UMALI v.
ESTANISLAO (LEAH) that the regulations shall take effect on compensation income earned or received
29 May 1992 | GR Nr. 104037 | PADILLA, J. | Effectivity of the Clause from 1 January 1992 are hereby SET ASIDE. They should take effect on
compensation income earned or received from 1 January 1991.
PLAINTIFF - APPELLEE: REYNALDO V UMALI
DEFENDANT APPELLANT: HON. JESUS P ESTANISLAO, Secretary of RATIO:
Finance, and HON. JOSE U ONG, Commissioner of Internal Revenue The decision id promulgated after 15 April 1992, the individual taxpayers entitled to
the increased exemptions on compensation income earned during calendar year 1991
SUMMARY: Congress enacted RA 7167 entitled who may have filed their income tax returns on or before 15 April 1992 (later
“An act adjusting the basic personal and additional exemptions allowable to extended to 24 April 1992) without the benefit of such increased exemptions, are
individuals for income tax purposes to the poverty threshold level” amending entitled to the corresponding tax refunds and/or credits, and respondents are ordered
for the purpose Sec.29 of the NIRC. The said act was signed and approved by to effect such refunds and/or credits. No costs.
the President on Dec.19, 1991 and published on Jan.14, 1992 in Malaya, a
newspaper of general circulation.Sec.3 of the said act states: “This act shall take SEPARATE OPINIONS:
effect upon its approval”, while Sec.5 states: “These regulations shall take effect 1. PARAS, J (Concurring) – I wish to concur with the majority opinion
on compensation income from January 1, 1992.” penned in this case by Justice Teodoro Padilla, because the tax exemptions
referred to in the law should be effective already with respect to the income
DOCTRINE: ARTICLE 2. CIVIL CODE - Laws shall take effect after earned for the year 1991. After all, even if it is said that the law became
fifteen days following the completion of their publication either in the Official effective only in 1992, still this can refer only to the income obtained in
Gazette or in a newspaper of general circulation in the Philippines, unless it is 1991 since after all, what should be filed in 1992 is the income tax return of
otherwise provided. the income earned in 1991.
2. PARAS, J (Dissenting) – Dissents for the part of the decision which affirms
STATUTORY CONSTRUCTION; COURT CANNOT REFUSE TO the obiter dictum enunciated in the case of Tanada v Tuvera to the effect
APPLY LAW-MAKER’S WORDS – But the law-making authority has that that a law becomes effective not on the date expressly provided for in
spoken and the Court cannot refuse to apply the law-maker’s words. Whether or said law, but on the date after fifteen (15) days from the publication in the
not the government can afford the drop in tax revenues resulting from such Official Gazette or any national newspaper of general circulation, I say
increased exemptions was for Congee to decide. obiter dictum because the doctrine mentioned is not the actual issue in the
case of Tañada vs. Tuvera (supra). In that case, several presidential decrees
FACTS: of President Marcos were issued, but they were never published in the
- On 27 February 1992, a taxpayer and a resident of Gitnang Bayan Official Gazette or in any national newspaper of general circulation. The
Bongabong, Oriental Mindoro, filed a petition for mandamus for himself real issue therefore in said case was whether or not said Presidential decrees
and in behalf of all individual Filipino taxpayers ever became effective. The Court ruled with respect to this issue (and not
- On 28 February 1992, the petitioners in G.R. No. 104069 likewise filed a any other issue - since there was no other issue whatsoever), that said
petition for mandamus and prohibition on their behalf as well as for those presidential decrees never became effective. In other words, the ratio
other individual taxpayers who might be similarly situated: decidendi in that case was the ruling that without publication, there can be
"The central issue presented in the instant petition is the effectivity of R.A no effectivity. Thus, the statement as to which should be applied — "after
6965 entitled 'An Act Revising the Form of Taxation on Petroleum Products fifteen (15) days from publication" or "unless otherwise provided by law"
from Ad Valorem to Specific, Amending For the Purpose Section 145 of the (Art. 2. Civil Code) was mere obiter. The subsequent ruling in the
National Internal Revenue Code, As amended by Republic Act Numbered resolution dated June 26, 1991 in Caltex, Inc. vs. Com. of Internal Revenue
Sixty Seven Hundred Sixty Seven.' cannot likewise apply because it was based on the aforesaid obiter in
Tañada v. Tuvera (supra). In the instant tax exemptions case, the law says
ISSUE: effective upon approval, therefore, since this law was approved by the
WoN RA Nr. 7167 took effect upon its approval by the President on 19 December President in December, 1991, its subsequent publication in the January
1991 or 30 January 1992, 15 days after its publication? 1992 issue of the Civil Code is actually immaterial.
RULING: Art. 2 of the Civil Code which states:
WHEREFORE, Sections 1, 3 and 5 of Revenue Regulations No. 1-92 which provide
"Laws shall take effect after fifteen days following the completion of their
publication in the Official Gazette, unless it is otherwise provided. This
Code shall take effect one year after such publication."
It is very clear and needs no interpretation or construction.
3. CRUZ, J – (Concurring)
