2y2s Syllabus Compilation

TAXATION I
Maria Theresa San Pablo - Llamado

2nd Semester, AY 2017-2018
De La Salle University
College of Law
Part 1: General Principles
Reference: Vitug, Jose C. and Acosta, Ernesto D. Tax Law and Jurisprudence.
Manila: Rex Book Store, Inc. 2006. (Part I only, pp. 1-48)
I. CONCEPT
A. Taxation and Tax defined.
B. Tax as distinguished from other forms of exactions (Vitug, p. 29-30)

1. Tax vs. Tariff
2. Tax vs. license fee
Case(s):
Osmeña v. Orbos (220 SCRA 703)
PAL v. Edu (164 SCRA 320)
Progressive Development v. Q.C. (172 SCRA 629)
Compania de Tabacos v. City of Manila (8 SCRA 367)
3. Tax vs. Toll
Sec. 155 of LGC
Case: Ferrer Jr. vs. Bautista (G.R. No. 210551, June 30, 2015)
4. Tax vs. Special Assessment
Sec. 240 LGC
Case(s): Republic v. Bacolod Murcia (17 SCRA 632)
5. Tax vs. Ordinary debt
Case(s):
Philex Mining Corporation v. CIR (294 SCRA 687)
Caltex v. COA (208 SCRA 755)
Air Canada vs. CIR (G.R. No. 169507, January 11, 2016)
II. THEORY AND BASIS OF TAXATION
A. Lifeblood Theory
B. Necessity Theory
Case(s):
1
Phil Guaranty Co., Inc. v. CIR (13 SCRA 775)
Ferdinand R. Marcos II v. CA (273 SCRA 47)
NPC v. City of Cabanatuan (401 SCRA 259)
C. Benefits-Protection Theory (Symbiotic Relationship)
Case(s):
Commissioner v. Algue (158 SCRA 9)
D. Jurisdiction over Subject and Objects
III. PURPOSES/OBJECTIVES OF TAXATION
A. Revenue-raising
B. Non-revenue/special or regulatory
Case(s):
Caltex v. Commission on Audit (208 SCRA 726)
IV. GENERAL PRINCIPLES OF A SOUND TAX SYSTEM (Vitug, pp. 2-3)
A. Fiscal adequacy
B. Theoretical justice
C. Administrative feasibility
V. SCOPE AND LIMITATIONS OF TAXATION (Vitug, pp. 3-24)
A. Inherent Limitations
1. Public Purpose
Case(s):
Pascual v. Sec. Public Works (110 Phil. 331)
Planters Products, Inc.v. Fertiphil Corporation (548 SCRA 485)
2. Inherently Legislative
General Rule: Power to tax may not be delegated
Case(s):
Tio vs. Videogram Regulatory Board (151 SCRA 208)
Commissioner vs. Santos (277 SCRA 617)
Kapatiran v. Tan (163 SCRA 372)
Exceptions from prohibition against delegation of power to tax:
a) Delegation to Local Governments
Sec. 5, Art. X, Philippine Constitution

Local Government Code (RA 7160), Book ii
Case(s):
2
LTO v. City of Butuan (322 SCRA 805)
Basco v. PAGCOR (197 SCRA 52)
Ferrer Jr. vs. Bautista (supra)
b) Delegation to the President
Sec. 28(2) Art. VI, Constitution

Sec. 401, Tariff and Customs Code
Case(s):
Garcia v. Executive Secretary (210 SCRA 219)
ABAKADA v. Ermita (469 SCRA 1)
c) Delegation to Administrative Agencies
Case(s):
Maceda v. Macaraig (197 SCRA 771)
Commissioner v. CA (261 SCRA 236)
3. Territorial
Case(s):
Iloilo Bottlers v. City of Iloilo (164 SCRA 607)
Smith vs. CIR (CTA Case No. 6268. Sep. 12, 2002)
4. International Comity
Sec. 2, Art. II Philippine Constitution

Case(s):
Tañada v. Angara (272 SCRA 18)
CIR vs. Pilipinas Shell Petroleum Corporation (G.R. No. 188497, February
19, 2004)
Air Canada vs. CIR (supra)
5. Exemption of Government Entities, Agencies, and Instrumentality
Sec. 27(C), NIRC
Case(s):
Manila International Airport Authority v. CA (495 SCRA 591)
Macta-Cebu International Airport Authority vs. City of Lapu-Lapu (G.R. No.
181756, June 15, 2015)
Philippine Fisheries Development Authority v. CA (528 SCRA 706)
B. Constitutional Limitations
[Note that the Constitution does not grant the power to tax on the State, since the
power is inherent. Rather, it regulates and defines, rather than grant, the power.]
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1. Provisions directly affecting Taxation
a. Prohibition against imprisonment for non-payment of poll tax: No

person shall be imprisoned for non-payment of a poll tax. (Sec. 20, Art. III,
Constitution)
Community tax v. Poll tax

Sec. 156 – 164, Local Government Code (LGC) (RA 7160)
b. Uniformity and Equity in Taxation: The rule of taxation shall be

uniform and equitable. The Congress shall evolve a progressive system of
taxation. (Sec. 28(1), Art.VI, Constitution)
Case(s):
Uniformity in Taxation
City of Baguio v. de Leon (25 SCRA 938)

Commissioner v. Lingayen Gulf Electric (164 SCRA 27)
Valid Classification of taxpayers/subject matter to be taxed
Pepsi Cola v. City of Butuan (24 SCRA 787)
c. Grant By Congress Of Authority To President To Impose Tariff Rates:

The Congress may, by law, authorize the President to fix within specified
limits, and subject to such limitations and restrictions and as it may impose,
tariff rates, import and export quotas, tonnage and wharfage dues and
other duties or imposts within the framework of the national development
program of the Government.
d. Prohibition Against Taxation Of Religious, Charitable Entities And

Educational Entities: Charitable institutions, churches, parsonages or
convents appurtenant thereto, mosques, and non-profit cemeteries, and all
lands, buildings, and improvements actually, directly, and exclusively used
for religious, charitable or educational purposes shall be exempt from
taxation. (Sec. 28(3), Art. VI, Constitution)
Case(s):
Abra Valley College v. Aquino (162 SCRA 106)
Lung Center of the Philippines v. Quezon City (433 SCRA 119)
e. Prohibition Against Taxation Of Non-Stock, Non-Profit Institutions: All

revenues and assets of non-stock, non-profit educational institutions used
actually, directly, and exclusively for educational purposes shall be exempt
from taxes and duties. (Sec. 4(3) and (4), Art. XIV, Constitution; Sec. 28(3),
Art. VI, Constitution)
Secs. 27(B) and 30(H) of NIRC

Revenue Memorandum Circular (RMC) No. 76-2003
4
Revenue Regulations No. 13-98 (Deductibility of Contributions or Gifts
Actually Paid or Made to Accredited Donee Institutions in Computing
Taxable Income)
f. Majority Vote Of Congress For Grant Of Tax Exemption: No law

granting any tax exemption shall be passed without the concurrence of a
majority of all the members of the Congress. (Sec. 28(4), Art. VI,
Constitution)
g. Prohibition On Use Of Tax Levied For Special Purpose: All money

collected on any tax levied for a special purpose shall be treated as a
special fund and paid out for such purpose only. If the purpose for which a
special fund was created has been fulfilled or abandoned, the balance, if
any, shall be transferred to the general funds of the Government. (Sec. 29,
Art. VI, Constitution)
Case(s):
Gaston v. Republic Planters Bank (158 SCRA 626)
h. President’s Veto Power On Appropriation, Revenue And Tariff Bills:

The President shall have the power to veto any particular item or items in
an appropriation, revenue, or tariff bill, but the veto shall not affect the
item or items to which he does not object. (Sec. 25(2) and Sec. 27(2), Art.
VI, Constitution)
Case(s):
Gonzales v. Macaraig (191 SCRA 452)
Araullo v. Aquino III (G.R. No. 209287, 209135 etc. February 3, 2015)
i. Non-impairment of Jurisdiction of the Supreme Court: The Supreme

Court shall have the power to review and revise, reverse, modify or affirm
on appeal or certiorari, as the law or the Rules of Court may provide, final
judgment or decrees of lower courts in all cases involving the legality of any
tax, impost, assessment, or toll, or any penalty imposed in relation thereto.
(Sec. 2 and 5(b), Art. VIII, Constitution)
j. Grant Of Power To LGUs To Create Its Own Sources Of Revenue: Each

local government unit shall have the power to create its own sources of
revenue and to levy taxes, fees, and charges subject to such guidelines and
limitations as the Congress may provide, consistent with the basic policy of
local autonomy. Such taxes, fees and charges shall accrue exclusively to
the local governments. Local government units shall have a just share, as
determined by law, in the national taxes which shall be automatically
released to them.
2. Provisions indirectly affecting Taxation
a. Due Process.
Sec. 1, Art. III, Constitution
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Case(s):
Tan v. Del Rosario (237 SCRA 324)
Sison v. Ancheta (130 SCRA 654)
b. Religious Freedom.
Case(s):
American Bible Society v. City of Manila (101 Phil 386)
Tolentino vs. Sec. of Finance (235 SCRA 630)
c. Non-impairment of Obligations of Contracts.

Sec. 11, Art. XII, Constitution
Case(s):
Tolentino v. Sec. of Finance (235 SCRA 630)
VI. STAGES OF TAXATION (Vitug, pp. 25-26)
A. Levy
B. Assessment and Collection
C. Payment
D. Refund
VII. KINDS OF TAXES (Vitug, pp. 26-31)
A. As to Object
1. Personal, capitation or poll tax (e.g. basic community tax)
2. Property tax (e.g. realty tax)
3. Privilege tax (e.g. internal revenue taxes, customs duties)
Case(s):
Villanueva v. City of Iloilo (26 SCRA 578)
Ass. of Customs Brokers v. Municipal Board (93 Phil 106)
B. As to Burden or Incidence
1. Direct (e.g. income, estate and donor’s tax)
2. Indirect (e.g. excise, VAT)
Case(s):
6
Tolentino v. Secretary of Finance (235 SCRA 630)
Philippine Acetylene v. Commissioner (20 SCRA 1056)
Maceda v. Macaraig (197 SCRA 771; 223 SCRA 217)
Comm. v. John Gotamco (148 SCRA 36)
CIR v. PLDT (478 SCRA 61)
C. As to Tax Rates
1. Specific tax
2. Ad valorem
3. Mixed
D. As to Purposes
1. General or Fiscal (e.g. income taxes)
2. Special, Regulatory or Sumptuary (e.g SEF under the LGC)
E. As to Scope or Authority to Impose
1. National – internal revenue taxes
2. Local – real property tax, municipal tax
F. As to Graduation
1. Progressive (e.g. income tax)
2. Regressive
3. Proportionate (e.g. real estate tax (Sec. 233 Local Government Code))
VIII. DOCTRINES IN TAXATION (Vitug, pp. 39-48)
A. Prospectivity of Tax Laws
Secs. 203, 222, NIRC

Sec. 1603, TCC
Secs. 222, 225, LGC
B. Imprescriptibility
C. Situs of Taxation (Vitug, p.10)
Case(s):
Wells Fargo v. Collector (70 Phil 325)
Commissioner v. BOAC (149 SCRA 395)
CIR vs. Japan Airlines (202 SCRA 450)
Tan v. Del Rosario (237 SCRA 324)
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D. Double Taxation
1. Strict Sense
Case(s):
Alcan Packaging Starpack Corporation v. The Treasurer Of The City Of
Manila (C.T.A. AC NO. 17. September 11, 2006)
2. Broad Sense
Case(s):
Villanueva v. City of Iloilo (26 SCRA 578)
Commissioner Of Internal Revenue vs. Solidbank Corporation (416 SCRA
436)
3. Constitutionality of Double Taxation
Case(s):
China Banking Corporation v. Court Of Appeals, Court Of Tax Appeals, and
CIR (403 SCRA 634)
4. Tax Treaties (as Relief from Double Taxation)
Case(s):
Commissioner Of Internal Revenue v. S.C. Johnson And Son, Inc. (309 SCRA
87)
Air Canada v. CIR (supra)
E. Escape from Taxation
1. Shifting of tax burden
a. Ways of Shifting the tax burden
b. Taxes that can be shifted
c. Meaning of impact and incidence of taxation
2. Tax avoidance
Case(s):
Delpher Trades Corp. v. IAC (157 SCRA 349)
Yutivo v. CTA (1 SCRA 160)
3. Tax evasion
Case(s):
Republic v. Gonzales (13 SCRA 633)
CIR v. Estate of Benigno Toda (438 SCRA 290)
4. Exemption from Taxation
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a. Meaning of Exemption from Taxation
b. Nature of Tax Exemption
Case(s):
Tolentino v. Sec. of Finance (235 SCRA 630)
CIR v. PLDT (478 SCRA 61)
CIR vs. John Gotamco and Sons, Inc. (148 SCRA 36)
c. Kinds of tax exemption
i. Express
ii. Implied
iii. Contractual
d. Nature of the power to grant tax exemption
e. Rationale/grounds for tax exemption
f. Revocation of tax exemption
F. Compensation and Set-Off (Vitug, p. 43)
Case(s):
Philex Mining Corp. vs. CIR (294 SCRA 687)
CIR vs. ESSO Standard Eastern, Inc. (172 SCRA 364)
G. Taxpayer’s Suit
Case(s):
Pascual v. Sec. of Public Works, 110 Phil. 331
Dumlao v. Comelec (95 SCRA 392)
Lozada and Igot v. Comelec (120 SCRA 337)
Gonzales v. Marcos (65 SCRA 624)
Osmena v. Abaya (G.R. Nos. 211737 and 214756, January 13, 2016)
H. Compromises
Sec. 204, NIRC

Sec. 709, Sec. 2316, TCC
I. Tax Amnesty
1. Definition
2. Distinguished from tax exemption
IX. CONSTRUCTION AND INTERPRETATION OF TAX LAWS
A. Tax Laws
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1. General Rule
2. Exception
B. Tax Exemption and Exclusion
1. General Rule
Case(s):
CIR v. YMCA (298 SCRA 83)
2. Exceptions
Case(s):
C. BIR Rules and Regulations (Secs. 4 and 244 of the NIRC)
1. Administrative rules and regulations are intended to carry out not to modify
the law.
Case(s):
CIR v. C.A., R.O.H Auto Prodcuts Phil., Inc., et.al. (240 SCRA 368)
2. Interpretative regulations need not be published and neither is hearing

required if intended only to clarify statutory provisions for proper observance.
Case(s):
CIR vs. CA, CTA and Fortune Tobacco (261 SCRA 236)
3. BIR Rulings and circulars, rules and regulations promulgated by the

Commissioner of Internal Revenue would have no retroactive application if to
so apply them would be prejudicial to the taxpayers.
Sec. 246, NIRC
Case(s):
CIR v. Telefunken Semiconductor Philippines, Inc. (249 SCRA 401)
CIR v. Mega General Merchandising Corp. (166 SCRA 166)
CIR v. Burroughs (142 SCRA 324)
ABS-CBN v. CTA (108 SCRA 142)
4. Any revocation, modification, reversal of such rules/regulations including

rulings of the CIR shall not be given retroactive effect except in case of rulings
(a) where taxpayer deliberately misstates or omits material facts; (b) where
facts subsequently gathered materially differ from the facts on which rulings
are based; and (c) where taxpayer acted in bad faith.
Case(s):
CIR v. Benguet Corporation (463 SCRA 28)
10
5. There is requirement of notice and hearing when promulgated rules
substantially adds to or increases the burden of those governed.
Case(s):
CIR vs. CA, CTA and Fortune Tobacco (261 SCRA 236)
6. Tax regulations differentiated: Interpretative v. Legislative
Case(s):
BPI Leasing Corporation v. CA, CTA and CIR (416 SCRA 4)
D. Penal Provisions of Tax Laws
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Part 2: Income Taxation
References: 1. Mamalateo, Victorino C., Philippine Income Tax. Manila: Rex Bookstore,
Inc. 2010 Edition.
2. National Internal Revenue Code of 1997. Mandaluyong City: National

Book Store, July 2009 Edition.
I. INTRODUCTION (Mamalateo, pp. 1-10)
A. Income Tax Systems
1. Global Tax System
2. Schedular Tax System
3. Semi-schedular or semi-global tax system
B. Features of the Philippine Income Tax Law
1. Direct tax
2. Progressive tax
3. Comprehensive
4. Semi-schedular or semi-global tax system
C. Criteria in Imposing Philipppine Income tax
1. Citizenship principle
2. Residence principle
3. Source principle
D. Types of Philippine Income tax
E. Taxable Period (Mamalateo, pp. 345-350)
1. Calendar Year
2. Fiscal Year
Secs. 46, 47, NIRC
3. Short Period
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II. CONCEPT OF INCOME
A. Income Tax Defined
Madrigal v. Rafferty (38 Phil 414)

Fisher v. Trinidad (43 Phil 973)
B. When is income taxable? (Mamalateo, pp. 11-12)
1. Existence of income
2. Realization of income
a. Tests of Realization
b. Actual v. constructive receipt
Limpan v. CIR (17 SCRA 703)

Republic v. dela Rama (18 SCRA 861)
3. Recognition of Income
4. Methods of accounting for taxable income and deductible expenses

(Mamalateo, pp. 335-345; pp. 350-354)
a. Cash v. accrual method of accounting
Secs. 43 – 45, 50, NIRC

Sec. 51- 53 Rev. Reg. No. 2 (RR 2)
b. Installment v. deferred payment v. percentage of completion (in long term

contracts)
Sec. 44, RR 2
c. Distinction between tax accounting and financial accounting
C. Tests in determining income (Mamalateo, pp. 79-81)
1. Realization Test
Eisner v. Macomber (252 US 189)
2. Claim of Right doctrine or Doctrine of ownership, command, or control
3. Economic benefit test / Doctrine of proprietary interest
4. Severance Test
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III. KINDS OF TAXPAYERS
A. Individual Taxpayers (Mamalateo, pp. 21-37)
1. Citizens
a. Resident citizens
b. Non-resident citizens
2. Aliens
a. Resident aliens
b. Non-resident aliens
i. 180 – day rule
ii. NRA engaged in trade or business in the Philippines
iii. NRA not engaged in trade or business in the Philippines
c. Special Class of Individual Employees
d. Estates and Trusts
e. Co-ownerships
f. General Professional Partnerships
i. GPP is not taxable entity
ii. Professional fee of GPP exempt from expanded withholding tax
iii. Share of partners in partnership profit deemed distributed to partners

in year profit earned
B. Corporations (Mamalateo, pp. 37-59)
1. Domestic corporation, defined
2. Partnership taxable as corporation
3. Joint Venture (JV) and Consortium
a. Exempt JV and consortium
b. Taxable JV consortium
4. Foreign Corporations
a. Resident foreign corporation
14
b. Non-resident foreign corporation
c. Subsidiary v. branch of a foreign corporation
IV. GROSS INCOME (Mamalateo, pp. 60-148)
A. Gross Income Defined
B. Gross Income v. Net Income v. Taxable Income
C. Sources of Income Subject to Tax
1. Compensation income
Sec. 32(A)(1), NIRC

Sec. 2.78 RR 2-98
Convenience of the Employer Rule
Collector v. Henderson (1 SCRA 649)
2. Fringe Benefits
Sec. 33, NIRC

RR 3-98 as amended by sec. 2 of RR 01-2015
3. Income from Business
Sec. 32(A), NIRC
4. Professional Income
5. Income from dealings in property (Mamalateo, pp. 302 – 333)
Sec. 32 (A, 3) NIRC

Rodriguez v. Collector (28 SCRA 1119)
Gonzales v. CTA (14 SCRA 71)
Gutierrez v. CTA (101 Phil 173)
i. Type of properties
aa. ordinary assets
bb. capital assets
What is capital asset
Sec. 39 (A), NIRC

Rev. Regs. 07-03
Distinction between ordinary and capital asset
Long term (capital) asset v. short term (capital) asset
15
Sec. 39 (B), NIRC
ii. Types of gains from dealings in property
aa. Ordinary income v. capital gain
Sec. 39, NIRC and Sec. 22 (Z), NIRC

bb. Actual v. presumed gain
Sec. 6 (E), NIRC

Sec. 24(D), NIRC
Sec. 27(D)(5), NIRC
Sec. 100, NIRC
cc. Net capital gain (loss)
Sec. 39 (A), NIRC

Tuason v. Lingad (58 SCRA 170)
Ferrer v. Collector (5 SCRA 1022)
Calasanz v. Commissioner (144 SCRA 664)
Gonzales v. CTA (14 SCRA 79)
iii. Special rules pertaining to income/loss from dealings in property

classified as capital asset
aa. Computation of the amount of the gain (loss)
Sec. 40 (A), NIRC
Cost or basis of the property sold
Sec. 40 (B), NIRC

Cost or basis of property exchanged in corporate readjustment
Sec. 40 (C) (5), NIRC

Recognition of gain/loss in exchange of property
General rule
Sec. 40 (C, 1), NIRC
Exceptions:
* Where no gain/loss shall be recognized

Sec. 40 (C)(2), NIRC
RMO 17-2016
Meaning of merger/consolidation/control securities
Sec. 40 (C) (6), NIRC
16
Com. v. Rufino (148 SCRA 42)
Revenue Memo Order 26-92
Rev. Regs. 18-2001
Rev. Memorandum Ruling No. 01-01
Rev. Memorandum Ruling No. 01-02
* Transaction where gain is recognized but not the loss
Exchange not solely in kind

Sec. 40 (C)(3), NIRC
Wash sales/compared with short selling

Sec. 38, NIRC
Sec. 39 (F), NIRC
Transactions between related taxpayers

Sec. 36 (B)
Illegal transactions
Sec. 96, RR 2
* Gains and losses attributed to exercise privilege or options to

buy/sell property
Percentage of gain or loss taken into account (note: for individuals

only)
Sec. 39 (B), NIRC
bb. Income tax treatment of capital loss
Capital loss limitation rule (applicable to both corporations and

individuals)
Sec. 39 (C), NIRC
Net loss Carry-Over Rule (applicable only to individuals)
Sec. 39 (D), NIRC
iv. Income from dealings in capital asset subject to special rules
aa. Dealings in real property situated in the Philippines
Rev. Regs. 07-03

Rev. Regs. 13-99
bb. Dealings in shares of stock of Philippine corporations
17
Definition of “shares”
Sec. 22 (L), NIRC

Sec. 24(C), NIRC
Sec. 27(D)(2), NIRC
Sec. 28(A)(7)(c), NIRC
Sec. 55, RR 2
Rev. Regs. 6-2008
shares listed and traded in the stock exchange

shares not listed and traded in the stock exchange
cc. Other capital assets
v. Sale of Principal Residence
Rev. Regs. No. 13-99

Rev. Regs. No. 14-2000
6. Passive investment income
a. Interest income
Sec. 32(A)(4) NIRC
Sec. 24(B)(1) NIRC
Sec. 22(Y) NIRC
Sec. 22(FF) NIRC
Sec. 28(A)(4), NIRC
Sec. 27(D)(3), NIRC
Sec. 57 RR2
b. Dividend income
i. Dividends, defined
ii. Kinds of dividends
aa. Cash dividend
bb. Stock dividend
cc. Property dividend
dd. Liquidating dividend
Sec. 73, NIRC
Sec. 59, NIRC
Commissioner v. Wander Phils. (160 SCRA 573)
ee. Disguised dividend
Sec. 32 (A)(7), NIRC

Revenue Memo No. 31-90
Secs. 250-253, 58, 71 RR 2
CIR v. Manning (66 SCRA 14)
Republic v. de la Rama (18 SCRA 861)
18
c. Royalty income
Sec. 32(A)(6)
Sec. 42(A)(4)
d. Rental income
Sec. 32 (A)(5) NIRC
Sec. 74, 79, 58 RR 2
Limpan v. CIR (17 SCRA 703)
i. Lease of Personal Property
ii. Lease of real property
iii. Tax Treatment of
aa. Leasehold improvements by lessee
bb. VAT added to rental/paid by the lessee
cc. Advance rental/long term lease
7. Annuities/Proceeds from life insurance/other types of insurance
Sec. 32(A)(8), NIRC
Sec. 48 RR 2
8. Prizes and awards
Sec. 32(A)(9), NIRC
9. Pensions/retirement benefits/separation pay
Sec. 32(A)(10), NIRC
10. Income from any source whatever
a. Forgiveness of indebtedness
Sec. 30, RR 2
b. Recovery of accounts previously written off
Sec. 34(E)(1), NIRC
c. Receipt of tax refunds or credit
Sec. 34(C)(1), NIRC
d. Income from any source whatever
D. Situs/Sources of Income (Mamalateo, pp. 64-74)
1. Meaning of situs of income
2. Classification of income as to source
Sec. 42, NIRC
Sec. 152-165, RR2
a. Gross or taxable income from sources within the Philippines
Sec. 42(A), (B), NIRC
Sec. 28(A)(3)(a)(b), NIRC
Commissioner v. JAL (202 SCRA 450)
19
Commissioner v. BOAC (149 SCRA 395)
NDC v. Commissioner (151 SCRA 472)
Howden v. Collector (13 SCRA 601)
b. Gross or taxable income from sources without the Philippines
Sec. 42 (C) and (D), NIRC
c. Income partly within/partly without the Philippines
Sec. 42 (E), NIRC
3. Source Rules in determining income from within and without
a. Interests – residence of debtor
b. Dividends – residence of corporation paying dividend
c. Services – place of performance of service
d. Rentals and royalties – location of property or interest in such
property
e. Sale of real property – location of real property
f. Sale of personal property
g. Shares of stock of domestic corporation
V. EXCLUSIONS FROM GROSS INCOME AND EXEMPT CORPORATIONS

A. Exclusions From Gross Income (Mamalateo, pp. 149-170)
1. Rationale of the exclusions
2. Taxpayers who may avail of the exclusions
3. Exclusions distinguished from deductions and tax credit
4. Under the Constitution
a. Income derived by the government or its political subdivision from the
exercise of any essential governmental function
Sec. 32 (B)(7), NIRC
Sec. 4 (3) Art. XIV Constitution
Sec. 4 (4) Art. XIV, Constitution
Sec. 28 (3) Art. VI, Constitution
5. Under the Tax Code
a. Proceeds of Life Insurance Policies
Sec. 32(B)(1), NIRC
Sec. 62 RR 2
b. Return of premium paid
Sec. 32(B)(2), NIRC
Sec. 48 RR 2
20
c. Amounts received under life insurance, endowment or annuity
contracts
d. Value of property acquired by gift, bequest, devise or descent
e. Amounts received through accident or health insurance
Sec. 32(B)(4), NIRC
Sec. 63 RR2
f. Income exempt under tax treaty
Sec. 32(B)(5), NIRC
g. Certain passive income of foreign governments from their Philippine
investments
Section 32 (B)(7,a) NIRC as amended by RA 8424
Com. V. Mitsubishi Metal (181 SCRA 214)
h. Interest income from long term deposit or investment
Sec. 22 (FF), NIRC

Sec. 25 (A)(2), NIRC
Note: Exemption applies only to individual taxpayers except non-
resident alien not engaged in trade or business. They are taxed at
25%.
For corporate taxpayers no exemption

i. Retirement benefits, pensions, gratuities, etc.
Sec. 32(B)(6), NIRC
i. Retirement benefits received under R.A. No. 7641, 4917 and Sec.
60(B) of Tax Code
ii. Separation pay for causes beyond control of employee
iii. Retirement benefits from foreign government agencies
iv. Payments under US Veterans Administration
j. Winnings/Prizes
i. Philippine Charity Sweepstakes and lotto winnings
ii. Prizes and awards in sports competition
Sec. 32 (B)(7,d), NIRC
Reference: RA 7549
iii. Prizes and awards / religious / charitable / scientific / artistic /
literary
Sec. 32 (B)(7,c) - Requisites for exclusion
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k. Gain derived from buying and selling shares of stocks classified as
capital asset listed and traded in the local exchange excluded/exempt
from income tax but subject to percentage tax
Sec. 127, NIRC
RR 6-08 dated April 22, 2008
6. Under a Tax Treaty
7. Under special laws
B. Exempt Corporations (Mamalateo, pp. 170-177)
VI. COSTS, DEDUCTIONS AND PERSONAL EXEMPTIONS (Mamalateo, pp. 178-277)

A. Deductions from Gross Income, General Rules
1. Deductions construed strictly against taxpayers claiming it
2. Deductions must be paid or incurred in connection with the taxpayer’s trade,
business or profession
3. Deductions must be supported by adequate receipts or invoices (except for
optional standard deduction)
B. Return of Capital (Cost of Sales/Services)
1. Sale of inventory of goods by manufacturers and dealers of properties
2. Sale of stock in trade by a real estate dealer and dealer in securities
3. Sale of Services
C. Itemized Deductions
1. Business expenses (Sec. 65, RR 2)
a. Requisites for Deductibility
Nature: Ordinary and necessary
CIR v. General Foods (Phils.), Inc. (401 SCRA 545)
Paid and incurred during taxable year
CIR vs. Isabela Cultural Corporation (515 SCRA 556)
b. Salaries, wages and other forms of compensation for personal services
actually rendered, INCLUDING the grossed-up monetary value of the
fringe benefit subjected to FBT which tax should have been paid
Sec. 34(A), NIRC

Secs. 70-73 RR2
Kuenzle & Streiff, Inc. v. CIR (16 Phil 670)
C.M. Hoskins v. Commissioner (30 SCRA 434)
Aguinaldo Industries v. Com. (112 SCRA 136)
c. Traveling/Transportation expenses (Sec. 66 RR2; RR 3-98)
d. Cost of materials (Sec. 67, RR 2)
22
e. Rentals and/or other payments for use or possession of property (Sec.
74, RR 2)
f. Repairs and Maintenance (Sec. 68, RR 2)
Com. V. Soriano Cia (38 SCRA 67)
Gutierrez v. Collector (14 SCRA 33)
g. Expenses under lease agreements (Sec. 74, RR 2)
h. Expenses for professionals (Sec. 69, RR 2)
i. Entertainment expenses (RR 3-98)
RR 10-2002 (Ceilings for entertainment, amusement and
recreational expenses (July 10, 2002)
j. Political campaign expenses
k. Training Expenses
2. Interest
Sec. 34 (B), NIRC
RR 13-00
Secs. 78-79 RR2
a. Requisites for deductibility
Com. v. Prieto (109 Phil 592)
Kuenzle v. Coll (28 SCRA 365)
b. Non-deductible interest expense
c. Interest subject to special rules
Sec. 34(B)(2), NIRC
aa. Interest paid in advance
bb. Interest periodically amortized
Sec. 34(B)(3), NIRC
cc. Interest expense incurred to acquire property for use in
trade/business/profession
3. Taxes
Sec. 34(C), NIRC

RMC 13-80
Sec. 80-83, RR2
b. Non-deductible taxes
c. Treatments of surcharges/interests/fines for delinquency
d. Treatment of special assessment
e. Tax Credit v. Deduction
CIR v. Lednicky, et al. (11 SCRA 603)
23
CIR v. Bicolandia Drug Corp. (496 SCRA 176)
4. Losses
Sec. 34 (D), NIRC

Sec. 93-101 and 104, RR2
RR 12-77
Plaridel Security v. Com (21 SCRA 1187)

Com. v. Priscilla Estate (11 SCRA 130)
Fernandez Hermanos v. Com (29 SCRA 552)

b. Other types of losses
i. Capital losses
ii. Securities becoming worthless
iii. Shrinkage in value of stocks
iv. Losses on wash sales of stocks or securities
v. Wagering losses
vi. NOLCO
5. Bad Debts
Sec. 34(E), N IRC

Secs. 102-103, RR2
RR 25-2002; RR 5-99
a. Definition
b. Requisites for deductibility
Collector v. Goodrich (21 SCRA 1336)
PRC v. CA (256 SCRA 667)
6. Depreciation
Sec. 34(F), NIRC

Sec. 110-115, RR2
a. Definition
c. Methods of computing depreciation allowance
i. Straight-line method
ii. Declining-balance method
iii. Sum-of-the-years-digit method
Basilan v. Com (21 SCRA 17)
24
7. Depletion
Sec. 34(G), NIRC
Sec. 3, RR 5-76
a. Definition
8. Charitable and Other Contributions
Sec. 34(H), NIRC

RMC No. 88-07
EO 720 dated 11 April 2008
a. Definition
Roxas v. CTA (23 SCRA 276)
9. Contributions to Pension Trusts

Sec. 34(J), NIRC
a. Definition
D. Optional standard deduction
1. Sec. 34(L), NIRC
2. RR 16-08 dated Nov. 16, 2008
RR 2-2010 dated Feb. 24, 2010
The following may claim OSD in lieu of itemized deductions
a. Individuals
i. Resident Citizen
ii. Non-resident citizen
iii. Resident Alien
iv. Estates and Trusts
b. Corporations
E. Personal and additional exemptions (R.A. 9504, Minimum Wage Earner Law)
1. Basic personal exemptions
2. Additional exemptions for taxpayer with dependents
3. Status-at-the-end-of-the-year rule
F. Items not deductible
25
1. Personal, living or family expenses
2. Amount paid for new buildings or for permanent improvements (Capital
expenditures)
3. Amount expended in restoring property
4. Premiums paid on life insurance policy covering life or any other officer or
employee financially interested
5. Interest expense, bad debt and losses from sales of property between related
parties
Sec. 36 NIRC
VII. TAX BASE AND TAX RATES (Mamalateo, pp. 278-300)

A. Computation of Tax
Tax payable by a taxpayer is computed as follows:
Applicable Tax Base

Multiplied by: Applicable Tax Rate
Income Tax
Less: Any Tax Credit (either
creditable withholding
tax or foreign taxes
paid)
Tax Payable
B. Tax Base
1. Taxable income
a. Compensation Income, Business and Professional Income, Capital gain not
subject to Final Tax, Passive income not subject to final tax and other
income LESS
b. Deductions
c. Exemptions (in case of individuals)
2. Gross Income
a. Under NIRC - Generally, passive income subject to final tax
b. Under special laws – PEZA, SBMA registered entities
3. HIGHEST between Gross selling price, fair market value per tax declaration
and zonal value per BIR in case of capital asset
Section 6(E), NIRC
4. Gain from sale of Real property
26
5. Net capital gain – in case of sale of shares not listed and traded in the stock
exchange
C. Tax Rates
1. Individuals
a. Graduated income tax rates on taxable income
b. Capital gains – Flat rate
i. on sales of shares of stock of domestic corporation (except dealers in
securities
aa. ½ of 1% Gross selling price – listed shares
bb. 5% for 1st 100,000 and 10% in excess of 100,000 of Net Capital
Gains – shares not listed and exchanged in stock exchange
ii. on sale of real property classified as capital asset by individual – Flat
rate of 6%
c. Passive income subject to final tax at preferential rates
2. Corporations
a. Domestic
i. Regular of normal income tax rate – flat rate (30% starting 2009)
ii. MCIT
Sec. 27, NIRC
RR 9-98
RR 12-07
iii. Domestic corporations entitled to preferential tax rates
aa. Proprietary educational institutions – 10% of taxable income
bb. Foreign Currency deposit unit of local universal or commercial
bank – 10% final tax
cc. Firms taxed under special income tax regimes (e.g., registered
entities under PEZA law (RA 7916) and Bases Conversion and
Dev’t. Act (RA 7227) – 5% final tax on gross income
iv. Resident Foreign Corporations (RFC)
aa. General Rule: 30% of net taxable income from sources within the
Philippines
bb. Exempt entities
1. Regional Area Headquarters
2. Representative Office
cc. RFCs subject to preferential tax rates
1. International Carrier – 2 ½% on Gross Philippine billings
2. Offshore banking units (OBUs) – 10% final tax
27
3. Regional Operating Headquarters – 10% net taxable income
4. Foreign currency deposit unit in Philippines of foreign bank –
10% final tax
5. Branch of foreign corp. registered with PEZA, SBMA, CDA, etc.
– 5% final tax on gross income
6. Qualified Service Contractor and sub-contractor engaged in
petroleum operations in the Philippines
P.D. 87
P.D. 1354
dd. Branch profits remittance tax
v. Non-resident Foreign Corporations (NRFC)
aa. General Rule: 30% of gross income
bb. NRFCs subject to preferential tax rates
VIII. TAXATION OF INDIVIDUALS (Mamalateo, pp. 23-37)
A. Classification of Individual Taxpayers
1. Citizens of the Philippines
a. Resident Citizen (RC)
b. Non-resident (NRC)
Sec. 22(E), NIRC
Sec. 23(C); 24(A.1,b)
2. Aliens
a. Resident Alien (RA)

Sec. 22(F), NIRC
b. Non-resident alien (NRA)

Sec. 22(G), NIRC
i. NRA-engaged in trade or business (NRA-TB)

180-day test
Sec. 25(A.1), NIRC
ii. Non-resident alien not engaged in trade or business (NRA-XTB)
iii. Aliens employed by regional headquarters of multinational/by offshore

banking units/petroleum service contractors
Secs. 25 (C), 22 (DD) and 22 (EE), NIRC
iv. Aliens employed by OBUs
28
Sec. 25 (D), NIRC
v. Aliens employed by petroleum contractors/subcontractors

Sec. 25(E), NIRC
B. Taxation of Income of Resident Citizens:
1. General Rule:
a. Residents who are Citizens – Taxable on income from ALL sources (within
and without the Philippines)
b. Resident Aliens - taxable on income from sources WITHIN the Philippines
2. General: Taxation of Compensation Income

a. Inclusions
i. Monetary compensation
Regular salary/wage
Separation pay/retirement benefit not otherwise exempt under

Sec. 32(B), NIRC
RR 1-68 as amended by RR 1-83 and RR 10-83

Bonuses, 13th Month Pay and other benefits unless exempt under
Sec. 32(B), NIRC
Director’s Fees
RMC 34-08
ii. Non-monetary compensation income
Fringe benefits not subject to fringe benefits tax (FBT)

Sec. 33, NIRC
RR 2-98
RR 3-98
b. Exclusions
i. Fringe benefits already subject to FBT
RR 3-98, as amended by RR 8-00; RR 10-00; RR 5-08
ii. De Minimis Benefits
RR 3-98, as amended by
RR 10-00 dated Dec. 14, 2000
RR 010-08 dated July 8, 2008
RR 001-15 dated Jan 5. 2015
iii. 13th month pay and other benefits and payments specifically excluded
from taxable compensation income
29
Sec. 32(B)(7,e), NIRC; amended by RA 10653
c. Deductions
Sec. 35, NIRC
i. Personal Exemptions and Additional Exemptions
Sec. 35, NIRC
RA No. 9504
RR 10-2008
Pansacola vs. CIR (507 SCRA 81)

ii. Health and hospitalization insurance
Sec. 34(M), NIRC
3. Taxation of Compensation Income of a Minimum Wage Earner
Republic Act No. 9504
Definition of Statutory Minimum Wage
Definition of Minimum Wage Earner
Income also subject to tax exemption: holiday pay,
overtime pay, night shift differential, and hazard
4. Taxation of Business Income/Income from the Practice of Profession
Formula: (pure business/professional income)
Gross Business Income &/or Income from Practice of xxx

Profession
Less: (a) Allowable Deduction (itemized or optional (xxx)
deduction)
(b) Personal & Additional Exemptions and (xxx)
hospitalization/health insurance premium
Total Taxable Income xxx
Multiplied by: Tax Rate xxx
Income Tax xxx
Less: Creditable Withholding Tax on Compensation (xxx)
Income / Other Allowable Tax Credit
Tax Payable xxx
a. Gross Income – includes all income from business or practice of profession

during the taxable year (whether accrued or actually received, depending
on the accounting method used)
Refer to Part IV of Outline
b. Allowable deductions from Gross Income
Refer to Part VI (C) – (E) of Outline
5. Income from dealings in properties other than capital assets (e.g. sale of
office equipment)
30
- Included as part of business income or income from the practice of
profession
6. Taxation of Passive Income
a. Passive income subject to final tax (withheld at source and remitted to
the BIR by the payor of the income: no longer to be reported in the ITR)
i. Interest income
Sec. 24(B), NIRC
Interest from ANY CURRENCY bank deposit/any other monetary

benefit from deposit substitutes/trust funds / similar
arrangements
Interest income received by a resident individual taxpayer from a

depository bank under the FCDU System
RR 10-98
Interest income from long-term (5-yr) deposit / investment

evidenced by certificates prescribed by BSP
ii. Royalties
Sec. 24 (B), NIRC
RMC 44-05
RMC 77-2003
iii. Dividends from domestic corp.
Sec. 24(B), NIRC
iv. Prizes (except prizes amounting to ten thousands pesos (P10,000.00)
or less which shall be subject to tax under Sec. 24(A) of the Code)
Sec. 24(B), NIRC
v. Other winnings (except PCSO / lotto winnings) derived from sources
within R.P.
Sec. 24(B), NIRC
b. Passive Income NOT Subject to Final Tax (to be reported in the
taxpayer’s ITR)
Sec. 24(A)(1), NIRC
7. Taxation of Capital Gains
a. Income from sale of shares of stock of a Philippine corporation
i. Shares traded and listed in the stock exchange
Sec. 24(C); Sec. 127, NIRC
RMC 73-07
ii. Shares not listed and traded in the stock exchange
Sec. 24(C), NIRC
31
b. Income from the sale of real property situated in the Philippines
i. General rule
Sec. 24(D.1), NIRC
RR 8-98
ii. Exception
Sec. 24 (D,2), NIRC
RR 13-99, as amended by RR 14-00
RMC 45-02
c. Income from the sale / exchange / other disposition of other capital
assets
i. Special rules to be applied
Sec. 39 (B) – (D), NIRC
Loss limitation rule

Loss carry-over rule
Holding period rule
ii. Taxation of capital gain
Sec. 24(A), NIRC
C. Taxation of Non-resident Citizens
Secs. 23(B) and 24(A), NIRC
1. General Rule:
Income from sources within the Philippines are taxed exactly as income of
resident citizens, except as indicated below.
2. Exceptions:
a. Taxation of interest income from depository banks under the expanded

foreign currency deposit system
RR 10-98
b. Income from sources outside of the Philippines – not subject to Phil. income
tax
D. Taxation of Non-resident Aliens Engaged in Trade or Business in the Philippines
Sec. 25(A), NIRC
1. General Rule:
They are taxed exactly as resident citizens but only on their income from
sources within the Philippines., except as indicated below. Their income from
foreign sources are exempt from Philippine income tax.
2. Exceptions:
32
a. Limitation on deductible tax credit
Sec. 34(C)(2), NIRC
b. Interest income from foreign currency-denominated deposits with FCDUs –

EXEMPT from tax
Sec. 24(B), NIRC
RR 10-98
c. Amount of deductible personal exemption

Sec. 35(D)
E. Taxation of Non-resident Aliens NOT Engaged in Trade or Business in the

Philippines
1. General Rule: Gross income (i.e. WITHOUT deductions) from Philippine sources
shall be taxes at the fixed FLAT rate of 25%.
Sec. 25(B), NIRC
2. Exceptions:
a. Capital gain from sale of shares of stock – exactly the same as resident
citizens
b. Capital gain from sale of real property situated in the Philippines exactly
the same as resident citizens
c. Interest income from foreign currency-denominated deposits with FCDUs –

EXEMPT from tax
Sec. 24(B), NIRC
RR 10-98
F. Individual Taxpayers Exempt from Income Tax
1. Senior citizens
RA No. 7432 as amended by RA 9994
RR 07-2010 as amended by RR 11-15 and RR 8-2010
Carlos Superdrug v. DSWS (526 SCRA 130)
2. Exemptions granted under international agreements

Reagan v. Com. (30 SCRA 968)
Com. v. Robertson (143 SCRA 397)
Tax treaty provision
G. Individuals Subject to Special Rates
1. Aliens employed by regional headquarters of multinational / by offshore

banking units / petroleum service contractors
33
Secs. 25(C), 22(DD) and 22(EE), NIRC
2. Aliens employed by OBUs

Sec. 25(D), NIRC
3. Aliens employed by petroleum contractors / subcontractors

Sec. 25(E), NIRC
IX. TAXATION OF CORPORATIONS (Mamalateo, pp. 37-59)

A. Classification of Corporate Taxpayers (Recall: Part III(B))
1. Domestic corporation, defined
a. Partnership taxable as corporation
Test whether an entity is a taxable partnership
Ona v. Commissioner (45 SCRA 74)
b. Joint Venture (JV) and Consortium
i. Exempt JV/consortium
ii. Taxable JV/consortium
2. Foreign Corporations
a. Resident foreign corporation (RFC)
b. Non-resident foreign corporation (NRFC)
Marubeni v. Com. (177 SCRA 500)
c. Subsidiary v. branch of a foreign corporation
3. Tax-exempt corporations
Sec. 30; 27(C), NIRC

RMC 76-2003
Review: Exemption under the Constitution
Hospital de San Juan de Dios v. Pasay City (16 SCRA 226)
B. Taxation of Domestic Corporation
1. Taxation of Business Income
a. Computation of Allowable Deductions
i. Itemized Deduction (Refer to VII (C))
ii. Optional Standard Deduction (Refer to VII(D))
b. Computation of Tax Payable
i. Regular Tax: Section 27, NIRC
ii. MCIT (Mamalateo, pp. 445-463)
34
Section 27(E), NIRC
RR 9-98
RR 12-07
RMC 30-08
2. Taxation of Passive Income
a. Passive Income Subject to Final Tax
b. Passive Income NOT Subject to Final Tax
3. Taxation of Capital Gains
a. Income from sale of shares of stock
RR-6-08
b. Income from the sale of real property situated in the Philippines
c. Income from the sale / exchange / other disposition of other capital
assets
4. Other Taxes Imposed on Corporations: Improperly Accumulated Earnings Tax

(IAET) (Mamalateo, pp. 463-470)
RR 2-2001
Cyanamid Phils., Inc. v. CA (322 SCRA 639)
C. Taxation of Resident Foreign Corporations with respect to their income from

sources WITHIN the Philippines
1. Definition
Section 22(H), NIRC
Includes:
Offshore Banking Units (“OBUs”)
Regional Operating Headquarters (“ROHQs”)
2. Taxation of RFCs:
Section 28(A), NIRC
3. Taxation of Branch Profits Remittance Tax
a. Entities exempt from BRFT: PEZA, SBMA-registered enterprises
b. Not deemed remittance of branch profit: remittable profits transferred to a
Philippine corporation; remittance of assigned capital
c. Deemed Branch Profit Remittance: see Revenue Memorandum Ruling 1-2001
(IV)
Marubeni vs. CIR 177 SCRA 500
D. Taxation of Non-resident Foreign Corporations with respect to their income from
sources WITHOUT the Philippines
1. Definition: Section 22(1), NIRC
2. Taxation of NRFCs:
35
Section 28(B), NIRC
CIR vs. Procter and Gamble (204 SCRA 377; 160 SCRA 560)
X. RETURNS AND PAYMENT OF TAX (Mamalateo, pp. 354 – 379)
A. Individual return (Sec. 51, Sec. 56, NIRC)
1. Who are required to file

2. Those not required to file
3. Where to file
4. When to file
5. Where to pay
6. Capital gains on shares of stocks and real estate
7. Quarterly declaration of income tax (Sec. 74, NIRC)
B. Corporate regular returns (Sec. 52, Sec. 53, Sec. 56, NIRC)
1. Quarterly income tax (Sec. 75, NIRC)
2. Final adjustment return (Sec. 76, NIRC)
3. When to file
4. Where to file
5. When to pay
6. Capital gains on shares of stock
7. Return of corporations contemplating dissolution / reorganization

a. Sec. 244, NIRC, RR 2
b. BPI v. Commissioner of Internal Revenue (CA GR SP 38304, April 14,
2000)
XI. WITHHOLDING TAX (Mamalateo, pp. 380-440)
A. Final withholding tax at source (Sec. 57, NIRC)
ING Bank v. CIR (G.R. No. 167679, July 22, 2015)
B. Creditable Withholding Tax
1. Expanded withholding tax
2. Withholding tax on compensation
C. Fringe benefits tax (RR 3-98)
36
Course Outline
Administrative and Election Law
January 2018
Atty. Victoria V. Loanzon
Course Objectives: At the end of the course, the students will be able:
1. To have an appreciation of the basic constitutional premise which governs
administrative agencies which include the Civil Service Commission, the Commission
on Elections and the Commission on Audit.
2. To understand the organization and operations of administrative agencies.
3. To understand the concept of due process and its application in administrative
proceedings.
4. To know the judicial reliefs available parties in administrative proceedings.
5. To help students appreciate the burden imposed on public servants and to inspire
them to seek government positions to make a difference in public governance.
REMINDERS to Students:
1. Students are required to do regularly prepare for recitations.
2. Include CASES in brackets for your readings.
3. SILENCE is required during class meetings to give RESPECT to the Professor and
the members of the class who are reciting.
4. QUESTIONS may be entertained only during the last 15 minutes of the class hour.
5. Everyone is expected to come to class ON TIME.
6. Come to class PROPERLY ATTIRED.
7. Expect written QUIZZES/WRITTEN WORK ASSIGNMENTS to cover any possible
suspension of classes or any circumstance that will result to loss of class hours.
COMPUTATION OF GRADES:
25% Class Standing: Recitations, Attendance, and Written Work Assignments
35% Midterm Examinations Grade
40% Final Examinations Grade
REQUEST FOR CHANGE OF GRADE

All requests for change of grade must be in WRITING and will require FULL
REVIEW of all quizzes/written works, midterm examinations and final examinations.
ALL ANSWERS will be reevaluated. Class attendance and graded recitations will
likewise be reviewed.
COURSE OUTLINE
Part I: Administrative Law Proper
A. Administrative Law and the Constitution

1. Administrative Law, Defined and Scope
Administrative Law is a part of Political Law: In the broadest sense, it refers to the entire
organization and operation of government.
1 | P a g e

In a less comprehensive sense, it refers to that part of “public law wherein it fixes the
organization and determines the competence of the administrative agency and indicates to the
individual remedies for violation of his rights” (Goodnow, Comparative Administrative Law
8-9 (1983) as cited in CORTES, Philippine Administrative Law p.3 (1984)
In a technical sense, administrative law covers a more limited field. It is the law governing
regulatory agencies but it is concerned not only with rule-making, the settlement of contested
matters and the distribution of benefits but also indicates the remedies available to those
aggrieved by the administrative action. Pound refers to it as “that branch of modern law
under which the executive department of government acting in a quasi-legislative or quasi-
judicial capacity, interferes with the conduct of the individual for the purpose of promoting
the well-being of the community, as under laws regulating public corporations, business
affected with a public interest, professions, trades and callings, rates and prices, laws for the
protection of the public health and safety and the promotion of the public convenience and
advantage.”
SOURCE: CORTES, PHILIPPINE ADMINISTRATIVE LAW pp. 2-4 (1984)
2. Relationship of Administrative Law with the Constitution
Goodnow points out the relation of administrative law to constitutional law in this manner:
“Insofar as it fixes the organization of the administrative authorities, administrative law
is the necessary supplement of constitutional law. While constitutional law gives the
general plan of governmental organization, administrative law carries out this plan in its
minutest details. But administrative law, not only supplements constitutional law insofar
as it regulates the administrative organization of the government; it also complements
constitutional law, insofar as it determines the rule relative to the activity of the
administrative authorities. For while constitutional law treats of the rights of individual,
administrative law treats them from the standpoint of the powers of the government.
Constitutional law, it has been said, lays stress upon rights, administrative law
emphasizes the powers of government and duties of the citizens it, is nevertheless to the
administrative law that the individual must have recourse when his rights are violated.
For just so far as administrative law delimits the sphere of action of the administration, it
indicates what are the rights of the individual which the administration must respect; and,
in order to prevent the administration from violating them, offer to the individual
remedies for the violation of these rights”. (Emphasis supplied)
SOURCE: GOODNOW, COMPARATIVE ADMINISTRATIVE LAW, 8-9 (1893), as
cited in CORTES, PHILIPPINE ADMINISTRATIVE LAW p.4 (1984)
Constitutional Considerations
Separation of Powers
Section 1, Article II – Declaration of Principle and State Policies: “The Philippines is a
democratic and republican state. Sovereignty resides in the people and all governmental
authority emanates from them.”
Belgica et al v. Executive Secretary et al., G.R. No. 208566, November 19, 2013
Neri v. Senate Committees, G.R. No. 180643, March25, 2007/Sept. 4, 2008
Basic tenets of a republican state

The powers of government are distributed into three distinct branches: the executive, the
legislative and the judicial.
2 | P a g e

Unless the Constitution permits it, no branch of government can abdicate its functions and
escape responsibility by delegating them.
Exception to the rule on delegation of powers: Within the limits of the law creating the
Executive Department, defining and limiting its powers, the executive may allocate specific
functions to agencies under its control and supervision for efficient management and better
governance.
Lambino et al. v. COMELEC, G.R. No. 174153, 505 SCRA 160 (2006); read pp. 219-223, 228-
261 only
Rule:
When the law vests in an administrative body the power to hear and decide controversies, the
delegation is not done by the judiciary but the power to adjudicate granted by law proceeds
from the plenary powers of legislative branch.
Other constitutional limitations
Bill of Rights: the right to due process. Section 1, Article III, Philippine Constitution: “No
person shall be deprived of life, liberty, or property without due process of law, no shall any
person be denied the equal protection of the law.”
5. Concept of Rule of Law
Rule: No person or groups of persons no matter how high or powerful is above the law.
Drilon v. Ermita, G.R. No.169777, April 20, 2006
Bayan et al v. Ermita, G.R. No. 169838, April 25, 2006
Ladlad v. Velasco, G.R. No. 1720-72, June 1, 2007
C. CREATION OF ADMINISTRATIVE AGENCIES

1. Constitutional Provision:
Article IX, 1987 Constitution, Constitutional Commissions: (1) The Civil Service
Commission; (2) The Commission on Elections; and (3) The Commission on Audit; (4)
Article XI, 1987 Constitution, Section 5. Ombudsman; and (5) Article XIII, 1987
Constitution, Section 17. Commission on Human Rights
2. Legislation: some government agencies created by law through special charters
3. Other Modes
~May be created by local governments thru ordinance/local legislation
~Regulation in international field: The Council of International Civil Aviation Organization,
Administrative Tribunal of the International Labor Organization, CIAB and the WTO.
~May be created by executive action
4. Types of Administrative Agencies (Refer to the Revised Administrative Code for
details)
- government instrumentality
- regulatory agency
- chartered institution
- government-owned or controlled corporation
C. CHECKS ON ADMINISTRATIVE AGENCIES

1. Sources of Checks
3 | P a g e

THE PRESIDENT (Article VII, 1987 Constitution)
~position of the Chief Executive (Section 1)
~duty to preserve and defend the Constitution (Section 5)
~appointing power (Section 16)
~control over executive departments, bureaus and offices (Section 17)
~sovereign guarantees on foreign loans ( Section 20)
~submission of budget outlining programs and defining policies ( Section 22)
THE LEGISLATURE (Article VI, 1987 Constitution)
~creation of government agencies pertains to the plenary powers (Section 1)
~consent over presidential appointees ( Section 18)
~examination of books of accounts by COA (Section 20)
~power to conduct inquiries (Section 21 and 22)
~declaration of war (Section 23)
~enact budget (Section 24, 25 and 29)
THE COURTS: POWER OF JUDICIAL REVIEW (Article VIII, 1987 Constitution)
~availability of judicial review
~modes of judicial review Refer to Sec. 1, Sec 4(2), Sec. 5
~extent of judicial review
2. GRIEVANCE MECHANISM (Article XI, 1987 Constitution)

~Accountability of Public Officers
• Impeachment (Section 2)
• Procedure (Section 3)
~Powers of the Sandiganbayan (Section 4)
~Powers of the Ombudsman (Section 5,6,7,8,9,10,11,12,13)
~Civil Service Commission (Article IX, A. Common Provisions, B. The Civil Service
Commission) Sections 2 (1), (2), (3), (4), (5) and (6).
3. ROLE OF THE PUBLIC

~resolution of conflicting interests
~essence of public welfare/public interest
4. ROLE OF THE MEDIA

~print and broadcast media as potent sources of checks
~contribute to increased public awareness on issues
D. POWERS AND FUNCTIONS OF ADMINISTRATIVE AGENCIES

1. General Executive and Administrative Functions (Determinative in Nature)
Issuance of licenses, permits, leases, etc.: Acebedo Optical v. C.A et. al., G.R. No. 100152,
March 31, 2000
Fact-finding Investigation: Lovina v. Moreno, G.R. No. L-17821, November 29, 1963
Permissible delegation; delegation; when allowed: Abakada v. Sec. Purisima, 562 SCRA,
251: Delegation of power in the implementation of the accretion law for BOC and BIR
employees
People v. Maceren, 169 Phil., 447-448 (1977): Delegation of power; definition and
scope of the law and penalties to be imposed
2. Rule-making power (Legislative in Nature)
4 | P a g e

Principles to determine valid exercise of power: Completeness Test and Sufficient
Standard Test
Edu vs. Ericta, 35 SCRA 481 (1970)
MERALCO v. ERB, G.R. No. 145399, March 17, 2006
Requisites: Sections 1-9, Book VII, Administrative Code of 1987, Administrative Procedure
Limitations of rule-making power: Philippine Lawyers Association v. Agrava, 105 Phil.
173 (1959)
Requisites for valid delegation of the power from the legislative branch to the executive
branch:
~it must have been promulgated in accordance with prescribed procedure;
~it must have reasonable standards;
~the power is issued under authority of law;
~administrative regulations (IRR) must be published in order to be effective; and
~ it must be within the scope and purview of the law.
Publication and Effectivity of Rules: If a question on validity of rules is raised before
the courts, it must be resolved with dispatch as it could result to irreparable injury to
affected individuals.
General Rule: Publication is mandatory before any administrative issuance
particularly rules and regulations especially so when they impose some form of burden
on the public. Book VII, Sections 3-8, Administrative Code of 1987
People v. Que Po Lay, 94 Phil. 640 (1954)
Tañada v. Tuvera, 146 SCRA 446
Rationale behind the Rule: Due process in the exercise of an administrative agency’s
quasi-legislative power requires publication of the promulgated rules and regulations.
Classes of Rules and Regulations in Exercise of Legislative Function
1. Internal, affecting only the internal operations/procedures of an agency
2. Personnel Regulations, refer only to personnel action of an agency relative to office
orders on transfer, reassignment, designation, etc.
3. Interpretative Rules, Clarificatory Rules (ex. DOJ opinions, BIR Circulars)
4. Fixing of Rates, Prices, and Toll Charges: This power is vested by law in
administrative agencies and carries with it an implied standard is part of the law.
Refer to: Administrative Code of 1987 Sec. 9, Book VII; Sections 17 – 18, Book VII,
Administrative Code of 1987
3. Adjudicatory power (Judicial in Nature)

Administrative Procedure
Due Process: twin requirements of notice and hearing
Due Process in Administrative Investigation
Procedural and Substantial due process distinguished: Cudia v. PMA Superintendent,
G.R. No. 211362, February 24, 2015
Nature of Administrative Proceedings: SSS v. Gloria de los Santos, G.R. No. 164790,
August 29, 2008
Hearing; Procedural requirements: Re: Letter of U.P. Law Faculty, A.M. No.10-10-4-SC,
2011: administrative proceedings do not require trial type hearing
Investigation and Adjudication: part of quasi-judicial power of administrative agencies

~Sections 10-15, Book VII, Administrative Code of 1987
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IA1 ERWIN L. MAGCAMIT v. INTERNAL AFFAIRS SERVICE - PHILIPPINE DRUG
ENFORCEMENT AGENCY, as represented by SI V ROMEO M. ENRIQUEZ AND
DIRECTOR GENERAL DIONISIO R. SANTIAGO, January 25, 2016, G.R. No. 198140
JENNIFER A. AGUSTIN-SE AND ROHERMIA J. JAMSANI-RODRIGUEZ v. OFFICE OF
THE PRESIDENT, REPRESENTED BY EXECUTIVE SECRETARY PAQUITO N. OCHOA,
JR., ORLANDO C. CASIMIRO, OVERALL DEPUTY OMBUDSMAN, OFFICE OF THE
OMBUDSMAN, AND JOHN I.C. TURALBA, ACTING DEPUTY SPECIAL PROSECUTOR,
OFFICE OF THE SPECIAL PROSECUTOR, G.R. No. 207355, February 03, 2016:
observation of the rule of law in administrative proceedings; the right to security of tenure of
public officers
Jardeleza v. Chief Justice Sereno and the JBC, G.R. No. 213181, August 19, 2014: due
process in the application for a judicial position
Pontejos v. Desierto, G.R. No. 148600, 2011: action before the Ombudsman is independentof
the internal investigation before the HLURB
Power to issue subpoena, declare in contempt: allowed only when provided by the law
creating the administrative agency.
~General Statutory Provision. Sec. 13, Book II, Administrative Code of 1987.
~Special Statutory Grant: Contempt power is inherently judicial.
Mayor Brigido Simon v. Commission on Human Rights, G.R. No.,100150, January 5, 1994
Issuance of Warrants, Administrative Searches and Seizures: must conform to
constitutional standards.
~Section 13, Book VII, Administrative Code of 1987
~Art. III, Sec. 2, 1987 Constitution
Harvey et al. v. Defensor-Santiago, 162 SCRA 840 (1988)
Kiani v. BID, G.R. No. 160922, February 27, 2006
Administrative Appeal
~ Refer to: Sections 19-24, Book VII, Administrative Code of 1987
Boracay Foundation v. The Province of Aklan, G.R. No. 196870, 2012: the power of the
Mayor to order demolition as part of his quas-judicial function
Principle of Exhaustion of Administrative Remedies
Rationale behind the principle: Allow administrative agencies to exercise primary
jurisdiction.
SPOUSES RAMON and LIGAYA GONZALES v. MARMAINE REALTY CORPORATION,
represented by MARIANO MANALO, January 13, 2016, G.R. No. 214241
BASIANA MINING EXPLORATION CORPORATION, BASIANA MINERALS
DEVELOPMENT CORPORATION AND RODNEY O. BASIANA, IN HIS OWN PERSONAL
CAPACITY AS PRESIDENT AND DULY AUTHORIZED REPRESENTATIVE OF BASIANA
MINING EXPLORATION CORPORATION AND BASIANA MINING DEVELOPMENT
CORPORATION v. HONORABLE SECRETARY OF THE DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES, AND SR METALS INC. (SRMI),
G.R. No. 191705, March 07, 2016: principle of primary jurisdiction; jurisdiction of the
HLURB
B.F. Homes et al. v. MERALCO, G.R. No. 171624, 2010: resort to the court is premature
until the Energy Regulatory Commission resolves the rate petition.
Exceptions when resort to exhaustion of administrative remedies is not necessary
a. The question involved is purely legal;
b. The administrative body is in estoppel;
c. The act complained is patently illegal;
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d.There is an urgent need for judicial intervention;
e.The claim involved is small;
f.Grave and irreparable injury will be suffered;
g.There is no other plain, speedy and adequate remedy,
h.Strong public interest is involved;
i.The subject of the controversy is private law;
j.The case involves a quo warranto proceeding (Sunville Timber
Products, Inc. v. Abad, 206 SCRA 428 [1992]);
k. The party was denied due process (Samahang Magbubukid ng
Kapdula, Inc. v. Court of Appeals, 305 SCRA 147 [1999]);
l. The decision is that of a Department of Secretary. (Nazareno v. Court
of Appeals, G.R. No. 131641, February 23, 2000)
m. Resort to administrative remedies would be futile (University of the
Philippines Board of Regents v. Rasul, 200 SCRA 685 [1991]);
n. There is unreasonable delay (Republic v. Sandiganbayan, 301 SCRA
237 [1999]);
o. The action involves recovery of physical possession of public land
(Gabrito v. Court of Appeals, 167 SCRA 771 [1998]);
p. The party is poor (Sabello v. Department of Education, Culture and
Sports, 180 SCRA 623 [1989]); and
q. The law provides for immediate resort to the court (Rullan v. Valdez,
12 SCRA 501 [1964]).
Valmonte v. Belmonte, Jr., G.R. No. 74930, February 13, 1989: issue
involves public interest which necessitates the court to take jurisdiction
Sabello v. Department of Education, Culture & Sports, 180 SCRA 623
(1989): claim of money
4. Finality of Administrative Decisions
a. Factors to consider: Nature of claim asserted whether guaranteed by the Constitution or
conferred by statute
b. Right or privilege involved
c. Subject matter of the controversy
c. Issue raised is a question of law, of fact or administrative discretion
Form and Promulgation of Judgment: must be in writing, based on evidence and law.
Enforcement of Administrative Decisions
E. JUDICIAL REVIEW
1. Refer to Sections 25 and 26, Administrative Code of 1987
Rules: Before resort to courts and allowed, administration action have to be completed so
that nothing is left to be done in the administrative structure.
~The case is vulnerable to dismissed if party fails to avail of administrative remedies when so
required by law.
~Failure to resort to preliminary resort my result to suspension of judicial proceedings.
2. Doctrine of Primary Jurisdiction
Where both the court and administrative agency have jurisdiction, the court will yield to the
administrative agency
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Rationale behind the doctrine: It is designed to define a situation when the court should refer
the matter to the agency for an initial determination as it: may involve issues of fact beyond
the conventional experience and expertise of judges; and may require the exercise of
administrative discretion.
Conditions for ripeness for judicial review of administrative actions
(1) the administrative action has already been fully completed and therefore, it is a final
agency action;
(2) all administrative remedies have been exhausted.
3. Modes of Judicial Review
Note: Relate the modes for relief with the exceptions in the application of the doctrine of
exhaustion of administrative remedies.
Extent of Judicial Review: Question of Fact, Question of Law and Question of Discretion
SECRETARY LEILA DE LIMA, ASSISTANT STATE PROSECUTOR STEWART ALLAN A.
MARIANO, ASSISTANT STATE PROSECUTOR VIMAR M. BARCELLANO and ASSISTANT
STATE PROSECUTOR GERARD E. GAERLA v. MARIO JOEL T. REYES, January 11, 2016,
G.R. No. 209330: nature of the investigative powers of DOJ; review of resolution of DOJ
Secretary
4. Availment of Provisional Remedies:
~Rule 58, Rules of Court - Preliminary Injunction
~Rule 64, Rules of Court – Declaratory Relief
Sec. of DENR et al v. Mayor Yap v et al, G.R. Nos. 167707, 173775, Oct. 8, 2008:
relationship between the national government and the local government unit; power of the
President to reserve land under the regalian doctrine.
~Rule 65, Rules of Court – Certiorari, Prohibition and Mandamus
~Resort to Mandamus, and Prohibition when premature; wrong remedy illustrated:
Prohibition: Simon, Jr. v. Commission on Human Rights, supra
Mandamus: Ng Gioc Liu v. Secretary of DFA, 85 Phil. 842: discretionary power of the DFA
in the issuance of passports
Antolin v. Domondon, G.R. No. 165036, July 5, 2010: discretionary powers of the Board of
Accountancy of the Professional Regulation Commission
MMDA v. Concerned Residents of Manila Bay G.R. Nos171947-48, Dec. 18, 2008
Writ of Amparo/ Writ of Habeas Data/Writ of Kalikasan:
Caram v. Segui, 732, SCRA 86(2014)
Vivires and Suzara v. STC-Cebu City, G.R. No. 202666, September 29, 2014
Paje v. Casino, G.R. No. 206527, February 3, 2015
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Part II: Election Law
I. INTRODUCTION
The Right to Suffrage
A. Constitutional Basis: Art. II, 1987 Constitution
Article II – Declaration of Principles and State Policies, 1987 Constitution: “Sec. 1 –The
Philippines is a democratic and republican state. Sovereignty resides in the people and all
government authority emanates from them.”
B. Qualified Voters: Art. V. 1987 Constitution
“Sec. 1 - Suffrage may be exercised by all citizens of the Philippines not otherwise
disqualified by law, who are at least eighteen years of age, who shall have resided in the
Philippines for at least one year and in the place wherein they propose to vote for at least six
(6) months immediately preceding the election. No literacy, property, or other substantive
requirement shall be imposed on the exercise of suffrage. (emphasis supplied)”
Cases:
1. Bagumbayan-VNP Movement Inc. Gordon v. COMELEC, G.R. No. 222731, 16 March
2016: Read the relevant portion of the main decision on why a receipt must be issued to a
voter upon casting his vote.
2. Kabataan Party List v. COMELEC, Dec. 16, 2015: Read the relevant portion of the
decision on the necessity of utilizing biometrics in the exercise of the right of suffrage.
C. Overseas absentee voter:

Absentee voting: process by which qualified citizens of the Philippines abroad exercise their
right to vote. [Sec. 3a, R.A. 9189, The Overseas Absentee Voting Act]
Voter Overseas Absentee: citizen of the Philippines who is qualified to register and vote
under this Act, not otherwise disqualified by law, who is abroad on the day of elections. [Sec.
3f, R.A. 9189]
Coverage of the right of suffrage of overseas absentee voters: Elections for president,
vice-president, senators and party-list representatives [Sec. 3f, R.A. 9189]
Registration as an overseas absentee voter shall be done in person in the Philippine
Consulate of Embassy nearest to the place of residence of the voter. [Sec.5, R.A. 9189]
D. Disqualified Voters: Sec. 118, Omnibus Election Code

The following shall be disqualified from voting:
• Any person who has been sentenced by final judgment to suffer imprisonment for
not less than one year, such disability not having been removed by plenary pardon
or granted amnesty: Provided, however, that any person disqualified to vote under
this paragraph shall automatically reacquire the right to vote upon expiration of
five (5) years after service of sentence.
• Any person who has been adjudged by final judgment by competent court or
tribunal of having committed any crime involving disloyalty to the duly
constituted government such as rebellion, sedition, violation of the anti-subversion
and firearms laws, or any crime against national security, unless restored to his
full civil and political rights in accordance with law: Provided, that he shall regain
his right to vote automatically upon expiration of five (5) years after service of
sentence.
• Insane or incompetent persons as declared by competent authority.
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II. The Commission on Elections (“COMELEC”)
A. Art. IX, 1987 Constitution
B. Composition Sec. I (1) – Art. IX - B, 1987 Constitution

“Sec. 1 (1) – There shall be a Commission on Elections composed of a Chairman and six
Commissioners who shall be natural-born citizens of the Philippines and, at the time of their
appointment, at least thirty-five (35) years of age, holder of a college degree, and must not
have been candidates for any elective position in the immediately preceding elections.
However, a majority thereof, including the Chairman, shall be members of the Philippine Bar
who have been engaged in the practice of law for at least ten years.”
B. Term of Office Sec. I (2), Art. IX -, 1987 Constitution
“The Chairman and the Commissioners shall be appointed by the President with the consent
of the Commission on Appointments for a term of seven years without reappointment. x x x
Appointment to any vacancy shall be only for the unexpired term of the predecessor. In no
case shall any Member be appointed or designated in a temporary or acting capacity.”
III. ELECTION LAWS
A. Pertinent Laws
• Omnibus Election Code (BP Blg. 881)
• R.A. 6646 -The Electoral Reform Act of 1984
• R.A. No. 7166 - The Synchronized National and Local Elections Law of 1991
• R.A. 8046 - Authorizing the Commission on Elections to Conduct a
Nationwide Demonstration of a Computerized Election System and Pilot-Test
it in the March 1996 Elections in the Autonomous Region.
• R.A. 8189 - Voter’s Registration Act of 1996
• R.A. 8295 – Lone Candidate Law
• R.A. 9006 – Fair Election of 2001
• R.A. 9164 - Barangay and Sangguniang Kabataan Elections, amending
Republic Act No. 7160
• R.A. 9189 – The Absentee Voting Law
• R.A. 9369 – Commission on Elections to use an automated election system in
the May 11, 1998 national or local elections and in subsequent national and
local electoral exercises.
• Excerpts from R.A. 7160 – Local Government Code
B. Interpretation of Election Laws – Liberally construed in favor of right of suffrage

C. Purpose of Election Laws – To ascertain the will of the people
Cases: 1. Villavert v. Fornier G.R. No. L-3050 Oct. 17, 1949
2. Brillantes v. de Venecia et al G.R. No. L-163193 June 15, 2004
IV. REGISTRATION OF VOTERS
A. Definition: An act of accomplishing and filing of a sworn application for registration by a

qualified voter before the election officer of the city or municipality wherein he resides and
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including the same in the book of registered voters upon approval by the Election
Registration Board. [Sec. 3a, R.A. 8189]
Registration does not confer the right to vote but it is a condition precedent to the exercise of
the right [Yra v. Abano (1928)]
Change of residence or address may be done during the period of registration.
Period: COMELEC allows a continuing system of registration except during the following
periods:
(1) 120 days before a regular election
(2) 90 days before a special election [Sec. 8, R.A. 8189]
Circumstances that would allow alteration of the List of /voters:
(1) Deactivation/Reactivation
(2) Exclusion/Inclusion Proceedings
(3) Cancellation of Registration in case of death
(4) Inclusion of New voters
(5) Annulment of Book of Voters
(6) Transfer of Residence of a registered voter.
The trial court has no power to order the change or transfer of registration from one place of
residence to another for it is the function of the election Registration Board as provided under
Section 12 of R.A. No. 8189. [Domino v. COMELEC, 1999]
Annulment of Book of Voters
The COMELEC shall, upon verified petition of any voter or election officer or duly
registered political party, and after notice and hearing, annul any book of voters:
(1) If it is not prepared in accordance with R.A. 8189 or the Voters’ Registration Act of
1996;
(2) If it is prepared through fraud, bribery, forgery, impersonation, intimidation, force, or any
similar irregularity; or
(3) If it contains data that are statistically improbable.
No order, ruling or decision annulling a book of voters shall be executed within 90 days
before an election. [Sec. 39, R.A. 8189]
National Registry of Overseas Absentee Voters
Definition: The consolidated list prepared, approved and maintained by the COMELEC, of
overseas absentee voters whose applications for registration as absentee voters, including
those registered voters who have applied to be certified as absentee voters, have been
approved by the Election Registered Board. [Sec. 3e, R.A. 9189]
Grounds for cancellation/amendment of entries:
(1) When the overseas absentee voter files a letter under oath addressed to the COMELEC
that he/she wishes to be removed from the Registry of Overseas Absentee Voters, or that
his/her name be transferred to the regular registry of voters.
(2) When an overseas absentee voter’s name was ordered removed by the COMELEC from
the Registry of Overseas Absentee
Voters for his/her failure to exercise his/her right to vote under R.A. 9189 for 2 consecutive
national elections. [Sec. 9, R.A. 9189]
B. Inclusion / Exclusion Proceedings (Sections 138, 139, 142, Omnibus Election Code): A
challenge to right to register as a voter may be instituted by any voter, candidate or
representative of a registered political party.
The challenge must be:
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(1) in writing;
(2) specify the grounds for the objection to register;
(3) under oath; and
(4) attached to the application, together with the proof of notice of hearing to the challenger
and the applicant.
C. Deactivation of Registration
Definition: process of deactivating the registration of certain persons, removing their
registration records from the corresponding precinct book of voters and placing the same in
the inactive file, properly marked “deactivated” and dated in indelible ink.
Reasons of Deactivation: The ERB shall remove the registration records of the following
persons from the corresponding precinct book of voters and place the same in the inactive
file:
(1) Sentenced by final judgment to suffer imprisonment for not less than 1 year (unless
granted a plenary pardon or an amnesty) shall automatically reacquire right to vote upon the
expiration of 5 years after the service of sentence as certified by clerks of courts
(2) Adjudged by final judgment for having committed any crime involving disloyalty to the
duly constituted government (e.g. rebellion, sedition, violation of the firearms law) or any
crime against national security (unless restored to full civil and political rights in accordance
with law) shall automatically reacquire the right to vote upon the expiration of 5 years after
the service of sentence;
(3) Insane or incompetent persons as declared by competent authority;
(4) Did not vote in the 2 successive preceding regular elections (excluding SK elections);
(5) Registration has been ordered excluded by the Court; and
(6) Lost of Filipino citizenship. [Sec. 27, R.A. 8189]
D. Reactivation of Registration
Procedure: Any voter whose registration has been deactivated may file with the Election
Officer a sworn application for reactivation of his registration in the form of an affidavit
stating that the grounds for the deactivation no longer exist.
Period: Any time not later than 120 days before a regular election and 90 days before a
special election. [Sec. 28, R.A. 8189]
VI. REGISTRATION OF POLITICAL PARTIES

A. Political Party: An organized group of citizens advocating an ideology or platform,
principles and policies for the general conduct of government and which, as the most
immediate means of securing their adoption, regularly nominates certain of its leaders and
members as candidates for public office. [Sec. 60, BP 881 and Sec. 3(c) of RA 7941]
B. Types of Political Parties in the Philippines
(1) National Party - constituency is spread over the geographical territory of at least a majority of
the regions.
(2) Regional Party - constituency is spread over the geographical territory of at least a majority of
the cities and provinces comprising the region.
(3) Sectoral party – organized group of citizens belonging to any of the following sectors: labor,
peasant, fisherfolk, urban poor, indigenous cultural communities, elderly, handicapped, women,
youth, veterans, overseas workers and professionals whose principal advocacy pertains to the special
interests and concerns of their sector. (Ang Paglaum v. COMELEC, 201 )
C. Entities which cannot be registered as Political Parties
(1) Religious denominations and sects
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(2) Groups which seek to achieve their goals through violence or unlawful means
(3) Entities which refuse to uphold and adhere to the Constitution
(4) Associations supported by foreign governments [Art. IX-C, Sec. 2 (5), Constitution]
D. Purpose of Registration
(1) To acquire juridical personality
(2) To entitle it to rights and privileges granted to political parties
(3) To participate in the party-list system
E. Grounds for Refusal/Cancellation of Registration

The COMELEC may, motu propio or upon verified complaint of any interested party, refuse
or cancel, after due notice and hearing, the registration of any national, regional or sectoral
party, organization or coalition on any of the following grounds:
(1) Religious sect or denomination, organization or association, organized for religious
purposes
(2) Those advocating violence or unlawful means to seek its goal
(3) Foreign party or organization
(4) Those receiving support from any foreign government, foreign political party, foundation,
organization, whether directly or through any of its officers or members or indirectly through
third parties for partisan election purposes
(5) Those which violate or fail to comply with laws, rules or regulations relating to elections
(6) Those which declare untruthful statements in its petition
(7) Those which ceased to exist for at least one (1) year
(8) Those which fail to participate in the last two (2) preceding elections or
(9) Those which fails to obtain at least 2% of the votes cast under the party-list system in the
two (2) preceding elections for the constituency in which it has registered [Sec. 6, R.A. 7941]
D. Party-List System
1. Definitions: Sectoral organization: group of citizens or a coalition of groups of citizens
who share similar physical attributes or characteristics, employment, interests or concerns.
Coalition: an aggrupation of duly registered national, regional, sectoral parties or
organizations for political and/or election purposes. [Sec. 3, R.A. 7941, Party-List System
Act]
Any organized group of persons may register as a party, organization or coalition for
purposes of the party-list system.
2. Purpose: To enable Filipino citizens belonging to marginalized and underrepresented
sectors, organizations and parties, and who lack well-defined political constituencies but who
could contribute to the formulation and enactment of appropriate legislation that will benefit
the nation as a whole, to become members of the House of Representatives. [Sec. 2, R.A.
7941]
3. Nomination of party-list representatives: Each registered party, organization or coalition
shall submit to the COMELEC not later than 45 days before the election a list of names, not
less than five (5), from which party-list representatives shall be chosen in case it obtains the
required number of votes. National and local political parties may participate in the party list
system provided they do not field any candidates in the congressional legislative districts.
A member of a party list may be nominated: in one party list only; must give consent in
writing; must not be a candidate for any elective office; or has not lost his bid for an elective
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office in the immediately preceding electionNo change of names or alteration shall be
allowed after the same shall have been submitted to the COMELEC except when:
(1) The nominee dies;
(2) The nominee withdraws his nomination; or
(3) The nominee becomes incapacitated.
Names of party-list nominees shall not be shown on the certified list [Sec. 7, RA 7941]
4. Effect of Change of Party List Affiliation: Any elected party-list representative who
changes his political party or sectoral affiliation during his term of office shall forfeit his seat
within six (6) months before an election shall not be eligible for nomination as party-list
representative under his new party or organization [Sec. 15, R.A. 7941]
5. Seat Allocation: Banat v. COMELEC, G. R. No. 179271, July 8. 2009 - The combined
number of all party-list congressmen shall not exceed 20% of the total membership of the
House of Representatives, including those elected under the party-list. Only those parties
garnering a minimum of 2% of the total votes cast for the party-list system shall be entitled to
one guaranteed seat each. Each party, regardless of the number of votes it actually obtained,
is entitled to a maximum of three (3) seats.
VII. QUALIFICATIONS AND DISQUALIFICATIONS OF CANDIDATES / TERM
OF OFFICE
A. National Elective Officials

1. President (Sections 2 and 4, Art. VII, 1987 Constitution)
Qualifications: “Sec. 2 – No person may be elected President unless he is a natural – born
citizen of the Philippines, a registered voter, able to read and write, at least forty years of age
on the day of the election, and a resident of the Philippines for at least ten years immediately
preceding such election.”
Term of Office: “Sec. 4 – The President and the Vice-President shall be elected by direct
vote of the people for a term of six years which shall begin at noon on the thirtieth day of
June next following the day of the election and shall end at noon of the same date six years
thereafter. The President shall not be eligible for any reelection. No person who has
succeeded as President and has served as such for more than four years shall be qualified for
election to the same office at any time.”
2. Vice- President (Sections 3 and 4, Art. VII, 1987 Constitution)
Qualifications: Article VII, Section 3 – “There shall be a Vice-President who shall have the
same qualifications and term of office and be elected with and in the same manner as the
President. He may be removed from office in the same manner as the President.’
Term of Office: Article VII, Section 4 (2nd paragraph) – “No Vice-President shall serve for
more than two (2) successive terms. Voluntary renunciation of the office for any length shall
not be considered as an interruption in the continuity of the service for the full term for which
he was elected.”
3. Senator (Sections 3 and 4, Art. VI, 1987 Constitution)
Qualifications: Article VI, Section 3 – “No person shall be a Senator unless he is a natural-
born citizen of the Philippines, and, on the day of the election, is at least thirty-five years (35)
of age, able to read and write, a registered voter, and a resident of the Philippines for not less
than two years immediately preceding the day of the election.”
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Term of Office: Article VI, Section 4 – “The term of office of the Senators shall be six years
and shall commence, unless otherwise provided by law, at noon on the thirtieth day of June
next following their election.
No Senator shall serve for more than two (2) consecutive terms. Voluntary renunciation of
the office for any length of time shall not be considered as an interruption in the continuity of
his service for the full term for which he was elected.’
B. Congressional Representatives (Sections 6 and 7, Art. VI, 1987 Constitution)

Qualifications: Article VI, Section 6 – “No person shall be a Member of the House of
Representatives unless he is a natural-born citizen of the Philippines, and, on the day of the
election, is at least twenty-five (25) years of age, able to read and write, and except the party-
list representatives, a registered voter in the district in which he shall be elected, and a
resident thereof for a period of not less than one year immediately preceding the day of the
election. “
Term of Office: Article VI, Section 7 – ‘The Members of the House of Representatives shall
be elected for a term of three (3) years which shall begin, unless otherwise provided by law,
at noon on the thirtieth day of June next following their election.
No Member of the House of Representatives shall serve for more than three (3) consecutive
terms. Voluntary renunciation of the office for any length of time shall not be considered as
an interruption in the continuity of his service for the full term for which he was elected.”
Qualifications of Party List Representatives

(1) Natural-born citizen of the Philippines
(2) Registered voter
(3) Resident of the Philippines for a period of not less than 1 year immediately preceding the
day of the election
(4) Able to read and write
(5) Bona fide member of the party or organization which he seeks to represent for at least 90
days preceding the day of the election
(6) At least 25 years old on the day of the election
C. Local Elective Officials

1. Qualifications (Sec. 39, R.A. 7160)
“Sec. 39 – Qualifications. (a) An elective local official must be a citizen of the Philippines; a
registered voter in the barangay, municipality, city, province or, in the case of a member of
the sangguniang panlalawigan, sanggunian panlungsod, or sangguniang bayan, the district
where he intends to be elected; a resident therein for at least one (1) year immediately
preceding the day of the election; and able to read and write Filipino or any other local
language or dialect; and able to read and write Filipino or any other local language or dialect.
(b) Candidates for the position of mayor or vice-mayor of independent component cities,
component cities or municipalities must be at least twenty-one (21) years of age on election
day. (emphasis supplied)
2. Disqualifications (Sec. 40, R.A. 7160)
“Sec. 40 – Disqualifications. – The following persons are disqualified from running for any
elective local position:
• Those sentenced by final judgment for an offense involving moral
turpitude or for an offense involving moral turpitude or for an offense
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punishable by one (1) year or more of imprisonment within two (2) years
after serving sentence;
• Those removed from office as a result of an administrative case;
• Those convicted by final judgment for violating the oath of allegiance to
the Republic;
• Those with dual citizenship;
• Fugitives from justice in criminal or non-political cases here or abroad;
• Permanent residents in a foreign country or those who have acquired the
right to reside abroad and continue to avail of the same right after the
effectivity of this Code; and
• The insane or feeble-minded “
VIII. ELECTION PERIOD

Unless otherwise fixed by the COMELEC in special cases, the election period shall
commence 90 days before the day of election and shall end 30 days thereafter. (Sec. 9,
Article IX-C, Constitution)
IX. PRE-ELECTION ACTIVITIES/CONTROVERSIES
A. Certificate of Candidacy (“CoC”)
• As to FORM
• Contents of the CoC
• Name/s
• Citizenship
• Residence and Length of Stay
• Registered Voter of the Place
• Other Items
• WHEN to file the CoC Deadline/s:
• Under OEC: Day before the start of the campaign period
• National – 90 days before election
• Local/Congressional – 45 days before elections
Under RA 9369/Automated Election System: Deadline fixed by COMELEC
B. Effects of Filing:
One becomes an official and legitimate CANDIDATE files his Certificate of Candidacy
Rules:
~Under OEC, Section 67: Whether Elected or Appointed – ipso facto resigned – except an
elected official runs for same office/reelection or runs for President or Vice President.
~Under RA 9006: General repeal of Section 67 of the OEC & Section 11 rendered
ineffective. Hence, there is NO more ipso facto resignation for all elected officials.
~Under RA 9369 - Section 11 of Republic Act No. 8436 as amended by RA 9359: “A public
appointive office …shall be considered ipso facto resigned from his/her office and must
vacate the same at the start of the day of the filing of his/her certification of candidacy.”
Deny-due course/cancel Certificate of Candidacy
Under Section 78 of OEC & Section 23 of COMELEC RULES: Rule 23: Sec. 1. Exclusive
Ground – FALSE material representation in CoC.
Section 2. Period to File – within five (5) days from last day for filing of Certificate of
Candidacy
Nuisance Candidates
Section 76, OEC and Rule 24, COMELEC RULES:
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Classify:
• Makes Mockery/Disrepute
• Similarity of NAMES
• Not being BONAFIDE candidate
WHO can file: Candidate for the same elective position.
WHEN to file: within five (5) days from deadline/last day of filing Certificate of Candidacy
C. Disqualification
GROUNDS for Disqualification
First: Ineligibility – lack of mandated qualification
Second: Prohibited Acts before [premature convention/meeting to nominate/select
official candidates] and/or AFTER the Filing of CoC and before or after the Election BUT
before proclamation [Section 68 of OEC i.e. vote buying, terrorism illegal contribution;
Please also refer to Sec. 261 d, e, k & v, etc.]
Third: Under Section 12 of OEC – Incompetent/insane
Fourth: Under Section 40 of Local Government Code – for local officials
OTHERs: Green Card holder
Conviction
D. Substitution of Candidates: Only in three (3) instances:
• Death/Permanent Incapacity
• Disqualification
• Withdrawal
Case: VICE-MAYOR MARCELINA S. ENGLE v. COMMISSION ON ELECTIONS EN BANC
and WINSTON B. MENZON, January 19, 2016, G.R. No. 215995: grounds for substitution;
sufficiency of substitution
E. Premature Campaigning
• Old Rule under OEC: Once one files – becomes a CANDIDATE, and he can
no longer campaign until the start of campaign period – otherwise
PREMATURE campaigning.
Simple RULE: NO Certificate of Candidacy filed, NOT yet a candidate – NO
premature campaigning
• Under RA 9369: “Any person who files his certificate of candidacy within this
period shall only be considered as a candidate at the start of the campaign
period for which he filed his certificate of candidacy: Provided, that, unlawful
acts or omissions applicable to a candidate shall take effect only upon that
start of the aforesaid campaign period.” [Panera v. COMELEC (2009)]
Prohibited campaigning days: It is unlawful for any person to engage in an election
campaign or partisan political activity on:
(1) Maundy Thursday
(2) Good Friday
(3) Eve of Election Day and
(4) Election Day [Sec. 3, COMELEC Resolution 8758]
Election campaign or partisan political activity: An act designed to promote the election or
defeat of a particular candidate or candidates to a public office. [Sec. 79, B.P. 881]
Activities construed as partisan political activity:
(1) Forming organizations or groups of persons
(2) Holding political caucuses, meetings, rallies or other similar assemblies
(3) Making speeches or commentaries
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(4) Publishing or distributing campaign literature or materials for the purpose of soliciting
votes and/or undertaking any campaign or propaganda to support or oppose the election of
any candidate.
Acts which are deemed excluded:

(1) Acts performed for the purpose of enhancing the chances of aspirants for nomination for
candidacy to a public office by a political party, aggroupment, or coalition of parties.
(2) Public expressions of opinions or discussions of probable issues in a forthcoming election
or on attributes or criticisms of probable candidates proposed to be nominated in a
forthcoming political party convention. [Sec. 79, B.P. 881]
Persons Prohibited from Campaigning:
(1) Members of the board of election inspections [Sec. 173, B.P. 881]
(2) Civil service officers or employees [Art. IX-B, Sec. 2 (4), Const.]
(3) Members of the military [Art. XVI, Sec. 5 (3), Const.]
(4) Foreigners, whether juridical or natural persons.
Campaign Period: For President, Vice-President and Senators: 90 days before the day of
the election.
For Members of the House of Representatives and elective provincial, city and
municipal officials: 45 days before the day of the election. [Sec. 5, R.A. 7166]
X. JURISPRUDENCE RELATED TO CANDIDATES

A. Citizenship Requirement
1. Poe v. COMELEC, March 2016 (Read only the main opinion and its discussion on the
issue of citizenship)
2. Macquiling v. COMELEC, G.R. No. 195649, July 2, 2013: to govern, one must have the
necessary qualifications; effect of filing a void Certificate of Candidacy
3. Arnado vs. COMELEC and Captain, G.R. No. 210164, August 18, 2015, the Court ruled:
"Under Section 4(d) of the Local Government Code, a person with "dual citizenship" is
disqualified from running for any elective local position.
B. Residence Requirements
1. Poe v. COMELEC, March 2016 (Read only the main opinion and its discussion on the
issue of residence)
2. Romualdez-Marcos v. COMELEC 248 SCRA 300 G.R. No. 119976 Sept. 18, 1995
3. Aquino v. COMELEC 248 SCRA 400 G.R. No. 120265, Sept. 18, 1995
4. Abella v. COMELEC 201 SCRA 253 G.R. No. 100710 Sept. 3, 1991
C. Term Limit
1. Montebon and Onday v. COMELEC and Potencioso, Jr. G.R. No. 18044 April 8, 2008
2. Sandoval v. COMELEC G.R. No. 154683 Nov. 12, 2002
D. Disqualification
1. MARY ELIZABETH TY-DELGADO v. HOUSE OF REPRESENTATIVES ELECTORAL
TRIBUNAL and PHILIP ARREZA PICHAY, January 26, 2016, G.R. No. 219603: conviction
for the crime of libel
2. Cayat v. COMELEC, G.R. No. 163776, April 24, 2007: conviction for acts of
lasciviousness
3. Ongsiako-Reyes v. COMELEC, G.R. No. 207264, October 22, 2013: lack of citizenship;
claim of residence
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E. Electioneering
Bernardo et al v. Abalos et al G.R. No. 137266 December 5, 2004: Complainant must present
actual proof to establish that certain acts of incumbent elective officials were employed to
show they were meant to influence public school teachers.
F. Failure of Elections
Banaga, Jr. v. COMELEC, G.R. No. 134696, July 31, 2000 – For failure of election to be
declared, two conditions must concur: no voting took place and the same is due to: force
majeure, violence, terrorism, fraud or other analogous cases.
What constitutes an election: Plurality of votes sufficient for:
(1) A choice conditioned on the plurality of valid votes or
(2) A valid constituency regardless of the actual number of votes cast.
Grounds to Declare Failure of Elections: (1) Election in any polling place has not been
held on the date fixed due to force majeure, violence, terrorism, fraud, or other analogous
causes.
(2) Election in any polling place had been suspended before the hour fixed for the closing of
the voting due to force majeure, violence, terrorism, fraud, or other analogous causes.
(3) After the voting and during the preparation and transmission of the election returns or in
the custody or canvass thereof such election results in a failure to elect due to force majeure,
violence, terrorism, fraud or other analogous causes. [Sec. 6, B.P. 881]
COMELEC, sitting en banc, may declare a failure of election by a majority vote of its
members
XI. ELECTION PROTEST

A. Canvass of Votes by Appropriate Board of Canvassers (“BOC”)
1. For Local Candidates including Congressional District Representatives: District or
provincial BOC or the city BOC;
2. For Senators and Party-List Representatives: COMELEC sitting as the National BOC;
and
3. For the President and Vice President: Congress as the National BOC
B. Proclamation: Proclamation shall be done after the canvass of election returns. In the
absence of a perfected appeal to the COMELEC, the candidates who obtained the highest
number of votes cast in the province, city, municipality or barangay, on the basis of the
certificates of canvass, may be proclaimed by the concerned BOC.
Partial Proclamation: Notwithstanding pendency of any pre-proclamation controversy,
COMELEC may summarily order proclamation of other winning candidates whose election
will not be affected by the outcome of the controversy. [Sec. 21, R.A. 7166]
A proclamation is deemed void:
(1) When it is based on incomplete returns [Castromayor v. Comelec (1995)] or
(2) When there is yet no complete canvass. [Jamil v. Comelec (1997)]
(3) A void proclamation is no proclamation at all, and the proclaimed candidate’s assumption
into office cannot deprive the COMELEC of its power to annul the proclamation.
Election resulting in a Tie: BOC, by resolution, upon five (5) day- notice to all tied
candidates, shall hold a special public meeting at which the board shall proceed to the drawing
of lots of tied candidates and shall proclaim as elected the candidates who may be favored by luck.
[Sec. 240, B.P. 881]
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Proclamation of a Lone Candidate: Upon the expiration of the deadline for the filing of
Certificates of Candidacy in a Special Election Called To Fill A Vacancy in an elective
position other than for President and Vice President, when there is only one (1) qualified
candidate, he shall be proclaimed elected without holding the special election upon
certification by the COMELEC that it is the only candidate for the office and is therefore
deemed elected. [Sec. 2, R.A. 8295, Law on Proclamation of Solo Candidates]
C. Election Protest: a contest between the defeated and winning candidates on the ground of
fraud or irregularities in the casting of votes and counting of the ballots, or in the preparation
of the returns. It raises the question of who actually obtained the plurality of the legal votes
and therefore is entitled to hold the office.
1. ROLANDO P. TOLENTINO v. COMMISSION ON ELECTIONS (FIRST DIVISION),
ATTY. CRISTINA T. GUIAO-GARCIA, and HENRY MANALO, January 26, 2016, G.R. No.
218536: nature of protest in a barangay election
2. Topacio v. Paredes, G.R. No. L-8069, October 7, 1912 – Election disputes involve those
pertaining to casting and counting of votes and those referring to eligibility of candidates.
3. Soller vs. COMELEC, G.R. No. 139853, Sept. 5, 2000 – Issues related to election
protest must first be head by a COMELEC division. An appeal of a ruling of a Division is
resolved by COMELEC en banc.
4. Carloto v. COMELEC, G.R. No. 174155, January 24, 2007 – Dismissal is proper for
failure to cite specific allegations that would merit the review of the result of the election.
5. Villarosa v. HRET and Ricardo V. Quintos, G.R. No. 143351, 144129, Sept. 14, 2000 – For
appropriating the initials or nickname of her spouse, Congresswoman Villarosa was unseated.
6. Torres v. HRET, G.R. No. 144491, February 6, 2001 – The Supreme Court upheld the
findings of HRET which conducted the revision of ballots which is consistent with the settled
jurisprudence that the Court will not disturb the findings of facts of a tribunal where there is
no patent misappreciation of the evidence.
7. Pimentel v. COMELEC, G.R. No. 178413, March 13, 2008 – Only the Senate Electoral
Tribunal has the sole jurisdiction over proceedings of the National Board of Canvassers.
8. Legarda v. de Castro PET Case No. 003, Jan. 18, 2008 – The Supreme Court dismissed
the Petition for each of legal and factual basis, as pilot tested revision of ballots would not
affect the major of votes obtained by de Castro and for failure of Legarda to pay the required
fees.
An election contest consists of either:

(1) An election protest; or
(2) A quo warranto proceeding
Case:
Samad v. COMELEC, (1993): Once the competent tribunal has acquired jurisdiction of an
election protest or a petition for quo warranto, all questions relative thereto will have to be
decided in the case itself and not in another proceeding. This procedure will prevent
confusion and conflict of authority. Conformably, the Court has ruled in a number of cases
that after a proclamation has been made, a pre-proclamation case before the COMELEC is no
longer viable.
Exceptions: The rule admits of exceptions, however, as where:
(1) The Board of Canvassers was improperly constituted;
(2) A quo warranto proceeding was not the proper remedy;
(3) When what was filed was not really a petition for quo warranto or an election protest but a
petition to annul a proclamation;
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(4) When the filing of a quo warranto petition or an election protest was expressly made
without prejudice to the pre-proclamation controversy or was made ad cautelam; and
(5) When the proclamation was null and void. [Samad v. Comelec, (1993)]
D. Jurisdiction over Election Contests
(1) COMELEC – over all contests relating to the elections, returns and qualifications of all
elective regional, provincial and city officials [Sec. 250. BP 881]
(2) RTC - over contests involving municipal officials [Sec. 251. BP 881]
(3) MeTC or MTC – over election contests involving barangay officials [Sec. 252. BP 881]
(4) HRET – over election contests involving members of the House of Representatives
(5) SET – over election contests involving members of the Senate
(6) PET – over election contests involving presidential and vice-presidential candidates
Cases:
1. Reyes v. COMELEC and Tan, G.R. No. 207264, June 25, 2013. To be considered a
member of Congress, there must be concurrence of the following requisites: a valid
proclamation; a proper oath; and assumption to duty. Absent any of the foregoing, the
COMELEC retains jurisdiction over said contests.
2. Macalintal v. PET, G.R. No. 191618, June 11, 2011. PET, as intended by the framers of
the Constitution, is to be an institution independent, but not separate, from the judicial
department.
3. Ongsiako Reyes v. COMELEC et. al., G.R. No. 207264, Oct. 22, 2013: HRET is sole judge
of all election contests involving members of HOR, supra
4. Velasco v. Hon. Belmonte (2016): A writ of mandamus may be issued to compel the
Speaker of the House to administer the oath of the duly-elected representative of a
congressional district; nature of a quo warranto proceeding against an elective official
4. Pimentel v. COMELEC, G. R. No. 178414, March 13, 2008 and Tanada, Jr. v. COMELEC
et. al. G.R. Nos. 207199-200, Oct. 22, 2013: proclamation of winner in a senatorial election
deprives the COMELEC of jurisdiction; SET must resolve the contest.
E. Issues in Election Cases
Only the following issues may be raised in all election cases: Election, Returns and
Qualifications
XII. ELECTION OFFENSES

A. Prohibited Contributions: No candidate shall receive contributions from:
(1) Public or private financial institutions. Unless:
(a) The financial institutions are legally in the business of lending money;
(b) The loan is made in accordance with laws and regulations; and
(c) The loan is made in the ordinary course of business.
(2) Natural and juridical persons operating a public utility or in possession of or exploiting
any natural resources of the nation.
(3) Natural and juridical persons who hold contracts or sub-contracts to supply the
government or any of its divisions, subdivisions or instrumentalities, with goods or services
or to perform construction or other works.
(4) Grantees of franchises, incentives, exemptions, allocations or similar privileges or
concessions by the government or any of its divisions, subdivisions or instrumentalities,
including GOCCs.
(5) Grantees, within one (1) year prior to the date of the election, of loans or other
accommodations in excess of P100,000 by the government or any of its divisions,
subdivisions or instrumentalities including GOCCs.
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(6) Educational institutions which have received grants of public funds amounting to no less
than P100,000.
(7) Officials or employees in the Civil Service, or members of the Armed Forces of the
Philippines.
(8) Foreigners and foreign corporations, including foreign governments. [Sec. 95 and 96, B.P.
881]
B. Prohibited Fund-Raising Activities: The following are prohibited if held for raising
campaign funds or for the support of any candidate from the start of the election period up to
and including election day:
(1) Dances
(2) Lotteries
(3) Cockfights
(4) Games
(5) Boxing bouts
(6) Bingo
(7) Beauty contests
(8) Entertainments, or cinematographic, theatrical or other performances
C. Prohibited Donations: For any person or organization, civic or religious, directly or
indirectly, to solicit and/or accept from any candidate or from his campaign manager, agent
or representative, or any person acting in their behalf, any gift, food, transportation,
contribution or donation in cash or in kind from the start of the election period up to and
including election day
Except: Normal and customary religious stipends, tithes, or collections on Sundays and/or
other designated collection days [Sec. 97, B.P. 881]
Requisites of a Prohibited Donation: Who: By candidate, spouse, relative within 2nd civil degree
of consanguinity or affinity, campaign manager, agent or representative; treasurers, agents or
representatives of political party
When: During campaign period, day before and day of the election
Directly or indirectly:
(1) Donation, contribution or gift in cash or in kind; or
(2) Undertake or contribute to the construction or repair of roads, bridges, school buses,
puericulture (health) centers, medical clinics and hospitals, churches or chapels cement
pavements, or any structure for public use or for the use of any religious or civic
organization.
Exceptions:
(1) Normal and customary religious dues or contributions; or
(2) Periodic payments for legitimate scholarships established and school contributions
habitually made before the prohibited period.
A foreigner is prohibited to:
(1) Aid any candidate or political party, directly or indirectly;
(2) Take part or influence in any manner in any election; or
(3) Contribute or make any expenditure in connection with any election campaign or partisan
political activity. [Sec. 81, B.P. 881]
A person during the campaign period to:
(1) Remove, destroy, obliterate or in any manner deface or tamper with lawful election
propaganda; or
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(2) prevent the distribution of lawful election propaganda [Sec. 83, B.P.881]
It is not allowed for any candidate, political party, organization or any person to:
(1) Give or accept, directly or indirectly, free of charge, transportation, food or drinks or
things of value during the five hours before and after a public meeting, on the day preceding
the election, and on the day of the election;
(2) Give or contribute, directly or indirectly, money or things of value for such purpose
(Sec. 89, B.P. 881)
D. Limitations on Expenses
For Candidates affiliated with Political Parties/Coalition
(1) President and Vice President: P10 for every voter currently registered
(2) Other candidates: P3 for every voter currently registered in the constituency where he
filed his certificate of candidacy
For candidates without a political party: P5 for every voter
For Political Parties: P5 for every voter currently registered in the constituency or
constituencies where it has official candidates [Sec. 13, R.A. 7166, An Act Providing for
Synchronized National and Local Elections and Electoral Reforms]
Statement of Contributions and Expenses: Every candidate and treasurer of the political
party shall file in duplicate with the COMELEC the full, true and itemized statement of all
contributions and expenditures in connection with the election within 30 days after the day of
the election.
Effect of Failure to File Statement: No person elected to any public office shall enter upon
the duties of his office until he has filed the statement of contributions and expenditures. The
same prohibition shall apply if the political party which nominated the winning candidate
fails to file the statements.
CASES:
1. GOV. EXEQUIEL B. JAVIER v. COMMISSION ON ELECTIONS, CORNELIO P. ALDON,
and RAYMUNDO T. ROQUERO, January 12, 2016, G.R. No. 215847: liability for
commission of election offense; what constitutes an election offense
2. WIGBERTO "TOBY" R. TAÑADA, JR. v. HOUSE OF REPRESENTATIVES ELECTORAL
TRIBUNAL, ANGELINA "HELEN" D. TAN, AND ALVIN JOHN S. TAÑADA,G.R. No.
217012, March 01, 2016, grounds for cancellation of COC; jurisdiction of the HRET
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Part III: Law on Public Officers
A. General Principles
Definition: The right, authority and duty, created and conferred by law, by which, for a given
period either fixed by law or enduring at the pleasure of the creating power, an individual is
invested with some portion of the sovereign functions of government, to be exercised by that
individual for the benefit of the public. [Mechem, quoted in Fernandez v. Sto. Tomas
(1995)]
Philippine Constitution, Art. XI, Sec. 1 “Sec. 1. Public office is a public trust. Public
officers and employees must, at all times, be accountable to the people, serve them with
utmost responsibility, integrity, loyalty, and efficiency; act with patriotism and justice, and
lead modest lives.”
JESSICA LUCILA G. REYES v. THE HONORABLE OMBUDSMAN, G.R. Nos. 212593-94,
March 15, 2016: Accountability of public officers; powers of the Ombudsman (Sections 5 to
14, Article XI of the 1987 Constitution, in relation to R.A. No. 6770, or otherwise known as
"The Ombudsman Act of 1989.")
Public office may be considered property in a limited sense:
(1) In quo warranto proceedings to decide which of the two persons is entitled to a public
office.
(2) When the dispute concerns security of tenure.
B. Creation, Modification and Abolition of Public Office
1. Creation of Public Office
General Rule: The creation of public office is a congressional prerogative.
Exceptions: Offices created by the Constitution; and offices created by a tribunal or body to
which the power to create has been validly delegated.
2. Modification and Abolition of Public Office
General Rule: Legislative in nature, as the power to create includes power to modify or
abolish.
Exceptions:
(1) Where the Constitution prohibits such modification/abolition;
(2) Where the Constitution gives the people the power to modify or abolish the office [i.e.
Recall]
Estoppel in Denying Existence of Office
A person is estopped from denying that he has occupied a public office when he has acted as
a public officer; more so when he has received public monies by virtue of such office.
Case: Mendenilla v. Onandia (1962)]
3. Classification of public offices and public officers

As to creation: constitutional or statutory
As to public served: national or local
As to duties discharged: legislative, executive, or judicial
As to nature of responsibilities: civil or military
As to exercise of discretion: discretionary or ministerial
As to title to office: de jure or de facto
As to compensation: lucrative or honorary
C. Modes and Kinds of Appointment
Modes of Acquiring Title to Public Office
(1) Election: selection by popular vote
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(2) Appointment: under the Constitution; by provision of law; role of CSC
(3) Others:
(a) Succession by operation of law;
(b) Direct provision of law, e.g. ex-officio officers Secretary of Justice as member of the
JBC
Kinds: elective and appointive
D. Eligibility and Qualification Requirements
Eligibility: all government positions require specific eligibility to be considered as being
legally fit or qualified to be chosen.
Qualification: Endowment/act which a person must do before he can occupy a public office.
Restrictions on the Power of Congress to Prescribe Qualifications:
(1) Congress cannot exceed its constitutional powers;
(2) Congress cannot impose conditions of eligibility inconsistent with constitutional
provisions;
(3) The qualification must be germane to the position;
(4) Congress cannot add to eligibility requirements specified in the Constitution; and
(5) Congress cannot prescribe qualifications so detailed to amount to making a legislative
appointment which violates the doctrine of separation of powers.
Cases: Flores v. Drilon (1993)]: restrictive provisions
Vargas v. Rilloraza (1948): review of qualifications
Manalang v. Quitorano (1954)]: automatic transfer
Cuyegkeng v. Cruz (1960)]: importance of shortlist of candidates
When qualifications must be possessed:

(1) At the time specified by the Constitution or law.
(2) If time is unspecified, there are two views:
(a) Qualification during commencement of term or induction into office– if qualified at the
time of commencement of the term or induction into office, disqualification of the candidate
or appointee at the time of election or appointment is immaterial
b) Qualification/eligibility during election or appointment – conditions of eligibility must
exist at the time of the election or appointment, and that their existence only at the time of the
commencement of the term of office or induction of the candidate or appointee into office is
not sufficient to qualify him to office.
(3) Qualification is of a continuing nature, and must exist throughout the holding of the
public office. Once the qualifications are lost, the public officer forfeits the office.
Case: Castaneda v. Yap (1952): no estoppel on claim for eligibility.
E. Disabilities and Inhibitions of Public Officers
1. General Rule: Individuals who lack ANY of the qualifications prescribed by the
Constitution or by law for a public office are ineligible (i.e. disqualified from holding such
office).
2. Authority to prescribe qualifications: The legislature has the right to prescribe
disqualifications in the same manner that it can prescribe qualifications, PROVIDED that the
prescribed disqualifications do not violate the Constitution.
3. General Constitutional Disqualifications
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(a) Losing candidates cannot be appointed to any governmental office within one year after
such election. (Art. IX-B Sec. 6)
(b) Elective officials during their tenure are ineligible for appointment or designation in ANY
capacity to ANY public office or position [Art. IX-B Sec. 7(1)] unless they forfeit their seat
(c) General Rule: Appointive officials shall not hold any other governmental position,
UNLESS otherwise allowed by law or his position’s primary functions [Art. IX-B Sec 7 (2)]
• Exception: ex-officio positions, which are positions held as provided by law
and required by the primary functions of the office.
• Exception to exception: However, the President, VP, the members of the
Cabinet and their deputies or assistants are subject to the stricter
disqualification that they cannot hold ANY other office or employment, even
ex-officio ones.
• Exception to THAT: where such holding of two positions is provided in the
Constitution, e.g. the President is the head of NEDA.
4. Specific Constitutional Disqualifications
(a) The President, Vice President, the Members of the Cabinet and their deputies or
assistants: Shall not hold any other office or employment during their tenure, UNLESS
otherwise provided in the Constitution, (Art. VII, Sec. 13)
(b) The President’s spouse and relatives by consanguinity or affinity within the fourth civil
degree: Shall not be appointed during President’s tenure as Members of the Constitutional
Commissions, or the Office of the Ombudsman, or as Secretaries, Undersecretaries, chairmen
or heads of bureaus or offices, including government-owned-or -controlled corporations.
(Art. VIII, Sec. 13)
(c) Senator or Member of the House of Representatives: May not hold during his term any
other office or employment in the Government, or any subdivision, agency or instrumentality
thereof, including government -owned or -controlled corporations or their subsidiaries. If he
does, he forfeits his seat; and
Shall also not be appointed to any office when such was created or its emoluments were
increased during his term. (Art. VI, Sec 13)
(d) Members of the Supreme Court and other courts established by law: Shall not be
designated to any agency performing quasi-judicial or administrative functions. (Art. VIII,
Sec. 12)
(e) Members of the Constitutional Commissions: Shall not hold any other office or
employment [during their tenure]. (Art. IX-A, Sec. 2)
(e) The Ombudsman and his Deputies: No other office or employment during their tenure.
(Art. XI, Sec. 8)
5. Other Disqualifications
(a) Mental or physical incapacity
(b) Misconduct or crime: persons convicted of crimes involving moral turpitude are
disqualified from holding public office.
(c) Impeachment: review procedure on impeachment and trial; effect on public official
impeached
(d) Removal or suspension from office: jurisdiction of Ombudsman and Civil Service
Commission
(e) Previous tenure of office: limitations on extension of term of office fixed by the
Constitution and by law
26 | P a g e

(f) Consecutive terms limit:
(a) Vice-President = two consecutive terms of 6 years each
(b) Senator = two consecutive terms of 6 years each
(c) Representative of Congressional District = three consecutive terms of 3 years each
(d) Elective local officials = 3 consecutive terms (Sec. 8, Art. X, Constitution)
(g) Holding more than one office, supra.
(h) Holding of office in the private sector:
(i) Section 7 (b)(1)of RA 6713 makes it unlawful for public officials and employees to own,
control, manage, or accept employment as officer, employee, consultant, counsel, broker,
agent, trustee or nominee in any private enterprise regulated, supervised or licensed by their
office during their incumbency unless expressly allowed by law.
(ii) Section 7 of RA 6713 also generally provides for the prohibited acts and transactions of
public officials and employees. Subsection (b) (2) prohibits them from engaging in the
private practice of their profession during their incumbency. As an exception, a public
official or employee can engage in the practice of his or her profession under the following
conditions:
first, the private practice is authorized by the Constitution or by the law; and
second, the practice will not conflict, or tend to conflict, with his or her official functions.
5. Nepotism
General Rule: The Civil Service Decree (PD 807) prohibits all appointments in the national
and local governments or any branch or instrumentality thereof made in favor of relatives
within the third degree of consanguinity or affinity of:
(a) appointing authority;
(b) recommending authority;
(c) chief of the bureau office; or
(d) person exercising immediate supervision over the appointee
In the last two cases, it is immaterial who the appointing or recommending authority is. To
constitute a violation of the law, it suffices that an appointment is extended or issued in favor
of a relative of the chief of the bureau or office, or the person exercising immediate
supervision over the appointee
Case: CSC v. Dacoycoy (1999)
Exceptions to rule on nepotism:
(a) persons employed in a confidential capacity
(b) teachers
(c) physicians
(d) members of the Armed Forces of the Philippines
(f) those that were already appointed to the same office, but later got married.
6. Midnight Appointments: A President or Acting President is prohibited from making
appointments two months immediately before the next presidential elections and up to
the end of his term. (Art. VII, Sec. 15, Constitution)
Case: De Castro v. JBC, G.R. No. 1911002, March 17, 2010
Exception: Temporary appointments to executive positions when continued vacancies
therein will prejudice public service or endanger public safety.
7. Limitations under the Local Government Code, the ff. cannot be local government
officials (Sec. 40, LGC)
27 | P a g e

(a) Sentenced by final judgment for an offense involving moral turpitude or for an
offense punishable by 1 year or more of imprisonment, within 2 years after serving
sentence;
(b) Removed from office as a result of an administrative case;
(c) Convicted by final judgment for violating the oath of allegiance to the Republic;
(d) Those holding dual allegiance.
(e) Fugitive from justice in criminal or non-political cases here or abroad;
(f) Permanent residents in a foreign country or those who have acquired the right to
reside abroad and continue to avail of the same right after the effectivity of the Local
Government Code;
(g) The insane or feeble-minded.
F. Powers and Duties of Public Officers
1. Source of Power of Public Officers: Sovereignty resides in the people, and is then
delegated to public officers.
2. Authority of Public officers
(a) The grant of authority is not presumed. In the absence of a valid grant, public officers are
devoid of power.
(b) The public are presumed to have knowledge of a public official’s authority, and are given
the responsibility to ascertain the scope of his authority. As a result, there is no such thing as
apparent authority of a public officer.
3. The power of a public officer includes those:
(a) Expressly conferred upon him by the act appointing him
(b) Expressly annexed to the office by law and
(c) Attached to the office by common law as incidents to it
4. Doctrine of necessary implication – all powers necessary for the effective exercise of the
express powers are deemed impliedly granted
5. Limitations of the powers of a public officer
• Authority can be exercised only during the term when the public officer is, by law,
invested with the rights and duties of the office
• May only be exercised in the territory where the authority is effective.
G. Rights of Public Officers
1. Rights incident to public office
The rights of one elected or appointed to office are, in general, measured by the
Constitution or the law under which he was elected or appointed.
2. Rights as a citizen
(a) Protection from publication commenting on his fitness and the like
(b) Engaging in certain political and business activities
3. Right to compensation and other benefits
Right of a de facto officer to salary –where there is no de jure officer, a de facto officer who,
in good faith, has possession of the office and has discharged the duties thereof, is entitled to
salary.
Case: Civil Liberties Union v. Executive Secretary, G.R. No. 83896, February 22, 1991
4. Right to Vacation Leave and Sick Leave with Pay
5. Right to Retirement Pay
6. Rights under the Constitution
(a) Right to self-organization
28 | P a g e

(b) Right to protection of temporary employees
(c) Freedom of members of Congress from arrest and from being questioned
(d) Right not to be removed or suspended except for cause provided by law
7. Rights under the Civil Service Decree and the New Administrative Code
(a) Right to preference in promotion
(b) Right to present complaints and grievances
(c) Right not to be suspended or dismissed except for cause as provided by law and after due
process
(d) Right to organize
H. Liabilities of Public Officers

1. Three fold liability of a public officer: civil liability, criminal liability and
administrative liability
CASE: ALMA G. PARAISO-ABAN v. COMMISSION ON AUDIT, January 12, 2016, G.R.
No. 217948: degree of diligence required of a public officer; liability for failure to observe
responsibility of required of a public officer
2. Preventive suspension is not a penalty but is mean to safeguard the integrity of the
administrative investigation. There is no compensation given during this period of
suspension.
3. Effects on resolution of cases on public officers:
When a public officer is suspended pending appeal, he is entitled to compensation for
the period of suspension if he is found innocent.
If a public officer is illegally removed, he may be reinstated. If there was bad faith or
malice, the superior who caused such illegal removal will be held personally accountable
for the back salaries of subject employee.
The award of backwages is limited to a maximum period of five years.
Case: David v. Gania (2003)
Right to Reinstatement: Reinstatement means the restoration to a state or condition from
which one had been removed or separated. One who is reinstated assumes the position he had
occupied prior to the dismissal.
Right to Back Salaries –back salaries are payable to an officer illegally dismissed or
otherwise unjustly deprived of his office, the right to recover accruing from the date of
deprivation. The claim for back salaries must be coupled with a claim for reinstatement and
subject to the prescriptive period of one year.
I. Immunity of Public Officers
Official immunity is not absolute; serves to protect the public officer in the discharge of
his responsibilities; serves as a protective aegis for public officials from tort liability for
damages on account of his responsibilities
J. De Facto Officers
De jure and de facto officers, distinguished: elements of in determining is one is a de facto
officer:
• There must be a de jure office
• Color of right or general acquiescence by the public
• Actual physical possession of the office in good faith
Quo Warranto – normally brought in cases involving public officers, both elective and
appointive, as to which party has a right or title to the office.
K. Termination of Official Relation
29 | P a g e

1. Expiration of Term of office
2. Accomplishment of the Purpose accomplishment of the purposes which called it into
being
3. Upon reaching the age limit (retirement)
Compulsory Retirement Age
(1) Members of the Judiciary – 70 yrs old
(2) Other government officers and employees – 65 yrs old [new GSIS Charter]
(3) Optional retirement age – after rendition of the minimum number of years of service [RA
1616]
4. Death or when public servant suffers permanent disability
5. Resignation from office
6. Holding of incompatible offices
7. Abolition of office
8. Reorganization
9. Attrition
10. Impeachment
11. Conviction of a crime
12. Removal for Cause
L. The Civil Service

1. Types of public officers: appointive (except for confidential appointees, must comply with
CSC standard qualifications); and elective (derives position by direct mandate of the people.
2. QUALITIES of a Public Officer (RILE): must serve with utmost RESPONSIBILITY,
INTEGRITY, LOYALTY and EFFICIENCY; act with patriotism and justice and lead
modest life.
3. General Rule: A public servant may only be removed for cause. Every appointment is
based on merit and fitness.
4. Next-in-Rank Rule
This rule specifically applies only in cases of promotion. It neither grants a vested right to the
holder nor imposes a ministerial duty on the appointing authority to promote such person to
the next higher position.
One who is “next-in-rank” to a vacancy is given preferential consideration for promotion to a
vacant position, but it does not necessarily follow that he alone and no one else can be
appointed.
Reason for the rule: The preference given assumes that employees working in an office for
longer period have gained not only superior skills but also greater dedication to the public
service provided that the acts of the appointing power are bona fide for the best interest of the
public service and the person chosen has the needed qualifications.
5. Personnel Actions
Any action denoting the movement or progress of personnel in the civil service is known as
personnel action.
It includes:
(a) appointment through certification
(b) promotion
(c) transfer
(d) reinstatement
(e) reemployment
(f) detail
(g) reassignment
30 | P a g e

(h) demotion and
(i) separation
M. Accountability of Public Officers

1. Jurisdiction of the Sandiganbayan (Art. XI, Sec. 4)
Cases:
Serena v. Sandiganbayan, 542 SCRA 224
People v. Luis Morales, G.R. No. 166355, May 30, 2011
2. The Office of the Ombudsman
• Composition (Art. XI, Sec. 5)
• Qualification (Art. XI, Sec. 8)
• Appointment and term (Art. XI, Sections 8 and 11)
• Rank and Salary (Art. XI, Sec. 10)
• Disqualifications (Art.XI, Sec. 8, Art. IX, A, Sec. 2)
• Jurisdiction (Art. XI, Sec. 12)
• Powers and functions (Art. XI, Sec. 13)
• Fiscal autonomy (Art. XI, Sec. 14)
• Appointment of personnel (Art. XI, Sec. 6)
Cases:
Ombudsman Carpio-Morales v. Court of Appeals, Binay et al (2016)
Emilio A. Gonzales III v. Office of the President, etc., et al./Wendell Bareras-Sulit v. Atty.
Paquito N. Ochoa, Jr., et al., G.R. No. 196231/G.R. No. 196232, January 28, 2014
Office of the Special Prosecutor (Art. XI, Sec. 7)
Emilio A. Gonzales III v. Office of the President, etc., et al./Wendell Bareras-Sulit v. Atty.
Paquito N. Ochoa, Jr., et al, supra
ZAMBOANGA CITY WATER DISTRICT, represented by its General Manager, Leonardo
Rey D. Vasquez v. COMMISSION ON AUDIT, January 26, 2016, G.R. No. 213472:
limitations on grant of benefits
METROPOLITAN NAGA WATER DISTRICT, VIRGINIA I. NERO, JEREMIAS P.
ABAN JR., AND EMMA A. CUYO v. COMMISSION ON AUDIT, G.R. No. 218072,
March 08, 2016: grant of COLA and other fringe benefits
MARY LOU GETURBOS TORRES v. CORAZON ALMA G. DE LEON, in her capacity as
Secretary General of the Philippine National Red Cross and THE BOARD OF
GOVERNORS of the PHILIPPINE NATIONAL RED CROSS, National Headquarters,
January 18, 2016, G.R. No. 199440: jurisdiction of the CSC over PNRC employees
Please note:
Resolutions/ actions of CSC, COA and COMELEC are reviewed by S.C. en banc because
the Constitution provides for this. Rule 65 is normally applied.
Certiorari, Prohibition and Mandamus: distinguish one from the other, requisites for
issuance of the writs; certiorari normally invoked where there is no other speedy remedy
available particularly where there is abuse of discretion on the part of the respondent-party
and to correct errors of jurisdiction; prohibition – prevents/enjoins the party from acting on a
matter presented the court; and mandamus – will be issued only when there is particular
law which commands the party to perform an act and will not to compel the
performance of a discretionary duty (ex. issuance of a passport or visa).
31 | P a g e

32 | P a g e

COURSE OUTLINE
CORPORATIONS LAW
2nd Semester, AV 2017-2018
I. GENERAL1
Campos, Volume 1, Chapter I, pages 1-21 2
A Business organizations
Read Aquino, Corporate law Compendium, pages 1-29
B. Governing law
1) Basic law: Corporation Code, Batas Pambansa Big. 68 (May 1980) 3
2) Act No. 1459, the Corporation law (1906) as amended; repealed by BP 684;
indicated in this Outline because certain cases refer to its provisions. BP 68
made significant changes to the corporate law principles embodied in Act 1459;
confusion should be avoided.
3) Other relevant laws and regulations
a) SEC rules implementing the Corporation Code (indicated as appropriate in
this Outline)
b) Securities Regulation Code (SRC), RA 8799 (2000)5
c) PD 902-A as amended, the jurisdiction of the SEC (amended to a
significant extent by the SRC)
C. Definition and attributes of a corporation - Sec. 2, Corporation Code
Read: Aquino, pages 34-40
D. Advantages and disadvantages of the corporate entity
n. Classes of corporations
Campos, Vol. 1, Chapter 11, pages 43-49
A Private corporations formed under the Code

1) Stock corporations - Sec. 3, Code
2) Non-stock corporations - Sec. 3, 87, 88, Code
Collector v Club Filipino de Cebu, GR L-12719, 31 May 1962\
3) Close corporations - Sec. 96, Code
4) Educational -Sec. 106; 107, Code; see also RA. 7798
5) Religious; corporation sole-Sec. 109;110, Code
1 TEXTBOOK/REFERENCE
• Campos & Campos, Corporation Code of the Philippines, Volumes I and II (1990). Updates (laws
and regulations, Supreme Court decisions and other developments) are indicated in this Course
Outline and should be read together with the textbook.
• Aquino, Philippine Law Compendium, 2014 Edition, will also be used as reference for certain topics,
as indicated in the Course Outline.
2 Cases in Campos & Campos that are not included in this Outline are not required reading.
3 All references to sections in this Outline refer to provisions of the Corporation Code, unless there is a
reference to another statute or regulation
4 The Corporation Law is indicated in this Outline because certain cases refer to its provisions. BP 68 made
significant changes to corporate law principles in Act 1459. Confusion should be avoided.
s The SRC covers corporations that are "public" as defined in the law, and corporations whose shares are
listed and trade on a stod( exchange (PLCs).
2
B. Co~rations created by special law or charter - Sec. 4, Code;

Article XII, Sec. 16, 1987 Constitution
National Coal v Collector of Internal Revenue GR L-22619 2 Dec 1924
P~OC EDC v NLRC, GR 79182, 11 September 1991, 201 'scRA 487
Liban Gordon, et al., GR 175352, 18 January 2011, 639 SCRA 709 (Resolution
of motion for clarification/reconsideration of Decision dated 15 July 2009)
C. Domestic corporations v foreign corporations - Sec. 123, Code
D. Nationality and citizenship
Read Aquino, pages 80-90
1) Sec. 15, par. 11 , Code
2) Nationalized and partly nationalized activities - 1987 Constitution, Articles XII,
XIV and XVI
3) Control test; Grandfather rule
Nan-a Nickel v. Redmont Consolidated, GR 195580, 21 April 2014, 722 SCRA
382
Gamboa v Teves et al, G.R. No. 176579, 28 June 2011; see also SC
Resolution on Motions for Reconsideration, 9 October 2012, 682 SCRA 397
4) Corporations that are Philippine nationals
a) Sec. 3(a), Foreign Investments Act of 1991 (RA 7042)) as amended by
RA 8179
b) Rule I, Sec. 1(b), IRR of RA 7042
5) Others
a) Public corporations under SRC - Sec. 17.2(c), SRC; SRC Rule 3.1[L];[O]
b) Parent and subsidiary corporations; holding companies; affiliate companies
Ill. Formation and Organization of corporations under Corporation Code

Campos, Chapter 111, pages 50-136
A Who may form - Sec. 5, Sec. 10, Code

B. Steps in formation
1) Promotion
2) Articles of Incorporation
Sec. 14 - Contents
Sec. 15 - Form
a) Name
Sec. 14(1), Code; Sec. 18, Code
Red Une Transit v Rural Transit, GR 41570, 6 Sept 1934, 60 Phil 549
Universal Mills v Universal Textile Mills, GR L-28351, 28 July 1977; 78
SCRA 62
Philips Export v CA, G.R. 96161, 21 Feb 1992, 206 SCRA 457
Lyceum of Phil v CA, G.R. 101897, S March 1993, 219 SCRA 610
First Phil. Insurance v Hartigan, L-26370, 31 July 1970, 74 SCRA 252
PC Javier & Sons v CA, GR 129552, 29 June 2005, 46 SCRA 36
b) Purpose clause; primary purpose, secondary purpose
Sec. 14(2), Code; Sec. 17(2), Code
Sec. 88, Code (non-stock)
c) Principal office
Sec. 14, Code
SEC Memo Circulars No. 3, 16 Feb 2006; No. 6, 20 February 2014; and
No. 16, 13August2014
Clavecilla Radio v Antillon, L-22238, 18 Feb 1967, 19 SCRA 379
3
Hyatf Elevators v Goldstar, GR 161026 24 Oct 2005 473 SCRA 705

d) T erm - Sec. 11 ' '
e) ln_corporat~rs - Sec. 5, Code; Sec. 10, Code; Sec. 14[5]
f) Directors; incorporating directors
Sec._14(6) and 14[7], Code
9) Capital stock
Sec. 12, Code - minimum
Sec. 13, 14(8]; Sec. 15 [8th , 9th], Code- authorized, subscribed, paid-up6
Treasurer-in-trust (Sec. 15[10th))
Outstanding capital stock - Sec. 137
Non-stock - Sec. 14[9)
h) Classes of shares of stock (must be stated in AOI)
Sec. 6, Sec. 7, Sec. 8, Code
i) Other matters
(i) Compliance with nationality requirement - Sec. 15[11 111) , Code
(ii) Other matters not inconsistent with law - Sec. 14(10)
3) Articles of close corporations - Sec. 97, Code
4) Articles of special corporations - Sec. 106; 107; 108; 109, Code
5) Form of Articles - Sec. 15, Code
6) Accompanying documents
a) Treasurer's Affidavit - Sec. 15, Code
b) Recommendation of government agency (required for corporations
engaged in certain activities) - Sec. 17, last paragraph, Code
c) SEC Rules on Documentary Requirements for Registration of
Corporations and Partnerships (as of 30 June 2013) - available on SEC
website (under Guide to Registration)
7) Filing of Articles and payment of fees
8) Examination by SEC; grounds for rejection or disapproval - Sec. 17
9) Certificate of Registration; beginning of corporate existence - Sec. 19
C. De facto corporations -Sec. 20, Code
Municipality of Malabang v Benito, L-28113, 28 March 1969, 27 SCRA 533
Bergeron v Hobbs - see Campos, pages 94-98
Harill v Davis - see Campos, pages 98-103
Hall v Piccio, GR L-2598, 29 June 1950
0 . Corporation by estoppel - Sec. 21 , Code
Empire Manufacturing Company v Stuart- see Campos, pages 108-109
Lowell-Woodward Hardware Company v Woods, et al - Campos, pp 109-112
Asia Banking v Standard Products, GR 22106, 11 Sept 1924, 46 Phil 145
Salvatieffa v Garlitos, et al, GR L-11442, 23 May 1958, 103 Phil 757
Albert v University Publishing, GR L-19118, 30 Jan 1965, 13 SCRA 84
Chiang Kai Shek School v CA, GR L-58028 18 April 1989, 172 SCRA 389
E. Non-use of corporate charter; continuous inoperation - Sec. 22, Code
F. Internal organization of corporation
1) By-Laws
a) Adoption - Sec. 36(5), Sec. 46, Code
b) Contents - Sec. 47, Code
c) Amendment; delegation of power to amend - Sec. 48, Code
d) SEC approval - Sec. 46, Code
6
See Table in Aquino, pages 138-140, for minimum paid up capital of corporations engaged in different
kinds of business
4
Fleischerv Botica Nolasco, GR L-23241, 14 March 1925, 47 Phil 583

Loyola _ Grand Villas v CA, GR 117188, 7 Aug 1997, 276 SCRA 681
Sawadjaan v CA, GR 141735 8 June 2005 459 SCRA 516
2) Election of directors -Sec. 24, c~e '
3) Election of officers - Sec. 25, Code
4 ) Report of election of directors, trustees, officers - Sec. 26, Code
IV· The corporate entity

Campos, Volume I, pages 137-2397
Read also: Aquino, pages 40-73
A Separate corporate personality

B. Disregarding the corporate entity
Sulo ng Bayan v Araneta, L-31061, 17 August 1976, 72 SCRA 347
Gallagher v Germania Brewing - see Campos, pp 131-141
Stockholders of Guanzon & Sons v RD, GR L-18216, 30 Oct 1962, 6 SCRA 373
Caram v CA, L-48627, 30 June 1987, 151 SCRA 373
Palay Inc. v Clave, L-50076, 21 September 1983, 124 SCRA 640
Cruz v Dalisay, AM R-181-P, 31 July 1987, 152 SCRA 482
lndophil Textile Mill Worl<ers v Calica, GR. 96490, 3 Feb 1992, 205 SCRA 697
Child Leaming Center v Tagario, GR 150920, 25 Nov 2005,476 SCRA 236
Laguna Transportation v SSS, GR L-14606, 28 April 1960, 107 Phil 833
US v Milwaukee Refrigerator- see Campos, pp 151-153

Marvel Building Corp v David, GR L-5081, 24 Feb 1954, 94 Phil 376
Palacio et al v Fely Transportation, L-15121, 31 August 1962, 5 SCRA 1011
Tan Boon Hee & Co., L-41337, 30 June 1988, 163 SCRA 205
Garett v Southern Railway- see Campos, pp 200-203

PNB v. Ritratto Group, Inc., G.R. No. 142616, 31 July 2001, 362 SCRA 216
Jardine Davies, Inc. v JRB Realty, GR 151438, 15 July 2005, 463 SCRA 555
McConnell et al v CA, L-10510, 17 March 1961, 1 SCRA 721
La Campana Coffee Factory, Inc. v Kaisahan ng mga Manggagawa, GR L-5677,
25 May 1953, 93 Phil 160
De Leon et al v NLRC, GR 112661, May 30, 2001, 358 SCRA 274
Lipat v Pacific Banking, GR 142435, 30 April 2003, 402 SCRA 339
Claparols v Court of Industrial Relations, L-30822, 31 July 1975, 65 SCRA 613

Villa Rey Transit, Inc. v Ferrer, et al., L-23893, 29 Oct 1968, 25 SCRA 849
Nat'/ Federation of Labor Union v Opie, L-68661, 22 July 1986, 143 SCRA 125
Cease et al v CA, L-33172, 18 October 1979, 93 SCRA 483
Delpher Traders Corp v IAC, L-69259, 26 Jan 1988, 157 SCRA 349
Koppel (Phil) Inc. v Yatco, GR L-47673, 10 October 1946, 77 Phil 496

Commissioner v Norton & Harrison, GR L-17618, 31 Aug 1964, 11 SCRA 714
Liddell v Collector of Internal Revenue, L-9687, 30 June 1961, 2 SCRA 632
Yutivo v Court of Tax Appeals, L-13203, 28 January 1961, 1 SCRA 160
7
A num~r of_ cou~ deci~ions are taken up in Campos. For purposes of recitation only cases in
that are listed ,n this Outline will be taken up •
campos
5
:~~e et al Eacho - see Campos, PP 224-230

ey v Th,rd Avenue - see Campos, pp 230-235
C . Entitlement of corporation to moral damages

LBC Express, Inc. v CA, G.R. No. 108670 September 21, 1994, 236 SCRA 602
Al:_S_ CBN v CA, G.R. No. 128690, January 21, 1999, 361 SCRA 572
Filipmas Broadcasting Network v Ago Medical and Educational Center, GR
141994, 17 January 2005, 448 SCRA 413
D. Entitlement to constitutional guarantees; criminal liability; civil liability for tort

Stonehi/1 v Diokno, GR L-19550, 19 June 1957
PNB v CA, GR L-27155, 18 May 1978
V. Promoters contracts prior to incorporation

Campos, Vol. 1, ChapterV- pages 241-281
A Liability of corporation for promoter's contracts

Mc Arthur v Times Printing - Campos, pages 242-244
Cagayan Fishing Dev. Co. v Sandiko, GR L-43350, 23 December 1937
B. Corporate rights under promoter's contracts
Builders' Duntile Co. v Dunn Manufacturing, Campos, pages 253-255
Rizal Light and Ice Co. v Public Service Comm., L-20993, 25 SCRA 285 (1968)
C. Personal liability of promoter on pre-incorporation contracts
D. Fiduciary relationship between corporation and promoter
VI. Corporate Powers

Campos, Corporation Code, Vol. 1, Chapter VI , pages 282-339
A Corporate Powers
1) General - Sec. 36, Code
E.B. Villarosa & Partner Co. v Benito, GR 136426, 6 Aug 1999, 312 SCRA 65
DBP v CA, GR 147217, 7 October 2004, 440 SCRA 200
SSS v COA, GR 149240, 11 July 2002, 384 SCRA 548
Tam Wing Tak v Makasiar, GR 122452, 29 January 2001, 350 SCRA 475
2) Express, implied, incidental
3) Ultra vires acts - Sec. 45, Code
Republic v Acoje Mining, GR L-18062, 28 February 1963, 7 SCRA 361
Teresa Electric & Power v PSC, GR L-21804, 25 Sept 1967, 21 SCRA 198
National Power v Vera, GR 83558, 27 Feb 1989, 170 SCRA 721
Carlos v Mindoro Sugar Co., 57 Phil 343 (1932)
Government v El HogarFilipino, GR L-26649, 13 July 1927 50 Phil 1927
Bissel v Michigan Southern - see Campos, pp 313-321 '
Pirovano et al v de la Rama Steamship Co., 96 Phil 335 (1954)
Harden et al v Benguet Consolidated, GR.37331, March 18 1933
B. Specific powers '
1) Extend or shorten corporate life- Sec. 37, Code
Alhambra Cigar v SEC, GR L-23606, 29 July 1968, 24 SCRA 269
I
6
2) Increase or de .
indebt d crease caprta/ stock; incur, create or increase bonded
. e ness - Sec. 38, Code
Ma~ngal & Company v Zamora, GR L-48237, 151 SCRA 355 (1987)
3
) Denial of pre-emptive right; denial - Sec. 39
4
) Sale or other disposition of assets (all or substantially all) - Sec. 40; Sec. 81
Islamic Directorate v CA, G.R. No. 117897, 14 May 1997, 272 SCRA 454
Edward J. Nell v Pacific Farms GR L-20850 15 SCRA 415 (1965)
5) Acquisition of its own shares - 'Sec. 41 , Cod~
a) Purpose
b} Retained earnings - see definition in SEC Memo Circular No. 11 , 5
December 2008
Steinberg v. Velasco, GR L-30460, 12 March 1929
6) Investment of corporate funds in another corporation or business or other
purpose - Sec. 42, Code
Gokongwei v SEC et al., L-45911, 11 April 1979, 89 SCRA 336
7) Power to declare dividends - Sec. 43, Code
a) Unrestricted retained earnings
b) Types - cash, stock, property
c) Record date; payment date
d) Shareholders' approval of stock dividend - Sec. 43, Code
e) Limitation on retention of surplus profit- Sec. 43, Code . .
SEC Memo Circular No. 11 , 5 December 2008, Gutdehnes on the
Determination of Retained Earnings Available for Dividend Declaration
Madrigal & Company v Zamora, supra (GR 48237; 1987)
Nielson & Co. v Lepanto Consolidated, GR L-21601, 26 SCRA 540 (1968)
8) Power to enter into management contracts -Sec. 44,Code
VII. Control and management of the corporation

Campos, Volume 1, Chapter VII, 340-640
A The corporate hierarchy; allocation of power within the corporation

B. Board of Directors or trustees
1) Corporate powers exercised by Board - Sec. 23, Code
Ramirez v Orientalist Co. and Fernandez, GR 11897, 24 September 1918
Barretto v La Previsora Filipina, GR L-34719, 8 December 1932
Manila Metal Container v PNB, GR 166862, 20 Dec. 2006, 511 SCRA 444
2) Election of directors - Sec. 24, Code
a) Qualifications/disqualifications of directors
Detective & Protective Bureau v Cloribel, GR L-23428, 29 Nov. 1968, 26
SCRA225
Lee v Court of Appeals, G.R. 93695, 4 Feb 1992. 205 SCRA 752
Gokongwei v SEC et al., L-45911, 11 April 1979, 89 SCRA 336 (By-laws
can provide additional qualifications/disqualifications)
Independent directors (public companies) - Sec. 38, SRC
b) When elected; quorum required for election
c) Cumulative voting in stock corporations; in non-stock corporations _ Sec
24, Code .
d) Who can vote - Sec. 24; Sec. 57, Code
3) Term of office-Sec. 23; 92, Code
4) Removal of directors- Sec. 28, Code
Roxas v de la Rosa, L-26555, 16 November 1926, 49 Phil 609
7
5) Vacancies - Sec. 29 Code

Valle Verde CC v Ali '.
6) Meetings of the Boa~a, GR 151 969, 4 Sept 2009, 598 SCRA 202
a) Board must act as a bod
Tan et al vs . Y (collegial)
See also· yc,p et al., G.R. No. 153468, 17 August 2006, 499 SCRA 216
SCRA Lopez Realty v Fotencia, G.R. No. 76801, 11 August 1995, 247
183
b) Kinds of m
c) Wh
r .
ee ings, quorum - Sec. 25; 49, Code
~n a nd Where; Who presides - Sec. 53· 54 Code
d} N ot ice - Sec. 53, Code , ,
e) Quorum - Sec. 25, Code
f) Close corporations - Sec. 97, Code
Lopez V Ericta_, L-32991, 29 June, 1972, 45 SCRA 539
SEC Memo C1rc. 14, 20 Nov 2001 - meetings by teleconference
?) Compensation - Sec. 30, Code
Western Institute of Technology v Salas GR 113032, 21 August 1997, 278
SCRA 216 '
Central Cooperative v Tibe, GR L-27972, 30 June 30, 1970. 33 SCRA 596
Balletto v La Previsora Filipina, GR 34719, 8 December 1932
Fogelson v American Woolen, 170 F. 2d 660, 1ONov 1948; see Campos, pages
712-716
8) Executive committee- Sec. 34, Code
Filipinas Port Services vGo, G.R. No. 161886, 16 March 2007, 518 SCRA 453
9) Board committees
C . Corporate officers and agents
1) Minimum set of officers - Sec. 25, Code
2) Qualifications and disqualifications - Sec. 25; 27, Code
3) When elected; report of election - Sec. 25; 26, Code
4) Authority; liability of corporate officers
Raniel v Jochico, G.R. No. 153413, March 2, 2007, 517 SCRA 221
Fortune Cement v NLRC, G.R. No. 79762, January 24, 1991
Yu Chuck v Kong Li Po, L-22450, 3 December 1924, 46 Phil 608
Board of Liquidators v Heirs of Ka/aw, GR L-18805, 14 August 1967, 20 SCRA
987
Zamboanga Transportation v Bachrach Motor, G.R. L-27694, 24 Oct. 1928
Acuna v Batac Producers, GR L-20333, 30 June 1967, 20 SCRA 526
Yao Ka Sin Trading v CA, GR L-53820, 15 June 1992, 209 SCRA 763
Lopez Realty v Fotencia, G.R. No. 76801, 11 August 1995, 247 SCRA 183
Pua Casim v Neumark & Co., GR L-21644, 2 October 1924
Francisco v GSIS, G.R. No. L-18287, 30 March 1963. 7 SCRA 557
Buenaseda v Bowen & Co., G.R. L-14985, 29 December 1960
Tramat Mercantile v CA, G.R. No. 111008, 7 November 1994, 238 SCRA 14
WPP Marketing v Ga/era, G.R. No. 169207, March 25, 2010
D. Stockholders or members
1) Right to vote - Sec. 6; 24, 51; 55; 56; 57; 89, Code
Gok<_Jngwei v SEC, et al. , supra - shareholder has no vested right to be elected
as director
2) Other proprietary rights of shareholders
Right to dividends
Appraisal right
Right to inspect corporate records
8
Pre-emptive right
3) Stockholders' or members' .
4) Quorum - Sec. 52, Code meetings-Sec. 50, 51 , 93, Code
Johnston et al v Johnston et I
Appeals case - see Campa a ·, 61 O.G. No. 39, 6160 (1965) - Note: Court of
5) Where no meeting called - s, pages 424-432
6) When shareholders' vote _Sec. 5o, Code: Sec. 5(k), SRC; Sec. 6(f)
have the right to vote _ S rs neccessary; rnstances when non-voting shares
a) El cf ec. 5 , ode
e ion of directors - Sec. 24 92 C d
b} Removal of directors_ Sec.
c) Any amendment to art" 1
28,c'oo~
f·
e
d) Ad f f rc es o incorporation - 2/3 of outstanding capital
op ion o or amendment to By-Laws - majority vote
e) Sale of all or substantially all assets· creation of bonded indebtedness -
213 of outstanding capital '
f) Investment of corporate funds in business other than the primary purpose
- 2/3 of outstanding capital
g) Denial of pre-emptive right - 2/3 of outstanding capital; Sec. 39
h) Stock dividends -2/3 of outstanding capital; Sec. 43
i) Management contracts - majority vote; 213 vote; Sec. 44
j) Merger and consolidation - 2/3 of outstanding capital - Sec. 77
k) Voluntary dissolution - 2/3 vote; Sec. 118-119, Code
7) Appraisal right - Sec. 81 - 86, Code
a) Corporate acts that give rise to appraisal right - Sec. 81 ; Sec. 37; Sec. 40;
42; Sec. 76, Code
b) How right is exercised - Sec. 82, Code
c) Effect of demand for appraisal - Sec. 83, Code
Turner v Lorenzo Shipping, GR 157479, 24 November 2010, 636 SCRA 13
E. Devices affecting control
1) Proxy - Sec. 58, Code
Proxy rules - SEC Memo Circular No. 5, series of 1996
Special rules for publicly listed companies - SRC Rule 20 (IRR of SRC)
Alejandrina v De Leon, GR 49043 (1943) - Campos, pages 530-540
Campbell v Loew's, 134 A. 2d 852 (portion of case at pages 540-546, Campos,
Vol. 1)
Rosenfeld v Fairchild Engine & Airport, 309 N. Y. 168, 128 N.E. 2d 291 (see
Campos, Vol. 1, pp 546-556)
2) Voting trust - Sec. 59
Nat'/ Investment and Dev. Corp v Aquino, L-34192, 163 SCRA 153 (1988)
Lee v Court of Appeals, G.R. 93695, 4 February 1992, 205 SCRA 752
3) Pooling and voting agreements
Sec. 100, Code (close corporations)
E.K. Buck Retail v Harkert - Campos, pages 602-612
McQuade v Stoneham, 263 N. Y. 323, 189 NE 234-Campos, pp 612-616
Clark v Dodge- Campos, pages 616-620
4) Cumulative voting-see Sec. 24, Code
5) Classification of shares - see Sec. 6, Code
6) Restrictions on share transfers
7) Prescribing qualifications of directors; Founders' sha _S
8) Management contracts - Sec. 44, Code res ec. 7
9) Unusual voting requirements
9
'
""'· Duties of directors and co .
Campos, Vol. 1, Chapter Vll~trolhng shareholders
A . The 3-fold duties of . • pa_g e_~ 641-780
B. Liability of directorsdtectors. diligence, loyalty and obedience
C. Duty of diligence· th ' ~US\~es, officers - Sec. 31 , Code
Ot · p, ' e usiness Judgment Rule
St~~~ergen~s~vlania Railroad, Campos, pages 643-650
. · e asco, GR L-30460, 12 March 1929
M_0 n!elibano v Bacolod Murcia, GR 15092 5 SCRA 36 (1962)
Litwm Rosemarin v Allen, Campos, pages' 654-664
Walker v Man, Campos, pages 664-666
Barnes v Andrews, Campos, 670-675
Bat~s v Dresser, 251 U.S. 524, /. Ed. 388; Campos, Vol. 1, pp. 682-686
S!'Tlit~ v. Van Gorkom 488 A.2d 858 (Del. 1985)
D. F1duc1ary duties
Gokongwei v SEC et al., L-45911, 11 April 1979, 89 SCRA 336
San Miguel v Kahn, G.R. No. 85339, 1 August 1989, 176 SCRA 44 7
Strong v Repide, 213 U.S. 419 (May 3, 1909)
E. Conflict of interest: Self-dealing director - Sec. 32
Related party transactions
Pa/ting v San Jose Petroleum, GR L-14441, 17 December 1966
Prime White Cement v /AC GR L-68555 19 March 1003. 220 SCRA 103
Mead v McCullough, G.R. No. 6217, 26 December 1911
F. Conflict of interest: Interlocking directors - Sec. 33, Code
G. Conflict of interest: seizing corporate opportunity- Sec. 34, Code
H. Using insider information - Sec. 27, SRC; Sec. 23, SRC
I. Duty of controlling shareholder - Campos, pages 771-772
lnsuranshares Corp. v Northern Fiscal Corp., Campos, pages 773-780
IX. Right of inspection

Campos, Vol. 1, Chapter IX, pages 781-818
A. Corporate books and records-Sec. 74; Sec. 75, Code

B. Stock and transfer book; transfer agent- Sec. 74, Code
Lanuza v CA, GR 131394, 28 March 2005
C. Extent of and limitations on right of inspection - Sec. 74
1) Limitations as to time and place
2) Purpose
D. Liability for refusal - Sec. 74, Code
Pardo v H_ercules Lu'!!b~r, G.R. No. L-22442, August 1, 1924

W. G. Philpotts v Phil1ppme Manufacturing L-15568 a N
Veraguth v lsabela Lumber. G R No L 37, t 'b ovember 1919
' · · ·
Gonzales~ PNB, G.R. No. L-33320, May 30,
- 064 0 c o er 4 1932
,
1983
Gokongwe1 v SEC et al., L-45911 1 1 A ril
Republic v Sandiganbayan, G.R. No 8
.
C 1979 8
809 1
, 9 SCRA 336
, 0 July 1991, 199 SCRA 39
X. Derivative suits
Campos, Vol. 1, Chapter X, 819-876
A . Nature and basis
'
10
B. Requirements
Pascual v Orozco GR L 5174
Everett v Asia Ba~k.· - , 17 March 1911
Bitong v CA, GR 12 ';ff 0
; i3,JGR L-25241, 3 November 1926
Filipinas Pi . 5 ' uly 1998, 292 SCRA 503
Liken v Sh~~ Secrv,ces v Go, G.R. No. 161886, 16 March 2007, 518 SCRA 453
. "er, ampos, pages 835-840
Evange_llsta v Santos, GR L-1721, 19 May 1950
Republic v Cuademo, GR L-22399, 30 March 1967, 19 SCRA 671
Reyes V Tan, GR L-16982, 30 Sept 1961, 3 SCRA 198
Chase v CF/ of Manila, GR L-20457, 18 SCRA 602 (1966)
Gamboa v Victoriano, L-40620, 90 SCRA 40 (1979)
Western Institute of Technology v Salas, GR 113032, 278 SCRA 216
Chua v CA, GR 150793, 19 November 2004, 443 SCRA 259
XI. Financing the corporation
A. Sources of financing
Campos, Vol. 2, pages 1-38
8 . Shares of stock; kinds - Sec. 6, Code
1) Common
2) Preferred
a) Preference as to dividends . . .
(i) Participating and non-part1c1~at1ng
{ii) Cumulative and non-cumulative
- Discretionary
- Mandatory
- Earned cumulative or dividend credit
b) Voting rights
c) Preference upon liquidation
d) Preferred stockholder not a creditor
Ellingwood v Wolf's Head Oil, Campos, Vol. 2, pp 12-17
Hay v Hay, see Campos, Vol. 2, pp. 17-27
Augusta Trust v. Augusta, Hallowell & Gardiner Railroad, Campos, Vol. 27-29
Garcia v Lim Chu Sing, GR L-39427, 24 February 1934
see also: Philippine Coconut Producers Federation (COCOFED) et al. v
Republic, G.R. Nos. 177857-58) Resolution dated 17 September 2009 re
conversion of common shares to preferred shares
3) Par or no par shares - Sec. 14(7), Code
4} Treasury shares -Sec. 9; 43; 137; 57, Code
Review: power to acquire its own shares, Vl(C)(5) of this outline
5} Redeemable shares - Sec. 8, Code
6} Founder's shares - Sec. 7, Code; Campos, Vol. 1, pp 625-626
7} Doctrine of "equality of shares"
c. Subscription contract
Sections 13, 60, 61, 66, 80, Code
1) Pre-i~corporati~n subscription contract _ Sec. 60 Cod
2) Post-,ncorporat,on - Sec. 61, Code ' e
3} Interest on unpaid subscription_ Sec. 66
11
4 Rights of unpaid sha

Lmgayen Gulf Elect . res - Sec. 80, Code
of othe h nc v Baltazar GR L 624
. r s areholders to rele ' - _ 4, 30 June 1953 (unanimous consent
creditors of corporation) ase subscriber from obligation cannot prejudice
D. Pre-emptive right - Sec. 39· Ca
S tokes v Continental Cam ' mpos, Vol. 2, pages 52-58; pages 62-63
Fuller v Krogh Campo Vi~os, Vol. 2 pages 64-72; see note at pages 72-73
Benito v SEC 'GR s, o · 2, pages 75-78
G L-56655, July 25, 1983, 123 SCRA 722 (1983)
Dee v SEC
Note: Benito
E. Debt securities
a~t:e
502, GR 63~22 July 16, 1991, 199 SCRA 241 (1991)
cases decided under old Corporation Law
F. Securities Regulation Code (SRC)
1) Wh~t are_ securities - Sec. 3.1 ,SRC
2) Reg1strat1on of securities_ Sec. 8 , SRC
3
) Exempt securities and exempt transactions - Sec. 9, Sec. 10, SRC
XII. Consideration for issuance of shares of stock corporations

A Form of consideration - Sec. 62, Code
National Exchange Co. v Dexter, GR L-27872, 25 February 1928
B. Watered stock; liability of directors for watered stock - Sec. 65, Code
Triplex Shoe Co. v Rice & Hutchins Inc., Campos, Vol. 2, pp 149
McCarty v Langdeau, Campos, Vol. 2, pp 149-152
Rhode v Dock-Hop Company, Campos, Vol. 2, pages 152-158
C. How payment of subscriptions enforced
1} When balance on subscription payable - Sec. 13, Code
2) Payment of balance of subscription - Sec. 67, Code
3} Delinquency sale - Sec. 68; 69, Code
4} Recovery of unpaid subscription - Sec. 69; 70, Code
Velasco v Poizat, GR L-11528, 15 March 1918
Miranda v Tarlac Rice Mill, GR L-35961, 2 December 1932
De Silva v Aboitiz & Co., Inc., GR L-19893, 31 March 1923
National Exchange Co. v Dexter, GR L-27872, 25 February 1928
Luman/an v Cura, GR L-39861, 21 March 1934
PNB v Bitulok Sawmill, GR L-24177-85, 29 June 1968, 23 SCRA 1366 (1968)
Garcia v Suarez, GR 45493, 21 April 1939
5} Effect of delinquency - Sec. 71 , Code
D. Unpaid but non-delinquent subscriptions
1) Rights - Sec. 72, Code
2) Interest on unpaid subscription - Sec. 62, Code
3) Issuance of certificate of stock - Sec. 63; 64, Code
Fua Cun v Summers, G.R. No. L-19441, 27 March 1923
Baltazar v Ungayen Gulf Electric, GR l-16236, 14 SCRA 522 (1965)
Nava v Peers Marketing, l-28120, 74 SCRA 65 (1976)
E. Certificate of stock - Sec. 63; 67, Code
XIII. Dividends and purchases by corporation of Its own shares

Campos, pages 209-261
A Form of dividends - Sec. 43, Code

1) Cash
2) Stock
r 3) Property
12
Nielson & Co v L t . o
2008
nd
°
B. Sources of d : .d epan Consolidated, GR L-21601, 28 Dec 1968; 26 SCRA 54
• _IVI e s - Sec. 43, Code; SEC Memo Circular No. 11, 5 De~mber
nd
I ' G~idehnes on the Determination of Retained Earnings Available for Divide
D ecarat,on
B~rks Bro_adcasting v Craumer- Campos, pp 218-221
Lich v ':)nited States Rubber, Campos, Vol. 2, pp 222-232
C. Authonty to declare dividend - Sec. 43, Code
Keough v St. Paul Milk Co., Campos, Vol. 2, pp 23~239
Dodge Ford Motor Co., Campos, pp. Vol. 2, 239--243
D. When nght to dividends vests; rights of transferee
McLaran v Crescent Planning Mill Co., Campos, Vol. 2, pp 251-256
E. Liability for illegal dividends
F. Purchase by corporation of its own shares - Sec. 41 , Code
XIV. Amendments of charter

Sections 16; 11 ; 17; 36; 37; 38; 145, Code
A Power to amend articles of incorporation

B. Grounds for rejection by SEC
C. Effectivity of amendment
D . What cannot be amended
E. Special amendments
1) Increase or decrease of capital stock - Sec. 38; Sec. 122
Philippine Trust Co. v Rivera, GR l -19761, ~9 January 1923 8-
Hartford Accident & Indemnity Co. v W S. Dickey Clay Mfg, Campos, 26 274
Marcus v RH Macy & Co., Campos, pp 274-277
Keller v Wilson & Co., Campos, pp 277-283
2) Corporate term - 11 ; 37; 81 , Code
Recall: Alhambra Cigar v SEC, GR L-23606, 29 July 1968, 24 SCRA 269
3) Close corporations - Sec. 16; 17; 37; 38; 103
xv. Transfer of shares

A Manner and effectivity of transfer - Sec. 63, ~od~ t b k

1) Endorsement of stock certificate; registration m corpora e oo s
2) Effect of lack of registration
3) Unpaid shares cannot be transferred; assignment of subscription
4) Remedy if registration refused
Uson v Diosomito, GR No. L-42135, 17 June 1935

Montserrat v Ceron, G.R. No. 37078, 27 September 1933
Embassy Farms v CA, G.R. No. 8068213 Aug. 1990, 188 SCRA 492
Razon v /AC, G.R. No. 74306, 16 March 1992, 207 SCRA 234
Rural Bank of Salinas v CA, GR No. 96674, 26 June 1992, 210 SCRA 510
Rural Bank of Lipa v CA, GR No. 124535, 28 Sept 2001, 366 SCRA 188
Tan V SEC, G.R. No. 95696, 3 March 1992, 206 SCRA 740
Tay v CA, G.R. No. 126891, 5 August 1998, 634 SCRA 293
Nava v Peers Marketing, G.R. No. L-28120, 25 Nov 1976, 74 SCRA 65
Lee Won v Wack Wack Golf & Country Club, GR No. L-10122, 30 August 1958
13
5) Restrictions on transfers
~J~ene~a! rule: free transferability of shares
Pad estnct1ons; validity; requirements
Rec~;~ ~abcock & Templeton, GR No. 38684. 21 December 1933
· _e ,scher v Botica Nolasco, supra.
Allen v Bi!tmore Tissue Corp, Campos, Vol. 2, pp 337-341
6) Unauthonzed transfers
Santamaria v Hong Kong Shanghai, G.R. No. L-2808, 31 August 1951
Delos Santos v Republic & McGrath, GR No. L-4818, 28 February 1955
7) Collateral transfers
Chua Guan v Samahang Magsasaka, Inc., GR L-42091, 2 November 1935
8) Non-stock corporations - non-transferability of membership
XVI. Dissolution
Campos, Vol. 2, pp 367- 438
A. Causes of Dissolution
1) Expiration of corporate term
2) Shortening of corporate term
3) Voluntary dissolution
a) Where no creditors affected - Sec. 117; 118, Code
b) Where creditors affected- Sec. 117; 119, Code
4) Failure to organize; continuous inoperation - Sec. 22, Code
5) Involuntary dissolution
Government v Philippine Sugar Estate Co., GR L-11789, 2 April 1918
Government v El Hogar Filipino, GR l-26649, 13 July 1927, 50 Phil 1927
Republic v Security Credit, GR 20583, 23 January 1967, 19 SCRA 59
Republic v Bisaya Land Transportation, L-31490, 6 Jan 1978, 81 SCRA 9
6) Dissolution by minority in close corporations - Sec. 105, Code
Financing Corporation v Teodoro, G.R. No. L-4900, 31 August 1953
8 . Effects of dissolution; winding up and liquidation - Sec. 122, Code
1) Loss of juridical personality
Buenaflor v Camarines Sur Industry, GR 14991-14994, 30 May 1960
National Abaca v Pore, GR L-16779, 16 August 1961; 2 SCRA 989
Cebu Port Labor Union v State Marine, GR L-9350, 20 May 1957
Gonzales v Sugar Regulatory Administration, G.R. No. 84606, 28 June 1989,
174 SCRA 377
2) Methods of liquidation
3) Distribution of assets after payment of debts
Sumera v Valencia, GR 45485, 3 May 1939
Gelano_ v CA, 1981, GR L-39050 24 February 1981, 103 SCRA 90
Repu~l,c v M_arsman ~v~lopment, L-18956, 27 April 1972, 44 SCRA 418
Tan T1ong 810 v Comm1ss10ner, GR L-15778 23 April 1962
Chung Ka Bio v !AC, GR 71837, 26 July 1988, 163 SCRA 534
Cle~~nte v CA, G.R. No. 82407, 27 March 1995, 242 SCRA 717
MaJority Shareholders of Ruby Industrial Corporation v Lim GR Ni
and 165929, 6 June 2011, 650 SCRA 461 , os. 165887
4) Distribution of assets of non-stock corporations _ Sec.
94
XVII. Corporate combinations
14
A. Purposes of combinations; methods

B. Merger and consolidation
Campos, pp. 440-448
1) Requirements
Sec. 76; 77; 78; 79,Code
2) Effects
Sec.80,Code
C. Sale of all or substantially all corporate assets
Campos, pages 463-468; Sec. 40, Code
Reyes v Blouse, GR L-4420, 19 May 1952
Edward J. Nell v Pacific Farms, GR 20850, 29 Nov 1965; 15 SCRA 415
D. Taxation - Sec. 40(C)(2), NIRC
E. Philippine Competition Act (RA 10667), Sections 16-23
XVIII. Foreign corporations

Campos, Vol. 2, pp 483-606
Sec. 123 to 135, inclusive, Code
A. Definition of foreign corporation - Sec. 123, Code

a) Jurisdiction where incorporated
b) Reciprocity requirement
B. Requisite for doing business in the Philippines - Sec. 123, Code'
C. What constitutes doing business; Effect of doing business without a license - Sec.
133, Code
Mentholatum Co. v Mangaliman, GR L-47701, 27 June 1941, 72 Phil 525
Columbia Pictures v CA, GR 110318, 28 August 1996; 261 SCRA 144
Sec 3(d), Foreign Investments Act (FIA), RA 7042
Rule I, Sec. 1[f](1)-(8), FIA IRR
Le Chemise Lacoste v Fernandez, L-63796-97, 21 May 1984; 129 SCRA 377
Far East Int'/ Export v Nankai Kogyo, GR 13525, 30 Nov. 1962; 6 SCRA 725
Marshall-Wells Co. v Henry W Elser & Co., 46 Phil 71 (1924)
Top-Weld Manufacturing v ECED, SA, L-44944, 9 August 1985, 138 SCRA 120
Facilities Management Corporation v Leonardo de la Osa, L-38649, 26 March
1979; 89 SCRA 131 (insurance)
PB. Van Zuiden Bros. v GTVL Manufacturing Industries, GR 147905, 28 May
2007, 523 SCRA 233
Pacific Vegetable Corporation v Singzon, GR 7917, 29 April 1955
Aetna Casualty v Pacific Star Line, L-26809, 29 December 1977, 80 SCRA 535
Antam Consolidated v CA, L-61523, 31 July 1986, 143 SCRA 289, 57 Phil 607
Philippine Products Company v Primateria Societe Anonyme, GR 17160, 19
November 1965, 15 SCRA 301
Home Insurance v Eastem Shipping, GR 34382, July 20, 1983, 123 SCRA 424
Eriks PTE Ltd. V CA, GR 118843, 6 February 1997, 267 SCRA 567
fi~I::siness Holdings v Surecompsoftware BV, GR 173463, 13 Oct 201 o. 633
D. Intellectual Property Code-Sec. 77, 160, 231, RA 8293
8
Sections 124 to 126 of the Code detail the procedure for obtaining r . .
Philippines a icense to do business m the
14
A. Purposes of combinations; methods

B. Merger and consolidation
Campos, pp. 440-448
1) Requirements
Sec. 76; 77; 78; 79, Code
2) Effects
Sec. 80, Code
C. Sale of all or substantially all corporate assets
Campos, pages 463-468; Sec. 40, Code
Reyes v Blouse, GR L-4420, 19 May 1952
Edward J. Nell v Pacific Farms, GR 20850, 29 Nov 1965; 15 SCRA 415
D. Taxation - Sec. 40(C)(2), NIRC
E. Philippine Competition Act (RA 10667), Sections 16-23
xvm. Foreign corporations

Campos, Vol. 2, pp 483-606
Sec. 123 to 135, inclusive, Code
A. Definition of foreign corporation - Sec. 123, Code

a) Jurisdiction where incorporated
b) Reciprocity requirement
8 . Requisite for doing business in the Philippines - Sec. 123, Code' .
C. What constitutes doing business; Effect of doing business without a license - Sec.
133, Code
Mentholatum Co. v Mangaliman, GR L-47701, 27 June 1941, 72 Phil 525
Columbia Pictures v CA, GR 110318, 28 August 1996; 261 SCRA 144
Sec 3(d), Foreign Investments Act (FIA), RA 7042
Rule I, Sec. 1[f](1)-(8), FIA IRR
Le Chemise Lacoste v Fernandez, L-63796-97, 21 May 1984; 129 SCRA 377
Far East Int'/ Export v Nankai Kogyo, GR 13525, 30 Nov. 1962; 6 SCRA 725
Marshall-We/ls Co. v Henry W Elser & Co., 46 Phil 71 (1924)
Top-Weld Manufacturing v ECED, SA, L-44944, 9 August 1985, 138 SCRA 120
Facilities Management Corporation v Leonardo de la Osa, L-38649, 26 March
1979; 89 SCRA 131 (insurance)
P 8 . Van Zuiden Bros. v GTVL Manufacturing Industries, GR 147905, 28 May
2007, 523 SCRA 233
Pacific Vegetable Corporation v Singzon, GR 7917, 29 April 1955
Aetna Casualty v Pacific Star Line, L-26809, 29 December 1977, 80 SCRA 535
Antam Consolidated v CA, L-61523, 31 July 1986, 143 SCRA 289, 57 Phil 607
Philippine Products Company v Primateria Societe Anonyme, GR 17160, 19
November 1965, 15 SCRA 301
Home Insurance v Eastern Shipping, GR 34382, July 20, 1983, 123 SCRA 424
~i:.'
Eriks PTE ~td. V CA, GR 118843, 6 February 1997, 267 SCRA 567
::smess Holdings v Surecompsoftware BV, GR 173463, 13 Oct 201 o. 633
D. Intellectual Property Code - Sec. 77, 160, 231, RA 8293
8
Sections 124 to 126 of the Code detail the Procedure for obta · · -
Philippines ming a 1icense to do business in the
, 15
E. Resident Agent - Sec. 127 128 Code

F Laws 1· · ' '
. app icable to foreign corporations - Sec. 129 Code
G. Grounds for revo~tion of license - Sec. 134, Cod~
H. Withdrawal of foreign corporations -Sec. 136, Code
XIX. Close corporations

Sec. 96 to 105, Code
XX. Non-stock corporations
A. Definition - Sec. 87
Review: Collector v Club Filipino de Cebu, GR L-12719, 31 May 1962
B. Incorporation, board of trustees, meetings, right of members to vote
Review: Tan et al v Sycip et al., GR 153468, 17 August 2006, 499 SCRA 216
Sec.89, 92,93,Code
C. Membership
Sec. 90, 91 , Code
D. Distribution of assets
Sec. 94, 95
XXI. Special corporations; Miscellaneous provisions
A. Educational corporations
B. Religious corporations
C. Miscellaneous - Sec. 137 to 145, Code
Special Issues in International Law
Ricardo A. Sunga III1
ricardo_sunga@yahoo.com
2nd Semester 2017-2018

I. Description
This elective is a concentrated study of the following areas of international
law: a. International Criminal Law, in relation to R.A 9851; b. The Law of the
Sea, with a special interest in the Philippines as an archipelagic state; and c.
International Trade Law; with a focus on the regime of the World Trade
Organization.

II. Suggested References
Philip Alston and Ryan Goodman, International Human Rights (OUP, Oxford,
2013)
Joaquin Bernas, The 1987 Constitution of the Republic of the Philippines: A

Commentary (Rex Bookstore, 2009)
III. Grading System

} Participation 40%
◦ Report, Recitation and Surprise Quiz
} Midterm and Final Exams 60%

1
Ricardo A. Sunga III, BS ME (Ateneo de Manila University), LLB (University of the Philippines)
and LLM (University of New South Wales), is a Member and former Chair-Rapporteur of the
United Nations Working Group of Experts on People of African Descent, Special Procedures of the
United Nations, http://ohchr.org/EN/Issues/Racism/WGAfricanDescent/Pages/Members.aspx
and http://www.un.org/apps/news/story.asp?NewsID=54418#.V6U4jNJ97Mw viewed 6 August
2016. His research interests include the international human rights law on torture and enforced
disappearances. See, for example, Ricardo A. Sunga III, ‘The Committee on Enforced
Disappearances and Its Monitoring Procedures’ (2012), 17(1) Deakin Law Review 151, available at
http://www.deakin.edu.au/buslaw/law/dlr/docs/vol17-iss1/vol17-1-6.pdf, viewed 7 November
2012, ISSN 1 321-3660, Ricardo A. Sunga III, ‘On Locating the Rights of Lost’ (2012), 45(4) John
Marshall Law Review 1051, available at http://lawreview.jmls.edu/articles/show/54, viewed 22
November 2012, and Ricardo A. Sunga III, ‘Protecting the Children of the Lost’ (2012), 86(4)
Philippine Law Journal 796, available at http://plj.upd.edu.ph/protecting-the-children-of-the-lost/,
viewed 29 May 2013..

IV. Outline and Materials

A. International Criminal Law
1. Rome Statute, History and Part 1 (Court)
2. Rome Statute, Part 2 (Jurisdiction, Articles 5-21)
3. Rome Statute, Part 3 (Principles, Articles 22-33)
4. Rome Statute, Part 4 (Composition and Administration)
5. Rules of Procedure and Evidence, Elements of Crimes, and

Regulations of the Court, http://www.icc-
cpi.int/en_menus/icc/legal%20texts%20and%20tools/Pages/legal
%20tools.aspx, viewed 21 May 2014
6. Case: The Prosecutor v. Thomas Lubanga Dyilo, ICC-01/04-01/06, 14

March 2012
7. Case: The Prosecutor v Ahmad Al Faqi Al Mahdi, ICC-01/12-01/15, 27

September 2016
8. Cases:
Yamashita v Styer, G.R. No. L-129, 19 December 1945
Co Kim Chan v Valdez, G.R. No. L-5, 17 September 1945
Pimentel v Ermita, G.R. No. 164978, 13 October 2005
9. R. A. No. 9851
Materials:
Rome Statute of the International Criminal Court 1998,
opened for signature 17 July 1998, 2187 UNTS 3, entered
into force 1 July 2002
The Prosecutor v. Thomas Lubanga Dyilo, ICC-01/04-01/06,

http://www.icc-cpi.int/iccdocs/doc/doc1379838.pdf
viewed 30 May 2013

The Prosecutor v Ahmad Al Faqi Al Mahdi, ICC-01/12-01/15,
27 September 2016

Yamashita v Styer, G.R. No. L-129, 19 December 1945
Kuroda v Jalandoni, G.R. No. L-2662, 26 March 1949
Pimentel v Executive Secretary, G.R. No. 158088, 6 July

2007

R. A. No. 9851
Antonio Cassese, International Criminal Law (Oxford

University Press, 2003)
B. Law of the Sea
1. UNCLOS, Parts I and II (Introduction and Territorial Sea)
2. UNCLOS, Part IV (Archipelagic States)
3. UNCLOS, Part V (Exclusive Economic Zone)
4. UNCLOS, Part XV (Settlement of States)
5. UNCLOS, Annex VI (Statute of the ITLOS)
6. Rules of the Tribunal as amended,

https://www.itlos.org/index.php?id=12&L=0, viewed 21 May
2014
7. Case: In the Matter of the South China Sea Arbitration, before an
Arbitral Tribunal Constitutes under Annex VII to the 1982 United
Nations Convention on the law of the Sea, between the Republic of
the Philippines and the People’s Republic of China, PCA Case No.
2013-19, 12 July 2016
8. Case: Dispute Concerning the Delimitation of the Maritime

Boundary between Bangladesh and Myanmar in the Bay of Bengal
(Case No.16 of ITLOS)
9. Magallona v Ermita, G.R. No. 187167, 16 July 2011
10. R.A.. No, 9522 and R. A. No. 3046
Materials
United Nations Convention on the Law of the Sea, opened

for signature 10 December 1982, 1833 UNTS 3 (entered
into force 16 November 1994)

Case: Dispute Concerning the Delimitation of the Maritime
Boundary between Bangladesh and Myanmar in the Bay of
Bengal (Case No.16 of ITLOS)
http://www.itlos.org/fileadmin/itlos/documents/cases/ca
se_no_16/C16_Judgment_14_03_2012_rev.pdf viewed 30
May 2013.

Case: PCA Case Nº 2013-19, IN THE MATTER OF THE SOUTH
CHINA SEA ARBITRATION, before AN ARBITRAL TRIBUNAL
CONSTITUTED UNDER ANNEX VII TO THE 1982 UNITED
NATIONS CONVENTION ON THE LAW OF THE SEA, between,
THE REPUBLIC OF THE PHILIPPINES and THE PEOPLE’S
REPUBLIC OF CHINA

Magallona v Ermita, G.R. No. 187167, 16 July 2011
R.A.. No, 9522 and R. A. No. 3046

Merlin Magallona, Fundamentals of International Law (C & E
Pub, 2005)
C. International Trade Law
1. Agreement Establishing the World Trade Organization
2. Final Act Embodying the Results of the Uruguay Round of

Multilateral Trade Negotiations
3. Annex 2 Understanding on Rules and Procedures Governing the

Settlement of Disputes
4. Annex 3 Trade Policy Review Mechanism
5. Understanding the WTO: Settling Disputes (See Materials below),

in relation to United States v Philippines, DISPUTE DS403
6. Philippines v Thailand, Dispute Settlement Body
7. Tanada v Angara, G.R. No. 118295, 2 May 1997
Materials:
Agreement Establishing the World Trade Organization
Final Act Embodying the Results of the Uruguay Round of

Multilateral Trade Negotiations
Annex 2 Understanding on Rules and Procedures Governing

the Settlement of Disputes
Annex 3 Trade Policy Review Mechanism
United States v Philippines, DISPUTE DS403,

http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds
403_e.htm and
https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S006.a
spx?Query=(%40Symbol%3d+wt%2fds403%2f*)&Languag
e=ENGLISH&Context=FomerScriptedSearch&languageUICh
anged=true and
https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S006.a
spx?Query=(%40Symbol%3d+wt%2fds403%2f*)&Languag
e=ENGLISH&Context=FomerScriptedSearch&languageUICh
anged=true (For the decision on the appeal see the sixth
document on this page) viewed 31 May 2013.
Philippines v Thailand, Dispute Settlement Body
Tanada v Angara, G.R. No. 118295, 2 May 1997
Mitsuo Matsushita, The World Trade Organization: Law,

Practice and Policy (Oxford University Press, 2006)
Understanding the WTO: Settling Disputes,

http://www.wto.org/english/thewto_e/whatis_e/tif_e/disp
1_e.htm viewed 30 May 2013
De La Salle University
College of Law
Second Semester
SY 2017-2018
Land Titles & Deeds
By: Juan Arturo Iluminado C. de Castro, B.A., LL.B., LL.M., J.S.D.
Course Description:
This course introduces the student to the constitutional, statutory, and

jurisprudential principles of land ownership and the Torrens system. The course starts
with the fundamental principles of land ownership under the 1987 Constitution,
particularly within the context of the Regalian Doctrine and its Nationality Requirements.
After learning the basic principles, the class will go through the intricate details of the
Property Registration Decree and other relevant laws.
Teaching method:
Classes shall utilize the Socratic Method mainly discussing assigned cases with
the assumption that the students have read their assignments. Aside from lessons in
class, students will be guided to self-study through mid-term exam purely on codal
provisions. There will be a final exam, which can be waived if the student presents a
proposal prior to the mid-term exam, and submits a substantial legal paper prior to the
final exam.
Grading:
Class Recitation and Discussion – 30%

Mid-Term Exam – 30%
Final Exam or Paper – 40%
_________________
100%
Reading:
Readings indicated in this syllabus are mandatory. Discussion shall prioritize the cases
but be sure to read through the relevant statutes and to ponder on the points/questions
raised for each class. Bonus points shall be given to those who correlate each case
and/or statute.
Optional readings include: O.D. AGCAOILI, PROPERTY REGISTRATION DECREE AND RELATED
LAWS (2011); AQUINO, LAND REGISTRATION AND RELATED PROCEEDINGS (1997).
Class 1. Land Ownership in the Philippines
• La BugalB’laan vs. Ramos, G.R. No. 127882, January 27,2004, 421

SCRA 148, 184-193 (2004)
1
• Cruz vs. Secretary of Environment and Energy Resources, G.R.
135385, December 6, 2000.
• Carino vs. Insular Government, G.R. No. 2869, March 25, 1907; 212 US
449.
Points to ponder:
1. What came first: sovereignty or property rights?

2. What is the significance of the dates in the land registration laws?
Class 2. Land Ownership under the Philippine Constitution
• Article XII, sec. 2 of the 1987 Constitution

• Article XIII, sec. 1 of the 1935 Constitution; Article XIV, sec. 8 of the 1973
Constitution
• Legarda vs. Saleeby, G.R. No. L-8936, October 2, 1915.
• Krivenko vs. Register of Deeds, G.R. No. L-630, Nov. 15, 1947
• Chavez vs. Public Estates Authority, G.R. No. 133250, July 9, 2002.
• Republic vs. Marcos, G.R. No. L-29675. September 30, 1969, __ SCRA
___ [1969])
• Intestate Estate of Don Mariano San Pedro vs. Court of Appeals, G.R.
No. 103727, Dec. 1, 1996, 265 SCRA 733
• Republic vs. Court of Appeals and Baloy, G.R. No. L-46145, Nov. 26,
1986, 146 SCRA 15.
• Ayog vs. Cusi,GR No. L-46729, Nov. 19, 1982, 118 SCRA 492.
• Sta. Monica Industrial and Development Corp. vs. Court of Appeals, G.R.
No. 83290, Sept. 21, 1990, 189 SCRA 762
Points to ponder:
1. Compare and contrast the provisions on land ownership in the 1935, 1973 and
1987 Constitutions.
2. Why put deadlines at the pain of forfeitures?
Class 3: Torrens System
First Half
• Australian Dictionary of Biography, Torrens, Sir Robert Richard, available

at: http://adb.anu.edu.au/biography/torrens-sir-robert-richard-4739 (last visited
September 13, 2012).
• John L. McCormack, Torrens and Recording: Land Title Assurance in the
Computer Age, 18 Wm. Mitchell L. Rev. 61 (1992).
• O.D. AGCAOILI, PROPERTY REGISTRATION DECREE AND RELATED LAWS, 1-33
(2011)
• Property Registration Decee, sec. 113; AQUINO, LAND REGISTRATION AND
RELATED PROCEEDINGS 206-207 (1997)
• Alba vs. de la Cruz, G.R. No. L-5246, September 16, 1910
• Duran vs. Olivia, G.R. No. L-16589, September 29, 1961
2
Second Half Torrens System under the Philippine Government
• Pres. Dec. 1529, § 1-13

• Averia vs. Caguioa 146 SCRA 459 (1986)
• Batas Pambansa, Blg. 129, as amended by Rep. Act No. 7691, sec. 34;
Adm. Circular No. 6-93-A, November 15, 1995.
• O.D. AGCAOILI,supra at 34-51.
• Almirol vs. Register of Deeds of Agusan, 22 SCRA 1152 (1968)
• Balbin vs. Register of Deeds of Ilocos Sur, 28 SCRA 12 (1969)
• Republic vs. Alon, 199 SCRA 396 (1991)
• Republic vs. Heirs of Abrille, 71 SCRA 57 (1976); Pres. Dec. 1529, Sec.
17 & Pres. Dec. 239, July 9, 1973.
• Concepcion vs. Concepcion, G.R. No. 147928, Jan. 11, 2005, 448
SCRA 31
Class 4: Original Registration
• Property Registration Decree, sec. 14-22

• Civil Code, art. 1137, 1138, 457, 463, 461
• Binalay vs. Manalo, 195 SCRA 374 (1991)
• Republic vs. Court of Appeals, 73 SCRA 146 (1976)
• International Hardwood and Veneer Co. vs. UP, 200 SCRA 554 (1991)
• Palawan Agricultural and Industrial Co. vs Director of Lands, 44
SCRA 15 (1972)
• Director of Land Management vs. CA 205 SCRA 486
• Reyes vs. Sierra, 93 SCRA 472 (1979)
• Ramirez vs. CA, 144 SCRA 292 (1986)
• Kidpales vs. Baguio Mining Co., 14 SCRA 913 (1965)
• Director of Lands vs. IAC, 219 SCRA 399 (1993)
• Fewkes vs. Vasquez, 39 SCRA 514 (1971)
• Benin vs. Tuason, 57 SCRA 531 (1974)
Points to ponder: Differentiate between Original Registration, Cadastral Proceedings

and Judicial Confirmation of Title.
Class 5: Judicial Confirmation of Imperfect or Incomplete Title under the Public

Land Act
• Public Land Act (Com. Act 141), Chapter VIII & sec 48 (b), as amended
by:
§ Rep. Act No. 1942 (1957)
§ Rep. Act No. 3872 (1964)
§ Pres. Dec. 1073 (1977)
§ Rep. Act NO. 6236 (1971)
§ Rep. Act No. 6940 (1990)
• Lee Hong Hok vs. David, 48 SCRA 372 (1972)
• Director of Lands vs. Dano, 96 SCRA 161 (1980)
• Director of lands vs. Abairo, 90 SCRA 422 (1979)
• Republic vs. CA, G.R. NO. 103746, February 9, 1993
3
• Republic vs. CA, 235 SCRA 567 (1994)
• Director of Lands vs. IAC, 209 SCRA 214 (1992)
• Director of Lands vs. Intermediate Appellate Court and ACME, 146
SCRA 509 (1986); see contra Meralco vs. Castro-Bartolome, 114 SCRA
799 (1982)
• Natividad vs. Court of Appeals, 202 SCRA 439 (1991)
• Mindanao vs. Director of Lands, 20 SCRA 641 (1967)
• Director of Lands vs. CA, 106 SCRA 426 (1981)
Points to ponder: Compare and Contrast Original Registration, Cadastral Proceedings

and Judicial Confirmation of Imperfect or Incomplete Title.
Class 6. Registerable Properties
• Republic vs. Court of Appeals, 131 SCRA 532 (1984)

• Republic vs. Alagad, 169 SCRA 466 (1989)
• Water – Civil Code, art.502 (but see Water Code) (Optional Reading: De Castro,
Philippine Energy Law 105-113 (2012))
• Civil Code, art. 415, 420
• Ignacio vs. Director of Lands, 108 Phil 335 (1960)
• Municipality of Antipolo vs. Zapanta, 133 SCRA 820 (1984)
• Laurel vs. Garcia, 187 SCRA 797 (1990)
• Director of Lands vs. Aquino, 192 SCRA 296 (1990)
• Director of Lands vs. CA and Salazar, 133 SCRA 701 (1984)
• Republic vs. Maximo, 135 SCRA 156 (1985)
• Bureau of Forestry vs. CA, 153 SCRA 351 (1987)
• Heirs of Amunategui vs. Dir. of Lands, 126 SCRA 69 (1983)
• International Hardwood and Veer Co. vs. UP, supra
• Dir. of Forestry vs. Villareal, 170 SCRA 598 (1980)
• Atok Big Wedge Mining Co. vs. CA, 193 SCRA 71 (1991)
• Republic vs. Alagad, 169 SCRA 455 (1989)
• Rep. vs. vda. Del Castillo, 163 SCRA 286 (1988)
• Maristela vs. Director of Lands, G.R. No. 34901-R, September 7, 1968; 65
O.G. No. 46, pp 12744-12747
• Maneclang vs. IAC 161 SCRA 469 (1985)
• Republic vs. Marcos, 52 SCRA 283 (1973)
• Republic vs. October, 16 SCRA 848 (1966)
• Republic vs. Sangalang, 159 SCRA 515 (1988)
• Tan vs. Director of Forestry, 125 SCRA 302 (1983)
• Director of Lands vs. Rivas, 141 SCRA 329 (1986)
• Lahora vs. Dayanghirang, 37 SCRA 346 (1971)
• Rep. vs. CA, 132 SCRA 514 (1984)
Class 7. Procedure and Remedies
• Property Registration Decree, §23-34

• AQUINO, LAND REGISTRATION AND RELATED PROCEEDINGS, 46-88 (1997).
• Director of Lands vs. CA and Abistado, G.R. No. 102858, July 28, 1997, 27
SCRA 276.
4
• Republic vs. Manna Properties, Inc., G.R. No. 146527, Jan. 31, 2005, 450
SCRA 247 (2005)
• Escueta vs. Director of Lands, G.R. No. 5720, Aug. 20, 1910, 16 Phil 482.
• Lopez vs. De Castro, G.R. No. 112905, Feb. 3, 2000, 324 SCRA 591.
• Roxas vs. CA, G.R. No. 118436, March 21, 1997, 270 SCRA 309.
• Republic vs. Marasigan, G.R. No. 85515, June 6, 1991, 198 SCRA 219
• Roxas vs. Enruiquez, G.R. No. 8539, Dec. 24, 1914, 29 Phil 31.
• Adez vs. Court of Appeals, G.R. No. 100643, August 14, 1992, 212 SCRA 625.
• Adviento vs. Alvarez, G.R. No. 150844, August 20, 2008, 562 SCRA 434.
• Benin vs. Tuason, supra; contra De Luzurriaga vs. Republic G.R. No. 168848,
June 30, 2009, 591 SCRA 299.
• Ramos vs. Rodriguez, G.R. No. 94033, May 29, 1995, 244 SCRA 418.
• Republic vs. CA and Maxino, G.R. No. L-56077, Feb. 25, 1985, 135 SCRA
156.
• De Castro vs. Marcos, G.R. No. L-26093, Jan. 27, 1969, 26 SCRA 644
• Fernandez vs. Aboratigue, 36 SCRA 476 (1970)
• Miller vs. Director of Lands, 12 SCRA 292 (1964)
• Director of Lands vs. Santiago, 160 SCRA 186 (1988)
• Valisno vs. Plan, 143 SCRA 502 (1986)
• Republic vs. Lee, 197 SCRA 13 (1991)
• Laragan vs. CA, 153 SCRA 172 (1987)
• Director of Lands vs. Funtilar, 142 SCRA 57 (1986)
• Republic vs. de Porkan, 151 SCRA 88 (1987)
• Director of Forestry vs. Villareal, 170 SCRA 598 (1989)
• Republic vs. Bacus, 176 SCRA 376 (1989)
• Director of Land vs. Rivas,141 SCRA 329 (1986)
• Director of Lands vs. IAC, 214 SCRA 604 (1992); see contraRepblicvs Court
of Appeals, 131 SCRA 140 (1984)
• Realty Sale Enterprises vs. IAC, 154 SCRA 328 (1987)
Class 8. Mid-Term Exam.
Coverage: Purely codal provision on the Property Registration Decree, as amended
Class 9. Cadastral Registration Proceedings&Land Patents
First Half – Cadastral Proceeding
• Property Registration Decree, § 35-38

• Director of Land vs. Benitez, 16 SCRA 557 (1960)
• Valisno vs. Plan, supra
• Duran vs. Olivia, 3 SCRA 154 (1961)
• Gabriel vs. CA, 159 SCRA 468 (1988)
• Republic vs. Estenzo, 158 SCRA 282 (1988)
Second Half – Land Patents
• Property Registration Decree §103-106

• Kayaban vs. Republic, 52 SCRA 357 (1973)
5
• Ortegas vs. Hidalgo, 198 SCRA635 (1991)
• Franco vs. Exec. Sec. 145 SCRA 87 (1980)
• Gomez vs. CA, 168 SCRA 503 (1988)
• Gayapannao vs. IAC, 199 SCRA 309 (1991)
• Vallangca vs. CA, 173 SCRA42 (1989)
• Director of Lands vs. CFI Misamis Or., 135 SCRA 392 (1985)
• Director of Lands vs. CA, 17 SCRA 71 (1966)
• Domaoal vs. Bea, 130 SCRA 512 (1984)
Class 10 – Decree of Registration and Certificate of Title
• Property Registration Decree, § 31, 32, 39, 40-50

• Llaban vs. CA, 204 SCRA 887 (1991)
• Melgar vs. Pagayon, 21 SCRA 841 (1967)
• Gomez vs. CA, 168 SCRA 503 (1988); but see Ramos vs. Rodriguez, 244
SCRA 418 (1995)
• Phil. Trust Co. vs. CA, G.R. No. 150318, November 22, 2010
• Camper Realty Corp. vs. Maria NenaPajo-Reyes, G.R. No. 179543 October 6,
2010
• Heirs of Saves vs. Saves, G.R. No. 152866, October 6, 2010
• Court of Appeals vs. Veloso, G.R. No. 102737, August 21, 1996, 260 SCRA
593
• Spouses Aggabao vs. Sps. Dionisio, G.R. No. 165803, Sept. 1, 2010.
• Ponce de Leon vs. Rehabilitation Finance Corp., 36 SCRA 289 (1976)
• PNB vs. CA, 153 SCRA 435 (1987)
• Solid State Multi-Products Corp. vs. CA, 196 SCRA 630 (1991)
• Villanueva vs. CA, 198 SCRA 472 (1991)
• Avila vs. Tapucar, 201 SCRA 148 (1991)
• Foja Vs. Court of Appeals, 75 SCRA 441 (1977)
• Register of Deeds vs. PNB, 13 SCRA 46 (1965)
• Martinez vs. CA, 56 SCRA 647 (1974)
• Bornales vs. IAC, 166 SCRA 519 (1988)
• Arguelles vs. Timbancaya, 72 SCRA 193 (1976)
• Umbay vs. Alecha, 135 SCRA 427 (1985); but see Jimenez vs. Fernandez, 184
SCRA 190 (1990)
• Sotto vs. Teves, 86 SCRA 154 (1978)
• Toyota Motor Philippines Corp. vs. CA, G.R. No. 102881, Dec. 7, 1992
• Realty Sales Enterprises, Inc. vs. IAC, 154 SCRA 328 (1987)
• Albienda vs. CA, 135 SCRA 402 (1985)
• Republic vs. CA, G.R. No. 84966, Nov. 21, 1991
Class 11. Remedies
• Property Registration Decree, §32-34

• Baldoz vs. Papa,14 SCRA 691 (1965)
• Crisolo vs. Court of Appeals, 68 SCRA 435 (1975)
• Ramirez vs. CA, 144 SCRA 292 (1986)
6
• Nicolas vs. Director of Lands, 9 SCRA 934 (1963)
• Tiongco vs. de la Merced, 58 SCRA 89 (1974)
• Director of Lands vs. Abanzado, 65 SCRA 5 (1975)
• Municipality of Victorias vs. CA, 149 SCRA 32 (1987)
• Rodriguez vs. Toreno, 79 SCRA 356 (1977)
• Frias vs. Esquivel, G.R. No. L-24679, October 30, 1975
• Mindanao Development Authority vs. CA, 113 SCRA 429 (1982)
• Joaquin vs. Cojuangco, 20 SCRA 769 (1967)
• Pino vs. CA, 198 SCRA 434 (1991)
• People vs. Cainglet, 16 SCRA 749 (1966)
• Treasurer of the Philippines vs. Court of Appeals, 153 SCRA 359 (1987)
• Realty Sales Enterprises, Inc. vs. IAC, supra
• Mamadsul vs. Moson, 190 SCRA 82 (1990); Chacon Enterprises vs. CA, 124
SCRA 784 (1983)
• Faja vs. CA, 75 SCRA 441 (1977)
Class 12. Post-registration Petitions and Actions
First Half – Reconstitution of Title; Other petitions/actions after Original Registration
• Property Registration Decree, § 107-110; AQUINO, LAND REGISTRATION AND

RELATED PROCEEDINGS, 152-167 (1997)
• Republic Act No. 26; LRC Circular No. 35, June 13, 1983
• Heirs of Pedro Pinote vs. Dulay, 187 SCRA 12 (1990)
• Bunagan vs. CFI Cebu, 97 SCRA 72
• Office of the Court Administrator vs. Matas Adm. Matter RTJ-2-836, August
2, 1995, 247 SCRA 9
• Republic vs. Tuastumban, G.R. No. 173210, April 24, 2009, 586 SCRA 600
• Zafra vs. Caballes, G.R. No. L-5040, Sept. 29, 1953, 93 Phil 875
• Republic vs. IAC and Kiram, G.R. No. 68303, Jan. 15, 1988, 157 SCRA 62.
• Republic vs. IAC and Susukan, G.R. No. 71835, April 30, 1991, 196 SCRA 422
• Tahanan Dev. Corp. vs. CA, G.R. No. 55771, Nov. 15, 1982, 203 Phil 652
• Manotok vs. Barque, G.R. No. 162335, Dec. 18, 2008, 574 SCRA 468 (2008)
Second Half – Registration of Court Judgments and Orders and Related Processes of
Papers
• Property Registration Decree, § 78-92; AQUINO, LAND REGISTRATION AND RELATED

PROCEEDINGS, 201-204 (1997)
• Barcelona vs. Barcelona, G.R. No. L-9014, Oct. 31, 1956, 100 Phil 251
• Hernandez vs. Andal, G.R. No. L-273, March 29, 1947, 78 Phil 196
• Maglucot-aw vs. Maglucot 329 SCRA 78 (2000)
• Philippine Savings Bank vs. Lantin, 124 SCRA 476 (1983)
• Compare Act 1956, sec. 30 & 31 and Financial rehabilitation and Insolvency Act
of 2010 (FRIA)
• Rules of Court, Rule 67, sec. 13.
7
Class 13. Post registration Dealings with land
• Property Registration Decree, § 51-77; AQUINO, LAND REGISTRATION AND RELATED

PROCEEDINGS, 168-200 (1997)
• Gatioan vs. Gaffud, 27 SCRA 706 (1969)
• Campillo vs. PNB, 28 SCRA 220 (1969)
• Limketkai Sons Milling vs. CA, 250 SCRA 523 (1995)
• Guiang vs. Court of Appeals, 353 Phil 578 (1998); compare Felipe vs. Aldon,
205 Phil. 537 (1983)
• Guaranteed Homes, Inc. vs. Valdez, 577 SCRA 441 (2009)
• Agricultural Credit Cooperative Association vs. Yusay, 107 Phil 791 (1960)
• Gustilo vs. Maravilla, 48 Phil 442 (1926)
• Fernandez vs. CA, 189 SCRA 780 (1990)
• Fudot vs. Cattleya Land, Inc., G.R. No. 171008, Sept. 13, 2007, 533 SCRA 350
(2007)
• Unchuan vs. CA, G.R. No. 78775, May 31, 1988, 161 SCRA 710.
• Gurbaux Singh Pabla& Co. vs. Reyes, 92 Phil 177 (1952)
• Castillo vs. Escutin, G.R. No. 171056, March 13, 2009
• Montano vs. Francisco 594 SCRA 332 (2009)
• Garcia vs. CA, 95 SCRA 380 (1980)
• Sapto vs. Fabiana, 103 Phil 683 (1958)
• Rosales vs. Burgos, 577 SCRA 264 (2009)
• Fule vs. De Legare, 7 SCRA 351 (1963)
• Ching vs. Enrile, 565 SCRA 402 (2008)
• Francisco vs. CA, 153 SCRA 330 (1987)
• Jomoc vs. CA, 200 SCRA 74 (1991)
• Rufloe vs. Burgos, G.R. No. 143573, Jan. 20, 2009
• Bass vs. de la Rama, 73 Phil 682 (1952); But see Levin vs. Bass, 91 Phil. 419
(1952)
• Director of Lands vs. Reyes, 69 SCRA 415 (1976)
• DBP vs. Acting Register of Deeds of Nueva Ecija, 162 SCRA 450 (1988)
• PNB vs. Fernandez, 61 Phil 448 (1935)
• Martinez vs. Garcia, G.R. No. 166536, Feb. 4, 2010
• Carrascoso vs. CA, 47 SCRA 666 (2005) citing L.P. Leviste& Co. vs. Noblejas
89 SCRA 520
• Bernales vs. Sambaan, 610 SCRA 90 (2010); compare with Solivel vs.
Francisco, 170 SCRA 218 (1989)
• PNB vs. CA and Chu Kim Kit, 187 SCRA 735 (1990); compare with Adriano
vs. Pangilinan, 373 SCRA 544 (2002)
• Ruiz vs. Court of Appeals, 362 SCRA 40 (2001)
• Tiro vs. Philippine Estates Corp., 563 SCRA 309 (2008)
• Equatorial Realty Dev. vs. Frogozo, 426 SCRA 271 (2004)
• Rules of Court, Rule 14, sec. 24
• Cunanan vs. Jumping Jap Trading Corp. 586 SCRA 620 (2009)
• Portes vs. Arcala, 468 SCRA 343 (2005)
• Estella vs. Register of Deeds, 106 Phil. 911 (1960)
• Romero vs. CA, 458 SCRA 340 (2005)
• Villanueva vs. CA, 281 SCRA 298 (1997)
8
• Penullar vs. PNB, 105 Phil 127 (1983)
• Llanto vs. Alzona, 450 SCRA 288 (2005)
• Rural Bank of Compostela vs. CA, 271 SCRA 76 (1997)
• Gonzales vs. Intermediate Appellate Court, 157 SCRA 187 (1988)
• Cruz vs. Bancom Finance, 379 SCRA 490 (2002)
• What is a memorandum of encumbrances?
Class 14. Special Topics in Land Titles and Deeds
Condominium
• Sunset View Condo Corp. vs. Campos, 104 SCRA 295 (1981)
• First Marbella vs. Gatmaytan, 557 SCRA 155 (2008)
• Republic Act 4726 (1966)
• Is an individual foreigner allowed to own his/her own condominium unit?
Chattel Mortgage
• Producers Bank of the Philippines vs. Excelsa Industries 587 SCRA 370
(2009)What is the Blanket Mortgage Clause? Does it apply to Chattel
Mortgages? Why or why not?
Writ of Possession
• Factor vs. Martel, 543 SCRA 549 (2008)

• Act 3135, § 7
• Ramos vs. Manalac, 89 Phil 270 (1951)
• State Investments House vs. Court of Appeals, 215 SCRA 734 (1992)
• Metrobank vs. Bance, 553 SCRA 507 (2008)
• Top Art Shirt Manufacturing vs. Metrobank, 595 SCRA 323 (2009)
• Dayot vs. Shell Chemical Co., 525 SCRA 535 (2007)
• Bon-Mar Realty vs. de Guzman, 563 SCRA 737 (2008)
• Barican vs. IAC, 162 SCRA 358 (1988)
• Cometa vs. IAC, 151 SCRA 563 (1987)
• Sulitvs. CA, 268 SCRA 441 (1997)
• Vera vs. Agloro, 448 SCRA 203 (2005); compare with Active Wood Products
Co., Inc. vs. CA, 181 SCRA 774 (1990)
Class 15. Conclusion and Recap

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TAXATION I

Maria Theresa San Pablo - Llamado

Part 1: General Principles

A. Taxation and Tax defined.

B. Tax as distinguished from other forms of exactions (Vitug, p. 29-30)

5. Tax vs. Ordinary debt

II. THEORY AND BASIS OF TAXATION

C. Benefits-Protection Theory (Symbiotic Relationship)

III. PURPOSES/OBJECTIVES OF TAXATION

IV. GENERAL PRINCIPLES OF A SOUND TAX SYSTEM (Vitug, pp. 2-3)

V. SCOPE AND LIMITATIONS OF TAXATION (Vitug, pp. 3-24)

General Rule: Power to tax may not be delegated

Exceptions from prohibition against delegation of power to tax:

a) Delegation to Local Governments

Sec. 5, Art. X, Philippine Constitution

b) Delegation to the President

Sec. 28(2) Art. VI, Constitution

c) Delegation to Administrative Agencies

Sec. 2, Art. II Philippine Constitution

5. Exemption of Government Entities, Agencies, and Instrumentality

Sec. 27(C), NIRC

a. Prohibition against imprisonment for non-payment of poll tax: No

Community tax v. Poll tax

b. Uniformity and Equity in Taxation: The rule of taxation shall be

City of Baguio v. de Leon (25 SCRA 938)

Valid Classification of taxpayers/subject matter to be taxed

Pepsi Cola v. City of Butuan (24 SCRA 787)

c. Grant By Congress Of Authority To President To Impose Tariff Rates:

d. Prohibition Against Taxation Of Religious, Charitable Entities And

e. Prohibition Against Taxation Of Non-Stock, Non-Profit Institutions: All

Secs. 27(B) and 30(H) of NIRC

f. Majority Vote Of Congress For Grant Of Tax Exemption: No law

g. Prohibition On Use Of Tax Levied For Special Purpose: All money

h. President’s Veto Power On Appropriation, Revenue And Tariff Bills:

i. Non-impairment of Jurisdiction of the Supreme Court: The Supreme

j. Grant Of Power To LGUs To Create Its Own Sources Of Revenue: Each

2. Provisions indirectly affecting Taxation

Sec. 1, Art. III, Constitution

Sec. 5, Art. III, Constitution

c. Non-impairment of Obligations of Contracts.

Sec. 10, Art. III, Constitution

VI. STAGES OF TAXATION (Vitug, pp. 25-26)

B. Assessment and Collection

VII. KINDS OF TAXES (Vitug, pp. 26-31)

1. Personal, capitation or poll tax (e.g. basic community tax)

2. Property tax (e.g. realty tax)

3. Privilege tax (e.g. internal revenue taxes, customs duties)

1. Direct (e.g. income, estate and donor’s tax)

2. Indirect (e.g. excise, VAT)

1. General or Fiscal (e.g. income taxes)

2. Special, Regulatory or Sumptuary (e.g SEF under the LGC)

E. As to Scope or Authority to Impose

1. National – internal revenue taxes

2. Local – real property tax, municipal tax

1. Progressive (e.g. income tax)

VIII. DOCTRINES IN TAXATION (Vitug, pp. 39-48)

A. Prospectivity of Tax Laws

Secs. 203, 222, NIRC

C. Situs of Taxation (Vitug, p.10)

3. Constitutionality of Double Taxation

4. Tax Treaties (as Relief from Double Taxation)

E. Escape from Taxation

1. Shifting of tax burden