ve Secretary Eduardo Ermita, et al.
EN BANC
[G.R. NO. 168056 : September 01, 2005]
ABAKADA GURO PARTY LIST (FORMERLY AASJAS) OFFICERS SAMSON S. ALCANTARA AND ED VINCENT S. ALBANO, Petitioners, v. THE HONORABLE EXECUTIVE SECRETARY EDUARDO ERMITA; HONORABLE SECRETARY OF THE DEPARTMENT OF FINANCE CESAR PURISIMA; AND HONORABLE COMMISSIONER OF INTERNAL REVENUE GUILLERMO PARAYNO, JR., Respondents.
[G.R. NO. 168207]
AQUILINO Q. PIMENTEL, JR., LUISA P. EJERCITO-ESTRADA, JINGGOY E. ESTRADA, PANFILO M. LACSON, ALFREDO S. LIM, JAMBY A.S. MADRIGAL, AND SERGIO R. OSMEÑA III, Petitioners, v. EXECUTIVE SECRETARY EDUARDO R. ERMITA, CESAR V. PURISIMA, SECRETARY OF FINANCE, GUILLERMO L. PARAYNO, JR., COMMISSIONER OF THE BUREAU OF INTERNAL REVENUE, Respondents.
[G.R. NO. 168461]
ASSOCIATION OF PILIPINAS SHELL DEALERS, INC. REPRESENTED BY ITS PRESIDENT, ROSARIO ANTONIO; PETRON DEALERS' ASSOCIATION REPRESENTED BY ITS PRESIDENT, RUTH E. BARBIBI; ASSOCIATION OF CALTEX DEALERS' OF THE PHILIPPINES REPRESENTED BY ITS PRESIDENT, MERCEDITAS A. GARCIA; ROSARIO ANTONIO DOING BUSINESS UNDER THE NAME AND STYLE OF "ANB NORTH SHELL SERVICE STATIONâ€; LOURDES MARTINEZ DOING BUSINESS UNDER THE NAME AND STYLE OF "SHELL GATE - N. DOMINGOâ€; BETHZAIDA TAN DOING BUSINESS UNDER THE NAME AND STYLE OF "ADVANCE SHELL STATIONâ€; REYNALDO P. MONTOYA DOING BUSINESS UNDER THE NAME AND STYLE OF "NEW LAMUAN SHELL SERVICE STATIONâ€; EFREN SOTTO DOING BUSINESS UNDER THE NAME AND STYLE OF "RED FIELD SHELL SERVICE STATIONâ€; DONICA CORPORATION REPRESENTED BY ITS PRESIDENT, DESI TOMACRUZ; RUTH E. MARBIBI DOING BUSINESS UNDER THE NAME AND STYLE OF "R&R PETRON STATIONâ€; PETER M. UNGSON DOING BUSINESS UNDER THE NAME AND STYLE OF "CLASSIC STAR GASOLINE SERVICE STATIONâ€; MARIAN SHEILA A. LEE DOING BUSINESS UNDER THE NAME AND STYLE OF "NTE GASOLINE & SERVICE STATIONâ€; JULIAN CESAR P. POSADAS DOING BUSINESS UNDER THE NAME AND STYLE OF "STARCARGA ENTERPRISESâ€; ADORACION MAÑEBO DOING BUSINESS UNDER THE NAME AND STYLE OF "CMA MOTORISTS CENTERâ€; SUSAN M. ENTRATA DOING BUSINESS UNDER THE NAME AND STYLE OF "LEONA'S GASOLINE STATION AND SERVICE CENTERâ€; CARMELITA BALDONADO DOING BUSINESS UNDER THE NAME AND STYLE OF "FIRST CHOICE SERVICE CENTERâ€; MERCEDITAS A. GARCIA DOING BUSINESS UNDER THE NAME AND STYLE OF "LORPED SERVICE CENTERâ€; RHEAMAR A. RAMOS DOING BUSINESS UNDER THE NAME AND STYLE OF "RJRAM PTT GAS STATIONâ€; MA. ISABEL VIOLAGO DOING BUSINESS UNDER THE NAME AND STYLE OF "VIOLAGO-PTT SERVICE CENTERâ€; MOTORISTS' HEART CORPORATION REPRESENTED BY ITS VICE-PRESIDENT FOR OPERATIONS, JOSELITO F. FLORDELIZA; MOTORISTS' HARVARD CORPORATION REPRESENTED BY ITS VICE-PRESIDENT FOR OPERATIONS, JOSELITO F. FLORDELIZA; MOTORISTS' HERITAGE CORPORATION REPRESENTED BY ITS VICE-PRESIDENT FOR OPERATIONS, JOSELITO F. FLORDELIZA; PHILIPPINE STANDARD OIL CORPORATION REPRESENTED BY ITS VICE-PRESIDENT FOR OPERATIONS, JOSELITO F. FLORDELIZA; ROMEO MANUEL DOING BUSINESS UNDER THE NAME AND STYLE OF "ROMMAN GASOLINE STATIONâ€; ANTHONY ALBERT CRUZ III DOING BUSINESS UNDER THE NAME AND STYLE OF "TRUE SERVICE STATIONâ€, Petitioners, v. CESAR V. PURISIMA, IN HIS CAPACITY AS SECRETARY OF THE DEPARTMENT OF FINANCE AND GUILLERMO L. PARAYNO, JR., IN HIS CAPACITY AS COMMISSIONER OF INTERNAL REVENUE, Respondents.
[G.R. NO. 168463]
FRANCIS JOSEPH G. ESCUDERO, VINCENT CRISOLOGO, EMMANUEL JOEL J. VILLANUEVA, RODOLFO G. PLAZA, DARLENE ANTONINO-CUSTODIO, OSCAR G. MALAPITAN, BENJAMIN C. AGARAO, JR. JUAN EDGARDO M. ANGARA, JUSTIN MARC SB. CHIPECO, FLORENCIO G. NOEL, MUJIV S. HATAMAN, RENATO B. MAGTUBO, JOSEPH A. SANTIAGO, TEOFISTO DL. GUINGONA III, RUY ELIAS C. LOPEZ, RODOLFO Q. AGBAYANI AND TEODORO A. CASIÑO, Petitioners, v. CESAR V. PURISIMA, IN HIS CAPACITY AS SECRETARY OF FINANCE, GUILLERMO L. PARAYNO, JR., IN HIS CAPACITY AS COMMISSIONER OF INTERNAL REVENUE, AND EDUARDO R. ERMITA, IN HIS CAPACITY AS EXECUTIVE SECRETARY, Respondents.
[G.R. NO. 168730]
BATAAN GOVERNOR ENRIQUE T. GARCIA, JR., Petitioner, v. HON. EDUARDO R. ERMITA, IN HIS CAPACITY AS THE EXECUTIVE SECRETARY; HON. MARGARITO TEVES, IN HIS CAPACITY AS SECRETARY OF FINANCE; HON. JOSE MARIO BUNAG, IN HIS CAPACITY AS THE OIC COMMISSIONER OF THE BUREAU OF INTERNAL REVENUE; AND HON. ALEXANDER AREVALO, IN HIS CAPACITY AS THE OIC COMMISSIONER OF THE BUREAU OF CUSTOMS, Respondents.
AZCUNA, J.:
(i) Value-added tax collection as a percentage of Gross Domestic Product (GDP) of the previous year exceeds two and four-fifth percent (2 4/5%); orA scrutiny of these "conditions" shows that one of them is certain to happen on January 1, 2006.
(ii) National government deficit as a percentage of GDP of the previous year exceeds one and one-half percent (1 ½%).2
Similarly, I agree with Justice Artemio V. Panganiban in his separate opinion that the following are not germane to the E-VAT law:
Amended TAX
CODE Provision
Subject MatterSection 27 Rate of income tax on domestic corporations Section 28(A)(1) Rate of income tax on resident foreign corporationsSection 28(B)(1) Rate of income tax on non-resident foreign corporationsSection 28(B)(5-b) Rate of income tax on intercorporate dividends received by non-resident foreign corporationsSection 34(B)(1) Deduction from gross income
"Sections 1, 2, and 3 of the Republic Act No. 9337…, in so far as these sections (a) amend the rates of income tax on domestic, resident foreign, and nonresident foreign corporations; (b) amend the tax credit against taxes due from nonresident foreign corporations on the intercorporate dividends; and (c) reduce the allowable deduction from interest expense.â€Respondents should, in any case, now be able to implement the E-VAT law without confusion and thereby achieve its purpose.4
Endnotes:
1 The Constitution states that "Congress may, by law, allow the President to fix within specified limits, and subject to such limitations and restrictions as it may impose, tariff rates, import and export quotas, tonnage and wharfage dues, and other duties as imposts within the framework of the national development program of the Government." (Art. VI, Sec. 28 2, emphasis supplied.)
Petitioners claim that the power does not extend to fixing the rates of taxes, since taxes are not tariffs, import and export quotas, tonnage and wharfage dues, or other duties or imposts.
2 Section 4, Republic Act No. 9337. The pertinent portion of the provision states:
SEC. 4. Section 106 of the same Code, as amended, is hereby further amended to read as follows:"SEC. 106. Value-added Tax on Sale of Goods or Properties. –3Condition has been defined by Escriche as "every future and uncertain event upon which an obligation or provision is made to depend." It is a future and uncertain event upon which the acquisition or resolution of rights is made to depend by those who execute the juridical act. Futurity and uncertainty must concur as characteristics of the event.
"(A) Rate and Base of Tax. - There shall be levied, assessed and collected on every sale, barter or exchange of goods or properties, a value-added tax equivalent to ten percent (10%) of the gross selling price or gross value in money of the goods or properties sold, bartered or exchanged, such tax to be paid by the seller or transferor: Provided, That the President, upon the recommendation of the Secretary of Finance, shall, effective January 1, 2006, raise the rate of value-added tax to twelve percent (12%), after any of the following conditions has been satisfied:
"(i) Value-added tax collection as a percentage of Gross Domestic Product (GDP) of the previous year exceeds two and four-fifth percent (2 4/5%); or
"(ii) National government deficit as a percentage of GDP of the previous year exceeds one and one-half percent (1 ½%).". . .
An event which is not uncertain but must necessarily happen cannot be a condition; the obligation will be considered as one with a term. (IV TOLENTINO, COMMENTARIES AND JURISPRUDENCE ON THE CIVIL CODE OF THE PHILIPPINES, 144).
4 I voted for the issuance of the temporary restraining order to prevent the disorderly implementation of the law that would have defeated its very purpose and disrupted the entire VAT system, resulting in less revenues. The rationale, therefore, of the rule against enjoining the collection of taxes, that taxes are the lifeblood of Government, leaned in favor of the temporary restraining order.