ABAKADA Guro et.al. v.

Ermita [469 SCRA 1 2005]

Nature: Se!ial Civi! A!tio" i" t#e Sureme Court
Facts: $#e %#ilii"e& 'a& a(out to #ave a &evere )i"a"!ial !ri&i& a"* o"e o) t#e 'a+&
t#at t#e ,over"me"t t#ou,#t o) to &olve t#i& i& to ame"* t#e ta- &+&tem o) t#e R%. i"
or*er )or t#e ,over"me"t to reve"t )urt#er e!o"omi! *ama,e. /it# t#i&. t#e
le,i&lature e"a!te* RA 0o. 9112 '#i!# ame"*e* &e!tio"& o) t#e 0atio"al 3"ter"al
Reve"ue Co*e o) 1992.
$#e Co",re&& a&&e* 4B 0o&. 1555 a"* 1205. '#ile t#e Se"ate. ta5i", i"to
!o"&i*eratio" t#e &ai* 4B&. a&&e* SB 0o. 1950. All t#e&e u"*er,o"e 1 rea*i",&
ea!#. a"* 'ere t#e" *i&!u&&e* i" t#e BCC. $#e BCC Reort 'a& t#e" arove* (+
(ot# #ou&e&. a"* t#e e"rolle* !o+ o) t#e !o"&oli*ate* 4ou&e a"* Se"ate ver&io" 'a&
tra"&mitte* to t#e %re&i*e"t '#o &i,"e* it i"to la' a& RA 9112.
6" 7ul+ 1. t#e e))e!tivit+ *ate o) t#e RA. t#e SC i&&ue* a $R6 )or t#e uro&e o)
!lari)+i", i&&ue& re,ar*i", t#e RA. 4ere are &ome o) t#e artie& '#o )ile* rote&t
re,ar*i", t#e &ai* RA:
1. ABAKADA GURO Party List, et.al: 8ue&tio" t#e !o"&titutio"alit+ o) &e!tio"& 4.5.6
!o"tai"i", u"i)orm proviso aut#ori9i", t#e %re&i*e"t. uo" re!omme"*atio"& o) t#e
Se!retar+ o) :i"a"!e. to rai&e t#e ;A$ rate to 12<. e))e!tive 7a"uar+ 1. 2006. a)ter
!o"*itio"& #ave (ee" &ati&)ie*:
a. ;A$ !olle!tio"=GD% o) reviou& +ear > 2 4=5<
(. 0at?l Govt De)i!it=GD% o) reviou& +ear>1 1=2<
$#e+ !laim t#at t#e&e &e!tio"& !o"&titute a(a"*o"me"t o) t#e Co",re&& o) it&
e-!lu&ive aut#orit+ to )i- t#e rate o) ta-e& u"*er Art. ;3. @2AB2C o) 19A2 Co"&ti.
Detitio" )or ro#i(itio"
2. %ime"tel. et.al 8ue&tio"& !o"&titutio"alit+ o) &ame &e!tio"& B8ue&tio"i", &ta"*E(+
aut#orit+ o) t#e %re&i*e"tCF
Gar,ui", violatio" o) *ue ro!e&& !lau&e Bart 333. @1 19A2 Co"&tiC (+ imo&i", u")air
a"* a**itio"al ta- (ur*e" to ol 'it# 12< i"!rea&e va,ue. u")air a"* ar(itrar+ ;A$
rate . a"* i"!rea&e i" ;A$ rate &#oul* o"l+ (e (a&e* o" )i&!al a*e8ua!+F
Ga"* )i"all+. alle,i", t#e violatio" o) t#e H0oEame"*me"t !lau&eIBArt ;3.@26B2C 19A2
Co"&tiC
D%etitio" )or !ertiorari
1. A&&o!iatio" o) %ilii"a& S#ell Dealer&. 3"!.. et.al 8ue&tio"& @A a"* 12 o) RA 9112.
alle,i", t#at t#e &ai* &e!tio"& violate* t#e "o"E*erivatio" o) li)e. li(ert+ a"* roert+
'it#out *ue ro!e&& o) la' !lau&e BArt 333. @1 o) Co"&tiC (+ limiti", t#e amou"t o) 3ta-
t#at ma+ (e !laime*. a"* t#at 3ta- i& a roert+ '#i!# ma+ "ot (e !o")i&!ate*.
aroriate*. or limite* 'it#out *ue ro!e&& o) la'.
Gar,ue* t#at ,over"me"t &till ,et& to ta- ro)it or valueEa**e* eve" i) t#ere i&"?t a"+.
Gviolate* E8ual %rote!tio" Clau&eBArt 333. @1 o) Co"&tiC
G20< limit violate& Art ;3. @2AB1C o) Co"&ti
D %etitio" )or ro#i(itio"
RA: RA 9337; BCC: bicameral conference committee; NIRC: National Internal
Revenue Code of 1997; Itax: Intput Tax; tax: utput Tax; !C: !upreme Court; Con"ti:
19#7 R$ Con"ti
1
4. E&!u*ero. et. Al 8ue&tio" !o"&titutio"alit+ o) RA:
G @ 4.5.6: u"*ue *ele,atio" o) le,i&lative o'er: violate& Art ;3. @ 2AB2C o) t#e
Co"&ti
GBCC *elete* "o a&& rovi&io"&
GBCC i"&erte* &e!tio"& o"l+ re&e"t o" SB: violatio" o) Art ;3. @24B1C o)
Co"&tiBori,i"atio" o) reve"ue or tari)) (ill&C
D%etitio" )or !ertiorari
5. Gov. Gar!ia 8ue&tio" !o"&titutio"alit+ o) RA o" ,rou"*& t#at limitatio" o" !re*ita(le
i"ut ta- allo'& ;A$ re,i&tere* e&ta(li&#me"t& to retai" a ortio" o) t#e ta-e& t#e+
!olle!t
Gviolatio" o) Art ;3. @2AB1C o) !o"&ti (+ allo'i", a&&Eo" rovi&io"
D%etitio" )or !ertiorari a"* ro#i(itio"
6SG?& re&o"* to etitio"&:
1. %ro!e*ural i&&ue& BBCCC #ave alrea*+ (ee" &ettle* i" $ole"ti"o v Se!retar+ o)
:i"a"!e. 215 SCRA 610 B1994C
2. J"*ue *ele,atio" o) le,i&lative o'er: 0o"e. Ka' i& !omlete. all t#e %re&i*e"t
'oul* (e *oi", i& to i"!rea&e ;A$ rate to 12<B'#i!# t#e Co",re&& a&&i,"e*C.
uo" re!omme"*atio" o) :i"a"!e Se!retar+.
1. 12< ;A$ rate i"!rea&e. 20< limitatio" o" !re*ita(le i"ut ta-. 60Emo"t#
amorti9atio" o" ur!#a&e or imortatio" o) !aital ,oo*& e-!ee*i", %1L. 5<
)i"al 'it##ol*i", ta- (+ ,ov?t a,e"!ie& i& "ot ar(itrar+. ore&&ive. a"*
!o")i&!ator+F al&o. t#e&e *oe&"?t violate ro,re&&ive ta-atio"
4. RA 9112: a"!#or o) ,over"me"t?& )i&!al re)orm a,e"*a
3&&ue&:
3. %ro!e*ural 3&&ue&: '#et#er RA 9112 violate& t#e )ollo'i", rovi&io"& o) t#e Co"&ti:
A. Art. ;3. @24: $a-i", o'er& o"l+ )rom 4oR
B. Art. ;i. @26B2C: Bill& a&& t#rou,# 1 rea*i",& o" &earate *a+& Bu"le&& ur,e"tC.
"o ame"*me"t a)ter 1
r*
rea*i",
33. Su(&ta"tive 3&&ue&:
A. /60 @ 4.5.6 o) RA violate& t#e )ollo'i", rovi&io"& o) t#e Co"&ti:
1. Art. ;i. @2AB1C: Co",re&& evolve a ro,re&&ive ta- &+&tem
2. Art. ;3. @ 2AB2C: aut#ori9e %re&i*e"t to )i- imo&itio"& Btari)) i" "atureC
B. /60 @ A o) RA violate& t#e )ollo'i", rovi&io"& o) t#e C6"&ti:
1. Art ;3. @2AB1C: Co",re&& evolve& a ro,re&&ive ta- &+&tem
2. Art 333. @1: Due ro!e&& M e8ual rote!tio" !lau&e
4el*=De!i: RA 9112 i& Co"&titutio"alF *i&mi&& all etitio"&F li)t re&trai"i", or*er
Ratio:
I. Procedural Issues
A. BCC
GBCC 'a& &ai* to e-!ee* it& aut#orit+ (+:
1. i"&erti", &ta"*E(+ o'er& o) t#e %re&i*e"t
2. Deleti", t#e H0oEa&&I rovi&io"
RA: RA 9337; BCC: bicameral conference committee; NIRC: National Internal
Revenue Code of 1997; Itax: Intput Tax; tax: utput Tax; !C: !upreme Court; Con"ti:
19#7 R$ Con"ti
2
1. 3"&erti", rovi&io" o" 20< limit o" amou"t o) i"ut ta- to (e !re*ite* a,ai"&t
t#e outut ta- B"ot ori,i"all+ i" t#e 4B& "or i" t#e SBC
4. i"!lu*i", ame"*me"t& i"tro*u!e* (+ t#e SB
SC: ea!# #ou&e #a& o'er to *etermi"e it& o'" rule&. BCC !reate* i" (ot# #ou&e& to
&ettle *i))ere"!e& 'it# t#e ot#er #ou&e. !reatio" o) BCC reort !o"tai"&
!#a",e&=ame"*me"t& to t#e &u(Ne!t mea&ure&. SC &ti!5& to HE"rolle* Bill
Do!tri"eIBCourt 'oul* "ot revie' ro!ee*i",& o) t#e le,i&lature i" !reatio" o) a la'C
DBCC i" t#i& !a&e 'a& "ee*e* to &ettle *i))ere"!e& i" t#e ;A$ rate to (e imo&e*. "o
a&&Eo" rovi&io". 20< limit o" i"ut ta-. a"* ot#er ame"*me"t& re,ar*i", e-!i&e
a"* i"!ome ta-e&. BCC *e!i*e* to a*ot &ta"*E(+ o'er& to t#e %re&i*e"t to rai&e
ta- rate to 12< uo" re!omme"*atio" o) :i"a"!e Se!retar+ )rom 10<
B !omromi&e (et 10 O 12< ;A$ rateCF *elete "o a&&Eo" rovi&io". a*oti",
4ou&e?& o&itio" to #ave limit o" i"ut ta-e& to (e !re*ite* a"* a**i", t#e 20<
rateF a"* i"!lu*e rovi&io"& o" i"!ome a"* e-!i&e ta-e& )rom t#e SB. 3" &ettli",
*i))ere"!e& (et'ee" t#e (ill& &u(mitte* (+ (ot# #ou&e&. t#e BCC !oul* a*ot &e!i)i!
rovi&io"&. Delete rovi&io"&. or tr+ to arrive at a !omromi&e. $#e BCC?&
ame"*me"t& 'ere &till relate* to t#e &u(Ne!t o) t#e (ill BGerma"e&& RuleC.
B. No-amendment rule (Art VI, 26(2)): Uon t!e last read"n# o$ a %"ll, no
amendment s!all %e allo&ed'(
Gt#e BCC 'a& &ai* to violate t#i& rovi&io" (e!au&e t#e+ a**e*. *elete*. a"*
ame"*e* rovi&io"& o) t#e 4B& a"* SB
SC: Art ;3. @26B2C o"l+ re)er& to (ill& i"tro*u!e* )or t#e )ir&t time i" eit#er #ou&e o)
Co",re&& a"* "ot to t#e BCC reort
C. )*clus"+e ,r"#"nat"on Clause o$ -e+enue B"lls (Art. VI, 2.)
GSome ame"*me"t& o) t#e 03RC 'ere )rom t#e SB. "ot t#e 4B&.
SC: $#e arti!le rovi*e& t#at t#e Se"ate Hma+ roo&e or !o"!ur 'it# ame"*me"t&I.
$o &a+ t#at t#e BCC Reort 'oul* o"l+ !o"tai" t#e rovi&io"& )rom t#e 4B& 'oul*
*e"+ t#e Se"ate t#at o'er. violati", t#e !oe8ualit+ o) le,i&lative o'er o) t#e t'o
#ou&e&.
D$#e uro&e o) #avi", reve"ue (ill& ori,i"ate )rom t#e 4oR i& t#at t#e
rere&e"tative& o) t#e 4oR !ame )rom *i))ere"t *i&tri!t& a"* t#at t#e+ ma+ (e more
&e"&itive to lo!al "ee*&. Still. t#e vie'& o) t#e Se"ator& are "ee*e* &i"!e t#e+ are
e-e!te* to aroa!# ro(lem& )rom t#e "atio"al er&e!tive.
DReve"ue (ill e-!lu&ivel+ ori,i"ate* )rom t#e 4ou&e. t#e Se"ate o"l+ !reate* t#e SB
ta5i", i"to !o"&i*eratio" t#e 4B&
DGermaneness Rule: $#e Se"ate roo&e* ame"*me"t& '#i!# are &till i"
)urt#era"!e o) t#e i"te"t o) t#e 4ou&e i" i"itiati", t#e &u(Ne!t reve"ue (ill&: (ri", i"
&i9a(le reve"ue& )or t#e ,over"me"t to &uleme"t our !ou"tr+?& &eriou& )i"a"!ial
ro(lemF t#e ame"*me"t& i"tro*u!e* (+ t#e Se"ate 'ere to !u&#io" t#e e))e!t& o)
;A$ o" !o"&umer&.
II. /u%stant"+e Issues
A. Issues re#ard"n# .,0,6 o$ -A No. 1223
4. No Undue 5ele#at"on o$ 6e#"slat"+e Po&er:
G@4.5.6 o) RA 0o. 9112 ,ive& &ta"*E(+ o'er& to t#e %re&i*e"t to i"!rea&e t#e ta-
rate& o) &ale& o) ,oo*&=roertie&. imort ,oo*&. a"* &ervi!e&. u&e a"* lea&e o)
RA: RA 9337; BCC: bicameral conference committee; NIRC: National Internal
Revenue Code of 1997; Itax: Intput Tax; tax: utput Tax; !C: !upreme Court; Con"ti:
19#7 R$ Con"ti
3
roert+ )rom 10< to 12<. uo" re!omme"*atio" o) t#e :i"a"!e Se!retar+. ,ive"
t#at t#e ;A$ !olle!tio"=GD% > 2 4=5< a"* 0at?l Gov?t De)i!it=GD%>1 P<. $#e&e @
o" ;A$ i& "ot u"*er t#e tari)) o'er& ,ra"te* to t#e %re&i*e"t
GAl&o. &ta"*E(+ o'er& re,ar*i", t#e re!omme"*atio" o) t#e :i"a"!e Se!retar+ 'a&
&ai* to u"*ermi"e t#e o'er& o) t#e re&i*e"t. u"*ermi"e reu(li!a"i&m B)or t#e
*e!i&io" to rai&e ta- rate& 'oul* o"l+ (e *ee"*e"t o" t#e %re&i*e"tC. a"* t#at t#e
%re&i*e"t !oul* ea&il+ i")lue"!e t#e re!omme"*atio" o) t#e :i"a"!e Se!retar+.
SC: 0o u"*ue *ele,atio" o) le,i&lative o'er 'a& *o"e.
Ke,i&lative o'er: aut#orit+ to ma5e a !omlete la' Q !omlete a& to t#e time '#e"
it &#all ta5e e))e!t a"* a& to '#om it &#all e ali!a(le Q a"* to *etermi"e t#e
e-e*ie"!+ o) it& e"a!tme"t.
D3" ermi&&i(le *ele,atio". it mu&t (e &#o'" t#at t#e *ele,atio" i& vali*. Bla' i&
!omlete. la' )i-e& a &ta"*ar* to '#i!# t#e *ele,ate mu&t !o")orm i" t#e
er)orma"!e o) #i& )u"!tio"&C
D%o'er to a&!ertai" )a!t& a& t#e (a&i& o) t#e e")or!eme"t o) t#e la' Bo'er *ele,ate*
to t#e :i"a"!e Se!retar+C i& "ot le,i&lative i" "atureF t#e le,i&lature !oul* *ele,ate
o'er& to a&!ertai" )a!t& to t#e e-e!utive
D%re&i*e"t #ave "o *i&!retio" i" rai&i", t#e ta- rate. a"* #er o'er i& "ot u"*ermi"e*
(+ t#e Hre!omme"*atio" o) t#e :i"a"!e Se!retar+I (e!au&e t#e :i"a"!e Se!retar+ i&
Nu&t a&&i&ta"t a"* a,e"t o) t#e %re&i*e"t. 4o'ever. it *oe&"?t mea" t#at t#e :i"a"!e
Se!retar+ !oul* (e ea&il+ i")lue"!e* (+ t#e %re&i*e"t i" t#i& !a&e (e!au&e t#e :i"a"!e
Se!retar+ i& a" a,e"t o) t#e Co",re&& i" #i& a&!ertai"i", o) )a!t& Q al&o. t#e SC 'oul*
"ot rule o" alle,atio"& t#at ma+ (e !o"Ne!tural "or t#at it ma+ e-i&t at all. SC *eal&
'it# )a!t&. 'it# a!tual !a&e& a"* !o"trover&ie& a"* "ot to &e!ulatio"&.
DA& to reu(li!a"i&m ar,ume"t. Co",re&& *i* "ot *ele,ate t#e o'er to ta- (ut t#e
mere imleme"tatio" o) t#e la'.
2. 427 "ncrease VA8 -ate doesn9t "mose an un$a"r and unnecessar:
add"t"onal ta* %urden
Ga&i*e )rom imo&i", a**itio"al ta- (ur*e". etitio"er& ar,ue t#at t#e la' *oe&"?t
&e!i)+ '#at t#e ;A$ rate& 'oul* (e )rom +ear to +ear. i) it 'oul* (e retur"e* to 10<
o"!e t#e !o"*itio"& 'oul* "ot (e &ati&)ie*
SC: t#e RA *oe& "ot rovi*e )or a retur" to 10< rate "or *oe& it emo'er t#e
%re&i*e"t to retur" it to 10<.
Gi"!rea&e i" ;A$ rate &#oul* (e (a&e* o" )i&!al a*e8ua!+ B&our!e& o) reve"ue& mu&t
(e a*e8uate to meet ,over"me"t e-e"*iture& a"* t#eir variatio"&C a"* "ot t#e
'#im& o) t#e %re&i*e"t
SC: i"!rea&e i" ;A$ !olle!tio" "ot t#e o"l+ !o"*itio". a"* !o"*itio"& #ave u(li!
uro&e B)i&!al a*e8ua!+ *i!tate* t#e "ee* )or a rai&e i" reve"ueC
Ratio"ale )or t#e !o"*itio"& a!!*, to t#e re&o"*e"t&:
1. ;A$=GD% Ratio>2.A<: e"&ure t#at ta- !olle!tio" i& e))e!tive a"* t#e
,over"me"t i& !aa(le o) imleme"ti", t#e ;A$. 3) "ot. t#e" t#ere?& "o oi"t i"
!olle!ti", #i,#er ;A$ !olle!tio" )or t#e a**itio"al ;A$ 'oul* "ot ,o to t#e
State?& )u"*
2. 0at?l Gov?t De)i!it=GD Ratio>1.5<: t#i& mea"& t#at t#e )i&!al !o"*itio" o) t#e
,over"me"t i& &till u"&ou"* a"* (u*,et o&itio" i& &till u"(ala"!e*
B. Issues re#ard"n# ; or -A 1223
RA: RA 9337; BCC: bicameral conference committee; NIRC: National Internal
Revenue Code of 1997; Itax: Intput Tax; tax: utput Tax; !C: !upreme Court; Con"ti:
19#7 R$ Con"ti
4
4. 5ue Process and )<ual Protect"on Clauses +"olat"on (Art. III, 4)
G@A imo&e& a limitatio" o" t#e amou"t o) i"ut ta- t#at ma+ (e !re*ite* a,ai"&t t#e
outut ta- B%er&o" !a" !re*it #i& 3ta- o"l+ u to t#e e-te"t o) 20< o) t#e 6ta-C
SC: ar,ume"t "ot a(&olute Bi) 3ta- "ot e-!ee* 20< 6ta-. 100< 3ta- i& &till
!re*ita(leC
Dal&o. e-!e&& o) 20< !oul* (e !arrie* over to ot#er 8uarter&. !oul* (e re)u"*e*
t#rou,# ta- !re*it !erti)i!ate& a"* !oul* (e u&e* i" a+me"t o) i"ter"al reve"ue
ta-e&.
:ormula: 6ta- Q 3ta- R $a- %a+a(le
Co"*itio"&: i)
a. 6ta- R 3ta-. t#e" "o a+me"t
(. 6ta- > 3ta-. t#e" e-!e&& &#all (e ai* to t#e B3R
!. 6ta- S 3ta-. t#e" e-!e&& 3ta- &#all (e !arrie* over to &u!!ee*i", 8uarter&
G3ta- arta5e& "ature o) roert+ Q ma+ "ot (e !o")i&!ate*. aroriate*. or limite*
'it#out *ue ro!e&& o) la'
SC: 3ta- i& "ot a roert+ or a roert+ ri,#t (ut a &tatutor+ rivile,e
G60Emo"t# erio* 'it#i" '#i!# to amorti9e t#e !re*ita(le i"ut ta- o"
ur!#a&e=imortatio" o) !aital ,oo*& 'it# a!8ui&itio" !o&t o) %1L Be-!lu&ive o) ;A$C
i& ar,ue* to (e ar(itrar+. ore&&ive. e-!e&&ive a"* !o")i&!ator+
SC: 60Emo"t# erio* *oe& "ot *erive ta-a+er& o) rivile,e to !re*it t#e i"ut ta-. it
merel+ *ela+& t#e !re*iti", t#rou,# &rea*i", t#e i"ut ta- over 60 mo"t#& or le&&
B)or !aital ,oo*& 'it# li)e S 5+r&C
G5< !re*ita(le 'it##ol*i", ta- imo&e* o" a+me"t& ma*e (+ t#e ,over"me"t )or
ta-a(le tra"&a!tio"& Bu"*er @12 o) RAC i& u")air: 3ta- !oul* "ot (e !re*ite*. it i&
'it##el* i"&ta"tl+F Gover"me"t !oul* &till ,et ta- eve" i) t#ere?& "o ro)it
SC: 'it##ol*i", o) ;A$ &e!i)ie* u"*er &ai* @ o"l+ &e!i)ie& met#o* o) !olle!tio".
D5< rate !o"&titute& a& )ull a+me"t o) t#e ta- a+a(le o" t#e tra"&a!tio"G.
DDDSC "ot e"title* to e-lore ratio"ale (e#i"* rovi&io"&
Dit #a& "ot (ee" &#o'e* t#at t#e !la&& &u(Ne!t to t#e 5< )i"al 'it##ol*i", ta- #a&
(ee" u"rea&o"a(l+ "arro' Q !o"&titutio"al a"* vali*
Da!tual i"ut ta- i& "ot totall+ lo&t or u"!re*ita(le:
a. i) 3ta- > 5< o) ,ro&& a+me"t& Be-!e&&: !o&tC
(. i) 3ta- S 5< o) ,ro&& a+me"t& B*i))ere"!e: i"!omeC
Detitio"er&? ar,ume"t t#at ,ov?t &till ,et ta- eve" i) t#ere?& "o i"!ome i& Nu&t
#+ot#eti!al a"* o"eE&i*e* )or "o (u&i"e&& 'oul* &till oerate i) t#ere?& "o ro)it or
valueEa**e*.
Ge8ual rote!tio" !lau&e violate* (e!au&e limitatio" o" !re*ita(le 3ta- i& "ot (a&e* o"
real a"* &u(&ta"tial *i))ere"!e& to meet a vali* !la&&i)i!atio"
SC: la' *oe&"?t ma5e !la&&i)i!atio"&. imleme"tatio"& ma+ +iel* var+i", re&ult&
DE8ual rote!tio" R e8ualit+ amo", e8ual& B'it#i" vali* !la&&i)i!atio"C T u"iver&al
ali!atio" o) la'& o" all er&o"& or t#i",& 'it#out *i&ti"!tio"
2. Un"$orm"t: and )<u"ta%"l"t: o$ 8a*at"on
J"i)ormit+ i" ta-atio": u"i)orm ta- rate 'it#i" &ame !la&&
SC: ta- la' i& u"i)orm: it *oe&"?t ma5e *i&ti"!tio" "or a&&i," t#e t+e o) i"*u&tr+ or
tra*e t#at 'ill (ear t#e 20< limit. 5E+r amorti9atio" o) i"ut ta- o" ur!#a&e*
!aital ,oo*&. 5< )i"al 'it##ol*i", ta- (+ ,ov?t
D RA i& e8uita(le:
RA: RA 9337; BCC: bicameral conference committee; NIRC: National Internal
Revenue Code of 1997; Itax: Intput Tax; tax: utput Tax; !C: !upreme Court; Con"ti:
19#7 R$ Con"ti
5
e8uie* 'it# a t#re&#ol* mar,i": ;A$ rate *oe&"?t al+ to &ale& o) ,oo*& or
&ervi!e& 'it# ,ro&& a""ual &ale& or re!eit& "or e-!ee*i", %1.5L
(a&i! mari"e a"* a,ri!ultural )oo* ro*u!t& i" t#eir ori,i"al &tate "ot &u(Ne!t to
ta- Be"&ure t#at ri!e& at t#e ,ra&&root& level 'ill remai" a!!e&&i(leC
&ale& ta-e& o"l+ imo&e* o" (u&i"e&&e& 'it# a,,re,ate ,ro&& a""ual &ale& >
%200.000 B&ariE&ari &tore&. &ale& o) )arm a"* mari"e ro*u!t& e-emte*C
1< er!e"ta,e ta- o" ;A$Ee-emt er&o"& 'it# a""ual &ale& S %1.5L
E-!i&e ta-e& o" etroleum ro*u!t& a"* "atural ,a& re*u!e*
%er!e"ta,e ta- o" *ome&ti! !arrier& remove*
%o'er ro*u!er& e-emt )rom a+i", )ra"!#i&e ta-
3"!rea&e i"!ome ta- o) !ororatio"& )rom 12< to 15<
3"ter!ororate *ivi*e"*& o) "o"Ere&i*e"t )orei," !ororatio"& &till &u(Ne!t to
15< )i"al 'it##ol*i", ta- (ut ta- !re*it allo'e* o" !ororatio"?& *omi!ile
i"!rea&e* to 20<
%AGC6R e-emtio" )orm i"!ome ta-e& remove*
Sale (+ arti&t o) #i& 'or5& or &ervi!e& er)orme* )or ro*u!tio" o) &u!# 'or5&
#ave ta-
2. Pro#ress"+"t: o$ 8a*at"on
Glimitatio" o" !re*ita(le i"ut ta- i& re,re&&ive Bviolate& @2AB1C. Art ;3 o) Co"&tiC
SC: ;A$ i& re,re&&ive Bre,ar*le&& o) i"!ome. all ta- a+er& 'oul* &till a+ &ame ta-
a"* 'oul* "ot (e a*Nu&te* roortio"al to t#eir i"!omeC (ut t#e C6"&ti *oe& "ot
ro#i(it i"*ire!t ta-e&. o"l+ re)er& *ire!t ta-e& over t#em a"* o&&i(l+ mi"imi9e
i"*ire!t ta-e&
D*i))i!ult. i) "ot imo&&i(le. to imo&e ta-e& a!!or*i", to t#e ta-a+er?& a(ilit+ to a+
Co"!lu&io": SC !a""ot &tri5e *o'" a la' a& u"!o"&titutio"al &iml+ (e!au&e o) it&
+o5e&.
Separate Opinion: J. Panganiban
Main point: e"rolle* (ill *o!tri"e i& "ot a(&olute &i"!e t#e la!e '#ere it ori,i"ate*
BGreat Britai"C #a* a *i))ere"t )orm o) ,over"me"t a"* t#u&. t#e e"rolle* (ill
*o!tri"e !oul* (e mo*i)ie* a!!or*i",l+ to t#e ma"*ator+ rovi&io"& o) t#e
!o"&titutio"&
G.'#e" !o"&ti imo&e& !ertai" !o"*itio"&. re&tri!tio"&. or limitatio"& o" t#e e-er!i&e
o) !o",re&&io"al rero,ative&. t#e Nu*i!iar+ #a& (ot# t#e o'er a"* t#e *ut+ to
&tri5e *o'" !o",re&&io"al a!tio"& t#at are *o"e i" lai" !o"trave"tio" o) &u!#
!o"*itio"&. re&tri!tio"&. or limitatio"&
imorta"t re&tri!tio"&=limitatio"& to t#e e"rolle* (ill *o!tri"e:
1. ori,i"atio"
2. "oEame"*me"t
1. t#reeErea*i", rule&
Gea!# #ou&e ma+ "ot (+ it& rule& i,"ore !o"&titutio"al re&trai"& or violate
)u"*ame"tal ri,#t&
Gt#e SC ma+ e-er!i&e !ertiorari revie' over BCC to *etermi"e '#et#er or "ot ,rave
a(u&e o) *i&!retio" #a& (ee" !ommitte*
RA: RA 9337; BCC: bicameral conference committee; NIRC: National Internal
Revenue Code of 1997; Itax: Intput Tax; tax: utput Tax; !C: !upreme Court; Con"ti:
19#7 R$ Con"ti
6
BCC !oul* er)orm it& )u"!tio"& (+:
1. adopting House version in part or in toto Q "o 8ue&tio" a& to ori,i"atio". (ut i,"ore
Se"ate
2. adopting te !enate version in part or in toto Q ori,i"atio" !lau&e 'oul* (e
violate*. ,erma"e ri"!ile &#oul* (e u#el*
,erma"e ri"!ile: re8uire& le,al i"terretatio" Q &e"ate ma+ 'rite it& o'" ver&io"
o) t#e (ill Bame"*me"t (+ &u(&titutio"C a& lo", a& ori,i"al (ill !ome& )rom t#e
#ou&e
1. "o#pro#ising $y "onsolidating Q via(le rovi*e* t#at t#e BCC reort a"*
eve"tuall+ t#e la' 'oul* "ot violate t#e ori,i"atio" !lau&e. ,erma"e ri"!ile a"*
t#e t#reeErea*i", rule.
DSta"*E(+ aut#orit+: BCC *i* "ot e-!ee* it aut#orit+ i" i"!ororati", t#e &ta"*E(+
aut#orit+ (e!au&e:
Gt#e &ta"*E(+ aut#orit+ i& Nu&t a !omromi&e (et'ee" 4B& B'a"te* 12< ;A$ rateC
a"* SB B10< ;A$ rateC
G!o"*itio"& !a" (e ea&il+ *erive* (+ :i"a"!e Se!retar+
GKa' i& !omlete a"* &ta"*ar*& #ave (ee" )i-e*
G$a-i", %o'er& #a& "ot (ee" *ele,ate*: A*mi"i&trative )u"!tio" 'a& Nu&t *e!lare*.
la'Ema5i", o'er& 'ere "ot *ele,ate*. Nu&t a*mi"i&trative )u"!tio" to a&!ertai"
)a!t& 'it# '#i!# t#e la'?& e")or!eme"t 'oul* (e (a&e*
G*o"?t a,ree t#at t#e :i"a"!e Se!retar+ i& a" a,e"t o) Co",re&&: :i" Se! i& alter
e,o o) %re&i*e"t a"* 'oul* Nu&t (e a&!ertai"i", )a!t&. "ot ma5i", "e' la'&
Gt#e mea&ure& a*ote* (+ t#e Co",re&& i" t#e la' i& "ot &u(Ne!t to t#e revie' o)
t#e !ourt& u"le&& !o"&titutio"al limitatio"& are over&tee*
DAme"*me"t& o" i"!ome ta-e&: the amendments made by the CC !rom the
S regarding income ta"es #increasing ta" rates on domestic$ resident
!oreign and nonresident !oreign corporations$ increasing the ta" credit
against ta"es due !rom nonresident !oreign corporations on intercorporate
di%idends$ reducing the allo&able deduction !or interest e"pense' are not
legally germane to the sub(ect matter o! the )
a. *ncome ta" is direct ta"+ ,-. is indirect ta"
(. i"ter!ororate *ivi*e"*& are )i"alF i"ut ;A$ i& ,e"erall+ !re*ita(le Bmet#o*& o)
'it##ol*i", are totall+ *i))ere"tC
!. re*u!i", t#e allo'a(le *e*u!tio" i" i"tere&t e-e"&e i& a matter t#at i& "ot
le,all+ relate* to t#e roo&e* ;A$ ame"*me"t&
D0o a&&Eo" rovi&io"&: BCC *i* "ot e-!ee* it& aut#orit+ '#e" it *elete* t#e "o
a&&Eo" rovi&io"& )ou"* i" t#e !o",re&&io"al (ill& &i"!e t#e BCC #a& t#e otio" to
*elete !o"te&te* rovi&io"&.
D20< !a o" 3ta- a"* 5< )i"al 'it##ol*i", ;A$: !omromi&e (et'ee" 4B a"* SB
G"o *erivatio" o) roert+ re,ar*i", amorti9atio" o) i;A$ t#rou,#out 60Emo"t#&
&i"!e it !oul* (e a&&e* o" to t#e !o"&umer& Beve" i) it?& ore&&ive. u"le&& it&
u"!o"&titutio"al. t#e la' 'oul* "ot (e &tru!5 *o'"C
G"o"Ei&&ua"!e o) ta- !re*it !erti)i!ate& u"til retireme"t )rom or !e&&atio" o)
(u&i"e&&. or !#a",e& i" or !e&&atio" o) ;A$Ere,i&tere* &tatu& i& a poli"y issue, not
legality issue. J"le&& t#e u"!o"&titutio"alit+ o) t#e la' i& t#e i&&ue. t#e SC !oul*
"ot *i&!u&& t#e i&&ue
Gu&ele&&"e&& o) u"utili9e* 3vat &e!ulative
G3ta- Nu&t &tatutor+ rivile,e '#i!# !oul* (e ta5e" a'a+ (+ t#e State
RA: RA 9337; BCC: bicameral conference committee; NIRC: National Internal
Revenue Code of 1997; Itax: Intput Tax; tax: utput Tax; !C: !upreme Court; Con"ti:
19#7 R$ Con"ti
7
G"o violatio" o) e%ual rigts "lause (e!au&e la' alie& e8uall+ to all (u&i"e&&e&F
la' &#oul* (e ame"*e* a"* "ot *e!lare* u"!o"&titutio"al
G*ou(leEta-atio" ma+ re&ult i" &ome o) t#e rovi&io"& (ut t#e Co"&ti *oe&"?t
ro#i(it t#i&
D@ A o) RA 9112 *oe&"?t !o"trave"e Art 333. @1 a"* Art 33. @ 20 o) C6"&ti
1. la' 'a& ma*e i" t#e ,oal o) rai&i", reve"ue& Q e8ual rote!tio" o) all !iti9e"&F
roer !o",re&&io"al ro!e*ure )or e"a!tme"t 'a& )ollo'e* Q u(li! #eari",& or
u(li! "oti!e 'ere "ot *e"ie* &o *ue ro!e&& #a* "ot (ee" *e"ie*.
2. rivate e"terri&e& are "ot *i&!oura,e*. 20< !a i& Nu&t a 'a+ )or t#e ,ov?t to
#ave a &tea*+ )lo' o) i"!ome
...!aital e8uime"t i& "ot e-e"&e* (ut amorti9e* over it& u&e)ul li)eU
G(u&i"e&& Nu*,me"t&. &ale& volume. a"* t#eir e))e!t o" !ometitio" are )or
(u&i"e&&e& to *etermi"e a"* )or Co",re&& to re,ulateE "ot )or SC to i"ter)ere 'it#.
a(&e"t a !lear &#o'i", t#at !o"&titutio"al rovi&io"& #ave (ee" violate*
Dame"*me"t& o" ot#er ta-e& a"* a*mi"i&trative matter&: ,erma"e i" a le,al
&e"&e a"* rea&o"a(l+ "e!e&&ar+ i" a" e!o"omi! &e"&e:
Groo&e* !#a",e& i" ;A$ la' 'ill #ave i"evita(le imli!atio"& a"* reer!u&&io"&
o" &u!# ta-e&. a& 'ell a& o" t#e ro!e*ural re8uireme"t& a"* t#e *i&o&itio" o)
i"!reme"tal reve"ue&. i" t#e $a- Co*e
ot#er ta-e&:
er!e"ta,e ta-e& o" *ome&ti! !arrier& a"* 5eeer& o) ,ara,e&
o" i"ter"atio"al !arrier&
)ra"!#i&e ta-e&
amu&eme"t ta-e&
e-!i&e ta-e& o" ma"u)a!ture* oil& a"* ot#er )uel&
re,i&tratio" re8uireme"t&
i&&ua"!e o) re!eit& or &ale& or !ommer!ial i"voi!e&
*i&o&itio" o) i"!reme"tal reve"ue&
G"oEame"*me"t rule "ot violate*. ,ra"te* ,erma"e ri"!ile 'a& &u&tai"e*. "o
!omletel+ "e' rovi&io" 'a& i"&erte* i" t#e arove* (ill
&. re'e"ting (on)"on*li"ting provision Q u"!o"&titutio"alF i" BCC t#e+ *elete* o"l+ t#e
"o a&&Eo" rovi&io". t#e 4B a"* SB re,ar*i", t#i& i" !o")li!t.
+. approving and inserting "o#pletely ne, provisions Q u"!o"&titutio"al i) a "e'
rovi&io" '#i!# i& "ot )ou"* i" t#e 4B& a"* SB 'oul* (e i"&erte* i" t#e BCC reort
*e!i&io": u"!o"&titutio"al:
a. ame"*i", rate& o) i"!ome ta- o" *ome&ti!. re&i*e"t )orei,". a"* "o"re&i*e"t
)orei," !ororatio"&
(. ame"* ta- !re*it a,ai"&t ta-e& *ue )rom "o"re&i*e"t )orei," !ororatio"& o"
i"ter!ororate *ivi*e"*&
!. re*u!e t#e allo'a(le *e*u!tio" )or i"tere&t e-e"&e
Got#er rovi&io"& are !o"&titutio"al. *i&mi&& ot#er etitio"&
RA: RA 9337; BCC: bicameral conference committee; NIRC: National Internal
Revenue Code of 1997; Itax: Intput Tax; tax: utput Tax; !C: !upreme Court; Con"ti:
19#7 R$ Con"ti
8