KOPPEL (PHILIPPINES), INC., plaintif-appellant, vs. ALFREDO L. YACO, C!lle"t!# !$ Inte#nal Reven%e, &e$en&ant-appellee '.R. N!. L-*+ O"t!e# , /* FACS0 Plaintif is a "!#p!#ati!n &%l1 !#2ani3e& an& e4istin2 %n&e# an& 1 vi#t%e !$ t5e la6s !$ t5e P5ilippines, 6it5 p#in"ipal !7"e in 8anila, t5e "apital st!"9 !$ 65i"5 is &ivi&e& int! , s5a#es !$ P ea"5. 5e K!ppel In&%st#ial Ca# an& E:%ip;ent "!;pan1, a "!#p!#ati!n !#2an !#2ani3e i3e& & an& e4is e4istin tin2 2 %n&e# %n&e# t5e la6s la6s !$ t5e State State !$ Penns1l enns1lvan vania, ia, es> an& an& 6as 6as an& an& is t5e 5!l&e# 5!l&e# !$ t5e "!##e "!##esp! sp!n&i n&in2 n2 ;e#"5ant?s an& "!;;e#"ial #!9e#?s p#ivile2e ta4 #e"eipts. E45iite& H !$ t5e evi&en"e0 It is "lea#l1 %n&e#st!!& t5at t5e intent !$ t5is "!nt#a"t is t5at t5e #!9e# s5all pe#$!#; !nl1 t5e $%n"ti!ns !$ a #!9e# as set $!#t5 a!ve, an& s5all n!t ta9e p!ssessi!n p!ssessi!n !$ an1 !$ t5e ;ate#ials !# e:%ip;ent appl1in2 t! sai& !#&e#s !# pe#$!#; an1 a"ts !# &%ties !%tsi&e t5e s"!pe !$ a #!9e#> an& in n! sense s5all t5is "!nt#a"t e "!nst#%e& as 2#antin2 t! t5e #!9e# t5e p!6e# t! #ep#esent t5e p#in"ipal as its a2ent !# t! ;a9e "!;;it;ents !n its e5al$. e5al$. 5e C!%#t !$ Fi#st Instan"e 5el& $!# t5e &e$en&ant an& &is;isse& plaintif?s "!;plaint 6it5 "!sts t! it.
ISS %t, 65en t5e n!ti!n !$ le2al entit1 is %se& t! &e$eat p%li" "!nvenien"e, %sti$1 6#!n2, p#!te"t $#a%&, !# &e$en& "#i;e, t5e la6 6ill #e2a#& #e2a#& t5e "!#p!#ati!n as an ass!"iati!n !$ pe#s!ns. 5e "!#p!#ate entit1 is &is#e2a#&e& 65e#e it is s! !#2ani3e& an& "!nt#!lle&, "!nt#!lle&, an& its afai#s a#e s! "!n&%"te&, as t! ;a9e it ;e#el1 an inst#%;entalit1, inst#%;entalit1, a2en"1, "!n&%it !# a&%n"t !$ an!t5e# "!#p!#ati!n. SC #eas! #eas!ne& ne& t5at, t5at, in s! $a# as t5e sales sales inv!lv inv!lve& e& 5e#ein 5e#ein a#e a#e "!n"e# "!n"e#ne& ne&,, K!ppel !ppel P5ilippines, In"., an& K!ppel In&%st#ial Ca# an& E:%ip;ent "!;pan1 a#e t! all intents an& p%#p!ses !ne an& t5e sa;e> !#, t! %se an!t5e# ;!&e !$ e4p#essi!n, t5at, as #e2a#&s t5!se t#ansa"ti!ns, t5e $!#;e# "!#p!#ati!n is a ;e#e #an"5, s%si&ia#1 !# a2en"1 !$ t5e latte#. 5is is "!n"l%sivel1 "!n"l%sivel1 !#ne !%t 1 t5e $a"t, a;!n2 !t5e#s, t5at t5e a;!%nt !$ t5e s!-"alle& Bs5a#e in t5e p#!tsB !$ K!ppel (P5ilippines), In"., 6as %lti;atel1 le$t t! t5e s!le, %n#i&le& "!nt#!l !$ K!ppel In&%st#ial Ca# an& E:%ip;ent C!;pan1. C!;pan1. N! 2#!%p !$ %siness;en %siness;en "!%l& e e4pe"te& t! !#2ani3e a ;e#"antile "!#p!#ati!n t5e %lti;ate en& !$ 65i"5 "!%l& !nl1 e
p#!t i$ t5e a;!%nt !$ t5at p#!t 6e#e t! e s%e"te& t! s%"5 a %nilate#al "!nt#!l !$ an!t5e# "!#p!#ati!n, %nless in&ee& t5e $!#;e# 5as p#evi!%sl1 een &esi2ne& 1 t5e in"!#p!#at!#s t! se#ve as a ;e#e s%si&ia#1, #an"5 !# a2en"1 !$ t5e latte#. Evi&entl1, K!ppel In&%st#ial Ca# an& E:%ip;ent C!;pan1 ;a&e %s !$ its !6ne#s5ip !$ t5e !ve#65el;in2 ;a!#it1 //.= !$ t5e "apital st!"9 !$ t5e l!"al "!#p!#ati!n t! "!nt#!l t5e !pe#ati!ns !$ t5e latte# t! s%"5 an e4tent t5at it 5a& t5e nal sa1 even as t! 5!6 ;%"5 s5!%l& e all!tte& t! sai& l!"al entit1 in t5e s!-"alle& s5a#in2 in t5e p#!ts. SC $%#t5e# #%le& t5at, it "ann!t !ve#l!!9 t5e $a"t t5at in t5e p#a"ti"al 6!#9in2 !$ "!#p!#ate !#2ani3ati!ns !$ t5e "lass t! 65i"5 t5ese t6! entities el!n2, t5e 5!l&e# !# 5!l&e#s !$ t5e "!nt#!llin2 pa#t !$ t5e "apital st!"9 !$ t5e "!#p!#ati!n, pa#ti"%la#l1 65e#e t5e "!nt#!l is &ete#;ine& 1 t5e vi#t%al !6ne#s5ip !$ t5e t!talit1 !$ t5e s5a#es, &!;inate n!t !nl1 t5e sele"ti!n !$ t5e !a#& !$ Di#e"t!#s %t, ;!#e !$ten t5an n!t, als! t5e a"ti!n !$ t5at !a#&. P5ilippine "!#p!#ati!n "!%l& n!t p!ssil1 "!nt#avene 6it5 t5e A;e#i"an "!#p!#ati!n in t5is "ase %n&e# E45iit H. 5is $a"t ne"essa#il1 lea&s t! t5e in$e#en"e t5at t5e "!#p!#ati!n 5a& at least a Gi"e-P#esi&ent, an& p#es%;al1 als! a P#esi&ent, 65! 6e#e n!t #esi&ent in t5e P5ilippines %t in A;e#i"a, 65e#e t5e pa#ent "!#p!#ati!n is &!;i"ile&. I$ K!ppel (P5ilippines), In"., 5a& een inten&e& t! !pe#ate as a #e2%la# &!;esti" "!#p!#ati!n in t5e P5ilippines, 65e#e it 6as $!#;e&, t5e #e"!#& an& t5e evi&en"e &! n!t &is"l!se an1 #eas!n 651 all its !7"e#s s5!%l& n!t #esi&e an& pe#$!#; t5ei# $%n"ti!ns in t5e P5ilippines.
