Direct Tax vs. Indirect Tax

TAXATION QUESTION 1994

Distinguish a direct from an indirect tax.

SUGGESTED ANSWER:

A DIRECT TAX is one in which the taxpayer who pays the tax is directly liable therefor, that is, the burden of paying the tax falls directly on the person paying the tax.

An INDIRECT TAX is one paid by a person who is not directly liable therefor, and who may therefore shift or pass on the tax to another person or entity, which ultimately assumes the tax burden. (Maceda v. Macaraig, 197 SCRA 771)

Collection of Taxes: Prescription

TAXATION QUESTION 2001

May the collection of taxes be barred by prescription? Explain your answer.

SUGGESTED ANSWER:          

Yes. The collection of taxes may be barred by prescription. The prescriptive periods for collection of taxes are governed by the tax law imposing the tax. However, if the tax law does not provide for prescription, the right of the government to collect taxes becomes imprescriptible. 

Family Courts Act

REMEDIAL LAW QUESTION 2001

a) How should the records of child and family cases in the Family Courts or RTC designated by the Supreme Court to handle Family Court cases be treated and dealt with?

b) Under what conditions may the identity of parties in child and family cases be divulged?

SUGGESTED ANSWER:

a) The records of child and family cases in the Family Code to handle Family Court cases shall be dealt with utmost confidentiality. (Sec. 12, Family Courts Act of 1997)

b) The identity of parties in child and family cases shall not be divulged unless necessary and with authority of the judge. 

Conciliation Proceedings; Katarungang Pambarangay vs. Pre-Trial Conference

REMEDIAL LAW QUESTION 1999

What is the difference, if any, between the conciliation proceedings under the Katarungang Pambarangay Law and the negotiations for an amicable settlement during the pre-trial conference under the Rules of Court?

SUGGESTED ANSWER:

The difference between the conciliation proceedings under the Katarungang Pambarangay Law and the negotiations for an amicable settlement during the pre-trial conference under the Rules of Court is that in the former, lawyers are prohibited from appearing for the parties. Parties must appear in person only except minors or incompetents who may be assisted by their next of kin who are not lawyers.  (Formerly Sec. 9, P.D. No. 1508; Sec. 415, Local Government Code of 1991, R.A. 7160.) No such prohibition exists in the pre-trial negotiations under the Rules of Court.

Nature of the Constitution: Constitutional Supremacy

POLITICAL LAW QUESTION 2004

BNN Republic has a defense treaty with EVA Federation. According to the Republic's Secretary of Defense, the treaty allows temporary basing of friendly foreign troops incase of training exercises for the war on terrorism. The Majority Leader of the Senate contends that whether temporary or not, the basing of foreign troops however friendly is prohibited by the Constitution of BNN which provides that, "No foreign military bases shall be allowed in BNN territory."In case there is indeed an irreconcilable conflict between a provision of the treaty and a provision of the Constitution, in a jurisdiction and legal system like ours, which should prevail: the provision of the treaty or of the Constitution? Why? Explain with reasons, briefly.

SUGGESTED ANSWER:

In case of conflict between a provision of a treaty and a provision of the Constitution, the provision of the Constitution should prevail. Section 5(2)(a), Article VIII of the 1987Constitution authorizes the nullification of a treaty when it conflicts with the Constitution.(Gonzales v. Hechanova, 9 SCRA 230 [1963]).

Is "people power" recognized by the1987 Constitution? Explain fully.

POLITICAL LAW QUESTION 2003

SUGGESTED ANSWER:

"People power" is recognized in the Constitution. Article III, Section 4 of the 1987 Constitution guarantees the right of the people peaceable to assemble and petition the government for redress of grievances. Article VI, Section 32 of the 1987 Constitution requires Congress to pass a law allowing the people to directly propose and enact laws through initiative and to approve or reject any act or law or part of it passed by Congress or a local legislative body. Article XIII, Section 16 of the 1987 Constitution provides that the right of the people and their organizations to participate at all levels of social, political, and economic decision-making shall not be abridged and that the State shall, by law, facilitate the establishment of adequate consultation mechanisms. Article XVII, Section 2 of the 1987 Constitution provides that subject to the enactment of an implementing law, the people may directly propose amendments to the Constitution through initiative.

Banks: Applicability: Foreign Currency Deposit Act & Secrecy of Bank Deposits

MERCANTILE LAW QUESTION 2005

Hi Yielding Corporation filed a complaint against five of its officers for violation of Section 31 of the Corporation Code. The corporation claimed that the said officers were guilty of advancing their personal interests to the prejudice of the corporation, and that they were grossly negligent in handling its affairs. Aside from documents and contracts, the corporation also submitted in evidence records of the officers’ U.S. Dollar deposits in several banks overseas - Boston Bank, Bank of Switzerland, and Bank of New York.

For their part, the officers filed a criminal complaint against the directors of Hi Yielding Corporation for violation of Republic Act No. 6426, otherwise known as the Foreign Currency Deposit Act of the Philippines. The officers alleged that their bank deposits were illegally disclosed for want of a court order, and that such deposits were not even the subject of the case against them. 

a) Will the complaint filed against the directors of Hi Yielding Corporation prosper? Explain. 

