BIR Ruling

April 17, 1969 Atty. Martin Miras Culion, Palawan S i r : This refers to your letter addressed to His Excellency, the President of the Philippines dated January 14, 1969 requesting the suspension of tax collection being enforced by this Bureau against the Leper store-owners of Culion Sanitarium Proper, Culion, Palawan. cdta You stated that on December 23, 1968, the BIR Collection Agent of Coron, Palawan, thru the Office of the Chief Culion Sanitarium had served notice to patients who are store-owners within the radius of the Culion Sanitarium Proper to pay the taxes due from their respective stores effective January 1, 1969. You also alleged that during the administration of the late President Magsaysay, a delegation of patients from Culion, Palawan petitioned the President for the exemption of the Leper storeowners of Culion Sanitarium from the payment of revenue taxes; that the late President Magsaysay acting on the said petition, and pending legislative enactment providing for the exemption of the said Leper store-owners from payment of revenue taxes, directed this Office thru the former Secretary of Finance, Jaime Hernandez to order the suspension of tax collection from the said Leper store-owners; and that premised on the said suspension granted during the administration of the late President Magsaysay, you are now requesting for an extension or continuation of the same. In reply, I regret to inform you that your request for the suspension of tax collection against the Leper store-owners of Culion Sanitarium cannot be granted for lack of legal basis. There is no provision under the National Internal Revenue Code authorizing the President of the Philippines to suspend collection of internal revenue taxes from persons subject thereto. Neither is there any law expressly granting the President plenary power to suspend the enforcement of internal revenue taxes. The power of taxation is a constitutional mandate, the exercise of which is vested with the legislative department of our government. Being legislative, all the incidents thereto are within the control of the legislature. The purpose for which a tax shall be levied; the extent of taxation; the apportionment of the tax; upon what property or class of persons the tax shall operate; whether the tax shall be general or limited to a particular locality; and whether a tax shall be a charge upon both person and property, or only on land, are matters within the discretion of the legislature, and in respect to which its determination is final (Genet v. City of Brooklyn 99 N.Y. 296, 306, I N.E. 777). Granting of exemption or suspension from payment of tax are incidents of the power of taxation which are within the orbit of the legislative authority of Congress and may not be rightfully disturbed unless authorized by express provision of law. In view thereof, your request for the suspension of tax collection from the Leper store-owners of Culion Sanitarium Proper is hereby denied. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue