BIR Ruling [DA-207-01]

October 19, 2001 BIR RULING [DA-207-01] Mr. Florentino G. Ayson, Ph.D . 26 Almon Street, Project 3 Quezon City 1102 S i r : This refers to your letter dated May 24, 2001 requesting in effect for exemption from the payment of your withholding tax on royalty. You stated and I quote: "Last April 12, 1999, I suffered a severe brain attack which an expert diplomate assisted by my doctor who is also an expert diplomate in Vascular Cardiology and other doctors who assisted, operated on me, and injected into my veins the most modern medicine to remove the blood clots deep inside my brain. After which, I was moved to and made to lie on a cot bed for four days and four nights. It was indeed a miracle for in the middle of the four nights, my God gave me light for my eyes were opened and saw nurses in white taking my blood pressure every minute and injecting dextrose and medicine into the bottle hanging. I was confined at UDMC, Manila for less than a month and discharged on April 27, 1999 and began recovering praying to my Lord to give me full and complete recovery. Now I am walking at home and about I am now jobless and a retiree. My wife who is also a jobless and a retiree has a hard time finding funds and resources to buy my doctor's prescribed medicines at Mercury Drug Store at very exorbitant prices. On the basis of the certificate of final withholding it is inferred that the Management of National Book Store paid my royalty in the first week of February 2001 but it deducted my withholding tax payment. . . " In reply, please be informed that this Office takes due notice of your plight and sympathizes with your predicament. However, tax exemptions are highly disfavored in law and are construed in strictissimi juris against the taxpayer. He who claims an exemption must be able to justify his claim by the clearest grant of organic law or statute. For this reason, our hands are tied and we are therefore constrained to deny your request for exemption from the payment of your withholding taxes considering that your alleged problem cannot legally support the grounds by which the Commissioner can abate or cancel your tax liability under Section 204 of the Tax Code of 1997. This constitute our final stand on the matter. Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal & Inspection Group