BIR Ruling

October 26, 1967 The Chairman-General Manager Philippine Charity Sweepstakes Office Manila Attention: Manager , Administrative Department S i r : With reference to your letter dated October 23, 1967, please be informed that the ruling of the Secretary of Finance to the effect that the commutable representation and transportation allowances of Central Bank officials and employees are not includible in their gross income is pending reconsideration at the instance of this Office, the reason being that the ruling is not in conformity with the universally accepted concept of gross income. cdta In this connection, please be also informed that the routine verification of the income tax returns of the officials and employees of your office requested by the Chief of the Special Investigation Division of this Office will cover not only the matter of commutable representation and transportation allowances but also other fringe benefits, such as living allowances and bonuses which the officials and employees of your office might have received but did not return as income. Therefore, even if the Secretary of Finance will not reconsider his ruling and will favorably consider the request for your office for the application of the Central Bank ruling to its officials and employees, still the routine verification of the income tax returns of said officials and employees will have to be pursued. For the foregoing considerations, the cooperation of your office is earnestly requested. cdti Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue