Senguan v. Revenue

Republic of the Philippines SUPREME COURT Manila EN BANC G.R. No. 33196 December 19, 1930 TAN SENGUAN AND CO., plaintiff-appellant, vs. THE COLLECTOR OF INTERNAL REVENUE, defendant-appellee. Feria and La O and Marcelo P. Karaan for appellant. Attorney-General Jaranilla for appellee.

STATEMENT Plaintiff alleges that it is a domestic partnership, with its principal place of business in the City of Manila and the defendant is the Collector of Internal Revenue, who without any authority required the plaintiff to pay P1,357.05 as additional income tax for the years 1925, 1926, and 1927, which plaintiff paid under protest on August 25, 1928, as evidenced by income tax receipts for that amount, for the amount of which plaintiff prays judgment, with costs. For answer the defendant denies the fourth and sixth paragraphs of the complaint, and as a special defense alleges that the old partnership of Tan Senguan & Company ceased to exist as such when Tan Chuan Hui withdrew in 1925, and Ng Kok Sang and Go Cangdio in 1926 and 1927. That when Tan Kim Pue was admitted as a new member, the capital invested by each member was changed in 1925, 1926, and 1927, without recording in the mercantile registry the resolutions of the partnership as to the change of the capital or personnel of the partnership, and that it was from the new partnership that the tax in question was levied and collected, and defendant prays that the complaint be dismissed, with costs.

The parties made the following agreed statement of facts: I. That the plaintiff is a general copartnership existing under and by virtue of the laws of the Philippine Islands with its principal place of business located in the City of Manila, P.I.; and the defendant is the duly appointed and qualified Collector of Internal Revenue for the Philippine Islands with his office located in the said City of Manila, P.I., and with authority to be sued. II. That the original articles of copartnership of the plaintiff were duly registered in the Mercantile Registry on the 24th day of August, 1914, and its amended articles of copartnership were also duly registered therein on the 9th day of June, 1917; copies of which are hereto attached and made part hereof as Exhibits A and B.lawphi1>net III.

That the partners appearing on the said amended articles of copartnership recorded in the Mercantile Registry on the 9th day of June, 1917 (Exhibit B) are the following with their respective capital set opposite their names, to wit: 1. Tan Senguan ........................................... P75,000.00 2.

Lim Uy He ................................................ 35,000.00 3. Gaw Chai Lai ............................................

27,000.00 4. Chua Cho Ching ...................................... 22,000.00 5.

Go Cangdio .............................................. 16,500.00 6. Tan Chuan Hui ........................................

10,000.00 7. Lim Ki Chao ............................................. 9,000.00 8.

Ng Koch Su ............................................. 3,000.00 9. Ng Kok Sang ...........................................

2,500.00