September 2012 Philippine Supreme Court Decisions on Tax Law

Here are select September 2012 rulings of the Philippine Supreme Court on tax law:

Court of Tax Appeals; Rules of Court; motion for reconsideration. At the outset, the Court holds that a dismissal of the petition is warranted in view of the petitioner’s failure to file before the Court of Tax Appeals en banc a motion for reconsideration of the assailed resolution. The settled rule is that a motion for reconsideration is a condition sine qua non for the filing of a petition for certiorari. Its purpose is to grant an opportunity for the court to correct any actual or perceived error attributed to it by the re-examination of the legal and factual circumstances of the case. The rationale of the rule rests upon the presumption that the court or administrative body which issued the assailed order or resolution may amend the same, if given the chance to correct its mistake or error. The “plain, speedy, and adequate remedy” referred to in Section 1, Rule 65 of the Rules of Court is a motion for reconsideration of the questioned order or resolution. While the rule is not absolute and admits of settled exceptions, none of the exceptions attend the present petition. Commissioner of Internal Revenue vs. Court of Tax Appeals and Ayala Land, Inc., G.R. No. 190680. September 13, 2012.

Continue reading

Advertisements

September 2012 Philippine Supreme Court Decisions on Civil Law

Here are select September 2012 rulings of the Supreme Court of the Philippines on civil law:

Civil Code

Contracts; capacity. Contracting parties must be juristic entities at the time of the consummation of the contract. Stated otherwise, to form a valid and legal agreement it is necessary that there be a party capable of contracting and a party capable of being contracted with. Hence, if any one party to a supposed contract was already dead at the time of its execution, such contract is undoubtedly simulated and false and, therefore, null and void by reason of its having been made after the death of the party who appears as one of the contracting parties therein. The death of a person terminates contractual capacity. De Belen Vda. de Cabalu, et al. v. Tabu, et al.; G.R. No. 188417. September 24, 2012

Contracts; future inheritance; contractual capacity – Under Article 1347 of the Civil Code, no contract may be entered into upon future inheritance except in cases expressly authorized by law. Paragraph 2 of Article 1347 characterizes a contract entered into upon future inheritance as void. The law applies when the following requisites concur: (1) the succession has not yet been opened; (2) the object of the contract forms part of the inheritance; and (3) the promissor has, with respect to the object, an expectancy of a right which is purely hereditary in nature. De Belen Vda. de Cabalu, et al. v. Tabu, et al.; G.R. No. 188417. September 24, 2012

Continue reading

September 2012 Philippine Supreme Court Decisions on Labor Law and Procedure

Here are select September 2012 rulings of the Philippine Supreme Court on labor law and procedure:

Breach of contract; Contract substitution; Constructive dismissal; Illegal recruitment. The agency and its principal, Modern Metal, committed a prohibited practice and engaged in illegal recruitment when they altered or substituted the contracts approved by the Philippine Overseas Employment Administration (POEA). Article 34 (i) of the Labor Code provides: It shall be unlawful for any individual, entity, licensee, or holder of authority to substitute or alter employment contracts approved and verified by the Department of Labor from the time of actual signing thereof by the parties up to and including the period of expiration of the same without the approval of the Secretary of Labor. Meanwhile, Article 38 (i) of the Labor Code, as amended by R.A. 8042, defined “illegal recruitment” to include the substitution or alteration, to the prejudice of the worker, of employment contracts approved and verified by the Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the period of the expiration of the same without the approval of the Department of Labor and Employment.

Furthermore, the agency and Modern Metal committed breach of contract by providing substandard working and living arrangements, when the contract provided free and suitable housing. The living quarters were cramped as they shared them with 27 other workers.  The lodging house was far from the jobsite, leaving them only three to four hours of sleep every workday because of the long hours of travel to and from their place of work, not to mention that there was no potable water in the lodging house which was located in an area where the air was polluted.  They complained with the agency about the hardships that they were suffering, but the agency failed to act on their reports.  Significantly, the agency failed to refute their claims.

Continue reading

September 2012 Philippine Supreme Court Decisions on Criminal Law and Procedure

Here are select September 2012 rulings of the Supreme Court of the Philippines on criminal law and procedure:

1.            REVISED PENAL CODE

Conspiracy; evidence. Conspiracy existed here as may be inferred from the concerted actions of the appellants and their co-accused, namely: (1) appellants and their co-accused brought Samuel to a waiting shed located on the left side of the road where the yellow pick-up service vehicle boarded by Mayor Tawan-tawan and his group would pass; (2) appellants and their co-accused, thereafter, assembled themselves on both sides of the road and surreptitiously waited for the aforesaid yellow pick-up service vehicle; (3) the moment the yellow pick-up service vehicle passed by the waiting shed, appellants and their co-accused opened fire and rained bullets thereon resulting in the killing and wounding of the victims; (4) immediately, appellants and their co-accused ran towards the house of Samuel’s aunt to get their bags and other stuff; (5) Samuel followed appellants and their co-accused; and (6) appellants and their co-accused fled. Conspiracy is very much evident from the afore-enumerated actuations of the appellants and their co-accused. They were synchronized in their approach to riddle with bullets the vehicle boarded by Mayor Tawan-tawan and his group. They were motivated by a single criminal impulse ─ to kill the victims. Conspiracy is implied when the accused persons had a common purpose and were united in its execution. People of the Philippines v. Wenceslao Nelmida, et al, G.R. No. 184500, September 11, 2012.

Continue reading

September 2012 Philippine Supreme Court Decisions on Commercial Law

Here are select September 2012 rulings of the Supreme Court of the Philippines on commercial law:

Corporate officers; liability for employee’s money claim.  In the absence of bad faith, a corporate officer cannot be held liable for the money claims of an employee. Bad faith must be establiscged clearly and convincingly as the same is never presumed. Misamis Oriental II Electric Service Cooperative (MORESCO II) vs. Virgilio M. Cagalawan. G.R. No. 175170. September 5, 2012.

Intra-corporate controversy; fraud.  It is essential for the complaint to show on its face what are claimed to be the fraudulent corporate acts if the complainant wishes to invoke the court’s special commercial jurisdiction. This is because fraud in intra-corporate controversies must be based on “devises and schemes employed by, or any act of, the board of directors, business associates, officers or partners, amounting to fraud or misrepresentation which may be detrimental to the interest of the public and/or of the stockholders, partners, or members of any corporation, partnership, or association,” as stated under Rule 1, Section 1 (a)(1) of the Interim Rules. The act of fraud or misrepresentation complained of becomes a criterion in determining whether the complaint on its face has merits, or within the jurisdiction of special commercial court, or merely a nuisance suit. Simny G. Guy, Geraldine G. Guy, Gladys G. Yao and the Heirs of the late Grace G. Cheu vs. Gilbert Guy/Simny G. Guy, Geraldine G. Guy, Gladys G. Yao and the heirs of the late Grace G. Cheu vs. The Hon. Ofelia C. Calo, in her capacity as Presiding Judge of the RTC-Mandaluyong City-Branch 211 and Gilbert Guy G.R. No. 189486/G.R. No. 189699. September 5, 2012

Continue reading