BIR Ruling

July 28, 1967 Mr. Sebastian Ugarte Herald Publications, Inc. 61 Muralla, Intramuros, Manila S i r : This refers to your letter dated June 20, 1967, pertinent portion of which is quoted as follows: cdpr "The Philippines Herald is initiating moves to general funds for the Peace and Order Council, a semi-government agency created by President Marcos to oversee and coordinate the overall campaign against crime. "In brief, our plans are these: "1. A maximum 30-day fund campaign will be staged for the Peace and Order Council with P30,000 as the target. Informatively, The San Miguel Corporation has pledged P5,000 to enable the campaign to blast off. "2. The funds are to be acknowledged through the front pages of the Philippines Herald and through the facilities of Channel 13, DZHP and stations of Radio Mindanao Network. "The last point is tentative and is contingent on the response of BAP president, Mr. Mariano H. Laurel, whose kind assistance we have solicited. "It is with regard to the last mentioned item that we have written you. "We would like to inquire from your good office: "1. If donations to the Peace and Order Council by private citizens and organizations and government officials are tax-deductible. "2. What specific forms are required by law and what regulations have to be adhered to in case receipts are issued in the name of POC." cdll In reply, I have the honor to inform you that contributions or gifts actually paid or made within the taxable year to or for the use of the Government of the Philippines or any political subdivision thereof for exclusively public purposes, or to domestic corporations or associations organized and operated exclusively for religious, charitable, scientific, athletic, cultural or educational purpose or for the prevention of cruelty to children or animals, no part of the net income of which inures to the benefit of any private stockholder or individual, shall be allowed as deduction from gross income (Sec. 30(h), NIRC; Sec. 116, Rev. Reg. No. 2). As the Peace and Order Council created by the President of the Philippines, is a semi-government agency engaged in the activities or supervising and coordinating the overall campaign against crime, and to improve community police protection, contributions or donations actually paid or made within the taxable year to said organization for the aforestated purpose or purposes fall within the purview of Section 30(h) of the Tax Code. Accordingly, the said contributions, including other deductible charitable contributions of the donor, are deductible for income tax purposes in an amount not in excess of 6% in the case of an individual and 3% in the case of a corporation, of the donor's taxable net income as computed without the benefit of paragraph (h), Section 30 of the National Internal Revenue Code. The donor shall state in his return of income, the name and address of the Organization to which the contribution or donation was made and the date and amount of the said gift. He shall attach to his return the receipts duly signed by a responsible Officer of the Organization authorized by its Head or Director to receive such contributions or donations. (Sec. 136, Rev. No. 2). prll Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue