Cases under Permissible Delegation and Rule-making Power
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Transcript of Cases under Permissible Delegation and Rule-making Power
PERMISSIBLE DELEGATION
andRULE-MAKING
POWER II
BoholMateo
G.R. NO. 108358JANUARY 20, 1995
COMMISSIONER OF INTERNAL REVENUE
VS.THE HON. COURT OF
APPEALS, R.O.H. AUTO PRODUCTS PHILIPPINES,
INC. AND THE HON. COURT OF TAX APPEALS
Assessed the company’s deficiency income and business taxes for fiscal
years ended September 30, 1981 and September 30, 1982 in an aggregate
amount of P1,410,157.71.
August 13, 1986
Commissioner of the Internal
Revenue
ROH Auto Products
Philippines Inc.
August 22, 1986
Executive Order 41
A one-time tax amnesty on unpaid income taxes,
which was later amended to include estate and
donor’s taxes and taxes on business, for the taxable
years 1981 to 1985.
President Aquino
Then yielded
legislative power.
Paid taxes due.
October 1986 and November
1986 ROH availed of the amnesty
and filed its Tax Amnesty Return
and Supplemental Tax Amnesty
Return, respectively.
Commissioner
Since the company was able to avail itself of the
tax amnesty, the deficiency tax notice should forthwith be
cancelled and withdrawn.
ROH
Revenue Memorandum Order implementing EO 41 had construed the amnesty
coverage to include only assessments issued by the BIR after the promulgation of the
executive order and not to assessments theretofore made.
Whether or not the Commissioner has the power to deny the company’s claim
to the benefits of the amnesty law?
Contrary to the mandate of the law which the
regulation ought to
implement
Further restrictin
g the scope of
the amnesty
The added exception
urged by the Commissioner
based on Revenue
Memorandum Order
Administrative Legislation
Supreme Court
NO.
More fundamental
Not supplant nor modify it.
Administrative rules and regulations are intended to carry out the law.
All such issuances must not override, but must remain consistent and in harmony with the law they seek to apply and implement.
Rules and regulations, as
well as administrative opinions and rulings, ordinarily should deserve weight and respect.
Promulgation of needful rules and regulations for the effective
enforcement of internal revenue laws cannot be controverted by the courts.
Minister of
Finance
Commissioner of
Internal Revenue
The Commissioner’s additional exception
against the company.
An act of administrati
ve legislation
Sec. 4. Exceptions. — The following taxpayers may not avail themselves of the amnesty herein granted:
a) Those falling under the provisions of Executive Order Nos. 1, 2 and 14; b) Those with income tax cases already filed in Court as of the effectivity hereof;
c) Those with criminal cases involving violations of the income tax already filed in court as of the effectivity filed in court as of the
effectivity hereof;
d) Those that have withholding tax liabilities under the National Internal Revenue Code, as amended, insofar as the said liabilities are concerned; e) Those with tax cases pending investigation by the Bureau of Internal
Revenue as of the effectivity hereof as a result of information furnished under Section 316 of the National Internal Revenue Code, as amended; f) Those with pending cases involving unexplained or unlawfully acquired wealth
before the Sandiganbayan; g) Those liable under Title Seven, Chapter Three (Frauds, Illegal Exactions and Transactions) and Chapter Four (Malversation of Public Funds and Property) of the Revised Penal Code, as
amended.
Forbidden
G.R. NO. 118712OCTOBER 6, 1995
LAND BANK OF THEPHILIPPINES
VS.COURT OF APPEALS,PEDRO L. YAP, HEIRS
OFEMILIANO F. SANTIAGO,AGRICULTURAL MANAGEMENT
& DEVELOPMENTCORPORATION
Landowners
DAR
Pedro L. Yap, the Heirs of Ofemiliano Santiago,
and the Agricultural Management and
Development Corporation
“Comprehensive Agrarian Reform Law (RA 6657)”
Acquired landholdings as
subjects of transfer schemes to qualified
beneficiaries
They alleged that DAR AO No. 6 Series 1990 is invalid
because it is in contravention with the
governing statute, RA 6657
Landowners were aggrieved
Filed a complaint before the
SC
Instead of depositing cash or bonds as payment for the
land DAR
Landbank
Deposit money in trust of the land
owners
DAR
AO is a valid exercise of its rule-making power pursuant
to Section 49 of RA 6657. The issuance of the
“Certificate of Deposit” by Land Bank was a substantial
compliance with Section 16(e).
Land Bank
The issuance of the CDs was in
consonance with Circulars 29, 29-A and
54 of the Land Registration Authority
where the words “reserved/deposited”
were also used.
Whether or not the AO issued by DAR stating that payment be deposited in trust instead of
depositing cash or bond valid?
Power of Administrative Agencies
Confined to implementing
the law or putting it into
effect
Administrative construction is not absolute, it may be set aside by judiciary if there is an error of law, a grave abuse of power or lack of jurisdiction or grave abuse of discretion clearly conflicting with either the letter or
the spirit of a legislative enactment
The purpose of quasi-legislative power is to
carry provisions of law into effect
In case there is a
discrepancy between the basic
law and an implementing rule or regulation,
it is the former that
prevails
Supreme Court
No.
Section 16(e). Procedure for Acquiring Private Lands - Upon receipt by the landowner of the corresponding payment or, in case of rejection or no response from the landowner, upon the deposit with an accessible bank designated by the DAR of the compensation in cash or in LBP bonds in accordance with this Act, the DAR shall take immediate possession of the land and shall request the proper Register of Deeds to issue a Transfer
Certificate of Title (TCT) in the name of the Republic of the Philippines . . .”
RA 6657
Cash
Deposit
Very explicit
Not in trust.
If there was intention to include a “trust
account” among the valid modes of
deposit..
Expressed or..
Qualifying words ought
to have appeared
G.R. NO. 126496APRIL 30, 1997
GMCR, INC.; SMART COMM., INC.; INTERNATIONAL
COMM. CORP.; ISLA COMM. CO., INC.
VS.BELL TELECOMM. PHIL.,
INC.; THE NATIONAL TELECOMM. COMMISSION
AND HON. SIMEON L. KINTANAR IN HIS OFFICIAL
CAPACITY AS COMMISSIONER OF THE
NATIONAL TELECOMM.
Bell Telecommunication
Philippines, Inc.
“Application for a Certificate of Public Convenience and Necessity to
Pprocure to install, operate and maintain a Nationwide Integrated
Telecommunications Services and to Charge Rates, and with further
request for the issuance of Provisional Authority”
NLRC
BellTell
Smart Comm.,
Inc.
GMCR, Inc.
Isla Comm., Co., Inc.
International Comm. Corporatio
n
Among others
Unenfranchised applicant
Excluded in the
deliberations for service
area assignments
for local exchange
carrier service. RA
7692
BellTel was granted a congressional
franchise to carry on the business of
providing telecommunications
services in and around the country.
Respondent filed with
NTC a second
application.
Common Carriers Authorization Department
Study and recommendati
on
NTC Deputy Commissioners
Fidelo Dumlao andConsuelo Perez
Memorandum showing approval
Commissioner Simeon Kintanar
Signified their approval
DraftDid not sign
Commissioner Kintanar
“NTC Circular No. 1-1-93, Memorandum Circular No. 3-1-93,
and Order”
Declared the NTC as a single entity or
non-collegial entity
BellTel’s request
Disapproved
Whether or not NTC Circular No. 1-1-93, Memorandum Circular No. 3-1-93, and the Order of
Kintanar declaring the NTC as a single entity or non-collegial
entity is valid?
Supreme Court
No.
NTC Circular No.
1-1-93Memorandum
Circular No. 3-1-93
Order of Kintanar
Null and void
Contrary to law
Administrative
regulations
Derive validity
Statute
Intended to implement
EO 146
Organized NTC as a three-man commission, the three members of the commission each has one vote to cast
in every deliberation concerning a case or any incident therein that is
subject to the jurisdiction of the NTC.
Assailed laws
Institutionalization of the one-man rule in the
NTC
Attempts to validate the one-man rule in the NTC as executed by persons with the
selfish interest of maintaining their illusory hold of power.
Commissioner Kintanar
Does not speak for and in
behalf of the NTC
The vote alone of the chairman of
the commission
Absent the required
concurring vote
coming from the
rest of the membershi
p of the commissio
n to at least arrive
at a majority decision
Not sufficient to legally render an NTC order, resolution or decision
G.R. NO. 110526FEBRUARY 10, 1998
ASSOCIATION OFPHILIPPINE COCONUT DESICCATORS
VS.PHILIPPINE COCONUT AUTHORITY
Philippine Coconut Authority
PD 232
“An independent public corporation to promote
the rapid integrated development and
growth of the coconut and other palm oil
industry and to ensure that coconut farmers
become direct participants in such
development through a regulatory scheme set
up by law”
In charge of the issuing of licenses
to would-be coconut plant
operators
PCA
Board Resolution No. 018-93
No longer require those wishing to
engage in coconut processing to apply for licenses as a condition for engaging in such
business. To promote free enterprise
unhampered by protective regulations
and unnecessary bureaucratic red
tapes.
But this caused cut-throat competition, underselling, smuggling,
and the decline of coconut-based commodities.
The registration would be limited
to the "monitoring"
of their volumes of production and
administration of quality standards.
PCA
“Certificates of
Registration”
To those wishing to operate desiccated coconut processing plants.
Association of Philippine Coconut
Desiccators
Office of the President
Not to approve the resolution!
No reply
Whether or not the PCA’s board resolution which no longer requires those wishing to
engage in coconut processing to apply to it for a license or permit
valid?
Supreme Court
No.
PCA
Charged with the duty of carrying out the State’s policy to promote the
rapid integrated development of the coconut industry.
By limiting the scope of
registration to merely
monitoring volumes of production
Abdicates its role provided by
law
PCA
Would simply be compiling statistical data but if violations
are made, there would not be
anything it could do
Give the market forces control on how the coconut
industry will develop.
Beyond the power of an administrative agency
to dismantle it.
Any change in policy must be made by the legislative
department of the government.
“Free enterprise does not call for
removal of protective
regulations”
G.R. NO. 127685JULY 23, 1998
BLAS F. OPLEVS.
RUBEN D. TORRES,A. AGUIRRE, H. VILLANUEVA,
C. HABITO, R. BARBERS, C. REODICA, C. SARINO, R.
VALENCIA, T. P. AFRICA, HEAD OF THE NATIONAL COMPUTER
CENTER AND CHAIRMANOF THE COMMISSION
ON AUDIT
Pres. Fidel V. Ramos
Administrative Order No. 308
"Adoption of a National
Computerized Identification
Reference System."
Under it, a citizen cannot transact business with
government agencies delivering basic services to the
people without the contemplated
identification card.
Blas Ople
Senator
Taxpayer
Member of GSIS
Petitioned to assail
AOExecutive Secretary Ruben
Torres and the heads of the government agencies
Members of the Inter-Agency
Coordinating Committee
In charge with the implementation of AO 308
Whether or not the President can issue an Administrative Order for the adoption of a
National Computerized Identification Reference
System, independent of a legislative act?
Supreme Court
No.
Establishes a system of identificatio
n
All-encompassing
in scope
Affects the life and liberty of every
Filipino citizen and foreign resident
Violates their right to
privacy
AO 308
Primacy of national security
Extent of privacy interest against dossier-gathering by government
Choice of policies
Redefines the parameters of
some basic rights of our citizenry
vis-a-vis the State.
As well as the line that separates the administrative
power of the President to make rules and the
legislative power of Congress
Law
Requires a delicate
adjustment of various
contending state policies
Law
AO 308
Imposes no duty
Confers no right
Affords no protection
Creates no office
No citizen will refuse to get this identification card for no one can avoid dealing with
government.
Without the ID
A citizen will have difficulty exercising his rights and enjoying his privileges.
G.R. NO. 112024JANUARY 28, 1999
PHILIPPINE BANK OF COMMUNICATIONS
VS.COMMISSIONER OF
INTERNAL REVENUE, COURT OF TAX APPEALS AND
COURT OF APPEALS
Philippine Bank of
Commerce
Paid its quarterly income
tax for the first and second
quarters of 1985
Filed Annual Income Tax
Returns for the year-ended
1986
Reported a net loss
Earned rental income for both 1985 and 1986
Corresponding tax thereof was withheld and remitted by the lessees to the BIR.
No taxable income
On 1987 or after more than two years from
payment of taxes
Pending investigation in
the BIR
Filed a petition for review with the Court of Tax Appeals
PBCom filed for a refund
CTA
“National Internal Revenue Code”
Application for refund must be
made within two years from the payment of tax.
“RMC 7-85”
Changed the prescriptive period of two years to ten years on claims of excess
quarterly income tax payments
Denied
PBCom
Acting Commission
er of Internal
Revenue
Whether or not the changing of the prescriptive period by the Acting Commissioner of
Internal Revenue is an exercise of legislative power
and is thus invalid?
Supreme Court
Yes.
No administrative power
Administrative Issuances
Merely interpretations
Not expansions of the provisions of law
Administrative agencies
“National Internal Revenue Code of 1977”
Section 230. The taxpayer may file a claim for refund or credit with the Commissioner of Internal Revenue, within two (2) years after payment
of tax, before any suit in CTA is commenced. The two-year
prescriptive period provided, should be computed from the time of filing
the Adjustment Return and final payment of the tax for the year.
Acting Commissioner of Internal
Revenue
Change prescriptive period from two years to
ten years.
Inconsistency
Legislated guidelines contrary to the statute passed by Congress.
G.R. NO. 131787MAY 19, 1999
CHINA BANKING CORPORATION AND CBC
PROPERTIES AND COMPUTER CENTER INC.
VS.THE MEMBERS OF THE
BOARD OF TRUSTEES, HOME DEVELOPENT MUTUAL FUND (HDMF); HDMF PRESIDENT;
AND THE HOME MUTUAL DEVELOPMENT FUND
China Banking Corporation
CBC Properties and Computer Center, Inc.
PD 1752,as amended byRA 7742
Section 19. Employers who have their own existing
provident and/or employees-housing plan may register for annual certification for waiver or suspension from coverage or participation in the Home Development Mutual Fund…”
Superior retirement plan
Certificates of Waiver
HDMF Board
“Amendment to the Rules and
Regulations ImplementingRA 7742 and
RevisedGuidelines “
A company must have a
provident/retirement AND housing plan superior to that
provided by the Pag-IBIG Fund to be entitled to the
exemption or waiver.
Exceeded its rule-making power
Issued in excess of jurisdiction
and with grave abuse of discretion
amounting to lack of
jurisdiction
CBC andCBC-PCCI
A petition to declare void the Amendment and
Guidelines
Whether or not the Amendment Guidelines issued
by the HDMF Board were in excess of its rule-making
power?
Supreme Court
Yes.Amendment
and Guidelines
Null and void
CBC and CBC-PCCI
HDMF Board
The enabling law conditions exception
upon the existence of a provident retirement fund and/or housing
plan, not both.
The use of “and/or” can only be used interchangeably not together and that the option of making it either both (applying
“and”) or any one (applying “or”) belongs to the board of trustees.
Rules and regulations
Delegated power to create new or
additional legal provisions
Have the power and effect of law
Should be within the scope of the authority granted by the legislature to the administrative agency
Exceptions
Provident retirement fund AND housing plan
Provident retirement fund
Provident housing plan
Authority granted by the
legislature
CBC andCBC-PCCI
Correct
THE END