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cancelled and withdrawn.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