DOJ Opinion No. 095, s. 1992

DOJ OPINION NO. 095 , s. 1992 June 27, 1992 Secretary Ramon del Rosario, Jr. Department of Finance Manila Sir : This refers to the request of the Philippine Sports Commission ("PSC"), which was indorsed to this Office by your Department, for opinion regarding the second paragraph of Section 26 of its charter (Republic Act No. 6847). The aforecited provision of law reads: "To finance the country's integrated sport development program, including the holding of the national games and all other sports competitions at all levels throughout the country as well as the country's participation at international sports competitions, such as, but not limited to, the Olympic, Asian and Southeast Asian Games and all other international sports competitions, sanctioned by the International Olympics Committee and the International Federations, thirty percent (30%) representing the charity fund of the proceeds of six (6) sweepstakes or lottery draw per annum, taxes on horse races during special holidays , five (5) percent of the gross income of the Philippine Amusement and Gaming Corporation, the proceeds from sale of stamps as hereinafter provided, and three percent (3%) of all the taxes collected on imported athletic equipment shall be automatically remitted directly to the Commission and hereby constituted as the National Sports Development Fund. Further, the Philippine Postal Service is hereby authorized to print paper and gold stamps which shall depict sports events and such other motif as the Philippine Postal Service Office may decide at the expense of the Commission. Any deficiency in the financial requirements of the Commission for its sports development program shall be covered by an annual appropriation passed by Congress." (Italics supplied) prcd In particular, the PSC inquires as follows: "1. Whether the word 'taxes' includes all kinds of taxes i, e. franchise tax, tax on horse prizes, tax on winnings as well as documentary stamp tax considering that subject word, as written, connotes the whole bulk of all taxes imposed upon special holiday horse races and; "2. Whether the words 'automatically remitted directly to the Commission' means that such taxes on special holiday horse races should be submitted or released without deviation or straight to the [PSC]". We answer both queries in the affirmative. As regards the first query, it appears from the documents submitted to us that the taxes imposed on horse races on a special holiday are (a) the franchise tax, (b) the tax on horse prizes, (c) the tax on winnings and (d) the documentary stamp tax. Since the pertinent phrase which reads, "taxes on horse races during special holidays" uses the general term "taxes" without specification or qualification, we believe that all of the aforementioned taxes fall within the purview of said phrase. Well known in statutory construction are the rules that where the law does not distinguish, one should not distinguish (Robles vs., Zambales Chromite Mining Co., 104 Rel. 688; Lo Cham vs. Ocampo, 77 Phil. 636) and that where the law does not make exception, no such exception should be made from its application (Tolentino vs. Catoy, 82 Phil. 300). Anent the second query, we believe that the relevant clause which reads, "shall be automatically transmitted to the Commission" is couched in such clear and mandatory language which leaves no doubt as to the law's intent to have the taxes in question remitted direct to the PSC, after they have been properly ascertained. prcd This legislative desire is implicitly evident from the following exchange of views regarding House Bill No. 901 which became R.A. 6847, to wit: "MR. LAGMAN. I would like to refer the distinguished sponsor to Section 26, more particularly on page 14, lines 3 to 9, where it is provided that the proceeds of six sweepstakes or lottery draws per annum, taxes on horse races during special holidays, and 5 percent of the gross income of the Philippine Gaming Corporation shall be automatically remitted I would like to underscore that shall be automatically remitted directly to the commission and are constituted as the national sports development fund. . . . Most probably, the distinguished sponsor is aware of a national policy known as the one-fund concept, whereby all revenues and income of government agencies are supposed to be remitted to the National Treasury for eventual appropriation by Congress. Automatic remittance to recipients or beneficiaries is not encouraged because this would forestall the discretion of Congress to appropriate funds based on priorities and performance of agencies. Would the distinguished sponsor make this an exception to this policy known as one-fund concept? MR. CHAVES. My information as far as the funds of the PAGCOR is concerned is that these are not remitted to the National Treasury. As a matter of fact, at the moment, there are certain percentages of these funds, I think about 25 or 26 percent, which are remitted directly to the Office of the President and which are in turn disbursed at the discretion of the Office of the President. These are not remitted to the National Treasury." (Record of the House of Representatives, May 17, 1988, Vol. IV, p. 773) The foregoing conclusion is in accord with the consistent holding of the Supreme Court that "where the law speaks in clear and categorical language, there is no room for interpretation. There is only room for application." (Cebu Portland Cement vs. Mun. of Naga, 24 SCRA 708; People vs. Mapa, 20 SCRA 1164; Lizarraga Hermanos vs. Yap Tico, 24 Phil. 504). cdll The instant issues are resolved accordingly. Very truly yours, (SGD.) FRANKLIN M. DRILON Secretary