7/31/2019 1.01.27C Nitafan vs Commissioner of Internal Revenue, 152 SCRA 284

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Nitafan vs. Commissioner of Internal Revenue, 152 SCRA 284 (1987)

Facts:PetitionersDavid Natifan, Wenceslao Polo and Maximo Savellano Jr.

-RTC (NCR) Judges

-petitioners seek to prohibit and/or perpetually enjoin respondents from making any deductionof withholding taxes from their salaries

RespondentsCommissioner of Internal Revenue (CIR) and Financial Officer of the Supreme Court

Petitioners submit that any tax withheld from their emoluments or compensation as judicialofficers constitutes a decrease or diminution of their salaries, contrary to the provision of

Section 10, Article VIII of the 1987 Constitution mandating that during their continuance in

office, their salary shall not be decreased

Early on, the court had dealt with the matter administratively.o

The Court directed its Finance Officer to discontinuethe withholding of taxes fromsalaries of the members of the Bench

The court en banc directive should have solved the question (exemption from income taxation)o With the filling of this petition, the Court deemed it is best to settle the issue through

judicial pronouncement

Issue:

Whether or not the members of the judiciary are exempted from income taxation 1987 constitution Art 8, Sec 10 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 continuancein office, their salary shall not be decreased

Held:

Petition dismissed Salaries of the members of the judiciary are not exempted from income taxation

Ratio:

Referred to deliberations of the 1986 constitutional commission relevant to Sec. 10, Art. 8 (as itwas not very clear in the final text of the 1987 constitution)

o Exception from income tax, which is a kind of economic immunity, is denied to theexecutive and legislature (violate the principle of uniformity of taxation?)

o Not only justices and judges get their income reduced upon entry to government service(such is the same for the cabinet and other employees)

o So we put a period (.) after decreased on the understanding that the salary of justicesis subject to tax Commissioner Bernas