Case Digest (G.R. No. L-21224)
Facts:
Republic of the Philippines v. Carmen Planas, G.R. No. L-21224. September 27, 1966, the Supreme Court En Banc, Barrera, J., writing for the Court.
The parties are the Republic of the Philippines as plaintiff-appellant and Carmen Planas (with Alto Surety & Insurance Co., Inc. as co-defendant in the later suit) as defendants-appellees. The dispute concerns enforcement of an assessment for alleged war profits tax and the alleged forfeiture of a surety bond given to guarantee payment.
On February 2, 1950, the Collector of Internal Revenue assessed Carmen Planas for war profits tax totalling P81,722.00. After reinvestigations requested by Planas, the Collector reduced the assessment to P47,847.15 on May 16, 1951. Planas sought administrative and judicial review: to the Secretary of Finance and then to the defunct Board of Tax Appeals in BTA Case No. 13. The BTA rendered a decision on May 29, 1952, modifying the Collector’s ruling. Planas appealed to the Supreme Court (G.R. No. L-5866), and on March 30, 1954, the appeal was dismissed “without prejudice” in light of the Court’s ruling in U.S.T. v. Board of Tax Appeals (G.R. No. L-5701).
The Republic later sought execution of the BTA decision in the newly-created Court of Tax Appeals on September 9, 1958; that execution order was annulled by this Court in G.R. No. L-15934 (October 31, 1961), which held the BTA decision void and thus not executable. Thereafter, on January 6, 1962, the Republic filed Civil Case No. 49206 in the Court of First Instance (CFI) of Manila to enforce collection of the alleged war profits tax (P83,179.43). The CFI dismissed that complaint on April 13, 1962, on the ground of prescription; the Republic did not appeal and the dismissal became final.
On July 28, 1962, the Republic filed Civil Case No. 51080 (sometimes cited as No. 51090 in the record) in the CFI of Manila against Carmen Planas (principal) and Alto Surety & Insurance Co., Inc. (surety), seeking forfeiture of Alto Bond No. IR-7093 (dated March 15, 1954) in the amount of P83,179.43, which allegedly guaranteed payment of the same assessed war profits tax, surcharges, interest and compromise. The bond expressly conditioned liability on an adverse decision of the Supreme Court and demand of the Collector. Defendants answered, alleging the action was barred by a prior final ju...(Pro-only)
Issues:
- Does the prior dismissal of Civil Case No. 49206 operate as res judicata and bar the Republic’s subsequent suit in Civil Case No. 51080?
- Did the surety bond executed by Planas and Alto create a separate and independent obligation enforceable by the Republic despite the prior dismissal (i.e., was the bond unconditional or was liability contingent upon an adverse Supr...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)