SUGGESTED ANSWER:

No, because the Foreign Currency Deposit Act (R.A. No. 6426), including its punitive provisions, refers to foreign currency deposits accounts constituted within the Philippines. It has no application at all to accounts, even though they are banks, opened and constituted abroad.

 b) Was there a violation of the Secrecy of Bank  Deposits Law (Republic Act No. 1405)? Explain.

SUGGESTED ANSWER:

No, because the punitive provisions of the Secrecy of Bank Deposits Law (R.A. No. 1405), including the statutory exemptions provided therein, are not applicable to FCDU accounts, even when constituted locally. (Intengan v. Court of Appeals, G.R. No. 128996, February 15, 2002)

Theory of Cognition vs. Theory of Manifestation

MERCANTILE LAW QUESTION 1997

The Civil Code adopts the theory of cognition, while the Code of Commerce generally recognizes the theory of manifestation, in the perfection of contracts. How do these two theories differ?

SUGGESTED ANSWER:

Under the theory of cognition, the acceptance is considered to effectively bind the offeror only from the time it came to his knowledge. Under the theory of manifestation, the contract is perfected at the moment when the acceptance is declared or made by the offeree. 

Conspiracy

CRIMINAL LAW QUESTION 1997

A had a grudge against F. Deciding to kill F, A and his friends, B, C, and D, armed themselves with knives and proceeded to the house of F, taking a taxicab for the purpose. About 20 meters from their destination, the group alighted and after instructing E, the driver, to wait, traveled on foot to the house of F. B positioned himself at a distance as the group's lookout. C and D stood guard outside the house. Before A could enter the house, D left the scene without the knowledge of the others. A stealthily entered the house and stabbed F. F ran to the street but was blocked by C, forcing him to flee towards another direction. Immediately after A had stabbed F, A also stabbed G who was visiting F. Thereafter, A exiled from the house and, together with B and C, returned to the waiting taxicab and motored away. G died. F survived. Who are liable for the death of G and the physical injuries of F?

SUGGESTED ANSWER:

A alone should be held liable for the death of G. The object of the conspiracy of A. B, C, and D was to kill F only. Since B, C, and D did not know of the stabbing of G by A, they cannot be held criminally therefor. E, the driver, cannot be also held liable for the death of G since the former was completely unaware of said killing.

For the physical injuries of F, A, B and C. should be held liable therefore. Even if it was only A who actually stabbed and caused physical injuries to G, B and C are nonetheless liable for conspiring with A and for contributing positive acts which led to the realization of a common criminal intent. B positioned himself as a lookout, while C blocked F's escape. D, however, although part of the conspiracy, cannot be held liable because he left the scene before A could enter the house where the stabbing occurred. Although he was earlier part of the conspiracy, he did not personally participate in the execution of the crime by acts which directly tended toward the same end (People vs. Tomoro, et al 44 Phil. 38),

In the same breath, E, the driver, cannot be also held liable for the infliction of physical injuries upon F because there is no showing that he had knowledge of the plan to kill F. 

Use of Aliases; When Allowed

CRIMINAL LAW QUESTION 2006

When can a Filipino citizen residing in this country use an alias legally? Give 3 instances. 

SUGGESTED ANSWER:

1              Pseudonym for literary purposes.

2              Use of aliases in cinema and television entertainment.

3              In athletics and sports activities (RA. 6085).

4              Under the witness protection program a person may adopt a different identity (RA. 6981).

5              When he has been baptized or customarily known by such alias.

6              When authorized by a competent court (CA. No. 142, as amended by RA. 6085).

7              When properly indicated in a Certificate of Candidacy (Omnibus Election Code). 

Inferior Courts Decisions

CIVIL LAW QUESTION 1996

Are decisions of the Court of Appeals considered laws? 

SUGGESTED ANSWERS:

1)     a) No, but decisions of the Court of Appeals may serve as precedents for inferior courts on points of law not covered by any Supreme Court decision, and a ruling of the Court of Appeals may become a doctrine. (Miranda vs.. Imperial 77 Phil. 1066).

b) No. Decisions of the Court of Appeals merely have persuasive, and therefore no mandatory effect. However, a conclusion or pronouncement which covers a point of law still undecided may still serve as judicial guide and it is possible that the same maybe raised to the status of doctrine. If after it has been subjected to test in the crucible of analysis, the Supreme Court should find that it has merits and qualities sufficient for its consideration as a rule of jurisprudence (Civil Code, Paras).

Ignorance of the Law vs. Mistake of Fact

CIVIL LAW QUESTION 1996

Is there any difference in their legal effect between ignorance of the law and ignorance or mistake of fact?

SUGGESTED ANSWER:

Yes, there is a difference. While ignorance of the law is not an excuse for not complying with it, ignorance of fact eliminates criminal intent as long as there is no negligence (Art, NCC). In addition, mistake on a doubtful or difficult question of law may be the basis of good faith (Art. 526. NCC). Mistake of fact may, furthermore, vitiate consent in a contract and make it voidable (Art. 1390. NCC).

ALTERNATIVE ANSWER:

Yes. ignorance of the law differs in legal effect from Ignorance or mistake of fact. The former does not excuse a party from the legal consequences of his conduct while the latter does constitute an excuse and is a legal defense