DOJ Opinion No. 159, s. 1982

DOJ OPINION NO. 159 , s. 1982 July 26, 1982 The Deputy Minister Ministry of Finance Manila Sir : The refers to your request for opinion "whether the Minister of Finance may appoint a qualified person to the position of Assistant City Assessor of Tagaytay City". On the basis of our extended discussion set forth hereunder, we answer the query in the affirmative. cdlex It appears that the query has arisen in view of the "consistent refusal" of the incumbent City Assessor of Tagaytay City to appoint "due to personal reason" the person had been designated Acting Assistant City Assessor, Mr. Felicisimo Tarcelo. Section 88 of the Real Property Tax Code (P.D. No. 464), provides that the Assistant Provincial or City Assessor in each Assessment office "shall be appointed by the provincial or city assessor in conformity with the provisions of the Civil Service Law, subject to the approval of the Secretary of Finance." Under the aforecited provision, there are two district acts to be done by two different officials for the completion of the appointment process, namely: the appointment by the city or provincial assessor, as the case may be, in conformity with the Civil Service Law, and its approval by the Minister of Finance. At first blush, it would seem that the two acts are equally indispensable in the appointment process under section 88. However, the use of the clause "subject to the approval of the Secretary (Minister) of Finance" conveys the legislative intent to vest in said officer the final validating act in the appointment process. This is as it should be, considering that the initial act in the appointment process is to be performed by an official subordinate to, and subject to the supervision of, the approving official. While it may be postulated that unless the City Assessor makes the appointment, the Minister of Finance would have nothing to approve, it is believed that the law, in locating the performance of related functions in different officials who bear a subordinate-superior relationship, could not have contemplated the emergence of a situation where the act of the subordinate could prevent the implementation of the law with which the superior official is charged. Should such a situation arise, as in the instant case, we believe that the superior official may exercise the act entrusted to the subordinate official. Since the tow acts are interrelated parts of the same official function and the initial act is to be performed by a subordinate official, the initial act should be viewed as part of the greater act which is the power to approve such appointment. LexLib Furthermore, the Ministry of Finance has the primary responsibility for the proper, efficient and effective collection/administration of the property tax provided in P.D. No. 464. As head of such agency, the Minister of Finance should not be bereft of authority to cope with contingencies that may conceivably arise in carrying out the purposes of the Code. The attainment of such purposes cannot be frustrated or thwarted by the refusal of any subordinate to do an act the performance of which is entrusted to him by law. Indeed, in the process of implementation or construction, the meaning of a statute may be expanded beyond the precise words used in the law, and words and phrases may be enlarged, where that is necessary to give effect to the manifest intention of the legislature and to carry out the general scope and purpose of the Act (73 Am. Jur. 2d, pp. 394-395); the reason of the law, as indicated by its general terms, should prevail over its letter when the plain purpose of the act will be defeated by strict adherence to its verbiage (Pickett v. United States, 216 U.S. 456, 54 L.Ed. 655; 39 S.Ct. 265 [1910]; Paterson v. Wisener, 218 Ala. 137, 117 So. 663 [1928]; Commerce Trust Co. v. Paulan, 271 P. 388, 63 A.L.R. 384 [1928]; and the literal meaning of the terms employed in a statute should not be allowed to defeat the manifest policy intended to be promoted (United States v. N.E. Rosenbloom Truck Lines, 315 U.S. 50; 86 L.Ed. 671, 62 S.Ct. 445[1942]; City Bank Fermer's Trust Co. v. New York C.R. Co., 253 N.Y. 49, 170 NE 489, 69 A.L.R. 94 [1930]). Moreover, under the Integrated Reorganization Plan (IRP) implemented by Presidential Decree No. 1, the Department [now Minister] of Finance is charged with carrying out the declared national policy that "the revenue generating agencies shall occupy a special role in the structure of government . . . for [the] central direction of effective tax collections" (Par. 1, Art. I, Chapter I, Part IV, IRP); and accordingly, several staff units have been created to assist the Minister of Finance in carrying out such declared policy, among which is the Local Government Service which is responsible for reviewing the financial affairs of local governments and staff unit shall have a Real Property Tax Assessment Division and a Local Treasury Operations Division. (Par. 8, Art. II, Chapter I, Part, IV, ibid .) The legislative intention is thus clear that the city and provincial assessment offices created in every province and city shall be placed under the jurisdiction of the Ministry of Finance. This intention is made clearer by the provision of PD No. 464 making the Ministry of Finance primarily responsible for the proper, efficient and effective administration of the real property tax provided in said Code. (Sec. 4) It is useful to note that prior to the promulgation of PD No. 464, the power to appoint provincial and city assessors was lodged in the provincial governors and city mayors, respectively. (Sec. 4, R.A. No. 5185), However, the transfer of such power by virtue of the aforecited decree (Sec. 88) to the President indicates the intention to remove the power of direct supervision and control over the heads of the assessment offices in provinces and cities from the provincial governors and city mayors as executives of local governments and to place such offices under the jurisdiction of the Ministry of Finance in accordance with the structural organization of said Ministry pursuant to the Integrated Reorganization Plan and Pd No. 464, which directed the creation of the aforementioned divisions in the Ministry of Finance for the administration of the real property tax. Finally, it should be borne in mind that according to Sections 4 and 91 of PD 464, the Minister of Finance shall have "direct executive supervision" over local assessment affairs in the assessment offices of provincial, city and municipal governments. The use of the word " direct " to qualify the power of "executive supervision" of the Minister of Finance cannot be without purpose. The use of the term gains significance if taken in the light of the relationship of the offices and functions of city and provincial assessment with the Ministry of Finance as envisioned in the Integrated Reorganization Plan and in PD 464. While these offices are situated in the respective political subdivisions where they are created, they may not now be considered strictly as part of local governments, in view of the clear legislative intent expressed in PD 464 and related issuances, as earlier pointed out, to place these offices under the jurisdiction of the Ministry of Finance. LexLib Accordingly, the Minister of Finance as Ministry Head and alter ego of the President in the administration and implementation of revenue laws may exercise his power of control, direction and supervision over all bureaus and offices under his jurisdiction ( Sec. 79[c], Rev. Adm. Code) and over city and provincial assessors in accordance officer, or act directly in pursuance of any specific power or function entrusted to said officer (Estrella vs. Orendain, 37 SCRA 640 [1971]; Op. No. 66, s. 1974). Viewed in the light of the foregoing, we do not find any legal impediment to the act of the Minister of Finance in directly appointing the Assistant city Assessor of Tagaytay City. cdll Please be guided accordingly. Very truly yours, (SGD.) RICARDO C. PUNO Minister of Justice