DOJ Opinion No. 001, s. 1998

DOJ OPINION NO. 001 , s. 1998 January 7, 1998 Hon. Macabangkit B. Lanto Acting Secretary Department of Tourism T.M. Kalaw St. Rizal Park, Manila Sir : This has reference to your request for opinion on "whether the Philippine Tourism Authority (PTA) and the Philippine Convention and Visitors Corporation (PCVC) . . . are still entitled, pursuant to their respective charters, to their share from the proceeds of the VAT (value added tax) on hotel room tax." It appears that in answer to a similar query, the Department of Finance (DOF) issued an opinion dated March 27, 1996 to the effect that PTA and PCVC are no longer entitled to the proceeds of the tax imposed on the use and/or occupancy of hotel rooms reasoning that: "PTA has ceased to share from the proceeds of hotel room tax by virtue of PD 564 issued on May 11, 1973, PD 564, amended PD 189 by deleting the hotel room tax as one of the PTA's sources of revenue. "With respect to PCVC's share . . . RA 7716 or the Expanded Value Added Tax Law does not retain the revenue sharing provisions which were previously observed for percentage taxes, such as the hotel room tax. . . ." Considering that you believe otherwise, you now seek our view on the matter. With regret, we have to decline the opinion requested for the following reasons: First . The Department of Finance has already rendered its opinion. As a matter of policy and official courtesy, the Secretary of Justice does not pass upon matters which have already been the subject of official action by other Officials/offices, in this case, the Department of Finance, a coordinate department, over which he exercises no revisory authority (Secretary of Justice Op. Nos. 7, 12 and 34, s. 1996; No. 89, s. 1994). Second . The resolution of your query would inevitably require an interpretation and/or examination of the provisions of the National Internal Revenue Code (NIRC), as amended by RA 7716, or the "Expanded Value Added Tax Law," a matter which pertains to the Department of Finance. Under Section 245 of the NIRC, in relation to Section 19 of RA 7716, it is the Secretary of Finance who is mandated to promulgate, upon recommendation of the Commissioner of Internal Revenue, all needful rules and regulations for the effective enforcement of the provisions of the Code. Pursuant to settled practice and precedents, the Secretary of Justice has consistently refrained from expressing his views on matters which fall within the official competence of another government office or agency out of deference for the competence and expertise of the office having primary jurisdiction over the matter involved (Id., No. 4, 1996) unless the head of said agency, as in this case, the Secretary of Finance, requests the opinion of this Department (Id., 19, s. 1996; No. 20, s. 1992; Nos. 97 and 139, s. 1982; No. 194, s. 1976). Very truly yours, (SGD.) TEOFISTO T. GUINGONA, JR. Secretary