BIR Ruling [DA-256-99]

April 26, 1999 BIR RULING [DA-256-99] Ms. Estelita V. Datu Chief, Personnel Division Bureau of Internal Revenue Diliman, Quezon City M a d a m : This refers to your 2nd Indorsement dated March 9, 1999 requesting for clarification as to the basis of computation of the terminal leave benefits of Mrs. Aurora de Joya, Mrs. Virginia Mercado, Mrs. Gerundia Nisperos and Mr. Leonardo Rebuelta. Herein claimants of the terminal leave benefits were former employees of Revenue Information Systems Services, Incorporated (RISSI), a private entity. They were absorbed by the Bureau of Internal Revenue on August 16, 1993 (Aurora de Joya), August 2, 1993 (Gerundia Nisperos) and December 1, 1993 (Leonardo Rebuelta) and who were automatically retired effective March 17, 1998 (Aurora de Joya), February 12, 1998 (Virginia Mercado), October 24, 1997 (Gerundia Nisperos) and March 21, 1998 (Leonardo Rebuelta). To resolve the issue as to the basis of the computation of their terminal leave benefits, reference is hereby made to letter (C) of the dispositive portion of BIR Ruling No. DA-082-99 dated February 11, 1999 whereby this Office ruled, to wit: ". . . that for the purpose of computing the retirement benefits (as contra distinguished from separation/severance pay), the length of government service shall be reckoned from the date the appointment in the BIR was duly approved. Thus, the payment (or non-payment) of separation benefits consisting of separation/severance pay and money value of leave credits earned in RISSI, which were all duly litigated before the Labor Arbiter and confirmed by the NLRC did not and will not affect the length of service in the government pursuant to CSC Res. No. 92-1669 which states that "services rendered at RISSI are deemed rendered and performed for private entity". It is noted that Mrs. Virginia Mercado was not included in the stated BIR Ruling. However, since as represented by the Personnel Division, she was a former RISSI employee who was absorbed by the BIR, and thus, similarly situated with those employees mentioned in the ruling, namely, Aurora de Joya, Gerundia Nisperos and Leonardo Rebuelta, she shall likewise enjoy the benefits granted under the mentioned BIR Ruling. cdtech In view of the foregoing considerations, the terminal leave benefits of the aforementioned former RISSI employees who were absorbed by the BIR, shall be computed as follows: 1. For terminal leave credits earned while employed in the RISSI, the basis to be used shall be their last salary prior to their separation from RISSI; 2. For terminal leave credits earned while employed in the BIR, the basis shall be their last salary before retirement from the BIR. For your guidance. aisadc Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue