Case Digest: Nitafan vs. Commissioner of Internal Revenue

DAVID G. NITAFAN, et al. vs. COMMISSIONER OF INTERNAL REVENUE, and THE FINANCIAL OFFICER OF THE SUPREME COURT OF THE PHILIPPINES

G.R. No. 78780 23 July 1987

FACTS:

Petitioners Nitafan, Polo and Savellano are judges presiding over branches in the RTC of the NCJR Manila who seek to prohibit and/or perpetually enjoin respondents from making any deduction of withholding taxes from their salaries. According to them, said tax deductions constitute a diminution of their salaries, contrary to the provision of Section 10, Article VIII of the Constitution.

ISSUE: Whether or not salaries of the members of the Judiciary are subject to income tax.

RULING:

YES. The salaries of the members of the Judiciary is subject to general income tax applicable to all taxpayers. The clear intent of the ConComm was to delete the proposed express grant of exemption from payment of income tax, so as to give substance to equality among the three branches of Government. Though this intent was not clearly set forth in the final text of the Constitution, the Court since then has authorised the deduction of the withholding tax from the salaries of said members.