DOJ Opinion No. 063, s. 1992

DOJ OPINION NO. 063 , s. 1992 May 19, 1992 Mr. Gerardo I. Ledesma, Jr. Acting Administrator KKK Processing Center Authority 7th Floor, Hanston Bldg., Emerald Avenue Pasig, Metro Manila Sir : This refers to your request for opinion on the taxability of the terminal leave pay or the cash value of the accumulated leave credits, in the light of the Supreme Court decision in Adm. Matter No. 90-6-015-SC re: Request of Atty. Bernardo Zialcita for the Reconsideration of the Action of the Financial and Budget Office (190 SCRA 851 [1990]). dctai Specifically, you seek opinion "if terminal leave pay or cash value of accumulated leave credits of employees of KKK Processing Center Authority, a government corporation with original charter, who resign from the service through no fault of their own but without reaching the compulsory retirement age of 65 years, are subject to withholding tax, or if such terminal leave pay, falls within the enumerated exclusions from gross income and is therefore not subject to tax". With regret, we are constrained to decline rendition of the opinion requested. It is noted that the subject of your query relates to exemption from payment of "withholding tax" over which the Bureau of Internal Revenue has primary jurisdiction (Sec. 3, The National Internal Revenue Code of 1986, as amended). As a matter of propriety and official courtesy, the Secretary of Justice does not pass upon matters pertaining to the official cognizance of another office or agency, in this case, the Bureau of Internal Revenue, unless requested by such office or agency (Secretary of Justice Op. No. 72, s. 1983; No. 147, s. 1987). prcd Nonetheless, for your guidance only, attached is a copy of Opinion No. 116, s. 1991 of the Secretary of Justice. Very truly yours, (SGD.) EDUARDO G. MONTENEGRO Acting Secretary