[019]

PEOPLE

OF THE

PHILIPPINE ISLANDS,

PLAINTIFF-APPELLANT

V.

TAN BOON KONG,

DEFENDANT-APPELLEE

GR NO L-35262 MARCH 15, 1930

OSTRAND, J.
SV: Tan Boon Kong, manager of a corporation engaged in buying and selling copra, sugar
and other goods was charged in an information for violation of a law requiring the making of
true returns of receipts and sales. The demurrer to the info was sustained on the ground
that the offense was committed by the corporation and not by the officials or agents
SC: a corporation can only act through its officers and agents, in this case, the false return
was caused by the manager and he should bear its consequences.

1. An information was filed against Tan Boon Kong charging him with the
violation of sec. 14581 of Act 2711 as amended.
2. According to the information the Tan as corporation organized under the
laws of the Philippine islands and engaged in the purchase and sale of sugar,
bayon, copra and other native products and should be subject to pay
internal-revenue taxes.
3. Allegedly he only declared in 1924 for the purpose of taxation the sum of
P2,352,761.94 when in fact he knew that the total gross sales of the said
corporation amounted to P2,543,303.44 (difference P190,541.50, which he
failed to declare)
4. Judge of the 23rd judicial district sustained the demurrer to the information
charging Tan with the said violation. Hence this appeal

SEC. 1458. Payment of percentage taxes Quarterly reports of earnings. The

percentage taxes on business shall be payable at the end of each calendar quarter in the
amount lawfully due on the business transacted during each quarter; and it shall be on the
duty of every person conducting a business subject to such tax, within the same period as is
allowed for the payment of the quarterly installments of the fixed taxes without penalty, to
make a true and complete return of the amount of the receipts or earnings of his business
during the preceeding quarter and pay the tax due thereon. . . . (Act No. 2711.)

ISSUE: should Tan as manager of the corporation be liable criminally

under the sec. 2723 2 of act no. 2711 for violation of sec 1458 of the
same act for the benefit of the said corporation? YES

the court below based the ruling on the ground that the offense charged
must be regarded as committed by the corporation and not by its officials or
agents.

But a corporation can act only through its officers and agents and where the
business itself involves a violation of the law, the rule is that all who
participate in it are liable

State v. Burnam: the manager of a corporation was criminally liable for the
violation of a statute by the corporation though he was not present when it
was committed

In the present case, the info alleges that Tan was the manager of the
corporation, he made a false return for the purposes of taxation, and such
false return constitutes a violation of law. Tan, as the author of the illegal act,
must answer for its consequences if the allegations are proven.

Ruling appealed from REVERSED. Case remanded for further proceedings not
inconsistent with the SC ruling.

SEC. 2723. Failure to make true return of receipts and sales. Any person who, being
required by law to make a return of the amount of his receipts, sales, or business, shall fail
or neglect to make such return within the time required, shall be punished by a fine not
exceeding two thousand pesos or by imprisonment for a term not exceeding one year, or
both.
And any such person who shall make a false or fraudulent return shall be punished by a fine
not exceeding ten thousand pesos or by imprisonment for a term not exceeding two years,
or both. (Act No. 2711.)