DOJ Opinion No. 128, s. 1995

DOJ OPINION NO. 128 , s. 1995 December 8, 1995 The General Manager Philippine Tourism Authority DOT Bldg., T.M. Kalaw St. Teodoro F. Valencia Circle Ermita, Manila Sir : This has reference to your request for opinion on "whether or not Philippine Tourism Authority's (PTA) travel tax collection imposed under R.A. 6141 are considered corporate revenues and thus, subject to cash dividend." It appears that you are raising the issue in the light of Republic Act No. 7656 which requires government-owned and controlled corporations to remit cash dividend of fifty percent (50%) of their annual earnings, and which the Department of Finance is now collecting from your Office. LLphil You maintain, however, that the Department of Finance (DOF) cannot impose upon the PTA the obligation to remit said cash dividend in view of Section 17 of Executive Order No. 518 which exempts from the coverage R.A. No. 7656 those government-owned and controlled corporations whose profit distribution is provided for by their respective charters; that although the PTA is a government-owned and controlled corporation, it does not have annual earnings as contemplated by R.A. No. 7656 considering that its earnings, with corresponding percentage, for distribution to other government agencies; and that, the travel taxes collected actually constitute public funds for the National Treasury and do not form part of the earnings of the PTA. We regret that we are unable to render the opinion requested. It is noted that the Department of Finance, a co-equal and coordinate Department in the executive branch has already taken a stand on the matter. Pursuant to policy and precedent this Office has consistently declined to render opinion on queries which involves a ruling/or actuation of another agency (Sec. of Justice Opn. No. 5, s. 1994; No. 9, s. 1987; and No. 48, s. 1990). Considering, however, the nature of the issue raised, adjudication and settlement thereof is, to our mind, possible under P.D. No. 242, as modified by Chapter 14, Book IV of the Administrative Code of 1987 (E.O. No. 292), the pertinent provisions of which read: "CHAPTER 14. Controversies among Government Offices and Corporations . "SEC. 66. How Settled . All disputes, claims and controversies, solely between or among the departments, bureaus, offices, agencies and instrumentalities of the National Government, including Government-owned or controlled corporations, such as those arising from the interpretation and application of statutes, contracts or agreements, shall be administratively settled or adjudicated in the manner provided in this Chapter. This Chapter shall, however, not apply to disputes involving the Congress, the Supreme Court, the Constitutional Commissions, and local governments. SEC. 67. Disputes involving Questions of Law. All cases involving only questions of law shall be submitted to and settled or adjudicated by the Secretary of Justice as Attorney-General of the National Government and as ex officio legal adviser of all government-owned or controlled corporations. His ruling or decisions thereon shall be conclusive and binding on all parties concerned. SEC. 68. Disputes involving Questions of Fact of Law . Cases involving mixed questions of law and of fact or only factual issues shall be submitted to and settled or adjudicated by: (1) The Solicitor General, if the dispute, claim or controversy involves only departments, bureaus, offices and other agencies of the National Government as well as government-owned or controlled corporations or entitles of who he is the principal law officer or general counsel; and (2) The Secretary of Justice, in all other cases not falling under paragraph (1)." In this connection, we are enclosing a copy of this Department's Administrative Order No. 121, providing for the rules concerning the administrative settlement or adjudication of cases under P.D. No. 242, as amended. Very truly yours, (SGD.) TEOFISTO T. GUINGONA, JR. Secretary