ENDENCIA and JUGO vs. DAVID, et al, Nos.

L-6355-56, August 31, 1953

Facts:
The Supreme Court, exercising its power in interpreting the Constitution, in the case of Perfecto
vs. Meer held that judicial officers are exempt from payment of income tax on their salaries because
such collection is a decrease or diminution of their salaries, expressly prohibited by the Constitution:

Sec. 9, Art. VIII of the Constitution provides that: The members of the SC and all the judges of inferior
courts xxx. Xxx shall receive such compensation as may be fixed by law, which shall not be diminished
during their continuance in office. Xxx

Thereafter, the Congress promulgated Republic Act No. 590 to authorize and legalize the
collection of income tax on the salaries of judicial officers:

Sec. 13. No salary wherever received by any public officer of the Republic of the Philippines shall be
considered as exempt from the income tax, payment of which is hereby declared not to be a
diminution of his compensation fixed by the Constitution or by law.

Now, income taxes were collected by Saturnino David (Collector of Internal Revenue) from the
salaries received by Justice Pastor M. Endencia as Associate Justice of the Court of Appeals, and by
Justice Fernando Jugo as Presiding Justice of Court of Appeals and Associate Justice of the Supreme
Court (SC).

Upholding the Supreme Courts decision promulgated in Perfecto vs. Meer, the Court of First
Instance declared the Sec. 13 of RA 590 unconstitutional and ordered the refund of the amount of the
income taxes collected from the two justices.

Hence, this appeal by the Collector of Internal Revenue.

Issue:
Whether Republic Act No. 590 is unconstitutional.

Ruling:

No. Under the fundamental principle of the separation of powers, the authority to interpret and
apply the laws and the Constitution belongs to the Judiciary exclusively.

In this case, the Congress, by legislative fiat enunciated in Section 13 R.A. 590, saying that taxing
the salary of a judicial officer is not a decrease of compensation, clearly interpreted and ascertained
the meaning of the phrase which shall not be diminished during their continuance in office found in
Sec. 3, Art. VIII of the Constitution. Such act by the legislature is an invasion/ usurpation of the well-
defined and established province and jurisdiction of the Judiciary.

Therefore, Republic Act No. 590 is declared unconstitutional.