BIR Ruling

June 14, 1968 The Administrator Philippine National Red Cross Nueva Ecija Chapter Cabanatuan City M a d a m : This refers to your letter dated June 4, 1968 requesting that contribution or donation made to the Philippine National Red Cross be authorized as a deduction from the donor's gross income. In reply thereto, I regret to have to inform you that your request cannot be granted for lack of legal basis. Allowance of deductions from gross income does not depend on general equitable considerations, but rather upon legislative grace, and the burden is upon the taxpayer to show that there is a clear provision therefor or that the law sanctions the deduction claimed. (Deputy v. Du Pont, 308 U.S. 488, 60 S Ct. 363; New Colonial Ice Co. v. Helvering, 292 U.S. 435; White v. U.S., 305 U.S. 281) Accordingly, there being no express provision of law authorizing the deduction of donation or contribution made to the Philippine National Red Cross, this Office believes and so holds that deduction in full of the amounts so contributed or donated cannot be authorized; however, such contributions or gifts within the taxable year are deductible to an aggregate amount not exceeding 6% in the case of an individual, and 3% in the case of a corporation, of the taxpayer's taxable net income as computed without the benefit of the deduction for such contribution or donation pursuant to Section 30(h) of the Tax Code, as amplified by Section 116, Revenue Regulations No. 2. atdc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue