Title
Republic vs. Li Yao
Case
G.R. No. 35947
Decision Date
Oct 20, 1992
Chinese national's naturalization revoked due to tax evasion and lack of good moral character, affirming strict compliance with citizenship laws.

Case Digest (G.R. No. 35947)
Expanded Legal Reasoning Model

Facts:

  • Background of the Naturalization Process
    • William Li Yao, a Chinese national, filed his petition for naturalization on June 3, 1949, with the then Court of First Instance of Manila (Case No. 8225).
    • The petition underwent several hearings, with the Office of the Solicitor General representing the Republic of the Philippines.
    • On October 25, 1950, the lower court rendered a decision declaring Li Yao as a naturalized Filipino citizen subject to a two-year probation period to verify his compliance with Republic Act No. 530.
    • The probationary conditions required that during the two-year period, Li Yao must not leave the Philippines, must engage continuously in a lawful occupation, must not be convicted of any offense or violate government regulations, and must not commit acts prejudicial to national interest.
  • Issuance of the Certificate of Naturalization
    • On November 20, 1952, after finding that Li Yao complied with the probationary conditions, the lower court ordered that he be allowed to take his oath of allegiance and directed the Clerk of Court to issue his certificate of naturalization.
    • This certificate represented his full integration and the acquisition of Filipino citizenship under the conditions stipulated in the earlier decision.
  • Grounds for Cancellation of the Certificate
    • On January 5, 1968, the Republic of the Philippines, through the Solicitor General, filed a motion to cancel Li Yao’s certificate of naturalization on the basis that it was fraudulently and illegally obtained.
    • The motion alleged multiple grounds, including:
      • Li Yao’s lack of good moral character due to alleged illicit amorous relationships and the fathering of illegitimate children.
      • His failure to conduct himself in an irreproachable manner in dealings with governmental authorities, including:
        • Using the name Francisco Li Yao without judicial authority and inconsistent with his baptismal record.
ii. Using the alias LI CHAY TOO, JR., under which a trust fund had been created for him. iii. Evading the payment of lawful taxes by underdeclaring his income for the years 1946-1951. iv. Violations of the Constitution and Anti-Dummy laws regarding the acquisition of real properties through the use of dummies.
  • Falsifying information in a baptismal certificate concerning the legitimacy and relationships of his offspring.
  • Lower Court’s Order and Subsequent Proceedings
    • On July 22, 1971, the lower court, focusing solely on the charge of tax evasion (underdeclaration of income), issued an order cancelling Certificate of Naturalization No. 1139 issued on November 20, 1952.
    • Li Yao filed a motion for reconsideration on December 29, 1971, which was denied by the lower court.
    • A notice of appeal was filed on January 7, 1972, appealing from both the cancellation order and the denial of the motion for reconsideration.
    • Although petitioner-appellant Li Yao later died, the case remained significant due to its grave implications for his wife and children.

Issues:

  • Whether the cancellation of William Li Yao’s certificate of naturalization by the government, based on the charge of fraudulent and illegal obtaining of said certificate, is valid.
    • Specifically, whether the underdeclaration of income and consequent evasion of payment of lawful taxes is sufficient grounds for such cancellation.
    • Whether the subsequent payment or settlement under a tax amnesty (P.D. No. 68) is effective in nullifying the ground for cancellation related to the deficiency in good moral character and irreproachable conduct.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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