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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
April-1939 Jurisprudence                 

  • G.R. No. 43850 April 3, 1939 - JOSE C. BUCOY v. JOHN R. MCFIE, ET AL.

    067 Phil 126

  • G.R. No. 45080 April 3, 1939 - FLORENCIA DUQUILLO v. PAZ BAYOT

    067 Phil 131

  • G.R. No. 45112 April 3, 1939 - APOLONIA GOMEZ v. LEVY HERMANOS, INC.

    067 Phil 134

  • G.R. No. 45144 April 3, 1939 - M. E. GREY v. INSULAR LUMBER COMPANY

    067 Phil 139

  • G.R. No. 45696 April 3, 1939 - PLACIDA PASCASIO, ET AL. v. BENITO GUIDO

    067 Phil 143

  • G.R. No. 45159 April 4, 1939 - GOVERNMENT OF THE PHIL. v. EMILIO MA. DE MORETA

    067 Phil 146

  • G.R. Nos. 46231-46235 April 4, 1939 - PEOPLE OF THE PHIL. v. PAULO B. GONZALEZ

    067 Phil 147

  • G.R. No. 46239 April 4, 1939 - SAN JUAN DE DIOS HOSPITAL v. ROSENDO MARCOS, ET AL.

    067 Phil 150

  • G.R. No. 46247 April 4, 1939 - SAN JUAN DE DIOS HOSPITAL v. MUNICIPAL COUNCIL OF SAN RAFAEL, ET AL.

    067 Phil 158

  • G.R. No. 45177 April 5, 1939 - JOSE MARTINEZ v. SANTOS B. PAMPOLINA

    067 Phil 167

  • G.R. No. 45193 April 6, 1939 - EMILIE ELMIRA RENEE BOUDARD, ET AL. v. STEWART EDDIE TAIT

    067 Phil 170

  • G.R. No. 46510 April 5, 1939 - ORIENT PROTECTIVE ASSURANCE ASSOCIATION v. ANTONIO RAMOS

    067 Phil 176

  • G.R. No. 45517 April 5, 1939 - TARCILA L. TRINIDAD v. ORIENT PROTECTIVE ASSURANCE ASSOCIATION

    067 Phil 181

  • G.R. No. 45738 April 6, 1939 - PEOPLE OF THE PHIL. v. MAXIMIANO CELORICO

    067 Phil 185

  • G.R. No. 45748 April 6, 1939 - PEOPLE OF THE PHIL. v. FRANCO VERA REYES

    067 Phil 187

  • G.R. No. 45955 April 5, 1939 - TEODORICA R. VIUDA DE JOSE v. JULIO VELOSO BARRUECO

    067 Phil 191

  • G.R. No. 46144 April 6, 1939 - PEOPLE OF THE PHIL. v. FRANCISCO CINCO, ET AL.

    067 Phil 196

  • G.R. No. 46409 April 5, 1939 - INSULAR MOTORS INCORPORATED v. CITY OF MANILA, ET AL.

    067 Phil 201

  • G.R. No. 46478 April 6, 1939 - PEOPLE OF THE PHIL. v. GO UG, ET AL.

    067 Phil 202

  • G.R. No. 43822 April 10, 1939 - PHILIPPINE TRUST CO. v. HONGKONG & SHANCHAI BANKING CORPORATION

    067 Phil 204

  • G.R. No. 45152 April 10, 1939 - HILARIA SIKAT v. JOHN CANSON

    067 Phil 207

  • G.R. No. 45170 April 10, 1939 - ARSENIO DE VERA, ET AL. v. CLEOTILDE GALAURAN

    067 Phil 213

  • G.R. No. 45171 April 10, 1939 - EUGENIO VERAGUTH, ET AL. v. ROSARIO MONTILLA, ET AL.

    067 Phil 215

  • G.R. No. 45192 April 10, 1939 - IN RE: VICENTE J. FRANCISCO

    067 Phil 222

  • G.R. No. 45200 April 10, 1939 - GOVERNMENT OF THE PHIL. v. APOLONIA S. ZAPANTA, ET AL.

    067 Phil 232

  • G.R. No. 45246 April 10, 1939 - CARLOS N. FRANCISCO v. PARSONS HARDWARE CO.

    067 Phil 234

  • G.R. No. 45273 April 10, 1939 - LUNETA MOTOR CO. v. FEDERICO ABAD

    067 Phil 236

  • G.R. No. 45295 April 10, 1939 - RUFO ARCENAS v. INOCENCIO DEL ROSARIO, ET AL.

    067 Phil 238

  • G.R. No. 45302 April 10, 1939 - GERVASIA ENCARNACION, ET AL. v. PROVINCIAL SHERIFF OF RIZAL, ET AL.

    067 Phil 245

  • G.R. No. 45337 April 10, 1939 - MANILA MOTOR CO. v. ANICETO MARAÑA

    067 Phil 247

  • G.R. No. 45381 April 10, 1939 - FELIX BENEDICTO v. PERFECTO ESPINO

    067 Phil 249

  • G.R. No. 45898 April 10, 1939 - JOVITA JOVEN v. MARCELO T. BONCAN, ET AL.

    067 Phil 252

  • G.R. No. 46530 April 10, 1939 - PEOPLE OF THE PHIL. v. CATALINO RABAO

    067 Phil 255

  • G.R. No. 45123 April 12, 1939 - AGRIPINO INFANTE v. MARCOS DULAY

    067 Phil 259

  • G.R. No. 45165 April 12, 1939 - GREGORIA JIMENEZ v. GEROMIMO JIMENEZ

    067 Phil 263

  • G.R. No. 45277 April 12, 1939 - TORIBIO TEODORO v. JUAN POSADAS

    067 Phil 267

  • G.R. No. 45306 April 12, 1939 - JOSUE SONCUYA v. LA URBANA

    067 Phil 271

  • G.R. No. 45365 April 12, 1939 - FULTON IRON WORKS CO. v. SIDNEY C. SCHWARZKOPF

    067 Phil 274

  • G.R. No. 45375 April 12, 1939 - COMMONWEALTH OF THE PHIL. v. GLORIA BALDELLO

    067 Phil 277

  • G.R. No. 45454 April 12, 1939 - EULALIO GARCIA v. SINFOROSA C. DAVID, ET AL.

    067 Phil 279

  • G.R. No. 45515 April 12, 1939 - TOLARAM MENGHRA v. BULCHAND ARACHAND, ET AL.

    067 Phil 286

  • G.R. No. 45742 April 12, 1939 - TIBURCIO MAMUYAC v. PEDRO ABENA

    067 Phil 289

  • G.R. No. 45752 April 12, 1939 - PEOPLE OF THE PHIL. v. JUAN PERALTA, ET AL.

    067 Phil 293

  • G.R. No. 45821 April 12, 1939 - SOCONY-VACUUM CORPORATION v. LEON C. MIRAFLORES

    067 Phil 304

  • G.R. No. 45899 April 12, 1939 - RAYMUNDO VARGAS v. NIEVES TANCIOCO,, ET AL.

    067 Phil 308

  • G.R. No. 45405 April 13, 1939 - IN RE: ANTONIO FRANCO

    067 Phil 312

  • G.R. No. 45529 April 13, 1939 - VENANCIO QUEBLAR v. LEONARDO GARDUÑO

    067 Phil 316

  • G.R. No. 46428 April 13, 1939 - PEOPLE OF THE PHIL. v. IRINEO TUMLOS

    067 Phil 320

  • G.R. No. 45253 April 14, 1939 - FIDELITY AND SURETY COMPANY OF THE PHIL. v. ISABELO G. SANCHEZ, ET AL.

    067 Phil 323

  • G.R. No. 45310 April 14, 1939 - MARCOS J. ROTEA v. FRANCISCA DELUPIO

    067 Phil 330

  • G.R. No. 45400 April 14, 1939 - MARCIANA LUNASCO v. VETERANS ADMINISTRATION

    067 Phil 333

  • G.R. No. 45536 April 14, 1939 - PEDRO AMANTE v. SERAFIN P. HILADO

    067 Phil 338

  • G.R. No. 45601 April 14, 1939 - TAVERA-LUNA v. MARIANO NABLE

    067 Phil 340

  • G.R. No. 45687 April 14, 1939 - CARIDAD ESTATE OF CAVITE, INC. v. VICENTE AVILA

    067 Phil 345

  • G.R. No. 45931 April 14, 1939 - URBANO SERRANO v. VICENTE DE LA CRUZ

    067 Phil 348

  • G.R. No. 45340 April 15, 1939 - MARCELA BALLESTEROS v. VETERANS ADMINISTRATION

    067 Phil 351

  • G.R. No. 45430 April 15, 1939 - TERESA GARCIA v. LUISA GARCIA, ET AL.

    067 Phil 353

  • G.R. No. 45643 April 16, 1939 - RAYMUNDO CORDERO v. COURT OF FIRST INSTANCE OF LAGUNA, Respondents.

    067 Phil 358

  • G.R. No. 45576 April 19, 1939 - MAXIMIANO FUENTES v. JUSTICE OF THE PEACE OF PILA, LAGUNA, ET AL.

    067 Phil 364

  • G.R. No. 45248 April 18, 1939 - VICENTE REYES VILLAVICENCIO v. SANTIAGO QUINIO

    067 Phil 367

  • G.R. No. 45418 April 18, 1939 - AMBROSIO RAMOS, ET AL. v. H. A. GIBBON, ET AL.

    067 Phil 371

  • G.R. No. 45701 April 18, 1939 - TIRSO GARCIA v. TY CAMCO SOBRINO

    067 Phil 384

  • G.R. No. 45721 April 18, 1939 - MELCHOR LAMPREA v. DIRECTOR OF LANDS, ET AL.

    067 Phil 388

  • G.R. No. 45803 April 18, 1939 - VICENTA C. VDA. DE GUIDOTE v. BANK OF THE PHILIPPINE ISLANDS

    067 Phil 391

  • G.R. No. 45923 Abril 18, 1939 - CHOA FUN v. EL SECRETARIO DEL TRABAJO

    067 Phil 394

  • G.R. No. 46015 April 18, 1939 - LIBERATO JIMENEZ v. INES DE CASTRO, ET AL.

    067 Phil 398

  • G.R. No. 46043 April 18, 1939 - TERESA LANDRITO, ET AL. v. RICARDO GONZALEZ, ET AL.

    067 Phil 401

  • G.R. No. 46134 April 18, 1939 - NICOLASA DE GUZMAN v. ANGELA LIMCOLIOC

    067 Phil 404

  • G.R. No. 46317 April 18, 1939 - JUSTO QUIMING v. MARIANO L. DE LA ROSA

    067 Phil 406

  • G.R. No. 45290 April 19, 1939 - GOVERNMENT OF THE PHIL. v. PAULA MERCADO

    067 Phil 409

  • G.R. No. 45126 April 19, 1939 - DIRECTOR OF LANDS v. ALBINO PANUNCIO

    067 Phil 414

  • G.R. No. 45166 April 19, 1939 - LEON C. VIARDO v. GALICANO GUTIERREZ

    067 Phil 416

  • G.R. No. 45190 April 19, 1939 - PEOPLE OF THE PHIL. v. ANTONIO APAREJADO, ET AL.

    067 Phil 418

  • G.R. No. 45531 April 19, 1939 - FRED OMNAS, ET AL. v. PABLO S. RIVERA

    067 Phil 419

  • G.R. No. 46002 April 19, 1939 - SALVACION RIOSA v. STILIANOPULOS, INC.

    067 Phil 422

  • G.R. No. 45715 April 20, 1939 - PEOPLE OF THE PHIL. v. REMIGIO OLIVERIA

    067 Phil 427

  • G.R. No. 45934 April 20, 1939 - FORTUNATO DIAZ v. PEOPLE OF THE PHIL.

    067 Phil 432

  • G.R. No. 45980 April 20, 1939 - MARIA MARTINEZ v. YEK TONG LIN FIRE & MARINE INSURANCE CO.

    067 Phil 436

  • G.R. No. 45493 April 21, 1939 - GERARDO GARCIA v. ANGEL SUAREZ

    067 Phil 441

  • G.R. No. 45595 April 21, 1939 - JUAN POSADAS, ET AL. v. GO HAP, ET AL.

    067 Phil 446

  • G.R. No. 46046 April 21, 1939 - PROCOPIO GAQUIT v. DOROTEO CONUI

    067 Phil 449

  • G.R. No. 46570 April 21, 1939 - JOSE D. VILLENA v. SECRETARY OF THE INTERIOR

    067 Phil 451

  • G.R. No. 45449 April 22, 1939 - TOMAS S. OCEJO v. CONSUL GENERAL OF SPAIN

    067 Phil 475

  • G.R. No. 46330 April 22, 1939 - IRENEO ABAD SANTOS, ET AL. v. PROVINCE OF TARLAC, ET AL.

    067 Phil 480

  • G.R. No. 45413 April 24, 1939 - LA YEBANA, CO., INC. v. JULIO L. VALENZUELA, ET AL.

    067 Phil 482

  • G.R. No. 45666 April 24, 1939 - ALFREDO VALENZUELA v. PEOPLE OF THE PHIL.

    067 Phil 490

  • G.R. No. 45978 April 24, 1939 - MIGUELA ELEAZAR v. EUSEBIO ELEAZAR

    067 Phil 497

  • G.R. No. 46029 April 24, 1939 - NATIONAL LOAN AND INVESTMENT BOARD v. LUIS MENESES

    067 Phil 498

  • G.R. No. 45369 April 25, 1939 - ISABELA SUGAR CO., INC. v. ALFFREDO L. YATCO

    067 Phil 500

  • G.R. No. 45544 April 25, 1939 - COLLECTOR OF INTERNAL REVENUE v. LORENZO ECHARRI

    067 Phil 502

  • G.R. No. 45624 April 25, 1939 - GEORGE LITTON v. HILL & CERON, ET AL.

    067 Phil 509

  • G.R. No. 45739 April 26, 1939 - PEOPLE OF THE PHIL. v. SOTERO PEJI BAUTISTA

    067 Phil 518

  • G.R. No. 45755 April 25, 1939 - ASUNCION ABAD v. AMANDO AQUINO

    067 Phil 526

  • G.R. No. 45964 April 26, 1939 - PEOPLE OF THE PHIL. v. RESTITURO FALLER

    067 Phil 529

  • G.R. No. 46035 April 25, 1939 - DIRECTOR OF LANDS v. PHILIPPINE NATIONAL BANK, ET AL.

    067 Phil 531

  • G.R. No. 46260 April 26, 1939 - PABLO TAMAYO v. FRANCISCO E. JOSE, ET AL.

    067 Phil 536

  • G.R. No. 46356 April 25, 1939 - FRUCTUOSA VELASCO VDA. DE TALAVERA v. CORRECTIONAL INSTITUTION FOR WOMEN

    067 Phil 538

  • G.R. No. 45403 April 26, 1939 - NATIONAL CITY BANK OF NEW YORK v. NEW YORK TONG LIN & MARINE INSURANCE COMPANY

    067 Phil 544

  • G.R. No. 45519 April 26, 1939 - RUFINA SALAO, ET AL. v. TEOFILO C. SANTOS, ET AL.

    067 Phil 547

  • G.R. No. 45521 April 26, 1939 - JOSE MORENO, ET AL. v. BONIFACIO SAN MATEO, ET AL.

    067 Phil 551

  • G.R. No. 45598 April 26, 1939 - TAN PHO v. HASSAMAL DALAMAL

    067 Phil 555

  • G.R. No. 45614 April 26, 1939 - NORBERTO FORDAN v. ANTONIO LUZON

    067 Phil 559

  • G.R. No. 45662 April 26, 1939 - ENRIQUE CLEMENTE v. DIONISIO GALVAN

    067 Phil 565

  • G.R. No. 46366 April 26, 1939 - PHILIPPINE NATIONAL BANK v. PARDO Y ROBLES HERMANOS, ET AI. .

    067 Phil 570

  • G.R. No. 46492 April 26, 1939 - RAMON SOTELO v. ARSENIO P. DIZON, ET AL.

    067 Phil 573

  • G.R. No. 45173 April 27, 1939 - RED LINE TRANSPORTATION CO., INC. v. BACHRACH MOTOR COMPANY, INC.

    067 Phil 577

  • G.R. No. 45359 April 27, 1939 - JACINTO M. DEL SAZ OROZCO, ET AL. v. SALVADOR ARANETA

    067 Phil 591

  • G.R. No. 45506 April 27, 1939 - FORTUNATO MANZANERO v. REMEDIOS BONGON

    067 Phil 595

  • G.R. No. 45508 April 27, 1939 - SEGUNDA DEVEZA v. ERIBERTO BALMEO, ET AL.

    067 Phil 603

  • G.R. No. 45534 April 27, 1939 - JOSEFA RIZAL MERCADO, ET AL. v. ALFREDO HIDALGO REAL

    067 Phil 608

  • G.R. No. 45694 April 27, 1939 - FRANCISCO YATCO v. EL HOGAR FILIPINO

    067 Phil 610

  • G.R. No. 45724 April 27, 1939 - IGNACIO DE GUZMAN, ET AL. v. TEODORO IBEA, ET AL.

    067 Phil 633

  • G.R. No. 45741 April 27, 1939 - F. Y A. GARCIA DIEGO v. GLORIA DE ANTONIO, ET AL.

    067 Phil 637

  • G.R. No. 45185 April 28, 1939 - GOVERNMENT OF THE PHIL. v. SALUD ALDEGUER VIUDA DE ROMERO SALAS

    067 Phil 643

  • G.R. No. 45464 April 28, 1939 - JOSUE SONCUYA v. CARMEN DE LUNA

    067 Phil 646

  • G.R. No. 45625 April 28, 1939 - MARGARITA VILLANUEVA v. JUAN SANTOS

    067 Phil 648

  • G.R. No. 45761 April 28, 1939 - JULIA DEL ROSARIO, ET AL. v. ANTONIO DEL ROSARIO, ET AL.

    067 Phil 652

  • G.R. No. 45266 April 29, 1939 - SIMEON RAEL v. PROVINCIAL GOVERNMENT OF RIZAL

    067 Phil 654

  • G.R. No. 45410 April 29, 1939 - MACONDRAY & CO., INC. v. JOSE BERNABE

    067 Phil 658

  • G.R. No. 45412 April 29, 1939 - COSME CARLOS, ET AL. v. COSME CARLOS

    067 Phil 662

  • G.R. No. 45425 April 29, 1939 - JOSE GATCHALIAN v. COLLECTOR OF INTERNAL REVENUE

    067 Phil 666

  • G.R. No. 45479 April 29, 1939 - FELIX ATACADOR v. HILARION SILAYAN

    067 Phil 674

  • G.R. No. 45597 April 29, 1939 - MACARIA PASCUAL v. LORENZA RAMIREZ, ET AL.

    067 Phil 678

  • G.R. No. 45965 April 29, 1939 - AMPARO GONZALEZ, ET AL. v. PRIMITIVO TRINIDAD, ET AL.

    067 Phil 682

  • G.R. No. 46003 April 29, 1939 - SIXTO DE LA COSTA, ET AL. v. BONIFACIO CLEOFAS

    067 Phil 686

  • G.R. No. 46026 April 29, 1939 - JESUSA PORTILLO-RIVERA v. STRACHAN, MACMURRAY & CO., LTD.

    067 Phil 694

  • G.R. No. 46604 April 29, 1939 - FRANCISCO MORFE, ET AL. v. JUSTICE OF THE PEACE OF CALOOCAN, ET AL.

    067 Phil 696

  •  





     
     

    G.R. No. 45425   April 29, 1939 - JOSE GATCHALIAN v. COLLECTOR OF INTERNAL REVENUE<br /><br />067 Phil 666

     
    PHILIPPINE SUPREME COURT DECISIONS

    EN BANC

    [G.R. No. 45425. April 29, 1939.]

    JOSE GATCHALIAN, ET AL., Plaintiffs-Appellants, v. THE COLLECTOR OF INTERNAL REVENUE, Defendant-Appellee.

    Guillermo B. Reyes for Appellants.

    Solicitor-General Tuason for Appellee.

    SYLLABUS


    1. PARTNERSHIP OF A CIVIL NATURE; COMMUNITY OF PROPERTY; SWEEPSTAKES; INCOME TAX. — According to the stipulated facts the plaintiffs organized a partnership of a civil nature because each of them put up money to buy a sweepstakes ticket for the sole purpose of dividing equally the prize which they may win, as they did in fact in the amount of P60,000 (article 166C, Civil Code). The partnership was not only formed, but upon the organization thereon and the winning of the prize, J. G. personally appeared in the office of the Philippine Charity Sweepstakes, in his capacity as co-partner, as such collected the prize, the office issued the check for P60,000 in favor of J. G. and company, and the said partner, in the same capacity, collected the check. All these circumstances repel the idea that the plaintiffs organized and formed a community of property only.

    2. ID.; ID.; ID.; ID. — Having organized and constituted a partnership of a civil nature, the said entity is the one bound to pay the income tax which the defendant collected under the aforesaid section 10 (a) of Act No. 2833, as amended by section 2 of Act No. 3761. There is no merit in plaintiffs’ contention that the tax should be prorated among them and paid individually, resulting in their exemption from the tax.


    D E C I S I O N


    IMPERIAL, J.:


    The plaintiff brought this action to recover from the defendant Collector of Internal Revenue the sum of P1,863.44, with legal interest thereon, which they paid under protest by way of income tax. They appealed from the decision rendered in the case on October 23, 1936 by the Court of First Instance of the City of Manila, which dismissed the action with the costs against them.

    The case was submitted for decision upon the following stipulation of facts:jgc:chanrobles.com.ph

    "Come now the parties to the above-mentioned case, through their respective undersigned attorneys, and hereby agree to respectfully submit to this Honorable Court the case upon the following statement of facts:jgc:chanrobles.com.ph

    "1. That plaintiffs are all residents of the municipality of Pulilan, Bulacan, and that defendant is the Collector of Internal Revenue of the Philippines;

    "2. That prior to December 15, 1934 plaintiffs, in order to enable them to purchase one sweepstakes ticket valued at two pesos (P2), subscribed and paid therefor the amounts as follows:

    1. Jose Gatchalian P0.18

    2. Gregoria Cristobal .18

    3. Saturnina Silva .08

    4. Guillermo Tapia .13

    5. Jesus Legaspi .15

    6. Jose Silva .07

    7. Tomasa Mercado .08

    8. Julio Gatchalian .18

    9. Emiliana Santiago .18

    10. Maria C. Legaspi .16

    11. Francisco Cabral .13

    12. Gonzalo Javier .14

    13. Maria Santiago .17

    14. Buenaventura Guzman .13

    15. Mariano Santos .14

    ——

    Total 2.00

    "3. That immediately thereafter but prior to December 16, 1934, plaintiffs purchased, in the ordinary course of business, from one of the duly authorized agents of the National Charity Sweepstakes Office one ticket bearing No. 178637 for the sum of two pesos (P2) and that the said ticket was registered in the name of Jose Gatchalian and Company;

    "4. That as a result of the drawing of the sweepstakes on December 15, 1934, the above-mentioned ticket bearing No. 178637 won one of the third prizes in the amount of P50,000 and that the corresponding check covering the above-mentioned prize of P50,000 was drawn by the National Charity Sweepstakes Office in favor of Jose Gatchalian & Company against the Philippine National Bank, which check was cashed during the latter part of December, 1934 by Jose Gatchalian & Company;

    "5 That on December 29, 1934, Jose Gatchalian was required by income tax examiner Alfredo David to file the corresponding income tax return covering the prize won by Jose Gatchalian & Company and that on December 29, 1934, the said return was signed by Jose Gatchalian, a copy of which return is enclosed as Exhibit A and made a part hereof;

    "6. That on January 8, 1935, the defendant made an assessment against Jose Gatchalian & Company requesting the payment of the sum of P1,499.94 to the deputy provincial treasurer of Pulilan, Bulacan, giving to said Jose Gatchalian & Company until January 20, 1935 within which to pay the said amount of P1,499.94, a copy of which letter marked Exhibit B is inclosed and made a part hereof;

    "7. That on January 20, 1935, the plaintiffs, through their attorney, sent to defendant a reply, a copy of which marked Exhibit C is attached and made a part hereof, requesting exemption from the payment of the income tax to which reply there were enclosed fifteen (15) separate individual income tax returns filed separately by each one of the plaintiffs, copies of which returns are attached and marked Exhibits D-1 to D-15, respectively, in order of their names listed in the caption of this case and made parts hereof; a statement of sale signed by Jose Gatchalian showing the amounts put up by each of the plaintiffs to cover up the cost price of P2 of said ticket, copy of which statement is attached and marked as Exhibit E and made a part hereof; and a copy of the affidavit signed by Jose Gatchalian dated December 29, 1934 is attached and marked Exhibit F and made part hereof;

    "8. That the defendant in his letter dated January 28, 1935, a copy of which marked Exhibit G is enclosed, denied plaintiffs’ request of January 20, 1935, for exemption from the payment of tax and reiterated his demand for the payment of the sum of P1,499.94 as income tax and gave plaintiffs until February 10, 1935 within which to pay the said tax;

    "9. That in view of the failure of the plaintiffs to pay the amount of tax demanded by the defendant, notwithstanding subsequent demand made by defendant upon the plaintiffs through their attorney on March 23, 1935, a copy of which marked Exhibit H is enclosed, defendant on May 13, 1935 issued a warrant of distraint and levy against the property of the plaintiffs, a copy of which warrant marked Exhibit I is enclosed and made a part hereof;

    "10. That to avoid embarrassment arising from the embargo of the property of the plaintiffs, the said plaintiffs on June 15, 1935, through Gregoria Cristobal, Maria C. Legaspi and Jesus Legaspi, paid under protest the sum of P601.51 as part of the tax and penalties to the municipal treasurer of Pulilan, Bulacan, as evidenced by official receipt No. 7454879 which is attached and marked Exhibit J and made a part hereof, and requested defendant that plaintiffs be allowed to pay under protest the balance of the tax and penalties by monthly installments;

    "11. That plaintiffs’ request to pay the balance of the tax and penalties was granted by defendant subject to the condition that plaintiffs file the usual bond secured by two solvent persons to guarantee prompt payment of each installments as it becomes due;

    "12. That on July 16, 1935, plaintiff filed a bond, a copy of which marked Exhibit K is inclosed and made a part hereof, to guarantee the payment of the balance of the alleged tax liability by monthly installments at the rate of P118.70 a month, the first payment under protest to be effected on or before July 31, 1935;

    "13. That on July 16, 1935 the said plaintiffs formally protested against the payment of the sum of P602.51, a copy of which protest is attached and marked Exhibit L but that defendant in his letter dated August 1, 1936 overruled the protest and denied the request for refund of the plaintiffs;

    "14. That, in view of the failure of the plaintiffs to pay the monthly installments in accordance with the terms and conditions of the bond filed by them, the defendant in his letter dated July 23, 1935, copy of which is attached and marked Exhibit M, ordered the municipal treasurer of Pulilan, Bulacan to execute within five days the warrant of distraint and levy issued against the plaintiffs on March 13, 1935;

    "15. That in order to avoid annoyance and embarrassment arising from the levy of their property, the plaintiffs on August 28, 1936, through Jose Gatchalian, Guillermo Tapia, Maria Santiago and Emiliano Santiago, paid under protest to the municipal treasurer of Pulilan, Bulacan. the sum of P1,260.93 representing the unpaid balance of the income tax and penalties demanded by defendant as evidenced by income tax receipt No. 35811 which is attached and marked Exhibit N and made a part hereof; and that on September 3, 1936, the plaintiffs formally protested to the defendant against the payment of said amount and requested the refund thereof, copy of which is attached and marked Exhibit O and made part hereof; but that on September 4, 1936, the defendant overruled the protest and denied the refund thereof; copy of which is attached and marked Exhibit P and made a part hereof; and

    "16. That plaintiffs demanded upon defendant the refund of the total sum of one thousand eight hundred and sixty-three pesos and forty-four centavos (P1,863.44) paid under protest by them but that defendant refused and still refuses to refund ,the said amount notwithstanding the plaintiffs’ demands.

    "17. The parties hereto reserve the right to present other and additional evidence if necessary."cralaw virtua1aw library

    Exhibit E referred to in the stipulation is of the following tenor:jgc:chanrobles.com.ph

    "To whom it my concern:jgc:chanrobles.com.ph

    "I, Jose Gatchalian, a resident of Pulilan, Bulacan, married, of age, hereby certify, that on the 11th day of August, 1934, I sold parts of my share on ticket No. 178637 to the persons and for the amount indicated below and the part of my share remaining is also shown to wit:

    Purchaser Amount Address

    1. Mariano Santos P0.14 Pulilan, Bulacan.

    2. Buenaventura Guzman .13 Do.

    3. Maria Santiago .17 Do.

    4. Gonzalo Javier .14 Do.

    5. Francisco Cabral .13 Do.

    6. Maria C. Legaspi .16 Do.

    7. Emiliana Santiago .13 Do.

    8. Julio Gatchalian .13 Do.

    9. Jose Silva .07 Do.

    10. Tomasa Mercado .08 Do.

    11. Jesus Legaspi .16 Do.

    12. Guillermo Tapia .18 Do.

    13. Saturnina Silva .08 Do.

    14. Gregoria Cristobal .18 Do.

    15. Jose Gatchalian .18 Do.

    ——

    2.00 Total cost of said ticket; and that, therefore, the persons named above are entitled to the parts of whatever prize that might be won by said ticket.

    "Pulilan, Bulacan, P. I.

    (Sgd.) "JOSE GATCHALIAN"

    And a summary of Exhibits D-1 to D-15 inserted in the bill of exceptions as follows:jgc:chanrobles.com.ph

    "RECAPITULATIONS OF 15 INDIVIDUAL INCOME TAX RETURNS FOR 1934 ALL DATED JANUARY 19, 1935 SUBMITTED TO THE COLLECTOR OF INTERNAL REVENUE.

    Exhibit Purchase Price Net

    Name No. Price won Expenses prize

    1. Jose Gatchalian D-1 P0.18 P4,425 P480 3,945

    2. Gregoria Cristobal D-2 .18 4,575 2,000 2,575

    3. Saturnina Silva D-3 .08 1,875 360 1,515

    4. Guillermo Tapia D-4 .13 3,325 360 2,965

    5. Jesus Legaspi by Maria

    Cristobal D-5 .15 3,825 720 3,105

    6. Jose Silva D-6 .08 1,875 360 1,615

    7. Tomasa Mercado D-7 .07 1,875 360 1,515

    8. Julio Gatchalian by Bea

    triz Guzman D-8 .13 3,150 240 2,910

    9. Emiliana Santiago D-9 .13 3,325 360 2,966

    10. Maria C. Legaspi D-10 .16 4,100 960 3,140

    11. Francisco Cabral D-11 .13 3,325 360 2965

    12. Gonzalo Javier D-12 .14 3,325 360 2,965

    13. Maria Santiago D-13 .17 4,350 360 3,990

    14. Buenaventura Guzman D-14 .13 3,325 360 2,965

    15. Mariano Santos D-15 .14 3,325 360 2,965

    —— ——— —— ——

    2.00 50,000"

    The legal questions raised in plaintiffs-appellants’ five assigned errors may properly be reduced to the two following: (1) Whether the plaintiffs formed a partnership, or merely a community of property without a personality of its own; in the first case it is admitted that the partnership thus formed is liable for the payment of income tax, whereas if there was merely a community of property, they are exempt from such payment; and (2) whether they should pay the tax collectively or whether the latter should be prorated among them and paid individually.

    The Collector of Internal Revenue collected the tax under section 10 of Act No. 2833, as last amended by section 2 of Act No. 3761, reading as follows:jgc:chanrobles.com.ph

    "SEC. 10. (a) There shall be levied, assessed, collected, and paid annually upon the total net income received in the preceding calendar year from all sources by every corporation, joint-stock company, partnership, joint account (cuenta en participacion), association or insurance company, organized in the Philippine Islands, no matter how created or organized, but not including duly registered general co-partnerships (compañias colectivas), a tax of three per centum upon such income; and a like tax shall be levied, assessed, collected, and paid annually upon the total net income received in the preceding calendar year from all sources within the Philippine Islands by every corporation, joint-stock company, partnership, joint account (cuenta en participacion), association, or insurance company organized, authorized, or existing under the laws of any foreign country, including interest on bonds, notes, or other interest-bearing obligations of residents, corporate or otherwise: Provided, however, That nothing in this section shall be construed as permitting the taxation of the income derived from dividends or net profits on which the normal tax has been paid.

    "The gain derived or loss sustained from the sale or other disposition by a corporation, joint-stock company, partnership, joint account (cuenta en participacion), association, or insurance company, or property, real, personal, or mixed, shall be ascertained in accordance with subsections (c) and (d) of section two of Act Numbered Two thousand eight hundred and thirty-three, as amended by Act Numbered Twenty-nine hundred and twenty-six.

    "The foregoing tax rate shall apply to the net income received by every taxable corporation, joint-stock company, partnership, joint account (cuenta en participacion), associations or insurance company in the calendar year nineteen hundred and twenty and in each year thereafter."cralaw virtua1aw library

    There is no doubt that if the plaintiffs merely formed a community of property the latter is exempt from the payment of income tax under the law. But according to the stipulated facts the plaintiffs organized a partnership of a civil nature because each of them put up money to buy a sweepstakes ticket for the sole purpose of dividing equally the prize which they may win, as they did in fact in the amount of P50,000 (article 1665, Civil Code). The partnership was not only formed, but upon the organization thereof and the winning of the prize, Jose Gatchalian personally appeared in the office of the Philippine Charity Sweepstakes, in his capacity as co-partner, as such collected the prize, the office issued the check for P50,000 in favor of Jose Gatchalian and company, and the said partner. in the same capacity, collected the said check. All these circumstances repel the idea that the plaintiffs organized and formed a community of property only.

    Having organized and constituted a partnership of a civil nature, the said entity is the one bound to pay the income tax which the defendant collected under the aforesaid section 10 (a) of Act No. 2833, as amended by section 2 of Act No. 3761. There is no merit in plaintiffs’ contention that the tax should be prorated among them and paid individually, resulting in their exemption from the tax.

    In view of the foregoing, the appealed decision is affirmed, with the costs of this instance to the plaintiff. appellants. So ordered.

    Avanceña, C.J., Villa-Real, Diaz, Laurel, Concepcion and Moran, JJ., concur.

    G.R. No. 45425   April 29, 1939 - JOSE GATCHALIAN v. COLLECTOR OF INTERNAL REVENUE<br /><br />067 Phil 666


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