Gaston vs.

Republic Planters Bank

Post under case digests, Political Law at Monday, March 12,
2012 Posted by Schizophrenic Mind
Facts: Petitioners are sugar producers and planters and millers filed
a MA!AM"S to implement the pri#atization of $epublic Planters
%an&, and for the transfer of the shares in the go#ernment ban& to
sugar producers and planters' (because they are allegedly the true
beneficial owners of the ban& since they pay P1'00 per picul of
sugar from the proceeds of sugar producers as S)A%*L*+A)*,
-..S/
)he shares are currently held by Philsucom 0 Sugar $egulatory
Admin'
)he Solgen countered that the stabilization fees are considered
go#ernment funds and that the transfer of shares to from Philsucom
to the sugar producers would be irregular'
Issue1 2hat is the nature of the P1'00 stabilization fees collected
from sugar producers3 Are they funds held in trust for them, or are
they public funds3 Are the shares in the ban& (paid using these fees/
owned by the go#ernment Philsucom or pri#ately by the different
sugar planters from whom such fees were collected3
Held1 P"%L*4 -"!S' 2hile it is true that the collected fees were
used to buy shares in $P%, it did not collect said fees for the
account of sugar producers' )he stabilization fees were charged on
sugar produced and milled which A44$".! ), P5*LS"4,M,
under P! 667'
)he fees collected A$. * )5. A)"$. ,- A )A8', which is within
the power of the state to impose -,$ )5. P$,M,)*, ,- )5.
S"9A$ *!"S)$:' )hey constitute sugar liens' )he collections
accrue to a SP.4*AL -"!S' *t is le#ied not purely for ta;ation, but
for regulation, to pro#ide means ), S)A%*L*+. )5. S"9A$
*!"S)$:' )he le#y is primarily an e;ercise of police powers'
)he fact that the State has ta&en money pursuant to law is sufficient
to constitute them as S)A). -"!S, e#en though held for a special
purpose' 5a#ing been le#ied for a special purpose, the re#enues are
treated as a special fund, administered in trust for the purpose
intended' ,nce the purpose has been fulfilled or abandoned, the
balance will be transferred to the general funds of go#<t'
*t is a special fund since the funds are deposited in P%, not in the
ational )reasury'
)he sugar planters are ,) %..-*4*AL ,2.$S' )he money is
collected from them only because they it is also they who are to be
benefited from the e;penditure of funds deri#ed from it' )he
in#esting of the funds in $P% is not alien to the purpose since the
%an& is a commodity ban& for sugar, concei#ed for the sugar
industry< growth and de#elopment'
$e#enues deri#ed from ta;es cannot be used purely for pri#ate
purposes or for the e;clusi#e benefit of pri#ate persons' )he
Stabilization -und is to be utilized for the benefit of the .)*$.
S"9A$ *!"S)$:, and all its components, stabilization of
domestic and foreign mar&ets, since the sugar industry is of #ital
importance to the country<s economy and national interest'