DOJ Opinion No. 061, s. 1992

DOJ OPINION NO. 061 , s. 1992 May 14, 1992 Chairman Chulia J. Azarcon Tariff Commission 5th floor, PHC Building East Avenue, Quezon City M a d a m : This refers to your request for opinion in relation to the ruling of the Bureau of Internal Revenue(BIR) that taxes paid on commutable representation and transportation allowances (RATA) prior to January 1, 1991 are not refundable. You state that Commissioner Ong denied the retroactive application of the tax refund for the reason that the BIR ruling exemption RATA from withholding tax was issued only after a confirmation by the Secretary of Budget and Management that "RATA is in fact a reimbursement for expenses incurred in the performance of one's duties rather than as an additional compensation and, therefore, is not subject to tax". LLphil On the other hand, you claim that the tax-exempt status of RATA should apply not only in the year 1991 when subject BIR ruling was issued, but likewise to the previous years when said allowances were granted, following the legal maxim that the "the provisions of a law are effective upon approval of that law or as of the date specified therein". With regret, we are constrained to decline rendition of the requested opinion. The resolution of the present query would necessary involve a review of the ruling of the BIR which this Department would, as a matter of courtesy, refuse to do, unless the request should come from the BIR itself. Pursuant to established precedents, this Department has consistently desisted from passing upon the rulings and/or official actuations of other government offices over which the Secretary of Justice possesses neither revisory authority nor supervisory jurisdiction (Secretary of Justice, Ops. No. 22, s. 1977; No. 181, s. 1976; No. 9, s. 1987; and No. 48, s. 1990). Moreover, the opinions of the Secretary of Justice, being advisory in nature, cannot prevail over the rulings promulgated by the government agency primarily charged with the enforcement of the law involved (Id., No. 145, s. 1973; and No. 89, s. 1980) and would have no practical value if the agency wishes not to be so bound. prcd Very truly yours, (SGD.) EDUARDO G. MONTENEGRO Acting Secretary