G.R. No. L-59431 Case Digest

G.R. No. L-59431 July 25, 1984

Antero Sison, petitioner

vs Ruben Ancheta, etc., respondents

Ponente: Fernando

Facts:

Sison alleges that Section 1 of BP Blg. 135 which amends Section 21 of the National Internal Revenue Code of 1977 which provides rates tax on citizens or residents on (a) taxable compensation income, (b) taxable net income, (c) royalties, prizes, and other winnings, (d) interest from bank deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements, (e) dividends and share of individual partner in the net profits of taxable partnership, (f) adjusted gross income. Sison alleged that he would be unduly discriminated by this imposition, characterizing the section as arbitrary amounting to class legislation, oppressive and capricious in character. For Sison, there is a transgression of both the equal protection and due process clauses of the constitution as well as the rule on uniformity in taxation.

Held:

Petition must be dismissed.

Arbitrariness: mere allegation does not suffice. There must be factual foundation of such claim.

Due process: may be invoked where a taxing statute is so arbitrary that it finds no support in the Constitution.

Equal Protection: the laws assailed operate equally and uniformly on all persons under the similar circumstances.

Uniformity: the tax applies equally to all persons, firms and corporations placed in similar situation.

Therefore, the petition is without merit, considering the (1) lack of factual foundation to show the arbitrary character of the assailed provision; 31 (2) the force of controlling doctrines on due process, equal protection, and uniformity in taxation and (3) the reasonableness of the distinction between compensation and taxable net income of professionals and businessman certainly not a suspect classification.