ABAKADA GURO PARTY LIST v.

PURISIMA (2008)
FACTS:
RA 9335 (Attrition Act of 2005) was enacted to optimize the
collection capability of the Bureau of Internal Revenue (BIR) and
Bureau of Customs (BOC) by providing a reward system. It covers
all employees with at least 6 months of service.
It created a Rewards and Incentives Fund and a Revenue
Performance Evaluation Board. The Fund is sourced from the BIR
& BOC collections in excess of their annual revenue targets as
determined by the Devt Budget and Coordinating Committee
(DBCC.)
Sec 12: A Joint Congressional Oversight Committee was created to
approve the implementing rules and regulations (IRR) created by
the Dept of Finance, Dept of Budget and Mgt, Natl Economic and
Devt Authority, BOC, BIR and Civil Service Comm.
Abakada, as taxpayers, question the constitutionality of RA 9335 as
tax reform legislation. They claim it invites corruption; It violates
equal protection because it does not apply to other govt agencies;
It unduly delegates power to fix revenue targets to the Pres; The
oversight committee violates the separation of powers;
ISSUE:
W/N RA 9335 is constitutional- Yes except Section 12 (provision
creating the oversight committee)
HELD:
No actual controversy: They failed to show personal stake in the
outcome but due to public interest where the legislative branch
allegedly infringed the Consti, the judiciary must settle the dispute.

Law by Congress enjoys presumption of constitutionality unless

there is a clear breach of the Consti proven by evidence.
Accountability: Public office is a public trust. Public service in itself
is a reward but officers may still be rewarded for exemplary
performance. That does not negate accountability. RA 9335
likewise provides for liability in case of violation or failure of an
officer to perform his duty.
Equal Protection:
o Valid classification requires that it be reasonable/based on
substantial differences, germane to the purpose of the law, not
limited to existing conditions and apply equally to members of
a class.
o Subject of law is revenue-generation so its incentives should
pertain to BIR and BOC since their function is to collect taxes,
customs duties and corresponding fees.
No undue delegation:
o Completeness Test: Law sets forth the policy to be
implemented; Sufficient Standard Test: Law provides adequate
guidelines to map out the boundary of delegates authority.
o RA 9335 adequately states police and standards to guide
President. Revenue targets are stated in the Budget of
Expenditures and Sources of Financing submitted by the Pres
to the congress and it undergoes scrutiny by the DBCC.
o It also specifies the conditions when an employee may be
removed service, particularly when his revenue collection falls
short of the target by at least 7.5% There are also exceptions
such as when the area of responsibility is newly created, when
the employee is a recent transferee and there is economic
difficulty brought about by force majeure.
Separation of Powers:

The oversight committee approved the IRR on May 22, 2006

and ceased to exist. Already moot and academic but the Court
decided to confront the issue anyway.
The power of oversight refers to post-enactment measures by
Congress to monitor compliance of administrative agencies
within the authority granted to them.
1. Scrutiny: Congress requests for reports from other
government branches and it gives recommendations.
2. Congressional Investigation: intense digging of facts
3. Legislative Supervision (Oversight): Congress retains
part of delegated authority. It utilizes legislative veto
provisions such that the proposed regulations by the
President/agency is subject to its approval.
Congressional oversight is not unconstitutional per se but the
Consti imposes two constraints: Congress may not vest

o
o
o
o

itself/committees/members with executive or judicial power;

And it must follow procedures specified by the Constitution.
So, any post-enactment action by the Congress hould be
limited to scrutiny and investigation.
Even assuming the validity of a legislative veto, it must be
exercised by both the Senate and Hrep- not by a committee.
Two steps before bill becomes law: Approved by Senate and
Hrep(3 readings each); And approved by President;
Any provision after effectivity allowing Congress to control
the implementation of law violates the principle of separation
of powers. It overturns the directive of the executive branch.
RA 9335 has a separability clause. The other portions can
stand independently notwithstanding the absence of Sec 12.
So, only section 12 is held to be unconstitutional.