Scribd
Upload
85 views2 pages

Juan vs. Ca: DOCTRINE/S: The Disallowance of ISSUE/S: Whether An Interest Can Be

Gregorio Sarasola filed a complaint to restrain the collection of alleged illegal taxes. The court sustained the Collector of Internal Revenue's demurrer, finding that injunctions cannot restrain tax collection under Section 1578. It also found that Section 1579 disallows interest on taxes, making it one of the conditions of the remedy provided to taxpayers. The court ruled that interest cannot be imposed against the State unless authorized by law, and that the legislature deemed the remedy in Section 1579 adequate without allowing interest. It upheld the validity of the law and denied Sarasola's request.

Uploaded by

Lucifer Morning
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
85 views2 pages

Juan vs. Ca: DOCTRINE/S: The Disallowance of ISSUE/S: Whether An Interest Can Be

Gregorio Sarasola filed a complaint to restrain the collection of alleged illegal taxes. The court sustained the Collector of Internal Revenue's demurrer, finding that injunctions cannot restrain tax collection under Section 1578. It also found that Section 1579 disallows interest on taxes, making it one of the conditions of the remedy provided to taxpayers. The court ruled that interest cannot be imposed against the State unless authorized by law, and that the legislature deemed the remedy in Section 1579 adequate without allowing interest. It upheld the validity of the law and denied Sarasola's request.

Uploaded by

Lucifer Morning
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Digest for Tax 2

of CFI Manila sustained the demurrer,


JUAN vs. CA basing his decision from the case of
Churchill v Rafferty. Sarsola argued that
the provisions under Sec 1578-1579 are
DOCTRINE/S: The disallowance of unconstitutional
interest in such case, like the other
steps prescribed as conditional to ISSUE/S: Whether an interest can be
recovery, has been made one of the imposed against the State in cases of
conditions which the lawmakers have recovery of taxes illegally collected.
seen fit. To attach to the remedy
provided. As the Legislature in the RULING:
exercise of its wide discretionary power,
has deemed the remedy provided in It is well settled both on principle and
section 1579 of the Administrative Code authority that interest is not to be
to be an adequate mode of testing the awarded against a sovereign
validity of an internal revenue tax and government unless its consent has been
has willed that such a remedy shall be manifested by an Act of its Legislature
exclusive, the courts not only owe it to a or by a lawful contract of its executive
coordinate branch of the government to officers. If there be doubt upon the
respect the opinion thus announced, but subject, that doubt must be resolved in
have no right to interfere with the favor of the State. The state never pays
enforcement of such a law. interest unless she expressly engages
to do so. Our own statute not only does
FACTS: not authorize interest but negatives the
payment of interest. The law is valid, or
Gregorio Sarasola filed a complaint for that Sarasola has not proven such a
injunction to restrain Wenceslao case of irreparable injury as would
Trinidad, the Collector of Internal warrant the issuance of the
Revenue from the alleged illegal extraordinary writ of execution. 
collection of taxes. CIR interposed a
demurrer to the complaint stating that It would seem that the legislature has
under Section 1578 of the considered that a law providing for the
Administrative Code, injunction is not payment of a tax with a right to bring a
available to restrain collection of tax. suit before a tribunal to recover back the
CIR also alleged the complaint did not same without interest is a full and
entitle the plaintiff to the relief adequate remedy for the aggrieved
demanded as under Section 1579, it taxpayer. The disallowance of interest in
disallows interest on the internal such case, like the other steps
revenue taxes in the sum alleged to prescribed as conditional to recovery,
have been illegally collected. The judge has been made one of the conditions

Page 1 of 2
Digest for Tax 2

which the lawmakers have seen fit. To


attach to the remedy provided. As the
Legislature in the exercise of its wide
discretionary power, has deemed the
remedy provided in section 1579 of the
Administrative Code to be an adequate
mode of testing the validity of an internal
revenue tax and has willed that such a
remedy shall be exclusive, the courts
not only owe it to a coordinate branch of
the government to respect the opinion
thus announced, but have no right to
interfere with the enforcement of such a
law.

Page 2 of 2

You might also like