SlideShare una empresa de Scribd logo
1 de 20
Descargar para leer sin conexión
DISCUSSIONS ON THE
MANDANAS RULING
By Atty. Cedric S. Jaranilla
DILG VI Regional Legal Officer
What is the Mandanas Ruling?
The Supreme Court in G.R. No. 199802, July 3,
2018 entitled, “Congressman Hermilando I.
Mandanas; Mayor Efren B. Diona, et al., Petitioners
vs. Executive Secretary Paquito N. Ochoa, Jr.;
Secretary Cesar Purisima, Department of Finance;
Secretary Florencio H. Abad, Department of Budget
and Management; et al., Respondents”, and
What is the Mandanas Ruling?
G.R. No. 2088488, July 3, 2018 entitled, “Honorable
Enrique T. Garcia, Jr., In His Personal And Official
Capacity As Representative of the 2nd District of the
Province of Bataan, Petitioner vs. Honorable Paquito N.
Ochoa, Jr., Executive Secretary; Honorable Cesar V.
Purisima, Secretary, Department of Finance; Honorable
Florencio H. Abad, Secretary, Department of Budget and
Management, et al., Respondents.
The petitioners in both these petitions challenged
the manner in which the just share in the national
taxes of the local government units (LGUs) has
been computed.
For Mandanas, et al., their petition is in the nature
of a special civil action for certiorari, prohibition,
and mandamus assailing the manner the General
Appropriations Act (GAA) for FY 2012 computed the
IRA for the LGUs.
Mandanas, et al. alleged that certain collections of
NIRTs (National Internal Revenue Taxes) by the
Bureau of Customs (BOC) – specifically: excise
taxes, value-added taxes (VATs) and documentary
stamp taxes (DSTs) – have not been included in the
base amounts for the computation of the IRA.
Petitioners further claimed the release of the
additional amount of P 60,750, 000, 000.00 to the
LGUs as their IRA for FY 2012
A staggering amount of unpaid IRA from FY 1992 up
to FY 2011 totalling to P 438, 103, 906, 675. 73 is
being demanded by the petitioners.
For petitioner Congressman Enrique Garcia in G.R.
208488, it is one of a petition for issuance of a writ
of mandamus – that is to compel the respondents to
compute the just share of the LGUs on the basis of
all national taxes.
Garcia insists on the literal reading of Section 6,
Article X of the 1987 Consitution. He avers that the
insertion by the Congress of the words internal
revenue in the phrase national taxes found in
Section 284 of the Local Government Code of 1991
caused the diminution of the base for determining
the just share of the LGUs and that it is
unconstitutional.
Both petitions are similar in nature in that they both
seek a recomputation of the base of the IRA to
include all national taxes and not merely internal
revenue taxes.
The Supreme Court’s Decision.
The Court agreed with Garcia on his allegation that
Congress committed indiscretion. Congress, according to
the Court, had infringed on the Constitutional provision
that the LGU’s just share must include all national taxes
and not only from the national internal revenue.
The Supreme Court further stated that the phrase
“national internal revenue taxes” in Section 284 of
the Local Government Code of 1991 is more
restrictive than the term “national taxes” written
in Section 6, Article X of the 1987 Philippine
Constitution.
It went on to state that “Congress has actually
departed from the letter of the 1987 Constitution
stating that national taxes should be the base from
which the just share of the LGU comes.
Congress had also curtailed the guarantee of fiscal
autonomy in favour of the LGUs under the 1987
Constitution.
National internal revenue taxes are those
enumerated in the National Internal Revenue Code
(NIRC). These are: income tax; estate and donor’s
taxes; VAT; other percentage taxes; excise taxes;
documentary stamp taxes; and such other taxes as
are or hereafter may be imposed and collected by
the Bureau of Internal Revenue.
Section 284 has effectively deprived the LGUs from
deriving their just share from other national taxes,
like customs duties.
The intent of the people in respect to Section 6
(Article X of the 1987 Constitution) is really that
the base for the reckoning the just share of the
LGUs should include all national taxes.
To read Section 6 differently as requiring that the
just share of LGUs in the national taxes shall be
determined by law is tantamount to the
unauthorized revision of the Constitution.
In recapitulation, the national taxes to be
included in the base for computing the just share
the LGUs shall henceforth be, but shall not be
limited to, the following:
1. The NIRTs enumerated in Section 21 of the
NIRC, as amended, to be inclusive of the VATs,
excise taxes, and DSTs collected by the BIR and
the BOC, and their deputized agents;
2. Tariff and customs duties collected by the BOC;
3. 50% of the VATs collected in the ARMM, and 30%
of all other national taxes collected in the ARMM;
the remaining 50% of the VATs and 70% of the
collections of the other national taxes in the ARMM
shall be the exclusive share of the ARMM pursuant to
Section 9 and Section 15 of R.A. No. 9054;
4. 60% of the national taxes collected from the
exploitation and development of the national
wealth; the remaining 40% will exclusively accrue to
the host LGUs pursuant to Section 290 of the LGC;
5. 85% of the excise taxes collected from locally
manufactured Virginia and other tobacco products;
the remaining 15% shall accrue to the special
purpose funds pursuant created in R.A. No. 7171
and R.A. No. 7227;
6. The entire 50% of the national taxes collected
under Section 106, Section 108 and Section 116 of
the NIRC in excess of the increase in collections for
the immediately preceding year; and
7. 5% of the franchise taxes in favor of the national
government paid by franchise holders in accordance
with Section 6 of R.A. No. 6631 and Section 8 of
R.A. No. 6632.
The effect of the Court’s declaration through the
decision of the unconstitutionality of Section 284 of
the LGC and its related laws as far as they limited
the source of the just share of the LGUs to the
NIRTs is prospective. It cannot be otherwise.
This supports the decision of the Court not to grant
the payment of arrears to the LGUs (from 1992-
2011).
The 1987 Constitution is forthright and unequivocal
in ordering that the just share of the LGUs in the
national taxes shall be automatically released to
them. With Congress having established the just
share through the LGC, it seems to be beyond
debate that the inclusion of the just share of the
LGUs in the annual GAAs is unnecessary, if not
superfluous. Hence, the just share of the LGUs in
the national taxes shall be released to them without
need of yearly appropriation.
End of presentation. Thank you.

Más contenido relacionado

La actualidad más candente

Public Debt Philippines
Public Debt PhilippinesPublic Debt Philippines
Public Debt PhilippinesKaren S.
 
The Role of Local Government
The Role of Local GovernmentThe Role of Local Government
The Role of Local Governmented gbargaye
 
Local Planning and Budgeting Linkage
Local Planning and Budgeting LinkageLocal Planning and Budgeting Linkage
Local Planning and Budgeting Linkageyee tandog
 
Fiscal administration 2 ppt
Fiscal administration 2 pptFiscal administration 2 ppt
Fiscal administration 2 pptLouie Medinaceli
 
Philippine Administrative System by HCZS
Philippine Administrative System  by HCZSPhilippine Administrative System  by HCZS
Philippine Administrative System by HCZSJo Balucanag - Bitonio
 
Distribution and Expenditures of Philippine National Budget
Distribution and Expenditures of Philippine National BudgetDistribution and Expenditures of Philippine National Budget
Distribution and Expenditures of Philippine National BudgetPat Reyes
 
Local Government and Regional Administration
Local Government and Regional AdministrationLocal Government and Regional Administration
Local Government and Regional AdministrationJo Balucanag - Bitonio
 
Civil Society and Public Administration
Civil Society and Public AdministrationCivil Society and Public Administration
Civil Society and Public AdministrationSheila Dingcong
 
Public Fiscal Administration
Public Fiscal AdministrationPublic Fiscal Administration
Public Fiscal AdministrationTristan de Mortel
 
The Constitutional and Legal Basis of Public Finance in the Philippines
The Constitutional and Legal Basis of Public Finance in the PhilippinesThe Constitutional and Legal Basis of Public Finance in the Philippines
The Constitutional and Legal Basis of Public Finance in the PhilippinesLym Relampagos Ongoy
 
Financial management
Financial managementFinancial management
Financial managementGreen Minds
 
Innovations and Strategies in Public Administration
Innovations and Strategies in Public AdministrationInnovations and Strategies in Public Administration
Innovations and Strategies in Public AdministrationMarlyn Allanigue
 
The Philippine Local Government Code
The Philippine Local Government CodeThe Philippine Local Government Code
The Philippine Local Government Codebrianbelen
 
Local Government Taxation In The Philippines
Local Government Taxation In The PhilippinesLocal Government Taxation In The Philippines
Local Government Taxation In The PhilippinesJOHNY NATAD
 
Philippine Administrative System (PAS)
Philippine Administrative System  (PAS)Philippine Administrative System  (PAS)
Philippine Administrative System (PAS)Jo Balucanag - Bitonio
 

La actualidad más candente (20)

MPA 211 Rural Development
MPA 211 Rural Development MPA 211 Rural Development
MPA 211 Rural Development
 
Public Debt Philippines
Public Debt PhilippinesPublic Debt Philippines
Public Debt Philippines
 
The Role of Local Government
The Role of Local GovernmentThe Role of Local Government
The Role of Local Government
 
Local Planning and Budgeting Linkage
Local Planning and Budgeting LinkageLocal Planning and Budgeting Linkage
Local Planning and Budgeting Linkage
 
Mandated Local Plans
Mandated Local PlansMandated Local Plans
Mandated Local Plans
 
Fiscal administration 2 ppt
Fiscal administration 2 pptFiscal administration 2 ppt
Fiscal administration 2 ppt
 
Philippine Administrative System by HCZS
Philippine Administrative System  by HCZSPhilippine Administrative System  by HCZS
Philippine Administrative System by HCZS
 
Distribution and Expenditures of Philippine National Budget
Distribution and Expenditures of Philippine National BudgetDistribution and Expenditures of Philippine National Budget
Distribution and Expenditures of Philippine National Budget
 
Local Government and Regional Administration
Local Government and Regional AdministrationLocal Government and Regional Administration
Local Government and Regional Administration
 
Civil Society and Public Administration
Civil Society and Public AdministrationCivil Society and Public Administration
Civil Society and Public Administration
 
Public Fiscal Administration
Public Fiscal AdministrationPublic Fiscal Administration
Public Fiscal Administration
 
The Constitutional and Legal Basis of Public Finance in the Philippines
The Constitutional and Legal Basis of Public Finance in the PhilippinesThe Constitutional and Legal Basis of Public Finance in the Philippines
The Constitutional and Legal Basis of Public Finance in the Philippines
 
Ph Local Government System
Ph Local Government SystemPh Local Government System
Ph Local Government System
 
Financial management
Financial managementFinancial management
Financial management
 
Innovations and Strategies in Public Administration
Innovations and Strategies in Public AdministrationInnovations and Strategies in Public Administration
Innovations and Strategies in Public Administration
 
The Philippine Local Government Code
The Philippine Local Government CodeThe Philippine Local Government Code
The Philippine Local Government Code
 
Local Government Taxation In The Philippines
Local Government Taxation In The PhilippinesLocal Government Taxation In The Philippines
Local Government Taxation In The Philippines
 
Philippine Administrative System (PAS)
Philippine Administrative System  (PAS)Philippine Administrative System  (PAS)
Philippine Administrative System (PAS)
 
Fiscal Administration by Theresa
Fiscal Administration by TheresaFiscal Administration by Theresa
Fiscal Administration by Theresa
 
Role of Local Government
Role of Local GovernmentRole of Local Government
Role of Local Government
 

Similar a DISCUSSIONS ON THE MANDANAS RULING ppt 2021.pptx

234732427 income-tax-cases
234732427 income-tax-cases234732427 income-tax-cases
234732427 income-tax-caseshomeworkping3
 
60350002 taxation-1-case-digests
60350002 taxation-1-case-digests60350002 taxation-1-case-digests
60350002 taxation-1-case-digestshomeworkping4
 
161809996 taxation-1-case-digests
161809996 taxation-1-case-digests161809996 taxation-1-case-digests
161809996 taxation-1-case-digestshomeworkping7
 
98765432123Tax-1-Cases-Finals-Partnership-Deductions-Withholding-taxes.docx
98765432123Tax-1-Cases-Finals-Partnership-Deductions-Withholding-taxes.docx98765432123Tax-1-Cases-Finals-Partnership-Deductions-Withholding-taxes.docx
98765432123Tax-1-Cases-Finals-Partnership-Deductions-Withholding-taxes.docxLaraMichelleSandayBi
 
BNA Daily Tax Report re NII Tax - JSH JGL PH - Dec 13
BNA Daily Tax Report re NII Tax - JSH JGL  PH - Dec 13BNA Daily Tax Report re NII Tax - JSH JGL  PH - Dec 13
BNA Daily Tax Report re NII Tax - JSH JGL PH - Dec 13Jeffrey Gould
 
238994217 pub corp-cases-2
238994217 pub corp-cases-2238994217 pub corp-cases-2
238994217 pub corp-cases-2homeworkping4
 
Salt deduction limitation is constitutional
Salt deduction limitation is constitutionalSalt deduction limitation is constitutional
Salt deduction limitation is constitutionalFinnKevin
 
Sovereignty or economic progress
Sovereignty or economic progressSovereignty or economic progress
Sovereignty or economic progressviviandabu
 
Taxes and Philex: CTA 2 d_cv_08284_d_2012jul30_ref
Taxes and Philex: CTA 2 d_cv_08284_d_2012jul30_refTaxes and Philex: CTA 2 d_cv_08284_d_2012jul30_ref
Taxes and Philex: CTA 2 d_cv_08284_d_2012jul30_refNo to mining in Palawan
 
Indonesian Tax Laws Harmonisation.pdf
Indonesian Tax Laws Harmonisation.pdfIndonesian Tax Laws Harmonisation.pdf
Indonesian Tax Laws Harmonisation.pdfAHRP Law Firm
 
Right of the taxpayers to protect personal data.pdf
Right of the taxpayers to protect personal data.pdfRight of the taxpayers to protect personal data.pdf
Right of the taxpayers to protect personal data.pdfMohammadShahjahanSid
 
Presentación de la República Argentina a Thomas Griesa (inglés)
Presentación de la República Argentina a Thomas Griesa (inglés)Presentación de la República Argentina a Thomas Griesa (inglés)
Presentación de la República Argentina a Thomas Griesa (inglés)CFdeKirchner
 
2009 BIOL503 Class 8 Intellectual Property IV Supporting Doc: City of Hope v....
2009 BIOL503 Class 8 Intellectual Property IV Supporting Doc: City of Hope v....2009 BIOL503 Class 8 Intellectual Property IV Supporting Doc: City of Hope v....
2009 BIOL503 Class 8 Intellectual Property IV Supporting Doc: City of Hope v....Karol Pessin
 
Kinds of Taxes Under Existing Philippine Laws
Kinds of Taxes Under Existing Philippine LawsKinds of Taxes Under Existing Philippine Laws
Kinds of Taxes Under Existing Philippine LawsAlenna Pastrana
 

Similar a DISCUSSIONS ON THE MANDANAS RULING ppt 2021.pptx (20)

234732427 income-tax-cases
234732427 income-tax-cases234732427 income-tax-cases
234732427 income-tax-cases
 
Webinar UKTI- Rural lands
Webinar UKTI- Rural landsWebinar UKTI- Rural lands
Webinar UKTI- Rural lands
 
60350002 taxation-1-case-digests
60350002 taxation-1-case-digests60350002 taxation-1-case-digests
60350002 taxation-1-case-digests
 
161809996 taxation-1-case-digests
161809996 taxation-1-case-digests161809996 taxation-1-case-digests
161809996 taxation-1-case-digests
 
98765432123Tax-1-Cases-Finals-Partnership-Deductions-Withholding-taxes.docx
98765432123Tax-1-Cases-Finals-Partnership-Deductions-Withholding-taxes.docx98765432123Tax-1-Cases-Finals-Partnership-Deductions-Withholding-taxes.docx
98765432123Tax-1-Cases-Finals-Partnership-Deductions-Withholding-taxes.docx
 
BNA Daily Tax Report re NII Tax - JSH JGL PH - Dec 13
BNA Daily Tax Report re NII Tax - JSH JGL  PH - Dec 13BNA Daily Tax Report re NII Tax - JSH JGL  PH - Dec 13
BNA Daily Tax Report re NII Tax - JSH JGL PH - Dec 13
 
238994217 pub corp-cases-2
238994217 pub corp-cases-2238994217 pub corp-cases-2
238994217 pub corp-cases-2
 
Guide to Philippine Tax Law Research
Guide to Philippine Tax Law ResearchGuide to Philippine Tax Law Research
Guide to Philippine Tax Law Research
 
Salt deduction limitation is constitutional
Salt deduction limitation is constitutionalSalt deduction limitation is constitutional
Salt deduction limitation is constitutional
 
Sovereignty or economic progress
Sovereignty or economic progressSovereignty or economic progress
Sovereignty or economic progress
 
Draft Laws on State Registration and Property Rights
Draft Laws on State Registration and Property RightsDraft Laws on State Registration and Property Rights
Draft Laws on State Registration and Property Rights
 
Taxes and Philex: CTA 2 d_cv_08284_d_2012jul30_ref
Taxes and Philex: CTA 2 d_cv_08284_d_2012jul30_refTaxes and Philex: CTA 2 d_cv_08284_d_2012jul30_ref
Taxes and Philex: CTA 2 d_cv_08284_d_2012jul30_ref
 
Indonesian Tax Laws Harmonisation.pdf
Indonesian Tax Laws Harmonisation.pdfIndonesian Tax Laws Harmonisation.pdf
Indonesian Tax Laws Harmonisation.pdf
 
Taxation Summary
Taxation SummaryTaxation Summary
Taxation Summary
 
Right of the taxpayers to protect personal data.pdf
Right of the taxpayers to protect personal data.pdfRight of the taxpayers to protect personal data.pdf
Right of the taxpayers to protect personal data.pdf
 
Argentina Business Legal Framework - August 2009
Argentina Business Legal Framework - August 2009Argentina Business Legal Framework - August 2009
Argentina Business Legal Framework - August 2009
 
Presentación de la República Argentina a Thomas Griesa (inglés)
Presentación de la República Argentina a Thomas Griesa (inglés)Presentación de la República Argentina a Thomas Griesa (inglés)
Presentación de la República Argentina a Thomas Griesa (inglés)
 
Foreign Remittance
Foreign RemittanceForeign Remittance
Foreign Remittance
 
2009 BIOL503 Class 8 Intellectual Property IV Supporting Doc: City of Hope v....
2009 BIOL503 Class 8 Intellectual Property IV Supporting Doc: City of Hope v....2009 BIOL503 Class 8 Intellectual Property IV Supporting Doc: City of Hope v....
2009 BIOL503 Class 8 Intellectual Property IV Supporting Doc: City of Hope v....
 
Kinds of Taxes Under Existing Philippine Laws
Kinds of Taxes Under Existing Philippine LawsKinds of Taxes Under Existing Philippine Laws
Kinds of Taxes Under Existing Philippine Laws
 

Más de JohnChristopherRegui2

Más de JohnChristopherRegui2 (8)

2. Philippine Administrative System.pptx
2. Philippine Administrative System.pptx2. Philippine Administrative System.pptx
2. Philippine Administrative System.pptx
 
Project Development Phases and Project Life Cycle.pptx
Project Development Phases and Project Life Cycle.pptxProject Development Phases and Project Life Cycle.pptx
Project Development Phases and Project Life Cycle.pptx
 
MIS EUC ad.pptx
MIS EUC ad.pptxMIS EUC ad.pptx
MIS EUC ad.pptx
 
MIS ECS.pptx
MIS ECS.pptxMIS ECS.pptx
MIS ECS.pptx
 
Barangay Legislation.pptx
Barangay Legislation.pptxBarangay Legislation.pptx
Barangay Legislation.pptx
 
BA Framework, Anaytics and types newest Farmeowrk.pptx
BA Framework, Anaytics and types newest Farmeowrk.pptxBA Framework, Anaytics and types newest Farmeowrk.pptx
BA Framework, Anaytics and types newest Farmeowrk.pptx
 
02 GAD-related laws.pptx
02 GAD-related laws.pptx02 GAD-related laws.pptx
02 GAD-related laws.pptx
 
01 Basic GAD Concepts.pptx
01 Basic GAD Concepts.pptx01 Basic GAD Concepts.pptx
01 Basic GAD Concepts.pptx
 

Último

Water can create peace or spark conflict.
Water can create peace or spark conflict.Water can create peace or spark conflict.
Water can create peace or spark conflict.Christina Parmionova
 
Sensitivity Training for 2023 BSKE.pptx
Sensitivity Training for  2023 BSKE.pptxSensitivity Training for  2023 BSKE.pptx
Sensitivity Training for 2023 BSKE.pptxAllidaacLuap
 
Parents give a charity ideas for children
Parents give a charity ideas for childrenParents give a charity ideas for children
Parents give a charity ideas for childrenSERUDS INDIA
 
PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.ahcitycouncil
 
india sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdfindia sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdfcoalitionindiasanita
 
Hub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspirationHub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspirationStephen Abram
 
2024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 162024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 16JSchaus & Associates
 
Item # 5&6 - 218 Canyon Drive replat prop.
Item # 5&6 - 218 Canyon Drive replat prop.Item # 5&6 - 218 Canyon Drive replat prop.
Item # 5&6 - 218 Canyon Drive replat prop.ahcitycouncil
 
2024: The FAR, Federal Acquisition Regulations - Part 17
2024: The FAR, Federal Acquisition Regulations - Part 172024: The FAR, Federal Acquisition Regulations - Part 17
2024: The FAR, Federal Acquisition Regulations - Part 17JSchaus & Associates
 
Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024Christina Parmionova
 
Water for Prosperity and peace - United Nations World Water Development Repo...
Water for Prosperity and peace -  United Nations World Water Development Repo...Water for Prosperity and peace -  United Nations World Water Development Repo...
Water for Prosperity and peace - United Nations World Water Development Repo...Christina Parmionova
 
For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.Christina Parmionova
 
Managing Planning and Development of Citie- 26-2-24.docx
Managing Planning and  Development of  Citie-  26-2-24.docxManaging Planning and  Development of  Citie-  26-2-24.docx
Managing Planning and Development of Citie- 26-2-24.docxJIT KUMAR GUPTA
 
Item # 4 - Appointment of new PW Director
Item # 4 - Appointment of new PW DirectorItem # 4 - Appointment of new PW Director
Item # 4 - Appointment of new PW Directorahcitycouncil
 
Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Christina Parmionova
 
What Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the GrandparentsWhat Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the GrandparentsSERUDS INDIA
 
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...JSchaus & Associates
 
Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Christina Parmionova
 
Parents can give charity ideas for kids.
Parents can give charity ideas for kids.Parents can give charity ideas for kids.
Parents can give charity ideas for kids.SERUDS INDIA
 

Último (20)

Water can create peace or spark conflict.
Water can create peace or spark conflict.Water can create peace or spark conflict.
Water can create peace or spark conflict.
 
Sensitivity Training for 2023 BSKE.pptx
Sensitivity Training for  2023 BSKE.pptxSensitivity Training for  2023 BSKE.pptx
Sensitivity Training for 2023 BSKE.pptx
 
Parents give a charity ideas for children
Parents give a charity ideas for childrenParents give a charity ideas for children
Parents give a charity ideas for children
 
PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.
 
india sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdfindia sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdf
 
Hub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspirationHub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspiration
 
2024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 162024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 16
 
Item # 5&6 - 218 Canyon Drive replat prop.
Item # 5&6 - 218 Canyon Drive replat prop.Item # 5&6 - 218 Canyon Drive replat prop.
Item # 5&6 - 218 Canyon Drive replat prop.
 
2024: The FAR, Federal Acquisition Regulations - Part 17
2024: The FAR, Federal Acquisition Regulations - Part 172024: The FAR, Federal Acquisition Regulations - Part 17
2024: The FAR, Federal Acquisition Regulations - Part 17
 
Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024
 
Water for Prosperity and peace - United Nations World Water Development Repo...
Water for Prosperity and peace -  United Nations World Water Development Repo...Water for Prosperity and peace -  United Nations World Water Development Repo...
Water for Prosperity and peace - United Nations World Water Development Repo...
 
For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.
 
Managing Planning and Development of Citie- 26-2-24.docx
Managing Planning and  Development of  Citie-  26-2-24.docxManaging Planning and  Development of  Citie-  26-2-24.docx
Managing Planning and Development of Citie- 26-2-24.docx
 
How to Save a Place: Become an Advocate.
How to Save a Place: Become an Advocate.How to Save a Place: Become an Advocate.
How to Save a Place: Become an Advocate.
 
Item # 4 - Appointment of new PW Director
Item # 4 - Appointment of new PW DirectorItem # 4 - Appointment of new PW Director
Item # 4 - Appointment of new PW Director
 
Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024
 
What Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the GrandparentsWhat Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the Grandparents
 
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
 
Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.
 
Parents can give charity ideas for kids.
Parents can give charity ideas for kids.Parents can give charity ideas for kids.
Parents can give charity ideas for kids.
 

DISCUSSIONS ON THE MANDANAS RULING ppt 2021.pptx

  • 1. DISCUSSIONS ON THE MANDANAS RULING By Atty. Cedric S. Jaranilla DILG VI Regional Legal Officer
  • 2. What is the Mandanas Ruling? The Supreme Court in G.R. No. 199802, July 3, 2018 entitled, “Congressman Hermilando I. Mandanas; Mayor Efren B. Diona, et al., Petitioners vs. Executive Secretary Paquito N. Ochoa, Jr.; Secretary Cesar Purisima, Department of Finance; Secretary Florencio H. Abad, Department of Budget and Management; et al., Respondents”, and
  • 3. What is the Mandanas Ruling? G.R. No. 2088488, July 3, 2018 entitled, “Honorable Enrique T. Garcia, Jr., In His Personal And Official Capacity As Representative of the 2nd District of the Province of Bataan, Petitioner vs. Honorable Paquito N. Ochoa, Jr., Executive Secretary; Honorable Cesar V. Purisima, Secretary, Department of Finance; Honorable Florencio H. Abad, Secretary, Department of Budget and Management, et al., Respondents.
  • 4. The petitioners in both these petitions challenged the manner in which the just share in the national taxes of the local government units (LGUs) has been computed. For Mandanas, et al., their petition is in the nature of a special civil action for certiorari, prohibition, and mandamus assailing the manner the General Appropriations Act (GAA) for FY 2012 computed the IRA for the LGUs.
  • 5. Mandanas, et al. alleged that certain collections of NIRTs (National Internal Revenue Taxes) by the Bureau of Customs (BOC) – specifically: excise taxes, value-added taxes (VATs) and documentary stamp taxes (DSTs) – have not been included in the base amounts for the computation of the IRA. Petitioners further claimed the release of the additional amount of P 60,750, 000, 000.00 to the LGUs as their IRA for FY 2012
  • 6. A staggering amount of unpaid IRA from FY 1992 up to FY 2011 totalling to P 438, 103, 906, 675. 73 is being demanded by the petitioners. For petitioner Congressman Enrique Garcia in G.R. 208488, it is one of a petition for issuance of a writ of mandamus – that is to compel the respondents to compute the just share of the LGUs on the basis of all national taxes.
  • 7. Garcia insists on the literal reading of Section 6, Article X of the 1987 Consitution. He avers that the insertion by the Congress of the words internal revenue in the phrase national taxes found in Section 284 of the Local Government Code of 1991 caused the diminution of the base for determining the just share of the LGUs and that it is unconstitutional.
  • 8. Both petitions are similar in nature in that they both seek a recomputation of the base of the IRA to include all national taxes and not merely internal revenue taxes.
  • 9. The Supreme Court’s Decision. The Court agreed with Garcia on his allegation that Congress committed indiscretion. Congress, according to the Court, had infringed on the Constitutional provision that the LGU’s just share must include all national taxes and not only from the national internal revenue.
  • 10. The Supreme Court further stated that the phrase “national internal revenue taxes” in Section 284 of the Local Government Code of 1991 is more restrictive than the term “national taxes” written in Section 6, Article X of the 1987 Philippine Constitution. It went on to state that “Congress has actually departed from the letter of the 1987 Constitution stating that national taxes should be the base from which the just share of the LGU comes.
  • 11. Congress had also curtailed the guarantee of fiscal autonomy in favour of the LGUs under the 1987 Constitution. National internal revenue taxes are those enumerated in the National Internal Revenue Code (NIRC). These are: income tax; estate and donor’s taxes; VAT; other percentage taxes; excise taxes; documentary stamp taxes; and such other taxes as are or hereafter may be imposed and collected by the Bureau of Internal Revenue.
  • 12. Section 284 has effectively deprived the LGUs from deriving their just share from other national taxes, like customs duties. The intent of the people in respect to Section 6 (Article X of the 1987 Constitution) is really that the base for the reckoning the just share of the LGUs should include all national taxes.
  • 13. To read Section 6 differently as requiring that the just share of LGUs in the national taxes shall be determined by law is tantamount to the unauthorized revision of the Constitution.
  • 14. In recapitulation, the national taxes to be included in the base for computing the just share the LGUs shall henceforth be, but shall not be limited to, the following: 1. The NIRTs enumerated in Section 21 of the NIRC, as amended, to be inclusive of the VATs, excise taxes, and DSTs collected by the BIR and the BOC, and their deputized agents;
  • 15. 2. Tariff and customs duties collected by the BOC; 3. 50% of the VATs collected in the ARMM, and 30% of all other national taxes collected in the ARMM; the remaining 50% of the VATs and 70% of the collections of the other national taxes in the ARMM shall be the exclusive share of the ARMM pursuant to Section 9 and Section 15 of R.A. No. 9054;
  • 16. 4. 60% of the national taxes collected from the exploitation and development of the national wealth; the remaining 40% will exclusively accrue to the host LGUs pursuant to Section 290 of the LGC; 5. 85% of the excise taxes collected from locally manufactured Virginia and other tobacco products; the remaining 15% shall accrue to the special purpose funds pursuant created in R.A. No. 7171 and R.A. No. 7227;
  • 17. 6. The entire 50% of the national taxes collected under Section 106, Section 108 and Section 116 of the NIRC in excess of the increase in collections for the immediately preceding year; and 7. 5% of the franchise taxes in favor of the national government paid by franchise holders in accordance with Section 6 of R.A. No. 6631 and Section 8 of R.A. No. 6632.
  • 18. The effect of the Court’s declaration through the decision of the unconstitutionality of Section 284 of the LGC and its related laws as far as they limited the source of the just share of the LGUs to the NIRTs is prospective. It cannot be otherwise. This supports the decision of the Court not to grant the payment of arrears to the LGUs (from 1992- 2011).
  • 19. The 1987 Constitution is forthright and unequivocal in ordering that the just share of the LGUs in the national taxes shall be automatically released to them. With Congress having established the just share through the LGC, it seems to be beyond debate that the inclusion of the just share of the LGUs in the annual GAAs is unnecessary, if not superfluous. Hence, the just share of the LGUs in the national taxes shall be released to them without need of yearly appropriation.
  • 20. End of presentation. Thank you.