioner is, and ought to be, subject of the the territorial jurisdiction of another, there is an implied
thefollowingrecognizedlimitationsore xceptions: franchise tax in question. To stress, a franchise tax is imposed understanding that the former does not intend to
degrade
1) Delegation of
tariff
powers to the President under Section 28 based not on the ownership but on the exercise by the
its dignity by placing itself under the jurisdiction of
(2)ofArticleVIoftheConstitution; corporationofaprivilegetodobusiness.
another.
2) Delegation of emergency powers to the President under DelegationtothePresident
Section23(2)ofArticleVIoftheConstitution; 5) Situs
The authority of the President, upon the recommendation of NEDA,
3) Delegationtothepeopleatlarge; GR: axation may be exercised only within the
T territorial
to fix tariff rates, import and
export
quotas,
tonnage
and
wharfage
4) Delegationtolocalgovernments;and jurisdictionofthetaxingauthority.
dues, and other duties or imposts. [Sec 28(2) Art VI, 1987
5) Delegationtoadministrativebodies. Constitution] EXC: Whereprivityofrelationshipexists.
The
case
before the Court is not a delegation of legislative power. It is DelegationtoAdministrativeBodies
DIRECTCONSTITUTIONALLIMITATIONS
simply a delegation of ascertainment of facts upon which 1. Powertovaluepropertyforpurposesoftaxation;
enforcement and
administration of
the
increase rate
under
the law is 1. RevenuebillmustoriginateexclusivelyintheHouseof
contingent. 2. Powertoassessandcollecttaxes;
RepresentativesbuttheSenatemaypropose
3. Power to perform
an
innumerable
details
of
computation,
It
is
the ministerial duty of the President to immediately impose the amendments.(Sec24(4)ArtVI)
appraisalandadjustment.
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ItisnotthestatutethatmustoriginateintheHREPbutthebill. 6. Exemptionofnon-stock,non-profiteducational
Uniformity in taxation means that all taxable articles or kinds of
property of the same class shall
be
taxed
at
the
same
rate.
Different institutionsfromtaxation
AbakadaGuroPartyListv.Ermita articles may be taxed at different amounts provided that
the
rate
is a. Covers income, property, and donor‘s taxes, custom
uniformonthesameclasseverywherewithallpeopleatalltimes. duties, and other taxes imposed by
either
or
both the
Article VI, Section 24 of the Constitution does not contain any
prohibition or limitation on the extent
of
the
amendments that
may national government or
political
subdivisions on
ALL
In this case, the tax law
is
uniform
as
it
provides
a standard
rate
of
beintroducedbytheSenatetotheHouserevenuebill. 0% or 10% (or 12%) on all goods and services. The rule of uniform revenues, assets, property or donations, used actually,
taxation does not deprive Congress of the power to classify directlyandexclusivelyforeducationalpurposes.
Likewise, the Court finds the sections referring to other
percentage subjects of taxation, and only demands uniformity within the b. Does not
cover
revenues derived
from, or
assets used
and excise taxes germane to the reforms to the VAT system, as particularclass.
thesesectionswouldcushiontheeffectsofVATonconsumers. in,unrelateda ctivitiesorenterprise.
Taxation is progressive when its rate goes up depending on the c. Lands, buildings,
and
improvements actually, directly
2. ConcurrenceofamajorityofallthemembersofCongress resources of the person affected. The VAT is an antithesis of and exclusively used for educational purposes are
forthepassageofalawgrantingtaxexemption( Sec28(4) progressivetaxation.Byitsverynature,itisregressive. exempt from
property tax
(Sec
28
(3)
Art VI), whether
ArtVI) theeducationalinstitutionisproprietaryornon-profit.
Nevertheless, the Constitution does not really prohibit the imposition
Votesrequired of indirect taxes, like the VAT. What it simply provides is that d. Thetestisu
sageandnotownership.
a. For the
GRANT
of tax exemption — absolute majority Congressshall"e volveaprogressivesystemoftaxation."
e. Similar
tax exemptions may be extended to proprietary
of
the members of Congress
(50+1
of all the members educational institutions by law subject to such
5. Exemptionofreligious,charitableandeducational
votingseparately) limitations as it may provide, including restrictions
entities,nonprofitcemeteries,andchurchesfrom
b. For WITHDRAWAL of tax exemption — relative propertytaxation(Sec28(3)ArtVI) ondividendsandprovisionsforreinvestment.
majorityormajorityofthequorum. Requisitesfortheapplicationofthe1
0%preferentialrate:
ImportantPrinciples
3. Ruleofuniformityandequityintaxation 1. Itmustbeprivate;
a. The tax exemption of religious, charitable and
ValidClassification educational institutions covers real property tax 2. Ithaspermittooperateasaneducationalinstitution;
a. It is based upon substantial distinctions which only. 3. Itisnon-profit;AND
makerealdifferences; b. The test is usage and not ownership. — Actual, 4. Its gross income from unrelated trade or business
b. These are germane to the purpose of
the
legislation direct, and exclusive use
for religious, charitable and must not
exceed
50% of
its
total
gross
income from
orordinance; educationalpurposes. allsources,
c. Applies, not only to present conditions, but, also, to c. The exemption extends to facilities which a re otherwise, it will
be
subject
to
the
30%
corporate
income
tax
future conditions substantially identical to those of incidental to or reasonably necessary for the rate.
thepresent; accomplishmentofsaidpurpose.
The10%preferentialtaxrated
oesnotapplyt othefollowing:
d. Applies equally to all those who
belong
to
the
same Scope of exemption. Real property taxes on facilities which
a. The passive income derived by the educational
class. are:
institution, which is subject to final income tax, i.e.
4. Progressivesystemoftaxation a. Actual; rentincomeorinterestinincome;
b. Incidental; b. Engaged in unrelated trade or business or other
AbakadaGuroPartyListv.Ermita
c. Reasonably necessary
for
the
accomplishment
of said activity where the gross income from such exceeds
purpose. 50%ofthetotalgrossincome.
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CIRv.CTA,ManilaGolf&CountryClub
When a non-stock, non-profit educational institution proves that it The Supreme Court shall have the following powers: (2)
uses its revenues actually, directly, and exclusively for
educational Review, revise, modify or
affirm
on
appeal or certiorari, as the An “item” in a revenue bill does NOT refer to an entire
purposes, it
shall
be
exempted from income tax, VAT, and LBT. On laws or the Rules of Court may provide, final judgments and
section imposing a particular kind of tax, but rather to the subject of
the
other hand, when it
also
shows that it uses its assets in the form orders of lower courts in xxx (b) all cases involving the
the
tax and the tax rate. In the portion of a revenue bill which actually
of
real property for educational purposes, it shall be exempted from legality of any tax, impost, assessment or toll or any
imposes a tax, a section identifies the tax and enumerates the persons
RPT. penaltyimposedinrelationthereto.
liablethereforwiththecorrespondingtaxrate.
The
crucial point of inquiry then is on the use of the assets or on the 9. Prohibitionontheuseofspecialfund( Sec29(3)ArtVI) To
construe the
word
“item” as
referring
to
the
whole
section would
use of the revenues. So long as the assets or revenues are used
All money collected on any tax levied for a special purpose tie the President’s hand in choosing either to approve the whole
actually, directly and exclusively for educational purposes, they are
shall be treated as
a special fund and paid out for such purpose section at
the expense of also approving a provision therein which he
exemptfromdutiesandtaxes.
only. If the purpose for which a special fund was created
has deems unacceptable or veto the entire section at the expense of
The tax exemption granted by the Constitution to non-stock, been fulfilled or abandoned, the balance, if any, shall be foregoingthecollectionofthekindoftaxaltogether.
non-profit educational institutions, unlike the exemption that transferredtothegeneralfundsoftheGovernment.
may be availed of by proprietary educational institutions, is not
INDIRECTCONSTITUTIONALLIMITATIONS
subjecttolimitationsimposedbylaw.( C IRv.DLSU2016) PKSMMN,etal.v.ExecutiveSecretary,etal.2
012EnBanc
1) Dueprocessoflaw
Coco-levy funds are not
only affected
with public
interest; they are,
SummaryforCharitable,ReligiousandEducationalEntities
in fact, prima facie public funds. They
were raised with the use of a. The validity of a statute must be contested only by one
Non-Stock,Non-Profit the police and taxing powers of the State for the benefit of the coconut who sustained or stands to sustain direct injury in
CharitableorReligious
Educational industryanditsfarmersingeneral. consequence of its performance EXC: Transcendental
importance,taxpayer‘ssuit.
Real E.O. 313 runs counter to the constitutional provision which
directs
ExemptfromRPTIfusedADEforintendedpurpose. 2) Equalprotectionofthelaws
Property
that all
money collected on
any tax levied for a special purpose shall
a. All
persons, businesses, and
properties should be taxed at
Income ExemptfromIncomeTax be treated as a special fund and paid out for such purpose only.
the same rate, so long as they belong to the same
Assisting other agriculturally-related programs is way off the
classification. Equalityamongequals.
Revenuesfromproperties coco-fund’s objective of promoting the general interests of the
Incomefromproperties
Income oractivitiesconducted coconutindustryanditsfarmers. b. Doesnotrequireterritorialuniformityoflaws.( TiuvCA)
oractivitiesconducted
from FORp rofitthatareADE
FORprofitaret axable TESTSTODETERMINEVALIDCLASSIFICATION
Property foreducationalpurposes 10. PowerofthePresidenttovetoanyparticularitemsina
regardlessofdisposition
aret ax-exempt. 1. Compelling State Interest Test – State balances the
revenueortariffbill
public interest against
religious
freedom. The
need to
7. Non-imprisonmentfornon-paymentofapolltax( Sec20 GR: The President has to approve or disapprove a bill in its advance the constitution and public interest. In case
ArtIII) entirety. there are less restrictive means to advance a right
Poll tax is a tax of a fixed amount fixed on persons residing EXC wherepartialoritemvetoisallowed undertheconstitution.
within a specified territory, whether resident or not, without 2. Rational Basis Test – The classification
is
valid
if
it
regard to
their property or the occupation of business in which a. Appropriationbill;
is rationally related to a constitutionally
permissible
theymaybeengaged. b. Revenuebill; stateinterest. e.g.SeniorCitizensAct
8. Non-impairmentofthejurisdictionoftheSCintaxcases c. Tariffbill. 3. Quasi-Suspect Case – Available if needed. Based
on
(Sec5(2)ArtVIII) gender/legitimacy. It points out a specific
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constitutionally granted state interest s uch as GR: o appropriation is allowed in favor of any sect, a.IncomeTaxSystems
N
protection of women where there is a valid church,oranypriest,minister,etc. a) Schedular — The items are classified based on kind or
classificationbetweenmenandwomen. EXC: When such priest is assigned to the armed forces, category of income and this is subject to different tax rates
3) Non-impairmentoftheobligationsofcontracts penal institution or government orphanage or basedontheincomeclassification.
a. If the exemption was granted for a valuable leprosarium. b) Global — lump all items of income and a single/
consideration on the basis of a contract – it cannot be 6) Non-infringementofthefreedomofthepress proportional/uniformincometaxrateisimposed.
revoked by passing another law. The non-impairment There is
curtailment of
press freedom and freedom
of
thought c) Mixed (applicable in PH) — it is
schedular in
the
sense that
clauseapplies. and
expression if
a tax
is
levied in order to suppress this basic we lump different items of
income per
type or category and it
b. If
the
exemption is granted by virtue of a contract between rightandimposepriorrestraint. is
global
in
the
sense that
we subject all the items in this lump
a private corporation and the government – it cannot be toonetaxrate.
revoked unilaterally by the government. The CREBAv.Romulo2
010EnBanc
b.FeaturesofthePhilippineIncometaxlaw
non-impairmentclauseapplies.
Certainly, an income tax
is
arbitrary and confiscatory if
it
taxes
c. If the basis of the tax exemption is a mere franchise capital because capital is not income. In
other
words,
it
is
income, Feature Individual Corporate
granted by Congress – it can be unilaterally revoked by the not
capital,
which is
subject to income tax. However, the MCIT is not
government.NICd oesnotapply. ataxoncapital. Schedular Global
1) Itclassifiesincome; 1) Generallyprovides
4) Non-infringementofreligiousfreedom The MCIT is imposed on gross income which is arrived at by 2) Providesfor foruniformrules;
The free
exercise of
religion clause, however, does not prohibit deducting the
capital spent by a corporation in
the
sale
of
its
goods, Tax
differenttaxrules; 2) Generallyimposes
i.e., the cost of goods and other direct expenses from gross sales. Treatment
imposing a generally applicable sales tax on the sale of 3) Imposesdifferent uniformtaxrate;
Clearly,thec apitalisnotbeingtaxed.
religious materials by religious organizations. The sale of taxrates. 3) Doesnotg enerally
religious articles can be
subject to VAT, what cannot be taxed is NoviolationofEqualProtection classifyincome.
the
exercise of
religious worship or
activity. The income of the
priest from the exercise of a religious activity cannot also be The taxing power has the authority to make reasonable 1) RC; 1) DC;
classifications for purposes of taxation. Inequalities which result
taxed.(T olentinov.SOF) NetIncome 2) NRC; 2) RFC.
from a singling out
of
one
particular class for taxation, or exemption,
Taxation 3) RA;
infringe no constitutional limitation. The real estate industry is, by
AmericanBibleSocietyv.CityofManila 4) NRA-ETB.
itself, a class and can be validly treated differently from other
We believe that the provisions of City of Manila Ordinance No. businessenterprises.
GrossIncome NRA-NETB NRFC
2529, as amended, cannot be
applied to
appellant, for in
doing Taxation
so it would impair its free exercise and enjoyment of its religious 2. IncomeTax
profession and worship as well as its rights of dissemination of 1) Residence—RA, 1) Residence—RFC;
religiousbeliefs.
1.Definition,Nature,andGeneralPrinciples RC; 2) Place—NRFC;
Situs
With respect to
Ordinance No. 3000, as amended, which requires the 2) Place—NRA,NRC; 3) Nationality—DC.
obtention of the Mayor's permit before
any person
can
engage in INCOME TAX
is
a direct
tax
on
all
yearly
profits
arising from
property, 3) Citizenship—RC.
any of
the
businesses, trades or occupations enumerated therein, We professions, trades or offices or a tax on a person's income,
do
not find
that
it
imposes any charge upon the
enjoyment of a right emoluments,profits,andthelike. CommonFeatures
grantedbytheConstitution,nortaxtheexerciseofreligiouspractices.
1) Payasyoufilesystem.—
5) Noappropriationforreligiouspurposes
a) Individuals—uponfilingofITRs;
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taxable only on income derived from sources within the f.Kindsoftaxpayers
b) Corporations — upon filing of quarterly corporate
Philippines:
ITRsandfinaladjustmentcorporatereturns;
Provided, That a seaman who is a citizen of the Philippines and
2) CreditableWithholdingTaxSystem
who receives compensation for services rendered abroad
as
a
a) Withholding agent — withholds
tax
and
remits
to
the member of the
complement of a vessel
engaged exclusively in
BIR; international trade shall be treated as an overseas contract
worker;
b) Taxwithheld—creditableagainstincometaxdue.
d) An alien individual, whether a resident or not of the
3) FinalWithholdingTaxSystem Philippines, is taxable only on income derived from sources
a) Withholding agent — withholds
tax
and
remits
to
the withinthePhilippines;
BIR; e) A
domestic
corporation is taxable on all income derived from
b) Tax
withheld
— final
settlement
of
the
tax
liability on sourceswithinandwithoutthePhilippines;and
theincomecovered. f) A foreign corporation, whether engaged or not in trade or
business in
the
Philippines,
is
taxable
only
on
income derived WithinandWithout Within FinalTaxRateof25%within
c.CriteriainimposingPhilippineincometax
fromsourceswithinthePhilippines.(S ec23)
1. Citizenship or Nationality Principle — a citizen of the RESIDENTCITIZEN
In short… Only RESIDENT CITIZENS and DOMESTIC CORPORATIONS
PhilippinesissubjecttoPhilippineincometax
are taxable on income derived from ALL sources. All others are only
1) Those who are citizens of the Philippines at the time of the
a. On his
worldwide
income,
if
he
resides in the Philippines, taxableonincomederivedfromsourceswithinPH.
adoptionofthisConstitution;
or
e.TypesofPhilippineincometaxes 2) ThosewhosefathersormothersarecitizensofthePhilippines;
b. Only on his
Philippine-source
income, if
he
qualifies
as
a
1. PersonalIncomeTaxonIndividuals(S ecs24-25); 3) Those born
before
January
17,
1973, of
Filipino mothers, who
non-resident citizen; hence, his foreign-source income
shallbeexempt. 2. RegularCorporateIncomeTax(S ec27[A]); elect Philippine citizenship upon reaching the
age
of
majority;
3. MinimumCorporateIncomeTax(S ec27[E]); and
2. Residence or Domicile Principle — an alien is subject to
incometaxbecauseofhisresidenceinthePhilippines. 4) Thosewhoarenaturalizedinaccordancewithlaw.
4. CapitalGainsTax;
3. Source of Income Principle — an alien is subject to 5. Taxonpassiveinvestmentincome; A Resident Citizen is a Filipino
citizen
who
stayed
permanently in
the
Philippine
income tax because he derives income from sources Philippines or
stayed outside the Philippines for less than 183 days
6. FringeBenefitsTax(S ec33);
withinthePhilippines. duringthetaxableyear.
7. BranchProfitRemittanceTax(S ec27);
d.Generalprinciplesofincometaxation NON-RESIDENTCITIZEN
8. ImproperlyAccumulatedEarningsTax(S ec29);and
a) A
citizen
of
the
Philippines
residing
therein
is
taxable on all
9. FinalWithholdingIncomeTax. 1) A
citizen of
the
Philippines
who establishes
to
the satisfaction
income derived from sources within and without the
of the Commissioner the fact of
his
physical
presence abroad
Philippines;
withadefiniteintentiontoresidetherein.
b) A
nonresident citizen
is taxable only on income derived from
2) A citizen of
the
Philippines who
leaves the
Philippines
during
sourceswithinthePhilippines;
the taxable year to reside abroad, either as an immigrant or for
c) An individual citizen of the Philippines who is working and employmentonapermanentbasis.
deriving income from abroad as an overseas contract worker is
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3) A citizen of the Philippines who works and derives income b. 25%finaltaxongrossincome 1. Where the income is accumulated or held for future
from abroad and whose employment thereat requires him to be distributionbythetrustee;
SPECIALEMPLOYEES
physically present abroad most of the time during the
2. Where it is up to the fiduciary whether there will be
taxableyear. Special employees are alien individuals or Filipino citizens who are
distributionornot;
- Atleast183days. subjectto15%taxbasedontheirgrosscompensationincomewhen:
3. Where the income is collected by a guardian
of
an
infant
- Temporarye mployment 1. They are employed
occupying
managerial
and/or technical
whichistobeheldordistributedasthecourtmaydirect.
positionswithregionalorareaheadquartersof
4) Hybrid. — A citizen who
has
been previously considered as
non-resident citizen and who arrives in the Philippines at any a. multinationalcorporations, CORPORATIONS
time during the taxable year to reside permanently in the b. petroleumservicecontractorsandsubcontractors,or
Philippines shall likewise be treated as
a non-resident citizen Theterm' corporation's hallinclude
c. offshorebankingunits.
for
the
taxable year
in
which
he
arrives in the Philippines with a) partnerships,nomatterhowcreatedororganized,
respect to his income derived from sources abroad until the 2. If the special taxpayer is an alien, all of his gross
dateofhisarrivalinthePhilippines. compensationincomereceivedissubjectto15%finaltax. b) joint-stockcompanies,
5) Receives compensation for services rendered abroad as a 3. If the taxpayer is a Filipino citizen, he has the option to be c) jointaccounts(cuentasenparticipación),
seaman. taxed at 15% final tax based on his gross compensation income
received or
at
a regular income tax rate (0%-35%) based on the d) association,or
a. Heisamemberofthecomplementofavessel
net taxable compensation income if
his gross annual taxable e) insurancecompanies,
b. The vessel is engaged exclusively in international compensation is
at
least P975,000 (whether or not actually
trade. butdoesnotinclude
received).
RESIDENTALIEN TN: 15%preferentialtaxratevetoed a) generalprofessionalpartnershipsand
ESTATESANDTRUSTS b) a
joint
venture or
consortium
formed
for the purpose of
A resident alien is one who has a residence in the Philippines
undertaking construction projects or engaging in
although he is not a Filipino citizen. He has no
definite
period
of An ESTATE is composed of all properties, rights and obligations
petroleum, coal, geothermal and other energy operations
stayinthePhilippines. including those properties, earnings or obligations that have pursuant to an operating consortium agreement under a
He is not a mere
transient
or
sojourner.
His definite purpose for accrued thereto since the opening of the succession. The estate is to
servicecontractwiththeGovernment.
staying requires an extended stay and to that end, he makes his be
transferred from the decedent to his successors. Its status is the
sameasthatofthedecedentpriortohisdeath. 'General professional partnerships' are partnerships formed
by
hometemporarilyinthePhilippines.
persons for the sole purpose of exercising their common
It will only be taxable when it is under administration or
NON-RESIDENTALIEN profession, no
part of the income of which is derived from engaging
settlement.
inanytradeorbusiness.
The test
to
classify
NRA is the length of stay in the Philippines, whether GR: An estate under
judicial
settlement
is
subject
to
income
tax. Domestic corporations are those created or organized in the
hestaysformorethan180daysor,1 80daysorless.
Philippinesorunderitslaws.Otherwise,f oreigncorporations.
NRA-ETB EXC: The distribution to the heirs during the taxable year of
estate income is
deductible from the taxable income of the g.Taxableperiod
a. Morethan180days
estate. Such will form part of the taxable income of the 1) 'Taxable year' means the calendar year, or the fiscal year
b. 0-35%taxonnetincome
heirs. ending during
such calendar year,
upon
the
basis of which the
NRA-NETB
A TRUST is an obligation
imposed
or
a right
to
administer
over
a netincomeiscomputed.
a. 180daysorless propertygiventoapersonforthebenefitofanother.
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2.ConceptofIncome 7) All-events - right to collect income the amount of which is The accrual of income and expense is permitted when the
liquidatedorcertain. all-eventst esthasbeenmet.Thistestrequires:
a.Definition
In the broad sense,
INCOME refers to
all
wealth which into i.Realizationtest
flows 1) fixingofarighttoincomeorliabilitytopay;and
the taxpayer other than those that are mere return of capital.
It
is 2) the
availability
of the reasonable accurate determination of
Incomeisrecognizedwhenbothconditionsaremet:
return on
capital
or
return
above the capital as opposed to return of suchincomeorliability.
capital. a) Theearningiscompleteorvirtuallycomplete;AND
Theall-eventstestissatisfied
CAPITAL denotes the original investment or fund used in
order
to b) Anexchangehastakenplace.
generate
earnings which is
called
income.
It is the fund or property a) where computation remains uncertain, if its basis is
ii.Claimofrightdoctrineordoctrineofownership,commandor
unchangeable;
existingatonepointintime.
control
REVENUE refers to the amount received by the business from b) where a computation
may
be unknown, but is not as much
sellingmaingoodsorservicestoitscustomersduringtheperiod. If
the
taxpayer
receives earnings
under
a claim of right and without asunknowable,withinthetaxableyear.
b.Whenincomeistaxable restrictionastoitsdisposition. The amount of liability does not
have
to
be
determined
exactly; it
1. Thereisgainorprofit; iii.Economicbenefittestordoctrineofproprietaryinterest must be
determined with "reasonable accuracy." Accordingly, the
term "reasonable accuracy" implies something less than an exact or
2. Gain or profit is realized or received (actually or Anything that benefits a person materially or economically. Note completelyaccurateamount.
constructively);C onstructiver eceipt: however that
there
must
first
be
actual realization, such as through
ii.Specialmethod:installment,deferredpayment,percentage
a. Maturedinterestcoupons; saleordisposition.
ofcompletion(inlong-termcontracts)
b. Interestonsavingsbankdeposit; Mereincreaseinthevalueofpropertyisnotincome.
c. Dividendsappliedtoindebtednessofashareholder; 1) 'Long-termcontracts'means
iv.Severancetest
d. ShareintheprofitsofapartnerinGPP. a) building,installationorconstructioncontracts
Income is recognized when there is
separation of something which
3. SuchgainorprofitisN
OTe xemptedbyanytreatyorlaw. isofexchangeablevalue. b) coveringaperiodinexcessofone(1)year.
c.Testsindeterminingwhetherincome
d.Methodsofaccounting Persons whose gross income is derived in whole or in part
isearnedfortaxpurposes from
such contracts shall report such income upon the basis of
An accounting method is
a "set
of
rules
for
determining
when
and
1) Flow of Wealth - whether any gain was derived from the percentageofcompletion.
howtoreportincomeanddeductions."
transaction. The return should be
accompanied by
a return
certificate
of
i.Distinguish:cashandaccrualmethod
2) Realization-Revenueisrealizedwhen architects or engineers showing the percentage of
completion
a) Theearningprocessiscomplete;AND The accrual method relies upon the taxpayer’s right to receive during the taxable year of the entire work performed under
amounts or its obligation to pay them, in opposition to actual contract.
b) Anexchangehastakenplace.
receipt or payment, which characterizes the cash method of 2) InstallmentBasis.—
3) Economic-Benefit - taxable to the extent the taxpayer is
accounting.
economicallybenefited. a) Sales of
Dealers in
Personal Property. — a person who
For a taxpayer using the accrual method, the determinative question regularly sells
or
otherwise disposes of personal property
4) NetEffect-substanceofwholetransaction.
is,
when do
the
facts
present
themselves in
such a manner that the on
the
installment plan may return as income therefrom in
5) ClaimofRight-ifthereiscontroloverthefund. taxpayermustrecognizeincomeorexpense? any taxable year that proportion of the installment
6) RecoveryofCapitalDoctrine. payments actually received in that year, which the
gross
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profit realized or to be realized when payment is
goodsmanufacturedandsold
3.GrossIncome
completed,bearstothetotalcontractprice.
a. WithinPH-Purelywithin; a.Definition
b) Sales of Realty and Casual Sales of Personality. — In b. Outside-Purelywithout;
thecase c. Placeofmanufactureandselling In a narrow sense, gross income means all income derived from
different-Proportionate. whateversource,includingbutnotlimitedtoC
G2IR2DAP3.
i) of a casual sale or other casual disposition of
personalproperty,forapriceexceedingP1K,or In
a broad sense,
it
means all
items
of income less exclusions. It is
1.Personal-Placeofsale;
Fromsale 2.Saleoftransportdocuments-place the
total income from all sources before deductions, exemptions or
ii) ofasaleorotherdispositionofr ealp
roperty,
orexchange othertaxreductions.
wheresold;
if
in
either case the
initial payments do not exceed 25% ofproperty
3.Real-Location. b.Distinguish:grossincome,netincome,andtaxable
of the selling price, the income may be returned on the
income
basisandinthemanneraboveprescribed.
Interest Residenceofdebtor
'Initial payments' means the payments received during a) GROSS
INCOME TAXATION — This is a system based on gross
the
taxable period
in
which
the sale or other disposition is Rent Propertylocated income,
which doesn‘t allow deductions but allows exclusions.
made. Applicabletopassiveincome.
Royalties Whereintangibleisused
c) Sales of
Real Property Considered as
Capital Asset by GROSS IN COM E = Income – Exclusions
Individuals. — An individual who sells or disposes of 1.FromDomesticCorp-incomepurely
real
property, considered as
capital asset, and is otherwise within; b) NET INCOME TAXATION — Certain deductions are allowed
qualified to report the gain therefrom under (B) may
pay 2.FromForeignCorp-ifincomederived and subtracted from the aggregate of incomes not subject to
thecapitalgainstaxininstallments. Dividend fromPH: final tax, and the tax computed based on the resulting net
a. >85%=purelywithin; income.
d) Change from Accrual to Installment Basis. — If a
b. <50%=purelywithout;
taxpayer entitled to the benefits of (A) elects for any
c. 50%-85%=allocation. N ET IN COM E = Gross Income – Deductions
taxable year to report his taxable income on the
installment basis, then in computing his income for the
Annuities Placeofcontract c.Sourcesofincomesubjecttotax
year of change or any subsequent year, amounts actually
received during
any such year
on account of sales or other CG2IR2DAP3
Eitherwhereservicesrenderedorwhere
dispositions of property made in
any
prior
year shall not Prizes 1) Compensation for services in whatever form paid,
including,
given.
beexcluded. but not limited to fees, salaries, wages, commissions, and
Wheregivenonaccountofservices similaritems;
e.SitusofIncome Pension
rendered. 2) Gross income derived from the conduct of trade or business or
Source Situs
theexerciseofaprofession;
Professiona
Compensati Whereservicerendered lincomeof Exerciseofprofession 3) Gainsderivedfromdealingsinproperty;
on partners 4) Interests;
Merchandising,Farming,Mining 5) Rents;
Business - Wherebusinessundertaken. 6) Royalties;
Manufacturing
7) Dividends;
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8) Annuities; of the payments or by any officer or employee duly
designated
for higher MonthlyValue=
9) Prizesandwinnings; suchpurpose. AV/12
10) Pensions;and ii.Fringebenefits ERpurchaseshouseon 5%of
50%xMonthly
11) Partner's distributive share from the net income of the installment,assignsuseto acquisitioncost,
Any good, service or other benefit furnished or granted in cash or in Value
EE excinterest
generalprofessionalpartnership.
kind by an employer to an individual employee (except rank and file
i.Compensationincome employees)H EVHIMEHEL ERpurchasesthentransfers Acquisitioncost
NA
ownershiptoEE orFMV
It refers to all
remuneration
for
services
rendered
by
an
employee 1. Housing
forhisemployer,unlessspecificallyexcludedundertheTaxCode. ERpurchasesthentransfers ZonalValueor
2. ExpenseAccount ownershiptoEEatalower NA AssessedValue,
FirstLepantov.CIR2
013
price minuscostofEE
The imposition of withholding tax on compensation hinges upon
3. Vehicleofanykind
thenatureofworkperformedbysuchindividualsinthecompany. 4. HouseholdPersonnel Exceptions( Nottaxable):
InKind: 5. Interestonloan 1. AFP,Navy,AirForce;
a. Stock Options. Stock options are taxable as compensation 2. Housing
unit
inside
or
within
a maximum
of
50
meters
from
6. MembershipFees
income taxed only if
there is
a benefit to
the
employee such perimeterofbusiness;
as
when he
can buy the share at a more favorable price than the 7. ExpenseforForeignTravel
3. Temporaryhousing=3 monthsorless;
public.
8. HolidayandVacationExpense 4. Grantedtorankandfile.
The tax will be on the amount of the difference between the
book value or the FMV of the stock, whichever is
higher,
and
9. EducationalAssistance EXPENSEACCOUNT
the exercise price. It is imposed whether or not the stock 10. LifeorHealthInsurance a. In
general, expenses
incurred
by
EE
but
are paid by his ER are
optionisexercised. taxable,e xceptwhen:
TN: ThislistisNOTexclusive.
b. Promissory Notes. Equivalent to the face value of the i. Theyared
ulyreceipted;
ConditionsforFBtobetaxable
promissory note, unless it is discounted. For a discounted
a. Giventom anagerialorsupervisoryemployees; ii. InthenameofER;and
promissorynote,thecashdiscountedvalue.
b. Good,servicefurnishedorgrantedincashorinkind; iii. Donotpartakethenatureofapersonalexpense;
c. Cancellation of
Debt.
Considered an
income when you render
servicesandinexchange,yourdebtisforgiven. c. MustNOTbeforthebenefitorconvenienceoftheemployer. b. Expenses paid for by EE, but reimbursed by ER are taxable,
exceptw
hen(sameasa);
d. Tax Liability. When the e mployer shoulders your tax on HOUSING
compensation instead of you getting less than your gross
c. Personal expenses of EE paid for or reimbursed by ER are
monthlysalary. Case AnnualValue MonthlyMV taxable, regardless
if
they are
receipted or
not
in
the
name
of
ER;
COURAGEv.CIR2018EnBanc 50%xMonthly
ERleaseshouseforuseofEE NA d. RATA are NOT taxable fringe benefits, but are taxable
Withholding tax on compensation applies to
the
Government of
the Rent
compensationincome:
Philippines, including its agencies, instrumentalities, and political
5%ofFMV,or 50%xMonthly i. Fixedinamounts;
subdivisions. ERownshouse,assignsuse
ZonalValue, Value
toEE ii. RegularlyreceivedbyEE;
Withholding
shall
be
made
by the officer or employee having control whicheveris
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iii. PartofMonthlycompensationincome. a. Reasonable business expenses
for
the
purpose
of
attending i. Heir—incomeofEE;
businessmeetingsorconventionsareN
OTtaxableFBs. ii. IfEEmanagerialorsupervisory—FBsubjecttotax;
MOTORVEHICLES
Inland
travel
expenses
must
not
exceed
300 USD, not including iii. Company—N
OTF
B;
Case MonetaryValue lodgingcost.
iv. ForGroupofEEs—N
OTF
B.
b. Economy and business class NOT taxable. 30% of cost of First
Purchasesvehicleinthenameof AcquisitionCost
classticket taxable. ExemptionfromFBT
EE
c. There should
be
documentary evidence
proving
the
travel was
ProvidesEEwithcashfor CashreceivedbyEE in
connection with a meeting or convention. Otherwise, taxable 1) Authorizedande
xemptedu
ndertheNIRCorspeciallaws;
purchase FB. 2) For EE’s retirement, insurance and hospitalization (GROUP
d. IfforthefamilymembersofEE,paidbyER,taxable. INSURANCE);
Shouldersaportionofthe Amountshouldered
purchaseprice HOLIDAYANDVACATIONEXPENSES 3) GiventoR
ankandFile;
4) Required by
the
nature
of,
or
necessary
to
the
trade,
business
Purchasescaroninstallmentin Acquisitioncost(exclinterest)/
thenameofEE 5years. Everything
is
considered as
fringe
benefit
since it is not pursuant to the orprofessionofER;
purposeofthebusinessoftheemployer. 5) Forthec onvenienceo
fER;
Ownsafleetofvehiclesforthe Acquisitioncostofallmotor
useofEEs vehiclesn
otnormallyusedin EDUCATIONALASSISTANCE 6) Deminimisbenefits.
business/5yearsx50% DEMINIMIS
TotheEE:
Leasesandmaintainsfleetof Amountofrentx50%
GR: Taxable; Are of relatively small value and are offered or furnished
merely
as
a
vehicles
EXC: means of promoting goodwill, contentment or efficiency of his
Useofyacht Depreciationat20yearsof employees.
1. Directly connected with ER’s trade, business or profession;
usefullife.
AND Benefit Monthly Annual
2. There is
a written
contract
to the effect that EE is obliged
HOUSEHOLDEXPENSES
toremainintheemployofERforamutuallyagreedperiod. MonetizedunusedVLnotexceeding10days NA NA
For household personnel,
such
as
salaries
of
household
help,
personal TotheDependentofEE:
MonetizedvalueofVLandSLcreditsofPublic NA NA
driveroftheemployee,orothersimilarpersonalexpenses. GR: Taxable; employees
INTERESTONLOANatlessthanMarketRate EXC: Assistanceprovidedthroughac ompetitivescheme. Medicalcashallowance 250 3,000
LIFEORHEALTHINSURANCE
Ricesubsidy 2,000 24,000
Marketrateisat 12%.
GR: Taxable;
MEMBERSHIPFEES UniformandClothing 500 6,000
EXC:
a. ShouldnotbepursuanttothenatureofthebusinessofER; a) Pursuanttoexistinglaw,i.e.SSS,GSIS;AND Actualmedicalassistance 10,000
b. Shouldnotbenecessaryfortheposition. b) Cost
of
premiums
borne by ER for the group insurance of Laundry 300 3,600
EEs.
EXPENSESFORFOREIGNTRAVEL Awards 10,000
Beneficiary
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4. property used in the trade or business, of a character c)Specialrulespertainingtoincomeorlossfromdealingsin
GiftsduringChristmas,etc 5,000
which is subject to the allowance for depreciation capitalasset
DailyMealAllowanceforOT,night-shift <25%ofMW providedinSubsection(F)ofSection34;or Rule Appliesto
ByvirtueofCBA,productivityincentive 10,000 5. realpropertyusedintradeorbusinessofthetaxpayer.
Loss Capitallossesareallowedonly Individuals
scheme For specific guidelines in determining WON real property is a
limitatio totheextentofcapitalgains. and
ThresholdofP90,000 capitalorordinaryasset,pleaseseeR R7-2003.
n a) Ordinarylossdeductible corporation
The list of de minimis benefits is exclusive. The threshold now Main takeaway — a taxpayer habitually engaged in the real fromordinarygain; sexcept
under the TRAIN Law
is
P90,000. The amount in excess of P90,000 estatebusinessissomeone: b) Capitallossdeductiblefrom trust
will
be subject to the normal income tax rate or fringe benefit tax, as a. Registered with the HLURB or HUDCC as a real estate capitalgain; companies
thecasemaybe. dealerordeveloper;or c) CapitallossNOTd eductible andbanks.
fromordinarygain;
iii.Professionalincome b. If not registered with the above, having consummated d) Ordinarylossdeductible
during the preceding year of at least six
(6)
taxable real fromcapitalgain.
Professionals. — refer to persons who derive their
income
from
thepracticeoftheirprofession. estatesaletransactions,regardlessofamount;or
Loss Shallbetreatedinthesucceeding Individuals
iv.Incomefrombusiness c. Registered as habitually engaged in real estate business
carry-ove taxabley earaslossfromthesale
withtheLGUorBIR.
r orexchangeofcapitalassetheld
1) Self-employment income consists of the earnings
derived by b)Typesofgains fornotmorethan12months.
the individual from the practice of profession or conduct of
1) CAPITALGAINS Lossmustbeinanamountnotin
trade or
business carried on by him as a sole proprietor or by a
excessofthenetincomeofsuch
partnershipbywhichheisamember. Gains or income from the sale or exchange of capital assets,
year.
including:
2) Business is any activity that entails the time, attention and
effort
of
an
individual or
group of individuals for livelihood or a. Income
from
dealings
in
shares
of
stocks or domestic Holding 100%—assetwasheldfor Individuals
profit. corporationW ONthroughthestockexchange; period NOTmorethan12months;
b. IncomefromdealingsinrealpropertylocatedinPH; 50%—assetwasheldformore
v.Incomefromdealingsinproperty
than12months
c. Incomefromdealingsinothercapitalassets.
a)Distinguishordinaryassetandcapitalasset
2) ORDINARYGAINS CIRv.Ocier2018
The term 'capital assets' means property held by the taxpayer
Gains
or
income
from
the
sale
or exchange of properties which The taxpayer is liable to pay capital gains taxes for
the sale,
barter,
(whether or not connected with his trade or business), but
does
arenotcapitalassets. exchange or other disposition of shares of stock in a domestic
notinclude(ordinaryassets)
a. Businessincome; corporation except if the sale or disposition is through the stock
1. stockintradeofthetaxpayer; exchange. For this purpose, the term disposition includes any act of
b. Compensationincome; disposing, transferring or parting with, or
alienation of,
or giving up
2. other property of a kind which would properly be included
c. Passiveincome; ofpropertytoanother.
in the inventory of the taxpayer
if
on
hand
at
the
close
of
thetaxableyear; d. Others. Republicv.SpsBunsay2019
3. property held by the taxpayer primarily for sale to
CGT, being a tax on passive income, is imposed by the NIRC on
customersintheordinarycourseofhistradeorbusiness; the seller as a consequence of the latter's presumed income
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from the sale or exchange of real property. d) as
a result
of
the
exchange
the
transferor,
alone
or
together c) DividendreceivedfromDCbyanindividualorNRFC;
In case of transfer by expropriation, the expropriating authority with others, not exceeding four, gains control of the d) Prizesof>Php10K;
shall shoulder the CGT, other taxes and fees as part of the just transferee.
compensationduetotheaffectedowneroftheproperty. e) Winningsexceptsweepstakesandlotto;
The
exchange of property for stocks between FDC, FAI and FLI clearly
qualifiesasatax-freetransaction. f) Partner’s share from the net income after tax
of
business
d)Tax-freeexchanges
partnership,jointaccount,jointventureorconsortium.
GR: Upon the
sale
or
exchange
or property, the entire amount of the Bearing in mind the meaning of "gross income", it cannot be gainsaid,
even then, that a mere increase or appreciation in the value
of a)Interest
gainorloss,asthecasemaybe,shallberecognized.
said shares cannot be considered income for taxation purposes. Amount of
compensation paid
for
the
use of
money or forbearance
EXC: No
gain
or
loss
shall
be
recognized
if
in pursuance of a plan of It "constitutes and can be treated merely as an increase of
mergerorconsolidation— from such use.
However, interest income which are already subject
capital." Hence, the CIR has no factual and legal basis in assessing
to
final
tax
need not be included in the computation for a taxpayer’s
1. A corporation, which is
a party
to
a merger or
consolidation, income tax on the increase in the value of FDC's shareholdings in FAC
untilthesameisactuallysoldataprofit. annualITR.
exchanges property
solely for
stock in
a corporation, which is
apartytothemergerorconsolidation;or b)Dividend
CIRv.LucioCo2020f urtherclarifyingFilinvest
2. A shareholder exchanges stock in a corporation, which is a Any distribution made
by
a corporation to its shareholders out of
party to the merger or consolidation, solely for the stock of As regards the element of control, the Court, in
Filinvest, clarified
its
earnings or
profits and payable to its shareholders, whether in
that it is not necessary that, after the exchange, each of the transferors
another corporation also a party to the merger or moneyorinotherproperty.(S ec73)
individuallygainscontrolofthetransfereecorporation.
consolidation;or
It
also
does not
prohibit instances
when the transferor gains further 1) Cashdividend—
paidingivensumofmoney;
3. A security holder of a corporation, which is a party to the control of the transferee corporation. The Court explained that the
merger or consolidation, exchanges his securities in such 2) Property dividend — one paid by a corporation in
element of control is satisfied even if one of the transferors is already
corporation, solely
for
stock or
securities
in such corporation, owning at least 51% of the shares of the transferee corporation, as securities(notitsownstock)orotherproperty;
apartytothemergerorconsolidation. long as after the exchange, the transferors, not more than five, 3) Stock dividend — one paid by a corporation with its OWN
collectively increase their equity in
the transferee corporation by
Also stock.
51%ormore.
4. If property is transferred to a corporation by a person in There is nothing
in
Section
40(C)(2) of
the
NIRC
which
requires
the GR: NOTtaxablesincetheyareconsideredunrealizedgain.
exchange for stock or unit of participation in such a taxpayer to first secure a prior confirmatory ruling before the EXC:
corporation of
which
as a result
of
such
exchange said person, transactionmaybeconsideredasatax-freeexchange.
a) Change in
the
stockholder’s
equity,
right
or
interest in
alone or together with others, not
exceeding
four
(4) persons,
vi.Passiveinvestmentincome thenetassetsofthecorporation;
gainscontrolofsaidcorporation.(S ec40[c])
b) Recipient is
other than the shareholder. Stock dividend
CIRv.Filinvest2011EnBancreTax-freeExchange 1. ItisanincomesubjecttoF
WT.
istaxabletotheusufructuary.
The requisites for the non-recognition of gain or loss are as 2. The recipient is not required to include the income in his gross
c) Cancellationorredemptionofsharesofstock;
follows: incomenorinhistaxableincome.
d) Distributionoftreasurystocks;
a) thetransfereeisacorporation; 3. Taxpayer
is
not
required to
file
ITR
if his income consists solely of
b) the transferee
exchanges
its
shares
of
stock for property/ies incomesubjecttofinaltax.E xamplesofpassiveinvestmentincome: e) Dividends declared in the guise of treasury stock
ofthetransferor; dividendtoavoidincometaxation;
a) Interestincomefrombankdeposit;
c) the transfer is made by a person, acting alone or together f) Differentclassesofstockswereissued.
withothers,n otexceedingfourpersons;and, b) Royalties;
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4) Liquidating dividend — one resulting from the a) Shares
are
redeemed
in
the
absence
of
the
availability Howaboutadvancerentals?
distribution by a corporation of all its property or assets in ofunrestrictedearnings;
1) Prepaid rentals — taxable if so received under a claim of
completeliquidationordissolution.
b) Notinthenatureofarecurringreturnonstock; rightandwithoutrestrictionastouse.
Generally a return of capital, and hence, NOT income.
c) The source of redemption is the original capital 2) Security deposit — not taxable unless lessee violates
However, it is
taxable
income with
respect to
the
excess
subscription upon establishment of the corporation or anyprovisionofthecontract.
ofamountreceivedovercostofthesharesurrendered.
initialcapitalinvestmentinanexistingenterprise.
3) Loan—
nottaxable.
CIRv.PremiumLeisureCorp2019
2) Taxable—
vii.Annuitiesandproceedsfromlifeinsuranceorothertypesof
The distribution of liquidating dividends on account of the
a) The redeemed shares are from stock dividend insurance
dissolution of a corporation is not to be treated as a sale for purposes
of the imposition of capital gains tax. Under Section 73 (A) of the declarationsotherthanasinitialcapitalinvestment.
1997 NIRC, receipt by a stockholder, whether corporate or individual, Annuity is a sum of money payable
yearly
or
at
regular
intervals.
b) There is redemption or cancellation; the transaction
of liquidating dividends is subject to
ordinary income tax
on
the Note however that life insurance annuities are excluded from
involves stock dividends; and the
“time and
manner”
partoftheindividualstockholder. grossincome.
of the
transaction
makes it
essentially equivalent to
a
distributionoftaxabledividends. viii.Prizesandawards
Giver Recipient TaxRate
c)Royaltyincome GR: Taxable.
Domesti DC,RFC Exempt Any
payment of any kind received as consideration for the use of or EXC:
c righttouse:
RC,NRC, 10% 1) If
the
recipient was
selected without any action on his part
RA 1) Anypatent,trademark,designormodel; to enter the contest and he was not required to render
substantial future
services as
a condition for receiving the
2) Secretformulaorprocess; prizeoraward;
NRA-ETB 20%
3) Industrial,commercialorscientificequipment; 2) Those
granted
to
athletes
in
local
and
international
sports
NRA- 25%
4) Information concerning industrial, commercial or competitions sanctioned by their respective national
NETB
scientificexperience. sportsassociations;and
NRFC 15%subjecttoallowancefortax d)Rentalincome 3) Thosethatareinthenatureofgifts.
creditorthet axsparingrule;
Fixed sum either in cash or property equivalent, to be paid at a ix.Pension,retirementbenefit,orseparationpay
otherwise,30%
definiteperiodfortheuseorenjoymentofathingorright.
A pension is a gratuity granted as a favor or reward or one paid
★ Dividend received from foreign corporation is subject to PH Value of permanent improvements made by lessee on leased under given conditions to a person following retirement from
income tax if at least 50% of the world income of
the FC
is property that will become the property of the lessor upon the service or to surviving dependents. Note however that pensions and
derived from PH for
3 years
preceding the
declaration of
such expiration of the lease. The lessor shall report such an income retirement benefits under RA 7641 are excluded from gross
dividend. underanyofthefollowingmethods: income.
Rulesonredemptionofshareofstock 1) Outright method — FMV of the completed building or x.Incomefromanysource
1) NOTtaxable— improvementshallbereportedasadditionalrentincome.
a)Condonationofindebtedness
2) Spread out method — Allocate the depreciated value over
theremainingtermoftheleasecontract. Cancellationorforgivenessofdebtmayamountto
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a) Paymentofincome—taxable; 1. Paidtoheirs; reasonable private benefit plan maintained by the
2. Paidupondeathoftheinsured; employer:xxxx
b) Paymentofdividends—taxable;
3. Paidinasinglesumorininstallment. REQUISITES:
c) Gift—exempt.
EXC: (Whentaxable) 1. Atleast50yearsold;
b)Recoveryofaccountspreviouslywrittenoff
1. Usedtosecuremoneyobligation; 2. At least 10 years of service in same company
Recovery of bad debts previously allowed as deduction in the (aggregate,notnecessarilycontinuous);
2. Transferforvaluableconsideration.
preceding years
shall be
included as part of the gross income in the 3. Reasonableprivatebenefitplan;
year of recovery to the extent of the income tax benefit of said
I N COM E = P roceeds – (P urchase P rice + P remiums P aid) 4. In
the
nature
of
pension,
plan,
profit sharing plan,
deduction.(Sec34[e][1])
stockbonusorgratuity;
c)Receiptoftaxrefundsorcredit
2) AmountReceivedbyInsuredasReturnofPremium.— 5. ApprovedbytheBIR;
Taxes which were previously claimed and allowed as deductions 6. Employer must give contribution and must be
but were subsequently refunded or
granted
as tax
credit
should
be I N COM E = Endowment – P remiums P aid
establishedforthec ommonbenefitofALL.
declaredaspartofgrossincomeofthatyear.E xcept
3) Gifts,
Bequests, and Devises. — However,
income
from such 7. Availed of only ONCE. (except
if
2nd
employer
is
a) Estateanddonor’stax; property, as well
as gift,
bequest, devise
or
descent
of
income Government— stillexempt)
b) Income, war-profit and excess profit taxes imposed by a from
any property, in cases
of
transfers of
divided interest, b) Any amount received by
an official
or
employee or
by
his
foreigncountry; shallbeincludedingrossincome. heirs from the employer as
a consequence of
separation
4) Compensation for Injuries or Sickness. — amounts received of such official or employee from the service of the
c) Taxes assessed against local benefits of
a kind
tending
to
as compensation for personal injuries or sickness, plus the employer because of death sickness or other physical
increasethevalueofthepropertyassessed;
amounts of any damages received, whether by suit or disability or for any cause beyond the control of the
d) Stocktransactiontax; agreement,onaccountofsuchinjuriesorsickness. saidofficialoremployee.
e) Taxeswhicharenotallowableasdeductionsunderthelaw. EXC(Taxable): c) The provisions of any existing law to the contrary
notwithstanding, social security benefits, retirement
d.Exclusions a. Actualdamagesforlossofanticipatedprofits;
gratuities,
pensions and
other
similar
benefits received by
LAGCIRM b. Moral and exemplary damages
awarded
as
a result
of resident or nonresident citizens of the Philippines or
1) Life Insurance. — If the company insures its employee and breachofcontract; aliens who
come to
reside permanently in
the
Philippines
makes the latter’s estate the beneficiary, THE PREMIUM IS c. Interestfornon-taxabledamagesabove; from foreign government agencies and other institutions,
TAXABLE,whiletheproceedsNOTTAXABLE. d. Damagesascompensationforunrealizedincome. privateorpublic.
Whentaxable? 5) Income Exempt under Treaty. — Income of
any
kind, to the d) Payments of benefits due
or
to
become
due to
any
person
a. Insurer and insured agreed that the amount of the extent required by any treaty obligation binding upon the residing in the Philippines under the laws of the US
proceeds shall be withheld by the insurer with the GovernmentofthePhilippines. administeredbytheUSVeteransAdministration.
obligation to
pay
interest
in
the
same – the
interest
is 6) RetirementBenefits,Pensions,Gratuities,etc.— e) BenefitsreceivedfromorenjoyedundertheSSS.
theonesubjecttotax. f) BenefitsreceivedfromtheGSIS.
a) Retirement benefits
received under
RA
No. 7641 and those
b. Thereistransferoftheinsurancepolicy. received by officials and employees of private firms, Santosv.ServierPhil.,Inc.onRetirementBenefits
GR: NOT taxable regardless of the beneficiaries. whether individual or corporate, in accordance with a
⭐For the retirement benefits to be exempt from the
Conditions:
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f) GSIS,SSS,MedicareandOtherContributions.
withholding tax, the
taxpayer
is
burdened
to
prove the concurrence Compensationfor Compensatory;notgainorprofit
ofthefollowingelements: g) Gains from the Sale of Bonds, Debentures or other injuriesorsickness
1) a reasonable private benefit plan is maintained by the Certificate of Indebtedness. — Gains realized
from
employer; the same or exchange or retirement of bonds, Incomeexemptunder Adherencetogenerallyacceptedprinciples
2) the retiring official or employee has been in
the
service
of debentures or
other
certificate
of indebtedness with a treaty ofinternationallaw
thesameemployerfora tleastten(10)years; maturityofmorethanfive(5)years.
Retirementbenefits, Gratuityforyearsofservice
3) the retiring official or employee is not less
than
fifty
(50) ★ Debentures are used for bonds, backed by
yearsofageatthetimeofhisretirement;and pensions,gratuities
general credit of the issuer rather than a
4) thebenefithadbeena
vailedofonlyonce. particular asset. They are unsecured
Incomereceivedby Tolessentheburdenofforeignloans
liabilities.
This
is like a bank letting someone
Petitioner was
qualified for disability retirement. At the time of such foreigngovernments inasmuchastheinterestoftheseloansare,
owemoneywithoutanycollateral.
retirement, petitioner was only 41
years of
age;
and had
been
in
the fromtheirinvestments bycontractualarrangement,borneby
service for more or less eight (8) years. As such, the above provision h) GainsfromRedemptionofSharesinMutualFund. inPH domesticborrowers.
is not applicable for failure to comply with the age and length of i) Income Derived from the
Sale of Gold Pursuant to
service requirements. Therefore, respondent cannot be faulted for
RA No. 7076. — Income derived from following ii.Distinguish:exclusions,deductions,andtaxcredits
the
deducting from petitioner's total retirement benefits the amount of
P362,386.87,fortaxationpurposes. transactions:
Exclusions from gross income refer to a flow of wealth to the
i. The sale of gold to the BSP by registered taxpayer which are not treated as part of gross income, for purposes
7) MiscellaneousItems.—
small-scale miners and accredited traders; of computing the taxpayer’s taxable income either because it is
a) IncomeDerivedbyForeignGovernment. and exempted by
the
constitution, by statute, or it does not come within
b) Income
Derived by the Government or its Political ii. The sale of gold by registered small-scale thedefinitionofincome.
Subdivisions. miners to
accredited
traders
for
eventual sale Deductions from gross income are the amounts which the law
c) Prizes and Awards. — Prizes and awards made totheBSP.(R A11256) allows to be deducted from gross
income
in
order
to
arrive
at
net
primarily in recognition of religious, charitable, i.Rationale income.
scientific, educational, artistic, literary, or civic
Generally, they are excluded because they do not fall within the Taxcreditsaredirectlydeductedfromtaxliability.
achievementbutonlyif:
definition
of
income for
income
tax
purposes or
a provision of the iii.ExclusionsundertheConstitution
i. The recipient was selected without any
TaxCodeorspeciallawexemptsthemfromincometax.
action on his part to enter the contest or
All revenues and assets of non-stock, non-profit educational
proceeding;and Exclusion Rationale
institutions used actually, directly,
and
exclusively
for
educational
ii. The recipient is not required to render purposesshallbeexemptfromtaxesandduties.(S ec4ArtXIV)
ProceedsofLife Indemnityratherthanasgainorprofit.
substantial future services as a condition to
Insurance 4.Deductions
receivingtheprizeoraward.
d) Prizes and Awards in Sports Competition. — Amountreceivedas Returnofcapital WhoarenotallowedtoavailofthedeductionsunderSec34?
sanctionedbytheirnationalsportsassociations. returnofpremium Taxpayers earning compensation income arising from personal services
e) 13th Month Pay and Other Benefits. — Provided, renderedunderanemployer-employeerelationship.
Gifts,bequestsand Notaproductofcapitalorindustry
however, That the total exclusion under this
devises 1. Citizens and Resident Aliens whose income is purely
subparagraph shall not exceed Ninety thousand
compensationincome;
pesos(P90,000).
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2. NRA-NETB; b) AdvertisingandPromotionalExpense; ii) Extraordinary - > 1 year; Capitalized, subject to
Tobedeductibleo
utright: depreciation.
3. NRFC.
i) Mustbereasonable;AND g) Supplies and Materials. — Must be actually consumed
a.GeneralRule—Deductions
duringthetaxableyear.
ii) Incurred
to
stimulate current
sales
and
not establish
ExInTaLoBaChaRePenDepDep h) Litigation Expense. — If incurred in the defense or
goodwillorfuturesales.
1) Expenses; protectionoftitle=capitalinnature,NOTdeductible.
c) Rent;
OptiontoPrivateEducationalInstitutions:
2) Interest; i) Required as condition for continued use or
a) OutrightMethod;OR
3) Taxes; possession;
b) Spread-outMethod=subjecttodepreciation.
ii) Purposeisfortrade,business,profession;
4) Losses; CIRv.GeneralFoodsonAdvertisingExpense
iii) Taxpayernotownerofpropertyleased;
5) BadDebts; iv) Subjecttowithholdingtaxof5
%. To
be
deductible
from
gross
income,
the
subject
advertising expense
mustcomplywiththefollowingrequisites:
6) CharitableContributions; d) TravellingExpense;
a) theexpensemustbeo
rdinaryandnecessary;
7) ResearchandDevelopment; i) Reasonableandnecessary;
b) itmusthavebeenpaidorincurredduringthetaxableyear;
ii) Incurred or paid while away from home - station
8) Pension; c) it must have been
paid
or
incurred
in
carrying
on
the
trade
assignmentorprincipalplaceofbusiness; orbusinessofthetaxpayer;and
9) Depreciations; iii) Intheconductoftradeorbusiness. d) it
must
be
supported
by
receipts,
records
or
other pertinent
10) Depletion. e) Entertainment,AmusementandRecreational; papers.
The subject advertising expense was not ordinary on the ground that
i) Paidorincurredduringtaxableyear;
EXPENSES itfailedthetwoconditions:
ii) In carrying or which are directly attributable to the 1. first,“reasonableness”oftheamountincurredand
KINDS[CARTERS] development, management, operation and/or
conduct
2. second, the
amount
incurred must not be a capital outlay to
ofthetrade,businessorexerciseofprofession; create “goodwill” for the product and/or private
a) Compensation;
iii) Supportedbyadequateinvoicesorreceipts; respondent’sbusiness.
1. Mustbereasonable;
iv) Notcontrarytolaw,publicpolicyormoral; The right
to
a deduction
depends
on
a number
of
factors such as but
2. Paymentforactualservicesrendered. notlimitedto:
v) Notabribe;
AdditionalforBonuses: 1. the type and size of business in which the taxpayer is
vi) Properlywithheldappropriatetax; engaged;
3. Madeingoodfaith;
vii) Limitation: 2. thevolumeandamountofitsnetearnings;
4. Consider:
1) Saleofgoods=0.5%ofnetsales; 3. thenatureoftheexpenditureitself;
a. NatureofBusiness;
2) Service=1%ofnetrevenue. 4. the intention of the taxpayer and the general economic
b. Financialcapacityoftaxpayer;AND conditions.
f) RepairandMaintenance; The subject
media advertising
expense for
“Tang” was almost double
c. Extentofservicesrendered;
i) Ordinary - cost of repair increases the life of an the amount of respondent corporation’s general and administrative
5. Generaleconomiccondition expenses. We find the subject expense for the advertisement of a
assetforaperiodn otmorethan1year;
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d. Partiestoatrust a) PerCountry;
single product to be inordinately large. Therefore, even if it is
necessary,itc annotbeconsideredanordinaryexpense. i. GrantorFiduciary; b) Global.
Advertisingi sgenerallyoftwokinds: ii. Onegrantor,differentfiduciaries;
LOSSES
1) advertising to stimulate the current
sale
of
merchandise iii. BeneficiaryandFiduciary.
oruseofservices-DEDUCTIBLE; NET OPERATING LOSS CARRY OVER (NOLCO). The net operating
4. Interestpaidorcalculatedforcost-keepingpurposes;
2) advertising designed to stimulate the future sale of loss
of the business
or
enterprise for
any taxable year immediately
merchandiseoruseofservices-SPREADOUT. 5. Paidinadvancethroughdiscount; preceding the current taxable year, which had
not
been previously
The second type involves expenditures incurred, in
whole or in part, 6. Onobligationtofinancepetroleumexploration; offset as deduction from gross income shall be carried over as a
to or maintain some form of goodwill for the taxpayer’s trade
create 7. Onunclaimedsalariesofemployees; deduction from gross income for the next three (3) consecutive
or
business or
for
the industry or profession of which the taxpayer is yearsimmediatelyfollowingtheyearofsuchloss.
amember. 8. 33%oftheinterestincomesubjecttofinaltax.
WhenNOLCOisn
otdeductible
INTEREST TAXES 1. Incurredduringt axholiday;
Exceptions: 2. Taxisbasedongrossincomeorreceipts;
Arbitragerule
The taxpayer’s allowable deduction for interest expense shall be 1) SpecialAssessment; 3. OSDisclaimed;
reduced by an amount equal to 33% of
the
interest
income
earned
by 2) IncomeTax; 4. MCITisimposed;
himwhichhasbeensubjectedtofinaltax. 3) Notconnectedwithtrade,business,profession; 5. Substantialchangeinownership(75%).
Theoreticalinterest 4) Estate,Donor’s; NOLCO NCLCO
An interest computed for the
purposes of determining the
opportunity 5) VAT;
cost of
investing
in
a business. This is not paid or incurred. Theoretical Excessofdeductionsovergross Lossfromsaleorexchangeof
6) FinalTaxes; incomeforanytaxableyear capitalasset
interest income and theoretical interest expense is no longer
applicable in our jurisdiction since the interest
must be
stipulated
in 7) Excesselectricconsumptiontax;
Additionaldeductibleitemfrom Capitallossesareallowedonly
writingtobedemandable. 8) Foreign income tax,
war
profits
and
excess
profits
tax
- if used grossincomesimilartoother totheextentofcapitalgains
Non-deductibleinterestexpense astaxcredit; allowabledeductions
1. Interestexpenseonpreferredstock; 9) Paidforcommoditiesnotconnectedwithbusiness.
HoldingperiodisNOT Holdingperiodisapplicablein
2. Whenthereisnoagreementinwritingtopayinterest; Whomayclaimtaxcreditfortaxesofforeigncountries applicable caseofindividualtaxpayer
3. Onloanenteredintobetweenr elatedt axpayers; 1) ResidentC
itizens;
Canbecarriedoverinthen
ext3 Treatedinthes ucceedingyear
a. Membersoffamily 2) DomesticCorporations; consecutiveyearsimmediately asadeductionasshort-term
followingtheyearofsuchloss capitallossfromthenetcapital
i. Spouses; 3) MembersofGPPS;
gainsincaseofindividual
ii. Siblings; 4) Beneficiariesofestatesandtrusts. taxpayer
iii. Descendantsandascendants. OptionsofTaxpayerqualifiedforacredit LOSSES ARISING FROM SECURITIES. When the securities which
b. Between 2 corporations owned and controlled by 1 1) Deductingt heforeignincometaxfromgrossincome;or can be in the form of shares of stocks or loan receivables be
individual; considered as worthless, the losses can be deducted. It will be
2) Claimingtaxcredit.
c. Betweenacorporationanditsmajorityshareholder; worthless when the
company loses operations in
which the shares
LimitationsonCredit belong.
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ChinaBankingCorp.v.CAo
nWorthlessSecurities WAGERING LOSSES. Losses from wagering transactions shall be a. 5%forCorporations;
allowedonlytotheextentofthegainsfromsuchtransactions. b. 10%forIndividuals.
An equity investment is a capital, not ordinary, asset of the
investor the sale
or
exchange of
which results
in either a capital gain CASUALTY LOSSES. The
loss
is
caused by fortuitous event or force 2. Special– deductibleinfullfromgrossincome
or a capital loss. When the shares held by such investor become majeure.Requisitesfordeductibility
worthless, the
loss is
deemed to
be
a loss from the sale or exchange ConditionsifRecipientisanNGO
a. Report to taxing authorities within 45 days from
of
capital assets. A capital gain or a capital loss normally requires the a. Organized and operated exclusively for the aforementioned
concurrenceoftwoconditionsforittoresult: occurrenceoftheloss;
purposes
or
a combination thereof, no part of the net income of
1) Thereisasaleorexchange;and b. Relatedtotradeandbusiness; whichinurestothebenefitofanyprivateindividual;
2) Thethingsoldorexchangedisacapitalasset. c. Evidenced by a closed and completed transaction b. The
donation must
be
utilized not later than the 15th day of
(perfectedsale); the
3rd month following the
close of
its
taxable year.(taxable
When securities become worthless, there is strictly no sale or
exchange but
the
law
deems
the
loss
anyway to be "a loss from the d. Actuallysustainedduringthetaxableyear; yearoftheNGOconcernednotthetaxpayer);
saleorexchangeofcapitalassets.” e. Must not be compensated by
insurance
or
other
forms
of c. The administrative expense must not exceed 30% of total
indemnity. expenses;
The loss of petitioner bank in its equity investment in the
Hongkong subsidiary cannot be deductible as a bad debt. The ABANDONMENT LOSSES. In the event a contract area where d. Upon dissolution, assets would be
distributed to another
shares of
stock in
question do
not
constitute a loan extended by it to petroleum operations are undertaken is partially or wholly nonprofit domestic corporation organized for
similar purpose
its subsidiary (First CBC Capital) or a debt subject to obligatory abandoned, all accumulated exploration and development or purposes, or to the state for public purpose ,or would be
repayment by the latter, essential
elements to constitute a bad
debt,
expendituresshallbeallowedasadeduction. distributed by a court to another organization to be used in
butalongterminvestmentmadebyCBC.
such manner as in the judgment of said court shall best
BADDEBTS accomplish the general purpose for which the dissolved
Insum—
a) The equity investment in shares of stock held by CBC of When are bad debts ascertained to
be
worthless?
A court
order
is organizationwasorganized.
approximately 53% in its Hongkong subsidiary is not an necessaryandtheregularprocedureisasfollows:
indebtedness,anditisacapital,notanordinary,asset. RESEARCHANDDEVELOPMENT
1. Creditor sends a statement of Account to the debtor which
b) Assuming that the equity investment of CBC has indeed statesthematuritydateandamountdue; ThedeductionshallNOTapply
become
"worthless," the
loss
sustained is a capital, not an
2. If no payment is made, then the creditor sends a collection 1. Any expenditure or
the
acquisition or
improvement of
land, or
ordinary,l oss.
lettertothedebtor; for
the
improvement of
property
to be used in connection with
c) The
capital
loss sustained by
CBC can only be deducted
research and development of a character which is subject to
from capital gains if any derived by it during the same 3. Still
no
payment
is made, then the creditor‘s lawyer will send a
taxableyearthatthesecuritieshavebecome"worthless." depreciationanddepletion;and
formaldemandlettertothedebtor;
2. Any expenditure paid or incurred for the purpose of
LOSSES FROM SHARE TRANSACTIONS. Losses from share 4. Stillfailedtopay,thenanactionisfiledincourtforcollection;
ascertaining the existence, location, extent, or quality of any
transactions can be claimed as deduction upon realization of the 5. No
payment despite
the order of court, then the account will be depositoforeorothermineral,includingoilorgas.
loss.
Shrinkage in
value of shares of stocks cannot be used to claim consideredasbaddebt.
TYPESOFR&D
for
the
deduction as loss because you haven't realized it yet. Only if
yousolditthenifthereisanyloss,youcanclaimitasadeduction. CHARITABLECONTRIBUTIONS 1. Not chargeable to
capital
account
— deducted
outright,
Ex.
LOSSES FROM WASH SALES. A wash
sale is
the
buying or
selling Projectfeasibilitystudy;
KindsofCharitableContributions
of
the same type of stock or security at a loss within 30 days before 2. Chargeable to
a capital
account
— spread
out
or
amortized
1. Ordinary – those subject to limitations as to the amount
the date
of
sale
or
30 days after date of sale. It cannot be claimed as overaperiodof60months.
deductiblefromgrossincome
allowablededuction.
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PENSION 1) Sale of inventory of goods by manufacturers and
ledger is
gathered
from
source documents such as account vouchers,
purchase orders and sales invoices. In case of variance between dealers of properties — That portion of the receipt
Current Service
Cost
is
the
cost
of
the
services
rendered from the the source document and the general ledger, the former is representingreturnofcapitalisnotsubjecttoincometax.
timethepensiontrustissetupuntilitsretirement. preferred.
Thus, cost
of
goods manufactured and sold or cost of sales
Past Service Cost
is
the
cost
of
the
services relating to those prior
is deducted from gross sales and is reflected above the
tothesettingupofthepensiontrust. DEPLETION grossincomelineinprofitandlossstatement.
DEPRECIATION The exhaustion of natural resources like mines
and
oil
and
gas
as 2) Sale of stock in trade by a real estate dealer and
well as the result of production or severance
from such mines
or dealerinsecurities.
Depreciable amount or cost is the cost of an asset or other wells. These are non-replaceable assets. This is applicable to
amountsubstitutedforcost,lessitsresidualvalue. 3) Sale of services — Generally, the entire gross
receipts
of
wastingassete ntities.
sellers of services
are
treated
as
part of
income. However,
Salvage value is the
estimated net amount currently obtainable if Cost Depletion Method. The method allowed under the tax code is some have cost of services that must be deducted from
the
asset is
at
the
end
of the useful life. It is the value of the asset at the
cost
depletion method. This is
similar to the unit of production theirgrossreceiptinordertoarriveattheirgrossincome.
theendofitsusefullife. method. The depletable amount of
the wasting asset is
divided by
Useful life is either the period over which an asset is expected to be the units estimated to be extracted to obtain a depletion rate per c.Distinguish:ItemizedDeductions
available for use by the entity, or the number of production or unit. The depletion rate per unit is then multiplied by the units andOptionalStandardDeduction
similarunitsexpectedtobeobtainedfromtheassetbytheentity. extracted during the year to arrive at the depletion
for the
period. (OSD)
The depletable amount is equivalent to the cost of the asset less 1. Optional Standard Deduction or OSD is a standard
METHODSOFDEPRECIATION
salvagevalue,ifany. deduction of an amount
not 40% of
exceeding gross
sales
or
1. Straightlinemethod
EssentialFactors receipts (for individuals), or gross
income
(for
corporations),
Annual Depreciation = Acquisition Cost − Salvage V alue
U sef ul Lif e
1. Basisoftheproperty; asthecasemaybe,i nlieuoftheitemizeddeductions.
2. Decliningbalancemethod; 2. Estimatedtotalrecoverableunits;AND 2. Itmaybeavailedofby:
3. Sumoftheyearsdigitmethod. 3. Numberofunitsrecoveredduringthetaxableyear. a. Acitizen;
KepcoPhil.Corp.v.CIR b.ConceptofReturnofCapital b. Residentalien;
"Capitalgoodsorproperties"refertogoodsorproperties The amount
representing return of capital should be deducted from c. Domesticcorporation;
1. withestimatedusefullifegreaterthanoneyeara nd the proceeds from sales of assets and should NOT be subject to
d. Residentforeigncorporation;
incometax.
2. which are treated as depreciable assets under
Section
29
(f), e. Partnership;and
Costs of goods purchased for resale, with proper adjustment for
3. used directly or indirectly in the production or sale of opening and closing inventories, is deducted from gross sales in f. Taxableestateandtrust.
taxablegoodsorservices. computinggrossincome.
Inotherwords,NRAsandNRFCsc annotclaimOSD.
From petitioner's evidence, the account vouchers specifically Payment of
principal
by
a debtor to a creditor is deducted from the
3. With
the
election
of
OSD,
there is no more need to substantiate
indicate that the disallowed purchases were recorded under total amount received by the latter in order to determine his interest
withreceipts.
inventoryaccounts,insteadofdepreciableaccounts. income.
4. ThosenotallowedtouseOSDare
A general ledger is
a record
of
a business
entity's
accounts which
make up
its
financial
statements. Information contained
in
a general a. thosethatareexempt,withnoothertaxableincome;or
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b. those with income
subject
to
a special
or
preferential
taxrate. f. Interest must have been stipulated in d. Uncollectibleinthenearfuture;
writing; e. Arise from trade or business or
c. thoseearningp
urelycompensationincome.
g. Legallydue; professionoftaxpayer.
5. The taxpayer must signify in his return his intention to
elect
h. Notbetweenrelatedtaxpayers;
the
OSD. Such election
shall be irrevocable for the taxable year Charitable a. Contribution or gift must actually be
forwhichthereturnismade. i. Not incurred to finance petroleum Contribution paid;
operations; s
6. A
general professional partnership and the partners comprising b. Given to organizations specified in the
j. Nottreatedascapitalexpenditure. taxcode;
partnership may avail of the OSD only once, either by the
such
GPPorthepartnerscomprisingthepartnership. Taxes a. c. Net income of the institution must
not
Paidorincurredduringtaxableyear;
inure to the benefit of any private
d.Requirementsfordeductibleitems b. In connection with trade, business,
stockholderorindividual;
Deduction RequisitesforDeductibility profession.
d. Madewithinthetaxableyear;
Expenses a. Ordinaryandnecessary; Losses a. Must be
incurred
in
the trade, business, e. Evidenced by adequate records or
orprofessionofthetaxpayer; receipts;
b. Paidorincurredduringthetaxableyear;
b. Actually sustained and charged off f. Not exceed 10% in the case of
c. Paid or incurred in carrying on or which
within the taxable year and not mere individuals and 5% in the case of a
are directly attributable to the
anticipatedlosses; corporation, of the taxpayer‘s taxable
development, management, operation
c. Evidenced by a closed and completed income (except where the donation is
and/or conduct of the trade, business or
transaction; deductible in full) to be determined
exerciseofprofession;
withoutthebenefitofthecontribution.
d. Supported by adequate invoices or d. Not be compensated by insurance or
receipts; otherformsofindemnity;
Research a. Incurredduringtaxableyear;
e. Not contrary to law, public policy or e. If
partly
compensated,
only
the
amount and b. Inconnectionwithtradeorbusiness.
not compensated by insurance is Developme
moral;
deductible; nt
f. Tax required to be withheld on the
expense paid or payable is shown to f. In the case of casualty loss, taxpayer Pension a. Employer must have established a
havebeenremittedtotheBIR. must file a sworn declaration of loss pension or retirement plan to provide
within 45 days after the date of for the payments of reasonable
Interest a. Theremustbeanindebtedness; discovery of the casualty or robbery, pensionstohisemployees;
b. Paid or incurred upon such theftorembezzlement.
b. Pension plan is reasonable and
indebtedness; actuariallysound;
BadDebt a. Arise from a valid and subsisting
c. Mustbethatofthetaxpayer; obligation; c. Contribution must be made by the
d. Connected with the trade, business or b. Ascertainedtobeworthless; employertothepensionfund;
profession; d. Fundedbytheemployer;
c. Charged off
and uncollectible within the
e. Paidorincurredduringtaxableyear; taxableyear;
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2) Any amount paid out for new buildings or for permanent 6) Between a fiduciary of a trust and beneficiary of such trust.
e. Amount contributed must no longer
be improvements, or
betterments made
to
increase the value of (Sec36)
subject
to
the control and disposition of anypropertyorestate;
theemployer; 5.IncomeTaxonIndividuals
Does not apply to intangible drilling and development costs
f. Payment has not yet been allowed as a.RC,NRC,RA
incurred in petroleum operations which are deductible
under
deduction;
Sec34(g)(1). i.Coverage
g. Deduction is
apportioned in equal parts
3) Any amount expended in restoring property or in making Individual SourceofIncome TaxBase
over a period of 10 consecutive years
good the exhaustion thereof for which an
allowance
is
or
has
beginning with the year in which the
beenmade;or RC Withinandwithout Taxableincome
transferorpaymentismade.
4) Premiums paid on any life
insurance policy covering the
life
Depreciati a. Property must be used in trade, NRC within Taxableincome
of any officer or employee, or of any person financially
on businessorprofessionofthetaxpayer; interested in any
trade
or business
carried on
by
the
taxpayer, RA within Taxableincome
b. Theremustbed
epreciablep
roperties; individual or corporate, when the taxpayer is directly or
c. Allowance for depreciation must be indirectlyabeneficiaryundersuchpolicy. NRA-ETB within Taxableincome
reasonable; Losses from Sales or Exchanges of Property. — In computing net
NRA-NETB within Grossincome
d. Depreciation must be charged off during income, no deductions shall in any case be allowed in respect of
thetaxableyear; lossesfromsalesorexchangesofpropertydirectlyorindirectly— ii.Taxationoncompensationincome
e. Statement of the allowance must be 1) Between members of a family. — brothers and sisters,
a)Inclusions
attachedtothereturn; spouse,ancestors,andlinealdescendants;or
f. Method for computing the allowance All remuneration for services rendered by an employee for his
2) Except in the case of distributions in liquidation, between an
for depreciation must
be
in
accordance employerunlessspecificallyexcluded.Itincludes
individual and corporation more than fifty percent (50%) in
with the
method prescribed by
the
SOF value of the outstanding stock of which is owned, directly
or a) salaries,wages,emoluments,
upontherecommendationoftheCIR. indirectly,byorforsuchindividual;or
b) honoraria,
Depletion a. Depletible asset — natural resources, 3) Except in
the case
of distributions in
liquidation, between
two
c) bonuses,
i.e.mines,gasandoilwells; corporations more than fifty percent (50%) in value of the
outstanding stock of which
is
owned, directly or
indirectly, by d) allowances,
b. Chargedoffwithintaxableyear;
or for the same individual if either one of
such corporations,
c. Allowance for
depletion
is
computed in e) fringebenefitsincludingdirector’sfee,
with respect to the taxable year of the corporation preceding the
accordance with cost depletion date of the sale of exchange was under the law applicable to f) taxablepensionsandretirementpayand
method. such taxable year, a personal holding company or a foreign g) other income of similar nature including those paid in
personalholdingcompany; kind.
e.Itemsnotdeductible
4) Betweenthegrantorandafiduciaryofanytrust;or i) COLA, PERA, housing allowance, OT pay, Emergency
In
computing net
income,
no
deduction
shall
in
any case be allowed
inrespectto— 5) Between the fiduciary of and the fiduciary of a trust and the pay,
Hazard
pay, Rice
and
clothing
allowance, Medical
fiduciary of another trust
if
the
same person is a grantor with allowance,groceryallowance.
1) Personal,livingorfamilyexpenses;
respecttoeachtrust;or
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b)Exclusions c) Taxpayer must signify intention to use this option in the 1st
Royalties,ingeneral 20%
quarter percentage or
income tax
return. Otherwise, graduated
a) Compensation for services rendered by an independent
ratesapply. - Books,literaryandmusicalcompositions 10%
contractor;
d) Mixed income earners are not entitled to the Php250K
b) Amounts paid either as advances or reimbursement for PrizesandWinnings-P10Korless 0-35%
reduction.
transportation, representation, and other bona fide
e) ThisoptionisNOTavailablet o: - >P10K 20%
ordinary and necessary expenses incurred in the
performance of
duties
unless there
is an excess over actual PCSOandLotto winnings-P10Korless EXEMPT
i) Purelycompensationincomeearners;
expenses;
ii) VAT-registered taxpayers, regardless of gross sales or - >P10K 20%
c) Incomederivedbypartnerfromprofessionalpartnership.
receipts;
d) Convenience of
the Employer Rule. — benefits which are InterestincomefromFCDU 15%
iii) Non-VAT
taxpayers
whose
gross
sale
or
receipts
and other
given for the exclusive benefit or convenience of the
non-operatingincome>P
hp3M; CashandPropertyDividends-IndividualtoDC 10%
employer.
iv) TaxpayerssubjecttoOPTe xceptthoseunderSec116.
e) Deminimisbenefits. - DCtoDC 0%
v) Partners of a GPP since
their
distributive
share
is
already
iii.Taxationofbusinessincome/incomefrompracticeof
Interestonlong-termdepositorinvestmentinbanks
netofcostsandexpenses;and EXEMPT
profession (Withmaturityofatleast5years)
vi) Individualsenjoyingincometaxexemption,i.e.BMBEs.
a)Schedular PlusNRA-ETB
iv.Taxationofpartnersinageneralprofessionalpartnership
1. RC– 0-35%ofnetincomewithin&without; Interestfromcurrencydeposits,trustfundsand 20%
1. A
GPP is not a taxable entity for income tax purposes because it depositsubstitutes
2. NRC– 0-35%onnetincomewithin;
only acts as a pass-through entity where its income is
3. RA–0-35%ofnetincomewithin; ultimatelypassedtothepartners. InterestIncomefromlong-termdepositorinvestment EXEMPT
4. NRA-ETB–0-35%ofnetincomewithin;
2. TheGPPmayavailofitemizeddeductionsorthe40%OSD. - Uponpre-terminationwithHoldingperiodof 5%
5. NRA-NETB– 25%ofgrossincomewithin; 4-5years
3. The GPP then distributes the net income to the partners.
The
6. Estates&Trusts–0-35%ofnetincome; shareofthepartneristaxableincomeofeachpartner. - 3-4years 12%
7. SpecialEmployees–15%ofgrosscompensationincome.
4. The partners then cannot claim further deductions
from
their
- <3years 20%
b)8%option distributiveshare.
Self-employed individuals and/or professionals shall have the 5. The partners cannot
also
avail
of
the
8%
income
tax
rate
with ALL,includingNRA-NETB
option to avail of an eight percent (8%) tax on gross sales
or regardtohissharefromtheGPP.
Capitalgains 6%
gross receipts and other non-operating income in excess of v.Taxationofpassiveincome
Php250K in lieu of the graduated income tax rates and the Capitalgainsforsharesofstocknottraded 15%
percentagetax.R ulesonavailingthe8%taxrate PassiveIncome Rate
OnlyNRA-NETB
a) ThefirstPhp250Kisnotsubjecttotax; ForRC,NRC,RA
b) Thisisinlieuofthe3%percentagetax; GrossamountofincomewithinPH 25%
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BDOv.Republic2015LeonenEnBanc a. For
common shares of stock, the book value based on the b. Change of
hands to recipient not engaged in real estate or to use
latestavailablefinancialstatements. inbusiness:
From
the
point of view of the financial market, the phrase “at any one
time”
for
purposes of
determining the
“20
or
more lenders” would b. For preferred shares of stock, the liquidation value, i. Successionordonation-CAPITAL;
mean every transaction executed in the primary or
secondary which is equal to the redemption price of the preferred ii. Asdividend-CAPITAL;
marketinconnectionwiththepurchaseorsaleofsecurities.
shares.
iii. Exchange-ORDINARY;
Where the financial assets involved are government securities like c. The latest audited financial statements shall be
sufficient iv. InvoluntaryTransfers-NOEFFECT.
bonds, the reckoning of “20 or more lenders/investors” is made
at
in
determining the
fair market value
of
the
shares of stock
any transaction in connection with the purchase or sale of the CONDITIONALLYEXEMPTFROMCGT
subject of the sale, barter, exchange, or
other disposition.
Government Bonds. Consequently, the seller is required to
(RR20-2020) a) Proceeds o f sale of the principal residence have been fully
withhold the 20% final withholding tax on
the
imputed
interest
incomefromthebonds. utilized in
acquiring a new one within 18 months from date of
b) Income from sale of real property situated in the sale;
It must be emphasized that debt instruments that do
not qualify as Philippines;
b) The historical cost or adjusted basis of
RP
sold will be carried
deposit substitutes under the 1997 NIRC are subject to
the regular c) Income from sale, exchange, and other disposition of other overtothenewPR;
income tax. For discounted instruments, like the zero-coupon
capitalassets.
bonds, the trading gain shall be the excess
of
the
selling price over c) CIR has
been duly notified, through a prescribed return, within
the book value or accreted value (original issue price plus Type Rate Basis 30 days, from date of sale of intention to avail of tax
accumulated discount from the time of purchase up to the time of exemption.
sale)oftheinstruments. Saleofsharesofstocksnot 15% NetCapitalGains
traded d) NetofproceedsnotutilizedwillbesubjecttoCGT.
The BIR’s interpretation of “at any one time” to mean at the
e) Buyer of principal residence shall deduct 6%, deposit in
cash
pointoforiginationaloneisundulyrestrictive. - ListedandTraded 0.6% GrossSellingPrice or manager’s check in an interest-bearing account with an
Taxtreatmentofincomederived AuthorizedAgentBankunderanE scrowAgreement.
Saleofrealpropertylocated 6% GSP,FMV,higher
fromthePEACeBonds inPH EXEMPTENTITIESFROMCGT
Should there have been a simultaneous sale to 20 or more 1) Dealerinsecurities;
Saleofothercapitalassets
lenders/investors, the PEACe Bonds are deemed deposit 2) Exemptunderspeciallaws;
substitutes. Under Section 24 of the 1997 NIRC, interest income - >12Months 0-35% 50%ofCG
received by individuals from long-term deposits
or
investments with 3) Exchange
of
real property solely for shares of stock resulting in
a holding period of not less than five (5)
years
is
exempt
from
the - 12Monthsorless 0-35% 100%ofCG corporatecontrol;
finaltax.
RULES 4) GOCCsellingrealproperty;
Thus, should the
PEACe Bonds be
found
to
be
within the coverage of 5) Dispositionisgratuitous;
a. Real
properties
formerly forming part of
the
stock in trade of a
deposit substitutes, the proper procedure was for the Bureau of
Treasury to pay the face value of the PEACe Bonds to the bondholders taxpayer engaged in real estate or formerly used in trade or 6) PursuanttoCARPLaw;
and for the BIR to collect the unpaid final withholding tax business which
were later on abandoned continue to be treated
7) Requirementsabovehavebeenmet,reg.principalresidence.
directly from RCBC Capital/CODE-NGO, or any lender or investor asORDINARYa ssets.
ifsuchbethecase,asthewithholdingagents. Republicv.SpsSalvador2
017
Provided, that such is automatically converted to CAPITAL
assets upon showing proof that they have not been used in 1. It is settled that the transfer of property through
vi.Taxationofcapitalgains expropriation proceedings is a sale or exchange within
business for
more
than 2 years prior to the consummation of
thetaxabletransaction. the meaning of Sections 24(D) and 56(A)(3) of
the
NIRC,
a) Income from sale of shares of stock of a Philippine
and profit from the transaction constitutes capital gain.
Since
corporation—t hefollowingrulesshallapply:
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capital gains tax is
a tax
on
passive
income,
it
is
the
seller,
or the MWEs will not lose their exemption as such. (Soriano v. 6.IncomeTaxonCorporations
respondentsinthiscase,whoareliabletoshoulderthetax. SecretaryofFinance2 017EnBanc)
a.Domesticcorporations
2. As far as the government is
concerned, the capital
gains tax ii.Exemptionsgrantedunderinternationalagreements
in expropriation proceedings remains a liability of the i.Taxation-ingeneral
seller, as it is a tax on the seller's gain from the sale of
real 1. Officers and staff of the
ADB who are
NOT PH nationals shall
a)RegularCorporateIncomeTax(RCIT)
property. be e
xempt f
rom P
H i
ncome t
ax.
Regular Corporate Income Tax — effective January 1,
2009, the rate
b.NRA-ETB 2. Alien individual employees of foreign embassies or
ofincometaxshallbethirtypercent(30%).
international organizations in
PH are
exempt from our income
PleaseseeT axationofPassiveIncome(5[a][v])
tax based on the international agreements entered into by
PH b)MinimumCorporateIncomeTax(MCIT)
c.NRA-NETB with said international organizations or under the Vienna
UndertheMCITscheme,acorporation,
Convention.
PleaseseeT axationofPassiveIncome(5[a][v]) 1. beginningonitsfourthyearofoperation,
ResumeofIndividualIncomeTaxation
a) 25%GrossIncomeTax; 2. isassessedanMCITof2%ofitsgrossincome
PassiveIncome(FINALTAXRATE)
b) CGTonsaleofsharesofstocknottradedintheLSE; Kindof Ordinary 3. when such MCIT is greater than the normal corporate income
Individual Income Prizes& taximposedunderSection27(A).
c) CGTonsaleofrealpropertylocatedinPH. Royalties Interest Dividend
Winning
If the regular income tax is
higher than the MCIT, the corporation does
d.SpecialAliens
RC,NRC,RA GR:20% GR:20% 20%if FromDC not pay the
MCIT. Any excess of the MCIT over the normal tax shall be
1. Aliens employed by regional headquarters, regional operating >10K is10% carried f
orward a
nd c
redited a
gainst t
he n
ormal i
ncome t
ax f
or the
headquarters, offshore banking units, and petroleum service Purely Schedular 10%for 15%for threeimmediatelysucceedingtaxableyears.
Compensation
contractors. books, EFCD; PartofGI FromFC:
Carry Forward of Excess Minimum Tax. — Any excess of
the MCIT
Business Schedular literary exempt if10Kor
2. They are now subject to the regular income tax rate without or8% works forNRC < PartofGI over the normal income tax shall be carried forward and credited
and
prejudicetopreferentialratesunderexistingtaxtreaties. Professional GIT and forRC against the normal income tax for the three (3) immediately succeeding
music 5,12, Lottoor taxabley ears.
e.Individualtaxpayerse xemptf romincometax
Apply 20%for PCSOis Exempt
pre- 20%exc forNRC RCIT MCIT
i.Minimumwageearner Mixed both
terminated 10Kor< andRA
rules longterm Applicableto ALLcorporateTPs DCandRFConly
Statutory minimum wage shall refer to the rate fixed by the
RTWPB, as defined by the Bureau of Labor and Employment Taxrate 30% 2%
FromDC
Statistics(BLES)ofDOLE. Samebut is20%
NRA- Taxbase TaxableIncome GrossIncome
Minimum wage earner shall refer to a worker in the private sector GITR Same exempt Same
ETB
forEFCD FromFC
paid the statutory minimum wage or
to an
employee in
the
public When Upon Beginningonthe4thtaxable
isexempt
sector with compensation income of not more than the statutory imposable commencement yearfollowingcommencement
minimum wage in the non-agricultural sector where he/she is NRA- ofbusinessoperation
25%GITonallincomefromPHsources(FINALTAX)
assigned. NETB
IfgreaterthanMCIT IfgreaterthanRCIT
The proper interpretation of
R.A. 9504 is
that it imposes taxes only
on
the taxable income received in excess of the minimum wage, but
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Relief
from the
Minimum Corporate Income Tax Under Certain 1. Proprietary Educational Institutions
that
are
subject
to
the
Conditions. — Imposition of MCIT is suspended on any preferential10%rate; The claimed deduction should be a direct cost or expense.
A
corporation 2. Non-profit Hospitals that are subject to
the
preferential
10% cost or expense is
deemed
"direct"
when it
is
readily
attributable
to
1. which suffers losses on account of prolonged labor rate; theproductionofthegoodsorfortherenditionoftheservice.
dispute,or For (1) and (2), the income derived from unrelated trade, Premium taxes, though payable by MBLIC, are not direct costs
2. becauseoff orcemajeure,or business, or activity should not exceed 50% of the gross within the contemplation of the phrase "cost of
services,"
incurred
income. as they are AFTER the sale of service had already transpired.
3. becauseofl egitimatebusinessreverses.
This cannot therefore be considered as the equivalent of raw
"Substantial losses from a prolonged labor dispute" means 3. PEZA-registered entities for registered activities that are materials, labor,
and
manufacturing cost
of deductible "cost of sales"
losses arising from a strike
staged by
the employees which
lasted subjectto5%preferentialrate; inthesaleofgoods.
for more
than six
(6) months within a taxable
period
and
which 4. OffshoreBankingUnits;
AssociationofInternationalShippingLines,Inc.etal.v.SOF2020
hascausedthetemporaryshutdownofbusinessoperations. 5. International Carriers subject to 2.5% of Gross Philippine
GrossIncomeDefined Billings. WON demurrage and
detention fees are subject to the preferential
taxrateof2.5%ofGrossPHBillings.
1. gross income = gross sales — sales returns, discounts and AegisPeopleSupport,Inc.v.CIR2019
allowancesandcostofgoodssold. NO. They are properly regular
income
subject to regular income
Section 4 of R.A. No. 7916 provides that enterprises located within tax
rate.
The GPB covers gross revenue derived from transportation
2. 'Cost of goods sold' shall include all business expenses the recognized economic or
trade zones "are
granted preferential tax of
passengers, cargo
and/or mail
originating
from the Philippines up
directly incurred to
produce the merchandise to
bring
them
to treatment." Any income earned by a PEZA-registered enterprise to
the
final
destination. Any
other income,
therefore, is subject to the
theirpresentlocationanduse. which is
NOT related to its registered activities
is NOT covered regularincometaxrate.
bytheincentivesg rantedunderR.A.No.7916andEONo.226.
3. Inthecaseoftaxpayersengagedinthesaleofservice,
The exclusion of
demurrage and
detention fees
from
the
preferential
gross income = gross receipts — sales returns, allowances, A hedge is an investment undertaken to reduce the risk
of
adverse rate of 2.5% is proper since they are not considered income
price movements in an asset. Simply put, it is a loose form of derived from transportation of persons, goods and/or mail, in
discountsandcostofservices. insurance against value or price fluctuations of a particular accordancewiththerulee xpressiouniosestexclusioalterius.
4. 'Cost of services' shall mean all direct costs and expenses asset. Any occurring fluctuation in local currency value before the
necessarily incurred to provide the services required by the conversion of foreign currency does not result in the realization of Demurrage and detention
fees
definitely form part of an international
anygainorloss. sea carrier's gross income. For they are acquired in the normal
customersandclientsincluding
courseoftradeorbusiness.
a. salaries and employee benefits of personnel, In the instant case, petitioner may validly enter into a hedging
consultants and specialists directly rendering the contract to manage its foreign currencies on-hand earned as gross c)Taxationofpassiveincome
serviceand revenues. Consequently, the Court considers hedging to be very
much related to its
registered activities
and, hence, still subject PassiveIncome Rate
b. cost of facilities directly utilized in providing the toapreferentialtaxtreatmentunderRA7916andEO226.
service such as depreciation or rental of equipment Interestundertheexpandedforeigncurrencydeposit
15%
usedandcostofsupplies. ManilaBankers'LifeInsuranceCorp.v.CIR2019 (EFCD)system
c. In the case of banks, 'cost of services' shall
include "Gross income" as
used
in
determining
MCIT means "gross receipts RoyaltyofalltypeswithinPH 20%
interestexpense. less sales
returns,
allowances, discounts
and
cost of services." "Cost
of services" means all DIRECT costs and expenses necessarily - Fromabroad 30%
ExceptionstoMCIT
incurred to provide the services required by the customers and
Corporationssubjecttos pecialtaxratesa ree
xemptf romMCIT: clients. Interestonanycurrentbankdeposit,yieldorother
20%
monetarybenefitsfromdepositsubstitute,trustfund
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corporation, by permitting earnings and profits to e) Reasonable Needs of the Business. — includes the
andsimilararrangement
accumulateinsteadofbeingdividedordistributed. reasonablyanticipatedneedsofthebusiness.
IntercorporatedividendfromotherDCs EXEMPT
2) Exceptions.-TheIAETshallnotapplyto: a. Allowance for the increase in the accumulation of
earningsupto1
00%ofthepaid-upcapital;
TaxRateofBanksonincomederivedundertheEFCDSystem a. Publicly-heldcorporations;
b. For
definite
corporate
expansion
projects
or programs
Incomederivedbyadepositorybankfromforeign b. Banks and other nonbank financial
EXEMPT requiringconsiderablecapitalexpenditure;
currencytransactionswithnonresidents,OBUs intermediaries;and
c. Forbuilding,plants,orequipmentacquisition;
c. Insurancecompanies;
Interestincomefromforeigncurrencyloansgranted
10% d. For
compliance
with any loan covenant or pre-existing
byabanktoresidentsotherthanOBUs d. Taxablepartnerships;
obligation;
e. Foreigncorporations.
d)Taxationofcapitalgains e. Earningsrequiredbylaworregulationstoberetained;
c) EvidenceofPurposetoAvoidIncomeTax.—
OnsaleofsharesofstockofaDCNOT 15%ofnetcapital f. In the case o
f subsidiaries of F
Cs in PH, all
tradedthroughalocalstockexchangeheld gains 1) Prima Facie Evidence. - the
fact that any corporation undistributed earnings intended for investments
asacapitalasset is a mere holding
company or
investment company withinPH.
shall be
prima facie evidence of a purpose to avoid the
OnsaleofrealpropertyinPHheldasa 6%ofGSPorcurrent CyanamidPhilippines,Inc.v.CAonIAET
taxuponitsshareholdersormembers.
capitalasset MVwhicheverishigher In order to determine whether profits are accumulated for the
2) Evidence Determinative of
Purpose.
- The fact
that
reasonable needs of the business to avoid the surtax upon
Ifsharesofstockarelistedandtraded 6/10of1%ofGSPor the earnings or profits of
a corporation are permitted shareholders, it must be shown that the controlling intention of
throughLSE grossvalue to accumulate beyond the reasonable needs of the the taxpayer is manifested at the time of accumulation, not
business shall be determinative of the purpose to intentions declared subsequently, which are mere afterthoughts.
IfsharesnottradedthroughtheLSE 15%ofnetcapital Furthermore, the accumulated profits must be used within a
avoid the tax upon its shareholders or members unless
gains reasonabletimea fterthecloseofthetaxableyear.
the corporation, by the clear preponderance of
e)Improperlyaccumulatedearningstax evidence,shallprovetothecontrary.
To determine the ‘reasonable needs’ of the business in order to
d) Improperly Accumulated Taxable Income.
— means taxable justify an accumulation of earnings, the Courts of the United States
a) In
General. — In
addition to other taxes imposed by this Title, incomeadjustedby: have invented the so-called ‘I mmediacy Test’ which construed the
there is hereby imposed for each taxable year on the
a. Incomeexemptfromtax; words ‘reasonable needs of the business’ to mean the immediate
improperly accumulated taxable income of each corporation an needs of the business, and it was generally held that if the
improperly accumulated earnings tax equal to ten percent b. Incomeexcludedfromgrossincome; corporation did not
prove an immediate need for the accumulation of
(10%)o ftheimproperlyaccumulatedtaxableincome. the
earnings and profits, the accumulation was not for the reasonable
c. Incomesubjecttofinaltax;and needsofthebusiness,andthepenaltytaxwouldapply.
b) Tax on Corporations Subject to Improperly Accumulated
d. Theamountofnetoperatinglosscarry-overdeducted;
EarningsTax.— ii.Proprietaryeducationalinstitutionsandnon-profithospitals
Andreducedbythesumof:
1) In General. - The
IAET
imposed
shall apply
to
every Proprietary educational institutions and hospitals which are
corporation formed or availed for the purpose of a. Dividendsactuallyorconstructivelypaid;and
nonprofit
shall
pay of ten
a tax percent
(10%) on their taxable
avoiding the income tax with respect to its
b. Incometaxpaidforthetaxableyear. incomeexceptt hosecoveredbySubsection(D)hereof:
shareholders or the shareholders of any other
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Provided, that if the gross income from 'unrelated trade, imposed by this Section upon corporations or associations
business or other activity' exceeds fifty percent (50%) of the St.
Luke’s fails to
meet
the
requirements under Section 30(E) and (G) engagedinasimilarbusiness,industry,oractivity
total gross income derived by such educational institutions or of the NIRC to be completely tax exempt from all its income.
except
hospitals from all sources, the tax prescribed in Subsection (A) However, it remains a proprietary non-profit hospital under Section
hereofshallbeimposedonthee ntiret axableincome. 27(B) of
the NIRC as long as it does not distribute any of its profits to a) theGovernmentServiceInsuranceSystem(GSIS),
its
members and such profits are reinvested pursuant to its corporate
For purposes of
this Subsection, the term 'unrelated trade, business purposes. St. Luke’s, as a proprietary non-profit hospital, is b) theSocialSecuritySystem(SSS),
or other activity' means any trade, business or other activity,
the entitled to the preferential tax rate of 10% on its net income
c) the Philippine Health Insurance Corporation (PHIC),
conduct of which is not substantially related to the exercise or fromitsfor-profitactivities.
and
performance by such educational institution or hospital of its
primarypurposeorfunction. LaSallianEducationalInnovatorsFoundationv.CIR2019 d) thelocalwaterdistricts.
A 'proprietary educational institution' is any private school PAGCORv.BIR,2014
No
less than
the
1987
Constitution expressly exempt ALL revenues
maintained and
administered by
private individuals or groups with and assets of non-stock, non-profit educational institutions from We uphold our earlier ruling that Section 1 of R.A. No. 9337,
an
issued
permit to
operate
from the DepEd, or CHED, or TESDA, as taxes provided that they are actually, directly and exclusively used for amending Section 27(c) of R.A. No. 8424, by excluding petitioner
thecasemaybe,inaccordancewithexistinglawsandregulations. educational purposes. This constitutional exemption is
reiterated
in from the enumeration of GOCCs exempted from corporate income tax,
Section30(H)ofthe1997TaxCode,asamended. isvalidandconstitutional.Inaddition,weholdthat:
CIRv.St.Luke’sMedicalCenter2
012
Based on jurisprudence and tax rulings, a taxpayer
shall
be
granted 1. Petitioner’s tax privilege of paying five percent (5%)
The
Constitution exempts charitable institutions only
from real withthistaxexemptionafterprovingthat: franchise tax in lieu of all other taxes with respect to its
property taxes. In the NIRC, Congress decided to extend the income from gaming operations, pursuant to P.D. 1869, as
1) it falls under the classification of non-stock, non-profit
exemption to
income taxes.
Section
30(E) of the NIRC provides that a amended, is
not
repealed or amended by Section 1(c) of R.A.
educationalinstitution;and
charitableinstitutionmustbe: No.9337;
2) the income it seeks to be exempted from taxation is used
2. Petitioner’s income from gaming operations is
subject
to
1) Anon-stockcorporationorassociation; actually, directly and exclusively for educational
thefivepercent(5%)franchisetaxonly;and
2) Organizedexclusivelyf orcharitablepurposes; purposes.
3. Petitioner’s
income
from
other related
services
is
subject
3) Operatedexclusivelyforcharitablepurposes;and Article XIV, Section 4(3) does not require that the revenues and toc orporateincometaxonly.
4) No
part
of
its
net
income
or asset shall belong to or inure to income must have also been earned from educational activities or
the
benefit of
any
member,
organizer, officer
or
any specific activities related to the purposes of an educational institution. The iv.Foreigncurrencydepositunits
person. phrase "all
revenues" is
unqualified by any reference to the source of
revenues. Thus, so long as the revenues and income are USED Income derived by
a depository bank under the expanded foreign
Thus, both the organization and operations of the charitable actually, directly and exclusively for educational purposes, then currency deposit system from foreign currency transactions with
institution must be devoted “exclusively” for charitable purposes. said revenues and income shall be exempt from taxes and non-residents, offshore banking units in the Philippines, local
Likewise, to
be
exempt
from
income taxes, Section 30(G) of the NIRC duties. commercial banks including branches of
foreign banks that may be
requires that the institution be “operated exclusively” for social
authorized by the BSP to transact business with foreign currency
welfare. However, the last paragraph of Section 30 of the NIRC iii.GOCCs,agencies,instrumentalities
qualifies the words “o rganized and operated exclusively.” In short, deposit
system shall be
EXEMPT from
all taxes, except net income
the last paragraph of Section 30 provides that if a tax exempt 1) The provisions of existing special or general laws to the fromsuchtransactions.
charitable institution conducts “any” activity for profit, such contrary notwithstanding, all corporations, agencies, or Interest income from foreign currency loans granted by such
activity is NOT tax exempt even as its not-for-profit activities instrumentalities owned or controlled by the Government, depository banks under said expanded system to residents other
remaintaxexempt. SHALL PAY such rate of tax upon their taxable
income
as
are than offshore banking units
in
the
Philippines
or
other depository
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banks under the
expanded
system,
shall
be subject to a final tax at income tax
rate.
(Association
of
International Shipping Lines v.
Interestonanycurrentbankdeposit,yieldorother
therateoftenpercent(10%). monetarybenefitsfromdepositsubstitute,trustfund 20% SOF2020case)
Any
income of
nonresidents, whether individuals or corporations, andsimilararrangement b)Foreigncurrencydepositunitsandoffshorebankingunits
from transactions with depository banks under the expanded EXEMPT
IntercorporatedividendfromDCs Income derived by
offshore banking units authorized by the BSP,
systemshallbeE XEMPTfromincometax.
from foreign currency transactions with non-residents, other
b.Residentforeigncorporations e)Taxationofcapitalgains offshore banking units, local commercial banks, including branches
of foreign banks that may be authorized by the BSP to transact
i.Taxation-ingeneral
OnsaleofsharesofstockofaDCNOTtradedthroughalocalstock business with offshore banking units shall be EXEMPT from all
a)RegularCorporateIncomeTax(RCIT) exchangeheldasacapitalasset taxese xceptn etincomefromsuchtransactions.
SamewithDC 5%ofnetcapital Any
interest
income derived from foreign currency loans granted to
- CapitalgainsnotoverPhp100K
gains residents other than offshore banking units or local commercial
b)MinimumCorporateIncomeTax(MCIT)
banks, including local branches of foreign banks that may be
10%ofnetcapital
SamewithDC - Capitalgains>Php100K authorized by the BSP to transact business with
offshore banking
gains
units,shallbesubjectonlytoafinaltaxattherateof1 0%.
c)BranchProfitsRemittanceTax(BPRT)
OnsaleofrealpropertyinPH 30%RCIT Any income of nonresidents,
whether
individuals or
corporations,
Any profit remitted by a
branch to its head office shall be subject to
from transactions with said offshore banking units shall be
a
tax 1
of 5% which shall be based on the total profits applied or ii.Residentforeigncorporationssubjecttopreferentialtaxrates
EXEMPTfromincometax.
earmarked for remittance without any deduction for the tax
a)Internationalcarriers
component thereof except those activities which are registered with c)Regionalorareaheadquartersandregionaloperating
thePEZA. An international carrier
doing business in the Philippines shall pay headquarters
ataxof2.5%onits'GrossPhilippineBillings.' 1) RAHQisabranchestablishedbymultinationalswhich
Interests, dividends, rents, royalties, including remuneration for
technical services, salaries, wages premiums, annuities, 1. Under RA 10378, international carriers doing business in PH a) DonotearnorderiveincomefromPH;and
emoluments or other fixed or determinable annual, periodic or mayavailofapreferentialrateorexemptionfromtaxbasedon
casual gains, profits, income and capital gains received by a foreign b) Acts as supervisory, communications and
a) Atreatyorinternationalagreement;or coordinating center
for
their
affiliates,
subsidiaries
or
corporation during each taxable year from all sources within the
Philippines shall not be treated as branch profits unless the b) Thebasisofreciprocity. branchesintheAsia-Pacific.
same are
effectively connected with the conduct of its trade or RAHQsareE
XEMPTfromincometax.
2. GPBrefersto
businessinthePhilippines.
a) Gross revenue derived from carriage of persons, 2) ROHQisabranchengagedinanyofthefollowingservices:
d)Taxationofpassiveincome
excessbaggage,cargoandmail; a) generaladministrationandplanning;
PassiveIncome Rate
b) Originating from PH in a continuous and uninterrupted b) businessplanningandcoordination;
Interestundertheexpandedforeigncurrencydeposit flight;
7.5% c) sourcing and procurement of raw materials and
(EFCD)system c) Irrespective of the place
of
sale or
issue
and the place components;
RoyaltyofalltypeswithinPH 20% of p
ayment o
f t
he t
icket.
d) corporatefinanceadvisoryservices;
3. Note that for international shippers, demurrage and detention
- Fromabroad EXEMPT e) marketingcontrolandsalespromotion;
fees are NOT part of GPB as they are subject to the regular
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f) trainingandpersonnelmanagement; CIRv.InterpublicGroupofCompanies2
019 c) Beneficiary society, order or association, operating for the
exclusive benefit of the members such as a fraternal
g) logisticservices; Can an
NRFC which
collects
dividends
from
the
Philippines
sue
here
toclaimtaxrefund? organization operating under the lodge system, or mutual aid
h) research and development services and product association or
a nonstock corporation organized by employees
development; YES. Mere investment as a shareholder by a foreign providing for the payment of life,
sickness, accident, or
other
corporation in a duly registered domestic corporation shall benefits exclusively to the members of
such
society,
order, or
i) technicalsupportandmaintenance;
NOT be deemed "doing business" in the Philippines. It is clear association,ornonstockcorporationortheirdependents;
j) dataprocessingandcommunications;and then that
the IGC's
act
of
subscribing shares
of
stocks from McCann,
maintaining investments therein, and deriving dividend income d) Cemetery company owned and operated exclusively for the
k) businessdevelopment. therefrom, does
not
qualify as
"doing business" contemplated under benefitofitsmembers;
R.A. No. 7042. Hence, the IGC is
not
required to
secure a license e) Nonstock corporation
or
association organized and operated
ROHQsa retaxed1
0%ontaxableincome.
beforeitcanfileaclaimfortaxrefund. exclusively
c.Non-residentforeigncorporations(NRFC)
The general rule that a foreign corporation is the same juridical i) for
religious,
charitable,
scientific,
athletic, or cultural
i.TaxationofNRFCingeneral entity as
its
branch
office in the Philippines cannot apply here. When purposes,or
the foreign corporation transacts business in the Philippines
NRFCs
are
subject 30% income
to tax gross
on income derived independently of its branch, the principal-agent relationship is
set ii) fortherehabilitationofveterans,
duringeachtaxableyearfromallsourceswithinPH. aside. no
part
of
its
net income or asset shall belong to or inure to the
benefitofanymember,organizer,officeroranyspecificperson;
PassiveIncome Rate The RP-US Tax Treaty created a treaty obligation on the part of the US
that it "shall allow" to a US parent corporation receiving dividends f) Business league chamber of commerce, or board of trade,
Interestonforeignloans,i.e.lendingtoDC 20% from its Philippine subsidiary "a tax credit for the appropriate not organized for profit and no part of the net income of
amount of taxes paid or accrued to the Philippines by the said which inures to the benefit of any private stock-holder, or
IntercorporatedividendfromDC Philippine subsidiary. The IGC, being a non-resident US
corporation individual;
- Subject to a condition that the country of is qualified to avail of
the aforesaid 15% preferential tax rate on
domicile of the NRFC allows a credit
against 15% the dividends it earned from the Philippines. It
was
proven that the g) Civic league or organization not organized for profit but
the tax due from the NRFC taxes deemed to country which it was domiciled shall grant similar tax
relief/credit operatedexclusivelyforthepromotionofsocialwelfare;
havebeenpaidinPHequivalentto15%. against the tax due upon the dividends earned from sources within
h) Anonstockandnonprofiteducationalinstitution;
the Philippines. Clearly, the IGC has made an overpayment of
its
- Otherwise 30% taxdueofFWTbyusingthe35%taxrate. i) Governmenteducationalinstitution;
Since the RP-US Tax Treaty does not provide for any other j) Farmers' or other mutual typhoon or fire insurance
ii.NRFCssubjecttopreferentialtaxrates
prerequisite for
the
availment
of
the
benefits under the said treaty, to company, mutual ditch or irrigation company, mutual or
1) Cinematographic Film Owner, Lessor or Distributor. — impose additional requirements would negate the availment of the cooperative telephone company, or like organization of a purely
25%; reliefsprovidedforunderinternationalagreements. local character, the income of which consists solely of
assessments, dues, and fees collected from members for the
2) Owner or Lessor of Vessels Chartered by Philippine d.Corporationse
xemptf romincometax solepurposeofmeetingitsexpenses;and
Nationals. — 4% of
gross rentals,
lease
or
charter
fees
from
a) Labor,
agricultural
or
horticultural organization not organized k) Farmers', fruit growers', or like association organized and
leases or charters to Filipino citizens or corporations, as
principallyforprofit; operated as a sales agent for the purpose of marketing the
approvedbyMARINA;
products of its members and turning back to them the proceeds
b) Mutual savings bank
not
having a capital
stock represented by
3) Owner or Lessor of Aircraft, Machineries and Other of
sales,
less the
necessary selling expenses on the basis of the
shares, and cooperative bank without capital stock organized
Equipment.—7.5%ofgrossrentalorfees. quantityofproducefinishedbythem;
andoperatedformutualpurposesandw ithoutprofit;
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The income of whatever kind and character of the foregoing c. Provision of
welfare
aid
and
financial assistance to its 2) Those subject to tax — those that derive income from trade
organizations from
any
of their properties, real or personal, or from any members; except life, sickness, accident and other or business and are considered as
corporations under
the
of their activities conducted for profit regardless of the disposition benefits. TaxCode.
madeofsuchincome,shallbesubjecttotax.
d. Donationtoanypersonorentity; Withregardto Nontaxable Taxable
GR: These entities are exempt from income tax because they
e. Purchase of goods or services in excess of the FMV Partner’sdistributive
are n
ot intended for profit. They earn income to Willformpartof
from an
entity
in
which one
or
more trustees, officers shareinthenetincome
realizetheirpurpose. partner’sgrossincome
orfiduciarieshaveaninterest;and Distributive issubjecttoa1
0%
EXC: hey can still be subject to tax regardless of the
T intheITRsubjectto
share finaltax,exceptf or
f. When upon dissolution and satisfaction of all graduatedincometax
dispositionofincome NRA-ETBwhichis
liabilities, its remaining assets are distributed to its rates
subjectto2 0%
1. Earned income of whatever kind and character by using
trustees,organizers,officersormembers.
theirproperty,realorpersonal. Maybeclaimedasa
2. Incomefromactivitiesconductedforprofit. Requisites for the Tax Exemption under Sec 30 exc Non-Stock, Partner’s share NOTdeductiblesince
deductibleexpensein
Non-ProfitEducationalInstitution( RMO38-2019) innetloss subjecttofinaltax.
EXCtoEXC: hispersonalITR
Article XIV, Section 4 of the
Constitution
provides
that:
― a) Itisanon-stock,non-profitcorporation;
Stillrequiredtofilean
All revenues and assets of non-stock, non-profit b) No part of the corporation or association’s net income shall annualinformation
Deemedandtreatedas
educational institutions used actually, directly, and inuretothebenefitofanyprivateindividual;and How returnontheirincomes
corporationssubjectto
exclusively for educational purposes shall be exempt from partnershipis andexpensesforthe
thecorporateincome
taxesandduties. c) Thetrusteesdonotreceiveanycompensationorremuneration. taxed purposeofascertaining
taxrate.
thepartners’taxable
Inshort,tobeexempt d) In case of dissolution, assets shall be transferred to similar shares.
institutionsortothegovernment.
1. Thecorporationpassedthe
Requisites for a Joint Venture not to be considered a taxable
e.Taxonotherbusinessentities:generalpartnerships,
a. Organizational Test
— constitutive documents must corporation
generalprofessionalpartnerships,co-ownerships,joint
show that its primary purpose of incorporation fall
ventures,a ndconsortia 1) The JV should be for the undertaking of a construction
underSec30oftheNIRC;and
project;
Therearetwokindsofpartnershipsforincometaxpurposes:
b. Operational Test — the regular activities must be
2) Should involve
joining
or
pooling
of resources by licensed
exclusively devoted to the accomplishment of such 1) ThoseNOTsubjecttoincometax
localcontracts;
purpose.
a) GPPs;
3) The contractors are
engaged
in
the
construction
business;
2. Must be non-profit — Non-inurement Rule. What are
b) Joint venture
or
consortium agreement formed
for the and
consideredasinurements:
purposeof
4) TheJVitselfmustbelicensedunderPCAB.
a. Payment of compensation, salaries,
or
honorarium to
i) Undertakingconstructionprojects;or
itstrusteesororganizers; DeterminationofOSDbytheGPPanditsPartners
ii) Engaging in petroleum, coal, geothermal and
b. Payment of exorbitant or unreasonable compensation 1. GPP and the professional partners may avail of OSD only
other energy operations pursuant to an
toitsemployees; ONCE;
operating or consortium agreement under a
servicecontractwiththegovernment. 2. Distributable net income of GPP may be determined using ID or
OSD;
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3. Share
in
the
net
income
of
the
GPP
shall
be reported as taxable 4. A minimum wage earner or an individual who is exempt consolidated return
on
or
before
April 15 of each year
incomeofeachpartner; fromincometax.(S ec51) covering all stock transactions of the preceding taxable
year;and
4. The professional partners can no longer claim further ii.Substitutedfiling
deduction from their distributive share regardless of method b. From the
sale
or
disposition of real property shall file
usedinclaimingdeduction; Whoshallnotberequiredtofileanannualincometaxreturn? a return within thirty (30) days following each
sale
1. Individualtaxpayers orotherdisposition.(Sec50[c])
5. However, if the partner also derives
other
income
outside the
GPP,
then
the deduction from the
other income would either be 2. receivingpurelycompensationincome,regardlessofamount, Return of Parent to Include Income of Children. — The income of
IDorOSD. unmarried minors derived from properly received from a living
3. from only one employer in the Philippines for the calendar
parentshallbeincludedinthereturnoftheparent,e xcept
7.FilingofReturnsandPayment year,
1. whenthedonor'staxhasbeenpaidonsuchproperty,or
a.Individualreturn 4. the income tax of which has been withheld correctly by the
saidemployer(taxdueequalstaxwithheld). 2. when the
transfer of
such
property is
exempt from donor's tax.
i.W hoarerequiredtofile;exceptions (Sec50[e])
The
certificate of
withholding filed
by the respective employers, duly
1. EveryFilipinocitizenresidinginthePhilippines; stamped 'received' the BIR, shall be tantamount to the substituted b.Corporatereturns
by
2. Every Filipino citizen residing outside
the
Philippines,
on
his filingofincometaxreturnsbysaidemployees.(S ec51-A)
Every corporation subject to the tax herein imposed, except foreign
incomefromsourceswithinthePhilippines; iii.W henandwheretofile corporations not
engaged in
trade
or business in
the
Philippines, shall
3. Every
alien residing in the Philippines, on income derived from render,induplicate,atrueandaccurate
WheretoFile.—
Thereturnshallbefiledwith
sourceswithinthePhilippines;and 1. quarterly income tax return, on a cumulative basis for the
1. Anauthorizedagentbank, precedingquarters,and
4. Every nonresident
alien
engaged in
trade
or
business
or
in
the
exerciseofprofessioninthePhilippines. 2. RevenueDistrictOfficer, 2. finaloradjustmentreturn,onorbeforeApril15.
The following
individuals
shall
not
be
required
to
file
an
income
tax 3. CollectionAgentor i.Quarterlyincometax
return: 4. Duly
authorized Treasurer of
the
city
or municipality in which
1. Every corporation shall file in
duplicate
a quarterly
summary
1. Anindividualwhosetaxableincomed
oesnotexceedP250K. such person has his legal residence or principal place of
declaration of its gross income and deductions on a
businessinthePhilippines,or
Those individuals engaged in business or practice of cumulativebasisf ortheprecedingquarterorquarters.
profession within the Philippines shall file an income tax 5. If there be no legal residence or place of business in the
2. The tax so computed shall be decreased by
the amount of
tax
return,regardlessoftheamountofgrossincome; Philippines,withtheOfficeoftheCommissioner.(Sec50[b])
previously paid or
assessed during the preceding quarters and
2. Purelycompensationincomeearners. WhentoFile.— shall be paid not later than
sixty
(60) days from the
close of
each of
the first
three (3) quarters of
the taxable year, whether
However, an individual deriving compensation concurrently 1. On or before April 15 of each year covering income for the
calendarorfiscalyear.(S ec75)
from two or more employers at any time during the taxable precedingtaxableyear.
yearshallfileanincometaxreturn. ii.F inaladjustmentreturn
2. Individualssubjecttotaxoncapitalgains;
3. An
individual
whose
sole
income
has
been
subjected
to FWT; a. From the sale or exchange of shares of stock not traded 1. Every corporation shall file
a final adjustment return
covering
and thru a local stock exchange shall file a return
within the total taxable income for the preceding calendar or fiscal
thirty (30) days after each transaction and a final year.
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2. If the
sum
of
the quarterly tax payments made during the said 2. The dissolving or reorganizing corporation shall, prior to
the withheldbythewithholding incomepaymentsareintendedto
taxable year is not equal to the total tax due on the entire issuance by the SEC of the Certificate of Dissolution or agentisconstitutedasafulland equaloratleastapproximatethe
taxableincomeofthatyear,thecorporationshalleither: Reorganization, secure a certificate of tax clearance from the finalpaymentoftheincometax taxdueofthepayeeonsaid
BIRwhichcertificateshallbesubmittedtotheSEC.(S ec52[c]) duefromthepayeeonthesaid income.
a. Paythebalanceoftaxstilldue;or
c.Returnoncapitalgainsrealizedf romsaleofsharesof
income.
b. Carry-overtheexcesscredit;or
stockandrealestate
b)Theliabilityforpaymentof b)Payeeofincomeisrequiredto
c. Be credited or
refunded
with
the
excess
amount
paid,
thetaxrestsprimarilyonthe reporttheincomeand/orpaythe
asthecasemaybe.
SaleorexchangeofstockNOT Within30daysaftereach payorasawithholdingagent. differencebetweenthetax
3. Option shall
be
considered
irrevocable
for
that
taxable
period. tradedthroughLSE transactionandfinal withheldandthetaxdueonthe
(Sec76) consolidatedreturnonorbefore
income.Thepayeealsohasthe
April15
righttoaskforarefundifthetax
iii.W henandwheretofile
Saleordispositionofreal Within30daysfollowingeach withheldismorethanthetaxdue.
Wheretofile.—
sameasIndividual. property saleorotherdisposition
c)Thepayeeisnotrequiredto c)Theincomerecipientisstill
WhentoFile.— Gainsreceivedbyinstallment Within30daysfromreceiptof fileanincometaxreturnforthe requiredtofileanincometax
eachinstallment. particularincome. return,asprescribedinSec.51
1. The corporate quarterly declaration shall be filed within sixty
andSec.52oftheNIRC,as
(60) days following the close of each of the first three (3)
8.WithholdingTax amended.
quartersofthetaxableyear.
a.Concept b.Finalwithholdingtax
2. The final adjustment return shall
be filed
on or
before
April
15, or on or
before the
fifteenth (15th) day
of the
fourth
(4th) The types of income subject to withholding tax are
divided
into
three 1. Income subject to
final
tax
refers
to
income wherein
tax due is
monthfollowingthecloseofthefiscalyear,asthecasemaybe. categories: fully
collected through the withholding tax system, wherein the
iv.Returnofcorporationscontemplatingdissolutionor
a) withholdingoffinaltaxoncertainincomes; payor of
the
income withholds the
tax
and then remits it to the
reorganization government.
b) withholdingofcreditabletaxatsourceand
2. SomeprinciplesofFWT
1. Every corporation shall, within thirty (30) days after the c) tax-freecovenantbonds.
adoptionbythecorporationofaresolutionorplan a) Theamountoftaxwithheldisfullandfinal.
Thewithholdingtaxsystemwasdevisedforthreeprimaryreasons:
a. foritsdissolution,or b) The liability for payment rests primarily on the
1. to provide the taxpayer a convenient manner to meet his withholdingagent.
b. for the liquidation of the whole or any part of its probableincometaxliability;
capital stock, including a corporation which has been 2. to
ensure the
collection
of
income tax
which
can
otherwise be c) In
case
of failure to withhold, the agent is liable for the
notified of possible involuntary dissolution by the lost or substantially reduced through failure to file the deficiency.
SEC,or correspondingreturnsand d) The payee is not required to file any ITR for the
c. foritsreorganization, 3. toimprovethegovernment'scashflow. particularincome.
render a correct return to the Commissioner, verified under e) The finality of withheld tax is limited on that
FWT CWT
oath,settingforththetermsofsuchresolutionorplan. particular income and will not extend to the payee’s
a)Theamountofincometax a)Taxeswithheldoncertain othertaxliabilityonsaidincome.
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c.Creditablewithholdingtax
Individualpayee 1%
The Secretary of Finance may require the withholding of a tax
on Paymentsbythegovernmenttolocalsupplierse xcept (goods)
the items of income payable to natural or juridical persons, residing - Ifgrossincome>P3MorVAT-registered 10% ifbelowP10K 2%
(services)
in the Philippines, by payor-corporation/persons as provided for - IfgrossincomedidnotexceedP3M 5%
by law, at the rate
of
not
less
than
one
percent
(1%) but
not more IncomepaymentstopartnersofGPP
than fifteen percent (15%) of the income payment, which shall be Non-individualpayee
credited against the income tax liability of the taxpayer for the - Ifgrossincome>P720K 15%
taxableyear. - Ifgrossincome>P720K 15%
- IfitdoesnotexceedP720K 10%
1. Creditable tax must be withheld at source,
but
should
still
be - IfgrossincomedidnotexceedP720K 10%
includedinthetaxreturnofrecipient. Incomepaymentsmadebypoliticalpartiesand
Rentalsforcontinueduseorpossessionofreal candidatesforallpurchasesofgoodsandservicesas
2. Therearethreetypes: propertiesusedinbusiness,whichthepayorhasnot 5% campaignexpenditures,aswellasincomepayments
5%
takentitle madebyindividualsandjuridicalentitiesforall
a) Expanded withholding tax on certain income payments
purchasesintendedtobegivenascampaign
madebyprivatepersonstoresidenttaxpayers; Cinematographicfilmrentalsandotherpayments 5% contribution
b) WithholdingtaxoncompensationincomeinPH;
Incomepaymentstocertaincontractors,general Interestincomefromotherinstruments,i.e.not
2% 15%
c) Withholding tax on money payments of the engineering,generalbuilding,specialtyandother depositsubstitutes
government. contractors
CIRv.SolidbankreiteratedinC
IRv.CitytrustInvestmentPhils.
i.Expandedwithholdingtax Incomedistributedtothebeneficiariesofestatesand
15%
trusts
WhenEWTwillapply Whetherthe20%FWTFormsPartoftheTaxableGrossReceipts
Incomepaymentstocertainbrokersandagents 10%
1. Expense is paid by the taxpayer, which is income to the YES. Although the 20% FWT on respondent's interest income was
recipientthereofsubjecttoincometax; not actually
received by respondent because it
was
remitted directly
RealpropertywhichareNOTcapitalassetssoldbya 1.5%or
to the government, the fact that the
amount redounded to
the
bank's
2. Incomeisfixedordeterminableatthetimeofpayment; personengagedintherealestatebusiness 3%or5%
benefit makes it part of the taxable gross
receipts in
computing the
- IfNOTengagedinrealestatebusiness 6% 5%GRT.
3. Income is one of the income payments listed in the regulations;
and In a withholding tax system, the payee is the taxpayer, the person
Onadditionalpaymentsbyimporters,shippingand
4. IncomerecipientisaRESIDENTofthePHliabletoincometax. on whom the tax is
imposed; the
payor, a separate entity, acts as
no
airlinecompaniestogovernmentpersonnelforOT 15%
more than
an
agent
of the government for the collection of the tax in
services
If the recipient is a nonresident, then income payment is order to ensure its payment. In our withholding tax system,
subjecttoF WT,notCWT. possession is acquired by the
payor as the withholding agent of
the
Ontheamountpaidbyanycreditcardcompanytoany 1%of½of
government, because the taxpayer ratifies the very act
of
possession
ii.W ithholdingtaxoncompensation businessentityrepresentingthesaleofgoods, gross
for the government. There is thus constructive receipt. The
servicesmadebythemtocardholders amounts
processes of bookkeeping and accounting for interest on deposits
IncomesubjecttoCWT Rate and yield on
deposit substitutes that are subjected to FWT are indeed
1%
Paymentsmadebyanyofthetopwithholdingagents (goods) --forlegalpurposes--tantamounttodelivery,receiptorremittance.
Professionalfees,promotionalandtalentfees,referredby
individuals,entertainers,andathletes totheirlocalsuppliers 2%
(services)
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d.Fringebenefitstax Value added is the difference between total sales of the
profit, for purposes of determining liability for VAT on services
taxpayer for the taxable quarter subject to VAT and his total rendered. As long as the entity provides service for a fee,
A
final
tax 35% is
of hereby
imposed on the grossed-up monetary
purchasesforthesameperiodsubjectalsotoVAT. remuneration or consideration, then the service rendered is
valueoffringebenefit.2 5%forNRA-NETB
subjecttoVAT.
Output tax means
the
VAT
due
on
the
sale
or
lease
of
taxable
goods, properties or services by any person registered or
MV
GU M V = 65% F BT = GU M V x 35% requiredtoregister.
c. Tax on consumption. — VAT is broad-based because every
sale at the levels of manufacturers or producers and
Input
tax means the
VAT due from
or paid by a VAT-registered distributors is subject to VAT. The tax burden rests with the
person in
the
course of
his trade or business on importation of final consumer who consumes the goods, properties or
e.Dutiesofawithholdingagent goods or local purchase of goods, properties, or services, services.
1. A withholding agent is one required to deduct and withhold any including lease or use of property, from a VAT-registered
tax. person. d. Indirect
tax:
impact and incidence. — An indirect tax is a tax
demanded in the first instance from one person in the
2. Healsohasthelegalinteresttofileaclaimfortaxrefund. b. Sales tax. — VAT is a tax on the taxable sale, barter or exchange
expectation and intention that he can shift the burden to
of goods, properties or services. A sale may be an actual or
a. Considered a taxpayer under the NIRC as he is someoneelse.
deemedsale,oranexportoralocalsale.
personallyliableforthewithholdingtax;and
GR: here must
T be
an
actual
sale
in
PH
in
order
that
VAT
may The
impact
of
taxation
is
on
the
seller
upon whom the tax has
b. As agent of the
taxpayer, he
has
the implied authority beimposed. been imposed, while the incidence of tax is on the final
to file a claim for refund and to bring an action for consumer,theplaceatwhichthetaxcomestorest.
recoveryofsuchclaim. EXC:
e. Taxcreditmethod
INGBankv.CIR2016ResolutionLeonen,J 1. Importationofgoods;
i. Cost deduction method — refers to the manner of
The
liability
of
the
withholding
agent
is independent from that of the 2. Erroneous issuance of VAT invoice or receipt for computing the taxpayer’s VAT liability by deducting
taxpayer. VAT-exemptsales; his
costs
and
expenses subject to VAT from his taxable
3. Deemedsalesofgoodsorproperties. sales and multiplying the resulting value added by
The withholding agent cannot be
made liable for the tax due because
it is
the
taxpayer who earned the
income subject to
withholding tax. 12%.
CIRv.CAandCOMASERCO
The withholding agent is liable only insofar as he
failed to
perform ii. Tax credit method or invoice method — the input
his duty to withhold the tax
and remit the same to
the
government. WON COMASERCO was engaged in the sale of services, and thus taxes shifted by the sellers to the buyer are credited
The liability for
the
tax, however, remains with the taxpayer because liabletopayVATthereon. against the buyer’s output taxes when he
in
turn sells
thegainwasrealizedandreceivedbyhim.
YES. Sec 105 of the NIRC clarifies that even a non-stock, non-profit, thetaxablegoods,properties,orservices.
3. VAT organization or
government
entity,
is
liable
to
pay VAT on the sale of f. Destination principle and cross border doctrine. — The
goodsorservices. destination of the goods determines taxation or exemption
from tax.
Export sales of goods are zero-rated, while imports
1.NatureandcharacteristicsofVAT Section 108
of
the
NIRC
defines
the
phrase
"sale
of
services" as
the
"performance of all kinds of services for others for a fee, of
goods are
subject to
12% VAT. Thus,
the
situs
of taxation is
a. Tax on value added. — VAT is
a tax
on
the
value
added
of
a remunerationorconsideration." where the goods are c
onsumed. As for services, consumption
taxpayer arising from taxable sales of goods, properties, or takesplacewheretheserviceisperformed.
Hence, it
is immaterial whether the primary purpose of a corporation
servicesduringthequarterattherateof0or12%.
indicates that it receives payments for services rendered to its
affiliates on a reimbursement-on-cost basis only, without realizing
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Cross border doctrine mandates that no VAT shall be imposed a) He undertakes taxable transactions in goods, properties, or Government — liable to VAT if engaged in the sale of goods, properties,
to
form
part
of
the
cost
of
the
goods destined for consumption servicesconsumedordestinedforconsumptionwithinPH; orservicesinitsproprietarycapacity.
outsidetheterritorialborderofthetaxingauthority. b) Such transactions are entered
into
in
the
course
of
his
trade Non-stock, non-profit association or organization — if not
CIRv.BurmeisterandWainScandinavianContractorMindanao orbusiness;AND organized for profit, relies
solely
on
the
mandatory contributions of its
The Consortium’s operation and
maintenance of NAPOCOR’s power c) The amount of
his
gross
sales receipts is over the threshold members
or for its operating expenses, and performs functions exclusively
fixedbylaworregulations. for t
he b
enefit ofitsmembers,NOTsubjecttoVAT.
barges cannot be classified as a single or isolated transaction.
As the
Court held in
CIR v.
American Express, the place of payment An importer of goods, whether or
not
made in
the
course of or BIRv.FirstE-BankTowerCondo2020
trade
is
immaterial, much less is
the
place
where the output of the service reCondominiumcorporation
business,isalsoataxableperson.
is
ultimately used. An essential condition for entitlement to 0% VAT
is that the recipient of the services is a person doing Registration as a VAT person is NOT a requirement to make
a person Certiorari or prohibition, not declaratory relief, is the proper
business outside the Philippines. In this case, the recipient of liable to VAT. An existing VAT-registered person whose gross remedy to assail the validity or constitutionality of executive
the services is
the
Consortium, which is
doing business not outside, issuances. In Diaz v. The Secretary of Finance, et al., the Court,
sales/receipts in the preceding year did not exceed the VAT-exempt
nonetheless, held that a petition for declaratory relief may be
but within the Philippines because it has a 15-year contract to thresholdofP3M,mayoptto: treated as one for prohibition if the case has far-reaching
operate and maintain NAPOCOR’s two 100-MW power barges in
Mindanao. a) RegisterasaNon-VAT;or implications and raises questions that need to be resolved for the
public good; or if the assailed act or acts of executive officials are
b) Avail of
the Optional Registration for VAT of Exempt Person allegedtohaveusurpedlegislativeauthority.
Nevertheless, in
seeking a refund
of its excess output tax, respondent
relied
on
VAT
Ruling
No. 003-99, which reconfirmed BIR Ruling
No. under Sec 236(H) of the NIRC, subject to the condition that once
availed of, shall not be entitled to
cancel
the
VAT
registration RMCNo.65-2012isInvalid
023-95 “insofar as it held that the services being rendered by
BWSCMI is subject to VAT at zero percent (0%).” Respondent’s forthenext3 years. A condominium corporation is NOT engaged in trade or
relianceontheseBIRrulingsbindspetitioner. business. The collection
of
association dues,
membership fees,
and
Ataxablepersonmayconductbusinessas
other assessments/charges is purely for the benefit of the
CIRv.AmericanExpress a) Anindividual;
condominium owners. It is a necessary incident to the purpose to
As a general rule, the VAT system uses the destination principle. b) Estateortrust; effectively oversee,
maintain, or even
improve the
common areas of
However, our VAT law itself provides for a clear exception, under thecondominiumaswellasitsgovernance.
c) Partnership;
which the
supply
of
service shall be
zero-rated when
the
following
requirementsaremet: d) Jointventure; As established in Yamane, the expenditures incurred by
condominium corporations on behalf of the condominium owners
1) theserviceisperformedinthePhilippines; e) Corporation; are not intended to generate revenue nor equate to the cost of
2) the service falls under any of the categories provided in f) Cooperative;or doing business. Association dues, membership fees, and other
Section102(b)oftheTaxCode;and assessments/charges do not arise from transactions involving the
g) Association. sale, barter,
or
exchange of
goods
or
property. Nor are they generated
3) it is paid for in acceptable foreign currency that is
Husband and Wife — treated as separate taxpayers. However, the bytheperformanceofservices.Assuch,theyaren otsubjecttoVAT.
accounted for in accordance with the regulations of the
BangkoSentralngPilipinas. aggregation rule for each spouse shall apply, which means that the
Section 57 of RA 8424 directs that only income, be it active or
Since respondent’s services meet these requirements, they are taxable sales by each spouse shall be added together to determine
passive, earned by a payor-corporation can be subject to
zero-rated. whether he/she has exceeded the general threshold prescribed by law. If withholdingtax.
he/she does, then register as a VAT person; otherwise,
subject 3%
to
2.PersonsliabletoVAT percentagetaxunderSec116. Subdivisions
or
Villages
Homeowners — Sec 18 of RA
Associations
Apersonmaybecharacterizedasataxableperson,if Joint Venture
— An unincorporated JV engaged in construction activity 9904 provides that association dues and income derived from rentals
or in energy-related projects, although exempt from income tax, is liable of
property
may be exempted from income tax, VAT, and percentage tax,
toVAT.
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provided that the association complements, supports,
and
strengthens 2. TransactionsDeemedSalesubjectto1
2%VAT(S ec107[B]); The excise
tax, if any, on such goods or properties shall form part
theLGUinprovidingvitalservicestotheirmembers. ofthegrosssellingprice
3. Sale or Exchange of Services and Use or Lease of properties
1) The
association must
be
duly-constituted as defined under SEC subjectto1 2%VAT(S ec108[A]); ii.Transactionsdeemedsale
3(b)ofRA9904;
4. Saleofgoodsorpropertiessubjectto0
%VAT(S ec106[A][2]); 1) Transfer, use or consumption
not in
the
course of business of
2) Certification from the LGU identifying the basic services
5. Sale or Exchange of Services and Use or Lease of properties goods or properties originally intended for sale or for use
in
rendered by the association and therein stating its lack of
subjectto0 %VAT(S ec108[B]); thecourseofbusiness;
resourcestorendersuchservices.
2) Distributionortransferto:
Recreational or sports club — Membership fees, assessment dues, 6. Importationofgoods(Sec107).
and
other
fees
of similar nature
only constitute contributions to and/or a) Shareholders or investors as share in the profits of the
a.Onsaleofgoodsorproperties
replenishment of the funds for the maintenance and operations of
the VAT-registeredpersons;or
facilities
offered by
recreational clubs to their exclusive members. They TobesubjecttoVAT,thesaleofg
oodsmustbe b) Creditorsinpaymentofdebt;
represent funds "held in
trust" by
these clubs to defray their operating a) Anactualordeemedsaleforavaluableconsideration; 3) Consignment of
goods
if
actual
sale
is
not
made
within
sixty
andgeneralcostsandhence,o nlyconstituteinfusionofcapital. b) Undertakeninthecourseoftradeorbusiness; (60)daysfollowingthedatesuchgoodswereconsigned;and
AssociationofNon-ProfitClubs,Inc.v.BIR2019 c) FortheuseorconsumptioninPH;AND 4) Retirement from or cessation of business, with respect to
In fine, for
as
long
as
these
membership
fees,
assessment
dues,
and d) Not exempt from VAT under Sec 109 of NIRC, special law,
or inventories of taxable goods existing as of
such
retirement
or
thelikeare internationalagreement. cessation.
1. treated as collections by recreational clubs from their Withrespecttosaleorexchangeofr ealproperty Here, the seller is also
the buyer and
no
valuable consideration is
members as an inherent
consequence of
their
membership, thus
paid. The
rationale is
to recapture the VAT that was claimed as
a) The seller executes a deed of sale, barter, or exchange,
and inputtaxatthetimeofpurchase.
assignmentorconveyance,orcontracttosell,ofrealproperty;
2. are, by nature, intended for the maintenance, preservation,
b) TherealpropertyislocatedinPH; In
the
course of trade or
business — means the
regular
conduct
andupkeepoftheclubs'generaloperationsandfacilities,
or pursuit of a commercial or an economic activity, including
c) The seller or transferor is engaged in real estate business either
then these fees cannot be classified as "the income of recreational transactions i ncidental thereto, by any person regardless of
clubs from whatever source" that are "subject to income tax." Instead, asarealestatedealer,developer,orlessor;
whether or
not the person engaged therein is a non-stock, nonprofit
they only form part of capital from which no income tax
may
be d) The real
property is
held
primarily for
sale
or
for
lease in the private organization (irrespective of the disposition of its net
collectedorimposed.
ordinary course of his trade or business, or at least an income and whether or
not
it
sells
exclusively to members or their
In
the
same way, membership fees, assessment dues, and the like are ordinary asset used in the trade or business of the VAT taxpayer guests),orgovernmententity.
not subject to VAT because in collecting such fees, the club is not asanincidenttohisVAT-taxableactivity;AND
sellingitsservicetothemembers. The rule
of regularity, to the contrary notwithstanding, services
e) Not exempt from VAT under Sec 109 of NIRC, special law,
or
rendered in
the
Philippines
bynonresident
foreign persons shall
internationalagreement.
Importer — VAT is properly and legally
due
on
the
local buyers
who beconsideredasbeingrenderedinthecourseoftradeorbusiness.
are
the
importers and should
no longer be imposed on the PH branch of i.Taxbase:grosssellingprice
iii.ChangeorcessationofstatusasVAT-registeredperson
thesellerbasedoutsidePH.
The term "gross selling price" means the
total
amount of
money
A
VAT-registered person whose registration has
been cancelled due
3.ImpositionofVAT or
its
equivalent which
the
purchaser pays or is obligated to pay to
to
retirement from or cessation of business, or due to changes in or
the seller in consideration of the sale, barter or exchange of the
WhatarethetransactionssubjecttoVAT? cessation of
status under Sec.
106 (C)
of
the
Tax
Code may, within
goodsorproperties,excludingtheVAT.
two (2)
years from the
date
of
cancellation, apply for the issuance
1. Saleofgoodsorpropertiessubjectto1
2%VAT(S ec106[A]);
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of
tax credit certificate for any unused input tax which he may use 4. warehousingservices;
services rendered for a fee even on reimbursement-on-cost
inpaymentofhisotherinternalrevenuetaxes. basis only and without realizing profit
are
also
subject
to
VAT.
5. lessorsordistributorsofcinematographicfilms;
He shall be entitled to a refund if he has
no
internal
revenue
tax Thecase,however,isnotapplicabletothepresentcase.
6. persons engaged in milling, processing, manufacturing or
liabilitiesagainstwhichthetaxcreditcertificatemaybeutilized. Here, Sony did not render any service to SIS at all. The services
repackinggoodsforothers;
The date
of
cancellation is
the
date
of
issuance of
tax
clearance
by rendered by the advertising companies, paid for by Sony using SIS
7. proprietors,
operators or
keepers of hotels, motels, resthouses, dole-out, were for
Sony and not
SIS.
SIS
just
gave assistance to Sony
the BIR, after full settlement of all tax liabilities relative to
pensionhouses,inns,resorts; in
the
amount equivalent to the latter's advertising expense but never
cessation of
business or change of status of the concerned taxpayer.
receivedanygoods,propertiesorservicefromSony.
(Sec.4.112-1.[b]RR13-18) 8. proprietors or operators of restaurants, refreshment parlors,
cafesandothereatingplaces,includingclubsandcaterers; Diaz,etal.v.SecretaryofFinance,etal.2
011EnBancreTollFees
b.Onimportationofgoods
9. dealersinsecurities; MaytollfeescollectedbytollwayoperatorsbesubjectedtoVAT?
There shall be
levied,
assessed and
collected on every importation
of
goods a VAT equivalent totwelve
percent (12%) based on
the 10. lendinginvestors;
YES. The law imposes VAT on "all kinds of services" rendered in
total value used by the Bureau of Customs in determining tariff 11. transportation contractors on their transport of goods or the Philippines for a fee, including those specified in the list. The
and customs duties, plus customs duties, excise taxes, if
any,
and cargoes, including persons who
transport
goods or cargoes for enumeration of
affected services is not
exclusive. Tollway fees are
other charges, such tax to be paid by
the
importer prior to
the hire and other domestic common carriers by land relative to NOT taxes. Indeed, they are not assessed and
collected by the
BIR
releaseofsuchgoodsfromcustomscustody. anddonotgotothegeneralcoffersofthegovernment.
theirtransportofgoodsorcargoes;
Transfer of Goods by Tax-exempt Persons. (Technical 12. common carriers by air and sea relative to their transport of Consequently, VAT on tollway operations is not really a tax on the
Importation) — In the case of
tax-free
importation of
goods
into passengers, goods
or
cargoes from one place in the Philippines tollwayuser,butonthetollwayoperator.
the Philippines by persons, entities or agencies exempt from tax toanotherplaceinthePhilippines;
where such goods are subsequently sold, transferred or exchanged CIRv.SMPrimeHoldings,Inc.2
010
in the Philippines to non-exempt persons or entities, the 13. sales of electricity by generation
companies,
transmission
by
WON the gross receipts derived by operators or proprietors of
purchasers, transferees or recipients shall be considered the any entity, and distribution companies, including electric cinema/theaterhousesfroma dmissionticketsaresubjecttoVAT.
importers thereof, who shall be liable
for
any
internal
revenue tax cooperatives;
onsuchimportation. NO. The legislative intent is not to impose VAT on persons
14. services of franchise grantees of electric utilities, telephone
alreadycoveredbytheamusementtax.
The tax due on such importation shall constitute a lien on the and telegraph, radio and television broadcasting and all
other
goods superior to
all
charges
or
liens
on
the
goods,
irrespective of franchise grantees except those
under Section 119 of
this Code To hold otherwise would impose an unreasonable burden on
thepossessorthereof.(S ec107NIRC) and cinema/theater houses operators or proprietors, who would be
paying an additional 10% VAT on top of the 30% amusement tax
c.Onsaleofservicesanduseorleaseofproperties 15. non-life insurance companies (except their crop insurances), imposedbySection140oftheLGCof1991,oratotalof40%tax.
including surety, fidelity, indemnity and bonding companies;
The phrase 'sale or exchange of services' means the performance of and TambuntingPawnshop,Inc.v.CIR2
010
all
kinds of services in the Philippines for others for a fee, remuneration
orconsideration,includingthoseperformedorrenderedby 16. similar services regardless of
whether or not
the
performance WON pawnshops are liable to pay VAT. YES. R.A. No. 9238 finally
thereof calls for the exercise or use of
the physical or
mental classifiedpawnshopsasOtherNon-bankFinancialIntermediaries.
1. constructionandservicecontractors; faculties.
Taxbase:grossreceipt
2. stock, real estate, commercial, customs and immigration CIRv.SonyPhil.,Inc.2
010
brokers; The 'gross
term receipts' means the total amount of money or its
In the case of CIR v. CA, the Court had the occasion to rule that
3. lessorsofproperty,whetherpersonalorreal; equivalent representing the contract price, compensation, service
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fee, rental or royalty, including the amount charged for materials c) whose export sales exceed seventy percent (70%) of xxxx
supplied with the services and deposits and advanced payments totalannualproduction;
b. Effectively Zero-Rated Transaction. — Sales to persons or
actually or constructively received during the taxable quarter for 4) Those considered export sales under EO No. 226, otherwise
entities whose exemption under special laws or international
the services performed or to be performed for another person, known as
the
Omnibus
Investment Code of 1987, and other
agreements to which the Philippines is a signatory effectively
excludingVAT. speciallaws;
subjectssuchsalestozerorate.
4. Zero-rated and effectively zero-rated sales of goods or Without actual exportation the following shall be considered
The services performed in the Philippines by VAT-registered
following
properties,andservices constructivelye xportedforpurposesoftheseprovisions:
personsshallbesubjecttoz
eropercent(0%)rate:
Zero-ratedsale 1. sales to bonded manufacturing warehouses of
1)
export-orientedmanufacturers;
a. ExportSales.—T heterm'exportsales'means:
a) Processing,manufacturingorrepackinggoods
1) 2. salestoexportprocessingzones;
b) forotherpersonsdoingbusinessoutsidethePhilippines
3. sales to registered export traders operating bonded
a) The sale and actual shipment of goods from the
trading warehouses supplying raw materials in the c) whichgoodsaresubsequentlyexported,
Philippines to a foreign country, irrespective of any
manufacture of
export products under guidelines to be
shipping arrangement that
may be
agreed upon which may d) where the services are paid for in acceptable foreign
set by the
Board in
consultation with
the
BIR
and
the
influence or determine the transfer of ownership of the currencyand
BOC;
goodssoexportedand e) accounted for
in
accordance
with the rules and regulations
4. sales to diplomatic missions and other agencies
b) paid
for
in
acceptable
foreign
currency
or
its equivalent in oftheBSP;
and/or instrumentalities granted tax immunities, of
goodsorservices,and 2)
locally manufactured, assembled or repacked products
c) accounted for
in
accordance
with the rules and regulations whetherpaidforinforeigncurrencyornot. a) ServicesotherthanPMR,
oftheBSP; b) rendered to a person engaged in business conducted
2) 5) The sale of goods, supplies, equipment and fuel to persons
outside the Philippines or to a nonresident person not
engaged in international shipping or international air
engaged in business who is
outside the
Philippines
when
a) Saleofrawmaterialsorpackagingmaterials transport operations: Provided, That the goods, supplies,
theservicesareperformed,
equipment and fuel shall be used for international shipping or
b) toanonresidentbuyer
airtransportoperations. c) the consideration for which is paid for in acceptable
c) fordeliverytoaresidentlocalexport-orientedenterprise foreigncurrencyand
Provided, That subparagraphs (3), (4), and (5) hereof shall be subject to
d) to be used in manufacturing, processing, packing or the 12% VAT and no longer be
considered
export
sales
subject to
0% d) accounted for in
accordance with the rules and regulations
repackinginthePhilippinesofthesaidbuyer'sgoodsand VATrateuponsatisfactionofthefollowingconditions: oftheBSP;
e) paidforinacceptableforeigncurrencyand 3) Services rendered to persons or entities whose exemption
1) The successful establishment and implementation of an
under special laws or international agreements to which the
f) accounted for
in
accordance
with the rules and regulations enhanced VAT refund system that grants refunds of Philippines is a signatory effectively subjects the supply of
oftheBSP; creditable input tax within ninety
(90)
days
from
the
filing
of suchservicestozeropercent(0%)rate;
3) theVATrefundapplicationwiththeBIR;and
4) Services rendered to persons exclusively engaged in
a) Saleofrawmaterialsorpackagingmaterials 2) All pending VAT refund
claims
as
of
December
31,
2017
shall international
shipping or international air transport operations,
befullypaidincashbyDecember31,2019. includingleasesofpropertyforusethereof;
b) toe xport-orientede nterprise
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5) Services performed by subcontractors and/or contractors in 3. breedingstockandgeneticmaterialstherefor.
processing, converting, or manufacturing goods for an 1) thebuyerisaBOI-registeredmanufacturer/producer; B. Saleorimportationof
enterprise whose
export
sales
exceed seventy percent (70%) 2) thebuyer'sproductsare100%exported;and 1. fertilizers;
oftotalannualproduction;
3) the BOI certified that the buyer exported 100% of its 2. seeds,seedlingsandfingerlings;
6) Transport of passengers and cargo by domestic air or sea products.
vesselsfromthePhilippinestoaforeigncountry;and 3. fish, prawn, livestock and poultry feeds, including
For this
purpose, the BOI Certification is vital for the seller-taxpayer ingredients,
whether locally produced or imported, used in
★ If international, VAT-exempt if passenger; and to avail of the benefits of zero-rating. To ensure compliance with themanufactureoffinishedfeeds
subjecttoo
therpercentagetaxo
f3%ifcargo. invoicing requirements, Section 3 of RMO No. 09-00 requires the
7) Sale
of
power
or
fuel generated through renewable sources of BOI-registered buyer to furnish its
suppliers with
a copy
of
the
BOI except specialty feeds for race horses, fighting cocks,
Certificationattestingthatitexported100%ofitsproducts. aquarium fish, zoo animals and other animals generally
energy such as, but not limited to, biomass, solar, wind,
hydropower, geothermal, ocean energy, and other emerging consideredaspets;
CIRv.CebuToyoCorporation
energy sources using technologies such as fuel cells and C. Importation of personal and household effects belonging to
hydrogenfuels. Under RA 7916, respondent had two options with
respect
to
its
tax
the residents of the Philippines returning from abroad and
burden.
AtlasConsolidatedMiningv.CIR nonresident citizens coming to resettle in the Philippines:
1. It could avail of an income tax holiday pursuant to Provided,Thatsuchgoodsaree xemptfromcustomsduties;
WON the totality of sales to EPZA-registered enterprises should be provisions of E.O. No. 226, thus exempt it from income taxes D. Importation of professional instruments and implements,
zero-rated, not merely the proportion which such sales
have to
the for a number of years but not from
other internal
revenue tools of trade, occupation or employment, wearing apparel,
actualexportsoftheenterprise. taxessuchasVAT;or domestic animals, and personal and household effects
YES. Section 4.100.2 of RR 7-95 in relation to Section 102 (b) of the 2. It
could
avail
of
the tax exemptions on all taxes, including belonging to persons coming to settle in the Philippines or
Tax Code shows that sales to an export-oriented enterprise VAT under P.D.
No.
66 and
pay
only
the
preferential tax
rate Filipinos or their families and descendants who are now
whose export sales exceed
70 percent of
its
annual production of5%underRep.ActNo.7916.
residentsorcitizensofothercountries.
are to be zero-rated, provided the seller complies with other
Respondent availed of the income tax holiday for four (4) years. Vehicles, vessels, aircrafts, machineries and other similar
requirements, like registration with
the
BOI and the
EPZA.
The
said
Hence, respondent is NOT exempt from VAT and it correctly
Regulation does not even hint, much less expressly mention, goods for use in manufacture, shall NOT fall within this
registered itself
as
a VAT
taxpayer. In
fine,
it
is
engaged in taxable
thatonlyapercentageofthesaleswouldbezero-rated. classification and shall therefore be subject
to
duties, taxes
ratherthanexemptt ransactions.
andothercharges;
CIRv.FilmineraResourcesCorporation2020 Here, respondent is
engaged in the export
business and is
registered
E. Servicess ubjecttop
ercentagetaxunderTitleV;
Proof of
actual
exportation
of
goods sold by
a Value
Added Tax as a VAT taxpayer. Further, the records show that the
respondent is
(VAT)-registered taxpayer to a Board of Investments subject to
VAT
as
it
availed
of the income tax
holiday under E.O. No. 1) Sale
or
lease of
goods or
properties or the
performance of
(BOI)-registered enterprise is vital for the transaction to be 226. Perforce, respondent is subject to VAT at 0% rate and is services of non-VAT-registered persons, other than the
consideredaszero-ratedexportsales. entitledtoarefundorcreditoftheunutilizedinputtaxes. transactions mentioned in paragraphs (A) to (AA) of Sec.
109(1) of the Tax Code, the gross annual sales and/or
WON the sales made to PGPRC
for
the
third
and
fourth quarters of 5.VAT-exempttransactions
receiptsofwhichdoesnotexceedtheamountofPhp3M.
the
FY
ending June
30, 2010 are zero-rated export sales based on the
certificationissuedbytheBOIonJanuary27,2010. A. Saleorimportationof 2) Services rendered by domestic common carriers
by land,
1. agricultural and marine food products in their original for the transport of passengers
and
keepers of
garages
Section 4.106-5(a)(5) of RR No. 16-2005 classified sales to
state, (Sec.117);
BOI-registered entities as zero-rated export sales if the following
conditionsaremet: 2. livestock and poultry of a kind generally used as, or 3) Services rendered by international air/shipping
yieldingorproducingfoodsforhumanconsumption;and carriers(Sec.118);
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4) Services rendered by franchise grantees of radio
and/or K. Transactions which are exempt under international M. Gross receipts from lending activities by credit or
television broadcasting whose annual
gross receipts
of agreements to which the Philippines
is
a signatory
or
under multi-purposecooperativesdulyregisteredwiththeCDA;
the preceding year do not exceed Php10M, and by speciallaws,e xceptt hoseunderPDNo.529; N. Sales by non-agricultural, non-electric and non-credit
franchisegranteesofg asandwaterutilities(Sec.119); L. cooperativesd ulyregisteredwiththeCDA.
5) Service rendered for overseas dispatch, message or The share capital contribution of each member does not
a) Sales
by
agricultural
cooperatives
duly registered with
conversationoriginatingfrom thePhilippines(Sec.120); exceed Php15K and regardless of the aggregate capital and net
theCDAtotheirmembers
6) Services rendered
by
any person,
company
or corporation surplusratablydistributedamongthemembers;
b) as well as sale of their produce, whether in its original
(except purely cooperative companies or associations) Importation by non-agricultural, non-electric and non-credit
stateorprocessedform,tonon-members;
doing life insurance business of any sort in the cooperatives of machineries and equipment, including spare
Philippines(Sec.123); c) their importation of direct farm inputs, machineries and partsthereof,tobeusedbythemares ubjectto VAT.
7) Services rendered by fire, marine or miscellaneous equipment, including spare parts thereof, to be used
O. ExportsalesbypersonswhoarenotVAT-registered;
insurance agents of foreign insurance companies (Sec. directly and exclusively in the production and/or
processingoftheirproduce; IfVAT-registered,z ero-rated.
124);
8) Services of proprietors, lessees or operators of cockpits, CIRv.UnitedCadizSugarFarmersAssociationMPC2
016 P. The following sales of real properties are exempt from
cabarets, night or day clubs, boxing exhibitions, VAT,namely:
Although the sale of refined sugar is generally subject to VAT,
professional basketball games, Jai-Alai and race tracks such transaction may nevertheless qualify as a VAT-exempt 1) Sale of real properties not primarily held for sale to
(Sec.125); and transaction if the sale is made by a cooperative. Under
Section customers or held for lease in the ordinary course of
9) Receipts on sale, barter or exchange of shares of stock 109(L) of the NIRC, sales by agricultural cooperatives are exempt trade or business. However, even if the real property is
fromVATprovidedthefollowingconditionsconcur,viz: not primarily held for sale to
customers or held for
lease
listed and traded through the local stock exchange or
throughinitialpublicoffering(Sec.127). First, the seller must be an
agricultural
cooperative
duly
registered in
the ordinary course of
trade or business but the same is
withtheCDA. used in the
trade or
business of the seller,
the
sale thereof
F. Services by agricultural contract growers and milling for
Second,thecooperativemustselleither: shall be subject to VAT being a transaction incidental to
others of
palay into rice, corn into grits and sugar cane into raw
1) exclusivelytoitsmembers;or thetaxpayer'smainbusiness.
sugar;
2) to both members and non-members, its produce, whether 2) Saleofrealpropertiesutilizedforl ow-costhousing.
G. Medical, dental, hospital and veterinary
services
except
those
initsoriginalstateorprocessedform. 3) Sale of real properties utilized for socialized housing
renderedbyprofessionals;
A cooperative is the producer of the sugar if it owns or leases the land wherein the price ceiling per unit is P450K or as may
H. Educational services rendered by private educational tilled, incurs the cost of agricultural production of the sugar, and
from time to time be determined by the HUDCC and the
institutions, duly accredited by the DepEd, CHED,
TESDA
and produces the sugar cane to be refined. It should not have merely
purchasedthesugarcanefromitsplanters-members. NEDAandotherrelatedlaws.
thoserenderedbygovernmenteducationalinstitutions;
4) Sale of residential lots valued at Php1,919,500 and
“Educational services” shall refer to academic, technical or CIRv.NegrosConsolidatedFarmersMPC2
018 below, or house & lot
and
other
residential
dwellings
vocationaleducation.
For an agricultural cooperative
to
be
exempted
from
the
payment
of valuedatP hp3,199,200andbelow.
I. Services rendered by individuals pursuant to an advanceVATonrefinedsugar,itmustbe If
two or more adjacent residential lots are sold or disposed
employer-employeerelationship;
a) a cooperative in good standing duly accredited and of
in favor of one buyer, for the purpose of utilizing the lots
J. Services rendered by RAHQ that do not earn or derive registeredwiththeCDA;and as one residential lot, the sale shall be exempt
from
VAT
incomefromthePhilippines; b) theproducerofthesugar. only if the aggregate value of the lots do not exceed
Php1,919,500M.
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Adjacent residential lots, although covered by separate titles the 3% tax imposed under Section 116 of the Tax Tax-free
exchange
of property in pursuance of a plan of merger
and/or separate tax
declarations, when sold or disposed to Code. orconsolidation.
one and the same buyer, whether covered by one or R. Sale,
importation, printing or
publication of books and any Y. Association dues, membership fees, a nd other
separate Deed of Conveyance, shall
be
presumed as
a sale newspaper, magazine, review or bulletin which appears at assessments and charges collected by homeowners
ofoneresidentiallot. regular
intervals with
fixed
prices or subscription and sale and associationsandcondominiumcorporations;
Provided, That beginning January 1, 2021, the VAT which is not devoted principally to the publication of paid Z. SaleofgoldtotheBSP;
exemptionshallonlyapplyto advertisements;
AA. Sale of drugs and medicines prescribed for diabetes, high
1. sale of
real
properties
not
primarily held for
sale S. Transportofp
assengersbyi nternationalc arriers; cholesterol, and hypertension beginning January 1, 2019;
to customers or held for lease in the ordinary Ifcargo,3%OPT. and
courseoftradeorbusiness,
T. Sale,
importation or
lease of
passenger
or
cargo vessels and BB. Sale or lease of goods or properties or the performance of
2. sale of real property utilized for socialized aircraft, including engine, equipment and spare parts thereof services other than the transactions mentioned in the preceding
housing, fordomesticorinternationaltransportoperations; paragraphs, the gross annual sales and/or receipts do not
3. sale of house and lot, and other r esidential U. Importation of fuel, goods and supplies by persons engaged in exceedtheamountofP 3M.
dwellings with selling price of not more than internationalshippingorairtransportoperations: ContexCorp.v.CIR
Php3,199,200.
Provided, That the fuel, goods, and supplies
shall
be
used
for Petitioner is registered as a NON-VAT taxpayer per Certificate of
Q. Lease of a residential unit with a monthly rental not internationals hippingorairtransportoperations; Registration issued by
the
BIR. As
such, it
is
exempt
from VAT
on
exceedingP 15K; allitssalesandimportationsofgoodsandservices.
Thus, said fuel, goods and supplies shall be used exclusively or
The foregoing notwithstanding, lease of residential units where shall
pertain to
the
transport of goods and/or passenger from a Petitioner’s claim, however, for exemption from VAT for its
the
monthly rental per
unit
exceeds
P15K, but the aggregate of port
in the
Philippines directly to
a foreign
port,
or vice versa, purchases of supplies and
raw materials is incongruous with its
such rentals of the lessor during the year
do
not
exceed P3M without docking or stopping at any other port in the claim that it is VAT-Exempt, for only VAT-Registered entities can
shall likewise be
exempt from VAT; however, the same shall be Philippines unless the docking or stopping at any other claimInputVATCredit/Refund.
subject to
three percent (3%) percentage tax under Section Philippine port is for the purpose of unloading passengers
116oftheTaxCode. While it
is
true that the petitioner should not have been liable for the
and/or cargoes that originated from abroad, or to load
VAT inadvertently passed on to it by its supplier since such is a
In cases where
a lessor
has several
residential units
for
lease, passengersand/orcargoesboundforabroad. zero-rated sale on the
part of
the
supplier,
the
petitioner is
not the
some are leased out for a monthly rental per unit of not V. Services of bank, non-bank financial i ntermediaries proper party to claim such VAT refund.
Rather, it
is the petitioner’s
exceeding P15K while others are leased out for more than performing quasi-banking functions, and other non-bank suppliers who are the proper parties to claim the tax credit and
P15Kperunit,histaxliabilitywillbeasfollows: accordingly refund the petitioner of the VAT erroneously passed on to
financialintermediaries;
thelatter.
1. The gross receipts from rentals not exceeding P15K Such as money changers and pawnshops, subject to
per month per unit shall be exempt from VAT percentage tax
under
Secs.
121 and 122, respectively, of the Tax PSALMv.CIR2
019
regardless of the
aggregate annual gross receipts.
It
is Code;
alsoexemptfromthe3 %percentagetax. WONPSALM’sprivatizationactivitiesaresubjecttoVAT.
W. Sale or lease of goods and services to senior citizens and
2. The gross receipts from rentals exceeding P15K per persons with
disability, as provided under RA Nos. 9994 and NO. The sale of the power plants in this case is not subject to VAT
month per
unit
shall be
subject
to
VAT if the aggregate 10754,respectively; since the sale was made pursuant to PSALM's mandate
to privatize
annual gross receipts from said units only exceeds NPC's assets, and was not undertaken in the course of trade or
X. Transfer of property pursuant to Section 40(C)(2) of the business. In selling the
power plants, PSALM was merely exercising a
P3M. Otherwise, the gross receipts will
be
subject
to
NIRC,asamended; governmentalfunctionforwhichitwascreatedundertheEPIRAlaw.
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2. On importation — upon payment of the VAT prior to the d) Input tax from payments made to non-residents shall be
During its corporate life, PSALM has powers relating to the releaseofthegoodsfromcustomscustody. supported by
a copy
of
the
Monthly
Remittance
Return
of
VAT
management of
its
personnel and
leasing
of
its
properties
as may be Withheld.
3. On purchase of services — when paid by the buyer and
necessarytodischargeitsmandate. e) Advance VAT on sugar shall be supported by the Payment Order
evidencedbytheseller’sofficialreceipt.
showingpayment oftheadvanceVAT.
6.Inputandoutputtax SubstantiationofInputTaxCredits
TransitionalInputTaxCredits
CategoriesofInputtaxes a) Input taxes for the importation of goods or the domestic
purchase of goods, properties or services is made in the A person who becomes liable
to
VAT
or
any person who elects
to
be
a
1. Input tax credit on importation of goods and current local
course of
trade
or business, whether such
input
taxes shall be VAT-registered person shall, subject to the filing of an inventory be
purchasesofgoods,properties,andservices(S ec110);
credited against zero-rated sale, non-zero-rated sales, or allowedinputtax
2. Transitionalinputtaxcredit—2%; subjected to the 5% Final Withholding VAT, must be
1. on his beginning inventory of goods, materials and supplies
3. Presumptiveinputtaxcredit—4%; substantiated and supported by the
following documents, and
equivalent to
two percent (2%) of the value of such inventory
must be reported in the information returns required to be
4. Finalwithholdingtaxcredit;and or
submittedtotheBureau:
5. Excessinputtaxcredit. 2. theactualVATpaidonsuchgoods,materialsandsupplies,
1) For the importation of goods - import entry or other
Sourcesofinputtaxcredits equivalent document showing actual payment of on whicheverish
VAT igher,whichshallbecreditableagainsttheoutputtax.
1. Purchaseorimportationofgoods: theimportedgoods. Whenmayoneclaimtransitionalinputtax
2) For the domestic purchase of
goods
and properties –
a. Forsale;or 1. He becomes liable to VAT for the first-time either through a
invoice showing the information required under Secs. 113
new law or when his taxable transactions exceed the P3M
b. For conversion into or i ntended to form part of a and237oftheTaxCode.
threshold;
finished product for s ale including packaging 3) For the purchase of real property – public instrument
materials;or i.e., deed of absolute sale, deed of conditional sale, 2. HeelectstoregisterasaVAT-registeredperson;and
c. Foruseassuppliesinthecourseofbusiness;or contract/agreement to sell,
etc.,
together
with
VAT invoice 3. He is already VAT-registered and also deals in goods or
issuedby theseller. properties, the sale of which is exempt, but later becomes a
d. Foruseasmaterialssuppliedinthesaleofservice;or
4) For the purchase of services – official receipt showing taxabletransactionthroughlegislation.
e. For use in trade or business for which
deduction
for the information required under Secs. 113 and 237 of
the PresumptiveInputTaxCredits
depreciation or amortization is allowed under this TaxCode.
Code. Personsorfirmsengaged
A
cash
register machine tape
issued to
a registered buyer shall
2. PurchaseofservicesonwhichaVAThasbeenactuallypaid. constitute valid proof of substantiation of
tax
credit only if
it 1. intheprocessingofsardines,mackerelandmilk,and
3. Transactionsdeemedsale; shows the information required under Secs. 113 and 237 of the 2. inmanufacturingrefinedsugarandcookingoil,
TaxCode.
4. Transitionalinputtax. shall be allowed a presumptive input
tax,
creditable against
the
output
b) Transitional input
tax shall
be
supported by
an
inventory of tax,
equivalent to
four
percent (4%) of the gross value in money of
Whencreditable goodsasshownina detailedlisttobesubmittedtotheBIR. their purchases of primary agricultural products which are used as
1. On purchase of
goods or properties — upon consummation c) Input tax on “deemed sale” transactions shall be inputstotheirproduction.
of sale, or issue of the sales invoice, although no payment substantiatedwiththeinvoice requiredunderSec.4.113-2.
The
term 'processing' shall mean pasteurization, canning and activities
thereofwasmadebythebuyer.
which through physical or
chemical process alter the exterior texture or
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form
or
inner substance of a product in such manner as to prepare it for 1. Zero-rated or effectively zero-rated sales of goods. clearance/s by the appropriate BIR Office which has
special use to which it
could not
have
been
put
in
its
original form or Petitionermustproveorcomplythefollowing: jurisdictionoverthetaxpayer.
condition. a. HeisaVAT-registeredperson; CIRv.CentralLuzonDrugCorporation
7.Refundortaxcreditofexcessinputtax;procedure b. Filed
with the
BIR
or DOF Center within 2 years after the TaxliabilityrequiredforTaxcredit
1. AnyVAT-registeredperson, closeoftaxablequarterwhenthesalesweremade
Since
a tax credit is
used
to
directly
reduce the
tax
that is due, there
2. whosesalesarezero-ratedoreffectivelyzero-ratedmay, With the CTA within 30 days from
date
of
receipt
of
ought to be a tax liability
before the tax
credit can be applied.
denialfromCIR; While the grant is
mandatory, the availment or use is not. By its
3. within
two
(2)
years
after
the
close
of
the
taxable quarter
c. The claimed input tax payments were
not
applied against nature, the tax credit may still be deducted from a future, not a
whenthesalesweremade, present,taxliability,withoutwhichitdoesnothaveanyuse.
any output
tax
during
the period
covered
by the
claim and
4. apply
for
the issuance of a tax credit certificate or refund of
in the succeeding periods, unless there be a separate PriortaxpaymentsNOTrequiredforTaxcredit
creditable input tax due or paid attributable to such sales, claim;
except transitional input tax, to the extent
that
such
input tax While a tax liability is essential to the availment or use of
any
tax
d. Deduct from its quarterly return the input tax being
hasnotbeenappliedagainstoutputtax. credit, prior tax payments are not. On the contrary, for the existence
claimedasrefundorcredit; or
grant solely of
such credit,
neither a tax
liability
nor a prior
Cancellation of VAT Registration. — A person whose registration has
e. Directlyattributabletothesale; tax payment is needed. Regarding this matter, a private
been cancelled due to
retirement from or cessation of
business, or
due
establishment reporting a net loss in its financial statements is no
to changes in or cessation of status under Section 106(C) of
this
Code f. The acceptable foreign currency exchange proceeds had
different from another that presents a net income. Both are entitled to
may, within two (2) years from the date of
cancellation, apply for beendulyaccountedfor,ifapplicable; the tax credit provided for under RA 7432, since the law itself accords
the issuance of a tax
credit certificate for any unused input tax which g. DulysupportedbyVATi nvoiceso
rofficialreceipts; thatunconditionalbenefit.
maybeusedinpaymentofhisotherinternalrevenuetaxes.
Imprinting of
the
word
“zero-rated”
on
the invoices or CIRv.AichiForgingOctober6,2010
Period within which Refund or Tax Credit
of
Input Taxes shall
be receiptsisr equired.
Made. — In proper cases, the Commissioner shall grant a refund for 1. Thus, in claims for tax refund or credit
of
unutilized
input
h. The
VAT
return
for
the
succeeding
quarters
covered by the VAT,
only the administrative claim must be within the 2-year
creditable input taxes within ninety (90) days from the date of
claimmustbesubmittedwiththeCTA. prescriptive period reckoned from the close of the taxable
submission of the official receipts or invoices and other
2. Cancellation of
VAT registration due to cessation of business quarterwhenthesalewasmade.
documentsinsupportoftheapplicationfiled:
ordissolutionofthecorporation. 2. Theclaimantmaythenfilehisjudicialclaim
Provided, That
should the
CIR
find that the grant of refund is not proper,
a. Within two (2) years from the date of cancellation, a. Within
30 days from receipt of the denial of the CIR;
theCIRmuststateinwritingthelegalandfactualbasisforthedenial.
OR
apply for the issuance of a tax credit certificate for any
In
case
of
full
or
partial
denial
of
the
claim
for
tax
refund,
the
taxpayer b. Within 30 days after the lapse of the 90-day period
unused input tax which may be used in payment of his
affected may, within thirty (30) days from the receipt of the given
to
the
CIR
to
decide that
is reckoned from the
otherinternalrevenuetaxes.
decisiondenyingtheclaim,appealthedecisionwiththeCTA: datewhendocumentsaredeemedsubmitted.
b. The date of cancellation being referred herein is
the
date
Provided, however, That failure on the part of any official, agent, or Thisisconsideredad
enialonthepartoftheCIR.
of issuance of tax clearance by the BIR, after full
employee of
the
BIR to act on the application within the ninety (90)-day 3. If
the
claimant
files
his judicial claim without respecting the
settlement of all tax liabilities relative to cessation of
periodshallbepunishableunderSection269o fthisCode. 90-dayperiod,suchwillbedismissedasbeingp remature.
businessorchangeofstatus.
When based
on
statute,
a claim
for
tax
refund
partakes
of
the
nature
of 4. The rule that both administrative and judicial claims fall
c. The filing
of
the claim shall be made only after completion within the 2-year period applies to erroneously or
anexemption.
of the mandatory audit of all internal revenue tax excessively paid taxes, and is reckoned from the date of
Categoriesofrefundsorcredits liabilities covering the immediately preceding year and the payment.InputVATisN OTe rroneouslyorexcessivelypaid.
short period return and the issuance of
the
applicable
tax
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PhilippinePhosphateFertilizerv.CIR SiliconPhilippinesv.CIR2016
the120-dayperiodiftheCIRdoesnotactwithinthatperiod.
WON the CTA should have granted petitioner’s claim for refund. YES. The general interpretative rule allowed the premature filing of
Nowhere in the Circular is it stated
that
invoices
are
required
to
be PanayPowerCorp.v.CIR2
015 judicial claims by providing that the "taxpayer-claimant need not
presentedinclaimingrefunds. wait for the lapse of
the
120-day period before
it
could
seek judicial
In this case, records disclose that petitioner filed its
administrative
relief with the CTA by way of
Petition for Review." The rule certainly
and judicial claims for refund/credit of its input VAT on December
CIRv.SanRoquePower2
013EnBanc did
not allow the
filing of a judicial claim long after the expiration of
29, 2005 and January 20, 2006, respectively, or
during the period
the120+30dayperiod.
Application of
the
120+30 Day
Periods
(please
note
that
the 120 whenBIRRulingNo.DA-489-03wasinplace.
daysisnow9
0d aysundertheTRAINlaw) 8.Compliancerequirements
As such, it need not wait for the expiration of the 120-day
GR: Taxpayer must
wait
for
the
lapse of 120 days before it could period before filing
its
judicial claim before the CTA, and hence, is
A person subject
to
pay
internal
revenue
tax
must
comply
with
certain
seekreliefwiththeCTA. deemed timely filed.
In
view
of
the
foregoing,
the
CTA En Banc erred
in dismissing outright petitioner’s claim on the ground of administrativerequirements:
EXC: T
hosewhofiledtheirjudicialclaimbetween prematurity. 1. RegistrationasaVATtaxpayer;
10Dec2003—6Oct2010. CargillPhils.,Inc.v.CIR2
015 2. Keeping and stamping of books of accounts, sales invoices, and
officialreceiptsandotheraccountingrecords;
“Excess”InputVATand“Excessively”CollectedTax Anent Cargill’s first refund claim, it filed its administrative claim
with the BIR
on
June 27,
2003,
and its
judicial
claim
before
the
CTA 3. Issuanceofinvoicesandreceipts;
The input VAT is NOT “excessively” collected as understood under on June 30, 2003, or before the period when BIR Ruling No.
Section 229 because at the time the input VAT is collected the amount DA-489-03 was in effect. As such, it was incumbent upon Cargill to 4. Filingoftaxreturnsandpaymentoftaxes;and
paidiscorrectandproper. wait for
the lapse of the 120-day period before seeking relief with
5. Withholdingoftaxoncertainpaymentsmadetootherpersons.
theCTA.Itwasthusp rematurelyfiled.
CIRv.DashEngineering2013cf.SanRoque KEPCOPhils.v.CIR2011supra
In contrast, Cargill’s
second refund claims were
both
filed on
May
WON respondent’s judicial claim for refund was filed within the 31, 2005,
falling
within the
exemption window period
contemplated Failure to print the word "zero-rated" on the
invoices
or
receipts
is
prescriptiveperiod. in San Roque. Verily, the CTA En Banc erred when it outrightly fataltoaclaimforrefundorcreditofinputVATonzero-ratedsales.
dismissedCTACaseNo.7262onthegroundofprematurity.
NO. In accordance with San Roque, respondent’s judicial claim for
SiliconPhil.,Inc.v.CIR2011onprintingof“zero-rated”
refund must be denied for having been filed late. Although PilipinasTotalGasv.CIR2
015EnBanc
respondent filed its administrative claim with the BIR
on August 9, SeealsoWesternMindanaoPowerCorp.v.CIR,Panasonic
reSubmissionofDocuments
2004 before the expiration of the two-year period in Section 112(A), it CommunicationsImagingv.CIR
undoubtedly failed
to
comply with the 120+30-day period in Section Under the current rule, the reckoning of the 120-day period has
PrintingtheATPontheinvoicesorreceiptsisNOTrequired
112(D) (now subparagraph C)
which requires that
upon the
inaction been withdrawn from the taxpayer by RMC 54-2014, since it
of the CIR for 120 days after the submission of the documents in requires him
at the time he files his claim to complete his supporting It
has
been
settled
in
Intel
Technology Philippines, Inc.
v.
CIR that
support of
the claim, the
taxpayer has to file its judicial claim within documents and attest that he will no longer submit any other the ATP
need
not
be
reflected or
indicated
in the invoices or receipts
30daysafterthelapseofthesaidperiod. document to prove his claim. Further, the taxpayer is barred from becausethereisnolaworregulationrequiringit.
submitting additional documents after he has filed his administrative
ROHMApollov.CIR2015 claim. But while there is no law requiring the ATP to be printed on the
invoices or receipts, Section 238 of the NIRC expressly requires
Thetaxpayercanfileanappealinoneoftwoways: Hedcor,Inc.v.CIR2
015alsoonSubmissionofDocuments persons engaged in business to
secure
an
ATP
from the BIR
prior to
1) file
the judicial claim within 30 days after the Commissioner printing invoices or receipts. Failure to do so makes the person liable
deniestheclaimwithinthe120-daywaitingperiod,or The Transmittal Letter submitted by petitioner is
not
a substantial
underSection264oftheNIRC.
submission that
would
warrant a change in
the reckoning date for the
2) file
the
judicial
claim
within
30
days
from
the
expiration
of 120-dayperiodfortheBIRtoactontheclaimforrefund. WON a claimant for unutilized input VAT on zero-rated sales is
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a.Registration b) Information contained in VAT invoice or VAT official
required to present proof that it has secured an ATP from the
BIR
priortotheprintingofitsinvoicesorreceipts.YES. receipt.
– The following information shall be indicated in VAT
PersonsRequiredtoRegisterforVAT.—
invoiceorVATofficialreceipt:
The non-presentation of
the
ATP
and the failure to indicate the 1) Any person who, in the course of trade or business, sells,
1) A statement that the seller is a VAT-registered person,
word "zero-rated"
in
the invoices
or receipts are fatal to a claim barters or
exchanges goods or properties, or engages in the sale
followedbyhisTIN;
forcredit/refundofinputVATonzero-ratedsales. orexchangeofservices,shallbeliabletoregisterforVATif:
2) The total
amount which
the purchaser pays or is obligated
To
claim
a refund
of
input
VAT on capital goods, Section 112 (B) of a) His gross sales or receipts for the past twelve (12)
to pay to the seller
with the indication that
such amount
theNIRCrequiresthat: months, other than those that are exempt under
includestheVAT.
Section109(A)to(BB),havee xceededPhp3M;OR
1) theclaimantmustbeaVATregisteredperson; Consequence of Issuing Erroneous VAT Invoice or VAT Official
b) There are reasonable grounds to
believe that his gross
2) the input taxes claimed must have been paid on capital Receipt.—
sales or receipts
for
the
next
twelve (12) months will
goods; 1) If a person who is NOT a VAT-registered person issues an
exceedP hp3M.OR
3) the input taxes must not have been applied against any invoice or
receipt
showing his Taxpayer Identification Number
outputtaxliability;and 2) Every person who becomes liable to be registered shall register
(TIN),followedbytheword"VAT";
with the Revenue District Office which has jurisdiction over the
4) the administrative claim for refund must have been filed
head office or branch of
that
person, and shall
pay the
annual a) The issuer shall, in addition to any liability to other
within two (2) years after the close of the taxable quarter
whentheimportationorpurchasewasmade. registrationfee. percentagetaxes,beliableto:
If
he
fails
to
register,
he
shall
be
liable to pay the tax under Title IV as if 1. The tax imposed in Section 106 or 108 without the
"Capitalgoodsorproperties"refertogoodsorproperties
he were a VAT-registered person, but
without the benefit of input tax benefitofanyinputtaxcredit;and
a. withestimatedusefullifegreaterthanoneyearand creditsf ortheperiodinwhichhewasnotproperlyregistered. 2. A50%surchargeu
nderSection248(B)ofthisCode;
b. which are treated as depreciable assets under Section OptionalRegistrationforVATofExemptPerson.—
b) The VAT shall, if the
other
requisite
information required
29(f), under Subsection (B) hereof is shown on the invoice or
1) Any
person who
is not required to register for VAT may elect to
c. used directly or indirectly in
the
production
or
sale
of register for VAT by registering with the RDO, and paying the receipt, be recognized as an input tax credit to the
taxablegoodsorservices. purchaseru nderSection110ofthisCode.
annualregistrationfee.
Training materials, office supplies,
posters, banners, T-shirts, books, 2) Any person who elects to register shall not be entitled to 2) If a VAT-registered person issues a VAT invoice or VAT
and the other similar items reflected in petitioner's Summary of cancelhisregistrationforthen extthree(3)years. official receipt for a VAT-exempt transaction, but fails to display
ImportationofGoodsareN OTc apitalgoods. prominently on the invoice or receipt the term 'VAT exempt
Any person who elected to pay the eight percent (8%) tax on
gross
sale', the issuer
shall be
liable
to
account
for
the tax
imposed
NorthernMindanaoPowerv.CIR2
015onInvoicevsReceipt salesorreceiptss hallnotbeallowedtoavailofthisoption.
insection106or108asifSection109didnotapply.
InvoicevsReceipt b.Invoicingrequirements
CIRv.Euro-PhilippinesAirlineServices2018
As regards the sufficiency of a company invoice to prove the sales a) AVAT-registeredpersonshallissue:—
of services to NPC, we find this claim is without sufficient legal Nowhere in Sec 113 is a presumption created by law that the
basis. Section 113 of
the
NIRC of
1997 provides a VAT invoice
that 1) A VAT invoice
for
every
sale,
barter
or
exchange
of
goods non-imprintment of the word "zero rated" deems the transaction
is
necessary for every sale, barter or exchange of goods or properties, orproperties;and subjectto12%VAT.
while a VAT official receipt properly pertains to every lease of 2) A VAT official r eceipt for every lease of goods or Thus, in
this
case,
failure
to
comply
with
invoicing
requirements
as
goods or properties; as well as to every sale, barter or exchange of properties, and for every sale, barter or exchange of mandatedbylawdoesnotdeemthetransactionsubjectto12%VAT.
services. Certainly, the law does not intend the two to be used
services.
alternatively.
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c.Filingofreturnsandpayment e.Administrativeandpenalsanctions excess of P250,000 exempt gift made during the calendar
year.
Every
person liable
to
pay VAT shall file a quarterly return of the The
CIR
or
his
authorized representative is empowered to suspend the
amount of
his
gross sales or receipts within twenty-five (25) days business operations and temporarily close the business 6. "NET GIFT" shall mean the net economic benefit from the
following the close of each taxable quarter prescribed for each establishmentofanypersonforanyofthefollowingviolations: transferthataccruestothedonee.
taxpayer: 7. Any contribution in cash or in kind to any candidate or
a) InthecaseofaVAT-registeredPerson.—
Provided, however,
That VAT-registered
persons
shall
pay
the
VAT political party or coalition of parties for campaign purposes,
1) Failuretoissuereceiptsorinvoices;
onamonthlybasis: duly reported to the Comelec shall NOT be subject to the
2) Failure to
file
a VAT
return
as
required
under
Section
114; paymentofanygifttax.(S ec13,RA7166)
Provided, finally, That beginning January 1, 2023, the filing and or 8. The donor's tax shall not apply unless and until there is a
payment required under this Subsection shall be done within
3) Understatement of taxable sales or receipts by thirty completed gift. The transfer of property by gift is perfected
twenty-five(25)daysfollowingthecloseofeachtaxableq uarter.
percent (30%) or more of his correct taxable sales or from the moment the donor knows of the acceptance by the
d.WithholdingoffinalVATonsalestogovernment receiptsforthetaxablequarter. donee; it is completed by the delivery, either actually or
The Government shall, before making payment on
account
of
each b) FailureofanyPersontoRegisterasRequiredunderSec236. constructively,ofthedonatedpropertytothedonee.
purchase of goods and services which are subject to the VAT 9. Thus, the law in force at the time of the
The
temporary closure of the
establishment shall be for the duration of
imposed in Sections 106 and 108 of this Code, deduct and withhold perfection/completion of the donation shall govern the
not less than five (5) days and shall be lifted only upon compliance
a
final
VAT at
the
rate of five percent (5%) of the gross payment impositionofthedonor'stax.
with whatever requirements prescribed by the Commissioner in the
thereof:
closureorder. 2.RequisitesofaValidDonation
Provided, That beginning January 1, 2021, the VAT withholding
system under this Subsection shall shift from final to a 4. Donor’sTax 1. Capacityofdonor;
creditablesystem:
2. Donativeintent;
Provided, further, That the payment for lease or use of properties or 1.BasicPrinciples,Concept,andDefinition
3. Delivery,whetheractualorconstructive,ofthesubjectmatter;
property rights to nonresident owners shall be subject to
1. Donation is an act of liberality whereby a person disposes
twelvepercent(12%)withholdingtaxatthetimeofpayment. 4. Acceptanceo fthegiftbythedonee.
gratuitously of a thing or
right in favor of
another who accepts
1. The payor or person in control of the payment shall be it. ManuelG.Abello,etal.v.CIR
consideredasthewithholdingagent.
2. In taxation, donation extends to sales or exchanges of property, Donative intent is not negated by the presence of other intentions,
2. The 5% final VAT shall represent the net VAT payable of the other than real property classified as capital asset located in motivesorpurposeswhichdonotcontradictdonativeintent.
seller. PH, for less than adequate and full consideration in
money or
Subsequent to the donations involved in this case, Congress approved
3. The remaining 7% effectively accounts for the
standard
input money’sworth. RA 7166, providing in Section 13 thereof that political/electoral
VAT, in lieu of the actual input VAT directly attributable or 3. Gift tax is also an excise tax imposed on the privilege of
the contributions, duly reported to the Comelec, are not subject to the
ratablyapportionedtosuchsales. payment of any gift tax. This all the more shows that the political
ownertogive.
contributions herein made are subject to the payment of gift taxes,
4. Should actual input VAT attributable to sales to the government 4. Gifts in favor of religious institutions are now exempt from since the
same
were made prior to the exempting legislation, and RA
exceed 7% of the gross payments, the excess may form donor’stax. No.7166providesnoretroactiveeffectonthispoint.
partofthesellers’expenseorcost.
5. Rate of Donor’s Tax. The tax for each calendar year shall be
5. On the other hand, if actual input VAT is less than 7% of gross six percent (6%) computed on the basis of the total gifts in
payment,thedifferencemustbec losedtoexpenseorcost.
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3.Transferswhichmaybeconsideredasdonation Whereas general renunciation by an heir, including the surviving a) Unlistedcommonshares= Bookvalue;
spouse, of his/her share in the hereditary estate left by the decedent
a.Sale,exchange,ortransferofpropertyforlessthan
b) Unlistedpreferredshares=Parvalue.
is
NOT
subject to donor's
tax,
unlessspecifically
and categorically
adequateandfullconsideration;exception done in favor of identified heir/s to the exclusion or disadvantage of In
determining the book value of common shares, appraisal surplus
Where property is transferred for less than an adequate and full theotherco-heirsinthehereditaryestate. shall not be considered as well as
the
value
assigned
to
preferred
consideration in money or money's worth, then the amount by 4.ClassificationofDonor shares,ifthereareany.
which the fair market value of the property
exceeded the
value
of c) Listed in stock exchange = FMV shall be the arithmetic
the consideration shall be deemed a gift, and shall
be
included
in 1. Resident or citizen and DC. — donation of all types of mean between the highest and lowest quotation at a date
computingtheamountofgiftsmadeduringthecalendaryear: propertieswhereversituated; nearest the date
of
death,
if none is available on the date of
Provided, however, That a sale, exchange, or other transfer of 2. Nonresident alien and FC. — donation of real
property
and deathitself.
property
made
in
the
ordinary course of business, a transaction tangiblepersonalpropertysituatedinPH; Units of participation in any association, recreation or
whichis Donation of intangible PP
with
a situs
in
PH,
unless
exempted amusement club — the bid price nearest the date of death
1) abonafide, onthebasisofreciprocity. publishedinanynewspaperorpublicationofgeneralcirculation.
2) atarm'slength,and 5.DeterminationofGrossGift Right to
usufruct, use
or
habitation, as
well as that of annuity
— there shall be taken into account the probable life of the
3) freefromanydonativeintent, a.Compositionofgrossgift beneficiary in accordance with the latest
basic
standard mortality
will be considered
as
made
for
an
adequate
and
full
consideration Gross gifts include real
and
personal property, whether tangible or table, to be approved by the Secretary of Finance, upon
inmoneyormoney'sworth. intangible, or mixed, wherever situated: Provided, however, That recommendationoftheInsuranceCommissioner.
CIRv.B.F.GoodrichPhils.,Inc. where the donor was a nonresident alien at the time of donation, his c.Exemptionofcertaingifts
real and personal property so transferred but which are situated
Petitioner insists that
private respondent committed "falsity" when it outside the Philippines shall not be included as
part
of
his
'gross MadebyaResident
sold the property for a price lesser than its declared fair market
gift.’ 1) Gifts made to
or
for
the use of the National Government or
value. This fact
alone did not constitute a false return which contains
wrong information due to mistake, carelessness or ignorance. It is any entity created by any of its agencies which is not
The computation of the donor's tax is on a c umulative basis
possible that real property may be
sold for
less than adequate conducted for
profit, or to
any
political subdivision
of the
overaperiodofonecalendaryear.
consideration for a bona fide business purpose; in
such
event, saidGovernment;and
thesaleremainsan"arm'slength"transaction. b.Valuationofgiftsmadeinproperty
2) Gifts in favor of an educational and/or charitable,
b.Condonationorremissionofdebt Valuation. — The amount of any charitable contribution of religious, cultural or social welfare corporation,
property other than
money shall
be based on
the
acquisition cost institution, accredited non-government organization,
If a creditor desires to benefit a debtor, and without any ofsaidproperty.(Sec34[H][3]) trust or philanthropic organization or
research
institution
consideration therefore,
cancels the
debt,
the
amount of
the debt is or organization: Provided, however, That not more than
adonationbythecreditortothedebtor. If
real property — the
appraised value as
of
the
time
of donation
thirty percent (30%) of said gifts shall be used by
shallbewhicheverishigheroftheFMVas:
c.Renunciationofinheritance;exception suchdoneeforadministrationpurposes.
a) DeterminedbytheCIR;or Thedonee-entitymustbe:
Renunciation by the surviving spouse of his/her share in the
conjugal partnership or absolute community after the dissolution of b) Showninthescheduleofvaluesfixedbylocalassessors. a) Non-stock;
the marriage in favor of the heirs of the deceased spouse or any If
shares of
stocks
— the
FMV
depends
on whether the shares are b) Payingnodividends;
otherperson/siss ubjecttodonor'stax. listedorunlisted.
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c) Governed by trustees who receive no a) The amount of the credit
in
respect
to
the
tax
paid to
any a) Decisions or resolutions on motions for reconsideration or
compensation;and country shall not exceed the same proportion of the tax new trial of the Court in Divisions in the exercise of its
against which such credit is taken, which the net gifts exclusivea ppellatejurisdictionover:
d) Devotes all its income to
the
accomplishment
of
situated within
such country taxable under this Title bears
itspurposeasenumeratedinitsAOI. 1) Cases arising from administrative agencies – BIR,
tohisentirenetgifts;and
BOC,DOF,DTI,DA;
MadebyaNon-residentAlien
b) The total amount of the credit shall not exceed the
same
1) -same- 2) Local tax
cases
decided by the RTCs in the exercise of
proportion of the tax against which such credit is taken,
theiroriginaljurisdiction;and
2) -same-butchange‘accreditednon-government which the
donor's net gifts situated outside the Philippines
organization’to‘foundation’. taxableunderthistitlebearstohisentirenetgifts. 3) Tax collection cases decided by the RTCs in the
exercise of their original jurisdiction involving final
DeductionsunderRR12-2018 7.Filingofreturnandpayment
and
executory assessments for taxes, fees, charges and
1) Encumbrance on the property donated, if assumed by Requirements. — Any person making a donation
(whether direct penalties, where the principal amount of taxes and
donee; or indirect), unless the donation is specifically exempt under the penaltiesclaimedislessthanonemillionpesos;
2) Those specifically
provided
by
the
donor
as
a diminution NIRC or other special laws, is required, for every donation, to b) Decisions, resolutions or
orders of
the RTCs in local tax cases
ofthepropertydonated. accomplish under oath a donor's
tax return in duplicate. The return decided
or
resolved
by
them in
the
exercise of theirappellate
shallsetforth: jurisdiction;
ExemptionsunderSpecialLaws
1. Each gift made during the calendar year which is to be c) Decisions, resolutions or
orders of
the
RTCs in
tax
collection
1) Donations to PH government for scientific, engineering, includedingifts; cases decided or resolved by them in the exercise of their
andtechnologicalresearch,inventionanddevelopment;
2. Thedeductionsclaimedandallowable; appellatejurisdiction;
2) Tosocialwelfare,cultural,andcharitableorganizations;
3. Anypreviousnetgiftsmadeduringthesamecalendaryear; d) Decisions, resolutions or orders on motions for
3) ToIRRI; reconsideration or new trial of the Court in Division in the
4. Thenameofthedonee;and
exercise of its exclusive original jurisdiction over tax
4) ToRamonMagsaysayAwardFoundation;
5. Such further information as the Commissioner may collectionc ases;
5) To the National Museum, National Library, and the require.
e) Decisions of the Central Board of Assessment Appeals
archivesoftheNHI;
Time and place of
filing and payment. — The donor's tax return (CBAA)
in
the
exercise of
its
appellate
jurisdiction
over cases
6) TotheSouthernPhilippinesDevelopmentAdministration; shall be filed within thirty (30) days after the date the gift is made involving the assessment and taxation of real property
7) TotheIntramurosFoundation. or
completed and
the tax due thereon shall be paid at the same time originally decided by the provincial or city board of
thatthereturnisfiled. assessmentappeals;
6.Taxcreditfordonor'staxespaidtoaforeigncountry
f) Decisions, resolutions or orders on motions for
The
tax
imposed by this
Title
upon
a donor
who
was a citizen or a 5. Remedies reconsideration or new trial of the Court in Division in the
resident at the time of donation shall be credited with the amount of a. JurisdictionofCourts exercise of its exclusive original jurisdiction over cases
any donor's tax of any character and description imposed by the involving criminal offenses arising from violations of the
authorityofaforeigncountry. EnBanc NIRC or the TCC and other laws administered by the BIR or
Limitations on Credit. — The amount of the credit taken under BOC;
The Court en banc shall exercise exclusive appellate jurisdiction to
thisSectionshallbesubjecttoeachofthefollowinglimitations: reviewbyappealthefollowing: g) Decisions, resolutions or orders on motions for
reconsideration or new trial of the Court in Division in the
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exercise of its exclusive appellate
jurisdiction
over
criminal Provided, still further, that in the case of claims for 2) Appellate jurisdiction over appeals from the
offensesmentionedintheprecedingsubparagraph;and refund of taxes erroneously or illegally collected, judgments, resolutions or orders of the
RTCs in
their
the taxpayer must file a petition for review with the original jurisdiction in
criminal offenses arising from
h) Decisions, resolutions or
orders
of the
RTCs
in
the
exercise of
Court prior to the expiration of the two-year period violations of the NIRC or TCC and other laws
their
appellate
jurisdiction over criminal offenses mentioned
underSection229oftheNIRC; administered by the BIR or the BOC, where the
insubparagraph(f).
principal amount of taxes and fees, exclusive of
3) Decisions, resolutions or orders of the
RTCs in
local
InDivision charges and penalties, claimed is less than P1M or
tax cases decided
or
resolved
by
them in
the
exercise
wherethereisn ospecifiedamountclaimed;
TheCourtinDivisionsshallexercise: oftheiroriginaljurisdiction;
c) Exclusivejurisdictionovert axcollectioncases,towit:
a) Exclusive original or appellate jurisdiction to review by 4) Decisions of the Commissioner of Customs in cases
appealthefollowing: involving liability for customs duties, fees or other 1) Original jurisdiction in
tax
collection cases involving
money charges, seizure, detention or release of final and executory assessments for taxes, fees,
1) Decisions of the CIR in cases involving disputed property affected, fines, forfeitures of other
penalties charges and penalties, where the principal
amount of
assessments, refunds of
internal revenue taxes, fees or in relation thereto, or
other
matters arising
under the taxes and fees, exclusive of charges and penalties,
other charges, penalties in relation thereto, or other CustomsLaworotherlawsadministeredbytheBOC; claimedisP1Mormore;and
matters arising under the NIRC or other laws
administeredbytheBIR; 5) Decisions of the Secretary of Finance on customs 2) Appellate jurisdiction over appeals from the
cases elevated to him automatically for review from judgments, resolutions or orders of the RTCs in tax
2) Inaction by the CIR in cases involving disputed decisions of
the
Commissioner of
Customs adverse to collection cases originally decided by them within
assessments, refunds of
internal revenue taxes, fees or the Government under Section 2315 of the Tariff
and theirrespectiveterritorialjurisdiction.
other charges, penalties in relation thereto, or other CustomsCode;and
matters arising under the NIRC or other laws LucasG.Adamson,etal.v.CA
administered by the BIR, where the NaIRC or other 6) Decisions of the Secretary of Trade and Industry, in the
case of non-agricultural product, commodity or Whether the CTA has
no
jurisdiction to
take
cognizance
of
both
the
applicablelawprovidesaspecificperiodforaction: criminalandcivilcaseshereatbar.
article, and the Secretary of
Agriculture, in
the
case of
Provided, that in case of disputed assessments, the agricultural product, commodity or article, involving NO. Under Republic Act No. 1125 as amended, the rulings of the
inaction of the CIR within the one hundred eighty dumping and countervailing duties under Section 301 Commissioner are appealable to the CTA. The power to decide
day-period under Section 228 of the NIRC shall be and 302, respectively, of
the Tariff
and
Customs Code, disputed assessments, refunds of internal revenue taxes, fees or other
deemed a denial for purposes of allowing the taxpayer and safeguard measures under Republic Act No. 8800, charges, penalties imposed in relation thereto, or other matters
to appeal his case to the Court and does not where either party may appeal the
decision to impose arising under this Code or other laws or portions thereof
necessarily constitute a formal
decision of
the
CIR
on administered by
the BIR is vested in the Commissioner, subject to the
ornottoimposesaidduties;
thetaxcase; exclusiveappellatejurisdictionoftheCTA.
b) Exclusive jurisdiction
over
cases
involving criminal offenses,
Provided, further,
that should the taxpayer opt to await towit: CIRv.Hambrecht&QuistPhilippines2
010
the final decision of the CIR on the disputed
1) Original jurisdiction over all criminal offenses The issue of prescription of the BIR's right to collect taxes may
be
assessments beyond the one hundred eighty
arising from violations of the NIRC or TCC
and
other considered a
s c
overed b
y
the
term "o
ther
m atters" over which
t he
day-period abovementioned, the taxpayer may
appeal CTAhasappellatejurisdiction.
such final decision to the Court under Section 3(a), laws administered by the BIR or the BOC, where the
Rule8oftheseRules;and principal amount of taxes and fees, exclusive of
NPCv.MunicipalGovt.ofNavotas,etal.2014
chargesandpenalties,claimedisP 1Mormore;and
WON the
CTA Second Division has
jurisdiction to review the decision
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In the case of a false or fraudulent return with
intent
to
evade
of
the
RTC
which
concerns
a petition
for
declaratory
relief involving that
the
CA
petition not only contested the applicability of Sec. 100 of
realpropertytaxes. the NIRC over the sales transaction but likewise questioned the tax or
of
failure to file a return — within t en (10) years after
validity of
Sec.
7(c.2.2) of
RR
06-08
and
RMC 25-11
does not
divest thediscoveryofthefalsity,fraudoromission.
YES. When the legality or validity of the assessment is in question, theCTAofitsjurisdictionoverthecontroversy.
and not its
reasonableness or
correctness, appeals to the LBAA,
and If the return is amended substantially, then the period to
subsequently to the CBAA, pursuant to Sections 226 and 229
of
the CIRv.V.Y.DomingoJewellers,Inc.2
019 assesswillbereckonedfromthefilingoftheamendedreturn.
LGC, are NOT necessary. Stated differently, in the event that the
WON the First Division of the CTA has jurisdiction
to
entertain
V.Y. The taxpayer is given three (3) years from date of filing of
taxpayer questions the authority and power of
the assessor to
impose the assessment, and of
the treasurer to
collect the real Domingo'spetitionforreview. original return to amend, provided that
no
notice
for audit or
propertytax,resorttojudicialactionmayprosper. investigation of
such return, statement or declaration has in the
NO. V.Y. Domingo received the PCL issued by petitioner CIR meantimebeenactuallyserveduponthetaxpayer.
In
fine, if a taxpayer is
not satisfied with the decision of the CBAA or informing it of Assessment Notices dated November 18, 2010. On
the RTC, as the case may be,
the
taxpayer may file, within thirty (30) September 12, 2011, the former sent a letter request to the BIR 2) Collection.—
days from receipt of
the assailed decision, a petition for review with requestingforcertifiedtruecopiesofthesaidAssessmentNotices.
a) When the
CIR
validly
issues an assessment within the
the CTA pursuant to Section 7(a) of R.A. 9282. In cases where the
question involves the amount of the tax or the correctness However, instead of filing an administrative protest against the three (3)-year period, it has another three (3) years
thereof, the appeal will be pursuant to Section 7(a)(5)
of R.A.
9282. assessment notice within thirty (30) days from its receipt, V.Y. within which to collect the tax
due by
distraint,
levy,
When the
appeal comes from a judicial remedy which questions the Domingo elected to file its petition for review before the
CTA
First or court proceeding. (CIR v. United Salvage and
authority of the
local government to
impose the tax, Section 7(a)(3) Division on September 16, 2011, ratiocinating that the issuance of the
Towage2 014)
of R.A. 9282 applies. Thereafter, such decision, ruling
or resolution PCL
and the alleged finality of the terms used for demanding payment
may be further reviewed by the CTA En Banc pursuant to Section
2, therein proved that its Request for Re-evaluation/ Re-investigation b) In
the
case of
an
omission
to
file
or
if
the
return
filed
Rule4oftheRevisedRulesoftheCTA. andReconsiderationhadbeendeniedbytheCIR. isfalseorfraudulent,theperiodtocollectis
Thus, the CTA En Banc erred in dismissing the petition for review en The word "decisions" in the aforementioned provision of R.A. i) within ten (10) years from discovery
banc, and affirming the
CTA
Second Division’s position that
the
RTC No.
9282 has been interpreted to mean the decisions of the CIR withoutneedofassessment;or
has no jurisdiction over the instant case for failure of petitioner to on the protest of the taxpayer against the assessments.
exhaust administrative remedies which
resulted in
the
finality of the Definitely,saidworddoesnotsignifytheassessmentitself. ii) Within five (5) years from date of
assessment. assessment.(Sec222,NIRC)
Evidently, V.Y. Domingo's immediate recourse to the CTA First
Division was in violation of the doctrine of exhaustion of 3) Period to File Criminal Action — All violations of any
Philamlifev.Sec.ofFinanceandCIR2
014
administrativeremedies. provisionofthisCodeshallprescribeafterfive(5)years.
Where does
one
seek
immediate recourse from the
adverse ruling of
the Secretary of
Finance
in
its
exercise
of
its
power of
review under b. Prescription Prescription shall begin to run from the day of the
Sec.4? 1) Period of Limitation Upon Assessment.
— Internal
revenue commission of
the
violation
of
the
law,
and
if the same be not
taxesshallbeassessedwithint hree(3)years knownatthetime,fromthed iscoveryt hereof.
Sec. 7(a)(1) of RA 1125, as amended, addresses the
seeming
gap in
the
law as it vests the CTA, albeit impliedly, with jurisdiction over the a) after
the
last
day
prescribed by law for the filing of the The prescription shall be interrupted when proceedings are
CA petition as “other matters” arising under the
NIRC
or
other instituted and shall begin to
run
again
if
the
proceedings
are
return,OR
lawsadministeredbytheBIR. dismissedforreasonsnotconstitutingjeopardy.
b) where a return is filed beyond the period prescribed
In the recent case
of
City
of
Manila v.
Grecia-Cuerdo, the Court
en The term of prescription shall not run when the offender is
bylaw, fromthedaythereturnwasfiled.
banc has ruled that the CTA now has the power of certiorari in absentfromthePhilippines.
caseswithinitsappellatejurisdiction.
ImeldaSze,etal.v.BIR2020
Guided
by
the
doctrinal
teaching
in
resolving
the
case
at
bar, the fact
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How to determine the reckoning point of the 5-year prescriptive WON CIR's right to collect respondent's alleged deficiency income tax respondent filed its final adjusted return.
Hence,
it
was
filed
within
periodforviolationsoftheNIRC? isbarredbyprescription. thereglementaryperiod.
The CTA explained that RMC 101-90
provides that
an offense under YES. The assessment, in this case, was presumably issued on 14 CIRv.UnivationMotorPhilippines,Inc.2019
the tax code is considered discovered only after the
manner of April 1994 since the respondent did not dispute the CIR's claim.
commission and the nature and extent of fraud has been Therefore, the
BIR
had until
13
April 1997. However, as there was no WON the
CTA
has
prematurely assumed jurisdiction on respondent's
definitely ascertained. This occurs when the
BIR renders its
final Warrant of
Distraint and/or Levy served on
the
respondents nor any judicial claim for tax refund or credit without waiting for the
decisionandrequiresthetaxpayertopaythedeficiencytax. judicial proceedings initiated by the BIR, the earliest
attempt
of
the decisionofpetitioner.
BIR to
collect the
tax due based on this assessment was when it filed
Here,
counting 30
days
from
the
service of
the FLD and the FAN, the its Answer in CTA Case No. 6568 on 9 January 2003, which was NO. In the instant case, the two-year period to file a claim for refund
violations were considered discovered on March 9, 2005. The several years beyond the three-year prescriptive period. Thus, the is reckoned from April 15, 2011, the date respondent filed its Final
BIR's revenue officers filed their joint affidavit in the DOJ for CIRisnowprescribedfromcollectingtheassessedtax. Adjustment Return. Since respondent filed its administrative claim on
preliminary investigation on May 26, 2005. However, the original March 12, 2012 and its judicial claim on April 12, 2013, therefore,
Information was only filed in court on April 23, 2014, which FishwealthCanningCorp.v.CIR2
010 both of respondent's administrative and judicial claim for refund
exceeded the
five-year prescriptive period. Therefore, the action had were filed on time or within the two-year prescriptive period
prescribed. Since petitioner received the denial of its administrative protest
on provided by law. Under the circumstances, if respondent awaited
August 4, 2005, it had until September 3, 2005
to
file
a petition
for for the commissioner to
act on its administrative claim (before
4) No credit or refund of taxes or penalties shall be allowed review before
the CTA Division. It
filed
one, however, on October 20, resort to
the Court),
chances are, the two-year prescriptive period
unless the taxpayer files in writing with the Commissioner a 2005, hence, it was filed out of time. For a motion for will lapse effectively resulting to the loss of
respondent's right
reconsideration of the denial of the administrative protest does to seek judicial recourse and worse, its right to recover the taxes it
claim for credit or refund within two (2) years after the
nottollt he30-dayperiodtoappealtotheCTA. erroneously paid
to
the
government. Hence, respondent's immediate
paymentofthetaxorpenalty. resorttotheCourtisjustified.
5) Local taxes, fees,
or charges shall
be within five (5) LasconaLandCo.,Inc.v.CIR2
assessed 012
waitedforCIRDecisionevenafterlapseof180days c. AgainstAssessmentNotices
yearsf romthedatetheybecamedue.
Considering that Lascona opted to await the final decision of the CIR i.Periodtofileprotest
In
case of
fraud or intent to evade the payment of taxes, fees, or
on
the protested assessment, it then has the right to appeal such final
charges, the same may be assessed within t en (10) years decision to
the Court by filing a petition for review within thirty days Within30daysfromreceiptoftheassessment.
fromdiscoveryofthefraudorintenttoevadepayment. after receipt of a copy of such decision or ruling, even after the
expiration of the 180-day period fixed by law for the CIR to act on ii.K
indsofprotest
Local taxes, fees,
or charges may
be
collected
within f ive
(5) thedisputedassessments.
years from the date of assessment by administrative or Therearebasicallytwotypes:
judicialaction. CIRv.PrimetownPropertyGroup,Inc. 1) Request for Reconsideration — anchored on documents,
6) Under the Tax Code, if the law does not provide for any The rule is that the two-year prescriptive period for
the
filing of
tax arguments, a
nd legalauthoritiesalreadysubmittedtotheBIR.
particular prescriptive period of assessment, the rule is that the refunds and tax credits is reckoned from the filing of the final
Thismayinvolveaquestionoffact,orlaw,orboth.
taxsoughttobeassessedbecomesI MPRESCRIPTIBLE. adjusted return. But how should the two-year prescriptive period be
computed? 2) Request for Reinvestigation — grounded on new or
7) The issue of prescription must be raised at the administrative
Section 31, Chapter VIII, Book I of the Administrative Code of additional documents, arguments, and
legal
authorities
not yet
level and evidence to prove prescription must be introduced by
1987, being the more recent law, governs the computation of submitted.
thetaxpayer.
legalperiods.Lexposterioriderogatpriori.
Thetaxpayershallstateinhisprotest:
CIRv.Phil.GlobalCommunication,Inc.
We therefore hold that respondent's petition (filed on April 14, 2000) 1) Thenatureoftheprotest;
was filed on the last day of the 24th calendar month from the day
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2) Dateoftheassessmentnotice;and b) Await the final decision of the CIR’s duly authorized
representativeofthedisputedassessment. DAY1|PMCriminalLaw
3) The
applicable law,
rules, and
regulations, or
jurisprudence on
which the protest is based; otherwise, the protest shall be 3) If the protest or administrative appeal is denied by the BasicPrinciples
deemedvoid. CIR
1.Malainseandmalaprohibita
iii.Submissionofsupportingdocuments a) AppealtotheCTAwithin30daysfromreceipt.
2.Scopeandcharacteristics
Submit additional relevant supporting documents within 60 An MR of the
CIR’s
denial
shall
NOT
toll
the
30-day
period
to
appealtotheCTA. 3.Proreoprinciple
days from filing of protest. The 180 day period will
be
reckoned
fromthedaythetaxpayersubmittedsuchdocuments. 4) If the protest is NOT acted upon by the CIR within the 4.Interpretationofpenallaws
iv.Effectoffailuretofileprotest 180-dayperiod
5.Retroactiveeffectofpenallaws
a) Appeal
to
the
CTA within 30 days after the expiration of the
The
assessment shall
become
final,
executory
and demandable. No AttenuatingCircumstances
180-dayperiod;OR
requestsforreconsiderationorreinvestigationmaythenbegranted.
Justifying
b) Await the final decision of the CIR on the disputed
v.ActionoftheCommissionerontheprotestfiled
assessment and appeal such final decision to the CTA Exempting
a)Periodtoactuponordecideonprotestfiled within30daysafterreceiptofthedecision.
Mitigating
180days. NB:TheseoptionsareMUTUALLYEXCLUSIVE.
Aggravating
b)Remediesofthetaxpayerincaseofdenialorinactionofthe DenialofProtest
Commissioner Alternative
A. DIRECT — The decision of the CIR or his duly authorized
HowtoAppeal representativeshall ApplicationoftheIndeterminateSentenceLaw
1) If the protest is denied by the CIR’s duly authorized a. State the facts, applicable law, rules and regulations, or ServiceofSentence
representative jurisprudenceonwhichsuchdecisionisbased;and
EffectofDeathoftheAccused
a) AppealtotheCTA;OR b. Thatthesameishisfinaldecision.
CrimesAgainstPersons
b) Elevate the
protest
through
a request
for
reconsideration B. INDIRECT—
CrimesAgainstProperty
totheCIR. a. CIRdidnotruleonthemotionforreconsideration;
CrimesAgainstLiberty
Bothwithin30daysfromreceiptofdecision. b. ReferralbytheCIRofrequestforreinvestigationtoOSG;
CrimesAgaintPublicInterest
NO request for reinvestigation is allowed in administrative c. Reiterating the demand for immediate payment o f
appeal. deficiency tax due to taxpayer’s continued refusal to RA9262
2) If the protest is NOT acted upon by the CIR’s duly executewaiver;
RA7610
authorizedrepresentativewithinthe180-dayperiod d. Preliminary collection letter may serve as assessment
SafeSpacesAct
a) Appeal
to
the
CTA within 30 days after the expiration of the notice.
180-dayperiod;OR c)Effectoffailuretoappeal DataPrivacyAct
Theassessmentshallbecomefinal,executoryanddemandable.
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1. BasicPrinciples Peoplev.Comia
vessel and its cargo is still deemed part of the act of piracy, hence, the
The act of transporting a prohibited drug is a "malum sameneednotbecommittedinPhilippinewaters.
1.Malainseandmalaprohibita prohibitum" because it
is
punished as an offense under a special law.
It is a wrong because it is prohibited by law. Without the law Moreover, piracy falls under Title One of Book Two of the
Revised
Crimes mala in se are inherently immoral and involve intent to Penal Code. As such, it is an exception to the rule on territoriality
punishing the
act,
it
cannot be considered a wrong. As such, the mere
commit a crime.
Good
faith
is a defense in mala in se crimes, but is commission of
said act is
what
constitutes the offense punished and in
criminal law. It is likewise, well-settled that regardless of the law
not a defense in mala
prohibita crimes,
where what is
required
is suffices to validly charge and convict an individual caught penalizing the same, piracy is
a reprehensible crime against the
merely the intent to perpetrate the act. Although most crimes committingtheactsopunished,regardlessofcriminalintent. wholeworld(Peoplev.Lol-lo).
punished under special penal laws are mala prohibita, there are
alsothosethataremalainse. 2.Scopeandcharacteristics c.Prospectivity
Matalamv.People2016Leonen,J a.Generality Penallawsdonothaveretroactiveeffect
The
general
rule
is
that
acts
punished under a special law are malum Penal laws apply to ALL
PERSONS
who
commit
crimes
within
the exci ftheprovisionsarefavorabletotheaccusedwhoisnota
prohibitum. "An
act
which is
declared
malum prohibitum, malice or territory.e xc habitualoffender
criminalintentiscompletelyimmaterial." 1. UnderViennaConventionondiplomaticrelations; exctotheexct helawitselfprovidesagainstsuchretroactiveeffect.
Hence, "intent to commit the crime and intent to
perpetrate the 2. In certain exempting circumstances under the RPC and
Hernanv.Sandiganbayan2017EnBanc
act must be distinguished. A person may not have consciously speciallaws;
intended to commit a crime; but he did intend to commit an act, For as
long as
the penal law
is
favorable to
the
accused, it
shall find
and that act is,
by
the
very nature of
things, the
crime itself."
When 3. Legal pluralism in certain areas/culture, i.e. the Muslim
application regardless of whether its
effectivity comes after the time
an act is prohibited by a special law, it is considered injurious to CodeandIPRA.
when the judgment of conviction is rendered and even
if
service of
public welfare, and the performance of the prohibited act is the crime b.Territoriality sentence has already begun. The accused shall be entitled to the
itself. benefits of
the new law warranting him to serve a lesser sentence, or
Penal laws
apply
to
all
offenses
committed
within
the PH territory. to
his release, if
he
has already begun serving his previous sentence,
Volition, or intent to commit the act, is different from criminal intent. exc and said service already accomplishes the term of the modified
Volition or voluntariness refers to
knowledge of
the
act
being
done.
1. ExtraterritorialityundertheRPCandSPLs sentence.
On the other hand, criminal intent refers to the state of mind beyond
voluntariness. It
is
this
intent
that is
being punished by crimesmala
2. TransnationalcrimesunderUNTOCanddomesticlaw,
inse. 3.P
roreoprinciple
3. Universal jurisdiction in jus cogens crimes and under
UNCLOS,and ⭐IntestateEstateofGonzalesv.People2010
Garciav.CA
4. Erga omnes crimes under international criminal tribunal The fundamental principle in applying and in interpreting criminal
The acts prohibited in Section 27(b) of the Omnibus Election
Code laws is to resolve all doubts in favor of the
accused.
In
dubio
pro
jurisdiction.
are mala in se. Given the volume of votes to be counted and reo.Whenindoubt,rulefortheaccused.
canvassed within a limited amount of time, errors and Peoplev.Tulinreextraterritorialityanduniversaljurisdiction
miscalculations are bound to happen. And it could not be the intent of Intimately related to the in dubio pro reo principle is the rule of
thelawtopunishunintentionalelectioncanvasserrors. The attack on and seizure of "M/T Tabangao'' and its cargo were lenity. The rule applies when the court is faced with two possible
committed in Philippine waters, although the captive vessel was later interpretations of a penal statute, one that is prejudicial to the
Criminal intent is presumed to
exist
on
the
part
of
the
person
who brought by the pirates to Singapore where its cargo was off-loaded, accused and another that is favorable to him. The rule calls for
the
executes an act which the law punishes, unless the contrary shall transferred, and sold. And such transfer was done under adoption of an interpretation which is more lenient to the
appear. Thus, whoever invokes good faith as a defense has the accused-appellant Hiong's direct supervision. Although PD No. 532 accused.
burdenofprovingitsexistence. requires that the attack and seizure of the vessel and its cargo be
committed in
Philippine waters, the
disposition by
the
pirates of the Lenity becomes all the more appropriate when this case is
viewed
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1. There is
unlawful
aggression
when the
peril
to one’s life, limb or a. The nature and quality of the weapon used by the aggressor;
through the lens of the basic purpose of Article 332 of the RPC to
preservefamilyharmonybyprovidinganabsolutorycause. rightiseithera ctualorimminent. Whatthelawrequiresisr ationalequivalence.
2. Aslaponthefaceisunlawfulaggression. b. His physical condition, character, size and other circumstances,
4.Interpretationofpenallaws andthoseofthepersondefendinghimself;
3. A strong retaliation for an injury or threat may amount to an
a. Penal
laws
are
strictly construed against
the
Government and c. Andalsotheplaceandoccasionoftheassault.
liberallyinfavoro ftheaccused; unlawfulaggression.
12. If
the provocation by the person defending himself is not proximate
b. TheSpanishtextiscontrolling. 4. The killing
of
the
deceased
by
the
defendant
be
simultaneous
with
andimmediatetotheaggression,thereisself-defense.
the
attack made
by
the
former, or
at
least
both acts succeeded each
5.Retroactiveeffectofpenallaws other without
appreciable interval of
time.
The
accused must have Peoplev.Antonio
The general rule is that penal laws shall have a retroactive effect notimenoroccasionfordeliberationandcoolthinking.
As
testified by accused-appellant himself, the deceased who was at
insofarastheyfavorthepersonguiltyofafelonyexcept 5. A public officer exceeding his authority may become
an
unlawful that time very drunk tried to hit him but missed and fell on the
a. Iftheoffenderisahabitualdelinquent; aggressor. ground. At
that point,
unlawful aggression ceased and it
was
no
longer necessary for him to stab the deceased. It was
b. Theneworamendatorylawisnotfavorabletohim;or 6. When the aggressor flees, unlawful aggression no longer exists. accused-appellant, therefore, who became the aggressor when he,
c. Retrospectiveapplicationisexpresslyproscribed. despite the
condition of
the
deceased,
proceeded to
stab
the latter
at
However, if the
purpose of
the retreat was for the aggressor to take
the back. His act can no longer be interpreted as an act of
a more advantageous position to insure the success of the
attack self-preservation but a perverse desire to kill. Hence, he cannot
Peoplev.Sarcia
already begun by him,
the unlawful aggression is
consideredstill
successfullyclaimthebenefitofself-defense.
Sec 68 of
RA 9344 allows the retroactive application of the Act to continuing, and the one making a defense has a right to pursue him
those who have
been convicted and are
serving
sentence at
the
time inhisretreatandtodisablehim. Peoplev.Rubiso
of the
effectivity of
this said
Act, and who were
below
the age
of 18
yearsatthetimeofthecommissionoftheoffense. 7. No unlawful aggression when there is agreement to fight. The Unlawful aggression is a condition sine qua non for the
challenge to fight must be accepted. However, if the aggression justifying circumstance of self-defense. It contemplates an actual,
2. AttenuatingCircumstances occurred ahead of the agreed time and place of the fight, it is
sudden and unexpected attack, or
imminent danger
thereof, and
not
merely a threatening or intimidating attitude. The person
a. Justifying unlawful.
defending himself
must
have been attacked with actual physical
forceorwithactualuseofweapon.
Self-defense 8. A mere threatening or intimidating attitude, not preceded by an
outward and material aggression, is not unlawful aggression, It is axiomatic that the mere thrusting of one’s hand into his
Anyone
who acts
in
defense
of his person or rights, provided that the because it
is
required that the act be offensive and positively strong, pocket as if for the purpose of drawing a weapon is NOT
followingcircumstancesconcur; showingthewrongfulintentoftheaggressortocauseinjury. unlawful aggression. Even
the
cocking of a rifle without aiming the
firearm at any particular target is NOT sufficient to conclude that
First.Unlawfulaggression.⭐ 9. The person defending himself cannot be expected
to
think
clearly one’slifewasinimminentdanger.
soastocontrolhisblow.
Second. Reasonable necessity of the means employed to The location and presence of gunshot wounds on the body of the
preventorrepelit. 10. The measure of rational necessity is
to
be found in
the
situation victim eloquently refute appellant’s allegation of self-defense. It is an
oft
repeated rule
that the
presence
of a large
number of wounds,
as it appeared to the person defending at the time
when the
blow
Third. Lack
of
sufficient
provocation on the part of the person their location and their seriousness would negate self-defense.
defendinghimself. wasstruck. Instead,theyindicateadeterminedefforttokill.
11. Whetherthemeansemployedisreasonable,willdependupon
Peoplev.Lansang
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Cabanligv.Sandiganbayan
The justifying circumstance of defense of a relative can only be virtueofhisrelationshiptotheoffendedparty.
raised where there is a concurrence of the requisites of unlawful Self-defense and fulfillment of duty operate on different principles.
aggression, reasonable necessity of
the
means employed to repel the The continuing affinity view maintains that the relationship by Self-defense is
based on
the
principle of
self-preservation from
aggression and
that the person making the defense had no part in affinity between the surviving spouse and the kindred of the mortal harm, while fulfillment of duty is premised on the due
theprovocation. deceased spouse c ontinues even after the death of the deceased performanceofduty.
spouse, regardless of
whether the marriage produced children or not.
Defenseofrelatives This is
more consistent with the language and spirit of Article 332(1) A policeman in the performance of duty is justified in using such
of
the RPC. The
fundamental principle in applying and in interpreting force as is reasonably necessary to secure and detain the
Any one who acts in defense of the person or
rights
of
his
spouse, criminal laws is to resolve all doubts in favor of the accused. In offender, overcome his resistance, prevent his escape,
ascendants, descendants, or legitimate, natural or adopted brothers dubioproreo.Whenindoubt,rulefortheaccused. recapture him if he escapes, and protect himself from bodily
or sisters, or his
relatives
by
affinity in
the
same degrees and those harm. Unlike in self-defense where unlawful aggression is an
consanguinity within the f ourth civil degree, provided that the Defenseofstrangers element, in performance of duty, unlawful aggression from the
first and second requisites prescribed in the next preceding victimisNOTarequisite.
circumstance are present, and the further requisite, in case the Anyone who acts in defense of the person or rights of a stranger,
provided that the first and second requisites mentioned in the
first FulfillmentofDutywasComplete,KillingwasJustified
revocation was given by the person attacked, that the one making
defensehadnoparttherein. circumstance of this Article are present and that the person
In
this
case,
Valino was committing an
offense in the presence of the
defending be not induced by
revenge, resentment, or other evil
Requisites: policemen when Valino grabbed the M16 Armalite from Mercado
motive.
and jumped from the
jeep
to escape. The policemen would have been
1) Unlawfulaggression; justified in shooting Valino if the use of force was absolutely
Requisites: necessary to prevent his escape. The policemen had the duty not only
2) Reasonable necessity of the means employed to prevent or
1) Unlawfulaggression; torecaptureValinobutalsotorecovertheloosefirearm.
repelit;
3) In case the provocation was
given
by
the
person
attacked,
the 2) Reasonable necessity of the means employed to prevent or The duty to issue a warning is not absolutely mandated at
all
repelit; times and at all cost, to the
detriment of
the
life
of
law enforcers.
onemakingthedefensehadnoparttherein. The directive to issue a warning contemplates a situation
3) Accused must not be induced by revenge, resentment or where several options are still
available to the law enforcers. In
13. Relativesthatcanbedefended:( SADS4C)
otherevilmotive. exceptional circumstances such as this
case, where the
threat
to
the
a. Spouse; life of a law enforcer is already imminent, and there is no other
15. Any
person not included in the enumeration of relatives that can be option but to use force to subdue the offender, the law enforcer's
b. Ascendants;
defendedisconsideredas tranger. failuretoissueawarningisexcusable.
c. Descendants;
Fulfillmentofduty
d. Legitimate,
natural
or adopted Siblings, or relatives by affinity Avoidanceofagreaterevil
inthesamedegrees; Any person who acts in the fulfillment of a duty or in the lawful
exerciseofarightoroffice. Any person who, in order to avoid an evil or injury, does not act
e. RelativesbyC
onsanguinitywithinthe4
thcivildegree.( 4C) which causes damage to another, provided that the following
requisitesarepresent;
14. Thefactthattherelativedefendedgaveprovocationisi mmaterial. Requisites:
1. The accused acted in the performance of
a duty OR
in
the First.Thattheevilsoughttobeavoideda
ctuallyexists;
⭐Carungcongv.People2010
lawfulexerciseofarightoroffice; Second.Thattheinjuryfearedb
egreaterthanthatdonetoavoidit;
Article 332 provides for an a
bsolutory cause in the crimes of
2. The
injury
caused or the offense committed be the n
ecessary
theft,
estafa
and malicious mischief. It limits the responsibility of the Third. That there be no other practical and less harmful means of
offender to civil liability and frees him from criminal liability by consequence of the due performance of duty or the lawful preventingit.
exerciseofsuchrightoroffice.
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16. The greater evil should not be
brought
about
by
the
negligence
or 2. To constitute insanity, there must be complete deprivation of
pointinghisservicefirearmatBautista.
imprudenceoftheactor;normustitresultfromaviolationoflaw. intelligence or
that
there
be
total
deprivation of the freedom of
Aggression presupposes that the person attacked must face
a the will. During the lucid interval, the insane acts with
17. Onlycriminalliabilityisexcused,n
otcivilliability. real threat to his life and the peril sought to be avoided is intelligence.
Obediencetoalawfulorder imminentandactual,notimaginary.
3. Thus, epilepsy, somnambulism, and malignant malaria are valid
Any person who acts in
obedience
to
an
order
issued
by
a superior Masipequiñav.CA defenses.
Feeblemindedness and pedophilia, on the other hand, are
forsomelawfulpurpose. NOT.
The rule
is
that
the reasonable necessity of the means employed
Requisites: to repel or prevent the attack depends upon the imminent Peoplev.Rafananoninsanity
danger of injury, NOT on the harm actually done to the
1) Thatanorderhasbeenissuedbyasuperior; accused. In
order that
the exempting circumstance of INSANITY may be taken
into account, it is
necessary that
there
be
a complete
deprivation of
2) Suchordermustbef orsomelawfulpurpose; Thus,
that Masipequiñ a escaped serious injuries does not necessarily
intelligenceincommittingtheact,thatis,
imply that the means
he
used
to
repel
the
attack
were
unreasonable
3) The
means
used
by
the
subordinate
to
carry
out said order is 1. thattheaccusedbedeprivedofreason;
andexcessive.
lawful. 2. thattherebenoresponsibilityforhisownacts;
b. Exempting 3. thatheactswithouttheleastdiscernment;
18. The
subordinate is not liable for carrying out an illegal order of his
superior, if he is not
aware
of
the
illegality
of
the
order
and
he
is thefollowingaree
xemptf romcriminalliability: 4. that
there
be
a complete absence
of
the
power to discern, or
notnegligent. thattherebeatotaldeprivationoffreedomofthewill.
1. An imbecile or
an
insane person, unless the latter has acted
duringalucidinterval. Where the accused failed to show complete impairment or loss of
Balunuecov.CA intelligence, the Court has recognized at most a mitigating, not
an
2. Apersonunder15yearsofage. exempting,circumstanceinaccordwithArticle13(9)oftheRPC.
In
the case
at
bar,
Ricardo
utterly
failed to
adduce
sufficient
proof of
3. person over 15 years of age and under 18, unless he has
A In previous cases where schizophrenia was interposed as an
the existence of
a positively
strong
act
of
real
aggression on
the part
acted with discernment, in which case, such minor shall be exempting circumstance, it has mostly been rejected by the Court. In
ofthedeceasedSenando.
proceeded against in accordance with the provisions of Art. 80 of each of these cases, the evidence presented tended to show that if
First, the fact that three (3) of the assailants suffered non-fatal thisCode. there was impairment of
the mental
faculties, such
impairment was
injuries bolsters the fact that Senando tried vainly to ward off the 4. Any person who, while performing a lawful act with due care, not so complete as to deprive the accused of intelligence or the
assaults of his assailants. Second, Ricardo failed
to
present himself causes an
injury
by mere accident without fault or intention of consciousness of his acts. Accordingly, we must reject the insanity
to
the
authorities. The natural impulse of
any person who has killed causingit. defenseofRafanan.
someone in defense of his person or relative is to bring himself to the
5. Any person who act under the compulsion of irresistible
authorities and try to dispel any suspicion of guilt that the authorities Minority
might have against him. Third, petitioner had a rather erratic force.
RA9344asamendedbyRA10360
recollectionofpeopleandevents. 6. Any
person who
acts
under
the of an uncontrollable
impulse
4. A child above 15, but below 18, must have acted without
fearofanequalorgreaterinjury.
discernmenttobeexempt.
Manabanv.CA 7. Any person who fails to perform an act required by
law,
when
preventedbysomel awfulinsuperablecause. 5. Periodsofc riminalresponsibility
In this case, there was no unlawful aggression on
the part
of
the
victim. First, Bautista was
shot at the back as evidenced by the point a) Absoluteirresponsibility15yearsandbelow;
of entry of the bullet.
Second, when Bautista was shot,
his
gun was ImbecilityorInsanity b) Conditionalresponsibility15yearsand1day-18years;
still inside a locked holster and tucked in his right waist. Third, 1. An imbecile is one who, while advanced in age, has a mental
when Bautista turned his back at Manaban, Manaban was already c) Fullresponsibility18years-70years;
developmentcomparabletothatofchildren2-7yearsofage.
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d) Mitigated responsibility 15 years and 1 day to
18
years,
with 15. The compulsion must be of such a character as to leave no
noparttherein.
discernment;over70yearsors enility. opportunity to the accused for escape or self-defense in equal
6. A
child
in conflict with the law (CCL) is one who at the time of the combat. 1. Unlawfulaggression;
commission of
the
offense
is
below
18
years
old
but
not
less
than Insuperablecause 2. Reasonablenecessityofthe
15yearsand1dayold. meansemployedtopreventor
16. Confessant reveals to a priest of his plan to rebel against the Defenseof repelit;
7. Discernment means the capacity of the child at the time of the government. Under Art 116, it is required that anyone who knows of ✘ M
strangers 3. Thepersondefendingben ot
commission of the offense to understand the differences between such conspiracy must report the same. However, due to
rightandwrongandtheconsequencesofthewrongfulact. inducedbyrevenge,
penitent-priest privileged communication, the priest can not be
resentmentorotherevil
8. Intent refers
to
the
desired
act
of
the
person
while
discernment compelledtoreportsuchinformation.
motive.
relates to the moral
significance
that
a person
ascribes
to
the
said a. Theactofreportingisrequiredunderlaw;
act. 1. Theevilsoughttobeavoided
b. Thepriestfailstodoso;
Accident actuallyexists;
c. His failure was due to a lawful cause, privileged Avoidanceof
2. Theinjuryfearedbegreater
9. An accident is something that happens outside the sway of our communicationbetweenhimandapenitent. greaterevil
✔ M thanthatdonetoavoidit;
will, and
although it
comes
about through some act of our will, lies orStateof
ReviewofJustifyingandExemptingCircumstances 3. Therebenootherpracticaland
beyondtheboundsofhumanlyforeseeableconsequences. necessity
M=Mitigating lessharmfulmeansof
10. Itisintrinsicallycontradictorytonegligence. Civil Ifnot preventingit.
Requisites
11. Thefollowingr equisitesm
ustconcur: Liability complete
1. Theaccusedactedinthe
a) thattheaccusedwasperformingal awfulactwithduecare; Justifying performanceofadutyorinthe
b) thattheinjuryiscausedbymereaccident;and lawfulexerciseofsuchrightor
c) that there was no fault or intent on his part to cause the 1. Unlawfulaggression; office;
injury. 2. Reasonablenecessityofthe Fulfillment
✘ M 2. Theinjurycausedorthe
meansemployedtopreventor ofduty offensecommittedbethe
Irresistibleforce
Self-defense ✘ M repelit; necessaryconsequenceofthe
12. The force must be irresistible to reduce the actor to a mere 3. Lackofsufficientprovocation dueperformanceofdutyor
instrumentwhoactsnotonlywithoutwillbutagainsthiswill. onthepartoftheperson lawfulexerciseofsuchrightor
Uncontrollablefear defendinghimself; office.
13. This
presupposes that
a person is
compelled to commit a crime by 1. Unlawfulaggression; 1. Anorderhasbeenissuedbya
another, but the compulsion is by means of intimidation or 2. Reasonablenecessityofthe superior;
threat, not
force
or violence. If
force
or
violence is
employed,
the meansemployedtopreventor Obedience 2. Suchordermustbeforal awful
Defenseof
applicabledefenseisi rresistibleforce. ✘ M repelit; toalawful ✘ M purpose;
relatives order
14. Duress as a valid defense should be based on real,
imminent,
or 3. Incasetheprovocationwas 3. Themeansusedbythe
reasonable fear for one’s life or limb and should NOT be givenbythepersonattacked, subordinatetocarryoutsaid
speculative,fanciful,o
rremotefear. theonemakingadefensehad orderisl awful.
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Exempting a) existenceofan 6. Passion or obfuscation. That of having acted upon an
uncontrollablefear; impulse so powerful as naturally to have produced passion or
1. Imbecileise xemptinA
LL b) thefearmustberealand obfuscation.
cases; imminent; 7. Voluntary surrender. That the offender had voluntarily
Imbecility
orinsanity
✔ M 2. Insaneisonlyexemptifhe c) thefearofaninjuryis surrenderedhimselftoapersoninauthorityorhisagents,or
actednotduringalucid greaterthanoratleast Plea of guilty. That he had voluntarily confessed his guilt
interval. equaltothatdone. before
the
court
prior
to
the
presentation
of
the
evidence for the
prosecution.
2. Thatitpromisesane vilof
1. If15andbelow,a
bsolutely suchgravityandimminence 8. Deaf and Dumb, Blind. That the offender is deaf and dumb,
exempt; thattheordinarymanwould blind or otherwise suffering some physical defect which thus
2. Ifabove15butbelow18, havesuccumbedtoit. restricts his means of action,
defense,
or
communications with
hisfellowbeings.
Minority ✔ M conditionallyexempt.
Anactisrequiredbylawtobe 9. Illness. Such illness of the offender as would diminish the
3. Exemptionappliesonlyifitbe
done; exercise of the will-power of the offender without however
shownthattheminoracted deprivinghimoftheconsciousnessofhisacts.
Insuperable
withoutdiscernment.
cause
✘ ✘ Apersonfailstoperformsuchact; 10. Analogous. And, finally, any other circumstances
of
a similar
Hisfailuretoperformsuchactwas
natureandanalogoustothoseabovementioned.
1. Apersonisperforminga duetosomelawfulor
lawfulact; insuperablecause.
Privilegedandordinary
2. Withduecare;
c. Mitigating 1. Ordinary or Generic mitigating
are
those
enumerated in
Art
13.
Accident ✘ M 3. Hecausesanaccidentto
For incomplete defense however, in Subsection 1, it becomes
anotherbymereaccident; privilegedwhenmajorityoftherequisitesarepresent.(Art69)
4. Withoutfaultorintentionof
1. Incomplete Defense. Those mentioned in the preceding a. It is susceptible to being offset by any aggravating
causingit.
chapter,
when
all
the
requisites necessary
to justify or to exempt circumstance.
fromcriminalliabilityintherespectivecasesarenotattendant.
1. Thecompulsionisbym eans b. If not offset, produces only the effect of applying the
Compulsion 2. Mitigating responsibility. That the offender is under
ofphysicalforce; penalty provided by law in
its
minimum period, in
case
ofan eighteenyearofageoroverseventyyears.
✔ ✘ 2. Suchforcemustbei rresistible; ofdivisiblepenalty.
irresistible 3. Praeter intentionem. That the offender had no intention to
force 3. Suchforcem
ustcomefroma 2. Privileged mitigating are those that cannot be offset by any
commitsograveawrongasthatcommitted.
thirdperson. aggravating circumstance. It has the effect of imposing upon the
4. Provocation. That sufficient provocation or threat on the part offender the penalty lower by one or two degrees than that
oftheoffendedpartyimmediatelyprecededtheact.
Impulseof 1. Thethreatwhichcausesthe providedbylaw.
an fearisofanevilg
reaterthan 5. Immediate vindication of a grave offense. That the act
uncontrollable
✔ M
was committed in the immediate vindication of
a grave
offense
a. Art 68. When the offender is a minor and his case falls
oratleastequalto,thatwhich under the
JJWA,
particularly
those
above
15
but
below 18,
fear to the one committing the felony, his spouse, ascendants, or
heisrequiredtocommit; andactsWITHdiscernment.
relativesbyaffinitywithinthesamedegrees.
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b. Art 69. Not all, but a majority of the requisites of justifying 9. It
must be immediate to the commission of the crime such that the 17. It must be proven that the act which produced passion or
orexemptingcircumstancesarepresent. accused had no time to regain his reason and to exercise obfuscation took place at a time not far removed from the
c. Art 64(5). When there are 2 or more mitigating self-control. commissionofthecrime.
circumstancesandnoaggravating. 10. It should not be offensive and positively
strong
as
it
may
then
be 18. The crime committed must be the result of
a sudden
impulse
of
d. Art
268(3).
Voluntary
release
of
person
illegally detained considered as an unlawful aggression that may give rise to naturalanduncontrollablefury.
within3days; self-defense. 19. It
may
be
built up and strengthen over time until it can no longer be
e.
Art 333(3). Abandonment without justification of the Immediatevindicationofagraveoffense repressed and will ultimately motivate the commission of the
spousewhocommittedadultery. crime.(P eoplev.Oloverio2 015L
eonen,J)
11. A lapse of time is allowed between the grave offense and the
20. Considered as ONE mitigating circumstance with provocation if
Incompletedefense vindication.
botharosefromoneandthesamecause.
3. When all the requisites necessary to justify the act or to exempt 12. Whether
the
personal
offense
is
grave must be decided considering
21. INCOMPATIBLEw
iththefollowing:
fromcriminalliabilityarenotattendant. the social standing of the person, the place, the time when the insult
4. The only instance it becomes privileged mitigating is when a wasmade. a. Praeterintentionem;
majority of the requisites in self-defense, defense of relatives or 13. It is incompatible with passion or obfuscation. They cannot b. Treachery;
strangersispresent. co-exist, except when there are other facts, although closely c. Evidentpremeditation;
connected. In other words, the
cause
for
each
arose from
different
Praeterintentionem
setsoffacts.
5. It is the intention of the offender at the moment when he is Provocation PassionorObfuscation
committingthecrimewhichisconsidered.
Provocation Vindication Source Offendedparty Causedbyprovocation
Peoplev.Enriquez
Alsoagainstoffender’s Time Immediately preceded
Madetowards offender Neednotbeimmediate
The trial court gave all of the accused the benefit of the
mitigating relatives lapse theact
circumstance that the offenders had no intention to commit so
grave a wrong. The estimation of this circumstance was proper, Offender must An offense need not Effect Lossofreasonandself-controlofoffender
Agraveoffense
and its allowance was not inconsistent with the finding that the havedone begrave
crimewasmurder.
Immediately IrresistibleForce PassionorObfuscation
Timelapse Proximate
precededtheact
Provocation
Kind Exempting Mitigating
6. Any unjust or improper conduct or act by the offended party, Passionorobfuscation
capableofexciting,inciting,orirritatinganyone. Force Physical Notphysical
14. Mitigating only when the same arose from
lawful
sentiments, and
7. As to whether a provocation is sufficient depends upon the act NOTinaspiritoflawlessnessorrevenge. Source 3rdperson Offenderhimself
constituting the provocation, the social standing of the person
15. The crime committed by the accused must be provoked by prior
provoked,theplaceandtimewhentheprovocationismade. Lawful? NO Arisefromlawfulsentiments
unjustorimproperactsoftheinjuredparty.
8. As an
element
of self-defense, it
pertains to its absence on the part
16. Exercise
of
a right
or
fulfillment
of
duty
isNOT
a proper
source of Romerav.People
of the person defending himself; whereas as a mitigating
passionorobfuscation.
circumstance, it pertains to its presence on the part of the offended Thrusting
his
bolo
at
petitioner, threatening to
kill
him,
and hacking
party. the bamboo walls of his house are, in our view, sufficient
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c. Esprit de corps or mass psychology
is
similar
to
passion
or
provocation to enrage any man, or stir his rage and obfuscate his incurredinhissearchandcapture.
thinking, more so when the lives of his wife and children are in obfuscation;
If none of these two (2)
reasons impelled the
accused to
surrender,
danger. Petitioner stabbed the victim as a result of those because his surrender was obviously motivated more by an intention d. Voluntary restitution of property similar to voluntary
provocations, and while petitioner was still in a fit of rage. In our to insure his safety, his arrest
being
inevitable, the
surrender is
not surrender;
view, there was sufficient provocation and the circumstance of spontaneous. Here, accused-appellant willingly went to the police
passionorobfuscationattendedthecommissionoftheoffense. e. Extreme poverty similar to incomplete justification based on
authorities with Gilbert Sacla only to escape the wrath of private
complainant's relatives who were pursuing him and who appeared to stateofnecessity;
But, we must stress
that
provocation
and passion or
obfuscation
bethirstingforhisblood. f. Testifyingfortheprosecutionsimilartop
leaofguilty;
are not two separate mitigating circumstances. Well-settled is the
rule that if
these two circumstances are based on the same facts, they
shouldbetreatedtogetherasonemitigatingcircumstance. Manabanv.CA Peoplev.TampusandMontesclaros
Nonetheless, since the mitigating circumstance of voluntary VoluntarySurrenderandObfuscation We agree with both the trial and appellate courts in their appreciation
surrender is also present, Article 64 (5) of the RPC should be of the mitigating circumstance of illness as would diminish the
Manaban called the
police
to
report
the
shooting incident.
When the exercise of willpower of Ida without depriving her of the
applied. The penalty for frustrated
homicide, pursuant to
Article
50
police arrived, Manaban surrendered his service firearm and consciousnessofheracts,pursuanttoArticle13(9).
of the RPC, is the penalty next lower in d egree than that
voluntarily went with the police to the police station for
prescribedbylawforconsummatedhomicide.
investigation. Thus, Manaban is entitled to the benefit of the Dr. Costas testified that Ida was provisionally treated for
mitigatingcircumstanceofv oluntarysurrender. schizophrenia a few months before the incident. Ida was not
VoluntarySurrender totally deprived of intelligence at the time of the incident; but,
she
On obfuscation, we find that the facts of the case do not entitle mayhavepoorjudgment.
22. The following
elements
must
be
present
for voluntary surrender to
Manaban to such mitigating circumstance. Manaban admitted
beappreciated: shooting Bautista because Bautista turned around and was
allegedly Mitigatingcircumstanceswhicharepersonaltooffenders
a) theoffenderhasnotbeenactuallyarrested; about to draw his gun to shoot Manaban. The act of Bautista in
turning around is not unlawful and sufficient cause for
Manaban to Mitigatingcircumstanceswhicharise
b) the offender surrendered himself to a person in authority, lose his
reason
and shoot Bautista. The defense failed to establish 1) Fromthemoralattributesoftheoffender;or
and, by clear and convincing evidence the cause that allegedly
producedobfuscation. 2) Fromhisprivaterelationswiththeoffendedparty;or
c) thesurrendermustbevoluntary,s pontaneous.
3) Fromanyotherpersonalcause,
Lumauigv.People2014 Pleaofguilty
Shall
only
serve
to
mitigate
the
liability
of
the
principals, accomplices,
23. Notmitigatingifmadeonappeal. andaccessoriestowhomsuchcircumstancesareattendant.(Art62[3])
In sentencing petitioner, the
Sandiganbayan
correctly considered the
mitigating circumstance of voluntary surrender. However, it 24. Plea of guilty
to
lesser
offense
than
that
charged
is
not
mitigating. Circumstanceswhichareneitherexemptingnormitigating
failed to consider the mitigating circumstance of return or full However, if the information is amended to change the charge to a
restitutionofthefundsthatwerepreviouslyunliquidated. 1. Aberratioictus;
lesseroffenseandtheaccusedpleadsguiltythereto,itismitigating.
2. Mistakeintheidentity;
25. Thepleaofguiltymustbeunconditional.
Peoplev.Basite
3. Entrapment;
26. NOTmitigatinginculpablefeloniesandincrimesunderSPLs.
A surrender to be voluntary must be spontaneous, showing the 4. Ageofcriminalresponsibility;
intent of the accused to submit himself unconditionally to the Analogouscircumstances
authorities,eitherbecause 5. Performanceofrighteousaction.
a. Over60yearswithfailingsight,similartos enility;
1. heacknowledgeshisguilt,or ReviewofMitigatingCircumstances
b. Outraged feeling of owner of
animal
taken
for
ransom
similar
2. he
wishes
to
save
them
the
trouble
and
expense necessarily
tov indication; Circumstance Requisites
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Notallrequisitesnecessarytojustifytheactorto 2. Hesurrenderedhimselftoap ersoninauthority 5. That the crime be committed in the palace of the Chief Executive
Incomplete exemptfromcriminalliabilityareattendant. ortothelatter'sagent; or in his presence, or where public authorities are
engaged in
defense Ifmajorityoftherequisitesarepresent,p
rivileged, the discharge of
their
duties, or in a place dedicated to religious
3. Thesurrenderwasvoluntary.
otherwise,o rdinary. worship.( PalaceofChiefExecutive)
1. Offenders pontaneouslyconfessedhisguilt; 6. That the crime be committed in the night time, or in an
Minor uninhabited place, or
by
a
band,
whenever such circumstances
Above15butbelow18yearsold. 2. Suchwasmadei nopencourt,beforethe
(Privileged) Pleaof may facilitate the commission of the offense. (Nighttime,
competentcourtthatistotrythecase;and Uninhabitedplace,)
guilty
Senility Offenderisover70yearsold
3. Suchwasmadep riortothepresentationof Whenever more than
three
armed malefactors shall have
acted
evidencefortheprosecution. together
in
the
commission of
an
offense,
it
shall be deemed to
Thereisanotableandevidentdisproportionbetween
Praeter havebeencommittedbyaband.( Band)
themeansemployedtoexecutethecriminalactand
intentionem 1. Theoffenderisdeafanddumb,blindor 7. That
the
crime be committed on the occasion of a conflagration,
itsconsequences.
otherwisesufferingsomephysicaldefect shipwreck, earthquake, epidemic or other calamity or
Deafand misfortune.( Calamity)
1. Mustbesufficient; Dumb,Blind 2. Whichthusrestrictshismeansofaction,
defense,orcommunicationswithhisfellow 8. That the crime be committed with the aid of armed men or
2. Mustoriginatefromoffendedparty;and
personswhoinsureoraffordimpunity.( Aidofarmedmen)
Provocation 3. beings.
Mustbeimmediatetotheact,i.e.,tothe 9. Thattheaccusedisarecidivist.( Recidivist)
commissionofthecrimebythepersonwhois 1. Theillnessofoffendermustdiminishthe A recidivist is one who, at the time of
his
trial
for
one
crime,
provoked. exerciseofhiswill-power; shall have been previously convicted by final judgment of
Illness anothercrimeembracedinthesametitleofthisCode.
2. Suchillnessshouldnotdeprivetheoffenderof
1. Therebeag
raveoffensedonetotheone
consciousnessofhisacts. 10. That
the offender has been previously punished by an offense to
committingthefelony,hisspouse,ascendants,
which the
law
attaches an
equal or greater penalty or for two or
Immediate descendants,legitimate,naturaloradopted more crimes to which it attaches a lighter penalty.
Analogous Similartoanyofthemitigatingcircumstances.
vindication brothersorsisters,orrelativesbyaffinitywithin (Reiteracion)
ofagrave thesamedegrees; d. Aggravating 11. That the crime be committed in consideration of a price,
offense 2. Thefelonyiscommittedinvindicationofsuch reward,orpromise.( Price,reward,orpromise)
1. That advantage
be
taken
by
the
offender
of
his
public
position.
graveoffense.Al apseoftimeisallowedbetween (Abuseofpublicposition) 12. That the crime be committed by means of inundation, fire,
thevindicationanddoingofthegraveoffense. poison, explosion, stranding of a vessel or international damage
2. That the
crime
be
committed
in
contempt or
with
insult
to
the thereto, derailment of a locomotive,
or
by the
use
of
any
other
1. Therebeanact,bothu
nlawfulandsufficient,to public authorities. (Contempt of or insult to public artificeinvolvinggreatwasteandruin.( Greatwasteandruin)
authorities)
producesuchaconditionofmind;and 13. That the act be committed with evident premeditation. (Evident
3. That the act be committed with insult or in disregard of the premeditation)
2. Saidactwhichproducedtheobfuscationw asnot respect due the offended party on account of his rank,
age, or
Passionor
farremovedfromthecommissionofthe sex,( Insulttooffendedparty) 14. That
the
craft,
fraud
or
disguise
be
employed. (Craft, fraud, or
obfuscation
crimebyaconsiderablelengthoftime,during disguise)
or
that
is
committed in
the dwelling of the offended party, if the
whichtheperpetratormightrecoverhisnormal latterhasnotgivenprovocation.( Dwelling) 15. That advantage be taken of s uperior s trength, o
r means be
equanimity. employed to weaken the defense. (Abuse of superior
4. That
the
act
be
committed
with
abuse of confidence or obvious strength)
ungratefulness. (Abuse of confidence or obvious
Voluntary 16. Thattheactbecommittedwithtreachery.( Alevosia)
1. Offenderhadn
otbeenactuallyarrested. ungratefulness)
surrender
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2. What is
decisive
is
that
the
execution of the attack, without the
There is treachery when the offender commits any of the crimes slightest provocation from an unarmed victim, made it
Lastly, disregard of
old age should not be taken into account for,
against the person,
employing means, methods, or forms in the
as
stated in
the case
of
People
v.
Pagal, it
is not proper to consider impossibleforthevictimtodefendhimselfortoretaliate.
execution thereof
which
tend directly and specially to insure its
execution, without risk to himself arising from the defense this aggravating circumstance in crimes against property.
3. There is treachery when the offender commits any of the
whichtheoffendedpartymightmake. Robbery with homicide is primarily a crime against property and not
againstpersons. crimes against persons, employing means, methods or forms
17. That means be employed or circumstances brought about which in the execution thereof, which tend directly and specially to
addignominytothenaturaleffectsoftheact.( Ignominy) ensure its execution without risk to himself arising from the
RecidivismvsReiteracion
18. That
the crime be committed after an unlawful entry. (Unlawful defensethattheoffendedpartymightmake.
entry) Recidivism Reiteracion
4. There
are
two
(2)
conditions
that
must
concur for treachery to
There is an unlawful entry when an entrance is effected by a
waynotintendedforthepurpose. Asto1stoffense, Beenadjudgedwith exist,towit:
Servedoutthesentence
offendershallhave finality a) the employment of means of execution gave the person
19. That as a means to the commission of a crime a wall, roof, floor,
door, or
window be broken.
(Breaking wall,
roof, floor, door, attacked no opportunity to defend himself or to
Previousand IncludedinSAME MustNOTbeembraced
orwindow) retaliate;and
subsequentoffenses title insametitle
20. That the crime be committed with the aid of persons under b) the means or method of execution was deliberately
fifteen years of age or by means
of
motor
vehicles, motorized Alwaysaggravating ✔ ✘ andconsciouslyadopted.
watercraft, airships, or other similar means. (aab RA 5438).
(Aidofpersonunder15,Motorvehicle) ThefourformsofREPETITION 5. The essence of treachery is that
the
attack
is
deliberate
and
21. That the wrong done in the commission of the crime be 1. Recidivism without warning, done in a swift and unexpected manner,
deliberately augmented by causing other
wrongs
not
necessary affording the hapless, unarmed and unsuspecting victim no
foritscommission.( Cruelty) 2. Reiteracionorhabituality
chancetoresistorescape.
3. Multi-recidivism or habitual delinquency Art 62[5]
Kinds
(Extraordinary aggravating) — if within a period of ten years Peoplev.Bermudo2 018
1. Generic—T
hosethatcanbeappliedtoallcrimes. from the
date
of
his
release or
last
conviction of
the
crimes of
Gilberto was completely defenseless at the time of the attack because
2. Specific—
A
ppliesonlytoparticularcrimes. serious or less serious physical injuries, robo, hurto, estafa he
was surprised by Rommel with a blow to the head causing him to
or
falsification, he
is
found guilty of any of said crimes a third fall to the ground. R ommel and co-accused continued to
attack
him
3. Qualifying—
C
hangesthenatureofthecrime. causing him multiple injuries,
including the
fatal ones. Gilberto
was
timeoroftener.
4. Inherent—
M
ustaccompanythecommissionofthecrime. never in a position to defend himself. Further, Rommel and his
4. Quasi-recidivism Art 160
(Special aggravating) — commits a co-accused consciously adopted the means of attack because, as
Peoplev.Nabaluna felony after having been convicted by final judgment, before noted by the CA, they were already armed when they proceeded to the
beginning to serve such sentence, or while serving the same, crime scene. In addition, it is noteworthy that Rommel suddenly,
The element treachery
of cannot simply be presumed. It must be shall be punished by the maximum period of the penalty withoutwarningorprovocation,attackedGilbertofrombehind.
clearlyprovenasthecrimeitself. prescribedbylawforthenewfelony.
Peoplev.Bagabay2
018
The
mere fact
that
two
of
the accused,
with one of them being armed Treacheryoralevosia
with a bolo, does not necessarily constitute abuse of superior It is not enough that the attack was "sudden," "unexpected," and
strength on their part. To take advantage of superior strength, it is 1. The settled rule
is
that
treachery can
exist
even
if
the
attack is "without any warning or provocation." There must also be a
imperative that there be a showing of
purposely using
excessive frontal, as long as
the
attack
is
sudden and
unexpected, giving showing that the
offender consciously and deliberately adopted
force which is out of proportion to the means of defense thevictimnoopportunitytorepelitortodefendhimself. the particular means, methods and forms
in
the
execution of the
availablet othepersonattacked. crime which tended directly to insure such execution, without risk to
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Nighttimeornocturnidad
himself. The trial
court
is
correct appreciating dwelling as an aggravating
in
a) particularly sought or darkness is taken
advantage
to
commit circumstance. Generally, dwelling is considered inherent in the
Peoplev.Jaurigue2
019 theoffense,or crimes which can only be committed in the abode of the victim, such
as trespass to dwelling and robbery
in
an
inhabited
place. However,
b) facilitatedthecommissionofthecrime.
There can be no treachery when the victim was "forewarned of
the in robbery with homicide the authors thereof can commit the
danger he was in," "put on guard," or otherwise "could anticipate Nighttime cannot be considered if it is shown that the place was heinous crime without transgressing the sanctity of the victim's
aggression from the assailant" as when "the assault is preceded by a adequatelylighted. domicile.
heated exchange of words between the accused and
the
victim; or
when
the
victim is aware of
the
hostility of the assailant towards the Abuseofsuperiorstrength But treachery was incorrectly considered by the trial court. The
former." accused stand charged with, tried and convicted of robbery with
Peoplev.Maron2
019 homicide which is
primarily
classified as
a crime against
property.
Peoplev.Angeles2
019 As
such,
treachery cannot
be
validly appreciated as
an
aggravating
Employment of means to weaken the defense is, at the very least,
circumstance.
subsumed under the qualifying circumstance of abuse of superior
Treachery may still be appreciated even when the victim was strength.
forewarned of the danger to
his
person.
What is
decisive is
that
the While it appears that at least five (5) malefactors took part in the
execution of the attack made it impossible for
the victim to
defend In determining whether the qualifying circumstance of employing commission of the crime, the evidence on
record does
not
disclose
himselfortoretaliate. means to
weaken the
defense is
present, the Court shall be guided by that
"more than
three"
persons were armed, and robbery in "b
and"
the same standard in determining the
presence of
abuse of
superior means "more than three armed malefactors united in the
strength, i.e., "notorious inequality of forces between the victim commissionofrobbery."
Evidentpremeditation and the
aggressor/s that is plainly and obviously advantageous to the
To
prove
this
aggravating
circumstance,
the
prosecution must show the aggressor's and
purposely selected or
taken
advantage of to facilitate Nighttime
did not attend the commission of the crime. The fact that
following: thecommissionofthecrime.” the
offense
was
committed at
9:30
in
the
evening
does
not suffice to
sustain nocturnidad. It must be shown that nocturnidad was
1) thetimewhentheoffenderd
eterminedtocommitt hecrime; deliberatelyandintentionallysought.
Peoplev.Pagapulaan2
019
2) an act manifestly indicating that the offender clung to his
To take advantage of superior strength means to purposely use Peoplev.Nasayaor eTreachery
determination;and
excessive force
out
of proportion to the means of defense available to
3) a lapse of time, between the determination to commit the thepersonattacked. The victim, while squatting on top of a bench and eating his meal
crime and the execution thereof, sufficient to allow the offender Unlike in treachery,
where the victim was
not
given
the
opportunity with a plate in one hand, was certainly in no position to defend
toreflectupontheconsequencesofhisact. to defend himself or repel the aggression, taking advantage of himself or to retaliate. Accused may have forewarned Joves about
superior strength does not mean that the victim was what he was about to do by telling him to finish his meal.
