Commissioner vs.

Robertson

GR L-70116-19, 12 August 1986 Second Division, Paras (J): 4 concur

Facts:

Frank and James Robertson, Robert Cathey, and John Garrison are citizens of the United States,
holders of American passports, and admitted as Special Termporary Visitors under Section 9 (a) visa of
the Philippine Immigration Act of 1940, and are civilian employees in a US Military Base in the
Philippines in connection with its construction, maintenance, operation and defense (The Roberstons
and Garrison were born in the Philippines). Their incomes are solely derived from salaries from the US
Government by reason of their employment in the US Bases in the Philippines. The Commissioner of
Internal Revenue assessed deficiency income tax against them from taxable years 1969 to 1972.

Issue:

Whether Robertson, et. al., are exempted from tax.

Held:

In order to avail oneself of the tax exemption under the RP-US Military Bases Agreement (Article XIII,
Paragraph a), one must be a national of the United States employed in connection with the
construction, maintenance, operation or defense, of the bases, residing in the Philippines by reason of
such employment, and the income derived is from the US Government. Said circumstances are all
present in the present case. The basic intendment is to exempt all US citizens working in the military
bases from the burden of paying Philippine Income Tax without distinction as to those born locally or
born in their country of origin. Where the law does not distinguish, one must not distinguish. Ubi lex
non ditinguit nec nos tinguere debemos.