Hoa Hin & Co. Inc. and the special deputy of the Collector of Internal Revenue
Hoa Hin & Co. Inc, a large shipbuilding company with offices in Cebu was organized on February 7, 1918. In 1925 to 1928 it has an average gross receipts of P900,000,00. During that time the Manager of the company was Jose Sy Jong Chuy.
Pablo C. Reyes was appointed Special Deputy of the Collector of Internal Revenue especially assigned to income tax investigation. Collector Reyes prior to July 14, 1930 at various times requested Jose Sy Jong Chuy to bring the Chinese book of account of Hoa Hin & Co. Inc. for the years 1925 to 1928 to their office at the Provincial Building (Capitol) of Cebu.
The purpose of the request to bring the Chinese book of account was for income tax and other Internal Revenue Tax investigation. But Hoa Hin & Co. refused to do so, and advised Collector Reyes that the Chinese books of account were at his disposition in the offices of Hoa Hin & Co. Inc, where a suitable room and all necessary conveniences would be given to Collector Reyes for making any tax inspection or tax investigation.
Collector Reyes reacted by issuing a subpoena duces tecum on July 14, 1930 directing Jose Chuy commanding him to appear at the Internal Revenue Office in the Provincial Building of Cebu at 9 a.m. on July 16, 1930, bringing with him all the commercial books or other papers of Hoa Hin & Co. on which are recorded all the transactions showing income and expenses for the years 1925 to 1928. The subpoena was received by Jose Chuy on July 14, 1930.
The manager of Hoa Hin & Co. refused to comply with the subpoena and reiterated that the Chinese books of account could only be legally inspected and investigated at the offices of Hoa
Hin & Co. Inc. in the Municipality of Cebu (now City of Cebu), Province of Cebu.
Since there was a standstill, the Special Deputy of the Collector of Internal Revenue agreed on September 8, 1930 that only specified books of account would only be the subject of the inspection.
Hoa Hin & Co. Inc. still refused to comply with the order of the Internal Revenue thus Jose Chuy went to the Court of First Instance of Cebu. The case was raffled to Judge Borromeo Veloso and rendered judgment in favor of Hoa Hin & Co. Inc. through its manager, Jose Sy Jong Chuy, and declared that the subpoena issued by the Special Deputy of the Collector of the Internal Revenue was improperly issued.
Pablo C. Reyes, the Special Deputy of the Collector of the Internal Revenue challenged the ruling of Judge Veloso and appealed to the Supreme Court. Collector Reyes insisted that the Bureau of Internal Revenue is authorized to administer oaths, to take testimony in any official matter or investigation conducted by him within the jurisdiction of the Bureau and to issue a subpoena.
The Supreme Court on December 22, 1933 through the American Associate Justice of the Supreme Court Malcolm said that the subpoena issued by Mr. Pablo Reyes of the Bureau of Internal Revenue was not properly issued in accordance with law because the showing of relevancy was not sufficient to justify enforcing the production of the Chinese books as it failed to specify the particular books desired.
The decision of the Supreme Court brought stability in the commercial establishments in Cebu as it demonstrated the protection of the individual citizen of whatever class or nationality against an unjust inquisition of his books and papers by a government employee.
Hoa Hin Co. Inc. in 1957 was renamed as Cebu Shipyard and in 1998 renamed as Keppel Philippines. One of its founders of the company was Lim Tian Teng. A street in Cebu City formerly known as the Vicente Ranudo Extension has been renamed after him on May 16, 2007 by virtue of City Ordinance No. 2122.
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