Chuy v. Reyes

MALCOLM, J.:

This case was submitted for the trial court's decision on the legal issues arising from the following: STIPULATION OF FACTS I The plaintiff is the manger of Hoa Hin & Co., Inc., a large shipbuilding concern with offices in Cebu, which corporation had average annual gross receipts of P900,000 for the years 1925, 1926, 1927, and 1928, and the defendant is a duly appointed special deputy of the Collector of Internal Revenue especially assigned to income tax investigation. At all times mentioned in his case, and for all purposes of this case, both the plaintiff and the defendant have acted, and do act, in their respective capacities of manager of Hoa Hin & Co., Inc., and special deputy of the Collector of Internal Revenue. II Prior to July 14, 1930, the defendant, at various times requested the plaintiff to bring the Chinese books of account of Hoa Hin & Co., Inc., for the years 1925, 1926, 1927, and 1928 to the office of the defendant at the provincial building of Cebu, Cebu, for income tax and other Internal Revenue Tax investigation, but the plaintiff refused to do so, and advised the defendant that the said Chinese books of account were at his disposition in the offices of Hoa Hin & Co., Inc., where a suitable room and all necessary conveniences would be given the defendant for making any tax inspection or tax investigation.

III Consequently, on July 14, 1930, the defendant issued the attached subpoena duces tecum , marked Exhibit A directed to the plaintiff commanding him to appear at the Internal Revenue Office in the provincial building of Cebu, at 9 a. m., on July 16, 1930, bringing with him "ALL THE COMMERCIAL BOOKS OR OTHER PAPERS OF HOA HIN & CO., INC., ON WHICH ARE RECORDED YOUR TRANSACTIONS SHOWING INCOME AND EXPENSES FOR THE YEARS 1925, 1926, 1927, AND 1928, INCLUSIVE which said subpoena duces tecum was received by the plaintiff on July 14, 1930, and is in words and figures as follows: "UNITED STATES OF AMERICA "PHILIPPINE ISLANDS "BUREAU OF INTERNAL REVENUE "SUBPOENA DUCES TECUM "To Mr. JOSE SY HUNG CHUY "Manager of Hoa Hin & Co., Inc. "Morga, Cebu "GREETING: "By authority vested in me under the provisions of sections 580 and 1436 of the Administrative Code, you are hereby commanded to appear before me at Bureau of Internal Revenue, provincial building, Cebu, Cebu, Philippine Islands, on the 16th of July, 1930, at 9 a.m., and bring with you the following: ALL THE COMMERCIAL BOOKS OR ANY OTHER PAPERS OF HOA HIN & CO., INC., ON WHICH ARE RECORDED YOUR TRANSACTIONS SHOWING INCOME AND EXPENSES FOR THE YEARS 1925, 1926, 1927, AND 1928 INCLUSIVE, it being necessary to use them in an investigation now pending under the Income Tax and Internal Revenue Laws.

HEREOF FAIL NOT UNDER PENALTY OF THE LAW. This 14th day of July, 1930. (Sgd.) "PABLO C. REYES "Special Deputy Authorized to administer oaths and to take testimony under the provisions of section 1436, of the Administrative Code "I certify that I have this ........day of ........................., 192 , been served with the original of this subpoena duces tecum.

(Sgd.) "JOSE SY JONG CHUY" IV The defendant refused to comply with this subpoena duces tecum and reiterated that the Chinese books of account could only be legally inspected and investigated at the offices of Hoa Hin & Co., Inc., in the municipality of Cebu, Province of Cebu.

V Subsequently, on September 8, 1930, to make the issue more definite, the parties agreed to an amendment to the complaint by which the defendant agreed that the bringing to the offices of the Internal Revenue in the provincial building at Cebu, of the following Chinese books of account of Hoa Hin & Co., Inc., would be a sufficient compliance with the afore-mentioned subpoena duces tecum issued on July 14, 1930, which Chinese books, fifty-three (53) in number, measure per book, ten (10) inches by nine and one-half (9.5) inches by two (2) inches of two hundred (200) pages each, to wit: 1925 1926 1927 1928 Journal 3 3 3 3 Ledger 8 8 8 8 Purchase 1 1 1 2 Sales 1 1 1 1