BIR Ruling [DA-213-01]

October 22, 2001 BIR RULING [DA-213-01] 204; 129-99 Mr. Diosdado S. Avelino, Jr. No. 32, 11th Avenue (West) Grace Park, Caloocan City S i r : This refers to your letter dated February 3, 2000 requesting in effect for exemption from the payment of your income tax. You stated that for the past two (2) years and ten (10) months, you have been undergoing dialysis at least two times (2x) a week due to kidney disease; that each treatment cost is approximately Php3,250.00; that your annual expenses for dialysis is approximately Php338,000.00; that your present salary is not enough to pay for your treatments and to support a family with one daughter; that you were able to survive due to borrowings and the generosity of your close relatives, but their help is dwindling as time passes by; that you are presently employed although you are partially disabled; that your employer understands your plights; that your remaining life on earth is dependent on the number of dialysis treatment you can have; that with the heavy financial burden you are experiencing, you may not live long; and that your monthly income tax is sufficient to pay for at least two dialysis treatments, equivalent to four (4) months of dialysis treatments every year and that this means you will have an assured life of four (4) months every year. In support of your request you have attached a photocopy of: (1) the medical certification from the dialysis center; and (2) your 1998 income tax return. 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 income 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. Otherwise, to grant your request would create a bad precedent, as thousand others who are similarly situated or with even greater problem than yours might parade before us to seek the same redress. (BIR Ruling No. 129-99 dated August 20, 1999) 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