DOJ Opinion No. 043, s. 1996

DOJ OPINION NO. 043 , s. 1996 April 26, 1996 Director Horacio C. Ramos Mines and Geosciences Bureau North Avenue, Diliman Quezon City Sir : This refers to your request for legal opinion as to whether or not fringe benefits, such as hazard pay and the benefits under the Magna Carta for Public Health Workers, are tax-exempt in view of Republic Act No. 7833, which excludes the benefits mandated under Republic Act No. 6686 and Presidential Decree No. 851, as amended, and other benefits from the computation of Gross Compensation Income for purposes of determining taxable compensation income. You refer, as basis of your instant query, to Section 3 of Revenue Regulations No. 2-95 of the Department of Finance, which implements the aforesaid R.A. No. 7833. We regret to have to decline rendition of the opinion requested. It is noted that the resolution of your query involves the interpretation and/or clarification of an administrative issuance of the Department of Finance upon recommendation of the Commissioner of Internal Revenue, relative to the exemption from income tax of year-end bonus (13th month pay) and other benefits. Pursuant to settled practice and precedents, the Secretary of Justice does not render or express any comment on question involving the interpretation or application of administrative rules and regulations, unless requested by the promulgating agency, since such matters are best left to the determination of the promulgating agency by reason of its familiarity with the intent and purposes of the issuance and the extent of the application thereof (Secretary of Justice Op. No. 74, s. 1989, No. 97, s. 1982). It is suggested, therefore, that the matter be threshed out with the Secretary of Finance and the Commissioner of the Bureau of Internal Revenue. Very truly yours, (SGD.) TEOFISTO T. GUINGONA, JR. Secretary