BIR Ruling [DA-065-02]

April 03, 2002 BIR RULING [DA-065-02] Hon. Karina C. David Chairperson Civil Service Commission Batasan Hills, Quezon City Dear Chairperson David : The Bureau of Internal Revenue respectfully requests the Commission's opinion on a matter concerning employee benefits and compensation. TIESCA Ms. Ma. Lourdes P. Lim and Mr. Norman D.L. Flores were hired by the Bureau as casual employees on April 16, 2001 and June 15, 2001, respectively. They were then assigned as Technical Assistants to the Commissioner of Internal Revenue, and the Deputy Commissioner of the Legal and Inspection Group (LIG), respectively. In such capacity, they were appointed to positions with a corresponding Salary Grade SG-25, for which Representation and Travel Allowance (RATA) is usually granted. Eventually, however, Ms. Lim and Mr. Flores who are still currently assigned at the Office of the Commissioner and the Office of the Deputy Commissioner (LIG) were accorded permanent status on August 1, 2001 and October 15, 2001, respectively. The items to which Ms. Lim and Mr. Flores were appointed are equivalent to the item of Director I, which is listed in the DBM's National Compensation Circular No. 67 (dated January 1, 1992) among those positions for which RATA may be paid. There is no specific mention in the Circular as to the effect of the status of an appointment (temporary/casual/contractual/permanent) on the payment of RATA, and the immediate presumption would be that permanent status is a prerequisite to the grant of RATA. Nonetheless, we have taken note of Paragraph 3.2 of said Circular, wherein it is stated: "3.2. RATA is attached to the performance of the duties and responsibilities of the incumbents of positions and not to positions as viewed and implemented before. . . Hence, only those officials and employees enumerated under Section 2 hereof and who are actually performing the duties and responsibilities of their positions shall be entitled thereto." (emphasis supplied.) Ms. Lim and Mr. Flores began receiving the RATA corresponding to their positions immediately after being accorded permanent employment status. However, the Bureau requests your opinion as to whether Ms. Lim and Mr. Flores may be paid the amount of RATA corresponding to their positions, for the months when they served as casual employees of the Bureau. We hope this inquiry merits your kind attention, and will be most appreciative of your counsel in our resolution of this issue. Very truly yours, (SGD.) ESTELITA C. AGUIRRE Deputy Commissioner