Clarifying the Application of COA Circular No. 75-6

September 3, 1999 REVENUE MEMORANDUM CIRCULAR NO. 73-99 SUBJECT : Clarifying the Application of COA Circular No. 75-6 dated November 7, 1975 on Entitlement to Transportation Allowance of Government Officials Whose Offices have been Issued with Government Vehicles, in Accordance with the Ruling of the Supreme Court in Aida Domingo vs. Commission on Audit (G.R. No. 112371), Promulgated on October 7, 1998 TO : All Revenue Officials and Others Concerned For the information and guidance of all revenue officials and others concerned, quoted hereunder is Commission on Audit Circular No. 99-002 dated June 15, 1999 entitled: "Clarifying the application of COA Circular No. 75-6 dated November 7, 1975 on entitlement to transportation allowance of government officials whose offices have been issued with government vehicles, in accordance with the ruling of the Supreme Court in Aida Domingo vs. Commission on Audit (G.R. No. 112371), promulgated on October 7, 1998. 1.0 PURPOSE This Circular is issued to clarify the application of COA Circular No. 75-6 Dated November 7, 1975 and to implement the Supreme Court ruling in the case "Aida Domingo vs. Commission on Audit, G.R. No. 112371, October 7, 1998" to the effect that government officials whose Offices are issued with motor vehicles, regardless of whether the vehicle is issued to the Office or to the government official himself, shall not be entitled to transportation allowance. llcd 2.0 REGULATIONS ON NON-ENTITLEMENT TO TRANSPORTATION ALLOWANCE 2.1 For the information of all concerned, quoted hereunder is the pertinent portion of the Supreme Court decision in the case "Aida Domingo vs. Commission on Audit", G.R. No. 112341: "As correctly pointed out by the Solicitor General, there are two instances when transportation allowance cannot be granted to a government official, as when a government official is assigned a vehicle, and when a government official uses government transportation facilities. It is undeniable that several government vehicles were issued to the Regional Office of DSWD in Region V. That the vehicles thereat were issued not to petitioner herself, as Regional Director, but to the Regional Office itself, is of no moment. What is important and decisive is that such vehicles were intended primarily for the official use of subject office and its officials and employees. As maintained by the Solicitor General, whether or not herein petitioner used the vehicle assigned to her office, is not an issue, as it is undeniable that she could have used the said vehicle whenever she wanted to since it was assigned to her office." The Court, likewise, ruled: "In the case under consideration, it must be noted that the provisions of law referred to in the General Appropriations Acts of 1988, 1989, 1990 and 1991, utilized the word "assigned" and not "used". Webster's Dictionary defines the word "assign" as "to transfer (property) to another in trust". Had legislative intent been that government officials issued an official vehicle could still collect transportation allowance if they do not actually use subject vehicle, the word "use" instead of "assign" should have been employed." Based on the above-cited ruling, it is clear that government Officials whose offices are issued with motor vehicles are not entitled to transportation allowance whether or not they actually used such vehicles. llcd 2.2 The prohibition against collection of transportation allowance when the office is assigned a vehicle, shall apply only to the head of the agency, unless the head of the agency specifically assigns a vehicle to particular officials under him or to a particular unit under said official, when there are more than one vehicle assigned to the agency; in which case, the said official who himself or whose unit under him has been assigned a vehicle shall not be entitled to transportation allowance. 2.3 Where the head of the agency does not specifically assign a vehicle to a subordinate official entitled to transportation allowance, or to the unit or division of the said subordinate official, the latter shall be allowed to collect the transportation allowance but shall refund the proportionate amount thereof whenever he avails of a government motor vehicle, corresponding to the number of days he has used the said government vehicle. 3.0 REPEALING CLAUSE All existing COA issuances inconsistent herewith are repealed/modified accordingly. 4.0 EFFECTIVITY This Circular shall take effect immediately (Sgd.) CELSO D. GANGAN Chairman (Sgd.) RAUL C. FLORES EMMANUEL M. DALMAN Commissioner Commissioner" All revenue officials and employees are enjoined to give this circular as wide a publicity as possible. (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue