DOJ Opinion No. 018, s. 1998

DOJ OPINION NO. 018 , s. 1998 February 4, 1998 Mr. Wilhelm D. Soriano Administrator Overseas Workers Welfare Administration OWWA Center, F.B. Harrison St., Cor. 7th St., Pasay City Sir : This has reference to your request for opinion or ruling on the following matters: "(a) the legality of the "net of tax" proviso contained in the contract between the OWWA and Baby R. Nebrida. (b) can OWWA legally pay the "replay" episode based on the certification issued by RPN 9 regarding the alleged industry practice of issuing one replay for a 13-episode series, even if it was not stipulated in the contract? (c) can OWWA legally treat the tribute to Rodel Naval as one complete episode, even if the same was not stipulated in the contract? You state that in 1994, OWWA entered into a contract with Baby R. Nebrida for the production and airing of a one season (13-episode) drama anthology depicting the plight of Overseas Filipino Workers entitled "Lumayo Ka Man. . . Pinoy Ka Pa Rin". dctai You further state that out of the thirteen (13) episodes stipulated in the contract, the actual airing consisted of eleven (11) episodes, one (1) replay and one (1) tribute to Rodel Naval. For this reason, you likewise state that Miss Nebrida was paid only for the eleven (11) episodes, computed based on the contract amount of P6,015,000.00 for thirteen (13) episodes, less the E-VAT of 10% and the P1.5 Million advanced to her by RPN 9, which shall be offset against the receivables of OWWA from the same TV Station consisting of the proceeds from commercial advertisements and sponsorships of the program. However, you state that Ms. Nebrida is of the belief that she should be paid the full contract amount of P6,015,000.00 because of the "net of tax" provision in the contract; that it is an industry practice to have one replay in a thirteen (13)-episode series; and that the tribute to Rodel Naval, who actually sang/popularized the theme song and title of the drama series, should also be considered one episode. We are constrained to decline the rendition of opinion on your queries, with deep regret, due to the following reasons: ONE. The resolution of your queries necessitates the interpretation of the subject contract which involves the substantive rights of a private party. Since the opinion of the Secretary of Justice is merely advisory in nature, such opinion would not be binding upon said private party, who, if adversely affected by such opinion, may take issue therewith and contest it before the courts. As a matter of policy, the Secretary of Justice has consistently refrained from rendering opinion on questions which are justiciable in nature or those which may be the subject of litigation before the courts. (Secretary of Justice Op. No. 91, s. 1957; Ops. No. 19 and 92, s. 1971; Op. No. 108, s. 1978 and Op. No. 46, s. 1981) TWO. The resolution of the first query inextricably requires the interpretation of the National Internal Revenue Code, as amended by the "Expanded Value-Added Tax Law", which is well within the province of the Bureau of Internal Revenue of the Department of Finance, which has been designated as the implementing agency of the aforesaid law. The first query, therefore, must have been posed to the Bureau of Internal Revenue, for it involves a matter within its policy-sphere and jurisdiction. This time honored policy is dictated not only by practical consideration but by a sincere respect for the expertise on, and familiarity with, the policies relating to the subject, and the rightful exercise of jurisdiction by a co-equal and coordinate government office (Secretary of Justice Op. No. 1, 1983; No. 97, s. 1982; No. 123, s. 1980; and No. 149, s. 1976). THREE. Any opinion that may be rendered by this Department on the subject matter of your queries would necessarily involve an interpretation of the contract between the OWWA and Baby R. Nebrida. The Secretary of Justice does not render opinion or give legal advise on issues involving interpretation of contracts (Secretary of Justice Op. No. 10, s. 1979). Please be guided accordingly. Very truly yours, (SGD.) SILVESTRE H. BELLO III Acting Secretary