Mariv.CA completelydefenseless. Nevertheless, accused did not wait for Joves to finish. He did not give
Joves the opportunity to stand up. Joves not only failed to reply to
The mere fact that the victim is a woman is not per se an accused’s order for him to finish his meal, but also failed to make any
Peoplev.Enojo2
019
aggravating circumstance. There was
no
finding that
the
evidence instinctive reaction to the perceived threat posed by accused who
proved that the accused in fact deliberately intended to offend or It
has
been consistently
held that
an attack made by a man with a was
holding two knives. From all indications, the attack on Joves was
insult the sex of the victim, or showed manifest disrespect to the deadly weapon upon an unarmed and defenseless woman suddenandunexpected.
offended woman or displayed some specific insult or disrespect to constitutes the circumstance of abuse of that superiority which his
her womanhood. There was no proof of specific fact or circumstance, sex and
the
weapon
used
in
the act afforded him, and from which the Peoplev.delaTorrer eDwelling
other than
the
victim is
a woman, showing insult or disregard of sex womanwasunabletodefendherself.
inorderthatitmaybeconsideredasaggravatingcircumstance. In
People v.
Parazo, the
“dwelling” contemplated in Article 14(3) of
Peoplev.ArizobalreDwelling,Treachery,Band,Nighttime the RPC does not necessarily mean that the victim owns the
place where he lives or dwells. Be he a lessee, a boarder, or a
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Peoplev.Aspili
bedspacer, the
place
is home, the
his sanctity of which the law (204-245)
seeks to
protect. The fact that the crime was consummated in the We find no merit in the appellants' contention that the
lower court
nearby house is also immaterial. Marita was forcibly taken by erred in considering recidivism as an aggravating circumstance. All a) publicauthorityis
appellant from her dwelling house (kitchen) and then raped her. the appellants are recidivists. They
were serving
sentence by
virtue engagedintheexerciseof
Dwelling is
aggravating if
the
victim was
taken from
his
house of
a final judgment of
conviction when they committed the offenses. hisfunctions;
althoughtheoffensewasnotcompletedtherein. Aspili, Magbanua, Mendoza and Rebutido have previously been b) authorityisnotthe
convicted of the crimes of frustrated homicide, serious physical Contemptor
personagainstwhomthe BecomesDirect
Peoplev.Matibag2015 injuries, theft, and murder and trespass to dwelling, respectively. insulttothe
crimeiscommitted; Assaultifd one
Both Sales and
Aguirre have
previously been convicted of robbery in public
c) offenderknowshimtobe against a
uthority
The special aggravating circumstance of use of unlicensed band. authorities
firearm, which was duly alleged in the Information, should be apublicauthority;
appreciated in
the
imposition of penalty. When Matibag killed Duhan We likewise uphold the trial court's finding that the crime was d) presencehasnot
with his firearm, the use thereof was unauthorized under the purview aggravated because it was committed by a band. All the six preventedthe
of RA 8294 and is equally appreciated as a special aggravating appellants were armed when they boarded the vessel and perpetrated commissionofthecrime.
circumstance. As
a result,
the
imposition of the maximum penalty of their dastardly acts. There is also abuse
of
superior strength,
death, which is reduced to reclusion perpetua in light of RA 9346, since most of the victims were women and children ranging from 2 to a) Deliberateintenttooffend
stands proper. To
this, the Court adds that Matibag isnot
eligible for 9yearsold. orinsult(sinequanon)
parole. Rank:thereshouldbea
However, the aggravating circumstances of nocturnity and craft
Insultor differenceinthesocial Disregardofsex
should not have been considered by the lower court. There was no
Peoplev.Perrerasr eDwelling disregardof conditionoftheoffenderand absorbedi n
showing that the appellants purposely sought the cover of night
Dwelling
aggravates a felony where the crime was committed in the when they committed the special complex crime of robbery with offendedparty offended; treachery;
dwelling of
the
offended party if
the latter
has not given provocation homicide. Neither did the appellants employ craft, since they had Age:thereisaconsiderable
or if the victim was
killed inside his house.
Although accused
was already boarded the vessel when they pretended to buy Tanduay Rum gap;
outside of the house when he fired, the victim was inside his house. in exchange for the dried fish and
chicken
they
were carrying.
Even Sex:Female.
For the circumstance of dwelling to be considered, it is not necessary without such pretense, they could nonetheless have carried out their
that the accused should have actually entered the dwelling of the unlawfulscheme. itisenoughthat
a) offendedpartymustnot
victim to commit the offense; it is enough that the victim was thevictimwas
attackedinsidehisownhouse. ReviewofAggravatingCircumstances Dwelling giveprovocation(s ine
attackedinside
quanon)
Circumstance Requisites Notes hisownhouse
Peoplev.Taño
Inherenti n ★ Betrayalof
The Court finds that dwelling cannot be appreciated as an a) offendedpartyhadtrusted
Malversation confidence
aggravating circumstance. The building where the
two
offenses were theoffender;
(217); NOT
committed was not entirely for dwelling purposes. The evidence b) offenderabusedsuch
shows that it consisted of two floors: the ground floor, which was Falsificationof aggravating
a) Donebyapublicofficer; trustbycommittinga
being operated as
a video rental shop, and the upper floor, which was Abuseofpublic documentby Abuseof ★ Confidence
b) Tookadvantageo f crimeagainsttheoffended
used as a residence. It was in the video
rental shop
where the
rape position public confidence mustbe
position party;
was committed. True, the victim was dragged to the kitchen and toilet officers(171); immediate
but
these two sections were adjacent to and formed parts of the store. c) abuseofconfidence
Art19par3; andpersonal
Being a commercial shop that caters to the public, the video facilitatedthe
Crimesbypublic ★ Stealingthe
rental outlet was open to the public. As such, it is not attributed the commissionofthecrime
officers propertyof
sanctityofprivacythatjurisprudenceaccordstoresidentialabodes.
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hostiswith together,takingd irect inducement. ★ Ifoffender
abuseof partintheexecutionof a) Accusedontrialforan hasnotbeen
confidence theact; offense; previously
b) previouslys erved punishedor
Obvious ungratefulnessmustbeobvious,i.e.manifestand COMMONELEMENTSFORPAR6 sentenceforanother served
ungratefulness clear. a) facilitatedthecommissionofthecrime;OR offenseofanequalor sentence,
b) especiallysoughtbytheoffendertoinsurethecommission Reiteracionor
greaterpenalty,orfortwo reiteracion
ChiefExecutive: ofthecrimeorforthepurposeofimpunity;OR habituality
ormorecrimesofa isNOT
a) Publicauthoritymustbe Neednotbein c) offendertookadvantageforthepurposeofimpunity; lighterpenaltythanthat attendant;
intheirofficewhile thepalace;His forthenewoffense; ★ Reiteracion
Palaceofthe Calamity
performinghisduty; merepresence c) beconvictedofthenew NOT
ChiefExecutive includes
b) Hemaybetheoffended aggravates;He offense. ALWAYS
party neednotperform Calamityor a) Offendermusttake conflagration,
aggravating
hisduties; misfortune advantageofcalamity; shipwreck,
earthquake, a) theremustbeatleasttwo
a) crimeoccurredinthat Twoalternative epidemic Ifnotallegedto
Consideration (2)principals,oneby
periodofdarkness testsfor qualifythecrime
ofprice,reward inducementandthe
beginningatendofdusk nocturnity: a) armedpersonstookpart tomurder,
Notconsidered orpromise other/sbydirect
andendingatdawn; a) Objective: inthecommissionofthe GENERIConly
Nocturnidador whenboth participation;
b) placemustnotbe facilitates crimeeitherdirectlyor
Nighttime partiesare
illuminated; crime; Aidofarmed indirectly; Whenthecrimecommittedis
EQUALLYarmed; Greatwaste
c) crimemustbeginandbe b) Subjective: men b) accusedavailedhimself parricide,thereisonly
Notconsideredif andruin
accomplishedinthe purposely oftheiraid,orreliedupon GENERICaggravating
conspiracyis
nighttime; sought themduringthe
present Meansare
commissionofthecrime Explosion If there is intent to
kill,
using
purposelyused
a) Theplaceprovidesno explosion,crimeisMURDER
"Forthe a) Offenderisontrialforanoffense; toaccomplisha
reasonablepossibilityof
purposeof b) previouslyc onvictedbyfinaljudgmentof If person dies as a result criminal
thevictimreceivingsome without intent, COMPLEX purpose.
impunity" anothercrime;
help; Derailmentof CRIME of damage to
means of
Inan meanstoprevent c) bothoffensesembracedinsametitleofCode;
b) accusedsoughtthe Locomotive communication with
uninhabited offender's d) offenderbeconvictedofnewoffense
solitudeforaneasyand homicide (Arts 330 and 249 in
place recognition,or ★ Alsoappliesifbothoffensesviolatethe reltoArt4and48);
uninterrupted Recidivist
securehimself sameOrdinance/SPL
accomplishmentofthe
fromdetection ★ ControllingistimeofTRIAL,notthe a) timewhenoffender
crime,andtoinsure Afteroffender
andpunishment. commissionofcrime; determinedtocommit
concealmentofoffense; haddetermined
Evident crime;
★ Thecommissionofcrimeandrendering tocommitthe
Premeditation b) actindicatingculprit
a) atleastfour; Oneofthefour ofjudgmentmustbesuccessive:e.g. crime,2ndreq.
Byaband b) allf ourarea
rmed; shouldnotbea Crime1→Judgment1→Crime2→Judgment2 clungtothis
exists.
c) allshallhaveacted principalby determination;
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c) sufficientlapseoftime disgraceand The intoxication of the
offender
shall be
taken
into
consideration
betweendetermination obloquytothe as a mitigating circumstances when the offender has committed a
andexecution,allowing materialinjury felony in a state of intoxication, if the same is not habitual or
REFLECTIONandCOOL causedbythe subsequent to the plan to commit said felony but when the
intoxication is habitual or intentional, it shall be considered as an
THOUGHT crime.
aggravatingc ircumstance.
Actdoneinorder There is an unlawful entry
Peoplev.Orillarerelationship
Craft involves intellectual trickery nottoarouse UnlawfulEntry when an entrance is effected NOTforescape
andcunning suspicionofthe by a way not
intended
for
the The Amended Information did not allege Remilyn’s
minor
age.
The
purpose. prosecution’s failure to
allege specifically Remilyn’s
minor age
victim;
preventsthetransformationofthecrimetoitsqualifiedform.
Breakingw all,
Differsfrom Offender need not enter the building for
involvesinsidiouswordsor roof,floor,door, Based on a strict interpretation, alternative circumstances are thus
Craftinthat FORCIBLEE NTRYtobeaggravating.
machinationsusedtoinduce orwindow not aggravating circumstances per se. Jurisprudence considers
Fraudinvolves
Fraud thevictiminamannerwhich relationship as an aggravating circumstance in
crimes
against
direct Aidofperson chastity. However, rape
is
no
longer a crime
against chastity for
wouldenabletheoffenderto 1. Twodifferentaggravating:aidofminors
carryouthiscriminaldesign. inducementby under15 under15,meansofmotorvehicle;
itisnowclassifiedasac rimeagainstpersons.
insidiouswords
2. Estafacannotbecommittedbymeansof
Meansofmotor People v. Bondoc lack of instruction generally mitigating
involves resorting to any device to conceal motorvehicle
Disguise vehicle excepti nCrimesagainstpropertyandchastity
identity
a) Injurycausedbe A close examination of the record is indicative of the lack of
a) There should be Theculprit instruction of the offender. There is more than sufficient
deliberatelyincreased
Abuseof notorious inequality of enjoysand justification for the finding of the mitigating circumstance of the
Incompatible bycausingo
therwrong;
superior forces between the two Cruelty delightsin above character that would lessen the rigor of the Anti-Subversion
with Passion o
r b) Otherwrongis
parties; makinghis law.
strength obfuscation
b) Offender takes advantage unnecessaryi n
victimsuffer.
ofthisinequality. accomplishingthecrime;
Peoplev.Fontillas2
010reintoxication
a) Atthetimeoftheattack, a) Appliesto e. Alternative The Court of Appeals correctly rejected the accused-appellant's
victimwasnotina crimes assertion that his extreme i ntoxication from alcohol on the night of
positiontodefendhimself against Alternative circumstances are those which must be taken into the
rape
should be appreciated as a mitigating circumstance. Accused
Alevosiaor orretaliate;AND persons; consideration as aggravating or mitigating according to the nature and did
not
present any evidence that
his
intoxication was
not
habitual
Treachery b) offenderconsciously b) modeof effects of the crime and the other conditions attending its orsubsequenttotheplantocommittherape.
commission. They are the relationship, intoxication and the degree of
adoptedtheparticular attack
instructionandeducationoftheoffender.
means,methods,or consciously Peoplev.Dawaton
forms. adopted. The alternative circumstance of relationship shall be taken into
The trial court erred in not appreciating the alternative
consideration when the offended party is the spouse, ascendant,
Acircumstance circumstance of intoxication in favor of the accused. There
descendant, legitimate, natural, or adopted brother or sister, or
must tend to make
the
effects pertainingtothe being no
indication that
the
accused was
a habitual
drunkard or that
relativebyaffinityinthesamedegreesoftheoffender.
Ignominy of
the crime more humiliating, his
alcoholic intake
was intended to fortify his resolve to commit the
moralorder, crime, the circumstance of intoxication should be credited in his
puttingthevictimtoshame;
whichadds
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7. those
who
having
been granted conditional pardon by the Chief
favor.
Executiveshallhavev iolatedthetermst hereof; 2. The Code provides for attending or modifying circumstances
which when present in the commission of a felony affects
3. ApplicationoftheIndeterminateSentenceLaw 8. whose
maximum
term
of
imprisonment
does not exceed one the computation of
the
penalty to
be
imposed on
a convict.
year. This penalty, as thus modified, is referred to as the
Procedure
"imposablepenalty."
1. GettingtheMAXIMUMrange Insummary
3. From this imposable penalty, the court chooses a single
a. StartwiththeimposablepenaltyoftheRPC; 1. Determinefirstthed
egreeb
eforefixingtheperiods; fixed penalty (also called a straight penalty) which is the
b. If there are privileged mitigating (Art 68-69), or special a. Take the penalty for the principal in the consummated "penalty actually imposed" on a convict, i.e., the prison
stageasthestartingpoint; termhehastoserve.
mitigating circumstances (Art 64[5]), lower the penalty
firstby1degreeormore,thenstartfromthere. b. Disregardtheattendantcircumstances; 4. With the passage of the ISL, the law created a prison
term
which consists of
a minimum and maximum term called the
2. GettingtheMINIMUMrange; c. Considerthefactorsingraduatingbydegree. indeterminate sentence. Thus, the penalty actually
a. The degree next lower to the maximum range is the 2. Determine the
proper
period
in
accordance
with
Arts
62
and imposed under the pre-ISL regime became the maximum
termundertheISLregime.
minimumrangeoftheindeterminatesentence. 64byconsideringthefollowing:
3. GettingtheMAXIMUMT
ERM a. Ordinarymitigating—minimumperiod; Peoplev.Simon
a. Consider the
presence
of
attendant
circumstances
in order b. Genericaggravating—maximumperiod;
todeterminetheperiodofthepenalty; c. Alternative circumstances — depends on whether it 1. If the judgment which could be affected and modified by the
b. Said period shall be the actual maximum term of the mitigatesoraggravates; reduced penalties provided in Republic Act No. 7659 has
already become final and executory or the accused is
indeterminatesentence; d. Complexcrimes—alwaysmaximum; serving sentence thereunder, then practice, procedure and
4. GettingtheMINIMUMT
ERM e. Crimes due to error in personae (Art
49),
the
penalty
for pragmatic considerations would warrant and necessitate the
matter being
brought
to
the
judicial authorities for relief under a
a. Shall be taken from any period of the minimum range, the lesser offense, as between that committed and writofhabeascorpus.
taking into consideration the factors stated in People v. intended,isimposedinthem aximumperiod;
2. Mitigating circumstances should be considered and applied
Ducosin f. Abuse of public position or membership in an
organized only if they affect the periods and the degrees of
the
penalties
syndicate(Art62par1[a])—maximumperiod. withinrationallimits.
Inapplicability
3. The
final query is whether or not the Indeterminate Sentence
1. persons convicted of offenses punished with death penalty or g. Quasi-recidivism(Art160)—maximumperiod;
Law is
applicable to the case now before us. Apparently it does,
life-imprisonment; h. Ordinaryattendantcircumstancesmayoffseteachother. since drug offenses are not included in nor has appellant
2. convicted of treason, conspiracy or proposal to commit committed any act which would put him within the exceptions to
3. Applythei ndeterminatesentencel aw,whenapplicable.
said law and the penalty to be imposed does not involve
treason; Peoplev.Temporada reclusionperpetuaordeath.
3. convicted of misprision of treason, rebellion, sedition or 4. It
is
held
that
Sec
1 of
ISLaw
refers
to
an
offense under a special
Discussiononrelevantterminologies
espionage; law wherein the penalty imposed was not taken from and is
1. The RPC provides for an initial penalty as a general withoutreferencetotheRPC.
4. convictedofp
iracy;
prescription for the
felonies defined therein which
consists
5. habitualdelinquents; of
a range
of
period of time. This is what is referred to as the ⭐Peoplev.Cesar
"prescribedpenalty."
6. havee
scapedfromconfinementorevadedsentence;
Accused-appellant pleaded guilty to
and
was
convicted
of
the
crime
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of
direct assault upon a person in authority with homicide. This The ISLaw, under Section 2, is not applicable to, among others, mediumandmaximumperiods.
being a c
omplex crime, the penalty for the more serious crime cases where the maximum term of imprisonment does not
should be imposed, the same to be applied in its maximum exceed one year. In determining “whether an indeterminate ReynaldoMarianov.People2014
period. The more serious crime is homicide punishable by sentence and not a straight penalty is proper,
what
is
considered
is
reclusiontemporal( theprescribedp enalty). the penalty actually imposed by the trial court, after Death stands alone as the capital punishment. The RPC classifies
considering the attendant circumstances, and not the imposable the felony
of
serious physical injuries in Art 263 based on the gravity
Accused has
to
his
credit two mitigating circumstances: the special penalty.” ofthephysicalinjuries.
or privileged mitigating circumstance of minority and the
With Ferdinand not becoming insane, imbecile, impotent, or blind,
ordinarymitigatingcircumstanceofp leaofguilty. In
the
case at bar,
since the maximum of the imposable penalty is six
his
physical injuries
did not
fall
under Article 263[1]. Consequently,
months, the ISLaw is
not applicable. Thus, it
is proper to impose a
1. Therefore,
under 64, par. 5, the penalty imposable is
Art. the CA incorrectly considered the petitioner’s act as a grave felony
straight penalty of four months and one day of arresto mayor and had it been intentional,
and should not have imposed the penalty at
thepenaltynextlowertothatprescribedbylaw.
deletetheimpositionoffine. arresto mayor in its maximum period to prision correccional in
its
2. Under Art.
71, the penalty next lower to reclusion temporal
medium period. Instead, the petitioner’s act that
caused the serious
isprisionmayor.
Cajigasv.People physical injuries, had it been intentional, would be a less grave
3. Because
of
the
complex nature
of
the
crime
committed, the felony under Article 25, because Ferdinand’s physical injuries were
penalty of prision mayor is to be applied in its ApplyingtheI SLaw,
those under Article 263[3], for having incapacitated him from the
maximump eriod. 1. the minimum of the indeterminate sentence can be performance of the work in which he
was habitually engaged in
for
4. However, having in his favor the ordinary mitigating anywhere within the range of the penalty next lower in morethan90days.
circumstance of plea of guilty without any offsetting degreetothepenaltyprescribedbytheRPCforthecrime.
Conformably with Article 365, the proper penalty is arresto
aggravating circumstance, applying Art. 64, par. 2, the 2. The determination of the minimum term of the mayor in its minimum and medium periods, which
ranges from
penalty of prision mayor maximum should be imposed indeterminate sentence should be done without one to four months. As earlier mentioned, the rules in Article
initsm
inimumrange. considering any
modifying circumstance attendant to the 64 are
NOT applicable in
reckless imprudence, and considering
commission of the crime and without reference to the further that the maximum term of imprisonment would not
Thepropermethod,thus,is periodsintowhichitmaybesubdivided. exceed one year, rendering the Indeterminate Sentence Law
1. to start from the penalty imposed by the RPC, i.e., 3. The penalty prescribed
under
Article
315,
paragraph 2(d) of inapplicable, the Court holds that the s
traight penalty of two
reclusiontemporal; theRPC,asamendedbyPD818,isr eclusiontemporal. monthsofarrestomayorwasthecorrectpenaltyforthepetitioner.
2. then apply the privileged mitigating circumstance of 4. Thepenaltynextlowerindegreeisprisionmayor.
minority and determine
the
penalty
immediately
inferior
in Peoplev.Medroso
5. The
minimum term of the indeterminate penalty should be
degree,i.e.,prisionmayor;and
anywhere within six years and one day to 12 years of prision Paragraph 5 of
Article
365
expressly states
that in
the
imposition of
3. finally,
apply the same in its maximum degree due to the mayor. the penalties provided for in the Article, the courts shall exercise
complexn atureofthecrime their sound discretion without regard to the rules prescribed in
4. but within the minimum range thereof because of the Geligv.People2
010supra Article64.
ordinarymitigatingcircumstanceofpleaofguilty.
The penalty
for
the
crime of
direct
assault is prision correccional The penalty for homicide thru reckless imprudence with
Prision
mayor being
the maximum of the indeterminate sentence, the in
its medium and maximum periods. The penalty should be fixed violation of the Automobile Law is prision correccional in its
minimum of the indeterminate penalty is within the range of the in its medium period in the absence of mitigating or aggravating medium and maximum periods with a duration from two years,
penalty next lower to it as prescribed by the RPC, i.e., prision circumstances. Applying the ISLaw, the petitioner should be four months, and one
day
to
six
years.
Applying the
ISLaw
to
which
correccional. sentenced to an indeterminate term, the minimum of which is appellantisentitledtheimposablepenaltycovers
within the range of the penalty next lower in degree, i.e., arresto
a) a minimum to
be
taken
from
the
penalty
one
degree lower
Lumauigv.People2014s upra mayor in its maximum period to prision correccional in its
than that prescribed by law or arresto mayor in its
minimum period, and the maximum of which is that properly
maximum period to prision correccional in its minimum
imposable under the RPC, i.e., prision correccional in its
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e. Corollarily, the claim for civil liability survives
period, i.e. four months and one day
to
two
years
and
four This period of thirty (30) years vis-a-vis reclusion perpetua is
months,and reiterated in Article 70 of
the
code. Said
article pertinently provides notwithstanding the death of the accused, if the same may
that
in
applying the so
called “ three-fold rule” — i.e., that “when also be predicated on a source of obligation other than
b) a
maximum to be
taken in turn from the penalty prescribed
the culprit has to serve two or more penalties, the maximum delict.
for
the
offense the duration of
which is from two years, four
duration of the convict's sentence shall
not be more than three-fold f. Where the civil liability survives, an action for recovery
monthsandonedaytosixyears.
the
length of
time corresponding to the
most severe of
the penalties
therefore may be
pursued but
only by
way of filing a separate
The determination of the minimum and maximum terms is left imposed upon him” — “the duration of perpetual penalties (pena
perpetua)shallbecomputedatthirtyyears.” civil action. This separate civil
action may be
enforced either
entirely to
the
discretion
of
the
trial
court,
the exercise of which will
against the
executor/administrator or
the estate of the accused,
notbedisturbedonappealunlessthereisaclearabuse.
It was thus incorrect for the Trial Court to specify the duration of depending on
the
source of
obligation upon which the same is
thirty (30) years in relation to the penalty of reclusion perpetua based.(Asilo,Jr.v.People2011alsoP eoplev.Lipata2016)
4. ServiceofSentence imposedbyitontheaccusedinthiscase.
Materialaccumulationsystem 6. CrimesAgainstPersons
Thus, the imputation of a thirty-year duration to reclusion
When the culprit has to serve two or more penalties, he shall serve perpetuainArticles27and70onlyserves: DestructionofLife
them s
imultaneously if the nature of the penalties will so permit 1. as the basis for determining the convict's eligibility for
otherwise,thefollowingrulesshallbeobserved: 246 Parricide
pardon;or
★ In the imposition of the penalties, the order of their respective 1) Apersoniskilled;
2. for the application
of three-fold
the rule
in the service of
severity shall be followed so that they may be executed 2) Deceasediskilledbytheaccused;
multiplepenalties.
successively or as nearly as may be possible, should a pardon have
AND NOT as basis for the duration of the penalty which is 3) Deceasedis:
been granted
as to
the
penalty or penalties first imposed, or should
theyhavebeenservedout. intendedtobep
erpetual. a) thefathermother,orchild,regardlessoflegitimacy;or
b) alegitimateotherascendant,descendantorspouseof
Juridicalaccumulationsystem 5. EffectofDeathoftheAccused accused.
1. Notwithstanding the
provisions
of
the
rule
next
preceding,
the a. The
death of the accused AFTER arraignment and during the Thelawdoesnotrequireknowledgeofrelationship.
maximum duration of the convict's sentence shall NOT be pendency of the criminal action shall extinguish the civil
more than three-fold the length of time corresponding to liabilityarisingfromthedelict. 247 Deathorphysicalinjuriesunderexceptional
circumstances
the most severe of the penalties imposed upon him. No b. However, the independent civil action instituted to enforce
other penalty
to
which he may
be
liable
shall
be inflicted after liability arising from other sources of obligation may be 1) Alegallymarriedpersonoraparents urpriseshisspouse
the sum total of those imposed equals the same maximum continued against the estate or legal representative of the orhisdaughter,thelatteru
nder18yearsofageandl iving
period. accused after proper
substitution or
against
said
estate,
as
the withhim,intheactofcommittingsexualintercourse
casemaybe. withanother.
2. maximum period shall in no case exceed forty (40)
Such
c. If the accused dies BEFORE arraignment, the case shall be 2) Heorshekills,orinflictsanys eriousphysicalinjuriesupon
years.
dismissed without prejudice to any civil action the offended anyorboth,intheactorimmediatelythereafter.
3. In
applying
the provisions of this rule the duration of perpetual
partymayfileagainstthee stateofthedeceased. 3) Hehasnotpromotedorfacilitatedtheprostitutionofhis
penalties (pena perpetua) shall be computed at
thirty
(30) wifeordaughter,norhasconsentedtotheinfidelityofthe
d. Death of the accused pending appeal of his conviction
years. spouse.
extinguishes his criminal liability as well as the civil
Peoplev.Tena liabilitybasedsolelythereon.
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248 Murder 1) Byassistinganothertocommitsuicide,whetheritis
NOTES consummated(P M)ornot(AMaymed-max);
Anyofthefollowingaggravatingcircumstancesarepresent
1. Whenvictimisunder12yearsofage:R
P(Sec10RA7610); 2) Bylendinghisassistancetoanothertocommitsuicidetothe
1) Treachery (16), taking advantage of superior strength (15), extentofdoingthekillinghimself(R
T).
2. Intent
to kill is conclusively presumed when death resulted. (US v
with the aid of armed men (8), or employing means to
Gloria)
weaken the
defense (15),
or of means or persons to insure or 254 Dischargeoffirearms
affordimmunity(8); 251 Deathcausedinatumultuousaffray
1) Dischargesafirearmagainstoratanother;
2) Inconsiderationofaprice,reward,orpromise(11);
1) Therebes everalp
ersons; 2) Nointentiontokill.
3) By means of inundation, fire, poison, explosion,
shipwreck,
stranding of a vessel, derailment or
assault upon
a railroad, 2) Didnotcomposegroupsorganizedforthecommonpurpose
255 Infanticide
fall of an airship (12), by
means
of
motor vehicles, or
with ofassaultingandattackingeachotherreciprocally;
theuseofgreatwasteandruin(20); 3) Quarreleda ndassaultedo
neanotherinaconfuseda nd 1) Childwaskilled;
4) On occasion of any of the preceding, or of an earthquake, tumultuousmanner; 2) Lessthan72hoursofage;
eruption of
a volcano, destructive cyclone, epidemic or other 4) Someonewask
illed; 3) Accusedkilledthechild.
publiccalamity(7);
5) Itcannotbeascertainedwhoactuallykilledthedeceased;
5) Evidentpremeditation(13); NOTES
6) Thosewhoinflicteds eriousphysicalinjuriesorwhoused
6) With cruelty (21), by deliberately and inhumanly augmenting violence: 1. Penaltyissameasthatforparricideormurder.
the suffering of the victim, or outraging or scoffing at his
a) canbeidentified.-PM; 2. Concealing dishonor mitigates liability for the mother (PM
personorcorpse(notinArt14).
b) cannotbedetermined-P
Cmed-max. med-max)andmaternalgrandparents(RT).
Rulesfortheapplicationofcircumstancestoqualifymurder Abortion
NOTES
a) Only
one
of the circumstances required; others considered as
1. Tumultuousa ffrayexistswhena
tleastfourpersonstookpart;
genericaggravating; 256 Intentionalabortion
2. The person
killed
in
the
course
of
the
affray need not be one of
b) When the other circumstances are absorbed or included in
theparticipantsinsaidaffray. Actspunished
the one that qualifies, they cannot be
considered
as
generic
aggravating; 252 Physicalinjuriesinflictedinatumultuousaffray 1) Usingviolenceagainstapregnantwoman(R
T).
c) Any of the qualifying circumstances must be alleged. 2) Withoutviolenceandwithoutconsentofthewoman(P
M).
Otherwise, the crime is only homicide with the qualifying 1) Thereisat umultuousaffray;
3) Withconsent(PCmed-max).
onlyconsideredasgenericaggravating. 2) Therearethosewhosuffereds eriousorlessserious
Elements
physicalinjurieso nly;
249 Homicide 1) Thereisap
regnantw
oman;
3) Thoseresponsiblec annotbeidentified;
2) Violencee xerted,ord
rugsorbeveragesa dministered,or
1) Apersonwaskilled; 4) Thosethathaveusedv
iolenceu
pontheoffendedpartyare
actsuponthewoman;
2) Withoutanyjustifyingcircumstance; known.
3) Asaresult,f etusdies;
3) Withintentiontokill,whichispresumed; 253 Givingassistancetosuicide
4) Abortionisi ntended.
4) Notmurder,parricide,norinfanticide.
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257 Unintentionalabortion 3) have become deformed, or have lost
any other body part, 2) Hadcarnalknowledgew
ithawoman;
or the use thereof, or have been ill or incapacitated to 3) Accomplished
1) Thereisapregnantwoman;
perform the work he was habitually engaged in for
2) Violenceisusedwithoutintendinganabortion; a) usingforceo
rintimidation;
morethan90days.
3) Violenceintentionallyexerted; 4) have
become
ill
or
incapacitated
for
labor
for
more
than b) whenthewomanisdeprivedofreason,o
r
30days. unconscious;
4) Fetusdies.
c) throughf raudulentmachinationo
rgraveabuseof
260 Duel 264 Administeringinjurioussubstancesorbeverages authority;OR
d) whenwomanisu nder12yearsofage(s tatutoryrape)
1) Killingone'sadversaryinaduel;( RT) 1) Offenderinflicteduponanothera
nyseriousphysical
ordemented.
injury;
2) Inflictingphysicalinjuriesuponsuchadversary;( Penalty
PenaltyisR
PtoDeathw
hen:
accordingtothenature) 2) Byk
nowinglyadministeringa nyinjurioussubstancesor
beveragesorbytakingadvantageofhisweaknessofmindor 1) withtheuseofadeadlyweaponorbyatleast2persons;
3) Makingcombatalthoughnophysicalinjurieshavebeen
credulity. 2) thevictimhasbecomeinsane;
inflicted.( AMay)
3) Nointenttokill. 3) specialcomplexcrimeo
fattemptedrapewithhomicide;
PhysicalInjuries 265 Lessseriousphysicalinjuries PenaltyisD
eathw
hen:
1) specialcomplexcrimeo
frapewithhomicide.
262 Mutilation 1) Incapacitatedforlaborfor1
0-30days;orneedsmedical
2) withanyofthefollowing:
attendanceforsameperiod.
Actspunished a) victimisminorandtheoffenderisaparent,ascendant,
2) InjuriesnotthosedescribedinArt263-264.
1) Castration- deprivinganother,eithertotallyorpartially,of step-parent,guardian,relativewithinthe3rdcivildegree,
266 Slightphysicalinjuriesandmaltreatment orthecommonlawspouseoftheparent.
someessentialorganforreproduction.
b) underthecustodyofthepolice,militaryoranylaw
a) Thereismutilationofpenisorovarium.
1) Incapacitatedoffendedpartyforlaborfrom1
-9days,or enforcementagencyorpenalinstitution.
b) Itwasp
urposefulanddeliberate,todeprivethe requiredmedicalattendanceduringsameperiod;(AMen)
c) infullviewofthespouse,parent,child,orother
offendedpartyofreproducing.
2) Didnotpreventoffendedpartyfromhishabitualworkordid relativeswithinthe3rddegreeofconsanguinity.
2) Mayhem- loppingorclippingoffanyotherpartofthebody. notrequiremedicalattendance.(AMenorFine<=200and
d) offenderknowsvictimasr eligious;
Censure);
263 Seriousphysicalinjuries e) victimisbelow7yearsold;
3) Ill-treatmentofanotherbydeedwithoutcausinganyinjury.
(AMenminorFine<=50) f) offenderknowshehasH IV/AIDSorotherSTDand
Ifinconsequenceofthephysicalinjuriesinflicted,injured
transmitstovictim;
personshall:
Rape g) offenderbelongstoAFP,PNP,para-military,otherlaw
1) becomeinsane,imbecile,impotentorblind
enforcementagencyorpenalinstitutionandtakes
2) have lost the use of speech or the power to hear or to 266-ARapebysexualintercourse( Ordinary) advantageofposition.
smell, an
eye,
a hand, a foot,
an
arm, or a leg, or lost the
PenaltyisR
Pw
hen: h) permanentmutilation/disability;
use of any such principal member, or have become
incapacitatedfortheworkhewash abituallyengaged. 1) Offenderisam
an; i) offenderknowsvictimisp
regnant;
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Peoplev.Dalisay
j) offenderknowsvictimhasm
entaldisability,
In People v. Soria, the court discussed that a victim need not identify The presence of either hymenal laceration or spermatozoa on Lanie's
emotionaldisordera nd/orphysicalhandicap.
what was
inserted into his
or
her
genital
or
anal orifice for the court private part
is not
an
essential element
of
rape. In
People v.
Parcia,
tofindthatrapethroughsexualassaultwascommitted. we held that the absence of sperm does not disprove the
charge of
266-ARapethroughsexualassault( Object)
rape. Likewise, in People v. Regala, we ruled that an
intact hymen
PenaltyisP
M Balerosv.People doesnotnecessarilyproveabsenceofsexualintercourse.
1) Offendercommitssexualassault; Whether or not the act of the petitioner, i.e., the pressing of a
Peoplev.Lining
2) Committedbyinserting chemical-soaked cloth while on top of Malou, constitutes an overt act
ofrape. RTC found
Gerry Lining guilty beyond reasonable doubt for the crime
a) hispenisintoanother'smouthoranus;or
offorcibleabductionwithrape,andforanothercountofrape.
b) anyinstrumentorobjectintothegenitaloranal NO. It
would be
too strained to construe petitioner's act of pressing a
chemical-soaked cloth in the mouth of Malou which would induce The medical finding that
the
victim was already a non-virgin, nor the
orifice.
her to sleep as an
overt act
that
will logically and
necessarily ripen fact that she had sexual relations before, would not matter. Even a
3) Accomplished into rape. As it were, petitioner did not commence at all the woman of loose morals could still be a victim of rape, for the
a) usingf orceo
rintimidation; performance of any act indicative of an intent or attempt to rape essence of rape is
the carnal
knowledge of
a woman against her will
Malou. It
cannot be
overemphasized that petitioner was fully clothed andwithoutherconsent.
b) whenthewomanisd
eprivedofreason,or and that there was no
attempt on his part to undress Malou, let alone
unconscious; touch her private part. For what reason petitioner wanted the Nevertheless, accused-appellant could only be convicted for the
c) throughf raudulentmachinationo rgraveabuse complainant unconscious, if
that
was really his immediate intention, crime of rape, instead of the complex crime of forcible abduction
isanybody'sguess. with rape. Indeed, it would appear from the records that the main
ofauthority;orwhenwomanisu
nder12yearsof
ageord
emented. objective of the accused when the victim was
taken to
the
house
of
Perezv.CA Mila Salvacion was to rape her. Hence, forcible abduction is
Qualified absorbedinthecrimeofrape.
a) withtheuseofadeadlyweaponorbyatleast2persons;P
M Perez was found guilty of attempted rape. However, a careful
review of
the
records of
the
case
shows that the crime committed by Peoplev.Monticalvo2013
toRT
petitionerwasa ctsoflasciviousnessnotattemptedrape.
b) thevictimhasbecomeinsane;RT A mental retardate can be classified as a person “deprived of
There is no showing in this case that petitioner’s sexual
organ
had reason,” not one who is “demented” and carnal knowledge of a
c) specialcomplexcrimeofattemptedrapewithhomicide;R
T
even touched complainant’s vagina nor any part of her body. mental retardate is considered rape under subparagraph (b), not
toRP Although the information filed against petitioner was for subparagraph(d)ofArticle266-A(1)oftheRPC.
d) specialcomplexcrimeofrapewithhomicide.R
P attempted rape, he can be convicted of acts of lasciviousness
becausethecrimeofactsoflasciviousnessisincludedinrape. Nonetheless,themistakewouldnotexonerateappellant.
e) anyofthe10qualifyingofpar1.R
T
Peoplev.Aca-ac In People v. Dalandas, citing People
v.
Dumanon, this Court
held
Ricaldev.People2015Leonen,J that mental retardation can be proven by evidence other than
Necessarily, rape is attempted if there is no penetration of
the medical/clinical evidence, such as the testimony of witnesses and
Rape under the second paragraph of
Article
266-A
is
also
known as
female organ because not all acts of
execution were performed. The eventheobservationbythetrialcourt.
“instrument or object rape,” “gender-free rape,” or “homosexual
offender merely commenced the commission of
a felony directly by
rape.” The gravamen of rape through sexual assault is “the
overt acts. Taking into account the nature,
elements, and
manner of Peoplev.YYY2
018reRape
insertion of
the
penis
into
another
person’s mouth
or anal orifice, or
execution of the crime of
rape and jurisprudence on the
matter, it
is
any instrument or object, into another person’s genital or anal
hardly conceivable how the frustrated stage in rape can ever be A
medico-legal report
is NOT indispensable in rape cases as it is
orifice.”
committed. merely corroborative in nature. Thus, even without it, an accused
may still be convicted on the sole basis of the testimony of the
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victim. As such, the credibility of the witness should be assessed 4. Robberyataglance Pars2-3.Robberywithseriousphysicalinjuries
independently regardless of the presence or absence of a
medico-legal report. Trial courts are expected to scrutinize the a) If there
is
violence
against
or
intimidation
of
any
person, 1) Theinjurieswereinflictedinthecourseoftherobbery;and
victim's testimony with great caution, with or without a medico-legal alwaysrobbery. 2) Inflicteduponthosenotresponsibleforthecrime.
reporttocorroboratethesame. b) In the first type of robbery, the value
of
robbed property is Par4.Robberywithunnecessaryviolenceandintimidation
immaterial. Penalty depends on
(1)
the result of the violence
7. CrimesAgainstProperty used,and(2)ontheexistenceofintimidation.
1) Iftheviolenceorintimidationemployedinthecommission
oftherobbery
Robbery c) On the second type, penalty is based on (1) value, (2)
carryingofarms,ifcarriedoutininhabitedbuildings. 2) shallhavebeencarriedtoadegreeclearlyunnecessaryfor
293 Robbery,ingeneral thecommissionofthecrime,or
d) Penalty based solely on value if carried
out
in
uninhabited
3) wheninthecourseofitsexecution,theoffendershallhave
buildings.
1) Elementsofrobberyingeneral inflicteduponanypersonnotresponsibleforitscommission
a) therebe(1)p
ersonalproperty,( 2)belongingto 5. If robbery was effected by employing both violence against or anyofthephysicalinjuriescoveredbysubdivisions3and4
another; intimidation of
persons and force
upon the
things, the latter will ofArticle263.
be absorbed by the
former.
Thus, the
proper crime
to be charged
b) thereis(3)u
nlawfultakingofthatproperty; isunderArt294,notArt299. Par5.Robberywiththeuseofviolenceandintimidation
c) suchmustbe(4)w
ithintenttogain;and ★ Simplerobbery.
6. RA 10883, the New Anti-Carnapping Act of
2016,
which lapsed
d) thereis(5)v iolenceagainstorintimidationof into law on July 17, 2016, is the law applicable when property ,4,5ofArt294qualifiedi f
Robberyundersubdivisions3
anyperson,orforceuponanything. takeninrobberyisamotorvehicle. committedin:
2) Classificationofrobbery a) anuninhabitedplace,or
294 Robberywithviolenceagainstorintimidationofpersons
a) Withviolenceagainst,orintimidationofpersons b) byaband,or
(Arts294,297,298); Par1.Robberywithhomicide c) byattackingamovingtrain,streetcar,motorvehicle,or
b) Bytheuseofforceuponthings(Arts299,302) 1) Robbery with homicide is taken in its generic sense and airship,or
absorbs all other crimes, i.e. serious physical injuries, d) byenteringthepassengers'compartmentsinatrain,or
NOTES contemporaneous thereto. If committed by a band, such
e) onastreet,road,highway,oralley,andwiththeuseof
1. Where the
taking
was lawful and the unlawful misappropriation becomesonlyagenericaggravatingcircumstance.
firearms.
was subsequent thereto, the crime is estafa or malversation. 2) Oneofthefollowingmustbeproventhatthehomicide
But if intent from the very beginning was to gain from the wascommitted: 296 Robberybyaband
prohibitedmaterial,evenwithlawfultaking,thenitisr obbery. a) tofacilitatetherobberyorescapeofculprits;
2. Unlawful taking complete from the moment the offender gains 1) Atleastfourarmedmalefactorstakepartincommitting
b) topreservethepossessionoftheloot; robbery.
possession of the thing as to robbery with violence against or
intimidation of persons. The thing must be taken out of the c) topreventdiscovery;or
2) Whenanyofthearmsusedisu nlicensed,thepenaltyupon
buildingastorobberywithforceuponthings. d) toeliminatewitnessesorsuppressevidence. allrobbersshallbethemaximumcorrespondingpenalty,
3. In order for the element of violence or intimidation to be Par1.Robberywithrape withoutprejudicetothecriminalliabilityofillegal
appreciated, it must be present before the taking of personal possessionofsuchfirearms.
1) Theintenttogainmustprecedetherape.
property is complete. Except, when the violence results in (a) 3) Anymemberpresentshallbepunishedasprincipalofanyof
2) Committedwhentherobberyisaccompaniedbyrape.
homicide, (b) rape, (c) intentional mutilation, (d) or serious theassaults,unlessitbeshownthatheattemptedtoprevent
physicalinjuriesunderpars1and2. 3) Therapemustbeconsummated. thesame.
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4) Abandmemberisliableforanyassaultscommittedw
hen a) breakingofdoors,wardrobes,chests,oranyother 3) Personalpropertyofanotherwastakenwithintenttogain.
thefollowingconcur: kindoflockedorsealedfurnitureorreceptacle;O
R
304 Possessionofpicklocksorsimilartools
a) Hewasamember; b) bytakingsuchawaytobebrokenorforcedopen
b) Presentatthecommissionofrobbery; outside. 1) Offenderhasp
ossession;
c) Otherscommittedtheassault; 300 Robberyinanuninhabitedplaceandbyaband 2) Sucharespeciallyadaptedtocommitrobbery;and
d) Didnotattempttopreventassault. 3) Possessionwasu
nlawful.
1. QualifiesArt299.Punishedbythem
aximumperiodofthe
298 Robberybyexecutionofdeeds⭐ penaltytherefor. Falsekeys
2. Thattheplacebeuninhabited,andcommittedbyaband 1)(a)Art304;(b)Genuinekeysstolenfromowner;(c)Anykeys.
1) Offenderi ntendstodefraudanother; mustconcur.
2) Compelshimtosign,execute,ordelivera
nypublic Brigandage
3. Theinhabitedhouse,publicbuilding,edificeforreligions
instrumentordocument; worshipmustbel ocatedinanuninhabitedplace.
306 Brigandage
3) Bymeansofviolenceorintimidation. 4. Art299isqualifiedwhenb
othcircumstancesconcur.In
Robberywithviolenceagainstorintimidationofpersons, Existswhen
299 Robberyinaninhabitedhouse,publicbuilding,or eithermayqualify(Art295). 1) Thereareatleastfourarmedmen.
edificedevotedtopublicworship
Whatisaninhabitedhouseandtheirdependencies 2) Formingabandofrobbers;
ElementsofsubdivisionA
1) Dependenciesmustbe 3) Purposeisto
1) Offendere ntered
a) Contiguous, a) commitrobberyinthehighway,
a) aninhabitedplace,or
b) haveaninteriorentranceconnectedtherewith,and b) kidnapforransom,or
b) publicbuilding,or
c) formpartofthewhole. c) attainbymeansofforceandviolenceanyother
c) edificedevotedtoreligiousworship.
2) Orchardsandlandsusedforcultivation,n
otdependencies. purpose.
2) Theentranceeffectedby:
302 Robberyinanuninhabitedplaceorinaprivatebuilding 307 Aidingandabettingbrigands
a) anopeningnotintendedforentranceoregress;
b) breakinganywall,roof,orfloororbreakingany 1) Offenderentersanuninhabitedoraprivatebuilding. 1) Thereisabandofbrigands;
doororwindow;
2) Anywaspresent: 2) Offenderknows;
c) usingf alsekeys,picklocksorsimilartools;
a) entrancewaseffectedthroughanopeningnot 3) Doesany:
d) usinganyf ictitiousnameorpretendingtheexercise intendedforegress; a) aids,abets,protects
ofpublicauthority.
b) awall,roof,floor,oroutsidedoororwindowwas b) givesinfoonpolicemovement;
3) Onceinside,takespersonalpropertyofanotherwithintentto broken;
gain. c) acquiresorreceivespropertytakenbysuch
c) falsekeys,picklocks,wereusedtoeffectentrance; brigands.
ElementsofsubdivisionB
d) adoor,wardrobe,chest,wasbroken;
1) Offenderisinsideregardlessofhowheentered; Theft
e) aclosedorsealedreceptaclewasremoved,andbe
2) Theunlawfultakingdoneby brokenopenelsewhere. 308 Theft
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Whoareliablefortheft 2. Grave abuse of confidence is a mere circumstance which
SwindlingandOtherDeceits
1) Withintenttogain,butwithoutviolenceagainstor aggravates and qualifies the crime. It is not necessary for said
intimidationofpersonsnorforceuponthings,take,personal circumstance to be premeditated in order to be taken into
315 SwindlingorE
stafa
property,ofanother,withoutthelatter'sconsent. consideration. Its presence in the commission of the crime is
2) Havingfoundlostproperty,failtodeliversametothelocal sufficient. Fraudcommittedbythesemeans:
authoritiesoritsowner. 3. Theft by domestic servant always qualified. Not so for (par1)WITHUNFAITHFULNESSORABUSEOFCONFIDENCE
3) Afterhavingmaliciouslydamagedthepropertyofanother, housemate.Notforlaborer.
a) alteringt hesubstance,quantity,orqualityofanythingof
removeormakeuseofthefruitsorobjectofthedamage 4. Theft by
truck
driver
or by shepherd or by one who had access to value;
causedbythem. theplacewherethestolenpropertyiskeptisqualifiedtheft.
b) misappropriatingorconvertinganypersonalproperty
4) Enteranenclosedestateorafieldwheretrespassis receivedint rust,o
rdenyingt ohavingreceivedsame.;
Usurpation
forbiddenandwithoutconsent,huntorfishuponthesameor
c) takingundueadvantageofthesignatureinblank,andby
gatherfruits,cerealsorotherforestorfarmproducts.
312 Occupationofrealproperty writinganydocumentabovesuch.
Elements
Actspunished (par2)BYFALSEPRETENSES
1) Takingofpersonalproperty;
1) takingpossessionofanyrealpropertyofanotherbymeans a) usingfictitiousnames,orfalselyp
retendingt opossess
2) belongingtoanother; power,influence,qualifications,property,credit,agency,
ofviolenceagainstorintimidationofpersons.
3) donewithintenttogain; businessorimaginarytransactions,orbymeansofother
2) usurpinganyrealrightsinpropertybelongingtoanotherby similardeceits.
4) withoutconsentofowner; meansofVAIP.
5) beaccomplishedw ithoutviolenceagainstor,intimidationof b) alteringthequality,finenessorweightofanything
Elements pertainingtohisartorbusiness.
persons,orforceuponthings.
1) takespossessionofanyrealpropertyorusurpsanyreal c) pretendingtohaveb
ribedanyGovernmentemployee.
310.QualifiedThefti f rightsthereof;
(maximumpenalty)
1) theftcommittedbyad
omesticservant; 2) belongstoanother; d) postdatingorissuingabouncingcheck.
2) withgraveabuseofconfidence; 3) violenceagainstorintimidationofpersonsisused; e) obtaininganyfoodoraccommodation,orcreditofsuch.
3) propertystolenisa 4) withintenttogain. (par3)BYANYOFTHEFOLLOWINGFRAUDULENTMEANS
a) motorvehicle,
313 Alteringboundariesorlandmarks a) inducinganother,bymeansofdeceit,tosignadocument;
b) mailmatter,
b) resortingtosomefraudulentpracticetoinsuresuccessina
c) largecattle; 1) Therebeboundarymarksormonuments,orestates; gamblinggame;
4) consistsofcoconutstakenfromplantation; 2) Offenderalterssame. c) removing,concealing,ordestroying,inwholeorinpart,any
5) fishtakenfromfishpondorfishery; courtrecord,officefiles,document,oranyotherpapers.
314 Fraudulentinsolvency
6) ontheoccasionoffire,earthquake,typhoon,volcanic Elementsingeneral
eruption,oranyothercalamity,vehicularaccident,civil 1) Offenderisad
ebtorwithdueanddemandableobligation; 1) Accusedd
efraudedanotherby
disturbance. 2) Heabscondswithhisproperty; a) abuseofconfidence,or
QUALIFIEDTHEFT 3) Tothep
rejudiceo
fhiscreditors. b) meansofdeceit;and
1. Penaltyist wodegreeshigher.
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2) Damageorprejudicecapableofpecuniaryestimationcaused 4. Demand is not legally r equired, but is necessary to show 1) Offenderpostdatedacheck,orissuedacheckinpaymentof
uponinjuredparty. circumstantial evidence of misappropriation after failing to anobligation;
Elementsofestafawithunfaithfulness(sub1[a]) accountupondemand. 2) Donewhentheoffenderhadnofundsinthebank,orhis
1) Offenderhasanonerousobligationtodeliversomethingof 5. Thereisnoestafathroughnegligence. fundsdepositedthereinwerenotsufficienttocoverthe
value; 6. Estafa through falsification of public documents (FPD) is amount.
necessarilyi ncludedinachargeofmalversationthroughFPD.
2) Healtersitssubstance,qualityorquantity; Elementsofestafabyinducinganothertosignanydocument.
3) Damageorprejudiceiscaused. 7. Misappropriation of policeman of firearms received is: estafa,
(No3[a])
when it is not involved in the commission of a crime, and
malversation,ifitisinvolved. 1) Offenderinducedoffendedpartytosignadocument;
Elementsofestafawithabuseofconfidence(sub1[b])
2) Deceitbeemployed;
1) Money, goods, or other personal property be received in Elementsofestafabytakingundueadvantageofthesignature 3) Offendedpartypersonallysigned;
trust,
or
on
commission, or for
administration, or
under any inblank(sub1[c])
other
obligation involving the
duty
to make delivery of, or to 4) Prejudicebecaused.
1) Thepaperwiththesignatureoftheoffendedpartybein
return. There should be proof that defendant made statements tending to
blank;
2) Suchhasbeenm
isappropriatedorconverted; mislead the
complainant as
to
the character of the document executed
2) Offendedpartyshouldhavedeliveredittotheoffender; byhim.
3) Totheprejudiceofanother;
3) Adocumentiswrittenabovethesignaturewithoutauthority; Elementsofestafabyremoving,concealing,ordestroying
4) There is demand from offended party (not required when 4) Liabilityordamageiscausedtoanother. documents(No3[c])
thereisevidenceofmisappropriation)
1) Therebecourtrecord,officefiles,documentsoranyother
★ Three(3)waysofcommitting ElementsofestafabymeansofDECEIT(subs2,3) papers;
1) misappropriatingor 1) Theremustbeaf alsepretense,fraudulentact,o
rfraudulent 2) Offenderremoved,concealedordestroyedanyofthem;
2) convertingthethingreceived;or means;
3) Withintenttodefraudanother.
3) denyingthatthethingwasreceived. 2) Mustbemadepriortoorsimultaneouslywiththe
commissionofthefraud; Elementofdamageorprejudicemayconsistin:
1. Estafa by
conversion.
Pledging a thing
which
was received only 1) Offendedpartybeingdeprivedofhismoneyorproperty,as
to
be
sold
on
commission. It
presupposes that the thing has been 3) Offendedpartyr eliedonit,orwasinducedbyittopartwith
resultofthedefraudation;
devotedtoapurposeorusedifferentfromthatagreedupon. hisproperty.
4) Thereisdamage. 2) Disturbanceinpropertyright;or
2. Estafa by misappropriation. Appellant took the sum of
P8.3K
out
of the funds of the Manila Railroad Company, replacing it with 3) Temporaryprejudice.
Three(3)waysofcommittingArt315No.2[a]
his
personal check. He directed the cashier to hold the check until
1) usingfictitiousname; NOTESREESTAFA
end of month. He used the amount for his personal use. It was
found out he had insufficient funds to cover the check, though 2) falselypretendingtopossess:power,influence,qualifications, 1. Disturbance in property rights. Though the typewriter was
later, he was able to replenish said account. He is still guilty property,credit,agency,businessorimaginarytransactions; later recovered after it was sold to another by accused,
because the law does not distinguish between permanent and or complainant suffered disturbance of
his
property
right over
said
temporarymisappropriations. 3) throughs imilardeceits. typewriter.
3. In estafa, damage to the offended party, not the gain of the Elementsofestafabypostdatingacheckorissuingacheckin 2. The
basis
of
penalty is
the
amount or value misappropriated and
offender,istheimportantconsideration. paymentofanobligation.(No2[d]) not
delivered or returned before the institution of criminal action.
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Payment subsequent to the commission of estafa does not another bytakingadvantageofthecredulityofthepublicinanyother
distinguishthecriminalliability. Par5.Byacceptinganycompensationforservicesnotrendered similarmanner,f orprofitorgain.
3. Temporary prejudice. Complainant bought a filter from an agent orforlabornotperformed.
through
a check. The filter
was
not
delivered,
and found agent
to Arson
Par6.Byselling,mortgagingorencumberingrealpropertyor
be
bogus. He called
bank to suspend payment. Thus, he could not propertieswithwhichtheoffenderguaranteedthe
dispose of the amount in the check possessed by the accused 320 DestructiveArson
fulfillmentofhisobligationassurety.
bogusagent.
1) Offenderisas uretyinabond; PenaltyofR
PtoDeathtoanypersonwhoburnsthefollowing
4. If a person procures a loan
through
a falsified
public document,
2) Heguaranteedwithhisrealproperty/ies; 1) Oneormorebuildings,consequentto1singleactofburning,
but settles said loan in due time, there is no estafa, only
3) Heencumberssaidguaranty; orasaresultofsimultaneousburningsorcommittedon
falsification.
severalordifferentoccasions.
5. Thereisacomplexcrimeoftheftandestafa. 4) Suchencumbranceis
2) Anybuildingofpublicorprivateownershipwherepeople
a) withoutexpressauthorityfromcourt, usuallycongregate,regardlessofwhetheroffenderknows
316 Otherformsofswindling
b) madebeforethecancellationofhisbond,O
R thattherearepersonsinsaidbuildingatthetimeitisseton
Par1.Byconveying,selling,encumbering,ormortgagingany c) beforebeingrelievedfromthebond. fire,andwhetheritisinhabitedornot.
realproperty,pretendingtobetheownerofthesame. 3) Train,ship,vessel,airship,plane;
TheremustbedamagecausedunderArt316.
1) Thingbeimmovable; 4) Building,factory,warehouses,devotedtotheserviceof
2) Offenderfalselyrepresentstobetheowner; 317 Swindlingaminor publicutilities;
3) Executedanactofownership; 1) Offendertakesadvantageoftheinexperience,emotions,or 5) Anybuildingburnttoconcealevidenceofanotherviolation
feelingsofaminor; oflaw,toconcealbankruptcyordefraudingcreditorsorto
4) Totheprejudiceofownerorathirdperson.
collectfrominsurance.
Par2.Bydisposingofrealpropertyasfreefromencumbrance, 2) Inducessuchminor
6) Arsenal,shipyard,storehouse,militarypowerorfireworks
althoughsuchbenotrecorded. a) toassumeanobligation, factory,ordinance,storehouse,archives,generalmuseumof
1) Thingdisposedisrealproperty; b) togiverelease,O
R theGovernment;
2) Offenderknewoftheencumbrance,recordedornot. c) toexecuteatransferofanypropertyright; 7) Inaninhabitedplace,anystorehouseorfactoryof
3) Thereisexpressrepresentationthatthepropertyisf reefrom 3) Considerationbe inflammableorexplosivematerials.
anyencumbrance;
a) someloanofmoney, PD1613.SimpleArson🔗
4) Thereisdamagetoanother.
b) credit,O
R
Par3.Bywrongfullytakingbytheownerhispersonalproperty ★ Arsoni sthemaliciousdestructionofpropertybyfire.
c) otherpersonalproperty;
fromitslawfulpossessor ★ Kindsofarson:
4) Tothedetrimentoftheminor.
1) Offenderistheownerofpersonalproperty;
1) Simplearson;
2) Itisinthelawfulpossessionofanother; 318 Otherdeceits 2) Destructivearson;
3) Offenderwrongfullytakesitfromitslawfulpossessor;
1) Defraudingordamaginganotherbyanyotherdeceitnot 3) Othercasesofarson.
4) Prejudiceiscauseduponthepossessororathirdperson. mentionedintheprecedingarticles. ★ Simplearson.Burningorsettingfiretothepropertyof
Par4.Byexecutinganyfictitiouscontracttotheprejudiceof 2) Interpretingdreams,bymakingforecasts,tellingfortunes,or another,orhisownundercircumstanceswhichexposeto
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dangerthelifeorpropertyofanother.P
M. 2) Suchactdoesnotconstitutearson; government or commercial establishments. If as
a consequence
★ Othercasesofarson.P
unishedbyR
T-RP of
the
commission of
any of the acts penalized under Art. 320, death
3) Bedonemerelyforthesakeofdamagingit. shouldresult,themandatorypenaltyofdeathshallbeimposed.
1) Anygovernmentbuilding; 328.SpecialcasesorQualifiedmaliciousmischief
2) Inhabitedhouseordwelling; On the other hand, PD
1613
remains
the
governing law
for
Simple
1) Toobstructperformanceofpublicfunction. Arson. If special aggravating circumstances are
present,
the
penalty
3) Industrialestablishment,shipyard,oilwell,mine 2) Usinganypoisonousorcorrosivesubstance; underSec.3shallbeimposedinitsmaximumperiod:
shaft,platformortunnel; a) Ifcommittedwithintenttogain;
3) Spreadinganyinfectionorcontagionamongcattle.
4) Plantation,farm,pastureland,growingcrop,grain b) Ifcommittedforthebenefitofanother;
4) CausingdamagetopropertyoftheNationalMuseum,Library,
field,orchard,bamboogroveorforest;
ortoanyarchiveorregistry,waterworks,road,promenade, c) If the offender is motivated by spite or hatred
towards
the
5) Rice,sugar,canemills,ormillcentral; oranyotherthingusedincommonbythepublic. owneroroccupantofthepropertyburned;and,
6) Railwayorbusstation,airport,wharforwarehouse. d) If committed
by
a syndicate, or
group
of
three
(3)
or
more
332 Personsexemptfromcriminalliability persons.
★ Specialaggravatingcircumstances.MAX
1) Intenttogain; Crimesinvolved If by reason, or on the occasion of Simple Arson death
results,
the
penaltyofreclusionperpetuatodeathshallbeimposed.
2) Forthebenefitofanother; a) Theft;
3) Motivatedbyspiteorhatetowardsowneror b) Estafa; Here, the applicable provision of
law should
be Sec. 3, par. 2, of PD
occupant; 1613, which imposes a penalty of reclusion temporal to
reclusion
c) Maliciousmischief.
perpetua for o ther cases of arson as the properties burned by
4) Byasyndicate(atleast3persons). Personsexempted accused are specifically described as houses, contemplating
inhabited houses or dwellings under the aforesaid law. The 3rd
NOTESREARSON a) Spouses, ascendants, descendants,
or
relatives
by
affinity
in
special aggravating circumstance cannot be appreciated in the present
thesameline;
1. Attempted
arson. Placing
the
rags
soaked in gasoline beside the case where it
appears that
he
was acting
more on impulse, heat of
woodenwallofthebuildingandlightingamatch. b) Widowed spouse with respect to the property which anger or
risen temper. Thus, accused-appellant must be held guilty
belonged to
the
deceased spouse before the same passed into ofSimpleArson.
2. Frustrated arson. The rags were set on fire, but were put out
thepossessionofanother.
beforeanypartofthebuildingwasburned.
c) Brothers and sisters and brothers-in-law and sisters-in-law, if Peoplev.Buebos
3. Ifmainobjectiveisburning,butdeathresults,a
rson. livingtogether.
The
legal
basis
of
the
trial
court
in
convicting
petitioners of arson is
4. If
purpose
is
to
kill
a person
in
the building, and setting it on fire
Peoplev.SorianoreArson Section3[2]ofP.D.No.1613.Theelementsofthisformofarsonare:
wasthemeansresorted,m urder.
a) thereisintentionalburning
5. If
killing
has
been
committed,
then
the
building
is burnt to cover Arsonisthemaliciousburningofproperty.
b) ofaninhabitedh
ouseordwelling.
itup,murder/homicideANDarson. 1) DestructiveArson(Art.320)and
2) othercasesofarson(PD1613). Admittedly, there is a confluence of the foregoing elements here.
MaliciousMischief However, the information failed to allege that what was
This classification
is
based
on
the
kind,
character and
location of intentionally burned was an
inhabited house or
dwelling. That
327 Maliciousmischief thepropertyburned,r egardlessofthevalueofthedamagecaused. is fatal. In fine,
petitioners
can
be
convicted only
of
simple
arson,
underSection1[1]ofP.D.No.1613,punishablebyprisionmayor.
1) Offenderdeliberatelycauseddamagetothepropertyof Article 320 of the RPC, aab RA 7659, contemplates the malicious
another; burning of structures, both public and private, hotels, buildings,
edifices, trains, vessels, aircraft, factories and other military, Peoplev.Macabando2013
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The
Information alleged that
the
appellant
set
fire
to
his
own
house, 1) the offender has
postdated
or issued
a check in
payment of 5. That it be accomplished without the use of violence or
and that the fire spread to other inhabited houses. That the an obligation contracted at the time of the postdating or intimidationagainstpersons,norofforceuponthings;
appellant’s act affected
many families will not convert the crime to issuance;
destructive arson, since the
appellant’s
act
does not appear to be 6. Thatitbedonewithgraveabuseofconfidence.
heinous or represents a greater degree of perversity and 2) at the time of postdating or issuance of said check, the
offenderhasnofundsinthebankorinsufficient;and Cahilig took money from WPESLAI and its depositors by taking
viciousness when compared to those acts punished under Article
advantage of
her
position
as
cashier.
Her
intent
to
gain is clear in the
320 of the RPC. The established evidence only showed that the 3) thepayeehasbeend
efrauded.
use of a carefully planned and deliberately executed scheme to
appellant intended to burn his own house, but the conflagration
In People v. Reyes, the Court ruled that for estafa under the
above committhetheft.
spreadtotheneighboringhouses.
provision to prosper, the issuance of the check must have been
Grave abuse of
confidence, as an
element of Qualified Theft, “must
the inducement for the other party to
part with his
money or
Peoplev.Abayon2
016 be the result of the
relation by
reason of
dependence, guardianship,
property.
or
vigilance, between the appellant and the offended party that might
Thereisnocomplexcrimeofarsonwith(multiple)homicide. create a high
degree of confidence between them which the appellant
The prosecution sufficiently demonstrated Batac's deceit when it
established that the latter induced Frias
into
buying the
checks
at
a abused.”
In cases where both burning and death occur, it is de rigueur to
ascertainthemainobjectiveofthemalefactor: rediscounted rate by representing to him that
she
had enough
funds
inheraccounttocoverthem. Brokmannv.People2012
a) if
the
main objective is the burning of the building or edifice,
but death
results
by
reason or
on
the
occasion of
arson, the Deceit and damage are essential elements in Article 315 (2-d), but are Brokmann was
convicted of
the
crime estafa, under Art 315, par
of
crime is simply a rson, and the resulting homicide is not
required in BP 22. Other differences between the two also include 1(b).Theoffenseofestafa,ingeneral,iscommittedeitherby
absorbed; thefollowing: a) abuseofconfidence(Par1)or
b) if,
on
the other hand, the main objective is to kill a particular 1) a
drawer
of a dishonored check may be
convicted under
BP b) meansofdeceit( Par2).
person who may be in a building or edifice, when fire is 22 even if he had issued the same for a preexisting
resorted to
as
the
means to
accomplish such
goal the crime obligation, while under Article 315 (2-d), such circumstance Deceit is not an essential requisite of estafa by abuse of
committedism urdero nly;lastly, negatescriminalliability; confidence; the breach of confidence takes the place of fraud or
c) if
the objective is, likewise, to kill a particular person, and in 2) specific and different penalties are imposed in each of the deceit, which
is
a usual element in
the other
estafas. In this case, the
fact the
offender has already done so,
but
fire
is
resorted to twooffenses; charge against the petitioner and her
subsequent conviction was
for
as a means to cover up the killing, then there are two estafa
committed by abuse of
confidence. Thus, it was not necessary
3) estafa is essentially a crime against property, while
separate and distinct crimes committed — for
the
prosecution to prove deceit as
this was
not an
element of the
violation of BP 22 is principally a crime against public
homicide/murderandarson. estafathatthepetitionerwaschargedwith.
interesta sitdoesinjurytotheentirebankingsystem;
Abayon is charged with the crime of arson because his intent was 4) violations of Article 315
are
mala
in
se, while
those
of
BP
Espinov.People2013
merely to
destroy his
family's apartment through the use of fire. The 22arem
alaprohibita.
resulting deaths that occurred, therefore, should be absorbed by The
crime charged was estafa under Art 315, par 1(b). However, the
the crime of arson and only increases the imposable penalty to Peoplev.Cahilig2014reQualifiedTheft crimetheaccusedwasc onvictedo fwasestafaunderpar2(a).
reclusionperpetuatodeath.
Estafa under paragraph 2(a) is swindling by means of false
The elements of Qualified Theft, committed with grave abuse of
confidence,areasfollows: pretense. In this case, there was no use of a fictitious name, or a
Batacv.People2018r eEstafathroughfalsechecksvis-a-visBP22
false pretense of power, influence, qualifications, property, credit,
1. Takingofpersonalproperty; agency, or
business. The
Court deems it
wiser to give
the
offense its
The
CA
affirmed
the
decision of
the
RTC
finding
Batac guilty beyond
reasonable doubt
of Estafa defined under Article 315, paragraph 2(d) 2. Thatthesaidpropertybelongstoanother; true, formal name – that of estafa through abuse of
committed against Frias. Jurisprudence has consistently held that 3. Thatthesaidtakingbedonewithintenttogain; confidenceu nderparagraph1(b).
suchestafaconsistsofthefollowingelements: 4. Thatitbedonewithouttheowner’sconsent; First, personal property
in
the
form
of
the
checks
was
received
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by the offender in trust or on commission, with the duty to theft, because his employer had never
given him the possession of
deliverittoMr.Banaag. the machines involved in the present case or allowed him to take The appellant’s act of falsely pretending to possess power and
hold of
them,
and
it does
not
appear
that
the
former had any special qualifications to deploy the complainants to Hongkong, even if he did
Second,theaccusedrediscountedthecheckstohisaunt-in-law.
confidenceinhim. not have the authority or license for the purpose, undoubtedly
Third, this rediscounting resulted in the wrongful encashment of constitutes estafa under Article 315(2)(a). The elements of deceit
the
checks by
someone
who was
not the payee and therefore not and damage are clearly present;
the appellant’s false
pretenses
were
lawfullyauthorizedtodoso. Peoplev.Nery
the very cause that induced the complainants to part with their
Finally, this wrongful encashment prejudiced KN Inc., which lost The accused in
the
present case insists that there is no prohibition in money.
theproceedsofthecheck. our law to prevent the parties to a contract to novate it
so
that
any
Thus,
the
Information in
this
case may be interpreted as charging the incipient criminal liability under the first is thereby avoided. Ablazav.People2
018reRobbery
accused with both estafa under paragraph 1(b) and estafa under The novation theory may perhaps apply p rior to the filing of
the criminal information in court by the state prosecutors. But Paragraphs one to four
of
Article 294 indisputably involve the use of
paragraph2(a).
after the justice authorities have taken cognizance of the crime and violence against persons. The actual physical force inflicted results
instituted action in court, the offended party may no longer divest the in
death, rape, mutilation or the physical injuries therein enumerated.
Guzmanv.CA The simple robbery under paragraph five may cover physical injuries
prosecution of its power to exact the criminal liability, as
distinguished from the civil. The crime being an offense against the not included in paragraphs two to four. Thus,
when less serious or
As appellant converted to his own use proceeds of sales of
state,onlythelattercanrenounceit. slight physical injuries are inflicted upon the offended party on the
merchandise delivered to
him as agent, which he received in trust for
occasion of a robbery, the accused may be prosecuted for and
and under obligation to deliver and turn over
to
his
principal, he is
convicted of robbery under paragraph five. It seems obvious that
guilty of
the crime of estafa as defined by Article 315, paragraph 1, LitoCorpuzv.People2014EnBanc intimidation is
not encompassed under paragraphs one to four since
subparagraph (e). The next question is whether the present
No specific type of proof is required to show that there was no
actual physical violence is inflicted; evidently then, it can only fall
information for qualified theft alleges sufficient facts to sustain a
underparagraphfive.
convictionforestafa. demand. Demand need not even be formal; it may be verbal. The
specific word “demand” need not even be used to show that
it
has
An
essential element of the crime of estafa is that the money or goods indeed been made upon the person charged, since even a mere Peoplev.Domasig2
018reRobberywithhomicide
misappropriated or converted by the accused to the prejudice of query as to the whereabouts of the money [in this case,
another was received by him "in trust or on commission, or for property],wouldbetantamounttoademand. A conviction of robbery with homicide requires certitude that the
administration, or under any other obligation involving the duty
to robbery is the
main purpose, and the objective of the malefactor and
make delivery of, or to retain the same". No such allegation The prosecution was able to prove the existence of all the elements of the killing is
merely incidental to the robbery. The intent to rob must
appears in the above information. Consequently, we agree with the Estafa under Article 315 par(1)(b). Private complainant gave precede the taking of human life but the killing may occur before,
appellant that
he
can not be convicted thereunder of the crime of petitioner the pieces of jewelry in trust, or on commission basis with during or after the robbery. What is crucial for a conviction for the
estafa. an obligation to sell or return the same within sixty (60) days, if crime of robbery with homicide is for
the
prosecution to
firmly
unsold. There was misappropriation when petitioner failed to
remit establish the offender's intent to take personal property before
the proceeds of those pieces
of
jewelry sold, or if no sale took place, the killing, regardless of the time when the homicide is actually
Peoplev.Maglaya carriedout.
failed to
return the
same pieces of
jewelry within or
after the agreed
Under the
facts proven,
appellant is
guilty of
the crime of theft. It period despite demand from the private complainant, to the prejudice
is
true that the
machines specified in
the information were delivered ofthelatter. Peoplev.Layug2
017reRobberywithhomicide
to him by his prospective customers, but the physical possession
thus secured by him did not vest in him the juridical possession Peoplev.Fernandez2
014 It
is
immaterial that
the
death
would supervene by mere accident; or
necessaryforthecrimeofestafa. that the victim of homicide is other than the victim of robbery, or that
We point out that conviction under the Labor Code for illegal two or
more persons are killed or that aside from the homicide, rape,
Although appellant had taken advantage of his position in committing recruitment does not preclude punishment under the RPC for intentional mutilation, or usurpation of authority, is committed by
the crime aforementioned, We do not believe he had
acted
with thecrimeofestafa. reason or on the occasion of the crime. Likewise immaterial is
the
grave abuse of confidence and can be convicted of qualified fact that the victim of homicide is one of the robbers; the felony
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would still be robbery with homicide. Once a homicide is committed Clearly, all the elements of Syndicated Estafa obtain in this case, 3) Actisillegal;
by
or on the occasion of the robbery, the felony committed is robbery consideringthat:
with homicide. All
the
felonies committed by reason of or on the 4) Anyofthefollowingcircumstanceispresent:
a) more than five (5) persons are
involved
in Multitel's
grand
occasion of the robbery are
integrated into
one
and indivisible fraudulent scheme, including Baladjay
and her
co-accused - a) lastsformorethan3days;
felony of robbery with homicide. The
word "homicide" is
used in who employed deceit, false pretenses and representations to
its generic sense. Homicide, thus, includes murder, parricide, and b) simulatingpublicauthority;
the private complainants regarding a supposed lucrative
infanticide. investment opportunity with Multitel in order to solicit c) anyseriousphysicalinjuriesareinflictedorthreats
moneyfromthem; tokilldetaineearemade;
Peoplev.Mejares2
018Leonen,JreTheft b) the
said false pretenses and representations were made prior d) detaineeisaminor,female,orapublicofficer;O
R
toorsimultaneouswiththecommissionoffraud; e) Personiskidnappedforr ansom.
The SC has been consistent in holding that intent to
gain
or
animus
lucrandi is
an
internal act that
is
presumed from the unlawful taking c) relying on the false promises and misrepresentations thus
MaximumpenaltyofD
eath
by the offender of the thing subject of asportation. Thus, actual employed, private complainants invested their hard-earned
gain is irrelevant as the important consideration is the intent to moneyinMultitel;and 1) ifthepurposeistoe
xtortm
oney;
gain. d) Baladjay and her co-accused defrauded the private 2) victimiskilledordiesasaconsequence;specialcomplex
complainants,obviouslytothelatter'sprejudice. crime
The value of personal property in qualified theft must be proven
during trial. Since the penalty in cases of theft is dependent on
the 3) victimisraped;s pecialcomplexcrime
Peoplev.Aquino2
018reCivilFraud
value of stolen personal properties, it is critical to ensure that the 4) victimissubjectedtotortureordehumanizingacts.
penalty is based on
the
value
proven during trial,
and not
merely on Not all proposals to invest in certain business ventures are
tainted
the Information or uncorroborated testimonies presented by the with fraud. To be sure, an
actionable
fraud arises
when
the accused 268 Slightillegaldetention
prosecution. has knowledge that the venture proposed would not reasonably yield
the promised results, and yet, despite such knowledge,
deliberately 1) Offenderisaprivateindividual;
Chengv.People2
016reEstafabymisappropriationorconversion continueswiththemisrepresentation. 2) Kidnapsordetainsanother,deprivingthelatterofhisliberty;
Jewelries were delivered to
the accused by the
owner
for
her to
sell As case law instructs, "the gravamen of the crime of Estafa is the 3) Actisillegal;
them and
remit
the proceeds to
the latter. The accused failed to remit employment of
fraud or
deceit to
the
damage or prejudice of another. 4) WithoutanyofthecircumstancesinArt267.
the proceeds to the owner. Instead she issued her
checks to
pay for When fraud pertains to the means of committing a crime or the
the jewelries but the checks bounced upon being presented for classes of crimes under Estafa; otherwise, if fraud merely causes loss PenaltyloweredtoP
Mmin-medwheno
ffender
paymentinthebank.I stheaccusedliableforestafa? or
injury to
another, without being an element of a crime, then it may a) voluntarilyreleasescaptivewithin3days,whenhewasin
only be
classified as
civil
fraud from which an action for damages thepositiontoprolongdetention;
YES. The essence of this kind of Estafa is the appropriation or mayarise.
conversion of money or property received to the prejudice of the b) withouthavingattainedthepurposeintended;a
nd
entity to whom a return should be made. To misappropriate for one's
own use includes not only conversion to one's personal advantage,
8. CrimesAgainstLiberty c) beforetheinstitutionofcriminalproceedings.
but
also every
attempt to
dispose of
the
property of another without
267 Kidnappingandseriousillegaldetention 269 Unlawfularrest
right. In proving the element of conversion or misappropriation, a
legal presumption of
misappropriation arises when the accused
PenaltyisR
PtoDeath 1) Offenderarrestsordetainsanother;
fails to deliver the proceeds of the sale
or to
return the
items to
be
soldandfailstogiveanaccountoftheirwhereabouts. 1) Offenderisap
rivateindividual; 2) Purposeistodeliverhimtotheproperauthorities;
2) Kidnapsordetainsanother,deprivingthelatterofhis 3) Notauthorizedbylaworthereisnoreasonableground
Peoplev.Baladjay2
017reSyndicatedEstafa therefor.
liberty;
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Peoplev.Anticamara2011
NOTESREILLEGALDETENTION simulated public authority by misrepresenting themselves as
1. Theessenceofthecrimeofkidnappingis The last paragraph of Article 267 of the RPC provides that if the PDEA agents when they
forcibly took
the
victims. In
kidnapping and
victim is killed
or
dies
as a consequence of the detention, or is raped serious illegal
detention for
ransom, the purpose of extorting ransom
a. theactualdeprivationofthevictim'sliberty or subjected to torture or dehumanizing acts, the maximum penalty is a qualifying circumstance which must be alleged in the
b. coupled with
an
indubitable proof of intent on the part shall be imposed. In
People v.
Larrañaga, this provision
gives rise Information and proved by the prosecution as the crime itself by
of the malefactor to effect such restraint on the to a special complex crime. Thus, We hold that appellant Lando is words and overt acts of the accused before, during and after the
guilty beyond reasonable doubt of the special complex crime of kidnapping and detention of the victim. In the case at bench, the
offendedparty'sliberty.
kidnappingandseriousillegaldetentionwithrape. Information did
not
contain an allegation that Bandoquillo and
2. A
public
officer
must have duty under the
law
to
detain persons, his cohorts intended to extort ransom to obtain the release of
otherwise he may be liable for kidnapping and not arbitrary However, the Court does not agree with the CA and trial court's the victims. Accordingly, Bandoquillo should be convicted only of
detention. judgment finding appellant
Al liable for
Rape.
In
People v.
Suyu, We simplekidnappingandseriousillegaldetention.
ruled that once
conspiracy is established between several accused in
3. When the
victim is
female,
detention
is
under
Art 267. Voluntary
the commission of the crime of robbery, they would all
be equally Peoplev.Borja2017Leonen,J
releaseisnotmitigatinginthatarticle.
culpable for the rape
committed by
anyone of
them on the occasion
of the robbery, unless anyone of
them proves that
he
endeavored to A public officer who detains a person for the purpose of
Kidnappingofminors preventtheothersfromcommittingrape. extorting ransom cannot be said to be acting in an official
capacity. In People v. Santiano, this Court explained that public
There is no evidence to prove that appellant Al was aware of the officials may be prosecuted under Article 267 of the RPC if they act in
270 Kidnappingandfailuretoreturnaminor subsequent events that transpired after the killing of Sulpacio and the their
private
capacity. The burden is
on the accused to prove that
kidnapping of AAA. Appellant
Al
could not
have
prevented appellant heorsheactedinfurtheranceofhisorherofficialfunctions.
1) Offenderisentrustedwiththecustodyofaminor; Lando from raping AAA, because at the time of rape, he was no longer
2) Deliberatelyfailstorestoresaidminortohisparentsor associatedwithappellantLando. In this case, Ronalyn was clearly deprived of her liberty. She was
guardians. forcibly taken inside
a vehicle
by
accused-appellant and
his cohorts
Peoplev.Dionaldo2014 andwasdrivenaroundQuezonCityforatleastfive(5)hours.
271 Inducingaminortoabandonhishome
The Court is, however, constrained to modify the ruling of
the
RTC Peoplev.Concepcion2
018Leonen,J
1) Theminorislivinginthehomeofhisparentsorguardianor and the CA, as the crime the accused-appellants have committed does
rekidnappingabsorbedinrape
thepersonentrustedwithiscustody; not merely constitute Kidnapping and Serious Illegal
Detention, but
that of the special complex crime of Kidnapping for Ransom with Accused abducted the victim and then raped her. Thereafter, he
2) Inducessaidminortoabandonsuchhome. Homicide. This is
in
view of the victim’s (i.e., Edwin's) death, which prevented her
from leaving by placing electric wire around the room
Peoplev.BenedictoRamos was (a) specifically charged in the Information, and (b) clearly where she was in
to prevent anyone who might come to
release her.
establishedduringthetrialofthiscase. The abduction of
the victim by the
accused is
absorbed in the crime
For kidnapping to exist, it is not necessary that the offended party ofrapesinceitwasresortedtoinordertocommitthelattercrime.
be kept within an
enclosure to
restrict
her freedom of locomotion. Further taking into account the fact that the kidnapping was
It is enough that, as in the instant case, she was in any manner committed for the purpose
of
extorting
ransom, accused-appellants’ The continued detention of AAA after the rape cannot be deemed
deprivedofherliberty,unabletomove-andgetout-asshepleased. conviction must be modified from Kidnapping and Serious Illegal absorbed in it. The detention was illegal and not attended by the
Detention to
the
special
complex crime
of Kidnapping for Ransom circumstances that would render it serious illegal detention. Thus,
The rule now is: Where the person kidnapped is killed in the withHomicide,whichcarriesthepenaltyofd eath. this Court finds accused-appellant guilty of the crime of slight illegal
course of the detention, regardless of whether the killing was detention.
purposely sought or
was merely an afterthought, the kidnapping and Peoplev.Bandoquillo2016
murder or homicide can no longer
be complexed under Art. 48,
nor
9. CrimesAgaintPublicInterest
be treated as separate crimes, but shall be punished as a special
Bandoquillo is a p
rivate individual who, along with his cohorts,
complexcrimeunderthelastparagraphofArt.267,asamended.
kidnapped Hung Yee Chua (Yee) and 5 minors. The abductors 161 Counterfeitingorforging
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Forgingthe: b) Knowledge. one-pesobillwhichaccusedgaveaspayment.(P
Pv
1) GreatSealoftheGovernmentofthePH; Galano).
FalseTreasuryorBanknotes 2) Erasing,S bstituting,Co unterfeiting,orA
u l teringbyany
2) signatureofthePresident;
meansthefigures,letters,words,orsigncontainedtherein.
3) stampofthePresident. Forgingtreasuryorbanknotesorotherdocuments
166 payabletobearer,importing,andutteringofsuchfalse e.g.AwroteB'snameonthebackofsaidtreasury
162 Usingforgedsignatureorcounterfeitsealorstamp orforgednotesanddocuments warrantasifBhadindorsedit,andthenpresenteditfor
payment.(U Sv.Solito)
1) GreatSealoftheRepublicwascounterfeitedorthesignature 1) Forgingo
rfalsificationoftreasuryorbanknotesorother
orstampoftheChiefExecutivewasforgedbyanotherperson; documentspayabletobearer;
Falsification
2) Offenderknewofthecounterfeitingorforgery; 2) Importation;
170 Falsificationoflegislativedocuments
3) Heusedthecounterfeitsealorforgedsignatureorstamp. 3) Utteringi nconnivancewiththeforgersorimporters.
1) Therebeabill,resolution,orordinanceofanystageandof
CounterfeitingorMutilatingcoins Counterfeiting,importingandutteringinstrumentsnot anylegislativebody;
167
payabletobearer
163 Making,importingandutteringfalsecoins. 2) Offendera
lters;
1) Therebeaninstrumentpayabletoorderorotherdocument 3) Hehasnoproperauthority;
1) Therebef alseorcounterfeitedc oins; notpayabletobearer;
4) Alterationh
aschangedthemeaning.
2) Offendereitherm
ade,imported,orutteredsuchcoins; 2) Offendereitherf orged,importedorutteredsuchinstrument;
3) Incaseofuttering,heconnivedwiththecounterfeitersor Falsificationbypublicofficer,employeeornotaryor
3) Incaseofuttering,hec onnivedwiththeforgerorimporter. 171
importers. ecclesiasticalminister
Illegalpossessionanduseofforgedtreasuryorbank Anypublicofficer,employee,ornotary,orecclesiasticalminister,
168
Mutilationofcoins,importationandutteringof notesandotherinstrumentsofcredit
164 whotakesadvantageofhisofficialposition.
mutilatedcoins
1) Anytreasuryorbanknoteorcertificateorotherobligation Actspunishedwithcorrespondingelements
1) Mutilatingc oinswithintenttodamageordefraud. andsecuritypayabletobearer,oranyinstrumentp ayable 1) Counterfeitingorimitatinganyh
andwriting,signatureor
2) Importingo rutterings uchmutilatedcoinswith toorderorotherdocumentofcreditn otpayabletobearer rubric.
connivancewiththemutilatororimporter. isforgedorfalsifiedbya
notherperson.
Twoways:
2) Knowledge;
165 Sellingoffalseormutilatedcoins,withoutconnivance 1) Counterfeiting,requisitesare:
3) Performsa
nyoftheseacts:
a) intentorattempttoimitate,
Actspunishedwithcorrespondingelements a) Usinganysuchforgedorfalsifiedinstruments;or
b) genuineandforgedb
earsomeresemblance;
1) Possessionofcoin,counterfeitedormutilatedbyanother b) Possessingwithintenttouse. and
a) Possession
169 Howforgeryiscommitted 2) Feigningwhichissimulatingsomethingthatdoes
b) Withintenttoutter notexist.
c) Knowledge. 1) Givingtoatreasuryorbanknoteoranyinstrumentpayable Makingitappearthatapersonwhodoesnotknow
tobearerortoordermentionedthereintheappearanceofa howtowritehassignedthedocumentisfeigning.
2) Actuallyuttering
trueandgenuinedocument.
a) Actuallyuttering 2) Causingittoappearthatpersonshaveparticipatedinany
e.g.Writingtheword"Victory"ininkatthebackofthe
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actorproceeding. Makingacopyofadeedofsalewhichwasnever service
a) Causingittoappearthatapersonparticipatedinan executed;
Punishableactcommittedbyoffender
act;and 8) Intercalatinganyinstrumentornoterelativetotheissuance
thereofinaprotocol,registryorofficialbook. 1) Physicianf alsifiesm
edicalcertificate,
b) Suchpersondidnotinfactparticipate.
★ Includinginacopyastatementcontraryto,or 2) PublicOfficerfalsifiesc ertificateofmeritorservice,
3) Attributingt opersonswhohaveparticipatedinanactor
differentfromthatofthegenuineoriginal-Civil goodconduct,etc,
proceedingstatementsotherthanthoseinfactmadebythem.
registrarstatingthatapersonislegitimatecontrary 3) Privatepersonfalsifiese
ither.
a) Apersonparticipatedinanact;
tothatstatedintheoriginal.
b) Hemadestatementsinthatact;and 175 Usingfalsecertificates
c) Statementsotherthanthosemadebysuchperson Falsificationbyprivateindividualsanduseoffalsified
172 1) Art174hasbeencommitted;
documents
wereattributedtohim.
2) Offenderknewofthefalsity;
4) Makinguntruthfulstatementsinanarrationoffacts. Actspunishedwithcorrespondingelements
3) Heusedthesame.
a) Inadocument,therebeanarrationoffacts; 1) Falsificationofp
ublic,o
fficialo
rc ommercialdocuments.
b) Offenderhaslegalobligationtodisclosethetruth; a) Offenderisprivateindividualorpublicofficerwho 177 Usurpation
c) Factsareabsolutelyfalse; didnottakeadvantageofhisofficialposition;
1) Usurpationofauthority
d) Wrongfulintentofinjuringathirdperson. b) CommittedanyactsinArt171;
knowinglyandfalselyrepresentingoneselftobeanofficer,
c) Falsificationcommittedinpublic,official,or
★ Personmakingthenarrationoffactsmusthave agent,repofthePHoranyforeigngov't
commercialdocuments.
knowledgeofitsfalsity.
2) Usurpationofofficialfunctions
5) Alteringt ruedates 2) Falsificationofp
rivatedocuments.
performinganyactpertainingtoanypersoninauthority,
a) OffendercommittedactinArt171exceptpar7;
★ Datemustbeessential. underpretenseofofficialposition,andwithoutbeing
★ Mustaffecteithertheveracityortheeffectsofthe b) Committedinanyprivatedocument; lawfullyentitledto.
document. c) Causedorwithintenttocausedamagetoathird
★ Alteringdatesinofficialreceiptstoprevent party. Falsetestimony
discoveryofmalversationisfalsification. 3) Useoffalsifieddocuments.
6) Makinganya
lterationo
rintercalationi nagenuine inajudicialproceeding 180 Falsetestimonyagainstadefendant
documentwhichchangesitsmeaning. a) Knowledge; 1) Therebeac riminalproceeding;
a) Therebeanalterationorintercalation; b) FalsedocumentembracedinArt171or172pars 2) Offendertestifiesfalselyunderoatha
gainstd
efendant;
b) Madeonagenuinedocument; 1-2;
3) Knowsoffalsity;
c) Meaningofdocumenthaschanged;and c) Introducedinevidenceinanyjudicialproceeding.
4) Defendantiseitheracquittedorconvictedbyfinaljudgment.
d) Changemadethedocumentspeaksomethingfalse. inanyothertransaction
7) Issuinginauthenticatedformadocumentpurportingtobea d) Usedsuchdocument; 181 Falsetestimonyfavorabletothedefendant
copyofaninexistentdocument. e) Causedorwithintenttocausedamage. 1) Therebeac riminalproceeding;
★ Purportingtobeacopyofaninexistentdocument-
174 Falsemedicalcertificates,falsecertificatesofmeritor 2) Offendertestifiesfalselyunderoathw
ithintenttofavor
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defendant; 2. Subornation of perjury is committed by procuring another
to CompetitionAct
3) Knowsoffalsity; swearfalsely.
Layugv.Sandiganbayan
3. Offer of
testimonial evidence, begins
the
moment
a witness
is
182 Falsetestimonyincivilcases
calledtothewitnessstandandinterrogatedbycounsel. There is
authority to
the
effect
that a fourth requisite, i.e., that the act
4. If
the
false
witness
desists,
he
is
not
liable. The offeror however of
falsification was committed to the damage of a third party or with
1) Civilc ase;
intent to cause such damage, may be dispensed with as regards
2) Testimonyisrelevant,and isliablefora ttemptedo fferingfalsetestimonyinevidence.
falsification of public or official documents. In the prosecution of
3) False; cases involving falsification of daily time
records, it
is
imperative
185 Machinationsinpublicauctions
that
there be proof of damage to the government. Such damage may
4) Knowsoffalsity; taketheformofsalarypaidtotheaccusedforservicesnotrendered.
Commonelements
5) Maliciouswithintenttoaffecttheissuespresented.
1) Therebepublicauction; Tepocov.People2
017reFalsificationofpublicdocuments
183 Falsetestimonyinothercasesandperjury 2) Intenttocausereductionofprice
Wrongful intent on the part of the accused to injure a third
Actspunished Actspunishedwithadditionalelements person is
NOT
an
essential element of the
crime of falsification
1) Solicitinganygiftorpromise ofpublicdocument.
1) Falselytestifyingu
nderoath;and
2) Makingafalseaffidavit. a) Solicitedgiftorpromise;
Malabananv.Sandiganbayan2
017
Elements b) Torefrainbiddersfromtakingpart.
Offenders are considered to have taken advantage of their official
1) Madestatementunderoath,orexecutedanaffidavitupona 2) Attemptingbidderstostayaway
positioninfalsifyingadocumentif
materialmatter; a) Attemptedtocausebidderstostayaway;
1) they had
the
duty
to
make or prepare or otherwise intervene
2) Suchwasmadebeforeac ompetentofficer,authorizedto b) Bythreats,gifts,promisesorotherartifice.
inthepreparationofthedocument;or
receiveandadministeroath;
2) theyhadofficialcustodyofthefalsifieddocument
3) Willfulanddeliberateassertionoffalsehood; Commonbidmanipulationpractices:
In cases of
falsification,
we
have
interpreted
that
the criminal
intent
4) Statementoraffidavitr equiredbylaw. 1. Bid cover happens
when
a competitor
submits
a bid
that
is topervertthetruthislackingincasesshowingthat
either
theaccuseddidnotbenefitfromthefalsification;and
184 Offeringfalsetestimonyinevidence
a) higherthanthatofthedesignatedwinner, no damage was caused either to the government or to a third
1) Offeredinevidenceafalsewitnessortestimony; b) toohightobeaccepted,or person.
2) Knowsoffalsity; c) contains special terms that are known to be unacceptable
bythepurchaser. 10. RA9262
3) Madeinajudicialorofficialproceeding.
2. Bid suppression happens
when
a company does not submit WhocanbevictimsofVAWC
NOTESREFALSETESTIMONY abidforfinalconsideration.
1. womanwhois
1. Material matter is the main fact which is the subject of the 3. Bidrotation,t akesturnswinningbids.
a. offender’swife,
inquiry or any circumstance which tends to prove that fact, or any 4. Market allocation, agree not to compete for certain
fact
or
circumstance which tends to corroborate or strengthen the b. formerwife,ora
customersorincertainareas.
testimony, or
which
legitimately affects
the
credit of any witness 2. womanwithwhomtheoffender
whotestifies. 186 HasbeenrepealedbyR
A10667orthePhilippine
a. hasorhadasexualordatingrelationship,or
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b. hasacommonchildwith,oragainst 4. "Economic abuse" refers to acts that make or attempt to fear of an imminent harm from her batterer and an honest
3. The woman’s child whether legitimate or illegitimate, within or make a woman financially dependent which includes, but is beliefthatsheneededtouseforcetosaveherlife.
withoutthefamilyabode. notlimitedtothefollowing: 3. At the time of the killing, the batterer must have posed probable
a. withdrawal of financial support or preventing the victim — not necessarily immediate and actual
— grave harm
to
the
WhocancommitVAWC woman, b
ased
o
n
t
he
h
istory
o
f
v
iolence. (
P
P
v
.
G enosa , GR
from engaging in any legitimate profession, occupation,
business or activity, except in cases wherein the other 135981,Jan.15,2004)
1. VAWC may likewise be committed “against a woman with
whomthepersonhasorhadasexualordatingrelationship.” spouse/partner objects on valid, serious and moral
Extraterritoriality
groundsasdefinedinArticle73oftheFamilyCode;
2. The
use
of
the
gender-neutral
word
“person”
who
has
or
had
a
sexual or dating relationship with the woman encompasses b. deprivation or threat of
deprivation of
financial resources AAAv.BBB2
018
evenlesbianrelationships. and the right to the use and enjoyment of the conjugal, YES. In Dinamling v. People, this Court already had occasion to
3. It does not preclude the application of the principle of communityorpropertyownedincommon; enumerate the elements of psychological violence under Section
conspiracy under the RPC. Thus, in the case of Go-Tan v. c. destroyinghouseholdproperty; 5(i)ofR.A.No.9262:
Spouses Tan, the
parents-in-law of
the victim, were held to be 1) Theoffendedpartyisawomanand/orherchildorchildren;
d. controlling
the victims' own money or properties or solely
properrespondentsinthecase.
controllingtheconjugalmoneyorproperties. 2) The woman is
either
the
wife
or
former wife of the offender,
Kindsofabusesagainstwomen or is a woman with
whom the
offender
has
or
had a sexual
BatteredWomanSyndrome or dating relationship, or is a woman with whom such
1. "Physical Violence" refers to acts that include bodily or offenderhasacommonchild;
"BatteredWomanSyndrome"hasthreephases
physicalharm; 3) The offender causes on the woman and/or
child
mental
or
1. The tension-building phase — minor batterings, verbal or
2. "Sexual
violence" refers to an act which is sexual in nature, emotionalanguish;and
slight physical abuse occurs. The victim either pacifies the
committed against
a woman
or
her child. It includes, but is not battererorstaysoutofhisway; 4) The anguish is caused through acts of public ridicule or
limitedto: humiliation, repeated verbal
and emotional abuse, denial
of
2. Acute battering phase — characterized by brutality,
a. rape,sexualharassment,actsoflasciviousnessxxx; financial support
or
custody of
minor
children or
access
to
destructiveness or death. The victim realizes that she cannot
thechildrenorsimilarsuchactsoromissions.
b. acts
causing or
attempting to
cause the victim to engage in reason with him and resistance would only exacerbate her
any sexual activity by force, threat of force, physical or condition; What
R.A.
No.
9262 criminalizes is not the marital infidelity per se
otherharmorthreatofphysicalorotherharmorcoercion; 3. Tranquil
period
— batterer
may
show
a tender
and nurturing but the
psychological violence causing mental or emotional suffering
behavior. on the wife. Marital infidelity as cited in the law
is
only one
of
c. Prostitutingthewomanorchild.
RequisitesforBWSasaDefense the various acts by which psychological violence may be
3. "Psychological violence" refers to acts or omissions committed. Thus, the
mental
or
emotional suffering of the victim is
causing or
likely to
cause mental
or
emotional suffering of the
1. Cycle of violence — “each of the phases of the cycle of anessentialanddistinctelementinthecommissionoftheoffense.
victim such as but not
limited
to
intimidation, harassment, violence must be proven to have characterized at least two
stalking, damage to property, public ridicule or batteringepisodes” What
may
be
gleaned
from
Section
7 of
R.A.
No.
9262 is that the law
humiliation, repeated verbal
abuse and
marital infidelity. 2. The final acute episode preceding the killing of the batterer contemplates that
acts
of
violence against women
and
their children
xxxx must have produced in the battered person’s mind an actual may manifest as transitory or continuing crimes. Even if the
alleged extra marital affair causing the offended wife mental and
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The penalty of reclusion temporal in its medium period to
emotional
anguish
is committed abroad,
the
same
does
not
place a to
this
party."
Thus,
in
cases of support, it must be first shown that
the accused's denial thereof — which is, by itself, already a form of reclusionperpetuashallbeimposeduponthefollowing:
prosecution under R.A. No. 9262 absolutely beyond the reach of
economic abuse — further
caused mental or
emotional anguish who engage in or promote, facilitate or induce child
a) Those
Philippinecourts.
tothewoman-victimand/ortotheircommonchild.
prostitution which include, but are not limited to, the
Dabalosv.RTC2013 11. RA7610 following:
In
Ang v. Court of Appeals, the Court enumerated the elements of the 1) Actingasaprocurerofachildprostitute;
crimeofviolenceagainstwomenthroughharassment,towit: DefinitionofChild
2) Inducing a person to be a client of a child prostitute by
1. The offender
has
or
had
a sexual
or dating relationship with "Children" refers to person below eighteen (18) years of age
or means of written or oral advertisements or
other
similar
theoffendedwoman; those
over
but
are
unable to fully take care of themselves or protect means;
2. The offender,
by
himself
or
through
another, commits an act themselves from abuse, neglect, cruelty, exploitation or
3) Taking advantage
of
influence
or
relationship
to
procure
a
orseriesofactsofharassmentagainstthewoman;and discrimination because of a physical or mental disability or
childasprostitute;
3. The harassment alarms or causes substantial
emotional
or condition.
psychologicaldistresstoher. 4) Threatening or using violence towards a child to engage
Actspunishedaschildabuse himasaprostitute;or
Notably, while it
is
required
that
the
offender has or
had a sexual or
dating relationship with the offended woman, for RA 9262 to be "Child
abuse" refers to the maltreatment, whether habitual or not, of 5) Giving monetary consideration goods or other pecuniary
applicable, it is not indispensable that the act of violence be
a thechildwhichincludesanyofthefollowing: benefit to a child with intent to engage such child in
consequence of such relationship. It is immaterial whether the prostitution.
relationship had ceased for as long as there is sufficient evidence 1) Psychological and physical
abuse,
neglect,
cruelty,
sexual
b) Those who commit the act of sexual intercourse of
showing the past or present existence of such relationship between abuseandemotionalmaltreatment;
theoffenderandthevictimwhenthephysicalharmwascommitted. lascivious conduct with a child exploited in prostitution or
2) Any act by deeds or words which debases, degrades or
subjecttoothersexualabuse; and
demeans the
intrinsic
worth
and dignity of a child as a human
Arazav.People2020 c) Those
who
derive
profit
or
advantage therefrom, whether as
being;
The law does not require proof that the victim became manager or
owner
of
the
establishment where the prostitution
3) Unreasonable deprivation of his basic needs for survival,
psychologically ill due to the psychological violence done by her takes place, or of the sauna, disco, bar, resort, place of
abuser. Rather, the law only requires emotional anguish and suchasfoodandshelter;or
entertainment or establishment serving as a cover or which
mental suffering to be proven. To establish emotional anguish or 4) Failure to immediately give medical treatment to an engages in
prostitution in
addition
to the activity for which the
mental suffering, jurisprudence only requires that the testimony of injured
child
resulting in serious impairment of his growth and licensehasbeenissuedtosaidestablishment.
the
victim be
presented in
court, as
such experiences are personal to
thisparty. developmentorinhispermanentincapacityordeath. AttemptToCommitChildProstitution
ChildProstitutionandOtherSexualAbuse 1. Under
Section
5(a)
when
any
person
who,
not being a relative
Melgarv.People2018reDenialoffinancialsupport
of
a child,
is
found alone with the said child inside the room or
Children, whether male or female, who for
money, profit,
or any cubicle of a house, an inn, hotel, motel, pension house,
Psychological violence is the means employed by the perpetrator,
while mental or emotional anguish is the effect caused to or the other consideration or
due to
the coercion or
influence of
any apartelle or other similar establishments, vessel, vehicle or
damage sustained by the offended party. To establish psychological adult, syndicate or group, indulge in sexual intercourse or any other
hidden or
secluded area under circumstances which
violence as an
element of the crime, it
is
necessary to show proof of lascivious conduct, are deemed to be children exploited in would lead a reasonable person to believe that the child is
commission of
any
of
the acts enumerated in Section 5 (i) or similar prostitutionandothersexualabuse.
acts.
And to
establish mental or emotional anguish, it is necessary to abouttobeexploitedinprostitutionandothersexualabuse.
present the testimony of
the victim as such experiences are personal
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2. Under Section 5(b) when any person is receiving services the
principals
of
the
attempt
to
commit
child
trafficking under this
abuse temporali nits
from a child in a sauna parlor or
bath,
massage
clinic,
health Act. mediumperiod
clubandothersimilarestablishments. RapeunderRPCfromsexualchildabuse
3. A
penalty
lower
by
two
(2)
degrees
than
that
prescribed for Rapeunder
1. Under 12 prosecute as Statutory
Rape
under
RPC; penalty Sexual
Article266-A(1) SexualAbuse
the consummated felony under Section 5 hereof shall be Intercourse
isRP oftheRPC: underSection5(b)
imposed upon the principals of the attempt to commit the committed
reclusion ofR.A.No.7610:
prosecute as Acts of
Lasciviousness
under
RPC, but
penalty against
crimeofchildprostitution. perpetua,except reclusion
providedunderSec.5(b),RA7610whichisRTmed. children NA
whenthevictimis temporalinits
exploitedin
ChildTrafficking 2. Over 12 but Under 18 either Rape under RPC (if any of 4 prostitutionor
below7yearsold mediumperiodto
inwhichcase reclusion
circumstancesoccur) othersexual
Any person who shall engage in
trading and
dealing with children deathpenalty perpetua
abuse
including, but
not limited
to,
the act of buying and selling of a child or RA 7610 if victim is “subjected to other sexual
abuse”
or shallbeimposed
for
money, or
for
any other
consideration, or barter, shall suffer the under persuasion, inducement, enticement, coercion or
influence(PIECI)wherepenaltyisRTmediumtoRP. Rapeunder
penaltyofreclusiontemporalt oreclusionperpetua. Article266-A(1)
3. Over18RapeunderRPC; Rape
The penalty shall be imposed in its maximum period when the inrelationtoArt.
Rapeunder under
victimisundertwelve(12)yearso
fage. ActsofLasciviousnessunderRPC(prisioncorreccional). 266-BoftheRPC:
Article266-A(1) Article
Rapeby reclusion
AttempttoCommitChildTrafficking inrelationtoArt. 266-A(1)
DesignationoftheCrime&ImposablePenalty carnal perpetua,except
266-BoftheRPC: ofthe
There is an attempt
to
commit
child
trafficking
under
Section
7 of fromT
ulaganv.People knowledge whenthevictimis
reclusion RPC:
below7yearsold
thisAct: AgeofVictim 12yearsoldor perpetua reclusion
18years inwhichcase
Under12years below18,or18 perpetua
a) When a child travels alone to a foreign
country
without
valid oldand deathpenalty
Crime oldordemented underspecial shallbeimposed
reason therefor and without
clearance issued by
the
DSWD or above
Committed circumstances
written
permit
or justification from
the
child's
parents or legal SexualAssault Lascivious Sexual
guardian; Actsof Actsof underArticle Conductunder Assault
Lasciviousness Lasciviousness 266-A(2)ofthe Section5(b)of under
b) When a person, agency, establishment or child-caring
committed underArticle336 RPCinrelationto R.A.No.7610: Article
institution recruits women
or
couples
to
bear
children
for
the Rapeby
against oftheRPCin Section5(b)of reclusion 266-A(2)
purposeofchildtrafficking;or Lascivious NA SexualAssault
children relationtoSection R.A.No.7610: temporalinits ofthe
c) When a doctor, hospital or clinic official or
employee,
nurse, exploitedin 5(b)ofR.A.No. conductunder reclusion mediumperiodto RPC:
prostitutionor 7610:reclusion Section5(b)of temporalinits reclusion prision
midwife, local civil registrar or any other person simulates othersexual temporalinits R.A.No.7610: mediumperiod perpetua mayor
birthforthepurposeofchildtrafficking;or abuse mediumperiod reclusion
d) When a person engages in the act of finding children among temporalinits Tulaganv.People2
019EnBanc
SexualAssault SexualAssault mediumperiodto
low-income families, hospitals, clinics, nurseries, day-care committed underArticle reclusion If
the
acts constituting sexual assault are
committed against a victim
centers, or other child-during institutions who can
be
offered against 266-A(2)ofthe perpetua under 12 years of age or is demented, the nomenclature of the
forthepurposeofchildtrafficking. children RPCinrelationto NA offense should now be "Sexual Assault” under paragraph 2,
Article
exploitedin Section5(b)of 266-A of the RPC in relation to Section 5(b) of R.A. No. 7610. The
A penalty lower two (2) degrees than that prescribed for the
prostitutionor R.A.No.7610: imposable penalty is still reclusion temporal in its
medium period,
consummated
felony
under
Section 7 hereof shall be imposed upon othersexual reclusion andnotprisionmayor.
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a) formoney,profitoranyotherconsideration;or prejudicialtothechild'sdevelopment.
Whereas if
the
victim is
12
years
old
and under
18
years
old,
or
18 years old and above under special circumstances, the b) under the coercion or
any
influence
of
any
adult,
syndicate An accused can be prosecuted and be convicted under Section 10(a) if
nomenclature of the crime should be "Lascivious Conduct under orgroup. he commits any of the four acts therein. The prosecution need
not
Section 5(b) of R.A. No. 7610" with the imposable penalty of prove that
the acts of child abuse, child cruelty and child exploitation
reclusion
temporal in
its
medium period to reclusion perpetua, but it In the case of Olivarez v. CA, the Court explained that the phrase have resulted in
the
prejudice of
the
child
because an
act
prejudicial
shouldnotmakeanyreferencetotheprovisionsoftheRPC. "other sexual abuse," covers not only a child who is abused for profit, tothedevelopmentofthechildisdifferentfromtheformeracts.
but also one who engages in lascivious conduct through the
It
is
only
when the
victim of
the
sexual
assault
is
18
years old and coercion or
intimidation by
an adult. In the latter case, there must
be some form of compulsion equivalent to intimidation which Bongalonv.People2013
above, and not
demented, that
the crime should be called as "Sexual
Assault under paragraph 2, Article 266-A of the RPC" with the subduesthefreeexerciseoftheoffendedparty'swill. Not every instance of the laying of
hands on a child
constitutes the
imposablepenaltyofp risionmayor. crime of
child abuse under Section 10
(a)
of
Republic Act
No.
7610.
Calaoaganv.People2
019 Only when the
laying of
hands is
shown beyond reasonable doubt to
Peoplev.Tubillo2
017 be intended by the accused to debase, degrade or demean the
Sec. 10(a) of R.A. No. 7610 penalizes an act when it constitutes as intrinsic worth and
dignity of the child as a human being should it be
Under Section 5 (b),
Article III
of
RA 7610 in
relation to
RA 8353,
if child abuse. In relation thereto, Sec. 3(b) highlights that in child punishedaschildabuse.Otherwise,itispunishedundertheRPC.
the victim of sexual abuse is below 12 years of age, the offender abuse, the act by deeds or words must debase, degrade, or
should not be prosecuted for
sexual abuse but statutory
for rape demean the intrinsic worth and dignity of a child as
a human
being. Peoplev.Baraga2014
under Article 266-A(1)(d) of the RPC and penalized with reclusion
perpetua. Sexual abuse under Section 5(b), Article
III
of
R.A.
No.
7610
has
When the infliction
of physical injuries against a minor is done at the
threeelements:
On the other hand, if the victim is
12
years or
older, the
offender spur of
the moment, it
is
imperative
for the prosecution to prove
should be charged with either sexual abuse under Section 5 (b) of RA a specific intent to debase, degrade, or demean the intrinsic 1) the accused commits an act of sexual intercourse or
7610 or rape under Article 266-A (except par 1 [d]) of the RPC. worth of the child; otherwise, the accused cannot be convicted lasciviousconduct;
However, the offender cannot be
accused of both crimes for the same underSec.10(a)ofR.A.No.7610.
2) the said act is performed with a child exploited in
act because his right against double jeopardy will be prejudiced. A prostitutionorsubjectedtoothersexualabuse;and
person cannot be subjected twice to criminal liability for a single Sanchezv.People
criminal act. Likewise, rape cannot be complexed with a violation 3) thechildisbelow18yearsold.
of Section 5 (b) of
RA 7610. Under Section
48
of
the
RPC,
a felony Here, the applicable laws are Article 59 of
P.D.
No.
603 and Section
under the RPC such as rape cannot be complexed with an offense 10(a) of R.A. No. 7610. The
use of
"or" in
Section 10(a) of
RA 7610 The penalty for sexual abuse performed on a child under 18 years old
penalizedbyaspeciallaw. before the phrase "be
responsible for other conditions prejudicial to but over 12 years old under Section 5(b) of R.A. No. 7610 is reclusion
the child's development" supposes that there are four punishable temporal in its medium period to reclusion perpetua. The Court
acts therein. First, the act of child abuse; second, child cruelty; likewise considers the alternative circumstance of relationship
Peoplev.Basa,Jr2
019 against Baraga as an aggravating circumstance. Since there is
an
third, child exploitation; and fourth, being responsible for
conditions prejudicial to the child's development. The fourth aggravating circumstance and no mitigating circumstance, the penalty
Before an accused can be held criminally liable for lascivious
conduct under Section
5(b) R.A.
No. 7610, the Court held in Quimvel penalized act cannot be
interpreted as
a qualifying condition for
the shall be applied in its maximum period, i.e., reclusion perpetua.
threeotheracts. Besides, Section 31 of R.A. No. 7610 expressly provides that the
v.
People
that
the
requisites for
Acts
of
Lasciviousness, as penalized
under Article 336 of the RPC, must be met in addition to the penalty shall be imposed in its maximum period when the
requisitesforsexualabuseunderR.A.No.7610. perpetratoris,interalia,t heparentofthevictim.
Aranetav.People
A
child
is
deemed
exploited in
prostitution or subjected to other The Rules and Regulations of the questioned statute distinctly and Peoplev.CarlosAlhambra2014
sexual abuse when the child indulges in sexual intercourse or separately defined child
abuse,
cruelty
and
exploitation just
to show
lasciviousconduct that these three
acts
are
different from
one
another and from the
act The prosecution was able to
establish Alhambra’s criminal liability
under Section
5(b)
of
R.A.
No. 7610.
First, AAA
testified
that,
whilst
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public spaces such as alleys, roads, sidewalks and iv. If the perpetrator is a member of the uniformed
clad only in towel after having taken a bath, her father forcibly
removed her towel covering her body, kissed her on the neck, parks. services, such as
the PNP and the AFP, and the act was
removed her
undergarments, and
kissed her on the other parts of her c. They are those performed in buildings, schools, churches, perpetratedwhiletheperpetratorwasinuniform;and
body. Second, Alhambra used his moral ascendancy and influence restaurants, malls, public washrooms, bars, internet shops, v. If the act takes place in the premises of a
over his
daughter AAA to
consummate his lascivious design. Third,
public markets, transportation terminals or public utility government agency offering
frontline services to the
AAAwasonly17yearsoldwhenthesaidincidenthappened.
vehicles. public and the perpetrator is a government
Alhambra’s assertion that he is not liable for sexual abuse under d. Gender-based online sexual harassment refers to an employee.
Section 5(b) since AAA is not a child engaged in prostitution or g. The crime of gender-based sexual harassment
in
the
online conduct targeted at a particular person that causes or
subjected to other sexual abuse is plainly without merit. The law
covers not
only a situation in
which a child is
abused for profit likely to cause another mental, emotional or psychological workplaceincludesthefollowing;
but also one in which a child, through coercion or distress, and fear of personal safety, sexual harassment acts i. An act or series of acts involving any unwelcome
intimidation, engages in any lascivious conduct. A child is including
sexual advances, requests or demand for sexual
deemed subjected to
“other
sexual abuse” when he or she indulges in i. unwantedsexualremarksandcomments,threats, favors or any act of sexual nature, whether done
lascivious conduct under the coercion or influence of
any
adult.
As
ii. uploading
or
sharing
of
one's
photos without consent, verbally, physically or through the use of
technology
established by the prosecution, Alhambra was only able to
consummate his lascivious design towards AAA through coercion videoandaudiorecordings, such as text messaging or electronic mail or
through
andwiththeuseofhisinfluenceoverthelatterasherfather. any other forms of information and communication
iii. cyberstalkingand
systems, that has
or could have a detrimental effect on
iv. onlineidentitytheft.
12. SafeSpacesAct the conditions of an individual's employment or
e. Stalking refers to conduct directed at a person involving the education,jobperformanceoropportunities;
a. The
crimes gender-based
of streets
and
public spaces
repeated visual or physical proximity, non-consensual ii. A
conduct of sexual nature and other conduct-based on
sexual harassment are committed through any unwanted
communication, or a combination thereof that cause or will sex affecting the dignity of a person, which is
and uninvited sexual actions or remarks against any person
likely
cause
a person to
fear
for
one's
own safety
or
the safety unwelcome, unreasonable, and offensive to the
regardless of the motive for committing such action or
ofothers,ortosufferemotionaldistress. recipient, whether done verbally, physically or
remarks.
f. Qualified Gender-Based Streets, Public Spaces and Online through the use
of
technology such as
text
messaging
b. Itincludes
Sexual Harassment. — The
penalty
next higher in degree will or electronic mail or through any other forms of
i. catcalling, wolf-whistling, unwanted invitations, beappliedinthefollowingcases: informationandcommunicationsystems;
misogynistic, transphobic, homophobic and sexist iii. A conduct that is unwelcome and pervasive and
i. If the act takes place in a common carrier or PUV,
slurs,
including, but
not limited to, jeepneys, taxis, tricycles, creates an intimidating, hostile or humiliating
ii. persistent uninvited comments or gestures on a or app-based transport network vehicle services, environmentfortherecipient.
person'sappearance, where the perpetrator is the driver of the vehicle ⭐The crime of gender-based sexual harassment may
iii. relentlessrequestsforpersonaldetails, andtheoffendedpartyisapassenger; also be committed between peers and those
iv. statementofsexualcommentsandsuggestions, ii. If
the
offended
party is a minor, a senior citizen, or a committed to a superior officer
by a subordinate,
PWD,orabreastfeedingmothern ursingherchild; or to a teacher by a student, or
to
a trainer
by
a
v. publicmasturbationorflashingofprivateparts,
iii. If the offended party is diagnosed with a mental trainee.
vi. groping, or any
advances, whether verbal or
physical,
problemtendingtoimpairconsent; h. Exemptions. — Acts that are legitimate expressions of
that is unwanted and has threatened one's sense of
indigenous culture and
tradition, as well as breastfeeding
personal space and physical safety
and
committed in
inpublicshallnotbepenalized.(Sec31)
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13. DataPrivacyAct any personal information or personal sensitive information B.NatureandEffectsofObligations
obtainedbyhim.
Punishableactsareasfollows: C.KindsofObligations
h. Unauthorized disclosure — committed by any personal
a. Unauthorized processing of personal information or D.ExtinguishmentofObligations
information controller or personal information processor or
sensitive personal information — processing personal
any of its officials, employees or agents, who discloses to a Contracts
information or sensitive personal information, without the
third-party personal information or sensitive personal
consent of
the
data
subject,
or
without
being
authorized
under A.GeneralProvisions
information, without the consent of the data subject, and not
anyexistinglaw.
constitutingMaliciousdisclosure. 1.Principles
b. Accessing personal information and sensitive personal
i. “Committed in Large-Scale” — when the personal
information due to negligence — providing access to 2.Stages
information of at least 100 persons is harmed, affected or
personal information or sensitive personal information,
involvedastheresultoftheabove-mentionedactions. 3.Classification
withoutbeingauthorizedunderanylaw,duetonegligence.
c. Improper personal information or sensitive personal 4.EssentialRequisites
information — knowingly or negligently disposing,
DAY2|AMCivilLaw
B.FormofContracts
discarding or abandoning the personal information or sensitive
LegalPresonalityandCapacitytoAct
personal information of an
individual in
an
area
accessible
to C.ReformationofInstruments
the
public
or
has
otherwise
placed
the personal information of MaritalRelationships D.InterpretationofContracts
anindividualinitscontainerfortrashcollection.
Requisites E.DefectiveContracts
d. Processing of personal information or sensitive personal
information for unauthorized purposes — processing of MarriagesCelebratedAbroad
1.RescissibleContracts
personal information or sensitive personal information for ForeignDivorce
purposes not authorized by the data subject, or otherwise 2.VoidableContracts
authorizedunderexistinglaws. VoidMarriages
3.UnenforceableContracts
e. Unauthorized access or Intentional breach — knowingly VoidableMarriages 4.VoidorInexistentContracts
and unlawfully, or violating data confidentiality and security
Property 5.Distinguish:resolutionandrescissionofcontracts
data systems, breaks in any way into any system where
personalandsensitivepersonalinformationisstored. Concept F.LoansandMortgages
f. Concealment of security breaches involving sensitive
Ownership G.Interest
personal information — concealing, intentionally or by
omission, security breaches involving sensitive personal Co-ownership TortsandQuasi-delicts
information, after
having
knowledge of
such
breach
and
of
the
RightofAccession A.PRINCIPLES
obligationtonotifytheDataPrivacyCommission.
g. Malicious disclosure — committed by any personal Easement
B.CLASSIFICATIONOFTORTS
information controller or personal information processor or Nuisance C.THETORTFEASOR
any
of its officials, employees or agents, who, with malice or in
bad faith, discloses unwarranted or false information relative to Obligations
D.PROXIMATECAUSE
A.GeneralProvisions E.LEGALINJURY
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F.INTENTIONALTORTS ART42.Civilpersonalityisextinguishedbydeath. law and not s ubject to stipulation, except that marriage
settlements may fix the property relations during the
G.NEGLIGENCE The effect of death upon the rights and obligations of the
marriagewithinthelimitsprovidedbythisCode.
deceasedisdeterminedbylaw,bycontractandbywill.
H.SPECIALLIABILITYINPARTICULARACTIVITIES Lawgoverningvalidityofmarriage
JuridicalPersons
I.STRICTLIABILITY Castillov.DeLeon-Castillo2
016
Kindsofjuridicalpersons
Damages The validity of a marriage and all its incidents must be
ART44.Thefollowingarejuridicalpersons: determined in accordance with the
law in
effect
at
the
time
of
A.GENERALCONSIDERATIONS itscelebration.
1) TheStateanditspoliticalsubdivisions;
B.DAMAGESINCASEOFDEATH 2) Other
corporations, institutions and entities for public Requisites
interest or purpose, created by
law;
their
personality
C.GRADUATIONOFDAMAGES EssentialRequisites
begins as soon as they have been constituted
accordingtolaw;
1. LegalPresonalityandCapacitytoAct ART 2. No marriage shall be valid, unless these essential
3) Corporations, partnerships and associations for requisitesarepresent:
NaturalPersons private interest or purpose to which
the
law
grants a 1) ⭐Legal capacity of the contracting parties who
juridical personality, separate and distinct from that of mustbeamaleandafemale;and
ART 40. Birth determines personality; but the conceived child eachshareholder,partnerormember.
shall be
considered born for
all
purposes that
are
favorable to 2) Consent freely given in the presence of the
it,
provided it
be
born later with the conditions specified in the CapacitytoAct solemnizingofficer.
followingarticle.
JuridicalCapacitydistinguishedfromCapacitytoAct FormalRequisites
Commencementofcivilpersonality
ART 37. Juridical capacity, which is the fitness to be the ART3.Theformalrequisitesofmarriageare:
ART 41. For civil purposes, the foetus is considered born if it is subject of legal relations, is
inherent
in
every
natural
person
alive at the time it is completely
delivered
from
the
mother's 1) ⭐Authorityofthes
olemnizingofficer;
andislostonlythroughdeath.
womb. 2) ⭐A valid marriage license except in the cases
Capacity to act, which is the power to do acts with legal
However, if the foetus had an intrauterine life of less than providedforinChapter2ofthisTitle;and
effect,isacquiredandmaybelost.
seven months, it is not deemed born if it dies within
Restrictionsonthecapacitytoact 3) A marriage ceremony which takes
place
with the
twenty-four hours after its complete delivery from the maternal
appearance of the contracting parties before the
womb.
ART 38. Minority, insanity or imbecility, the state of being a solemnizing officer
and their personal declaration that
Geluzv.CA deaf-mute, prodigality and civil interdiction are mere they take each other as husband and wife in the
restrictions on capacity to act, and do not exempt the presenceofnotlessthantwowitnessesoflegalage.
Whether the husband of a woman, who voluntarily procured her
abortion,
could recover
damages from
the
physician
who caused the incapacitated person from certain obligations, as when the ⭐A
bsencemakesthemarriageV
OID.
same. latter arise from his acts or from property relations, such as
easements. Sevillav.Cardenas
NO. Even if a cause of action did accrue on behalf of the unborn child, A marriage license is an essential requisite for the validity of
the same was extinguished by its pre-natal death, since no 2. MaritalRelationships
marriage. The certification to be issued by
the Local
Civil Registrar
transmission to anyone can take place from one that lacked ART 1. Marriage is a special contract of permanent union must categorically state that the document does not exist in his
juridicalpersonality. between a man and a woman entered
into
in
accordance with office or the particular entry could not be found in the register
law for the establishment of conjugal and
family
life.
It
is
the despitediligentsearch.
Extinguishmentofcivilpersonality foundation of the family and an inviolable social institution
whose nature, consequences, and incidents are governed by Alcantarav.Alcantara
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An
irregularity in
any
of the formal requisites of marriage does The Municipal Civil
Registrar of Carmona, Cavite, where the marriage
not affect its validity but the party or parties responsible for the NO. Consent was
not
lacking between Albios and
Fringer.
That
their license of
Gloria and Syed was allegedly issued, issued a certification
irregularityarecivilly,criminallyandadministrativelyliable. consent was freely given is best evidenced by their conscious to the effect that no such marriage license for Gloria and
Syed
was
purpose of acquiring American citizenship through marriage. Such issued, and that the serial number of
the
marriage license pertained
Moreover, the solemnizing officer is not duty-bound to plainly demonstrates that they willingly and
deliberately contracted to another couple. The marriage cannot be characterized as among
investigate whether or not a marriage license has been duly themarriage. the exemptions, and thus, having been solemnized without a
andregularlyissuedbythelocalcivilregistrar. marriagelicense,isvoidabinitio.
The respondent’s m arriage is not at all analogous to a
Khov.Republic2016 marriage in jest. Albios and Fringer had an undeniable intention Go-Bangayanv.BangayanJr.2013
to be bound in
order
to
create
the
very
bond necessary to
allow
the
The Certification issued by the Civil Registrar is
sufficient evidence The marriage between Benjamin and Sally “was made only in jest”
respondenttoacquireAmericancitizenship.
to prove the absence of
the
subject marriage license. By virtue of and “a simulated marriage, at the instance of Sally, intended to
such certification, it
becomes the burden of
respondent to prove that cover her up from expected social humiliation coming from relatives,
Aranesv.Occiano
their marriage is valid as it is she who alleges such validity. The friends and the society especially from
her
parents seen as
Chinese
Certificate of
Marriage issued by the officiating priest does not Respondent judge should be faulted for solemnizing a marriage conservatives.”Inshort,itwasafictitiousmarriage.
contain any entry regarding the said marriage license. without the requisite marriage license. In People vs.
Lara, we held
Respondent could have obtained a copy of their marriage contract that a marriage which preceded the issuance of the marriage Defectinanyofessentialrequisites—Voidable(Art.45FC)
from the National Archives and Records Section, where information license is void, and that the subsequent issuance of such license
regarding the marriage license, i.e., date of issuance and license cannotrendervalidorevenaddaniotaofvaliditytothemarriage. xxxx
number,couldbeobtained.However,shealsofailedtodoso. A
defect
in
any of
the
essential requisites shall not
affect
the
Besov.Daguman validity of the marriage but the party or parties responsible
In Republic v. CA, this Court considered the
certification issued by for the irregularity shall be civilly, criminally and
the Local Civil Registrar as a certification of due search and A marriage can be held outside the judge’s chambers
or
courtroom
administrativelyliable.
inability to
find the
record or
entry
sought by
the
parties despite onlyinthefollowinginstances:
the absence of
a categorical statement that "such document does not 1. atthepointofdeath; Effectofirregularityinanyoftheformalrequisites
existintheirrecordsdespitediligentsearch." 2. inremoteplacesinaccordancewithArticle29,or Navarrov.Domagtoy
Diaz-Salgadov.Anson2
016 3. upon the request of both parties in writing in a sworn Even if the spouse present has
a well-founded belief
that the
absent
statementtothiseffect. spouse was already dead, a summary proceeding for
the declaration
A
cursory examination of
the marriage
contract of Luis
and Severina of presumptive death is
necessary in
order
to
contract a subsequent
reveals that
no
marriage license number was indicated therein. It Morigov.People marriage.
also appears therein
that no marriage license was exhibited to
the
solemnizingofficer. In the
instant case, no
marriage ceremony at
all was performed by
Where a judge solemnizes a marriage outside his court's jurisdiction,
a duly authorized solemnizing officer. Petitioner and Lucia Barrete
there is a resultant irregularity in the
formal requisite laid
down
in
ART 4. The absence of any of t he essential or formal merely signed a marriage
contract on their own. The mere private act Article 3, which while it
may
not
affect the
validity
of the marriage,
of signing a marriage contract bears no semblance to a valid marriage
void
requisites shall render the marriage a b initio, except as maysubjecttheofficiatingofficialtoadministrativeliability.
and thus, n eeds no judicial declaration of nullity. Such act
statedinArticle35(2).
alone, without more, cannot be deemed to constitute an
ostensibly
xxxx
ART 5. Any male or female of the age of eighteen years or
valid marriage for which petitioner might be held liable
for
bigamy
upwards not under any of the impediments mentioned in
unless he first secures a judicial declaration of nullity before he
Republicv.Albios2
013 Articles37and38,maycontractmarriage.
contractsasubsequentmarriage.
Is
a marriage, contracted
for the sole purpose of acquiring American ART 6. No prescribed form or religious rite for the
citizenship in consideration of $2,000.00, void ab initio on the ground Abbasv.GloriaGooAbbas2013 solemnization of the marriage is required. It shall be
oflackofconsent? necessary, however, for the contracting parties to appear
personally before the solemnizing officer and declare in the
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presence of not less than two
witnesses
of
legal
age
that
they solemnized at
a house
or
place
designated
by them in
Testimony by one of the parties to the marriage, or by
one of
takeeachotherashusbandandwife.xxxx aswornstatementtothateffect.
the witnesses to
the marriage,
has been held
to
be
admissible
Personsauthorizedtosolemnizemarriage MarriageLicense—W
hereissued to prove the fact of marriage. The person who officiated at the
solemnization is also competent to testify as an eyewitness to the
ART7.Marriagemaybesolemnizedby: ART 9. A marriage license shall be issued by the local civil factofmarriage.
1) Any incumbent member of the
judiciary
within
the registrar of the city or municipality where either contracting
court'sjurisdiction; party habitually resides, except
in
marriages
where no
license Syv.CA
isrequiredxxxx.
2) Any priest,
rabbi, imam, or
minister of
any church On the day of the marriage ceremony, there was no marriage
or religious sect duly authorized by his church or Whowillissue license. A marriage license is a formal requirement; its absence
religious sect and registered with the civil registrar renders the marriage void ab initio. In addition, the marriage
ART 10. Marriages between Filipino citizens abroad may be
generalxxx; contract shows that the marriage license was issued in Carmona,
solemnized by a consul-general, consul or vice-consul of the
3) Any ship captain or airplane chief only in the case RepublicofthePhilippines.xxxx. Cavite, yet,
neither petitioner
nor
private
respondent
ever resided in
mentionedinArticle31; Carmona.
Ifpreviouslymarried
4) Any military commander of a unit to which a
ART 13. In case either of the contracting parties has been Villanuevav.CA
chaplain is assigned, in the absence of the latter,
during
a military
operation, likewise only in the cases previously married, the applicant shall be required to The best documentary evidence of a marriage is
the
marriage
mentionedinArticle32; furnish, instead
of
the
birth or baptismal certificate required in contract itself. A Torrens certificate is the best evidence of
5) Any
consul-general, consul or vice-consul in the case thelastprecedingarticle, ownershipofregisteredland,n otofthecivilstatuso ftheowner.
providedinArticle10. 1. thedeathcertificateofthedeceasedspouseor
SSSv.Enobiso2013
Enumerationnotexclusive.Mayormayalsosolemnize. 2. thejudicialdecreeoftheabsolutedivorce,or
In Trinidad v. CA, et al.,
this
Court
ruled
that
the
following
may
be
Peoplev.Bustamante 3. thejudicialdecreeofannulmentor
presentedasproofofmarriage:
4. declarationofnullityofhisorherpreviousmarriage.
When the issue involves the assumption of
powers and duties of the a) testimonyofawitnesstothematrimony;
office of
the mayor by the vice-mayor, when proper,
it
is
immaterial In case the death
certificate
cannot be
secured, the
party shall b) the couple's public and open cohabitation as husband and
whether it is
because the latter is
the
Acting Mayor or merely
acting make an affidavit setting forth this circumstance and his or her wifeaftertheallegedwedlock;
as Mayor, for in both instances, he discharges all the duties and actual civil status and the name and date of death of the
wieldsthepowersappurtenanttosaidoffice. deceasedspouse. c) the birth and baptismal certificate of children born during
suchunion;and
Prooftoattackthevalidityofmarriage
VenueofMarriage—E xceptions: d) thementionofsuchnuptialinsubsequentdocuments.
ArticuloMortisandWrittenrequest LimTanhuv.Ramolete
Here, the lack of prompt recording with the OCR does not amply
ART 8. The marriage shall be solemnized publicly in the The primary evidence of
a marriage must be an authentic copy rebut the presumption that Lourdes was Petronilo's wife. As declared
chambers of
the judge or in open court, in the church, chapel or of the marriage contract. While a marriage may also
be
proved in Vda. de Jacob, the "failure to send a copy of a marriage
temple, or in the office the consul-general, consul or by other competent evidence, the absence of
the
contract must first contract for
record purposes does not invalidate the marriage."
vice-consul,asthecasemaybe,andnotelsewhere,e xcept be satisfactorily explained. The certification of the person who It
is
not the duty of the couple to send a copy of the marriage contract
allegedly solemnized a marriage is not admissible evidence of
such tothecivilregistrar.
1. in
cases
of
marriages
contracted
on
the
point of death
marriage unless proof of loss of the contract or of any other
or
satisfactory reason for its non-production is first presented to the Avenidov.Avenido2014
2. inremoteplacesinaccordancewithArticle29or court.
While
a marriage certificate
is
considered the primary evidence of a
3. where both of the parties request the solemnizing marital
union,
it
is
not
regarded as the sole and exclusive evidence of
Pugedav.Trias
officer in writing in which case
the
marriage
may
be marriage. Jurisprudence teaches that the fact of marriage may be
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proven by relevant evidence other than the marriage certificate. In Van Dorn v. Romillo, Jr. we held that owing to the nationality
Hence, even a person’s birth certificate may be recognized as principle embodied in Article 15 of the Civil Code, only Philippine Moreover, in
Juliano-Llave v.
Republic, this
Court
held that the rule
competentevidenceofthemarriagebetweenhisparents. nationals are covered by the policy against absolute divorces, the in A.M. No. 02-11-10-SC that only the husband or wife can file a
same being considered contrary to our
concept of
public policy
and declaration of nullity or annulment of marriage “does NOT apply if
Here, the
establishment of
the
fact
of
marriage was completed by the morality. thereasonbehindthepetitionisb igamy.”
testimonies of
Adelina, Climaco and Tecla;
the
unrebutted fact
of
the
birth within the cohabitation of Tecla and Eustaquio of four (4) Citing this landmark case, the Court held in Quita v. CA, that once Fujiki has the personality to file a petition to recognize the
children coupled with the certificates of the children’s birth and proven that respondent was no longer a Filipino citizen when he Japanese Family Court judgment nullifying the marriage between
baptism; and the certifications of marriage issued by the parish priest obtained the divorce from petitioner, the
ruling in
Van Dorn would Marinay and Maekara on the ground of bigamy because the judgment
oftheMostHolyTrinityCathedralofTalibon,Bohol. become applicable and petitioner could "very well lose
her right to concerns his
civil
status as married to
Marinay. For the same reason
inherit"fromhim. he
has
the personality to
file a petition under Rule 108 to cancel the
InthematteroftheIntestateEstatesofDelgadoandRustia entry
of
marriage between Marinay and Maekara in
the
civil registry
In
Pilapil
v.
Ibay-Somera, we stated that divorce and its legal effects onthebasisofthedecreeoftheJapaneseFamilyCourt.
In this jurisdiction, every intendment of the law leans toward may be recognized in the Philippines insofar as respondent is
legitimizing matrimony. Persons dwelling together apparently in concerned in
view
of
the
nationality principle in our civil law on the A recognition of a foreign judgment is
NOT
an
action to
marriage are presumed to
be
in
fact
married.
Semper praesumitur statusofpersons. nullify a marriage. It is an action for Philippine courts to
promatrimonio.Alwayspresumemarriage. recognize the
effectivity
of
a foreign
judgment,
which
presupposes
a
Bayotv.CA casewhichwasalreadytriedanddecidedunderforeignlaw.
MarriagesCelebratedAbroad
The fact that Rebecca was clearly an American citizen when she
⭐Republicv.Manalo2
018EnBanc
ART 26. All marriages solemnized outside the Philippines, in secured the divorce and that divorce is recognized and allowed in any
accordance with the laws in force in the country where they of the States of the Union, the presentation of a copy of foreign Inthisjurisdiction,thefollowingrulesexist:
were solemnized, and valid
there as such, shall also be valid in divorce decree duly authenticated by the foreign court issuing said 1. Philippine
law
does
not
provide for absolute divorce; hence,
this
country, except
those prohibited under Articles 35 (1), (4), decreeis,ashere,sufficient. ourcourtscannotgrantit.
(5)and(6),36,37and38.
Garciav.Recio 2. Consistent with Articles 15 and 17, the marital bond
Where a marriage between a Filipino citizen
and a foreigner is between two Filipinos cannot be dissolved even by an
validly celebrated and a divorce is
thereafter validly obtained The divorce decree and the governing personal law of the alien absolutedivorceobtainedabroad.
abroad by the
alien spouse
capacitating him
or her to remarry, spouse who obtained the divorce must be proven. Our courts do not
3. An absolute divorce obtained abroad by a couple, who
are
the Filipino spouse shall have capacity to remarry under take judicial notice of foreign laws and judgments; hence, like any
both aliens,
may
be
recognized in
the
Philippines, provided
Philippinelaw.(A samendedbyExecutiveOrder227) other facts,
both
the
divorce decree and the national
law of
the
alien
itisconsistentwiththeirrespectivenationallaws.
mustbeallegedandprovenaccordingtoourlawonevidence.
ForeignDivorce 4. In mixed marriages involving a Filipino
and
a foreigner, the
Andov.DFA2014 former is
allowed to
contract a subsequent marriage in case
Lavadiav.HeirsofLuna2
014 the absolute divorce is
validly obtained abroad by
the
alien
With respect to
her
prayer
for the recognition of her second marriage spousecapacitatinghimorhertoremarry.
Divorce between Filipinos is void and ineffectual under the
as valid, petitioner should have filed, instead, a petition for the
nationalityruleadoptedbyPhilippinelaw.
judicialrecognitionofherforeigndivorcef romherfirsthusband. Based on
a clear and plain
reading of
Paragraph 2 of
Article 26, it
Republicv.OrbecidoIII only requires that there be a divorce validly
obtained abroad.
Fujikiv.Marinay2013 The letter of the law does not demand that the alien spouse
The reckoning point is
not
the
citizenship of
the parties at the time should be the one who initiated the proceeding wherein the
The Rule on Declaration of Absolute Nullity of Void
Marriages and
of
the celebration
of
the marriage, but
their
citizenship at the time divorce decree was granted. It does not distinguish whether the
Annulment of Voidable Marriages (A.M. No. 02-11-10-SC) does
not
a
valid divorce is obtained abroad by the alien spouse capacitating Filipino spouse is the petitioner or the respondent in the foreign
apply in a petition
to
recognize a foreign
judgment relating to
thelattertoremarry. divorceproceeding.
the status of a marriage where one of the parties is a citizen of a
foreigncountry.
Llorentev.CA
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Morisonov.Morisono2018reiteratingM
analo VoidMarriages Psychologicalincapacitymustbecharacterizedby
Pursuant to Manalo, foreign divorce decrees obtained to nullify a) Gravity, the incapacity must be grave or
serious such that
marriages between a Filipino and an alien citizen may already be 1) MarriagesthatareVoida
binitio the party would be incapable of carrying out the
ordinary
recognized in this jurisdiction, regardless of who between the dutiesrequiredinmarriage;
spouses initiated the divorce; provided, of course, that the party
ART 35. The following marriages shall be VOID from the
petitioning for the recognition of such foreign divorce decree – beginning: b) Juridical antecedence, it
must
be
rooted
in
the
history
of
presumably the Filipino citizen – must prove the divorce as a fact 1) Those contracted by any party below eighteen the party antedating the marriage, although the overt
anddemonstrateitsconformitytotheforeignlawallowingit. manifestationsmayemergeonlyafterthemarriage;and
years of age even with the consent of parents or
guardians; c) Incurability, it must be incurable or, even if it were
Republicv.Cote2018
2) Those solemnized by any person not legally otherwise, the
cure
would be beyond the means of the party
WON the provisions of A.M. No. 02-11-10-SC applies in a case authorized to perform marriages unless such involved.(S antosv.CA)
involvingrecognitionofaforeigndecreeofdivorce. marriages were contracted with either or
both
parties Macamv.Macam2014
believing in good faith that the solemnizing officer
A.M. No. 02-11-10-SC only covers void and
voidable
marriages Any party may attack a VOID marriage. It may be questioned even
hadthelegalauthoritytodoso;
thatarespecificallycitedandenumeratedintheFamilyCode. beyond the lifetime of the
parties
to
the marriage. Indeed,
a void
3) Those solemnized without license, except those marriagemaybeimpugnedeither:
It was error for the RTC to use as basis for denial of petitioner's coveredtheprecedingChapter;
appeal Section 20 of
A.M. No. 02-11-10-SC. Since Florie followed the 1) directly,byfilinganactionattackingthevaliditythereof;or
procedure for cancellation of entry in the civil registry, an appeal 4) Those bigamous or polygamous marriages not
2) collaterally, in a suit
instituted not
to
specifically question
from the
RTC decision should be
governed by Section 3 of Rule 41 failingunderArticle41;
the same, but where the determination of the issue of its
oftheRulesofCourtandn otA.M.No.02-11-10-SC. 5) Those contracted through
mistake of
one
contracting validity is essential to the
resolution of
the
controversy, as
partyastothei dentityoftheother;and inthecaseatbar.
Noverasv.Noveras2014
6) Those subsequent marriages that are void under
The trial
court erred
in recognizing the divorce decree which severed Mallionv.Alcantara
Article53.
the bond of marriage between the parties. Only the divorce decree A previous final judgment denying a petition for declaration of nullity
was presented in evidence. The required certificates to prove its 2) PsychologicalIncapacity on the ground of psychological incapacity BARS a subsequent
authenticity, as well as the
pertinent California
law on divorce were petition for declaration of nullity on
the
ground
of
lack
of
marriage
not presented. Absent a valid recognition of the divorce decree, it ART 36. A marriage contracted by any party who, at the time of license.
follows that the parties are still legally married in the Philippines. the celebration, was psychologically incapacitated to comply
Thetrialcourtthuserredinproceedingdirectlytoliquidation. with the essential marital obligations of marriage, shall ChiMingTsoiv.CA
likewise be VOID even if such incapacity becomes manifest
Nulladav.theCivilRegistrarofManila2019 onlyafteritssolemnization. One of
the
essential marital obligations under the Family Code is "To
procreate children based on the
universal principle that
procreation
Applying the same legal considerations and
considering the
similar Meaning of
children through
sexual
cooperation is
the
basic
end of marriage."
factual milieu that attended in Manalo, the present case
warrants a Constant non-fulfillment of this obligation will finally destroy the
reversal of the RTC's decision that refused to
recognize the
divorce "Psychological incapacity" should refer to no less than a mental
integrityorwholenessofthemarriage.
decree that was mutually obtained by Marlyn and her foreigner (not physical) incapacity that causes
a party to be truly incognitive
of
the basic marital covenants that concomitantly must be assumed In the case
at bar, the
senseless and
protracted refusal of
one
of
spouse in Japan solely on the ground that the divorce was jointly
and discharged by the parties to the marriage which, as so the p
arties t
o f
ulfill
t he
above m arital
obligation is
equivalent
initiated by the spouses. The Court finds no reason to deviate from its
expressed by Article 68 of the Family Code, include their mutual to p
sychological i
ncapacity .
recentdispositionontheissue,asmadeinM analo.
obligations to live together, observe love, respect and fidelity and
renderhelpandsupport. Republicv.Molina
Requisites
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must make it impossible for him or her to understand and,
Far
from
abandoning Molina, the
Court
in
Te
v. Te simply suggested
1. The burden of proof to show the nullity of the marriage more important, to comply with his or her essential marital
therelaxationofthestringentrequirementssetforththerein.
belongstotheplaintiff. obligations.
2. Therootcauseofthepsychologicalincapacitymustbe 3. A party to a nullity case is still required to prove juridical ⭐Tenebrov.CA
antecedencebecauseit isanexplicitrequirementofthelaw.
a) medicallyorclinicallyidentified, The subsequent judicial declaration of nullity of marriage on
Proof of juridically antecedent psychological incapacity may the ground of
psychological incapacity does
not retroact to
the
b) allegedinthecomplaint, consist of testimonies describing the environment where the date of
the
celebration of the marriage insofar as the Philippines’
supposedly incapacitated spouse lived that may have
led
to
a penal laws are concerned. As such, an individual who contracts a
c) sufficientlyprovenbyexpertsand
particularbehavior. second or subsequent marriage during the subsistence of a valid
d) clearlyexplainedinthedecision. marriage is criminally liable for bigamy, notwithstanding the
4. The third Molina guideline is amended. Psychological
3. The incapacity
must be
proven
to
be
existing
at “the time of subsequent declaration
that
the second
marriage is
void
ab
initio on
incapacity is incurable, not in the medical, but in the legal
thecelebration”ofthemarriage. thegroundofpsychologicalincapacity.
sense.
4. Such incapacity must also be shown to be medically or This means that the incapacity is so enduring and persistent Antoniov.Reyes✔
clinicallypermanentorincurable. with respect to a specific partner, and contemplates a situation
The Court had already held in Marcos v. Marcos that personal
5. Such illness must be grave enough to bring about the where the couple's respective personality structures are so
examination of
the subject by the physician is NOT required for
incompatible and antagonistic that the only result of the union
disability of the party to assume the essential obligations of thespousetobedeclaredpsychologicallyincapacitated.
would be the inevitable and irreparable breakdown of the
marriage.
marriage.
6. The essential marital obligations must be those embraced Buenaventurav.CA
5. With respect to gravity, the requirement is retained. The
by Articles 68 up to 71 of the Family Code as regards the By declaring the petitioner as psychologically incapacitated, the
husband and wife as well as Articles 220, 221 and 225 of the psychological incapacity cannot be mere "refusal, neglect, or
possibility of awarding moral damages on the
same set
of
facts was
sameCodeinregardtoparentsandtheirchildren. difficulty, much less ill will." In other words, it must be shown
negated. Since psychological incapacity means that
one is
truly
that the incapacity is caused by a genuinely serious psychic
7. Interpretations given by the National Appellate Matrimonial incognitive of the basic marital covenants that one must
cause.
Tribunal of the Catholic Church in the Philippines, while not assume and discharge as a consequence of marriage, it
controlling or decisive, should be
given great respect by our 6. The p ersuasive e ffect o f
the d ecisions o f
the
N ational A ppellate removes the basis for the contention that the petitioner
Matrimonial Tribunal of the Catholic Church of the Philippines purposely deceived the private respondent. If the private
courts.
onnullitycasespendingbeforesecularcourtsisr etained. respondent was deceived, it was not due to a willful act on the part of
8. The trial
court must order the
prosecuting attorney or fiscal the petitioner. Therefore, the award of moral damages was
While Article 36 is similarly worded to the
third paragraph of
andtheSolicitorGeneraltoappearascounselforthestate. withoutbasisinlawandinfact.
Canon 1095, canonical decisions based on the second
paragraph should likewise have a persuasive effect in secular
NB: Please note the 2021 En Banc case of Tan-Andal v. Andal, Rumbauav.Rumbaua
decisionsonpsychologicalincapacity.
pennedbyL eonen,J.Somenotablepronouncements:
A.M. No. 02-11-10-SC, as a remedial measure, removed the
Ngo Te
v.
Te
as
reiterated in Azcueta v.
Republic and CA and Halili
1. The
plaintiff-spouse must prove his or her case with clear and mandatory nature of an OSG certification and may be applied
convincinge vidence. v.HaliliandRepublic✔
retroactively to pending matters. Thus, what is important is the
Petitioner's behavioral pattern falls under the classification of presence of the prosecutor in the case, not the
remedial requirement
2. The second Molina guideline is abandoned. Psychological
dependent personality disorder, and respondent's, that of the that h
e b
e c
ertified t
o b
e p
resent.
incapacity is neither a mental incapacity nor a personality
narcissistic and antisocial personality disorder. Both parties
disorderthatmustbeproventhroughexpertopinion.
being afflicted with grave, severe and incurable psychological Kalawv.Fernandez2015✔
There must be proof, however, of t he durable or enduring incapacity,theprecipitousmarriageisthusdeclaredn ullandvoid.
aspects of a person's personality, called "personality structure," In
her
Psychological Evaluation Report, Dr. Dayan impressed that the
which manifests itself through clear acts of dysfunctionality Tingv.Velez-Ting respondent h
ad “
c
ompulsive a
nd d
ependent tendencies” to the
that
undermines the
family. The spouse's personality structure extent o
f b
eing “
relationship d
ependent.”
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7) Between an
adopted
child and a legitimate child of the
necessary before a subsequent one can be legally contracted.
The frequency of
the
respondent’s
mahjong playing should not
have adopter;
One who enters into a subsequent marriage without first
obtaining
delimited our determination of the presence or absence of 8) Betweenadoptedchildrenofthesameadopter;and such judicial declaration is guilty of bigamy.
This
principle
applies
psychological incapacity. Instead, the determinant should be her eveniftheearlierunionischaracterizedbystatuteas“void.”
obvious failure to fully appreciate the duties and 9) Between parties where one, with the intention to
responsibilities of parenthood at the time she made her marital marry the other, killed that
other
person's
spouse,
or
NicdaoCariñov.Cariño
vows. hisorherownspouse.
The marriage between petitioner Susan Nicdao and the deceased,
Vinasv.Parel-Vinas2
015 5) ImprescriptibilityofActionto having been solemnized without
the
necessary marriage license, and
DeclareNullityofMarriage not being one of the marriages exempt from the marriage license
The lack of personal examination or assessment of the requirement,isundoubtedlyv oidabinitio.
respondent by a psychologist or
psychiatrist is
not
necessarily ART 39. The action or defense for the declaration of absolute
fatal in a petition for
the
declaration of
nullity of
marriage. “If nullityofamarriageshallnotprescribe. Accordingly, the declaration in the instant case of nullity of the
the totality of evidence presented is enough to sustain a finding
of previous marriage of the deceased and Susan Nicdao does not
psychological incapacity, then actual medical examination of the Niñalv.Bayadog,supra validate the second marriage of the deceased with Susan Yee. The fact
personconcernedneednotberesortedto.” The law makes either the action or defense for the declaration of remains that their
marriage was solemnized without first obtaining a
absolute nullity
of
marriage imprescriptible. Corollarily, if
the
death judicial decree declaring the marriage of Susan Nicdao and the
deceased void. Hence,
the
marriage of
Susan
Yee and the deceased is,
3) IncestuousMarriage of
either
party
would extinguish the cause of action or the ground for
defense,thenthesamecannotbeconsideredimprescriptible. likewise,voidabinitio.
ART 37. Marriages between the following are incestuous and
void from the beginning, whether relationship between the Montañezv.Cipriano2012
6) BigamousMarriageUnderArt40
partiesbelegitimateorillegitimate: Whether or not the RTC erred in quashing the Information for
1) Between ascendants and descendants of any degree; ART 40. The absolute nullity of a previous marriage may be bigamyfiledagainstrespondent.
and invoked for purposes of remarriage on the basis solely of a
finaljudgmentdeclaringsuchpreviousmarriagevoid. YES. Here, at the time respondent contracted the second marriage, the
2) Between brothers and sisters, whether of the full or first marriage was still subsisting as it had not yet been legally
halfblood. Article40andthecrimeofBigamy dissolved. In Atienza v. Brillantes, Jr., the Court already made the
For a person to be convicted of bigamy, the following elements declaration that
Article 40,
which a rule of procedure, should be
is
4) VoidMarriageforReasonofPublicPolicy appliedretroactively.
mustconcur:
ART 38. The following marriages shall be void from the 1) thattheoffenderhasbeenlegallymarried; Capiliv.People2
013
beginningforreasonsofpublicpolicy:
2) that the first marriage has not been legally
dissolved Whether or not the subsequent declaration of nullity
of
the
second
1) Between collateral blood relatives
whether
legitimate or, in case of an absentee spouse, the absent spouse marriageisagroundfordismissalofthecriminalcaseforbigamy.
orillegitimate,uptothefourthc ivildegree; could not yet be presumed dead according to the
provisionsoftheCivilCode; NO. The subsequent judicial declaration of the
second
marriage for
2) Betweenstep-parentsandstep-children;
3) that the offender contracts a second or subsequent being bigamous in
nature
does not
bar
the
prosecution of
petitioner
3) Betweenparents-in-lawandchildren-in-law; forthecrimeofbigamy.
marriage;and
4) Betweentheadoptingparentandtheadoptedchild;
4) that the second or subsequent marriage has all the Peoplev.Odtuhan2013
5) Between the surviving spouse of the adopting
parent essentialrequisitesforvalidity.
andtheadoptedchild; Settled is the rule that criminal culpability attaches to the
offender
Mercadov.TanandI wasawav.CustodioGangan2
013 upon the commission of the offense and from that
instant, liability
6) Between the surviving spouse of the adopted child and appends to him until extinguished as provided by law and that
the
A judicial declaration of nullity of a previous marriage is
theadopter; time of filing of the criminal complaint or information is material
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There
are
four
(4)
requisites for
the
declaration
of presumptive death Judicial
Declaration of
Presumptive Death NOT
onlyfordeterminingprescription.
underArticle41oftheFamilyCode: requiredpriortoeffectivityofFamilyCode
SartoyMisaluchav.People2018 1. That the
absent spouse
has been missing for
4 consecutive Valdezv.Republic
years, or 2 consecutive years if
the
disappearance occurred
Redante admitted that
he
had contracted two marriages. He, however, For the
purposes of the
civil marriage law, it is not necessary to have
where there is danger of death under the circumstances laid
put forth the defense of the termination of his first marriage as a the former spouse judicially declared an absentee. The declaration of
downinArticle391,CivilCode;
resultofthed ivorceo btainedabroadbyhisalienspouse. absence made in accordance with the provisions of the Civil Code has
2. Thatthepresentspousewishestor emarry; for its sole purpose to enable the taking of the necessary
Since neither the divorce decree nor the alleged Canadian law was precautions for
the administration of
the
estate of
the
absentee. For
3. That the present spouse has a well-founded belief that the
satisfactorily demonstrated, the type of
divorce supposedly secured thecelebrationofcivilmarriage,however,thelawonlyrequires
absenteeisdead;and
could not be ascertained. As such, Redante failed to prove his defense 1. that the former spouse has been absent for seven
that
he
had the
capacity to
remarry when he contracted a subsequent 4. That
the
present
spouse
files
a summary
proceeding
for the consecutiveyearsatthetimeofthesecondmarriage,
marriage to Fe.
His
liability for
bigamy is, therefore, now beyond declarationofpresumptivedeathoftheabsentee.
question. 2. that the spouse present does not know his or her former
Republicv.Nolasco spousetobeliving,
NoretroactiveeffectforArticle40 Nolasco failed to conduct a search for his missing wife with such 3. thatsuchformerspouseisgenerallyreputedtobedeadand
diligence as to give rise to a "well-founded belief" that she is 4. the spouse
present
so
believes
at
the time of the celebration
Castillov.DeLeon-Castillo,supra2
016
dead. ofthemarriage.
We find that the provisions of the Family Code cannot be
retroactively applied to
the present case, for to do so would prejudice When he arrived in San Jose, Antique after learning of Janet's Under the
Civil
Code,
the
presumption of death is established by
thevestedrightsofpetitionerandofherchildren. departure, instead of seeking the help of local authorities or of the law
and no
court
declaration is
needed for
the presumption to
British Embassy, he secured another seaman's contract and
went to arise.
The subsequent marriage of Lea to Renato is valid in view of the
London, a vast city of
many millions of
inhabitants, to look
for her
invalidity of
her first marriage to Bautista because of the absence of a
there. We do not consider that walking into a major city like Matiasv.Republic2018
marriage license. That there was no judicial declaration that the first
Liverpool or London with
a simple
hope of somehow bumping into
marriage was void ab initio before the second marriage was The petition for the declaration of presumptive death filed by the
one particular person there — which is
in effect
what
Nolasco says
contracted is
immaterial as
this
is
not a requirement under the
Civil petitioner is not an authorized suit and should have been
hedid—canberegardedasareasonablydiligentsearch.
Code. dismissed by
the
RTC because petitioner was not seeking to remarry.
Republicv.EspinosaCantor2013EnBanc A reading of Article 41 of the FC shows that the presumption of
Vitangcolv.People2016Leonen,J death established therein is ONLY applicable for the purpose of
The Family Code
was
explicit that
the
court’s
judgment
in
summary contractingavalidsubsequentmarriageunderthesaidlaw.
Persons intending to contract a second marriage must first
secure a
proceedings, such as the declaration of presumptive death of an
judicial declaration of nullity
of their
first
marriage. If
they
proceed
absent spouse under Article 41 of the Family Code, shall be Republicv.Catubag2018
with the second marriage without the judicial declaration, they are
immediately final and executory. Modification of the court’s
guilty of bigamy regardless of evidence of the nullity of the first Since
what
is
involved in
the instant case is a petition for declaration
ruling, no
matter
how erroneous, is no
longer
permissible. The final
marriage. of
presumptive death,
the relevant provisions of law are Articles 41,
and
executory nature of this summary proceeding thus prohibits the
resorttoappeal.( Republicv.Bermudez-Lorino,Republicv.Tango) 238, and 253 of the Family Code. These provisions explicitly
Mere presentation of a certification from the civil registrar
that
the
providethatactionsforpresumptivedeathares ummaryi nnature.
marriage license cannot be found is not enough to discharge the
The law did not define what is
meant by “well-founded belief.”
burdenofprovingthatnosuchmarriagelicensewasissued.
To
be
able to comply with this requirement, the present spouse must Parties cannot seek reconsideration, nor appeal decisions in
prove that
his/her belief
was the result of
diligent
and reasonable summary judicial
proceedings under the Family Code. Petitioner's
7) JudicialDeclarationofPresumptiveDeath efforts and inquiries to
locate
the absent spouse
and
that based on resort
to
certiorari
under
Rule
65
of
the Rules
of
Court
to
challenge
these efforts and inquiries, he/she believes that under the theRTC'sOrderdeclaringShanavivpresumptivelydeadwasp roper.
Requisites
circumstances, the absent spouse is already dead. It requires
exertionofactiveeffort(notamerepassiveone). Santosv.Santos2014Leonen,J
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2) The property relations shall be dissolved and ElmerBermudov.CA2013
The proper remedy for a judicial declaration of presumptive death
liquidated, but if either spouse contracted said
obtained by
extrinsic fraud an action to annul the judgment.
is vitiated
Petitioner’s claim of consent as a result of the force and
marriage in bad faith, his or her share of the net
An affidavit of reappearance is not the proper remedy when the profitsshallbef orfeitedi nfavorof intimidation employed by respondent’s friends in obtaining his
persondeclaredpresumptivelydeadhasneverbeenabsent. agreementtohismarriagewithrespondenthasnomerit.
a) thecommonchildrenor,
Here, no evidence was presented to reveal force, intimidation or
8) VoidableBigamousMarriage b) if there are none, the children of the guilty
undue influence. There is no proof of the facts or circumstances
spousebyapreviousmarriageor
SSSv.Vda.DeBailon constituting force, intimidation or undue influence that respondent or
c) indefaultofchildren,theinnocentspouse; her friends
have improperly taken
advantage of,
or
used their power,
If the subsequent marriage is not terminated by registration of an if any, over the will of petitioner, depriving him of a reasonable
affidavit of reappearance or by judicial declaration but by death of 3) Donations by reason of marriage shall remain valid,
freedom of choice. Petitioner is a healthy male with sufficient
either spouse as
in
the
case
at
bar,
the
effects
of
dissolution of valid except that if the donee contracted the marriage in bad intellectualcapacitytoresistanyuntowardintimidationagainsthim.
marriagesshallarise. faith, such donations made to said donee are revoked
byoperationoflaw;
KindsofFraudthatcouldinvalidatethemarriage
It bears reiterating that a voidable marriage cannot be assailed
4) The innocent spouse may revoke the designation of
collaterally except
in
a direct proceeding. In
the
case at bar, as no the other spouse who acted in bad faith as ART 46. Any of the following circumstances shall constitute
step was taken to nullify, in accordance with law, Bailon's and fraudr eferredtoinNumber3oftheprecedingArticle:
beneficiary in any insurance policy, even if such
respondent's marriage prior to the former's death in 1998, designationbestipulatedasirrevocable;and 1) Non-disclosure of a previous conviction by final
respondentisrightfullythedependentbeneficiaryofBailon.
5) The spouse who contracted the subsequent marriage judgment of the other party of a crime involving
moralturpitude;
EffectsofReappearance in
bad faith shall be disqualified to inherit from the
innocentspousebytestateandintestatesuccession. 2) Concealment by
the
wife
of
the
fact that at
the time of
ART 42. The subsequent marriage referred to in the preceding the marriage,
she was
pregnant by
a man other than
Article shall be
automatically
terminated by
the recording Effectsifbothpartiestothesubsequentmarriageareinbadfaith
herhusband;
of
the
affidavit of
reappearance of
the absent spouse, unless
ART 44. If both spouses of the subsequent marriage acted in 3) Concealment of
STD, regardless
of
its
nature,
existing
there is a judgment annulling the previous marriage or
bad faith, said marriage shall be void ab initio and all atthetimeofthemarriage;or
declaringitvoidabinitio. donations by reason of marriage and testamentary dispositions
A sworn statement of the fact and circumstances of made by
one in
favor
of
the
other
are
revoked by operation of 4) Concealment of drug addiction, habitual
reappearance shall be recorded in the civil registry of the law. alcoholism or homosexuality or lesbianism
residence of the parties to the subsequent marriage at the existingatthetimeofthemarriage.
VoidableMarriages
instance of ANY interested person, with due notice to the No other misrepresentation or deceit as to character, health,
spouses of the subsequent marriage and without prejudice to GroundsforAnnulmentofMarriage rank, fortune
or chastity shall constitute such fraud as will give
the fact of reappearance being judicially determined in case groundsforactionfortheannulmentofmarriage.
suchfactisdisputed. ART45.Simply
Aquinov.Delizothe‘plump’case
Effectsofterminationofsubsequentmarriage a. LackofParentalConsent;
byreappearanceoftheabsentspouse Concealment by the wife
of
the
fact
that
at
the
time
of
the
marriage,
b. Unsoundnessofmind; she
was pregnant
by
a man
other than her husband constitutes fraud
ART 43. The termination of the subsequent marriage referred to andisgroundforannulmentofmarriage.
c. ConsentobtainedbyFraud;
intheprecedingArticleshallproducethefollowingeffects:
1) The children of the subsequent marriage conceived d. Consentobtainedbyforce,intimidation,orundue
influence;
PrescriptiveperiodforAnnulmentofMarriage
prior to its termination shall be considered
legitimate; e. Physicalincapacityofconsummatingthemarriage; ART 47. The action for annulment of marriage must be filed by
thefollowingpersonsandwithintheperiodsindicatedherein:
f. AfflictedwithSTDthatisseriousandincurable.
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1) For
causes mentioned in number 1 of Article 45 by the
of the
respondent.
The
trial
court
forthwith
received the
evidence of
EffectsofAnnulmentofMarriage
party
whose parent or
guardian did not give his or her
the respondent
ex-parte
and
rendered judgment against the petitioner ART 50. The effects provided for by paragraphs (2), (3), (4) and
consent, within 5 years after attaining the age of
withoutawhimperofprotestfromthepublicprosecutor.
twenty-one, or by the parent or guardian or person (5) of Article 43 and by Article 44 shall also apply in the proper
having legal charge of
the
minor, at
any time before The actuations of the trial court and the public prosecutor are in cases to
marriages which are
declared ab
initio
or annulled by
suchpartyhasreachedtheageoftwenty-one; defianceofArticle48o ftheFamilyCode. finaljudgmentunderArticles40and45.
2) For causes mentioned in number 2 of Article 45, by Thefinaljudgmentinsuchcasesshallprovidefor
Republicv.Iyoy
the
same spouse, who had no knowledge of the other's 1. the liquidation, partition and distribution of the
insanity; or by any relative or guardian or person The general rule is that only the Solicitor General is authorized to propertiesofthespouses,
having charge of the insane, at any time before
legal bring or
defend actions on behalf of
the
People or
the Republic once
the
case is
brought before this Court or
the Court of Appeals. Since it 2. the custody and support of the common children,
the death of either party, or by the insane spouse and
shall be eventually responsible for taking the case to the appellate
duringalucidintervalorafterregainingsanity;
courts when circumstances demand, then it is only reasonable and 3. thedeliveryofthirdpresumptivel egitimes.
3) For causes mentioned in number 3 of
Articles 45,
by practical that
even
while the proceeding is
still
being held before the
the injured party, 5 years
within after the
discovery RTC, the OSG can already exercise supervision and control
over the Valdesv.RTC
ofthefraud; conduct of the prosecuting attorney or fiscal therein to better In a void marriage, regardless of the cause thereof, the property
guaranteetheprotectionoftheinterestsoftheState. relations of
the
parties
during the
period of cohabitation is governed
4) For causes mentioned in number 4 of Article 45, by
by the provisions of Article 147 or Article 148, such as
the
case
the injured party, within 5 years from the time the
Custodyandsupportofchildrenduring
maybe.
force, intimidation or
undue influence disappeared or
ceased; pendencyofthecase A
court
which
has
jurisdiction
to
declare
the marriage a nullity must
5) For
causes mentioned in number 5 and 6 of Article 45, be
deemed likewise clothed with authority to resolve incidental
Visitorialrightsofparent
by the injured party, within 5 years after the andconsequentialmatters.
marriage. ART 49. During the pendency of the action and in the absence
of adequate provisions in a written agreement between the Yuv.Reyes-Carpio2011
Nodeclarationofdefaultinannulmentcases spouses, the Court shall provide for the support of the spouses
The family court shall proceed with the liquidation, partition and
and the custody and support of their common children. The distribution, custody, support of common children, and delivery of
Tuasonv.CA,supra Court shall give paramount consideration to the moral and their presumptive legitimes upon entry of judgment granting the
The role of the prosecuting attorney or fiscal in annulment of material welfare of
said
children and their
choice
of the parent
petition. And following the pertinent provisions of A.M. No.
marriage and legal separation proceedings is to determine whether with whom they wish to remain. It shall also provide for 02-11-10-SC, this act is undoubtedly consistent with Articles 50 and
collusion exists between the parties and to take care that the evidence appropriatev isitationrightsoftheotherparent.
51oftheFamilyCode,contrarytowhatpetitionerasserts.
is not suppressed or
fabricated. Petitioner’s vehement opposition
to Silvav.CA
the annulment proceedings negates the conclusion that collusion The trial
court
may
receive evidence on
the
subject
incidents after
a
existed between the parties. Here, the non-intervention of a The case merely concerns the visitation right of a parent over his judgment granting the petition but before the decree of nullity or
prosecuting attorney to assure lack of collusion between the children which the trial court has
adjudged in
favor
of petitioner
by annulmentofmarriageisissued.
contending parties is
not fatal to the validity of the proceedings in holding that he shall have “visitorial rights to his children during
thetrialcourt. Saturdays and/or Sundays, but in no case (could) he take out the Diñov.Diño2011
children without the written consent of the mother x x x." The
visitation right referred to is the right of
access of
a noncustodial Whether the trial court erred when it ordered that a decree of
Anchetav.Ancheta
parenttohisorherchildorchildren. absolute nullity of marriage shall only be issued after liquidation,
The records show that
for
the petitioner’s failure to file an answer to partition, and distribution of the parties' properties under Article
the complaint, the trial court granted the motion of the respondent 147oftheFamilyCode.
herein to
declare her
in
default. The
public prosecutor condoned the
acts of
the trial
court when he
interposed no objection to the motion YES. The
ruling
has
no
basis
because
Section
19(1)
of
the Rule does
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not apply
to cases governed under Articles 147 and 148 of the Family
⭐ART 53. Either of the former spouses may marry again after chattel mortgages are of a purely
ministerial character; and
no
Code. Article 50 of the Family Code does not apply to marriages compliance with the requirements of the immediately provision of
law
can
be
cited which
confers upon him any judicial or
which are declared void ab initio under Article 36, which should preceding Article;
otherwise, the
subsequent
marriage
shall
be quasi-judicial power to determine the nature of any document of
be declared void
without waiting
for the liquidation of the properties nullandvoid. whichregistrationissoughtasachattelmortgage.
of the parties. Thus, what governs the liquidation of properties Statusofchildrenofdissolvedmarriages
owned in common by petitioner and respondent are the rules on DavaoSawmillCo.v.Castillo
co-ownership. ART 54. Children conceived or born before the judgment of
annulment or
absolute
nullity
of
the
marriage under Article 36 While not conclusive, the characterization of the machineries as
has become final and executory shall be considered chattels by the appellant is indicative of intention and impresses
Under Article 496 of the Civil Code, "partition may be made by
legitimate. Children conceived or born of the subsequent uponthepropertythecharacterdeterminedbytheparties.
agreement between the
parties or
by
judicial proceedings. x x x." It is
NOT
necessary to
liquidate the properties of the spouses in the marriageunderArticle53shalllikewisebel egitimate.
MakatiLeasingv.WeareverTextileMills
sameproceedingfordeclarationofnullityofmarriage.
3. Property As stated in Standard Oil Co. of New York v. Jaramillo, it is
SalasJr.v.Aguila2013 a. Concept undeniable that the parties to a contract may by agreement treat
as
personal property that which by nature would be real property, as
Under Art 147 of the Family Code, property acquired during the
Immovables long as n
o interest of third parties would be prejudiced
marriage is
prima
facie presumed to
have
been
obtained through the
couple’sjointeffortsandgovernedbytherulesonco-ownership. thereby.
Whatisimmovableproperty?
In the present case,
Salas
did not
rebut this
presumption. Where the MindanaoBusCompanyv.CityAssessor
ART415.Thefollowingarei mmovablep
roperty:xxxx
ground for
nullity
of
marriage was psychological incapacity, we held So that movable equipment to be immobilized in contemplation of
that the properties acquired during the
union of
the parties, as found ClassificationofRealproperties: the law must first be "essential and principal elements" of an
byboththeRTCandtheCA,wouldbegovernedbyc o-ownership. industry or works without which such industry or
works
would be
1. Realpropertybynature(treesandplants);
"unable to function or carry on the industrial purpose for which it
2. Byi ncorporation(building); wasestablished."
PartitionandPresumptiveLegitime
3. Byd
estinationo
rpurpose( machinery);
ART 51. In said partition, the value of the presumptive legitimes Aside from the element of
essentiality,
Art
415(5) also requires that
of all common children, computed as of the date of the final 4. Bya
nalogy(rightofusufruct). the industry or works be carried on in a building or on a piece of land.
judgment of
the
trial
court,
shall
be delivered in cash, property LeungYeev.StrongMachinery In the case at bar, the equipments in question are destined only to
or sound securities, unless the parties, by mutual agreement repair or service the transportation business. Said equipments may
judiciallyapproved,hadalreadyprovidedforsuchmatters. The building of strong materials in which the rice-cleaning not,therefore,bedeemedrealproperty.
machinery was installed by the "Compania Agricola Filipina" was
The children or their guardian or the trustee of their real property, and the mere fact that the parties seem to have dealt CaltexPhilippinesInc.v.CBAA
propertymayaskfortheenforcementofthejudgment.xxxx with
it
separate and
apart from the land on which it stood in no wise
This case is about the realty tax on machinery and equipment
Requirement of
registration
of
the
decree
of
annulment
or
nullity changeditscharacterasrealproperty.
installed by Caltex in its gas stations located on leased land. Said
ofmarriage—Effectsofnon-compliance equipment and machinery, as appurtenances to the gas station
Punsalan,Jr.v.Lacsamana
ART 52. The judgment of annulment or of absolute nullity of building or
shed owned by Caltex and which fixtures are necessary to
the
marriage, the
partition and
distribution of the properties of The warehouse claimed to
be owned by petitioner is an immovable the operation of the gas station are taxable improvements and
the spouses and the delivery of the children's presumptive or real property
as
provided in
Article
415(1).
Buildings are
always machinery within the meaning of the Assessment Law and the
Real
legitimes shall be r
ecorded in the appropriate civil
registry immovableundertheCode. PropertyTaxCode.
and registries
of
property; otherwise, the same shall
not affect
StandardOilCo.v.Jaramillo Serg’sProductsv.PCILeasing
thirdpersons.
The
duties
of
a register of deeds in respect to the registration of After agreeing to a contract stipulating that a real or immovable
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property be considered as personal or movable, a party is
Movables
estopped from subsequently claiming otherwise. Hence, such The act of
conducting ISR operations by
illegally connecting various
property is a proper subject of a writ of replevin obtained
by ART 416. The following things are deemed to be personal equipment or apparatus to PLDT's
telephone system, through which
theothercontractingparty. property: petitioner is
able to resell or re-route international long distance calls
using PLDT's facilities constitutes all three acts
of
subtraction. The
Tumaladv.Vicencio 1) Those movables susceptible of appropriation business of providing telecommunication or
telephone service
whicharenotincludedintheprecedingarticle; is likewise personal property which can be the object of theft under
Although there is
no
specific statement referring to the subject house Article308oftheRPC.
as
personal property, yet
by
ceding, selling or transferring a property 2) Real property which by any special provision of law is
by way of chattel mortgage defendants-appellants could only have consideredaspersonality;
HPSSoftwareandCommunicationv.PLDT2012
meant to
convey the
house as chattel,
or at least, intended to treat the
3) Forces
of
nature
which
are
brought
under
control by The business of providing telecommunication or telephone service
same as such, so that they should not now be allowed to make an science;and
inconsistentstandbyclaimingotherwise. is personal property which
can
be
the
object
of
theft under Article
4) In
general, all
things
which can be transported from 308 of the RPC. Business
may be
appropriated under Section 2 of
Agov.CA place
to place without impairment of the real property theBulkSalesLaw,hence,couldbetheobjectoftheft.
towhichtheyarefixed.
By the installation of
the
sawmill machineries in
the building
of
the Chiangv.PLDT2017
Golden Pacific Sawmill, Inc. for use in the sawing of logs carried on in ART 417. The following are also considered as personal
said building, the same became a necessary and permanent part of the property: Toll bypass operations could not
have
been
accomplished without
building or real estate on which the same was constructed, the installation of telecommunications equipment to the PLDT
1) Obligations and actions which have for
their
object telephone lines. Thus, petitioners may also be held liable for
converting the said machineries and equipment into real
movablesordemandablesums;and violation of PD No. 401, which penalizes the unauthorized
estate.
2) Shares of stock of agricultural, commercial and installation of any telephone connection without previous
authority
BenguetCorp.v.CBAA industrialentities,althoughtheymayhaverealestate. fromPLDT.
Here, the subject dam falls within the definition of an a. GeneralTestofMovableCharacter FortBonifacioDevelopmentCorp.v.Fong2015
"improvement" because it is permanent in character and it 1. If the property is capable of being carried from place to
enhances both
the value and utility of petitioner's mine. Moreover, An assignment of c redit for a consideration and covering a
place(testbydescription);
the immovable nature of the dam defines its character as real demandable sum of money is considered as a sale of personal
property under Article 415 of the Civil Code and thus makes it 2. If
such change in
location can be made without injuring the property.
taxableu nderSection38oftheRealPropertyTaxCode. real property to which it
may
in
the
meantime be attached
(testbydescription);and Laudv.People2014
StarTwo,Inc.v.PaperCityCorp.2013 3. If
the object
is not one of those enumerated in Art 415 (test “Personal property” refers to the thing’s mobility, and not to its
byexclusion) capacity to
be
owned or alienated by a particular person. Considering
The real estate mortgages which specifically included the
machineries and equipments were subsequent to the chattel b. Consumables and Non-Consumables. —A
ccording to the that human remains can generally be transported from place to
mortgages dated 26 August 1992, 20 November 1992, 7 June 1994 natureofthemovableproperty. place, and considering further that they qualify under the phrase
and 24 January 1995. Without doubt, the real estate mortgages c. Fungible and Non-Fungible.
— According
to the intention of “subject of the offense” given that they prove the crime’s corpus
supersededt heearlierchattelmortgages. theparties. delicti,itfollowsthattheymaybevalidsubjectsofasearchwarrant.
The real estate mortgage over the machineries and equipments is ⭐Laurelv.Abrogar b. Ownership
even in full accord with the classification of such properties as This Court, in US v. Genato, US v. Carlos, and US
v.
Tambunting,
immovablep roperty. consistently ruled that any
personal property,
tangible or
intangible, ART427.Ownershipmaybeexercisedoverthingsorrights.
corporeal or incorporeal, c apable of appropriation can be the DefinitionofOwnership
objectoftheft.
Ownership is the independent and general right of a person to
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control a thing particularly in his possession, enjoyment,
case, Sheriff Alvarez was not an aggressor, as indeed he could not The Complaint does not allege facts showing compliance with the
disposition, and recovery, subject to no restrictions except those
have been one, because as an officer or agent of the court, he was prescribed one year period to file an action for
unlawful detainer.
It
imposed by the state or private persons, without prejudice to the
simply carrying out his official duty to implement the writ of does not
state
the
material dates that would have established that it
provisionsofthelaw.
execution. was filed within one year from the date of Manantan's last
1.Bundleofrights demand upon respondent to vacate the disputed portion of land.
ActsinaStateofNecessity Such allegations are jurisdictional and crucial, because if the
a) Righttoe njoy; complaint was filed beyond the prescribed one year period, then it
ART 432. The owner of a thing has no right to prohibit the cannot properly qualify
as an action for unlawful detainer over which
i) ToPossess;j uspossidendi the MTCC can exercise jurisdiction. It
may be an
accion
publiciana
interferenceofanotherwiththesame,if
ii) ToUse;j usutendi oraccionreivindicatoria.
1. the interference is necessary to avert an imminent
iii) TotheFruits.j usfruendi dangerand Here, the respondent was already in possession of the disputed
b) Righttod
ispose;jusdisponendi 2. the threatened damage, compared to the damage portion at the time Manantan bought the subject property from the
arising to the owner from the interference, is much Bayot family, and it was only after the conduct of a relocation
i) Toconsumeordestroyorabuse;j usabutendi greater. survey, which supposedly showed that respondent was encroaching
ii) Toencumberoralienate. on the subject property, did Manantan begin asserting her claim of
The owner
may
demand from the person benefited indemnity ownership over the portion occupied and used by respondent. Clearly,
c) Righttor ecovero
rvindicate;jusvindicandi forthedamagetohim. respondent's possession of the disputed portion was not
pursuant to any contract, express or implied, with Manantan,
ART 430. Every owner may enclose or fence his land or 2.ActionstoRecover
and, resultantly, respondent's right of possession over the disputed
tenements by means of
walls,
ditches,
live
or
dead
hedges,
or
portionisnotsubjecttoexpirationortermination.
by any other means without detriment to servitudes ART 433. Actual possession under claim of ownership raises
constitutedthereon. disputable presumption of ownership. The true owner must Casilangv.Casilang-Dizon2013
Principleof“Self-Help” resorttojudicialprocessfortherecoveryoftheproperty.
Inferior courts are empowered to
rule
on the
question of
ownership
ART 429. The owner or lawful possessor of a thing has the ofPersonalProperty raised by the defendant in an
ejectment suit, but
only
to
resolve the
right to exclude any person from the enjoyment
and
disposal issue
of
possession; its
determination is
not
conclusive on the issue
a. Replevin — An action or provisional remedy where the
thereof. ofownership.
complainant prays for the recovery of the possession of
For
this
purpose, he
may use
such force as may be reasonably personalproperty.
Quijanov.Amante2014
necessary to
repel
or
prevent
an
actual or threatened unlawful ofRealProperty
physicalinvasionorusurpationofhisproperty. Where the plaintiff does not prove her alleged tolerance of the
b. Forcible Entry and Unlawful Detainer. — Accion defendant's occupation, the possession is deemed illegal from the
GermanManagement&Services,Inc.v.CA beginning. Hence, the action for unlawful detainer is an improper
interdictal comprises two distinct causes of action, namely,
The doctrine of self-help can only be exercised at the time of forcible entry (detentacion) and unlawful detainer remedy. But the action cannot be considered as one for forcible entry
actualorthreateneddispossessionwhichisabsentherein. (desahuico). without any allegation in the complaint that the entry of the defendant
wasbymeansofforce,intimidation,threats,strategyorstealth.
When possession
has
already been
lost,
the
owner must resort forcible
In entry, one is deprived of physical possession of
tojudicialprocessfortherecoveryofproperty. real property by
means of
force, intimidation, strategy, threats,
or stealth whereas in u nlawful detainer, one illegally c. Accion Publiciana. — is the plenary action to recover the
withholds possession after the expiration or termination of his right of possession when dispossession has lasted for more
Tan-Yapv.Patrick2019 than one year. It is an ordinary civil proceeding to determine the
right to hold possession under any contract, express or
The doctrine of "self-help" applies only when the person against betterrightofpossessionofrealtyindependentlyoftitle.
implied.
whom the owner has the right to use force
(in
order
to
exclude the
former from the latter's property) is really an "aggressor." In this EstateofManantanv.Somera d. Accion Reivindicatoria. — is an action to recover
ownership, as well as possession in an ordinary civil
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proceeding.
BaguioTownsiteReservation.ItistheSolGenwhoistheproperparty. An ordinance that provides that at least 6% of the total area of the
IglesianiCristov.Ponferrada memorial park cemetery shall be set aside for charity burial of
Javelosav.Tapus2018 deceased persons who are
paupers is being challenged. This is
not a
Since respondents were in actual or physical possession of
the
mere police regulation but an outright confiscation. It deprives a
property when they filed their complaint against petitioner, the The petitioner failed to adduce evidence to establish that the
person of
his
private property without due
process of law, nay, even
prescriptive period for the reinvindicatory action had not even respondents' occupation of
the subject
property was actually effected
withoutcompensation.
commenced to
run, even if petitioner was able to secure TCT over the through her tolerance or permission. Unfortunately, the petitioner
property in 1984. The reason for this is that one who is
in actual failed
to
prove how
and when the respondents entered the subject lot,
OSGv.AyalaLand
possession of a piece of land claiming to be the
owner thereof as
well
as
how and
when the permission to
occupy was
purportedly
may wait until his possession is disturbed or his title is given. The absence of such essential details is especially troubling The total prohibition against the collection of parking fees from
attacked before taking steps to vindicate his right, the reason for considering that the respondents have been occupying the subject persons who use the mall parking facilities has no basis in the
the rule being, that his undisturbed possession gives him a propertyformorethan70years. National Building Code or its IRR.
The
State
also
cannot impose the
continuing right to
seek the aid
of
a court of equity to ascertain and same prohibition by generally invoking police power, since said
determine the nature of the adverse claim of a third party and its e. Injunction. — A person deprived of his possession of property prohibition amounts to a taking of respondents' property without
effect on
his own title, which right can be claimed only by one who is is ordinarily not allowed to avail himself of the remedy of paymentofjustcompensation.
inpossession. injunction.
MMDAv.Trackworks
Suarezv.Emboy2014 In civil cases, however, the remedy of writ of preliminary MMDA's powers were limited to the formulation, coordination,
As
a general
rule, a pending
civil
action involving ownership of the mandatory injunction may be
availed
of
in
the
original case
of regulation, implementation, preparation, management, monitoring,
same property does not justify the suspension of ejectment forcible entry; and during appeal, in the case of unlawful setting
of policies, installing a system, and administration. Nothing in
proceedings. Only in rare instances is suspension allowed to await detainer. RA7924grantedMMDApolicepower,letalonelegislativepower.
the outcome of the pending civil action. As an exception to the f. Writ of Possession. — Used in connection with the Land
general rule, the respondents’ petition for nullification of partition Registration Law, is an order directing the sheriff to place a EminentDomain
canabateCarmencita’ssuitforunlawfuldetainer. successful registrant under the Torrens system in possession of
thepropertycoveredbyadecreeoftheCourt. ART 435. No person shall be deprived of his property except by
Indisputably, the execution of the MCTC Decision would have resulted
RequisitesinanActiontoRecover competent authority and for public use and always upon
in
the
demolition of
the
house subject of
the ejectment suit; thus, by
paymentofjustcompensation.
parity of reasoning, considerations of
equity require the suspension
of the ejectment proceedings. Needlessly, the litigants as
well as
the
ART 434. In an action to recover, the property must be
MCIAAv.Lozada,s upra2010EnBanc
identified, and the plaintiff
must
rely
on
the
strength
of
his
courts will
be
wasting much time and effort by proceeding at a stage
titleandnotontheweaknessofthedefendant'sclaim. We now expressly hold that the taking of private property,
wherein the outcome is at best temporary, but the result of
consequent to the Government's exercise of its power of eminent
enforcementispermanent,unjustandprobablyirreparable. 3.Limitationsofownership domain, is
ALWAYS subject to the condition that the property be
devoted to the specific public purpose for which it
was
taken.
Gabrielv.Crisologo2014 ImposedbytheState Corollarily, if
this
particular purpose or intent
is
not
initiated or
not
The objective of the plaintiffs in accion publiciana is to recover PolicePower at all pursued, and is peremptorily abandoned, then the former
possession ONLY, not ownership. When parties, however, raise the owners, if they so desire, may seek the reversion of the property,
issue of ownership, the court
may pass upon the
issue to
determine
ART 436. When any property is condemned or seized by subject to the return of
the
amount of just compensation received. In
who between the parties has the right to possess the
property. This competent authority in the interest of health, safety or such a case, the exercise of the power of eminent domain has become
adjudication, nonetheless, is not a final and binding security, the owner thereof shall not be entitled to improperforlackoftherequiredfactualjustification.
compensation, unless
he
can
show
that
such condemnation or
determinationoftheissueofownership.
seizureisunjustified. Republicv.HeirsofBorbon2015
Petitioners, as private individuals, are not the proper parties to CityGovernmentofQuezonCityv.Ericta The
expropriator who has taken possession of the property subject of
question the status of the respondent’s registered titles within the
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ImposedByTheOwner d) Testamentarydisposition,ordonationintervivos;
expropriation is obliged to pay reasonable compensation to the
landowner for the period of such possession although the E.g. when the owner leases his
property
to
another,
said
owner
in e) Fortuitouseventorchance—commixtionorconfusion;
proceedings had been discontinued on the ground that the public themeantimecannotphysicallyoccupythepremises. f) Occupancy.
purposefortheexpropriationhadmeanwhileceased.
c. Co-ownership Gapacanv.Omipet
Imposedbylaw A property owner whose property rights were being disturbed may
ART 484. There is co-ownership whenever the ownership of an
undividedthingorrightbelongstodifferentpersons. ask a competent court for a proper determination of the
respective
ART 431. The owner of a thing cannot make use thereof in such rightsoftheparty-claimants.
mannerastoinjuretherightsofathirdperson. Exists whenever an undivided thing or right belongs to
differentpersons. As the two (2) surviving heirs of
Paicat Gapacan, neither Maria
nor
Erminov.GoldenVillageHomeowners,2018
Antonio can
claim absolute ownership over the entire property to the
Requisites
The bulldozing and construction works at the Hilltop City prejudice of the other, for each,
in
legal
contemplation, is
entitled to
Subdivision, made Alco Homes and Golden Village's obligation, as a. Pluralityofowners; only one-half (1/2) pro-indiviso share of his or her father's estate.
lower estates, more burdensome than what the law contemplated. Prior to
partition, Maria and Antonio, and upon the latter's death, the
b. Objectisundivided;
Lower estates are only obliged to receive water naturally petitioners, hold the disputed property in their capacity as
flowing from higher estates and such should be
free from any c. Each co-owner’s right is limited
only
to
his
ideal
share
of
the co-owners.
human intervention. In the
instant case, what flowed from Hilltop physicalvalue.
City Subdivision was not water that naturally flowed from a higher 3.Rightsofco-owners
estate. Alco
Homes and Golden Village are
not
anymore obligated to 1.Characteristics
receivesuchwatersandearthcomingfromHilltopCitySubdivision. ShareofCo-OwnersinBenefitsandCharges
a) Thereareatleasttwoco-owners;
Therefore, E.B. Villarosa is responsible for the damage suffered by b) Co-owner of
the
whole
and at
the
same time absolute owner of ART 485. The share of the co-owners, in the benefits as well as
Spouses Ermino. E.B. Villarosa should have provided for the his own ideal (abstract, pro indiviso, fractional, aliquot) but in the charges, shall be proportional to their respective
necessary measures such as
retaining
walls and drainage so
that the definiteshare. interests. Any
stipulation in a contract to the contrary shall be
large volume of water emanating from it would not unduly cause void.
inconvenience,ifnotinjury,tothelowerestates. c) There is a single object which is not materially divided and
over which and his ideal share of the whole, each co-owner The portions belonging to the
co-owners
in
the
co-ownership
exercisesownership,togetherwiththeotherco-owners; shallbepresumedequal,unlessthecontraryisproved.
ImposedByTheGrantor
d) Thereisnomutualrepresentationbytheco-owners; RenunciationbyaCo-ownerofhisShareintheCo-ownership
E.g. the donor may prohibit the donees from partitioning the
propertyforaperiodnotexceeding20years. e) Itexistsforthecommonenjoymentoftheco-owners; Is
in
reality
a case of dacion en pago. It is not a unilateral act which
f) Ithasnodistinctlegalpersonality;and will extinguish an existing liability of co-owner without formal
RomanCatholicArchbishopofManilav.CA
acceptancebytheothers.
The deed of donation involved herein expressly provides for g) It is governed by the contract of the parties, otherwise, by
automatic reversion of the property donated in case of
violation of special legal provisions, and in default, by Title III on It
must
be
a free
act.
He
who
has
not
renounced may be compelled
the condition therein,
hence a judicial declaration revoking the same Co-ownership. byanactionincourttopayhisshareinthenecessaryexpenses.
is not necessary. The cause of action herein is
based on
the
alleged 2.Sources RightofanyCo-OwnertoRecover,LimitationofRightofCo-Owner
breach by petitioners of the resolutory condition in the deed of
donation that the property donated should not be sold within a a) Contract; ART 486. Each co-owner may use the thing owned in common
period of one
hundred (100)
years from the
date of
execution of
the xxxx
deed of donation. Said condition, in our opinion, constitutes an b) Law — easement of party walls, absolute community of
undue restriction on the rights arising from ownership of propertybetweenspouses; ART 487. Any one of the co-owners may bring an action in
petitionersandis,therefore,c ontrarytopublicpolicy. c) Succession; ejectment.
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Torres,Jr.v.Lapinid2014 DefinitionofAlteration
In
this
case, Jesus can validly alienate his co-owned property in favor Milagros de Guzman is not an indispensable party in the action for 1. Involves change
of
the
thing
from the state or essence in which
of Lapinid, free from any opposition from the
co-owners. From the therecoveryoftheallegedlyloanedmoneytothespousesCarandang. theothersbelieveitshouldremain;or
perfection of contract, Lapinid eventually became a co-owner
of
the
2. Withdrawal of the thing
from
the
use
to
which
they
wish
it
to
property. ExpensesforPreservation,UsefulExpenses
beintended;or
No individual can
claim title
to a definite or
concrete portion before ART 488. Each co-owner shall have a right to compel the other 3. Any other transformation which prejudices the condition or
partition of co-owned property. Each co-owner only possesses a right co-owners to contribute to the expenses of preservation
of substanceofthethingoritsenjoymentbyothers.
to
sell
or alienate his
ideal share after
partition. However, in
case he thethingorrightownedincommonandtothetaxes.xxxx
disposes his share before partition, such disposition does not make 4. Any act
of
ownership
— alienation,
donation,
lease,
mortgage,
the sale
or alienation null
and void. What will be affected on the sale ART 489. Repairs for preservation may be made at the will of pledge.
isonlyhisproportionateshare,subjecttotheresultsofthepartition. one of the co-owners, but he must, if
practicable,
first
notify NecessityofConsent,Form
his co-owners of the necessity for such repairs. Expenses to
Adlawanv.Adlawan improve or embellish the thing shall be decided upon by a 1. Unanimousconsent;
Where the suit is for the benefit of the plaintiff alone who majorityasdeterminedinarticle492. 2. Maybeexpresslyorimpliedlygiven.
claims to be the sole owner and entitled to the possession of RenunciationbyaCo-OwnerofhisshareintheCo-Ownership Liability.
— If the co-owner makes the alteration without the consent of
thelitigatedproperty,theactionshouldbed ismissed.
ART 488. xxxx Any one of the latter may exempt himself from others,heactsinbadfaithandmust:
Here, petitioner brought the suit for unlawful detainer in his name this obligation by renouncing so much of his undivided 1. Losewhathehasspent;
alone and
for his own benefit to the exclusion of the heirs of Graciana interest as
may
be
equivalent to
his
share of
the expenses
and
as
he even executed an affidavit of self-adjudication over the disputed 2. Beobligedtodemolishtheimprovementsdone,and
taxes. No such waiver shall be made if
it
is
prejudicial to
property. It is
clear
therefore
that petitioner
cannot validly maintain theco-ownership. 3. Be liable to pay for losses and damages that may have been
the instant action considering that he does not recognize the suffered.
co-ownership. AlterationofaPropertyunderCo-Ownership
ActsofAdministrationandBetterEnjoyment
ART 491. None of the co-owners shall, without the consent of
Resuenav.CA the others, make alterations in the
thing
owned
in
common, 1. Contemplates
of acts or decisions for the common benefit of all
A co-owner may bring an
action
to
exercise
and protect the
rights of eventhoughbenefitsforallwouldresulttherefrom. theco-ownersandnotforthebenefitofonlyoneorsome.
all. When
the
action
is
brought by one co-owner for the benefit of all, However, if the withholding
of
the
consent by
one
or
more
of 2. Merelytransitory,whilealterationismoreorlesspermanent.
a favorable decision will benefit them; but an adverse decision the co-owners is clearly prejudicial to the common interest, the
cannotprejudicetheirrights. Examples
courtsmayafforda dequaterelief.
1. Unregisteredleaseofoneyearorless;
Carandangv.DeGuzman ART 492. For the administration and better enjoyment of the
thing owned in common, the resolutions of majority
the o f 2. Legalfeestopreserveownershipandpossessionofproperty;
Milagros de
Guzman, being presumed to
be a co-owner of the credits
allegedly extended to the spouses Carandang, seems to
be either
an theco-ownersshallbebinding. 3. Paymentmadeintheordinarycourseofmanagement.
indispensable or a necessary party. Taken with the presumption of There shall be no majority unless the resolution is approved by MajorityRule
the
conjugal nature
of
the
funds used
to
finance the four checks used the
co-owners who
represent the controlling interest in the
to
pay for petitioners' stock subscriptions, and with the presumption objectoftheco-ownership. 1. For the
administration and better enjoyment of the thing owned
that the credits themselves are part of conjugal funds, Article 1811 in common, the resolutions of the majority of the co-owners
makes Quirino and Milagros de Guzman co-owners of the alleged Should there be no majority, or should the resolution of the shallbebinding.
credit. Being co-owners of the alleged credit, Quirino and Milagros de majority be seriously prejudicial to those interested in the
property owned in common, the court, at the instance of an 2. There shall be no majority unless the resolution is approved by
Guzmanmayseparatelybringanactionfortherecoverythereof.
interested party, shall order such measures as it may deem the co-owners who represent the controlling interest in the
proper,includingthea ppointmentofanadministrator. objectoftheco-ownership.
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⭐Cruzv.Catapangonentrybystrategy Sanchezv.CA
lapse of one year from the date of the decree of registration, the
A
co-owner cannot give
valid
consent to
another
to
build a house on In co-ownership, the relationship of such co-owner to the other attendance of fraud in
its
issuance created an
implied trust in
the co-owned property, which is an act tantamount to devoting the co-ownersisf iduciaryincharacterandattribute. favor of
petitioners and
gave them the right
to
seek reconveyance of
property to
his or
her
exclusive use. Giving consent to a third person theparcelwrongfullyobtainedbytheformer.
to construct a house on the co-owned property will injure the Thus, the legal effect of an agreement to preserve the properties
in
interest of
the co-ownership and prevent other co-owners from using co-ownership is to create an express trust among the heirs as EffectofRedemptionofCo-OwnedPropertybyoneCo-Owner
thepropertyinaccordancewiththeirrights. co-owners of the properties. Co-ownership is a form of trust and
everyco-ownerisatrusteefortheothers. Adillev.CA
The construction of
a house on the
co-owned property is an act
May a co-owner
acquire
exclusive
ownership
over
the
property
held
of dominion. Therefore, it
is
an
alteration falling
under Article 491. Nufablev.Nufable incommon?
The consent given by
Norma Maligaya in
the absence of
the
consent
of
petitioner and
Luz Cruz did not vest upon respondent any right to Well-entrenched is the rule that a co-owner
can
only
alienate
his
proindivisoshareintheco-ownedproperty. NO. The right of repurchase may be exercised by a co-owner with
enter into
the
co-owned property. Her entry into the property still respect to his share alone. Necessary expenses may be
incurred by
falls under the classification “through strategy or stealth.” As one
co-owner, subject to
his
right
to
collect
reimbursement from the
Therefore, as regards the remaining ¾ pro indiviso share,
the
same
such,respondent’sactsconstituteforcibleentry. remaining co-owners. There is no doubt that redemption of
was held in trust for the party rightfully entitled thereto, who are the
privaterespondentsherein. propertyentailsanecessaryexpense.
⭐Arambulov.Nolasco2014onadequatereliefofArt491
Corollary to Article 494, Article 498 of the Civil Code states
that Prescription,
as a mode of terminating co-ownership, must have been
SaleorMortgageofCommonProperty
whenever the thing is essentially indivisible and the co-owners preceded by repudiation of the co-ownership. The act of
cannot agree that it be allotted to
one
of
them who shall
indemnify Pamplonav.Moreto repudiation,inturn,issubjecttocertainconditions:
the others, it
shall
be sold and
its
proceeds accordingly distributed.
The title may be pro-indiviso or inchoate but the moment the 1) aco-ownerrepudiatestheco-ownership;
Thisisresortedto
co-owner as
vendor pointed out its
location and even indicated
a) when the
right
to
partition
the property is invoked by any of 2) such an act of repudiation is clearly made known to the
the boundaries over which the fences were to be erected
the co-owners but because of the nature of the
property,
it otherco-owners;
without objection, protest or complaint by the other co-owners,
cannot be subdivided or its subdivision would on
the contrary they acquiesced and tolerated such alienation, 3) theevidencethereonisc learandconclusive;and
prejudicetheinterestsoftheco-owners,and occupation and possession, We rule that a factual partition or
termination of
the co-ownership, although partial, was created, 4) he has been in open, c ontinuous, exclusive, and
b) the
co-owners are not in agreement as to who among them notorious possession of the property for the period
shall
be
allotted
or assigned the entire property upon proper and barred not only the vendor, Flaviano Moreto, but
also
his
heirs,
the private respondents herein from asserting as against the requiredbylaw.
reimbursementoftheco-owners.
vendees-petitioners any right
or title in derogation of the deed of sale
Here,
the
right
of
the
respondents
commenced
from
the time they
This
is
the
result
obviously
aimed
at
by
petitioners
at
the outset. As executedbysaidvendorFlavianoMoreto.
actuallydiscoveredthepetitioner'sactofdefraudation.
alreadyshown,thisc annotbedonewhiletheco-ownershipexists.
SpsDelCampov.CA
Aguilarv.Aguilar
ExtentofCo-Owner’sRight Where the transferees of
an
undivided portion of
the
land allowed a
The following are the requisites for the exercise of legal
co-owner of
the property to occupy a definite portion thereof and had
Paulmitanv.CA redemption:
not disturbed the same for a period too long to be ignored, the
Although petitioner Fanesa did
not acquire ownership over the entire possessor is
in
a better condition or right than said transferees. Such 1) Theremustbeaco-ownership;
lot by virtue of the redemption she made, nevertheless, she did undisturbed possession had the effect of a partial partition of
2) oneoftheco-ownerssoldhisrighttoas tranger;
acquire the right to be reimbursed for half of the
redemption
price the co-owned property which entitles the possessor to the definite
she paid to the Provincial Government of Negros Occidental on behalf portionwhichheoccupies. 3) the sale was made before the partition of the co-owned
of her co-owners. Until reimbursed, Fanesa holds a lien upon the property;
subjectpropertyfortheamountdueher. Although Regalado's certificate of
title
became
indefeasible
after
the
4) the right of redemption must be exercised by one or
more
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Neither shall there be any partition when it is prohibited by 2. Extrajudicialpartition;
co-owners within a period of thirty days to be counted from
law.
the time that he or they were notified in writing by the 3. Whenbyprescription,oneco-ownerhasacquiredthewhole
vendeeorbytheco-ownervendor;and No prescription shall run in favor of a co-owner or co-heir propertybyadversepossession;
against his co-owners or co-heirs so long as he expressly or
5) thevendeemustbereimbursedforthepriceofthesale. 4. Whenastrangeracquiresbyprescriptionthethingownedin
impliedlyrecognizestheco-ownership.
common;
We have held that after a property has been subdivided and Exceptions
distributed among the co-owners, the community has 5. Mergerinoneco-owner;
1. When co-owners have
agreed
to
keep
the
thing undivided for a
terminated and there is no reason to sustain any right of 6. Lossordestruction;
certainperiodoftimenotexceedingt enyears;
pre-emptionorredemption.
2. Prohibited by the donor or testator for a certain period not 7. Expropriation.
SpsPascualv.SpsBallesteros2012 exceedingt wentyyears; Aguilarv.CA
The 30-day period
given to
the
respondents within which to exercise 3. Prohibitedbylaw;
When petitioner filed an action to compel the sale of the
their right
of
redemption has not commenced in view of the absence 4. Partitionwouldrenderthethingunserviceable(Art495);and property and the trial court
granted
the
petition
and ordered
of a written notice. Verily, despite the respondents’ actual 5. Co-owner has possessed the property as
exclusive
owner
and the ejectment of respondent, the co-ownership was deemed
knowledge of the sale to the respondents, a written notice is still foraperiodsufficienttoacquireitbyprescription terminateda ndtherighttoenjoythepossessionjointlyalsoceased.
mandatoryandindispensable.
Prescription
Quintosv.Nicolas2014
Reyesv.Concepcion Generally,
imprescriptible unless properly repudiated. In such case,
actionprescribest en(10)yearsafterrepudiation. There can
still
be res judicata in partition cases concerning the same
In this jurisdiction, the legal
provisions on
co-ownership do
not
parties and the
same subject matter once the respective shares of the
grant to any of the owners of a property held in common a WhenRighttoDemandPartitionNotAvailable co-owners have been determined with
finality by
a competent
court
pre-emptive right to purchase the pro-indiviso shares of his
⭐ART 498. Whenever the thing is essentially indivisible with jurisdiction or if
the court determines that partition is improper
co-owners.
forco-ownershipdoesnotornolongerexists.
and the co-owners cannot agree that it be allotted to one of
Here, no sale of the latter's pro-indiviso shares to
a third party had them who shall indemnify the others, it shall be
sold
and its
yet been made. Thus, Article 1620 finds
no application to the case at ⭐Figuracionv.Figuracion-Gerilla2013
proceedsdistributed.
bar. Neither do petitioners have the
legal
right to
enjoin respondents The
first stage
in
an action for partition is the settlement of the
from alienating their pro-indiviso shares to
a third party. The rights EffectsofPartition
issue of ownership. Such an action will not lie if the claimant has no
of
a co-owner of a property are clearly specified in Article 493. None 1. Mutualaccountingforbenefitsreceived; rightfulinterestinthesubjectproperty.
ofthelegalexceptionsunderArticle494appliestothecaseatbar. 2. Mutualreimbursementforexpenses;
When Hilaria and Felipa registered the lot in their names to the
3. Indemnityfordamagesincaseofnegligenceorfraud; an implied trust was created by force of law
4.Termination exclusion of
Emilia,
4. Reciprocalwarrantyfor and the two of them were considered a trustee of the respondent’s
ART 494. No co-owner shall be obliged to remain in the a. Defectsoftitleoreviction; undivided share. As trustees, they cannot be permitted to
repudiate
co-ownership. Each co-owner may demand at any time the thetrustbyrelyingontheregistration.
b. Qualityorhiddendefects.
partition
of
the
thing owned in common, insofar as his share is
concerned. 5. Each former co-owner is deemed to have had exclusive ⭐Delimav.CA
possession of the part allotted to him for the entire period
Nevertheless, an agreement to keep the thing undivided for
a duringwhichtheco-possessionlasted. When a co-owner of the property in question executed a deed of
certain period
of
time, not exceeding ten (10) years, shall be partition and on the strength thereof obtained the cancellation of
6. Confersuponeach,theexclusivetitleoverhisrespectiveshare. the title
in
the name
of
their predecessor and the issuance of a new
valid.Thistermmaybeextendedbyanewagreement.
one wherein he
appears as
the new owner of the property, the statute
A
donor
or
testator
may
prohibit partition for a period which TerminationofCo-Ownership
of
limitations started
to
run for the
purposes of
the action
seeking a
shallnotexceedt wenty(20)years.
1. Judicialpartition;
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declaration of the existence of the co-ownership and of their
rights ART 445. Whatever is built, planted or sown on the land of b) to
oblige the
one
who built or planted to pay the price
another and
the improvements or repairs made thereon, belong oftheland,andtheonewhosowed,theproperrent.
thereunder. Since an action for reconveyance of land based on
implied or constructive trust prescribes after ten (10) years, it is totheowneroftheland,xxxx However, the
builder or planter cannot be
obliged to buy the
from the
date of
the
issuance of such title that the effective assertion BasicprinciplesofAccessionContinua land if
its
value
is
considerably more than that
of the building
ofadversetitleforpurposesofthestatuteoflimitationsiscounted. or trees. In such case, he shall pay reasonable rent, if the
a. Accessory follows the principal. To the owner of the
owner of
the
land does not choose to
appropriate the building
As the certificate of title was notice to the whole world of his principalmustbelongalsotheaccessions;
or trees after proper indemnity. The parties shall agree upon
exclusive title to the land, such rejection was binding on the b. The union or incorporation must, within certain exceptions, be the terms of the lease and in case of disagreement, the court
other heirs and started as against them the period of effected in such a manner that to separate the
principal
from shallfixthetermsthereof.
prescription. Hence, when petitioners filed their action for theaccessorywouldresultins ubstantialinjuryt oeither;
reconveyance and/or to
compel partition on February 29, 1968, such
c. He
who is
in
good
faith may be held responsible but he should
actionwasa lreadybarredbyprescription. notbepenalized; 1. Refers to a land whose ownership is claimed by at least two
parties,oneofwhomhasbuiltsomeworksthereon.
⭐Mariateguiv.CA d. Hewhoisinbadfaithmaybepenalized;
2. Applieswhenbuilder
e. No one should enrich himself unjustly at the expense of
Inasmuch as petitioners registered the properties in their
names in
another; a) acts in good faith believing himself to be the owner of the
fraud of their
co-heirs,
prescription can only
be
deemed to
have
commenced from
the
time
private
respondents discovered the f. Bad
faith
of
one
party
neutralizes
the
bad
faith
of
the
other
so land,oratleast,tohaveaclaimoftitle;or
petitioners’actofdefraudation. bothshouldbeconsideredingoodfaith. b) proceeded with the knowledge, tolerance, consent, or
LO OM permissionofowner.
d. RightofAccession
Rights Liabilities Rights Liabilities c) orinspecialcaseswherebuilder:
1.Righttohiddentreasure i) Built his house at the time he was still co-owner that
Paymentor overlappedthelandofanother(D elCampo);
ART 438. Hidden treasure belongs to the owner of the land, BothinGF removalif
ii) Builtwithconsentofowner(B
oyer-Roxas);
building,orotherpropertyonwhichitisfound. orBF Paysvalue not
ofmaterial injurious iii) Relied on consent of another they believed to be the
Nevertheless, when the discovery is made on the property of
Becomes landowner(S armientov.Agana);
another, or of the State or any of its subdivisions, and by ownerof
LOinGF; Norightof
chance, o ne-half thereof shall
be
allowed to
the finder. If the Damages iv) As son, built with knowledge and consent of his father
OMinBF material removal
finder is a trespasser, he shall not
be
entitled to
any share of (Javier);
thetreasure. Absolute
v) As children, built to lots owned by their parents who
If the things found be of interest to science or the arts, the LOinBF; Paysvalue rightof
invited them and fully consented to the improvements
State may acquire them at their just price, which shall be OMinGF +Damages removal+
Damages introduced(M acasaetv.SpsMacasaet)
dividedinconformitywiththerulestated.
3. Inapplicablewhereone’sinterestinthelandismerelythatof:
ART 439. By treasure is understood, for legal purposes, any Legend:LO = Landowner;
OM
= Owner of Material; GF = Good Faith; BF
hidden and unknown deposit of money, jewelry, or other a) Aholdersuchasatenantorlessee(Q
uevada,Mores);
precious objects, the lawful ownership of which does not =BadFaith
b) Anagent;or
appear. ⭐ART 448. The owner of the land on which anything has c) Ausufructuary(Macasaet)
2.RulesofAccession beenbuilt,sownorplantedingoodfaith,shallhavetheright
OptionGiventoLandowner
a) to appropriate as his own the works, sowing or
1) RightofAccessionwithrespecttoImmovableProperty planting, after
payment of
the
indemnity provided for a. To appropriate improvement upon payment of the required
inarticles546and548,or indemnity(Art.546,548,448)
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1. Article 546. Necessary expenses shall be refunded to
every actual possessor to remain in possession while he has not been ART 452. The builder, planter or sower in bad faith is entitled
possessor; but only
the
possessor
in
good faith
may retain the reimbursedforthenecessaryimprovements. to reimbursement for the necessary expenses of preservation of
thinguntilhehasbeenreimbursedtherefor. theland.
2. A
builder
in
GF
cannot
be
compelled
to
pay rentals during this
2. Useful expenses shall be refunded only to the possessor in good periodnorbedisturbedofhispossession.
faith with the same right of retention, the person who has 1. ConsequencesofBadFaith(Art.449and450)
3. Offsetting of expenses with the fruits of builder in GF
defeated him in
the
possession having
the option
of
refunding prohibited. a. Article 450 applies when landowner chooses not to
the amount of the expenses or of
paying the
increase in
value appropriate the improvements of the builder in BF. He
may
4. Appliesonlytoprivateland.
whichthethingmayhaveacquiredbyreasonthereof. electtorequirebuilderto:
EffectofAlienationbyOwnerofLandwithImprovements
3. Article 548.Expense
for
pure luxury or mere pleasure shall i. Removeatbuilder’sexpense;or
not be refunded to the possessor in good faith; but
he
may 1. A purchaser who buys land with improvements belonging to
ii. Paythepriceoflandorproperrentincaseofasower.
remove the ornaments with which he has embellished the another knowing such fact,
places himself
in
the
position
of
a
principal thing if it suffers no injury thereby, and if his landownerinBFandmustthereforepayfortheindemnity. b. Inbothinstances,landownerisentitledtod
amages.
successors in the possession do not prefer to refund the 2. If new owner paid for the improvements, the action may still be 2. RightsofBuilder/Planter/SowerinBadFaith(Art.452)
amountexpended. brought against him without prejudice to his right to recover a. Examplesofn ecessarye xpensesforpreservationofland
i. LiabilityofBuildertoAccountforFruitsReceived fromtheformerowner.
i. Defenseworktopreventerosion;
a) Whatever fruits
he
receives
during
period
of retention 3. Option transferred to purchaser if former owner fails to elect
ii. Litigation expenses in defense of land against
mustbedeductedfromindemnityduetohim; eitheroptions.
usurpers.
b) If Fruits > Indemnity, the excess shall be returned
to
iii. Realpropertytaxes.
thelandowner. ART 449. He who builds, plants or sows in bad faith on the
b. RightofRetention(Art.546),Righttoexpensesofproduction
c) If
building
is occupied by the builder in GF, landowner land of another, loses what is
built,
planted or
sown without
hasnorighttocollectrentduringperiodofretention. righttoindemnity. i. Only possessor in GF is entitled to retain the thing
untilheisfullyreimbursed.
b. To oblige the builder or planter to pay the price
of
the
land ART 450. The owner of the land on which anything has been
andthesower,topaytheproperrent built,plantedorsowninb adfaith 3. RightsofOwneroftheLand(Art.450-451)
i. Whenthisrightcannotbeexercised 1. maydemand a. To appropriate what has been built without obligation
to
pay
a. thedemolitionofthework,or any indemnity therefor except for necessary expenses for the
IfvalueofLAND>>BUILDING.
b. that the planting or
sowing
be
removed,
in
order preservationoftheland+damages;or
ii. Fixing of Price; Remedies of the Landowner if toreplacethingsintheirformercondition b. Toasktheremovalordemolition+damages;or
Builder/PlanterRefusestoPay
at the expense of the person who built, planted or c. To compel the builder or planter to pay the price of land
a) Forced lease is created wherein the court fixes the sowed;OR regardless if it is considerably higher than that of what was
termsoflease.( Deprav.Dumlao) 2. hemaycompel built,andthesower,topayrent+damages.
b) Sell
the
property at
public
auction
wherein
proceeds a. the
builder
or
planter
to
pay
the
price of the land,
Balucanagv.Francisco
areappliedfirsttotheland,thenimprovements. and
b. thesowertheproperrent. Stohner cannot be considered a builder in good faith. There is no
c) Haveimprovementsr emovedatbuilder’sexpense.
dispute that the relation between Balucanag and Stohner is that of
Builder's/Sower's/Planter'sRighttoRetainImprovement ART 451. In the cases of the two preceding articles, the lessorandlessee.
1. Right of Retention protects builders in good faith. It is to landowner is
entitled
to
damages
from
the
builder,
planter or
sower. The law applicable to the case at bar is Article 1678. This
article
guarantee full and prompt reimbursement as it allows the
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gives the lessor the option to appropriate the useful improvements them of their encroachment on her property. Article 448
has
been Neither did the promise of
the Padas that
they were
going to
donate
by
paying o ne-half of their value; and the lessee cannot compel the applied to improvements or portions of improvements built by the premises to petitioners convert them into builders in
good faith
lessor to appropriate the improvements and make reimbursement. mistakenbeliefonlandbelongingtotheadjoiningowner. for at the time the improvements were built on the premises, such
But he shall not cause any more damage upon the
property
than
is promise was not yet fulfilled, i.e., it was a mere expectancy of
necessary. In the event that petitioners elect to sell to respondents Go the subject ownership that may or may not be realized. As such, petitioners
portion of their lot, the price must be fixed at the prevailing cannot be said to be entitled to
the
value of
the improvements that
⭐Florezav.Evangelista marketvaluea tthetimeofpayment. theybuiltonthesaidlot.
Since petitioner cannot
be
classified as
a builder in good faith within CommunitiesCagayan,Inc.v.SpsNanol2012 e. Easement
the
purview of
Article
448, nor
as
a vendee a retro, who made useful
improvements during the lifetime of the pacto de retro, petitioner As a general
rule, Article 448 on builders in
good faith
does
not
ART 613. An EASEMENT
or servitude is an encumbrance
has no right
to reimbursement of the value
of the house which apply where there is a contractual relation between the
imposed upon an immovable for the benefit of another
he had erected on the residential lot of the EVANGELISTAS, parties, such as in the instant case. However, the parties failed to
immovablebelongingtoadifferentowner.
muchlesstoretentionofthepremisesuntilheisreimbursed. attach a copy of the Contract
to Sell.
As
such, we
are
constrained to
applyArticle448. The immovable in favor
of
which the easement is
established
The rights of
petitioner
are
more
akin to
those
of
a usufructuary is called the dominant estate; that which is
subject thereto,
who, under Article 579, may make on the property useful Vda.deRoxasv.OurLady’sFoundation2013 theservientestate.
improvementsbutwithn orighttobeindemnifiedtherefor.
Ballatan v. CA already specifies that in the event that the seller elects 1.Characteristics
to sell the lot, “the price must be fixed at the prevailing market
PNBv.DeJesus
value at the time of
payment.” More recently, Tuatis v.
Sps Escol a) Arealright;
Article 448 refers to
a piece
of
land whose ownership is
claimed illustrates that
the present or
current fair value of
the land is to
b) ImposableonlyonANOTHER’sproperty;
by two or more parties, one of whom has built some works (or be reckoned at the time that the landowner elected the choice,
sown or
planted something) and not
to
a case where the owner of andnotatthetimethatthepropertywaspurchased. c) Arealrightthatmaybealienated;
the land is the builder, sower, or planter who
then later loses d) It
is
a limitation
or
encumbrance on the servient estate for
ownership of the land by sale. In
fine,
petitioner is
not
in
a valid In
Sarmiento v.
Agana, we reckoned the valuation of the property at
positiontoinvoketheprovisionsofArticle448. the time that the real owner of the land asked the builder to vacate the another’sbenefit,thedominantestate
property encroached upon. Depra v. Dumlao likewise ordered the i) ItisessentialthattherebeaBENEFIT;
HeirsofSariliv.Lagrosa2014 courts of
origin to
compute the
current fair
price of the land in cases
ofencroachmentonrealproperties. ii) Itisnotessentialthatthebenefitbeexercised;
As for Sps. Sarili, they knew – or at the very least, should have known
iii) Notpresumed.
–
from the
very beginning that they were
dealing with
a person who Parillav.Pilar
possibly had no authority to sell the subject property considering the e) There is INHERENCE or INSEPARABILITY from
the
estate
palpable irregularity in the subject SPA’s
acknowledgment. It
cannot Petitioners, being dealers of Pilipinas Shell's petroleum products, towhichitbelongs(Art617);
be seriously doubted that
Sps. Sarili were
actually aware of a flaw or were allowed to
occupy the
property. Petitioners are thus considered
defect in their title or mode of acquisition and have consequently agents of Pilipinas Shell. As the law on lease has specific rules f) ItisINDIVISIBLE(Art618);
built the house on the subject property i n bad faith under legal concerning useful improvements introduced by a lessee on the g) ItisINTRANSMISSIBLE;
contemplation. property leased, it
is erroneous on the part of petitioners to urge
thisCourttoapplyArticle448,inrelationtoArticle546. h) ItisPERPETUAL.
Ballatan,et.al.v.CA
It
does
not
apply where
one's only
interest
is that of a lessee under a Dichoso,Jr.v.Marcos2011
Go built his house in the belief that it was entirely within the rental
contract;
otherwise, it
would always be in the power of the
An easement involves an
abnormal restriction
on the property
parameters of his father's land. In short, respondents Go had no tenantto"improve"hislandlordoutofhisproperty.
rights of the servient owner and is regarded as a charge or
knowledge that
they
encroached on petitioners' lot. They are deemed
encumbrance on the
servient estate.
It
is
incumbent
upon the
owner
builders in good faith until the time petitioner Ballatan informed Kilariov.CA
of the dominant estate to establish by clear and convincing
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the owner of the
servient
estate
the
obligation of
evidence the presence of all the preconditions
before
his
claim
for
easementofrightofwaymaybegranted. allowing something to be done or of doing it What stamps a public character on a private property, like the road in
himself. question, is not the
number of
persons who may
have an interest
in
Mere convenience for the dominant estate is not what is ii) A negative easement is one that prohibits the its
use,
but
the fact
that
all
those who may desire to use it may do so
required by law as the basis of setting up a compulsory uponpaymentoftherequiredindemnity.
easement. To be sure, the true standard for the grant of the legal owner of the servient estate from doing
rightis"a
dequacy." something which he could lawfully do if the
ContinuousandDiscontinuousEasements
easementdidnotexist.
Borbajov.HiddenViewHomeowners Liwagv.HappyGlenLoopHomeowners2012
e) Rightgiven
The
dominant estate
cannot
be
the servient estate at the same In this case, the water facility is an encumbrance on
Lot
11
for
the
i) Partialuse;
time. One of the characteristics of an easement is that it can be benefit of the community. It is continuous and apparent, because it
imposed only on the property of another, never on one’s own ii) Gettingofspecificmaterial. is used incessantly without human intervention, and because it is
property. An easement can exist only when the servient and the continually kept in view by the overhead water
tank,
which reveals
f) Sourceororigin
dominantestatesbelongtodifferentowners. itsusetothepublic.
i) Voluntary;
2.Classification The easement of water facility has been voluntarily established.
ii) Legal;
For more than 30 years, the facility was continuously used as the
ResumeofClassificationA
ccordingto iii) Mixed. residents’ sole source of water. Continuous and apparent
easements are acquired either by virtue of a title or by
a) Partygivenb
enefit RealandPersonalServitudes prescription of 10 years. Thus, an easement of water facility has
i) Realorpredial ART 614. Servitudes may also be established for the benefit of a alreadybeenacquiredthroughprescription.
ii) Personal community, or of one or more persons to whom the
encumberedestatedoesnotbelong. PositiveandNegativeEasements
b) Mannerofexercise
Jabonetev.Monteverde ⭐SpsGarciav.Santos2019
i) Continuous easements are those the use of which
The servitude established was clearly for the benefit alone of the According to Article 621, in order to acquire easements by
is or may be incessant,
without
the
intervention
plaintiffs. In
other
words, the
right
acquired by the original plaintiffs prescription in positive easements, the prescriptive period shall
ofanyactofman. was a personal servitude under Article 614, and not a predial commence from the
day
on
which the
owner of
the dominant estate,
ii) Discontinuous easements are those which are servitude that inures to the benefit of whoever owns the
dominant or
the
person who may have made use of the easement, commenced
used at intervals and depend upon the acts of estate. toexerciseitupontheservientestate.
man.
Alcantarav.Reta,Jr. With respect to negative easements — from the day on
which
the
c) Whetherornotexistenceisindicated owner of the dominant estate forbade, by an instrument
Roble was allowed to construct his house on the land because it acknowledged before a notary public, the owner of the servient
i) Apparent easements are those which are made would facilitate his gathering of tuba. This would be in the nature of a estate, from executing an act which would be lawful without the
known and are continually kept in view by personaleasementunderArticle614. easement.
external signs that reveal the use and enjoyment of
thesame. PublicandPrivateEasements Howthenisaneasementoflightandviewclassified?
ii) Nonapparent easements are those which show NorthNegrosSugarv.Hidalgo As a general rule, an easement of light and view is a positive one if
noexternalindicationoftheirexistence. the window or opening is situated in a party wall, while it is a
An easement of way voluntarily constituted in favor of a
d) Purposeornatureoflimitation community. Consequently, the plaintiff may not establish negative one if
the
window or
opening is
thru
one's own
wall, i.e.,
discriminatoryexceptionsagainstanyprivateperson. thru a wall of the dominant estate. However, even if the window is on
i) A positive
easement
is
one
which
imposes
upon
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one's own
wall,
still the easement would be positive if the window is
3.Modesofacquiringeasements persons
is
not
one of
the
grounds for
the extinguishment of an
onabalconyorprojectionextendingoverintotheadjoiningland. easement. On the contrary, use of the easement is continued by
a) TITLEorPRESCRIPTIONof10YEARSif operationoflaw,specifically,A rt624.
Aside from prescription, easements may likewise be acquired i) ContinuousANDApparent.
through title. The term "title" refers to a juridical act or law 4.Rightsandobligationsofthe
sufficienttocreatetheencumbrance. b) TITLEONLYif
i) DiscontinuousandApparent;
owners
The mode of acquiring an easement under Article 624 is a "legal
presumption or apparent sign." Article 624 finds application in ii) ContinuousandNon-apparent; DominantEstate ServientEstate
situations wherein two or more estates were previously owned by a iii) DiscontinuousandNon-apparent.
singular owner, or even a single estate but with two or more Rights
portions being owned by
a singular
owner.
According to
Article 624, ⭐Bogo-MedellinMilling,Co.v.CA,supra
there arises a title
to an easement of light and view, even in the 1. Exercisetheeasementandall 1. Retainownershipand
The easement of right of way is considered discontinuous
absence of any formal act undertaken by the owner of the necessaryrights;(Art625) possession;(Art630)
because it is exercised only if a person passes or sets foot on
dominant estate, if this apparent visible sign, such as the 2. Tomakeontheservientestateall 2. Tomakeuseofthe
somebody else's land. Like a road for the passage of vehicles or
existence of a door and windows, continues to remain and necessaryworksforitsuseand easementunless
persons, an easement of right of way of railroad tracks is
subsist, unless, at the time the ownership of the two estates is preservation,BUT deprivedbystipulation
discontinuous. The presence of physical or visual signs only
divided, providedthatthe
classifiesaneasementintoapparentornon-apparent. a. Mustbeathisownexpense;
exerciseofeasementis
1) the
contrary should be provided in the title of conveyance of b. Mustnotifytheservient notadverselyaffected
In this case, the presence of railroad tracks for the passage of
eitherofthem,or owner; andthathecontributes
petitioner's trains denotes the existence of an apparent but
2) the
sign aforesaid should be removed before the execution of discontinuouseasementofrightofway. c. Selectconvenienttimeand totheexpenses;
thedeed. manner; 3. Tochangethelocation
When is
a party
deemed
to
acquire title over the use of such land? In d. Mustnotaltertheeasement ofaveryinconvenient
The
existence
of
an
easement
of
light
and
view
under Article 624 is atleasttwocases,weheldthatif: ormakeitmore easementprovidedthat
establishedaslongas
a) it had subsequently entered into a contractual right
of
way burdensome.(Art627) anequallyconvenient
1) there exists an apparent sign of servitude between two with the heirs for the continued use of the land under the substituteismade,
3. Askforamandatoryinjunctionto
estates; principlesofvoluntaryeasementsor withoutinjurytothe
preventimpairmentor
2) the sign of the easement must be established by the owner b) it
had
filed
a case
against
the
heirs
for
conferment on it of a obstruction; dominantestate.(Art
ofbothtenements; legaleasementofrightofwayunderA rticle629, 629)
4. Renouncetotallytheeasementif
3) eitherorbothoftheestatesarea
lienatedb
ytheowner;and hedesiresexemptionfrom
thentitleovertheuseofthelandisdeemedtoexist.
4) at the time of the alienation nothing is stated in the contributiontoexpenses(Art
document of alienation contrary to the
easement nor
is
the 628)
Abellana,Sr.v.CA
sign of the easement removed before the execution of the
document. The use of a footpath or road may be apparent but it is a Duties
discontinuous easement because its
use
is
at intervals and depends
Article 673 is the exception to the general rule. Therefore, upon the acts
of man. It can be exercised only if a man passes or puts 1. Cannotusetheeasementexcept 1. Cannotimpairtheuseof
considering that
the Sps.
Garcia have acquired by title an easement of his feet over somebody else's land. Hence, a right of way is not forthebenefitoftheimmovable theeasement;(Art629)
light and view in accordance with Article 624, the Sps. Santos acquirablebyprescription. originallycontemplated. 2. Mustcontributetothe
should necessarily demolish or renovate portions of their 2. Cannotexercisetheeasementin expensesincasehealso
residential building so that the three-meter distance rule as Tañedov.Bernad anyothermannerthanthat usestheeasement;(Art
mandatedunderArticle673isobserved. previouslyestablished.(Art626) 628)
The alienation of the dominant and servient estates to different
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Villanuevav.Velasco
3. Cannotaltertheeasement; 3. Incaseofimpairment, Merger presupposes the existence of a prior servient-dominant
torestoreconditionsto owner relationship, and the termination of that relation leaves the asementt obec
Theessentialrequisitesforane ompulsorya re:
4. Cannotmakeitmore easement of
no
use.
Unless the
owner
conveys
the property in
favor
burdensome; thestatusquoathis 1) the
dominant
estate is surrounded by other immovables and
expenseplusdamages; of the public—if that is possible—no genuine merger can take
hasnoadequateoutlett oapublichighway;
5. Forseveraldominantestates, placethatwouldterminateapersonaleasement.
eachmustcontributeto 4. Topayfortheexpenses 2) properindemnityh
asbeenpaid;
incurredforthechange
necessaryrepairsandexpenses 6.LegalEasements 3) the
isolation
was not
due
to
acts
of
the
proprietor
of
the
inproportiontotheBENEFIT oflocationorformof
dominantestate;
received.(Art628) theeasement.(Art629) Legal easements are ones imposed by law, and which have, for
4) the right of way claimed is at a point least prejudicial to the
their object, either public use or interest of private persons, as
servientestate;and
5.Modesofextinguishment opposed to voluntary easements that are established by the
agreementsoftheparties.T hedifferentlegaleasementsare: 5) to the extent consistent with the foregoing rule, where the
ART631.Easementsareextinguished: distance from the
dominant estate to
a public
highway
may
a) easementrelatingtowaters; betheshortest.
1) By merger in the same person of
the
ownership
of b) rightofway;
thedominantandservientestates; Ramos,Sr.v.GatchalianRealty,Inc.
c) partywall;
2) Byn
onusefortenyears; Mere convenience for the dominant estate is not enough to
d) lightandview; serve
as
its
basis. To
justify
the
imposition of this servitude, there
a) with respect to discontinuous easements, this mustbeareal,notafictitiousorartificial,necessityforit.
e) drainage;
period shall
be
computed from the
day
on
which
theyc easedtobeused;and, f) intermediatedistances; Quimenv.CA
b) with respect to continuous easements, from
the g) easementagainstnuisance;and If
the
two
circumstances do not
concur in a single tenement, the way
day
on which an act
contrary
to
the
same took where damage will be least shall be used even if not the shortest
h) lateralandsubjacentsupport.
place; route. This is so because least prejudice prevails over
shortest
3) When either or both of the estates fall into such RequisitestoAcquireEasementofAQUEDUCT distance.
conditionthattheeasementcannotbeused;xxxx
a) Indemnitymustbepaid;
Florov.Llenado
4) By the expiration of the term or the fulfillment of
b) If
for
private
interests, the easement cannot be imposed on
the condition, if the easement is temporary or The use of Road Lots 4 and 5 by the
Llenados during the
month of
EXISTING buildings, courtyards, annexes, out-houses,
conditional; March was by mere tolerance of Floro pending the negotiation of
orchardsorgardens;
the terms and conditions of
the right of
way.
Although such use
was
5) By the renunciation of the owner of the dominant in anticipation of a voluntary easement of right of way, no such
c) TheremustbePROOF:
estate; contract was validly entered into by reason of the failure of the
i) Thathecandisposeofthewater;
6) By the
redemption
agreed
upon
between
the
owners parties to agree on its
terms and conditions. Thus,
Llenados cannot
ofthedominantandservientestates. ii) That the water is SUFFICIENT for the use for claim entitlement to a right of way through the Floro Park
whichitisintended; Subdivisiononthebasisofavoluntaryeasement.
Salimbangonv.Tan2010
iii) That the
proposed course is
the
most
convenient
When the owner of
Lots
D and E also became the owner of Lot B, the Valdezv.Tabisula
and the least onerous to third persons and the
easement of
right of
way on
Lot B became extinct
by operation servientestate; A document stipulating a voluntary easement must be recorded in the
oflaw. RegistryofPropertyinordernottoprejudicethirdparties.
iv) That proper administrative permission be
SolidManilav.BioHongTrading obtained. Here, petitioners and their family are also the owners of two
EasementofRightofWay,Requisitesof properties adjoining the subject property which have access
to
two
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public roads or highways. Since petitioners then have more than the
land
occupied plus the amount of the damage caused to the neighborhood or any considerable number of persons,
adequate passage to two public roads, they have no right to servientestate. although the extent of the annoyance, danger or damage upon
demandaneasementonthe"westernsideofrespondents'lot." individualsmaybeunequal";or
LateralandSubjacentSupport b) a private nuisance, or one "that is not included in the
1) RighttoCompensationofownerofservientestate foregoing definition", or, as case law puts it, one which
Castrov.Monsod2011
"violates only private rights and produces damages to but
a) Ifpermanent=Valueofland+Damages;
An easement is established either by law or
by
will
of
the
owners. oneorafewpersons".
Uponextinction,returntheindemnitywithoutinterest. The courts cannot impose or constitute any servitude where none
existed.Therearethereforenojudicialeasements. Nuisanceperseandperaccidens
b) Iftemporary=Damagesonly.
2) WidthofanEasementofRightofWay Article 684 provides that no proprietor shall make such excavations Jurisprudence further classifies nuisances in relation to their legal
upon his land as to deprive any adjacent land or building of sufficient susceptibilitytosummaryabatement.
Encarnacionv.CA lateral or subjacent support. An owner, by virtue of his surface right,
Whether or not petitioner is entitled to a widening of an already may make excavations on his land, but his right is subject to the a) a nuisance per se, or one which "affects the immediate
existingeasementofright-of-way. limitation that he shall not deprive
any
adjacent land
or
building of safety of persons and property and may be summarily
sufficientlateralorsubjacentsupport. abatedundertheundefinedlawofnecessity";or
While there is a dried river bed less than 100 meters from the b) a nuisance per accidens, or that which "depends upon
dominant tenement, that
access is
grossly inadequate. Generally, the In the instant case, an easement of subjacent and lateral certain conditions and circumstances, and its existence
rightofwaymaybedemanded: support exists in favor of respondent. A permanent injunction on being a question of fact, it cannot be abated without due
the part of
petitioner from making injurious excavations is necessary hearing thereon in a tribunal authorized to decide whether
1) whenthereabsolutelynoaccesstoapublichighway,and in order to protect the interest of respondent. However, an suchathingdoesinlawconstituteanuisance."
2) when, even if there is one, it is difficult or dangerous
to annotation of the existence of the subjacent and lateral support
There
is a need for judicial intervention when the nuisance
useorisgrosslyinsufficient. is no longer necessary. It exists whether or not it
is
annotated
or
registeredintheregistryofproperty. isNOTanuisancep erse.
Here, during the
rainy
season, the
river bed
is
impassable due to the
Aside from the remedy of summary abatement, a private person
flood. Thus,
it
can only
be used at certain times of the year. With f. Nuisance whose property right was invaded or unreasonably interfered with by
the inherent disadvantages of the river bed which make passage the act, omission, establishment, business or condition of the
difficult,ifnotimpossible,itisa siftherewerenooutletatall. ART 694. A nuisance is any act, omission, establishment, property of another may file a civil action to recover personal
business,conditionofproperty,oranythingelsewhich: damages. To note,
the
remedies of
abatement and damages are
The law decrees that petitioner must indemnify the owners of the
1) Injuresorendangerstheh
ealthorsafetyofothers;or cumulative;hence,BOTHmaybedemanded.
servient estate. Since the easement to be established in favor of
petitioner is of a continuous and permanent nature, the indemnity 2) Annoysoroffendsthes enses;or
shall consist
of
the value
of the land occupied and the amount of 1.Liabilities
thedamagecausedtotheservientestatepursuanttoA rticle649. 3) Shocks,defiesordisregardsd
ecencyormorality;or
4) Obstructs or interferes with the
free
passage
of
any ART 696. Every successive owner or possessor of property
3) PaymentofIndemnity publichighwayorstreet,oranybodyofwater;or who fails
or refuses to abate a nuisance in that property started
by a former owner or possessor is
liable
therefor in
the
same
WoodridgeSchoolv.ARBConstructionreiteratedinD
eGuzmanv. 5) Hindersorimpairstheuseofproperty.
mannerastheonewhocreatedit.
FilinvestDevelopment2015 Ranav.Wong2014
2.AttractiveNuisance
Since the intention of petitioners is to establish a permanent Article 695 classifies nuisances with respect to the object or
passage, the second paragraph of Article 649 of the Civil Code objectsthattheyaffect.Inthisregard,anuisancemayeitherbe: HidalgoEnterprisesv.Balandan
particularly applies. The Civil Code categorically provides for the
measure by which
the
proper indemnity may be
computed: value of public
a) a nuisance, or one which "affects a community or The
Doctrine
of
Attractive
Nuisance
states that one who maintains
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on his premises dangerous instrumentalities or appliances of a said
to
be
injurious
to the rights of property, health, or comfort of the permits.
character likely to attract children in
play,
and
who fails
to
exercise community.
ordinary care
to
prevent children from playing therewith or resorting 5.Specialinjurytoindividual
thereto, is liable to a child of tender years who is injured thereby, Perezv.SpsMadronaandPante2012
evenifthechildistechnicallyatrespasserinthepremises. ART 703. A private person may file an action on account of a
For injunction to issue, two requisites must concur: first, there must
be a right to be protected and second, the acts against which the publicnuisance,ifitisspeciallyinjurioust ohimself.
The attractive nuisance doctrine generally is NOT applicable to
bodies of water, artificial as well as natural, in the absence of injunction is to
be
directed
are
violative
of said right. Here, there is a ART 704. Any private person may abate a public nuisance
some unusual condition or artificial feature other than the mere right to be protected, that is,
respondents’ right over
their concrete which is specially injurious to him by removing, or if
wateranditslocation. fence which cannot be removed without due process; and the act, the
necessary, by
destroying the
thing
which constitutes the same,
summary demolition of the concrete fence, against which the without committing a breach of the peace, or doing
3.Noprescription injunctionisdirected,wouldviolatesaidright. unnecessaryinjury.Butitisnecessary:
Telmov.Bustamante 1) That demand be first made upon the owner or
ART 698. Lapse of time cannot legalize any nuisance, whether possessorofthepropertytoabatethenuisance;
publicorprivate. Nowhere was it
shown that the concrete posts put up by respondent
in what he believed was his
and his
co-owners'
property were
ever 2) Thatsuchdemandhasbeenrejected;
4.Extrajudicialabatement declared dangerous or ruinous, such that they can be summarily 3) That
the abatement be approved by the district health
demolished by petitioner. The concrete posts put up by
respondent officer and executed with the assistance of the local
ART 702. The district health officer shall determine whether on the property are not properly covered by the definition of the word
police;and
or not abatement, without judicial proceedings, is the best "building" nor is it embraced in
the
corresponding interpretation of
remedyagainstap ublicnuisance. theword"structure." 4) ThatthevalueofthedestructiondoesnotexceedP
3K.
EstateofFranciscov.CA 6.Rightofindividualtoabateapublicnuisance
Cruzv.PandacanHiker’sClub2016
Violation of
a municipal ordinance neither
empowers the
Municipal A
basketball ring, by itself,
poses no
immediate harm or danger to
Mayor to avail of extra-judicial remedies. On the contrary, the LGC ART699.Theremediesagainstapublicnuisanceare:
anyone but
is
merely an object of recreation. Also, the chief executive
imposes upon him the duty "to cause to be instituted judicial of
the
local government, like
the
Punong Barangay, is
not
authorized 1) A prosecution under the Penal Code or any local
proceedingsinconnectionwiththeviolationofordinances." as the official who can determine the propriety of a summary ordinance:or
abatement. 2) Acivilaction;or
Respondents can not seek cover under the general welfare clause
authorizing the
abatement of
nuisances without judicial proceedings. 3) Abatement,withoutjudicialproceedings.
Aquinov.MunicipalityofMalay2014
That tenet
applies to
a nuisance per
se. The
storage of
copra in
the
quonset building is a legitimate business. It is not per se a nuisance In establishing a no build zone through local legislation, the LGU ART 700. The district health officer shall take care that one or
warrantingitssummaryabatementwithoutjudicialintervention. effectively made a determination that
constructions therein,
without alloftheremediesagainstapublicnuisanceareavailedof.
first securing exemptions from the local council, qualify as
Paraynov.Jovellanos nuisancesf ortheyposeathreattopublicsafety. ART 701. If a civil action is brought by reason of the
maintenance of a public nuisance, such action shall be
A gas station is NOT a nuisance per se or one affecting the Had it
not
been
constructed in
the no build zone, Boracay West Cove commencedbythecityormunicipalm ayor.
immediate safety
of
persons and
property,
hence, it cannot be closed could have secured the necessary permits without issue. As such,
downortransferredsummarilytoanotherlocation. petitioner is
correct
that
the
hotel is not a nuisance per se, but is still 7.Righttodamages
anuisanceperaccidens.
LucenaGrandCentralTerminalv.JacLiner
ART 697. The abatement of a nuisance does not preclude the
Neither are terminals public nuisances as petitioner argues. For Pertinent
herein is
Sec.
444
(b)(3)(vi)
of
the LGC,
which empowered
right of any person injured to recover damages for its past
their operation is a legitimate business which, by itself, cannot be the mayor to order the closure and removal of illegally
existence.
constructed establishments for failing to
secure
the necessary
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8.W homaysueonprivatenuisance Quasi- Arisefromlawful, Returnmoneypaidby Every contract
contains
not
only
what
has
been
explicitly
stipulated,
contracts voluntaryandunilateral mistake(Art2154) butthestatutoryprovisionsthathaveanybearingonthematter.
ART705.Theremediesagainstaprivatenuisanceare: actsandwhichare
1) Acivilaction;or enforceabletotheend The rule is that the law forms part of, and is read into, every
thatnooneshallbe contract, unless clearly excluded therefrom in those cases where
2) Abatement,withoutjudicialproceedings. unjustlyenriched(Art suchexclusionisallowed.
ART 707. A private person or a public official extrajudicially 2142).
3) Quasi-Contracts
abatinganuisanceshallbeliablefordamages:
Actsor Arisefromcivilliability Restitution,
1) Ifhecausesunnecessaryinjury;or omissions whichistheconsequence indemnification, ART 1160. Obligations derived from quasi-contracts shall
punished ofacriminaloffense(Art reparation. be subject to the provisions of Chapter 1, Title XVII, of this
2) If
an
alleged nuisance is later declared by the courts to
bylaw 1161) Book.
benotarealnuisance.
A quasi-contract is that juridical relation resulting from a lawful,
4. Obligations Quasi- Torts;Arisefromdamage Art2193-headofthe
voluntary,
and
unilateral act,
and which has for its purpose the payment
delicts causedtoanotherthrough familyliablefordamage
of indemnity to the end that no one shall be unjustly enriched or
anactoromission,there causedbythingsthrown
benefitedattheexpenseofanother.Itcouldeitherbe:
A.GeneralProvisions beingfaultornegligence, orfallingfrombuildingin
butnocontractual whichheresides; a) Negotiorum gestio — the voluntary management of the
ART 1156. An obligation is a juridical necessity to give, to do or relationexistsbetween Art2183-Possessorofan property or affairs of another without the knowledge or
nottodo. theparties.(Art2176) animaltopayfordamages consentofthelatter(A
rt2144).Thisdoesnotapplywhen
whichitmaycause.
Obligation is a legal relation established between one party and i) property or business is not neglected, in which case
another, whereby the latter is bound to the fulfillment of a prestation ART1157.Obligationsarisefrom: provisions on unauthorized contracts shall govern,
whichtheformermaydemandofhim. and
Elements 1) Law
ii) the
manager
has
been
tacitly
authorized by the owner,
a) Anactives ubject—theobligeeorcreditor; ART 1158. Obligations derived from law are not presumed. inwhichcasetherulesona
gencyshallgovern.
Only those expressly determined in this Code or in special b) Solutio indebiti — created when something is
received when
b) Apassives ubject—theobligorordebtor; lawsaredemandablexxxx.
there is no right to demand it and it was unduly delivered
c) Theobjecto
rprestation; Bautistav.F.O.Borromeo,Inc. through mistake (Art 2154). Whether the payment was made
The subject matter of an obligation — and may consist of Borromeo paid the widow of its employee, Quintin Delgado, by mistake is a judicial
matter. General presumption: “money
givingathing,doingornotdoingacertainact. compensation (death benefit) and funeral expenses for the latter's paidbyonetoanotherwasduetothelatter”.
death while in the course of employment. This obligation arises
d) Theefficientc
ause—
thevinculumorjuridicaltie. c) Other cases — Arts
2164 - 2175. Recovery may be allowed in
fromlaw-Section2oftheWorkmen'sCompensationAct.
view of the peculiar circumstances or factual environment to
Sources
the end that a recipient of benefits or favors resulting from
2) Contracts
Source Definition Examples lawful, voluntary and unilateral acts of another may not be
ART 1159. Obligations arising from contracts
have the force unjustlyenrichedattheexpenseofthelatter.
Law( Art Imposedbythelawitself Art195CivilCode- of
law
between the
contracting parties and should be complied
1158) support Cruzv.J.M.Tuason&Co.,Inc.
withingoodfaith.
A
presumed quasi-contract cannot emerge
as
against one
party when
Contracts Arisefromstipulationof Obligationtorepayaloan MaritimeCompanyofthePhilippinesv.ReparationsCommission the subject matter thereof is
already
covered by
an
existing
contract
(Art1159) parties( Art1306); byvirtueofanagreement withanotherparty.
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NationalCommercialBankofSaudiArabiav.CA 5) Quasi-delict
abartotheinstantactionagainsthim.
Solutioindebitiapplieswhere: ART 1162. Obligations derived from quasi-delicts shall be
1) a payment is made when there exists no binding relation governed by the provisions of Chapter 2, Title XVII of this Viratav.Ochoa
between the payor, who has no duty
to
pay,
and
the
person Book,andbyspeciallaws. It is settled that in negligence cases, the aggrieved
parties
may
whoreceivedthepayment,and quasi-delict is
A a fault or act of negligence or omission of care which choose between an action under the RPC or for quasi-delict
2) the payment is made through mistake, and not through causes damage to another, there being no pre-existing contractual under Article 2176. What is prohibited by Article 2177 is to
liberalityorsomeothercause. relationsbetweentheparties.Theremustbe: recovertwiceforthesamenegligentact.
1) Anactoromissionbythedefendant;
Here, PBC and NCBSA were bound by their contract, the letter of Neplum,Inc.v.Orbeso
credit. As such,
the
cause
of
action
was
based on
a contract, and
the 2) Faultornegligencebythedefendant;
Deemed instituted in every criminal prosecution is the civil
prescriptiveperiodisten,notsixyears.
3) Damagecausedtotheplaintiff; liability arising from the crime or delict per se (civil liability ex
delicto), but NOT those liabilities from quasi-delicts, contracts or
Siga-anv.Villanueva 4) Direct relation or connection of cause and effect between 1
quasi-contracts.
Under Article 1960, if
the
borrower of
loan
pays
interest when there and3;and
has been no stipulation therefor, the provisions of the Civil Code 5) Nopre-existingcontractualrelationsbetweentheparties. B.NatureandEffectsofObligations
concerningsolutioindebitishallbeapplied.
Lasamv.Smith 1.CompliancewithObligations
4) Delict
In
a legal sense and, consequently, also in relation to contracts, a caso
fortuitopresentsthefollowingessentialcharacteristics: 1) InObligationstoGive
ART 1161. Civil obligations arising from criminal offenses shall
be governed by the penal laws, subject to the provisions of 1) The cause of the unforeseen and unexpected occurrence, or ART 1163. Every person obliged to give something is also
of the failure of the debtor to comply with his obligation, obliged to take care
of
it
with
the proper diligence of
a good
Article 2177, and of the pertinent provisions on Human
mustbeindependentofthehumanwill. father of a family, unless the law or the stipulation of the
Relations,andofTitleXVIII,regulatingdamages.
partiesrequiresanotherstandardofcare.
DMPIEmployeesCreditCooperative,Inc.v.Velez 2) It must be impossible to foresee the event which
constitutes the
caso
fortuito,
or
if
it
can
be
foreseen, it must ART 1165. When what is to be delivered is a determinate
Every person criminally liable
for
a felony
is
also civilly liable. Civil beimpossibletoavoid. thing, the creditor, in addition to the right granted him by
liability includes restitution, reparation for damage caused, and article1170,maycompelthedebtortomakethedelivery.
indemnificationofconsequentialdamages. 3) The
occurrence must
be
such
as
to
render it impossible for
thedebtortofulfillh
isobligationinanormalmanner.and If
the
thing
is
indeterminate
or
generic, he
may
ask
that the
The case herein, an independent civil action for damages on obligationbecompliedwithattheexpenseofthedebtor.
4) The obligor (debtor)
must
be
free
from
any
participation
account of the fraud committed against Villegas under Article 33, intheaggravationoftheinjuryresultingtothecreditor. If
the obligor delays, or has promised to deliver the same thing
mayproceedindependentlyeveniftherewasnoreservation. to
two or
more
persons who do
not
have
the
same interest, he
Elcanov.Hill shall be responsible for any fortuitous event until he has
HunHyungParkv.EungWonChoi effectedthedelivery.
In this jurisdiction, the separate individuality of a cuasi-delito or
The civil action based on delict may, however, be deemed culpa aquiliana under the Civil Code has been fully and clearly Dutiesofdebtorinobligationtogiveadeterminatething
extinguished if there is a finding on the final judgment in the recognized, even with regard to a negligent act for which the
criminal action that the act or omission from which the civil 1. Preserveortakecareofthethingdue;
wrongdoer could have been prosecuted and convicted in a criminal
liabilitymayarisedidnotexist. case and for
which,
after
such
a conviction,
he
could have
been sued 2. Deliverthefruitsofthething(Art1164);
forthiscivilliabilityarisingfromhiscrime.
3. Deliveritsaccessionsandaccessories(Art1166);
The acquittal of Reginald Hill in the criminal case has not 4. Deliverthethingitself;and
extinguished his
liability
for
quasi-delict, hence that
acquittal is not
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5. Answer for damages in case of non-fulfillment
or
breach
(Art legally, or because of the rights acquired by third persons who acted
shambles." He is
liable
under
Article 1167 for
the
cost of
executing
1170). in
good faith,
the
remedy is
an
action
for
damages caused
by
the
the obligation in a proper manner. In
addition, he
is
likewise liable,
Dutiesofdebtorinobligationtodeliveragenericthing under Article 1170, for the cost of the missing parts for in his violation.
obligation to
repair the
typewriter he was
bound, but failed, to return
1. Deliver a thing
which
is
of
the
quality
intended
by
the
parties 2.BreachofObligationsandGroundsforLiability
itinthesameconditionitwaswhenhereceivedit.
considering the purpose of the obligation and other
circumstances(Art1246);and ART 1170. Those who in the performance of their obligations
Tanguiligv.CA
2. Be liable
for
damages in
case
of
fraud, negligence,
or
delay, in are
guilty
of fraud, negligence, or delay, and those who in
the
performance of his obligation, or contravention of the tenor Whether petitioner is under obligation to reconstruct the windmill any manner contravene the tenor thereof, are liable for
thereof(Art1170). afteritcollapsed. damages.
Remediesofcreditorwhendebtorfailstocomply.D
emand YES. When the windmill failed to function properly it became Areolav.CA
a) Specificperformance; incumbent upon petitioner to institute the proper repairs in
Respondent insurance company is liable by way of damages for the
accordance with
the
guaranty stated in the contract. Thus, respondent
b) Rescissionorcancellation;or fraudulent acts committed by Malapit that gave occasion to the
cannot be
said
to
have incurred in
delay;
instead, it is petitioner who
erroneous cancellation of subject insurance policy. Its earlier
act
of
c) Damages. should bear the expenses for the reconstruction of the windmill.
reinstating
the
insurance policy can not
obliterate the injury inflicted
Article 1167 is explicit on this point
that
if
a person obliged
to
do
ART 1166. The obligation to give a determinate thing includes somethingfailstodoit,thesameshallbeexecutedathiscost.
onpetitioner-insured.
that of delivering all its accessions and accessories, even
thoughtheymaynothavebeenmentioned. Vil-ReyPlannersandBuildersv.Lexber,Inc.2
016 1) Fraud
Fidelity&DepositCo.v.Wilson Breach of contract is the failure of a party, without legal reason, to ART 1171. Responsibility arising from fraud is demandable in
The delivery of a thing constitutes a necessary and
indispensable comply with the terms of a contract or perform any promise that all obligations. Any waiver
of
an
action
for
future
fraud
is
requisite for the purpose of
acquiring
the ownership of
the
same
by formseitherapartorthewholeofit. void.
virtue of a contract. The ownership, the property right, is only Fraud (deceit or dolo) — deliberate or intentional evasion of the
derivedfromthedeliveryofathing. The reciprocal obligation in this case was Lexber's payment of
the
normalfulfillmentofanobligation.
50% balance upon Vil-Rey's completion of the works. However,
despite the grant of extension, and even after the lapse of another a) Includes any act, omission or concealment involving some
2) InObligationstoDo
five-daygraceperiod,Vil-Reyfailedtofinishtheworks. kind of malice or dishonesty. It is synonymous to bad faith.
ART 1167. If a person obliged to do something fails to do it, the Moraldamagesm ayberecovered.
sameshallbeexecutedathiscost. The law provides that the obligation of a person who fails to fulfill
it
shall be
executed at
that person's cost. Thus, Vil-Rey should be b) Art 1170 refers to incidental fraud (dolo incidente)
This same rule shall be
observed if he does it in contravention held liable for the amount paid by Lexber to another contractor to committed in
the
performance of an obligation already existing
of the tenor of the
obligation.
Furthermore, it
may be
decreed complete the works. Article 1169 provides that in reciprocal because of contract. It is different from causal fraud (dolo
thatwhathasbeenpoorlydonebeundone. obligations, delay
by
one of
the
parties
begins from
the
moment the
causante) or fraud employed in the execution of a contract
Remediesofcreditorifdebtorfailstodo otherfulfillstheobligation.
under Art
1338, which vitiates consent and makes the contract
a) To have
the
obligation performed by himself or by another voidable.
3) InObligationsNottoDo
atdebtor’sexpense. 2) Negligence
b) Plusdamages. ART 1168. When the obligation consists in not doing, and the
obligor does what has been forbidden him, it shall also be ART 1172. Responsibility arising from negligence in the
Chavezv.Gonzales undoneathisexpense. performance of every kind of obligation is also demandable,
The defendant-appellee contravened the tenor of his obligation but
such
liability
may
be regulated by
the
courts, according to
As
a rule,
the remedy of the obligee is the undoing of the forbidden thecircumstances.
because he not only
did
not
repair
the
typewriter
but
returned
it
"in
thing plus
damages (Art 1170). If
it
is
not
possible,
physically or
Picartv.Smith
BasedonthePre-WeekNotes ByR
GL 174o
f387
POLLABTAX|C
RM|C EMETH
IVCOM|R #BestBarOutlineReviewerEver Forthe2020/21#BestBarEver
PrudentialBankv.Rapanot,etal.2
017
The test by which to determine the existence of negligence in a selection and supervision of employees through oral evidence must
particular case may be stated as follows: Did the defendant in doing If
only the
Bank exercised the highest degree of diligence required fail as it was unable to buttress the same with any other evidence,
the alleged negligent act use
that
reasonable care and
caution by the
nature
of
its
business as
a financial institution, it
would have object or documentary, which might obviate the apparent biased
which an ordinarily prudent person would have used in the discovered that (i)
Golden Dragon did
not
comply with the approval natureofthetestimony.
samesituation?Ifnot,thenheisguiltyofnegligence. requirement imposed by
Section 18 of
PD
957, and (ii)
that Rapanot
already paid a reservation fee and had made several installment Calalasv.CA
The proper criterion for determining the existence of payments in favor of Golden Dragon. The Bank's failure to exercise
The doctrine of proximate cause is applicable only in actions for
negligence in a given case
is
this
— Conduct is
said
to
be
negligent the diligence required of it constitutes negligence, and negates its
when a prudent man in the position of the tortfeasor would have quasi-delict, not in actions involving breach of contract. The
assertionthatitisamortgageeingoodfaith.
doctrine is
a device for
imputing liability to a person where there
is
foreseen that an effect harmful to another was sufficiently probable to
no relation between him and another party. In such a case, the
warrant his foregoing the conduct or guarding against its KindsofNegligenceasGroundforLiability
consequences. obligation is created by law itself.
But,
where there
is
a pre-existing
contractual relation between the parties, it
is
the
parties themselves
Contractual Aquiliana Criminal
who create the obligation, and the function of the law is merely to
PNBv.CA
regulatetherelationthuscreated.
Negligenceismerely Direct,substantiveandindependentofa
Damages
are not intended to enrich the complainant at the expense
incidental contract
of the defendant, and there is no hard-and-fast rule in the AirFrancev.Carrascoso
determination of what would be a fair amount of moral damages There’sapre-existing Nopre-existingobligation,e xceptt hedutyto Although the
relation of
passenger and carrier
is
"contractual both in
since each case must be governed by its own peculiar facts. The obligation donoharm. origin and nature" nevertheless "the act that
breaks the
contract
yardstick should be that it is not palpably and scandalously
maybealsoatort".
excessive. Preponderanceofevidencerequired Proofbeyond
reasonabledoubt Barredov.Garcia
Samsonv.CA
Defenseofagood Defenseofagood Theemployee’sguilt A
quasi-delict or "culpa aquiliana" is a separate legal institution
Bad
faith
is essentially a state of mind affirmatively operating with under the Civil Code, with a substantivity all its own, and
furtive design or with some motive of ill-will. Bad faith is thus fatherofafamily fatherofafamilyisa isautomaticallythe
inapplicable. properandcomplete employer'sc ivilguilt individuality that is entirely apart and independent
from
a delict
or
synonymous with fraud and involves a design to mislead or crime.
Respondeat defense. iftheformeris
deceive another, not
prompted by an honest mistake as to one's rights
superiora pplies. insolvent.
orduties,butbysomeinterestedorsinistermotive. Macalinaov.Ong
In contracts, the kind of fraud that will vitiate
consent
is
known
as Presumptionarises Ordinarily, Prosecutionhas Under local jurisprudence, the following are the requisites for the
dolo causante or causal fraud which is basically a deception uponproofthatthere complainantmust burdentoprovethe applicationofresipsaloquitur:
wasacontractand provethenegligence negligenceof
employed by one party prior to or simultaneous to the contract in 1) The accident
is
of
a kind
which
ordinarily
does not occur in
thatitwasnot ofdefendant. accused.
ordertosecuretheconsentoftheother. theabsenceofsomeone'snegligence;
carriedout.
PNCCv.CA 2) It is caused by an instrumentality within the exclusive
Vinluanv.CA controlofthedefendantordefendants;and
The petitioner failed to exercise the requisite diligence in maintaining
In
case of
injury to a passenger due to
the negligence of
the driver of 3) The possibility of contributing conduct which
would
make
the NLEX safe for motorists. PASUDECO's negligence in transporting
the bus on which he was riding
and of
the driver
of
another vehicle, theplaintiffresponsibleiseliminated.
sugarcanes without proper harness/straps, and that of PNCC in
the
drivers as
well as the
owners of
the two vehicles are jointly and
removing the emergency warning devices, were two successive
severallyl iablefordamages. There exists a fourth requisite, that
the
defendant fails
to
offer
any
negligent acts which were the direct and proximate cause of
Latagan's injuries. As such, PASUDECO and PNCC are jointly and explanation tending to
show
that
the
injury was
caused by
his or her
MetroManilaTransitCorp.v.CA wantofduecare.
severallyliable.
Petitioner's attempt to prove its diligentissimi patris familias
in
the
BasedonthePre-WeekNotes ByR
GL 175o
f387
POLLABTAX|C
RM|C EMETH
IVCOM|R #BestBarOutlineReviewerEver Forthe2020/21#BestBarEver
SpsSantosv.Pizarro 4) When demand would be useless, as when the debtor has BinalbaganTech,Inc.v.CA
rendereditbeyondhispowertoperform;
An act or omission causing damage
to
another
may give rise
to
two A party
to
a contract cannot demand performance of
the other
separatecivilliabilitiesonthepartoftheoffender,i.e., 5) When debtor has expressly acknowledged that he really
is
in party’s obligations unless he
is
in a position
to
comply with his
default. own obligations. Similarly, the right to rescind a contract can be
1) Civilliabilityexdelicto,underArticle100oftheRPC;and
KindsofMora demanded only if
a party thereto is
ready, willing and able to comply
2) Independentcivilliabilities,suchasthose withhisownobligationsthereunder(Art1191).
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