PERMISSIBLE DELEGATION and RULE-MAKING POWER II

Bohol Mateo

G.R. NO. 108358 JANUARY 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

August 13, 1986

Assessed the companys 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.

Commissioner of the Internal Revenue

ROH Auto Products Philippines Inc.

President Aquino

Then yielded legislative power.

Executive Order 41 A one-time tax amnesty on unpaid income taxes, which was later amended to include estate and donors taxes and taxes on business, for the taxable years 1981 to 1985.

August 22, 1986

October 1986 and November 1986 ROH availed of the amnesty and filed its Tax Amnesty Return and Supplemental Tax Amnesty Return, respectively.

Paid taxes due.

Since the company was able to avail itself of the tax amnesty, the deficiency tax notice should forthwith be cancelled and withdrawn.

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.

Commissioner

ROH

Whether or not the Commissioner has the power to deny the companys claim to the benefits of the amnesty law?

NO.

The added exception urged by the Commissioner based on Revenue Memorandum Order

Further restricting the scope of the amnesty

Administrative Legislation
Contrary to the mandate of the law which the regulation ought to implement

Supreme Court

Minister of Finance

Commissioner of Internal Revenue

Forbidden

The Commissioners additional exception against the company.

An act of administrative legislation

. 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;

Sec. 4. Exceptions

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.

G.R. NO. 118712 OCTOBER 6, 1995 LAND BANK OF THE PHILIPPINES VS. COURT OF APPEALS, PEDRO L. YAP, HEIRS OFEMILIANO F. SANTIAGO, AGRICULTURAL MANAGEMENT & DEVELOPMENT CORPORATION

Comprehensive Agrarian Reform Law (RA 6657) Acquired landholdings as subjects of transfer schemes to qualified beneficiaries DAR

Landowners

Pedro L. Yap, the Heirs of Ofemiliano Santiago, and the Agricultural Management and Development Corporation

Deposit money in trust of the land owners Landowners were aggrieved Filed a complaint before the SC Landbank

They alleged that DAR AO No. 6 Series 1990 is invalid because it is in contravention with the governing statute, RA 6657

Instead of depositing cash or bonds as payment for the land

DAR

AO is a valid exercise of its rulemaking 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 DAR

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?

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 quasilegislative 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

No.

Confined to implementing the law or putting it into effect Power of Administrative Agencies

Supreme Court

RA 6657

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 . . .

Very explicit

If there was intention to include a trust account among the valid modes of deposit.. Expressed or..

Deposit

Not in trust.

Qualifying words ought to have appeared

Cash

G.R. NO. 126496 APRIL 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

Unenfranchised applicant

Among others

BellTell

Excluded in the deliberations for service area assignments for local exchange carrier service.

RA 7692
International Comm. Corporation
Smart Comm., Inc.

Isla Comm., Co., Inc.

GMCR, Inc.

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

NTC Deputy Commissioners Fidelo Dumlao and Consuelo Perez

Study and recommendation

Memorandum showing approval

Signified their approval

Did not sign Commissioner Simeon Kintanar

Draft

NTC Circular No. 1-1-93, Memorandum Circular No. 3-1-93, and Order Declared the NTC as a single entity or noncollegial entity

Disapproved

Commissioner Kintanar

BellTels request

Whether or not NTC Circular No. 1-193, Memorandum Circular No. 3-1-93, and the Order of Kintanar declaring the NTC as a single entity or noncollegial entity is valid?

Null and void No. Contrary to law NTC Circular No. 1-1-93 Memorandum Circular No. 3-1-93 Order of Kintanar

Supreme Court

Administrative regulations

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. Institutionalization of the one-man rule in the NTC EO 146 Assailed laws

Derive validity

Statute 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.

Intended to implement

Commissioner Kintanar
Does not speak for and in behalf of the NTC

The vote alone of the chairman of the commission

Not sufficient to legally render an NTC order, resolution or decision

Absent the required concurring vote coming from the rest of the membership of the commission to at least arrive at a majority decision

G.R. NO. 110526 FEBRUARY 10, 1998 ASSOCIATION OF PHILIPPINE COCONUT DESICCATORS VS. 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

Philippine Coconut Authority

In charge of the issuing of licenses to would-be coconut plant operators

Board Resolution No. 01893 PCA No longer require those wishing to engage in coconut processing to apply for licenses as a condition for engaging in such business.

The registration would be limited to the "monitoring" of their volumes of production and administration of quality standards.

But this caused cut-throat competition, underselling, smuggling, and the decline of coconut-based commodities.

To promote free enterprise unhampered by protective regulations and unnecessary bureaucratic red tapes.

Certificates of Registration

To those wishing to operate desiccated coconut processing plants.

PCA

Not to approve the resolution!

No reply

Association of Philippine Coconut Desiccators

Office of the President

Whether or not the PCAs board resolution which no longer requires those wishing to engage in coconut processing to apply to it for a license or permit valid?

No.

Abdicates its role provided by law

Supreme Court Charged with the duty of carrying out the States policy to promote the rapid integrated development of the coconut industry.

By limiting the scope of registration to merely monitoring volumes of production

PCA

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.

Free enterprise does not call for removal of protective regulations

Any change in policy must be made by the legislative department of the government.

G.R. NO. 127685 JULY 23, 1998

BLAS F. OPLE VS. 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 CHAIRMAN OF THE COMMISSION ON AUDIT

Administrative Order No. 308 "Adoption of a National Computerized Identification Reference System."

Pres. Fidel V. Ramos

Under it, a citizen cannot transact business with government agencies delivering basic services to the people without the contemplated identification card.

In charge with the implementation of AO 308

Senator

Blas Ople

Taxpayer

Petitioned to assail AO

Member of GSIS

Members of the Inter-Agency Coordinating Committee

Executive Secretary Ruben Torres and the heads of the government agencies

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?

All-encompassing in scope Establishes a system of identification Affects the life and liberty of every Filipino citizen and foreign resident

No.

AO 308

Violates their right to privacy

Supreme Court

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

Primacy of national security

Requires a delicate adjustment of various contending state policies

Choice of policies

Extent of privacy interest against dossier-gathering by government

No citizen will refuse to get this identification card for no one can avoid dealing with government.

Without the ID

Law
Confers no right Imposes no duty AO 308 Affords no protection Creates no office

A citizen will have difficulty exercising his rights and enjoying his privileges.

G.R. NO. 112024 JANUARY 28, 1999 PHILIPPINE BANK OF COMMUNICATIONS VS. COMMISSIONER OF INTERNAL REVENUE, COURT OF TAX APPEALS AND COURT OF APPEALS

Filed Annual Income Tax Returns for the year-ended 1986 Paid its quarterly income tax for the first and second quarters of 1985

Reported a net loss

Philippine Bank of Commerce

No taxable income

Earned rental income for both 1985 and 1986

Corresponding tax thereof was withheld and remitted by the lessees to the BIR.

On 1987 or after more than two years from payment of taxes Pending investigation in the BIR

PBCom filed for a refund

Filed a petition for review with the Court of Tax Appeals

Denied

National Internal Revenue Code

Application for refund must be made within two years from the payment of tax.

CTA

RMC 7-85 Changed the prescriptive period of two years to ten years on claims of excess quarterly income tax payments Acting Commissioner of Internal Revenue

PBCom

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?

Merely interpretations Yes. Administrative Issuances

Supreme Court

Administrative agencies

Not expansions of the provisions of law

No administrative power

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. 131787 MAY 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

PD 1752,as amended by RA 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

China Banking Corporation

CBC Properties and Computer Center, Inc.

Certificates of Waiver

Superior retirement plan

HDMF Board

Amendment to the Rules and Regulations Implementing RA 7742 and Revised Guidelines
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.

CBC and CBCPCCI

A petition to declare void the Amendment and Guidelines

Exceeded its rulemaking power

Issued in excess of jurisdiction and with grave abuse of discretion amounting to lack of jurisdiction

Whether or not the Amendment Guidelines issued by the HDMF Board were in excess of its rulemaking power?

Yes.
Amendment and Guidelines

Supreme Court

Null and void

The enabling law conditions exception upon the existence of a provident retirement fund and/or housing plan, not both. CBC and CBC-PCCI

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.

HDMF Board

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

Authority granted by the legislature

Provident retirement fund AND housing plan

Provident retirement fund

Exceptions

Provident housing plan

CBC and CBC-PCCI

Correct

THE END