BIR Ruling

January 13, 1969 Mr. Lincoln T. Yabut Suite 309 Manhattan Bldg. 413 Nueva Street Manila S i r : This refers to your letter dated November 28, 1968 requesting information as to whether or not for income tax purposes, your client, Miss Virginia Usabel is entitled to the personal exemption of P3,000.00 as "head of Family" and to an additional of P1,000.00 for each of her children namely: Virgilio, Zenaida and Milagros, all surnamed Sy. casia It is represented that Miss Virginia Usabel has three children with a certain Mr. Sy, a Chinese national; that at the time of the conception of the aforenamed children, subject taxpayer was single while the civil status of their father was, as it is still unknown; that subject taxpayer and the said Mr. Sy whose present whereabouts are unknown were not legally married; that the aforenamed children are all below twenty three years of age, not gainfully employed, unmarried, living with and wholly dependent upon their mother for support. In reply, I have the honor to inform you that pursuant to Article 277 of the New Civil Code, the recognition of a natural child may be made by only one parent, and it shall be presumed that the child is natural if the parent recognizing him or her has legal capacity to contract marriage at the time of the conception. Since Miss Virginia Usabel, the mother of the aforementioned children is the recognizing parent who has legal capacity to contract marriage at the time the said children were conceived, and it is not known whether the alleged father has any legal impediment to contract marriage at the time the same children were conceived, such children are considered "recognized natural". (Borros and Barza vs. Municipality of Panay, 42 Phil. 643) Under Section 23 (b) of the Tax Code, as amended, "the term 'head of family' includes an unmarried man or woman with one or both parents, or, with one or more brothers or sisters or with one or more legitimate, recognized natural, or adopted children living with and dependent upon him or her for their chief support where such brothers, sisters, or children are not more than twenty-three years of age, unmarried, and not gainfully employed or where such children are incapable of self-support because mentally or physically defective." In view thereof, this Office believes and so holds that for income tax purposes, your client, Miss Virginia Usabel is entitled to the personal exemption of P3,000.00 as "head of family" and to the additional exemption of P1,000.00 for each of her dependent children. This Office however, may reverse or modify this ruling if, after investigation, it will appear that the facts are different from those represented. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue