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    Gaston vs. Republic Planters Bank

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    Ishmael Salisip
    This case discusses whether stabilization fees collected from sugar producers and millers constitute public funds. The Court held that the fees are public funds for several reasons: 1) the fees are in the nature of a tax that the state has the power to impose to promote the sugar industry; 2) the fees accrue to Philsucom, a government entity, under law; 3) the fact that the fees are held for a special purpose does not prevent them from being considered state funds. While the fees benefit sugar producers, they are intended for the entire sugar industry and collected via the state's taxing power rather than for any private purposes.

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    © All Rights Reserved
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    Gaston vs. Republic Planters Bank

    Uploaded by

    Ishmael Salisip
    249 views1 page
    This case discusses whether stabilization fees collected from sugar producers and millers constitute public funds. The Court held that the fees are public funds for several reasons: 1) the fees are in the nature of a tax that the state has the power to impose to promote the sugar industry; 2) the fees accrue to Philsucom, a government entity, under law; 3) the fact that the fees are held for a special purpose does not prevent them from being considered state funds. While the fees benefit sugar producers, they are intended for the entire sugar industry and collected via the state's taxing power rather than for any private purposes.

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    Original Title

    348. Gaston vs. Republic Planters Bank

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    This case discusses whether stabilization fees collected from sugar producers and millers constitute public funds. The Court held that the fees are public funds for several reasons: 1) the fees are in the nature of a tax that the state has the power to impose to promote the sugar industry; 2) the fees accrue to Philsucom, a government entity, under law; 3) the fact that the fees are held for a special purpose does not prevent them from being considered state funds. While the fees benefit sugar producers, they are intended for the entire sugar industry and collected via the state's taxing power rather than for any private purposes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    249 views1 page

    Gaston vs. Republic Planters Bank

    Uploaded by

    Ishmael Salisip
    This case discusses whether stabilization fees collected from sugar producers and millers constitute public funds. The Court held that the fees are public funds for several reasons: 1) the fees are in the nature of a tax that the state has the power to impose to promote the sugar industry; 2) the fees accrue to Philsucom, a government entity, under law; 3) the fact that the fees are held for a special purpose does not prevent them from being considered state funds. While the fees benefit sugar producers, they are intended for the entire sugar industry and collected via the state's taxing power rather than for any private purposes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    348. GASTON VS.

    REPUBLIC PLANTERS BANK, 158 SCRA 626


    TOPIC: SPECIAL FUNDS
    FACTS: Petitioners are sugar producers and planters and millers filed a MANDAMUS
    to implement the privatization of Republic Planters Bank, and for the transfer of the
    shares in the government bank to sugar producers and planters. (because they are
    allegedly the true beneficial owners of the bank since they pay P1.00 per picul of sugar from the
    proceeds of sugar producers as STABILIZATION FEES).

    The shares are currently held by Philsucom / Sugar Regulatory Admin.


    The Solgen countered that the stabilization fees are considered government funds and
    that the transfer of shares to from Philsucom to the sugar producers would be irregular.
    ISSUE: W/N the P1.00 Stabilization Fees are Public Funds.
    HELD: PUBLIC FUNDS. While it is true that the collected fees were used to buy shares in RPB,
    it did not collect said fees for the account of sugar producers. The stabilization fees were
    charged on sugar produced and milled which ACCRUED TO PHILSUCOM, under PD 338.
    The fees collected ARE IN THE NATURE OF A TAX., which is within the power of the state
    to impose FOR THE PROMOTION OF THE SUGAR INDUSTRY. They constitute sugar liens.
    The collections accrue to a SPECIAL FUNDS. It is levied not purely for taxation, but for
    regulation, to provide means TO STABILIZE THE SUGAR INDUSTRY. The levy is primarily
    an exercise of police powers.
    The fact that the State has taken money pursuant to law is sufficient to constitute them as
    STATE FUNDS, even though held for a special purpose. Having been levied for a special
    purpose, the revenues are treated as a special fund, administered in trust for the purpose
    intended. Once the purpose has been fulfilled or abandoned, the balance will be transferred to
    the general funds of govt.
    It is a special fund since the funds are deposited in PNB, not in the National Treasury.
    The sugar planters are NOT BENEFICIAL OWNERS. The money is collected from them only
    because they it is also they who are to be benefited from the expenditure of funds derived from
    it. The investing of the funds in RPB is not alien to the purpose since the Bank is a commodity
    bank for sugar, conceived for the sugar industry growth and development.
    Revenues derived from taxes cannot be used purely for private purposes or for the exclusive
    benefit of private persons. The Stabilization Fund is to be utilized for the benefit of the ENTIRE
    SUGAR INDUSTRY, and all its components, stabilization of domestic and foreign markets, since
    the sugar industry is of vital importance to the countrys economy and national interest.

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