DOJ Opinion No. 115, s. 1999

DOJ OPINION NO. 115 , s. 1999 December 16, 1999 Hon. Vicente C. Rivera, Jr. Secretary Department of Transportation and Communications The Columbia Tower Brgy. Wack-Wack, Ortigas Avenue 1555 Mandaluyong City Sir : This refers to your request for opinion on whether or not accrued leave credits of government employees commuted to cash (monetized), without regard to the number of days, are subject to income tax. This Office regrets that it is unable to render the opinion requested. The issue raised herein indubitably focuses on tax matters. It is noted that the Department of Finance (DOF), which has jurisdiction over the enforcement and collection of taxes, has as yet to express a ruling or opinion on the question herein presented. It is submitted that the DOF should first be accorded the opportunity to consider the aforestated question which involves matters within its policy-sphere and jurisdiction. This time-honored policy is dictated not only by practical considerations but by a sincere respect for the expertise on, and familiarity with, the policies relating to the subject, and the rightful exercise of jurisdiction by a co-equal and coordinate government office (Secretary of Justice Ops. No. 100, s. 1998; No. 7, s. 1996; No. 1, s. 1983; No. 97, s. 1982; No. 123, s. 1980; and No. 149, s. 1976). Moreover, it is noted that the Bureau of Internal Revenue (BIR) has issued BIR Ruling No. 016-96 dated February 20, 1996 and No. 099-92 dated March 20, 1992 relative to the instant query. The Secretary of Justice has time and again desisted from passing upon issues which have already been the subject of official action by other officials/offices over whose actuations he possesses no revisory authority ( Ibid ., Nos. 19, 56 and 60, s. 1996 and Nos. 70 and 98, s. 1998). Furthermore, the query involves an interpretation of the Civil Service law and rules, as well as of Joint Memorandum Circular No. 2-957 issued by the Civil Service Commission (CSC) and the Department of Budget and Management (DBM). Pursuant to settled practice and precedents, the Secretary of Justice does not render opinion or express any comment on questions involving the interpretation or application of administrative rules and regulations, unless requested by the promulgating agency/ies, since such matters are best left to the determination of the promulgating agency/ies by reason of its/their familiarity with the intent and purposes of the issuance and the extent of the application thereof ( Ibid ., No. 88, s. 1998). Very truly yours, (SGD.) JUSTICE SERAFIN R. CUEVAS Secretary