284 Supreme Court Reports Annotated: Nitafan vs. Commissioner of Lnternal Revenue
284 Supreme Court Reports Annotated: Nitafan vs. Commissioner of Lnternal Revenue
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No. L-78780. July 23, 1987.
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members of the Supreme Court, as well as from the salaries of all other
members of the Judiciary. The Court hereby makes of record that it had then
discarded the ruling in Perfecto vs. Meer and Endencia vs. David, infra, that
declared the salaries of members of the Judiciary exempt from payment of
the income tax and considered such payment as a diminution of their
salaries during their continuance in office. The Court hereby reiterates that
the salaries of Justices and Judges are properly subject to a general income
tax law applicable to all income earners and that the payment of such
income tax by Justices and Judges does not fall within the constitutional
protection against decrease of their salaries during their continuance in
office.
Statutory Construction; Intent of the framers of the organic law and of
the people adopting it should be given effect.—The debates, interpellations
and opinions expressed regarding the constitutional provision in question
until it was finally approved by the Commission disclosed that the true
intent of the framers of the 1987 Constitution, in adopting it, was to make
the salaries of members of the Judiciary taxable. The ascertainment of that
intent is but in keeping with the fundamental principle of constitutional
construction that the intent of the framers of the organic law and of the
people adopting it should be given effect. The primary task in constitutional
construction is to ascertain and thereafter assure the realization of the
purpose of the framers and of the people in the adoption of the Constitution.
It may also be safely assumed that the people in ratifying the Constitution
were guided mainly by the explanation offered by the framers. Besides,
construing Section 10, Articles VIII, of the 1987 Constitution, which, for
clarity, is again reproduced hereunder: "The salary of the Chief Justice and
of the Associate Justices of the Supreme Court, and of judges of lower
courts shall be fixed by law. During their continuance in office, their salary
shall not be decreased." (Italics supplied). It is plain that the Constitution
authorizes Congress to pass a law fixing another rate of compensation of
Justices and Judges but such rate must be higher than that which they are
receiving at the time of enactment, or if lower, it would be applicable only
to those appointed after its approval. It would be a strained construction to
read into the provision an exemption from taxation in the light of the
discussion in the Constitutional Commission.
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RESOLUTION
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MELENCIO-HERRERA, J.:
That should have resolved the question. However, with the filing of
this petition, the Court has deemed it best to settle the legal issue
raised through this judicial pronouncement. As will be shown
hereinafter, the clear intent of the Constitutional Commission was to
delete the proposed express grant of exemption from payment of
income tax to members of the Judiciary, so as to "give substance to
equality among the three branches of Government" in the words of
Commissioner Rigos. In the course of the deliberations, it was
further expressly made clear, specially with regard to Commissioner
Joa-
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"x x x (The members of the Supreme Court and all judges of inferior courts)
shall receive such compensation as may be fixed by law, which shall not be
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diminished during their continuance in office x x x". (Italics supplied).
"The salary of the Chief Justice and of the Associate Justices of the
Supreme Court, and of judges of inferior courts shall be fixed by law, which
shall not be decreased during their continuance in office.
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x x x". (Emphasis ours).
"The salary of the Chief Justice and of the Associate Justices of the
Supreme Court, and of judges of lower courts shall be fixed by law. During
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their continuance in office, their salary shall not be decreased. " (Italics
supplied).
"Section 13. The salary of the Chief Justice and the Associate Justices of the
Supreme Court and of judges of the lower courts shall be fixed by law.
During their continuance in office, their salary shall not be diminished nor
subjected to income tax. Until the National Assembly shall provide
otherwise, the Chief Justice shall receive an annual salary of
5
____________and each Associate Justice __________pesos. " (Emphasis
ours)
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"MS. AQUINO. Finally, on the matter of exemption from tax of the salary
of justices, does this not violate the principle of the uniformity of taxation
and the principle of equal protection of the law? After all, tax is levied not
on the salary but on the combined income, such that when the judge
receives a salary and it is comingled with the other income, we tax the
income, not the salary. Why do we have to give special privileges to the
salary of justices?
"MR. CONCEPCION. It is the independence of the judiciary. We
prohibit the increase or decrease of their salary during their term. This is an
indirect way of decreasing their salary and affecting the independence of the
judges.
"MS. AQUINO. I appreciate that to be in the nature of a clause to respect
tenure, but the special privilege on taxation might, in effect, be a violation of
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the principle of uniformity in taxation and the equal protection clause.
x x x
"MR. OPLE. x x x
"Of course, we share deeply the concern expressed by the sponsor,
Commissioner Roberto Concepcion, for whom we have the highest respect,
to surround the Supreme Court and the judicial system as a whole with the
whole armor of defense against the executive and legislative invasion of
their independence. But in so doing, some of the citizens outside, especially
the humble government employees, might say that in trying to erect a
bastion of justice, we might end up with the fortress of privileges, an island
of extra territoriality under the Republic of the Philippines, because a good
number of powers and rights accorded to the Judiciary here may not be
enjoyed in the remotest degree by other employees of the government.
" An example is the exception from income tax, which is a kind of
economic immunity, which is, of course, denied to the entire executive
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department and the legislative."
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shall not be DECREASED.' But this is on the understanding that there will
be a provision in the Constitution similar to Section 6 of Article XV, the
General Provisions of the 1973 Constitution, which says:
'No salary or any form of emolument of any public officer or employee, including
constitutional officers, shall be exempt f from payment of income tax.'
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"FR. BERNAS. Yes, I do not know if such an article will be found in the
General Provisions. But at any rate, when we put a period (.) after
'DECREASED,' it is on the understanding that the doctrine in Perfecto vs.
Meer and Dencia vs. David will not apply anymore."
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"The salary of the Chief Justice and of the Associate Justices of the
Supreme Court, and of judges of lower courts shall be fixed by law. During
their continuance in office, their salary shall not be decreased." (Italics
supplied).
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adopted.
Stated otherwise, we accord due respect to the intent of the
people, through the discussions and deliberations of their
representatives, in the spirit that all citizens should bear their aliquot
part of the cost of maintaining the government and should share the
burden of general income taxation equitably.
WHEREFORE, the instant petition for Prohibition is hereby
dismissed.
JJ., concur.
Yap, J., is on leave.
Petition dismissed.
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