Withholding of Tax on the Salaries and Other Emoluments of Justices and Judges of Courts

March 8, 1973 REVENUE MEMORANDUM CIRCULAR NO. 20-73 SUBJECT : Withholding of Tax on the Salaries and Other Emoluments of Justices and Judges of Courts TO : All Internal Revenue Officers and Others Concerned The salaries and other emoluments of justices and judges of courts have heretofore been considered exempt from income tax in line with the decision of the Supreme Court in the case of Perfecto vs. Meer. However, the new constitution has not only dropped the provision relied upon by the Supreme Court in the abovestated case but it has also expressly provided in Section 6, Article XV that "no salary or any form of emolument of any public officer or employee, including constitutional officers, shall be exempt from payment of income tax." There is now, therefore, a clear and express constitutional basis for treating such income as taxable. In view thereof, salaries and other emoluments of justices and judges of courts shall be treated as taxable income beginning with taxable year 1973. Accordingly, the said income is subject to deduction and withholding of tax under the provisions of Supplement A to Title II of the National Internal Revenue Code, as amended. Regional directors shall immediately notify and advise disbursing officers of courts located within their respective regions and all persons having the custody, disposal, or control of payment of salaries and other emoluments of justices, judges and other constitutional officers to deduct and withhold tax on such salaries and other emoluments. All concerned are enjoined to be guided accordingly. aisa dc MISAEL P. VERA Commissioner of Internal Revenue APPROVED: CESAR VIRATA Secretary of Finance