Case No.

51
YU CONG ENG, ET AL., petitioners,
vs.
W. TRINIDAD, Collector of Internal Revenue, ET AL., respondents.
G.R. No. L-20479 | February 6, 1925
Nature of action:
Petition for prohibition and injunction
Relevant facts:
The allegations of the petition center on the unconstitutionality of Act
No. 2972, entitled AN ACT TO PROVIDE IN WHAT LANGUAGE ACCOUNT
BOOKS SHALL BE KEPT, AND TO ESTABLISH PENALTIES FOR ITS VIOLATION.
Section 1 of said act makes it unlawful for any person, company, partnership
or corporation engaged in commerce, industry or any other activity for the
purpose of profit in the Philippine Islands, in accordance with existing law, to
keep its account books in any language other than English, Spanish or any
local dialect.
On March 2, 1923, the agents of the Bureau of Internal Revenue, in the
exercise of their legitimate functions, inspected the books of account of the
Chinese merchant Yu Cong Eng. Upon finding that said books were not kept
in accordance with their understanding of the provisions of Act No. 2972,
they took possession of the merchant's books and referred the matter to the
city fiscal of Manila for appropriate action. It was alleged that that the
accused merchant had kept his books of account only in Chinese, thus
rendering it difficult for the agents and authorized representatives of the
Government of the Philippine Islands and of the City of Manila, to examine
and inspect the aforementioned books of account.
Issue:
Whether or not Act No. 2972 is unconstitutional.
Ruling:
Petition denied without costs.
Ratio decidendi:
The Act is a fiscal measure intended to facilitate the work of the
government agents and to prevent fraud in the returns of merchants, in
conformity with the sales tax and the income tax. Under the general police
power, persons and property in the Philippines have been subjected to
various kinds of restrictions and burdens, in order to secure the general
health, comfort, and prosperity of all. The police power is not limited to
regulations necessary for the preservation of good order or the public health
and safety, but the prevention of fraud, cheating, and imposition is equally

within its scope. The means to accomplish a necessary interference with

private business are no more oppressive upon individuals than is necessary
to maintain the State. The law is not intended for the convenience of the
trader or the protection of the creditors, but has relation to the public
welfare, to the power of taxation, to the right of the government to exist. The
Chinese must bear their just proportion of the tax burden, however
unwelcome it may be, without flinching.