STATUTORY CONSTRUCTION

CASE DIGESTS
NITAFAN vs. COMMISSIONER OF INTERNAL REVENUE  The Court hereby reiterates that the salaries of Justices and Judges
are properly subject to a general income tax law applicable to all
Facts:
income earners and that payment of such income tax by Justices and
 Petitioners seek to prohibit and/or enjoin respondents from making Judges does not fall within the constitutional protection against
any deduction of withholding taxes from their salaries decrease of their salaries during their continuance in office.
 Any tax withheld from their salaries as judicial officers constitutes a  fundamental principle of constitutional construction that the intent of
decrease of their salaries contrary to the provision of Section 10, the framers of the organic law and of the people adopting it
Art VIII of 1987 constitution mandating that during their should be given effect. The primary task in constitutional
continuance in office their salary shall not be decreased even as it is construction is to ascertain and thereafter assure the realization of the
against the ideal of an independent judiciary envisioned in the purpose of the framers and of the people in the adoption of the
Constitution Constitution.
o Court: continue with deduction of withholding taxes from the  true intent of the framers of the 1987 Constitution, in adopting it, was
salaries of the Justices (June 4, 1987) to make the salaries of members of the Judiciary taxable.
 clear intent of the Constitutional Commission was to delete the 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"; (Bernas) salaries of members of the
Judiciary would be subject to the general income tax applied to all
taxpayers
o somehow not set forth in 1987 constitution, but Court since
then authorized continuation of deduction of tax from the
salaries
Petitioner’s argument:

 1987 consti does not contain provision similar to Sec 6, Art XV of

1973 Consti ( "No salary or any form of emolument of any public
officer or employee, including constitutional officers, shall be
exempt from payment of income tax.") for which reason
petitioners claim that the intent of framers is to revert back to
concept of non-diminution of salaries of judicial officers
Respondent’s argument:

 Deliberations in 1986 Consti Commission negate contention

Issues: WON salaries of judicial officers are exempted from deduction of
withholding taxes
Ruling: No, petition for prohibition dismissed