Thursday, September 12, 2019

CASE DIGEST: PHILEX MINING CORP. V. CIR - G.R. NO. 125704

 CASE DIGEST: PHILEX MINING CORP. V. COMMISSIONER OF INTERNAL REVENUE (CIR)


PHILEX MINING CORP. v. CIR

GR No. 125704, August 28, 1998

294 SCRA 687


DOCTRINE:

Taxes cannot be subject to compensation for the simple reason that the government and the taxpayer are not creditors and debtors of each other; Debts are due to the Government in its corporate capacity, while taxes are due to the Government in its sovereign capacity. Philex Mining Corporation vs. Commissioner of Internal Revenue, 294 SCRA 687, G.R. No. 125704 August 28, 1998



FACTS:

Petitioner Philex Mining Corp. assails the decision of the Court of Appeals affirming the Court of Tax Appeals decision ordering it to pay the amount of P110.7 M as excise tax liability for the period from the 2nd quarter of 1991 to the 2nd quarter of 1992 plus 20% annual interest from 1994 until fully paid pursuant to Sections 248 and 249 of the Tax Code of 1977. Philex protested the demand for payment of the tax liabilities stating that it has pending claims for VAT input credit/refund for the taxes it paid for the years 1989 to 1991 in the amount of P120 M plus interest. Therefore these claims for tax credit/refund should be applied against the tax liabilities.



ISSUE:

Can there be an off-setting between the tax liabilities vis-a-vis claims of tax refund of the petitioner?



HELD:

No. Philex's claim is an outright disregard of the basic principle in tax law that taxes are the lifeblood of the government and so should be collected without unnecessary hindrance. Evidently, to countenance Philex's whimsical reason would render ineffective our tax collection system. Too simplistic, it finds no support in law or in jurisprudence.

Taxes cannot be subject to compensation for the simple reason that the government and the taxpayer are not creditors and debtors of each other. There is a material distinction between a tax and debt. Debts are due to the Government in its corporate capacity, while taxes are due to the Government in its sovereign capacity.


There can be no off-setting of taxes against the claims that the taxpayer may have against the government. A person cannot refuse to pay a tax on the ground that the government owes him an amount equal to or greater than the tax being collected. The collection of a tax cannot await the results of a lawsuit against the government.


It must be noted that a distinguishing feature of a tax is that it is compulsory rather than a matter of bargain. Hence, a tax does not depend upon the consent of the taxpayer.



Monday, March 18, 2019

OPINION RE: THE CASE OF SPELUNCEAN EXPLORERS

 

OPINION RE: THE CASE OF SPELUNCEAN EXPLORERS



SUMMARY OF FACTS:


    A group of explorers were trapped in a cave due to a landslide. The remote location made rescue difficult, time-consuming, and expensive. Ten workmen were killed in the rescue. It was only after 32 days that they were rescued.


    On the 20th day, the explorers discovered that they had a two-way wireless machine that enabled them to communicate with the people, such as engineers and medical experts, outside. Through said equipment, the engineers informed the explorers that at least 10 more days would be needed to rescue them. Upon further inquiries, a team of medical experts informed the explorers that considering the conditions and rations inside the cave, the chances of survival for a further 10 days were remote. The explorers asked whether they would survive if they resorted to eating one of their number. It was reluctantly confirmed they could. One of the explorers, Roger Whetmore, asked if casting lots as to whom should be eaten was advisable; no physician, judge, government official, minister or priest provided an answer. No further messages were received after that. Whetmore proposed that they derive the necessary sustenance from killing and eating one of their number. Whetmore also proposed casting lots, using a pair of dice he happened to have with him, to determine who is going to be eaten. All the other explorers agreed with Whetmore's idea and thereafter devised a method of using the dice to cast lots. However, before the dice were thrown, Whetmore withdrew from the arrangement, and claimed that he would wait another week. The others charged him with a breach of faith and proceeded to cast the dice. Before throwing the dice on his behalf, the defendants asked Whetmore to declare any objections to the fairness of the throw. He did not object, and the throw went against him. Consequently, the rest of the group killed and ate Whetmore.


    After the rescue of the defendants, and after they had completed a stay in a hospital where they underwent a course of treatment for malnutrition and shock, they were indicted for the murder of Roger Whetmore.


    The trial judge ruled the defendants guilty of murder and sentenced them to be hanged. The jury joined in a communication to the Chief Executive, requesting the sentence be commuted to imprisonment of six months. The trial judge did similar. The Chief Executive waits for the Supreme Court’s disposition of the petition of error before making a decision regarding clemency.





THEORETICAL POSITION OF EACH JUSTICES

AND WHAT THEY THINK THE ROLE AS A JUDGE DEMANDS:


    CHIEF JUSTICE TRUEPENNY not only holds the decision of the trial court to be fair and wise, but also believes that it is the only course to be taken. The Chief Justice acknowledges that no exception to the statutory provision applies, regardless of how sympathetic people may be. The Chief Justice prefers to rely on possible executive clemency, described as ‘mitigating the rigors of the law’, and proposes that the Supreme Court joins in the communication to the Chief Executive, expecting clemency to be granted. He firmly held that justice can be done this way, without disregarding either the letter or spirit of the law. Hence, Chief Justice Truepenny UPHOLDS THE CONVICTION.


    JUSTICE FOSTER rules, on the other hand, that the statute is inapplicable for two separate reasons. First, once the explorers were cut off from society, they returned to a state of nature, and society's laws did not apply to them. Second, the statute can be applied to the men but the purpose of the statute would not be served by applying it in this case. The statute must not be taken literally. Justice Foster concludes that CONVICTION MUST BE SET ASIDE.


    JUSTICE TATTING believes that the statute clearly applies. However, he could not live with himself if he voted to affirm because the result would be evil. Therefore, he RECUSES.

    JUSTICE KEEN bases his decision on the principle that the judge's role is to apply the statute. Their role is not to determine whether the actions were "good" or "bad," or whether the statute is good or bad policy. Also, it is not the role of the judge to tell the executive what to do, other than to offer his/her opinion as a private citizen. He contends that the statute applies on its own terms to this case. Hence, Justice Keen AFFIRMS THE CONVICTION.


    JUSTICE HANDY finds that the statute clearly applies, but the judge must exercise common sense. Further, public opinion overwhelmingly supports reversal, and it is clear that the executive will not grant clemency. Therefore, it falls to the court. Justice Handy concludes that the trial court's DECISION MUST BE REVERSED.



WHO IS THE MOST AGREEABLE JUSTICE?


Justice Keen.


    Keen's opinion begins by excluding executive clemency and the morality of the defendants' actions as relevant factors to the court's deliberations. Rather, the question before the court is purely one of applying the legislation, and determining whether the defendants willfully took the life of Whetmore. He criticizes the other judges for failing to distinguish the legal from the moral aspects of the case. While he shares their preference that the defendants be spared from death, he respects the obligations of his office to put his "personal predilections" of what constitutes justice out of mind when interpreting and applying the law.



WHO IS THE MOST PERSUASIVE?


Justice Foster.


    Through the use of idealistic arguments, readers could be easily persuaded by the conclusion of Justice Foster that the defendants must be acquitted. At first, I was fascinated with Justice Foster's line of reasoning. Considering my sympathy to the defendants, Justice Foster did very good in presenting his arguments. He takes the view that the defendants should be acquitted, putting forward two arguments, to wit: (1) as the explorers were not anymore in a situation in which coexistence of men was possible, not the ‘law of society’ applies, but the law of nature; and (2) A man may break the letter of the law without breaking the law itself. The statute should not be taken literally. According to Justice Foster, self-defense should be considered. Although self-defense cannot be reconciled with the words of the statute it can be reconciled with the purpose of the statute.



WHY I AGREE WITH JUSTICE KEEN &

WHY I DISAGREE WITH JUSTICE FOSTER:


    As beautiful as it may seem, Justice Foster's arguments are not applicable in this case. I agree with Justice Keen that the primary role of a judge is to apply the law. When the law is clear, then it leaves no room for interpretation but for application.


    The law applies to the explorers. – The explorers were still within the State's jurisdictional area. Hence, the statutes and laws of the same must apply. Natural law must only be applied when there is no applicable law or statute. In such case, judges must resort to equity. However, elementary is the rule in statutory construction that when the law is clear, there is nothing else to be done but to apply it. Based on the findings of the trial court, which is the trier of facts, the defendants willfully murdered Roger Whetmore. The same was upheld by the higher court. Hence, positive law must be applied, rather than equity or natural law.


    Self-defense does not apply. – Self-defense cannot be applied in the present case. In self-defense, killing is justified in a way that the defendant kills his aggressor in order to survive. The idea is to eliminate the immediate threat that would cause the defendant to be killed or gravely harmed. This is not the case in the Speluncean explorers. Roger Whetmore was not even a threat; starvation was the immediate threat. Yet, the others chose to kill an innocent man to prevent starvation. With respect to the killing of Roger Whetmore, such act should not be viewed in light of self-defense. Hence, contrary to Justice Foster's belief, the killing was not justified.


    Necessity is not a justification. – I am against the idea that the majority is more valuable than the minority. This is one of the reasons why laws exist: to protect the rights and lives of the minority. Hence, it is wrong to kill one person in exchange for four lives. It must be noted that 10 rescuers died in the course of the rescue. But that did not stop the government from trying to rescue the 5 people who are stuck in the cave. If necessity is a justification, then the death of 10 must be enough reason to stop the operation of rescuing 5 lives. It is also erroneous to conclude that because 10 rescuers died for the lives of the 4 then it is only right to kill 1 to save the same. This reasoning does not make sense. The 10 rescuers were not sacrificed. They were put into mission. Unfortunately, they died during the process. But, certainly, they were not killed. Therefore, whether or not the act was done out of necessity is irrelevant, because necessity in this case is not a justified reason to kill.


    The agreement was invalid and unlawful. – Even though Whetmore first proposed that cannibalism might make it possible for the members to survive, and he was the one who first proposed the use of method of casting lots, none of these points is enough to bar Whetmore from withdrawing from such agreement. Charging him with a "breach of faith" was unfounded. He withdrew not from a valid contract, but from one that is against the law. Hence, there is nothing unfair and unlawful in Whetmore's act of backing out because he had all the right to withdraw from said invalid agreement. In addition, Whetmore's act of not objecting against the fairness of the throw cannot be held against him. Such silence is not tantamount to an approval.


    By including Whetmore, the others wanted only to decrease their chance of being a sacrifice. If there are only four participants, then each man's chance of dying is 25%. If we include Whetmore, each man's chance of dying now becomes 20%. In short, what the defendants did in this case was calculated and willfully done. The motive for murder is clear. They acted out of self-interest, to increase the odds of their individual survival by forcibly including Whetmore.


    Conclusion. – To summarize, it has been established that four of the defendants killed a man. It was not done in self-defense. One can argue that it was done out of necessity, but such reason is not a justification. Yet, the explorers willfully committed the felonious act. The law clearly provides penalty for the crime of murder. Therefore, each defendant should suffer the consequence as prescribed by law. This must be done, not to punish the guilty, but to condemn the evil act. It is to prevent the case from becoming a future precedence, and to protect each and every person's right to life, no matter how outnumbered they are.

Wednesday, November 29, 2017

My First Bar Ops Experience!

    The Philippine Bar examination comes once every year. I found this year's time of bar exams special, because it was my first time to actually participate in Bar operations. Thanks to the opportunity that was given to me by my law school. As a first year student of Law, this experience bolstered my morale, and boosted my eagerness to succeed.



DAY I


    It was a sunny Saturday. A perfect day to feel the heat, and brush off the negativity. My first day participating in the Bar Operations. I, with my law schoolmates, waited outside the Law Building for the Bar examinees to come out. We were quiet at first, but as soon as the examinees started to walk out of the building, we cheered and shouted our hearts out. With energy so strong, it gave me goosebumps. Several signboards were flashed, saying “Good luck”. I waved my personal signboard with a caricature, which I drew, saying “You are meant to be a lawyer! FIGHT!” And as I saw the examinees walk into the bus, I watched them with respect and gladness thinking that they are the ones who made it in law school. I saw their faces and told myself that these are the warriors who did not give up. Their eyes are set on a bigger goal, and they know that the battle is not yet over. And so, as the bus took off, with my spirit filled, I smiled and whispered to myself “fight.”


DAY II


    It was another sunny Saturday. We had the chance to serve the bar candidates who were staying in the school-sponsored hotel. I found joy in simple acts such as preparing the mini backpacks of the Bar candidates, knowing that it will be of help to the examinees. I enjoyed delivering their ordered foods door to door in their hotel rooms with my classmates. And as I saw them open their doors, it inspired me to see their friendly faces. Despite the intensifying aura which the bar exam brought, they still found strength to show their smiles, and said thank you. This show of gratitude made me understand that they appreciated the simple help that we were offering. Because of that, carrying the gallons of water did not burden me at all, knowing that it was for the bar exam takers who were already carrying so much heavier weight-- the heavy burden of doubt and fear.


DAY III


    One Sunday, after our make up class in a major subject, my classmates and I went to UST where the bar exam was being held this year. As I sat on the back seat of the car, I had the opportunity to observe my classmates who were sitting at the passenger seat right in front of me. Someone was sleeping, maybe sleepless and tired, some were discussing law related subjects, some were just staring at the window, as I sat there silently in the middle of Espana's traffic and busy street, I realized that I still have to walk a very long road before I become a lawyer. Suddenly, while waiting for the red light to turn green, the famous quote popped in my mind, “I'm not saying it is going to be easy. I'm saying it is going to be worth it.”


    When we arrived at the destination, we were instructed by the student leaders to head to our respective areas. I volunteered in holding the banner of my school. In the street of Padre Noval, the name of my school was proudly waved and raised high. It became clearer to me that someday, if God allows, it will be my turn to represent my law school. And hopefully, my school will also be proud of me, as we are proud of our bar candidates.


    Contrary to the opinion that the bar takers don't really need groups giving them support, assistance, and services because they prefer to be left alone to focus on their review, or to relax, I strongly believe otherwise. They need the support and service of others, even if they don't actually say it. One smile from someone can save another from the darkness of fear. One pat on the back can be a source of strength to go on and fight. Simple words of encouragement can make the doubtful a believer. Simple acts of support can make a person feel that there are people behind them who are believing in them, and reminding them that they are not alone in their battles in life. And so if there is a chance to make people feel better, to make them stronger, or to help them lift their heads up, then we must always grab that opportunity.


    In the Bar Operations, I believe that our simple acts of support and help gave a positive impact, no matter how small or big, to the bar takers. And I can surely say that I would do it again, without thinking twice, next year. And when the time comes for me to represent my law school, I would be glad and thankful to accept help from others. It would be so sweet seeing my fellow aspiring lawyers chanting and cheering “FIGHT!” Because I strongly believe that the power of helping and supporting each other is like fuel added to the fire to keep it burning strongly, and blazing brightly, casting away the shadows of doubt and fear.


CASE DIGEST: DE LEON V. ONG - G.R. NO. 170405

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