International Law Notes Process in treaty making 1. 2. 3. 4. 5.

Negotiation Signature Ratification Exchange of Instrument Publication and Registration

reservations made by the state are not among those which are specified. 3. Reservation is incompatible with the object and purpose of the treaty. Entry into force -The date of effectivity of a treaty as provided under the treaty stipulations. -needs consent of all contracting parties of the treaties. Fundamental principles governing treaties 1. Pacta sunt Servanda 2. Rebus sic stantibus -things/provisions remain as they are Effect: Valid if the change is not a fundamental change. Invalid if the change is fundamental. Limitations: Pacta sunt servanda a. The vital change must be unforeseen and should not be caused by the party making them. b. It must be invoked within a reasonable time. c. Cannot operate retroactively upon provision rules Rebus sic stantibus a. Fundamental change must have occurred with respect to circumstances existing at the time of the conclusion of the treaty. b. Existence of those circumstances which constituted a basis of the consent of the parties bound by the treaty.

*The provisions of the treaty must be agreed upon by both parties (Bilateral act) *Concurrence by the members of the Senate *All members of the UN under UN Charter must register 8 copies to the secretariat. If not registered/published, the provision of the treatises cannot be enforced by the UN and its body. Binding Effect of a Treaty -Binding only upon its signatories Instances where 3 states are not signatories: 1. If a treaty is just a mere formal expression of a customary international law. 2. When the treaty itself extends its benefits to 3rd states who are not signatories. Reservations -it is a unilateral statement of a state whereby it excludes, modifies, or alters the legal effects of certain provisions of a treaty. When are reservations not allowed? 1. When the treaty provides that there are no reservations allowed. 2. When the treaty itself provides a specific reservation. However, the
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c. The fundamental change has radically transformed the extent of the obligations still to be performed under the treaty. Change in territories -successor is not bound to any obligation except by the predecessor. Interpretation of treaties 1. Must be interpreted in good faith 2. Must be interpreted in accordance with the provisions in its ordinary and common usage. Termination of Treaties 1. 2. 3. 4. 5. 6. 7. Expiration of term Accomplishment of purpose Impossibility on performance Loss of subject matter Novation desistance of parties Extinction of one of parties of treaty is bipartite 8. Occurrence of vital change of circumstances 9. Outbreak of war 10. Voidance of the treaty RSS -severance of diplomatic or consular relations Authorities: 1. Mutual agreement of the signatories 2. Intl court 3. Treaty itself Termination of diplomatic relations: 1. Expiration of term 2. Accomplishment of purpose

3. 4. 5. 6. 7. 8.

Withdrawal of any party Extinction of one of the parties Loss of subject matter Rebus sic stantibus War or outbreak of war Severance of diplomatic or consular relations 9. When the treaty is declared void due to defects or incompatibility with intl law or UN charter. Pacific Settlement of Intl Disputes To pacify disputing states for peaceful settlement

Nature: Consensual. No party is ordered to submit to the issue without its consent. Dispute -disagreement on point of law or fact or conflict on legal views International Dispute -disagreement between or among states Grounds of legal disputes 1. Interpretation of a treaty 2. Any question involving international law 3. Existence of any fact which if established would constitute a breach of an international obligation. Types of Settlement 1. Negotiation -discussion of the parties -state itself would conduct the relations with one another and will discuss the possibility of solutions which would be beneficial to both states.

2. Good offices - A 3rd party is involved 3. Arbitration - Settlement of dispute by means of a binding award based on international law and as a result , mutual undertaking would be accepted by both parties. 4. Judicial settlement - Settlement made by an intl court or tribunal based on intl laws. Principle of free determination a. Competence of arbitral tribunal b. Law applied c. Procedure to be followed *both parties freely choose arbitrators Compromis d Arbitrage - Agreement to arbitrate a. Must contain questions to be resolved b. Methods of selecting arbitrators and their numbers c. Venue for arbitration d. Must contain stipulations as to expenses e. Arbitral award f. Laws of procedure to be followed g. Laws to be applied Judicial settlement Settled by an intl court or tribunal. Permanent in nature Arbitration Settled by an arbitral tribunal Temporary in nature

1. The state against which reprisals are taken must be guilty of breach in intl law. 2. There must be an attempt with success to obtain redress from the delinquent state. 3. The acts of reprisal must not be excessive. Kinds of Reprisal 1. Reprisal as a form of Self-help - This is resorted to for the purpose of settling dispute without going to war. 2. Reprisal taken by belligerent state in the course of war. - In order for belligerent states to observe or obey the laws of war. Forms of Reprisal 1. 2. 3. 4. 5. 6. 7. 8. Military occupation Display of force Seizure of ships at sea Seizure of properties of the nationals of the delinquent state Freezing the assets of a delinquent state Embargo Boycott Pacific blockade

Embargo forcible detention of the delinquent states by the offended states.

Kinds of embargo Criteria for legitimacy of Reprisal 1. Civic or Pacific Embargo - Embargo employed by state to its own vessels.

2. Collective embargo - Group of states employing embargo Pacific Blockade Boycott Refusal to deal with delinquent states, commercially; in terms of goods or business. Prevents access to entry or exit ports to any states of delinquent states. Done in times of peace.

Terms used in war 1. Suspension of arms - Temporary cessation of hostilities by agreement of local commanders for: a. Collecting and gathering of the wounded b. Burial of the dead 2. Armistice - Suspension of all hostilities within a certain area or entire region agreed upon by the belligerent govt for: a. Arranging the terms for peace 3. Ceasefire - Unconditional stoppage of hostilities by order of an intl body like the Security Council for employing peaceful means 4. Truce - Ceasefire with conditions attached. 5. Capitulations - Surrendering of military troops, forts or districts in accordance with the rules of military honors Termination of war 1. Agreement - Entering in treaty of peace 2. Unilateral declaration 3. By simple cessation of hostilities (without formal agreement to enter into treaty of peace.)

Collective measures under the UN Charter -systems of peace enforced under the UN Charter. Effects of war on: 1. 2. 3. 4. 5. 6. Diplomatic or consular relations Enemy persons Enemy property Trading and intercourse Contracts Treaties

Laws of War 1. 2. 3. 4. 5. Armed hostile conflict Armed conflict Battle Subject to military discipline Under a responsible command

*defensive war is valid *International humanitarian law Commencement- commission by an act of force by one party with animo belligerendi.

Notes in Taxation Deductions -items or amounts which the law allows to be deducted from the gross income to arrive at a taxable income. Basic Principles of Deductions a. A taxpayer seeking deduction must point to some specific provision of the law authorizing the deduction. b. Must prove that he is entitled to the deduction. i.e, receipt *tax exemptions are strictly construed in favor of the govt and against the taxpayer. Why? lifeblood doctrine. Individuals allowed to make Deductions 1. Individual citizens and resident aliens 2. Non-resident alien engaged in trade or business. 3. Members of GPP 4. Domestic corps. 5. Resident foreign corp. Items of Deduction 1. Ordinary and necessary business expenses 2. Interest 3. Taxes 4. Losses 5. Bad debts 6. Depreciation of property 7. Depletion of oil, gas, wells or mines 8. charitable and other contributions 9. research and development 10. pension, trust, contribution of employees 11. premium payments on health or hospitalization insurance. 1. EXPENSES Requisites for it to be deductable: a. Must be ordinary and necessary b. Must be paid out or incurred within the taxable year c. Must be paid out or incurred in carrying a business or trade d. Must be substantiated by receipts e. Must not be contrary to law, public policy or morals f. Must be reasonable g. If it is subject to withholding tax, it must be properly withheld and remitted to BIR. Ordinary It is normal or usual in relation to the taxpayers business.

Necessary Appropriate and development of business. useful in the the taxpayers

Kinds of Business expenses a. Compensation for personal services -personal service must actually be deductable -compensation is paid for such service -the amount paid must be reasonable b. Travel expense -paid or incurred while away from home -incurred in pursuit of trade or business *meal allowances, lodging, transpo.

c. Rentals -the property rented out must be used in trade, business or profession -taxpayer made as a condition to the continued use or possession of the property. d. Entertainment, amusement, recreation -It must be connected directly to the development, management, and operation of a trade or business. -directly related to the furtherance of the conduct of trade, business or profession. -must be reasonable -must be substantiated by receipts or proper pieces of evidence. -must not be contrary to law, morals, public order or policy. e. Cost of material and supply -incurred in relation of trade, business or profession f. Repairs

Requisites: a. There must be an indebtedness b. The indebtedness ust be that of the taxpayer c. Must be legally due d. Must be stipulated in writing e. Paid/incurred during the taxable year f. Must not be between related taxpayers -ie. Members of a family, fiduciary, and trust. 3. TAXES a. Payment must be for taxes b. Imposed by law on the taxpayer c. Incurred during the taxable year d. Not excluded by law 4. BAD DEBTS -worthless/ uncollectible -taxpayer is the creditor Requisites: a. Existing indebtedness due to the taxpayer must be valid and legally demandable b. Connected with the taxpayers trade, business, or profession c. Must not be between related taxpayers d. Actually ascertained to be worthless if uncollectible as of the end of the taxable year e. Must be actually charged off in the book of accounts of taxpayer and must be indicated as uncollectible and worthless. Factors:

MINOR- must be necessary and ordinary to keep the equipments in good working condition. -deductable MAJOR- to prolong equipments/assets. -non-deductable the span of

2. INTEREST -payment for the use/bearance of money.

a. The debtor has no property of visible income b. When the debtor has been judicially declared as bankrupt or insolvent. c. There are numerous debtors with small amount of debts d. The collection should entail greater expenses that that of the collection. 5. DEPRECIATION -The gradual diminution in the service or the useful value of intangible things due to the exhaust ion, wear and tear and due to normal obsolescence. Requisites: a. Allowance for depreciation must be reasonable b. It must be for property arising out of its use in the trade, business or profession. c. The allowance must be charged off within the taxable year d. The schedule of allowance must be attached. 6. DEPLETION OF OIL, GAS AND WELLS - Exhaustion of natural resources - Deduction can be claimed by an individual who has economic interest over the resources. 7. CHARITABLE AND OTHER CONTRIBUTIONS Requisites a. They must be actually paid or made to the Phil. Govt or any political subdivision exclusively for public purpose made within the taxable period.

b. Must not exceed 10% for individuals, 5% for corp. in the taxable income of the taxpayer. 8. RESEARCH AND DEVELOPMENT -cost for the improvement of processes and formulas as well as the development for the improvement of new products. Requisites: a. It must be paid or incurred by reason of the trade, business, or profession. b. Must be paid or incurred during the taxable year. 9. PENSIONS, TRUST AND CONTRIBUTION Requisites a. the employer must have established or funded a pension or retirement plan. b. Pension or retirement plan must be reasonable c. The amount contributed must no longer be the subject for the disposition and control of the employer. Tax Return -report made by a taxpayer to the BIR of all his: gross income received during the taxable year allowance for deduction exemptions income tax rate tax withheld if any tax to be paid or to be refunded

Individuals required to file Income tax return a. individuals

 resident citizen resident alien non-resident alien engaged in trade or business non-resident corporation b. Estate and Trust c. General professional partnership d. Corporations Special rules: a. Husband and Wife- one ITR for both of them. Provided that they are validly married and that they do not derive their income purely from compensation. Unmarried Minor -receives income from the property of a living parent. Parents pay. Donors tax -the minor will file ITR if the property was named Persons with disability a. b. c. d. Duly authorized Representative Guardian Other persons charged with the care of the disabled If a-d filed fraudulent entry or false representation, they would be liable and would assume responsibility. b. Estate and trust -Fiduciary is entrusted for the care and management of trustee

c. GPP -managing partner who will file ITR -filed and signed by the principal officer of the partnership. d. Corp. -the president, VP, or other principal officers which shall be sworn to by such offices to the treasurer or assistant treasurer.