CTA Case No. 4260 (Decision)

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY ALFONSO B. CAMILLO, C.T.A. CASE NO. 4260 Petitioner, - versus -- THE COMMISSIONER OF INTERNAL REVENUE, Respondent. X- - - - - - - - - X DEC I I0N This case comes on a simple issue of whether or not terminal leave pay of retiring government officials is exempt from the withholding tax. It ap~ears that petitioner, a Revenue Regional Director II of the Bureau of ~nternal Revenue, was "forced by the respondent Commissioner of Internal Revenue to retire on November -._:.r. !I 1987 under the provisions of Section 12(c) of C.A. 186, as amended by R.A. 1616 and further amended by R.A. 4968; that as a consequence he received among other retirement benefits the sum of P133, 365. 59 as termina 1 1eave pay and thereupon the corresponding sum of F'18,365.74 was deducted and withheld as income tax; and tha 'Y;he claims that the full sum of terminal leave pay is exempt from tax of whatever kind

DECISION CTA CASE NO. 4260 2 pursuant to Presidential Decree No. 1146, which, in pertinent part, provides: "Sec. 3 3 E :�:emption from Ta:�:, Legal Process and Lien. x x x Acc ordingly, notwithstanding any laws to the contrary the System, its assets , revenue including a c c r u a 1 s thereto and Q..~n.gLfjj;_~_P. a .,hfi_,._....?Jl~.l.!. Q.g__.__!?.J:LE?..m.P..:t..._._.f .r .Q_ffi_. _...eJ_l._____t..9.1.t~-~--'�--.E\_?. s J.E:? s..?JD..!?.fl t2_,_ f.!?.-~.?._,.._.____c;;_b.~.r:.gg.�_._.___.Q.L_._c;t!::~t.,t~..?.._._.__._Q..f____e_l._L ___~:;._i.n..Q..?.. :-::-::-:." (Emphasis supplied) As thus petitioner on February 1, 1988 filed with the respondent's office a claim for the refund of the amount withheld from his terminal leave pay which however was denied by the respondent on February 18, 1988. Hence, this petition for review. Perhaps We nee d take no time in going into all the details of this case as it may suffice to state that analogous appealed cas es have since been pending resolution by the Supreme Court. And, so recently in the c ase of Coa�i ss i oner of Internal Revenue v. Oscar Victor i ano and the Court of Tax Appeals, G.R. No. 83176, Augu s t 10, the Supreme Court ruled, that - "In view of the fact that terminal 1eave pay of the respondent former Presiding Justice of the Court of Appeals, Oscar Victoriano, is part of his sa 1ary, the Court Res o 1ved to Grant the petition and thus allows the imposition of the wi thho 1ding ta~: thereon." 5 3J

DECISION CTA CASE NO. 4260 - 3- The said decision may now be referred to as an authoritative disposition of the issue in controversy. As was in that case, so here with the petitioner, the ruling applies with legal cer� tain ty. It is very clear, therefore, upon the adjudged appea 1, that petitioner's action cannot be maintained and that the j Lldgmen t must be entered for the respondent Commissioner of Internal RevenL1e. WHEREFORE, petition is hereby dismissed with no pronouncement as to costs. SO ORDERED. Quezon City, Metro Manila, December 29, 1989. t9&.. Associate Judge WE CONCUR: Judge ssocia te Judge

DECISION CTA CASE NO. 4260 - 4- CERTIFICATION I hereby certify that this decision was reached after due consultation among the members of the Court of Tax Appeals in accorda n ce with Section 13~ Article VIII of the Constitution. AMANT FILLER Presiding Judge Court of Tax Appeals 540