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G.R. No. L-35262
TodayisMonday,January16,2017
RepublicofthePhilippines
SUPREMECOURT
Manila
ENBANC
G.R.No.L35262March15,1930
THEPEOPLEOFTHEPHILIPPINEISLANDS,plaintiffappellant,
vs.
TANBOONKONG,defendantappellee.
AttorneyGeneralJaranillaforappellant.
AlejandrodeAboitizPinagaforappellee.
OSTRAND,J.:
This is an appeal from an order of the Judge of the Twentythird Judicial District sustaining to demurrer to an
informationchargingthedefendantTanBoonKongwiththeviolationofsection1458ofActNo.2711asamended.
Theinformationreadsasfollows:
Thatonandduringthefourquartersoftheyear1924,inthemunicipalityofIloilo,ProvinceofIloilo,Philippine
Islands,thesaidaccused,ascorporationorganizedunderthelawsofthePhilippineIslandsandengagedin
the purchase and the sale of sugar, "bayon," coprax, and other native products and as such object to the
payment of internalrevenue taxes upon its sales, did then and there voluntarily, illegally, and criminally
declarein1924forthepurposeoftaxationonlythesumofP2,352,761.94,whenintruthandinfact,andthe
accusedwellknewthatthetotalgrosssalesofsaidcorporationduringthatyearamountedtoP2543,303.44,
therebyfailingtodeclareforthepurposeoftaxationtheamountofP190,541.50,andvoluntarilyandillegally
notpayingtheGovernmentasinternalrevenuepercentagetaxesthesumofP2,960.12,correspondingto1
percentofsaidundeclaredsales.
Thequestiontobedecidediswhethertheinformationsetsforthfactsrenderingthedefendant,asmanagerofthe
corporationliablecriminallyundersection2723ofActNo.2711forviolationofsection1458ofthesameactforthe
benefitofsaidcorporation.Section1458and2723readasfollows:
SEC. 1458. Payment of percentage taxes Quarterly reports of earnings. The percentage taxes on
business shall be payable at the end of each calendar quarter in the amount lawfully due on the business
transactedduringeachquarteranditshallbeonthedutyofeverypersonconductingabusinesssubjectto
suchtax,withinthesameperiodasisallowedforthepaymentofthequarterlyinstallmentsofthefixedtaxes
withoutpenalty,tomakeatrueandcompletereturnoftheamountofthereceiptsorearningsofhisbusiness
duringthepreceedingquarterandpaythetaxduethereon....(ActNo.2711.)
SEC.2723.Failuretomaketruereturnofreceiptsandsales.Anypersonwho,beingrequiredbylawto
makeareturnoftheamountofhisreceipts,sales,orbusiness,shallfailorneglecttomakesuchreturnwithin
the time required, shall be punished by a fine not exceeding two thousand pesos or by imprisonment for a
termnotexceedingoneyear,orboth.
Andanysuchpersonwhoshallmakeafalseorfraudulentreturnshallbepunishedbyafinenotexceeding
tenthousandpesosorbyimprisonmentforatermnotexceedingtwoyears,orboth.(ActNo.2711.)
Apparently,thecourtbelowbasedtheappealedrulingonthegroundthattheoffensechargedmustberegardedas
committedbythecorporationandnotbyitsofficialsoragents.Thisviewisindirectconflictwiththegreatweightof
authority. a corporation can act only through its officers and agent s, and where the business itself involves a
violationofthelaw,thecorrectruleisthatallwhoparticipateinitareliable(GrallandOstrand'sCase,103Va.,855,
andauthoritiestherecited.)
IncaseofStatevs.Burnam(17Wash.,199),thecourtwentsofarastoholdthatthemanagerofadiarycorporation
wascriminallyliablefortheviolationofastatutebythecorporationthroughhewasnotpresentwhentheoffense
wascommitted.
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G.R. No. L-35262
Inthepresentcasetheinformationorcomplaintallegesthathedefendantwasthemanagerofacorporationwhich
wasengagedinbusinessasamerchant,andassuchmanager,hemadeafalsereturn,forpurposesoftaxation,of
thetotalamountofsalemadebysaidfalsereturnconstitutesaviolationoflaw,thedefendant,astheauthorofthe
illegalact,mustnecessarilyanswerforitsconsequences,providedthattheallegationareproven.
Therulingofthecourtbelowsustainingthedemurrertothecomplaintisthereforereversed,andthecasewillbe
returnedtosaidcourtforfurtherproceedingsnotinconsistentwithourviewashereinafterstated.Withoutcosts.So
ordered.
Johnson,Malcolm,Villamor,Johns,RomualdezandVillaReal,JJ.,concur.
TheLawphilProjectArellanoLawFoundation
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