Title
Umali vs. Estanislao
Case
G.R. No. 104037
Decision Date
May 29, 1992
R.A. 7167, increasing tax exemptions, took effect Jan. 30, 1992, applied to 1991 income; invalidated Revenue Regulations No. 1-92, mandating refunds for affected taxpayers.

Case Digest (G.R. No. 104037)
Expanded Legal Reasoning Model

Facts:

  • Republic Act No. 7167
    • Enacted “AN ACT ADJUSTING THE BASIC PERSONAL AND ADDITIONAL EXEMPTIONS ALLOWABLE TO INDIVIDUALS FOR INCOME TAX PURPOSES TO THE POVERTY THRESHOLD LEVEL,” amending Section 29(L)(1) and (2)(A) of the NIRC.
    • Key provisions:
      • Personal exemptions – P9,000 for single or legally separated, P12,000 for head of family, P18,000 for married individuals (P9,000 each if spouses file separately).
      • Additional exemptions – P5,000 per dependent (max four), P1,000 per child dependent prior to 1 January 1980, claimed by one spouse if filing separately.
    • Approved by the President on 19 December 1991; published in Malaya on 14 January 1992.
  • Revenue Regulations No. 1-92
    • Promulgated by the Secretary of Finance and the Commissioner of Internal Revenue (dated 26 December 1992).
    • Amended the withholding tax tables and Section 8 of RR No. 6-82 (as amended by RR No. 1-86), providing that the increased exemptions apply only to compensation paid on or after 1 January 1992.
    • Stated effectivity: compensation income from 1 January 1992.
  • Petitions and Proceedings
    • G.R. No. 104037 – Petitioner Reynaldo Umali filed for mandamus (27 February 1992) to compel implementation of RA 7167 for income earned/received on or after 1 January 1991 (taxable year 1991).
    • G.R. No. 104069 – Petitioners Gorospe et al. filed for mandamus and prohibition (28 February 1992) to implement RA 7167 for 1991 income and enjoin RR 1-92.
    • Cases consolidated on 10 March 1992; respondents commented within the prescribed period.
  • Precedent on Effectivity of Laws
    • Civil Code, Article 2 – Laws take effect 15 days after publication unless otherwise provided; publication is indispensable.
    • Tanada v. Tuvera (146 SCRA 446) and Caltex (G.R. No. 97282, 26 June 1991) – A statute with no specific effectivity date takes effect 15 days after publication.

Issues:

  • When did RA 7167 take effect: upon presidential approval (19 December 1991) or 15 days after publication (30 January 1992)?
  • If effectivity is 30 January 1992, does RA 7167 nonetheless apply to compensation income earned or received during calendar year 1991?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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