BIR Ruling

February 6, 1973 The Honorable Judge Jesus P. Morfe Branch XIII Court of First Instance Manila S i r : This refers to your letter dated January 30, 1973 requesting for reasons stated therein, suspension of the withholding tax provisions of the National Internal Revenue Code insofar as the salaries of members of the Judiciary are concerned. In reply, I have the honor to inform you that in view of the fact that members of the Judiciary are now subject to income tax on their salaries received as such (Section 6, Article XV, New Constitution), said salaries are consequently subject to the withholding tax provisions under Supplement A to Title II of the Tax Code, pertinent portions of which provides: "ART. 2. Income tax collected at source (a) Requirement of withholding . Every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with a withholding table to be prepared by the Secretary of Finance. ART. 5. Return and payment in case of Government employees . If the employer is the Government of the Philippines or any political subdivision, agency or instrumentality thereof, the return of the amount deducted and withheld upon any wages shall be made by the officer or employee having control of the payment of such wages, or by any officer of employee duly designated for the purpose. The Commissioner of Internal Revenue does not have the power and authority to suspend the effectivity and application of the withholding tax provisions on the salaries of the employees subject thereto. In view thereof, it is regretted that your request has to be, as it is hereby denied for lack of legal basis. aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue