DOJ Opinion No. 033, s. 1991

DOJ OPINION NO. 033 , s. 1991 March 6, 1991 Ms. Dorotea Campos-Filart President, University of Northern Philippines (UNP) Vigan, Ilocos Sur Madam : This refers to your request for a "definitive legal opinion "as to whether (RATA) Representation Allowance and Transportation Allowance clothing allowance and other allowance, "for expenses incident to the discharge of the duties of office are considered salary, pay, or compensation and therefore considered as taxable income." Your query is being raised in connection with the request of certain UNP officials that their RATA be excluded from the BIR W-2 forms, allegedly, because "RATA" is not salary, pay or compensation, hence, not subject to withholding tax. From the papers accompanying your request, it appears that the Regional Director, Region I, Department of Budget and Management (DBM) in his letter dated March 14, 1990 and DBM Memorandum dated January 24, 1986 have ruled that "RATA" is not salary, pay or compensation, hence, should be excluded from taxable gross compensation income and should not be subject to withholding tax (citing COA Memo dated March 22, 1984). On the other hand, in COA Memorandum No. 90-682 dated November 16, 1990 which quoted the telegram of Commissioner of Internal Revenue dated October 9, 1990, it is stated that: ". . . TOTAL COMPENSATION INCLUDES SALARIES, WAGES, ALLOWANCES INCLUDING REPRESENTATION AND TRANSPORTATION ALLOWANCES (RATA), FEES, HONORARIA, HAZARD PAY, BONUSES, CASH GIFTS AND OVER-TIME PAY, ETC." We regret we have to decline your request for opinion. As stated above, the DBM, COA, and BIR have expressed their respective views, opinions or rulings on the issue under consideration and for this Department to resolve the instant query would inevitably result in passing upon the correctness of the respective rulings of the said agencies. It is well-settled that this Department does not possess any reviewing authority over the rulings or official actuations of aforesaid agencies (Secretary of Justice Ops. No. 66, s. 1971; No. 99, s. 1978; and No. 204, s. 1989). Very truly yours, (SGD.) FRANKLIN M. DRILON Secretary