Implementation of Republic Act No. 7167

May 28, 1992 BIR RULING NO. 169-92 Sec. 29 (1) 000-00 169-92 Mr. Agapito Padilla Office of the Regional Director Department of Public Works Region I San Fernando, La Union S i r : This refers to your letter dated February 14, 1992 requesting for a clarification regarding the implementation of Republic Act No. 7167. In reply, please be informed that pursuant to Revenue Memorandum Circular No. 1-92, Republic Act No. 7167, "AN ACT ADJUSTING THE BASIC PERSONAL AND ADDITIONAL EXEMPTION ALLOWANCE TO INDIVIDUALS FOR INCOME TAX PURPOSES TO THE POVERTY THRESHOLD LEVEL, AMENDING FOR THE PURPOSE SECTION 29, PARAGRAPH (II), ITEMS (1) and (2)(a), OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES" shall apply to earnings/income of individual taxpayers starting taxable year 1992 and not 1991 which shall be declared for income tax purposes in their tax returns to be filed on or before April 15, 1993. The reason for this is very well explained under RMC 1-92 in this wise: ". . . the provision that "this Act shall take effect upon its approval" (Sec. 3, R.A No. 7167) cannot be construed to mean that the law (R.A. No. 7167) shall be considered effective as of its approval by the President of the Philippines which was on December 19, 1991. It must first satisfy the legal requirement of publication and shall take effect after fifteen (15) days following the completion thereof, either in the Official Gazette or in a newspaper of general circulation in the Philippines pursuant to Article 2 of the Civil Code of the Philippines, as amended by Executive Order No. 200. "Moreover, it is a rule of statutory construction that all statutes are to be construed as having only a prospective operation unless the purposes and intention of the legislature to give them a retrospective effect is expressly declared or is necessarily implied from the language used. In every case of doubt, the doubt, must be resolved against the retrospective effect. (Montilla vs. Agustinian Corp., 24 Phil. 220)." llcd Very truly yours, JOSE U. ONG Commissioner of Internal Revenue