BIR Ruling

November 11, 1971 Honorable Cirilo Roy Montejo Delegate, First District of Leyte Suite 504 Manila Hotel Manila S i r : This is in connection with Resolution No. 557 of the 1971 Constitutional Convention which was referred to this Office for comment. cd Re : Resolution No. 557 Subjecting to income tax the salaries of the President of the Philippines, the Chief Justice and Associate Justices of the Supreme Court and other high Constitutional Officers of the Government . The above resolution proposes to tax the President of the Philippines, the Chief Justice and Associate Justices of the Supreme Court, the Auditor General, the Chairman and members of the Commission on Elections, the Presiding Justice and Associate Justices of the Court of Appeals, and all the judges of inferior courts. It is believed that the inclusion of this provision in the new Constitution is timely considering that the Government is in dire need of revenues to support its various projects and pay its long pending obligations. In this wise, every earner must be given the feel at least in the participation in the financing of the Government by making him bear his aliquot share of the cost of maintaining the same. To subject these Constitutional Officers to tax is merely to recognize that they also are citizens and that their particular function in the government does not generate an immunity from sharing with their fellow citizens the material burden of the Government whose Constitution and laws they are charged with administering. (Pls. see "O'Malley vs. Woodrough" 59 S Ct. 838, 122 A.L.R. 1379; Dissenting Opinion of Justices Ozaeta and Paras on "Gregorio Perfecto vs. Bibiano Meer" case, 85 Phil. 552 citing, among others, the following American references: Professor William Bennett, Munro, in his book the "Government of the United States" pp. 371-372, commenting of the decision of O'Malley Woodrough case; Clark, "Further Limitation Upon Federal Income Taxation" 30 Yale L. J. 75; Corwin, "Constitutional Law in 1919-1920" 15 Am. Political Sc. Rev. 635, 641-644; Powell. "The Sixteenth Amendment and Income from State Securities", National Income Tax Magazine (July, 1933), 5, 6; 20 Columbia L. Rev. 794; 43 Harvard L. Rev. 318; and 20 Illinois L. Rev. 376.) cdta For the foregoing consideration, this Office interposes no objection to the proposed resolution. It may be stated, however, in this connection, that the retirement and gratuity pays of these Constitutional Officers shall be exempt from income tax, just like any other employees of the Government. cdi Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue