DOJ Opinion No. 147, s. 1988

DOJ OPINION NO. 147 , s. 1988 July 15, 1988 Sec. Jose S. Concepcion, Jr. Department of Trade and Industry Trade and Industry Building 361 (Buendia) Sen. Gil J. Puyat Ave. Makati, Metro Manila Sir : This refers to your request for opinion on the correct interpretation of Letter of Instructions No. 1416 which suspended the payment of taxes, duties, fees, imposts and other charges, whether direct or indirect, due and payable to the national and local governments by the copper mining companies in distress. You state that in view of the improvement of the prices of copper, you have recommended to the President the lifting of the suspension of the payment of taxes and other charges by the distressed copper mining firms; that the Chamber of Mines has made representations that once the prices of copper decline again, the government should suspend anew tax payments with respect to those distressed mining companies; and that the view has been expressed that LOI 1416 was an emergency measure adopted by the former President in 1984 which can no longer apply today since suspension of tax payment can only be allowed by Congress. LLjur I find this view well taken. The subject LOI was enacted on July 17, 1984 at a time when the copper industry suffering from staggering cash deficits due to the depressed prices of copper (1st whereas as clause), as a consequence of which several mines . . . closed down while others [were] on the brink of stopping operations (2nd whereas clause) and it was found out that without government support, more copper mining companies will soon become insolvent, resulting in the virtual collapse of the industry and other industries dependent on it (3rd whereas clause), thus resulting in the loss of vitally-needed foreign exchange and unemployment (4th whereas clause). The issuance therefore directing the suspension of payment of all taxes , duties, fees, imposts and other charges, whether direct or indirect, due and payable by the copper mining companies in distress to the National and Local Governments subject to the condition, inter alia , that [t]he suspension of payment privilege shall be lifted once the world market price of copper reaches a level adequate to sustain by the operation of copper mines as determined by the Minister of Trade and Industry and subject to the approval of the President (Emphasis supplied). The abovequoted provision of LOI 14516 clearly, indicate the emergency characters of said issuance. It was adapted in response to an emergency character of said issuance, situation, namely, the unusually depressed prices of copper in the world market. Being an emergency measure, it must be temporary or it cannot be said to be an emergency (Araneta v. Dinglasan, 45 O.G. 4411). The rule is that the time a statute should be in force may be limited at the time it is enacted by fixing date, event or circumstance provided in the statute which triggers its termination, and when the time so limited expires, it will cease to operate (Cunningham vs. Smith, 53 P2d 870). Also pertinent is the rule that where the legislative intent to give a statute temporary duration is apparently to give a statute its provisions, such intent should be given effect without need of construction (Public Hospital Dist. vs. Taxpayers of Public Hospital Dist., 269 P2d 594). It is noted, in this connection, that there is in the LOI a mandate to withdraw the suspension of payment privilege in the event that the world market price for copper has increased to sufficient levels and it is believed that once the withdrawal is made, the LOI loses force and effect. prcd Furthermore, there is nothing in the LOI which specifically empowers the President to reimpose the suspension of payment of taxes in the event of a future decline in the prices of copper. What it essentially does is to direct the said suspension on the date of its promulgation and then authorize the President to approve the lifting of said suspension. Well known is the rule that legislative grants of sovereign power should be strictly construed (Gonzaga, Statutory Construction, p. 265). Please be advised accordingly. Very truly yours, (SGD.) SEDFREY A. ORDOEZ Secretary of Justice