DOJ Opinion No. 045, s. 1999

DOJ OPINION NO. 045 , s. 1999 June 21, 1999 Hon Benjamin E. Diokno Secretary Department of Budget and Management Malacaang, Manila Hon. Leonora Vasquez-de Jesus Head, Presidential Management Staff and Cabinet Secretary Presidential Management Staff Malacaang, Manila Sir/Madam : Reference is made to two (2) communications from your respective Offices, dated May 8, 1999 and May 31, 1999, respectively, which seek the authoritative legal opinion/resolution of this Departments on the issue of whether or not the Additional Compensation Allowance (ACA) in the amount of Five Hundred Pesos (P500.00) per month granted under Administrative Order No. 53 dated May 17, 1993 is already taxable. cdtech It appears that the query has been precipitated by an official interpretation of Sub-Item No. 1.2 of the aforementioned Administrative Order by the Bureau of Internal Revenue declaring, among others, the taxability of the ACA. With deep regret, this Department has to decline the rendition of the opinion requested it appearing that the Bureau of Internal Revenue (BIR) has already expressed its views on the matter. The Secretary of Justice does not pass upon issues which have already been the subject of official action by other officials/offices over whose actuations he possesses no revisory authority (Secretary of Justice Ops. No. 6, s. 1993; No. 91, s. 1982; No. 19, s. 1981; No. 9, s. 1980; No. 99 s. 1978; No. 137, s. 1977; and No. 40, s. 1975); nor review or re-examine the rulings of the office charges with the implementation of the law involved (Ibid ., No. 3, s. 1993), unless requested by such office or agency to render the appropriate opinion. This practice has evolved not only from practical considerations but also out of respect and deference to the competence and expertise of the office having primary jurisdiction to resolve the matter and its familiarity with the policy repercussions of the question, as well as a logical recognition of the lawful exercise of an authority conferred by law ( Ibid ., No. 34, s. 1996). If reconsideration of the position of the BIR is desired, the request should be addressed to the Secretary of Finance who, under the law, is empowered to review the official actuations of the BIR Commissioner (see Sec. 4, Title I of the Tax Reform Act of 1997). Nonetheless, for information and guidance only, attention is invited to the wordings of Sub-Item No. 1.2 of Administrative Order No. 53 which specifically provides, as follows: "1.2. Extend the same privilege to the rest of the personnel of the government, which shall partake of an allowance and not subject to GSIS, HDMF Fund premiums and income tax deductions pending its formal integration into the basic pay of subject government personnel ." (Emphasis supplied) Very truly yours, (SGD.) JUSTICE SERAFIN R. CUEVAS Secretary