Case Digest (G.R. No. L-20060)
Facts:
- Lilia de Jesus-Sevilla is the petitioner; the Collector of Internal Revenue is the respondent.
- In June 1954, Lilia met Jesus Sto. Tomas Cortes, a sports exhibition promoter.
- Cortes proposed staging bullfight exhibitions in the Philippines, citing potential profits.
- Lilia agreed to provide working capital, granting Cortes a special power of attorney on August 20, 1954.
- Cortes signed a contract with a Portuguese bullfight troupe on August 26, 1954.
- On October 10, 1954, Lilia and Cortes entered a Contract of Management, naming Cortes as promoter and Lilia as general manager.
- Lilia was responsible for arranging up to P100,000.00 in working capital and guaranteeing overdraft repayments.
- She also secured contracts for advertising and arena construction.
- Seven bullfight exhibitions occurred between December 31, 1954, and February 6, 1955, with Lilia managing finances and operations.
- The Collector of Internal Revenue assessed Lilia for P111,056.84 in amusement tax and a P600.00 penalty for not registering her books.
- Lilia's request for reconsideration was denied, leading to an appeal to the Court of Tax Appeals.
- On May 23, 1962, the Court affirmed the Collector's decision, excluding the penalty.
- The main issue was whether Lilia was the proprietor or operator of the exhibitions, making her liable for the amusement tax.
Issue:
- (Unlock)
Ruling:
- The Supreme Court affirmed the Court of Tax Appeals' decision, confirming Lilia de Jesus-Sevilla's liability for the amusement tax.
- The Court determined that Lilia's involvemen...(Unlock)
Ratio:
- The Court noted that Lilia's role was not limited to financial support; she actively managed and operated the exhibitions.
- The special power of attorney and the Contract of Management highlighted her significant involvement.
- Unlike the financier in Blaquera vs. Aldaba, Lilia undertook responsibilities such as securing contracts and overseeing operations.
- The M...continue reading
Case Digest (G.R. No. L-20060)
Facts:
The case involves Lilia de Jesus-Sevilla as the petitioner and the Collector of Internal Revenue as the respondent. The events leading to the case began in June 1954 when Lilia, a lawyer and businesswoman, was introduced to Jesus Sto. Tomas Cortes, a prominent promoter of sports exhibitions in the Philippines. Cortes proposed the idea of staging bullfight exhibitions in the country, highlighting its potential financial success. Lilia, unable to raise the necessary capital, agreed to provide the working capital for the venture. On August 20, 1954, she granted Cortes a special power of attorney to enter into contracts with the bullfight troupe from Portugal. Subsequently, on August 26, 1954, Cortes signed a bullfight contract with the troupe's representative.
On October 10, 1954, Lilia and Cortes entered into a Contract of Management, designating Cortes as the promoter and Lilia as the general manager. The contract stipulated that Lilia would arrange for a working capital of up to P100,000.00 and guarantee repayment of any overdrafts. Lilia also entered into contracts with Tabacalera for advertising rights and with Harry Lyons, Inc. for constructing the bullfight arena. Seven bullfight exhibitions were held between December 31, 1954, and February 6, 1955. Throughout this period, Lilia managed the financial aspects, including keeping accounts, printing tickets, and employing staff.
After the exhibitions, the Collector of Internal Revenue assessed Lilia for P111,056.84 in amusement tax and a P600.00 penalty for failing to registe...