BIR Ruling [DA-313-00]

August 21, 2000 BIR RULING [DA-313-00] Hon . Jimmie C . Policarpio Presidential Legislative Adviser and Head, PLLO Office of the President Rm. 364, Mabini Hall Malacaang S i r : This refers to your letter dated March 13, 2000 requesting our comment and recommendation on House Bill No. 8638 entitled: " AN ACT AMENDING SECTION TWENTY-SEVEN OF THE TAX REFORM ACT OF 1997 AND HEREBY IMPOSING A TAX ON INTEREST INCOME AND CAPITAL GAINS OF THE GOVERNMENT' SERVICE INSURANCE SYSTEM AND SOCIAL SECURITY SYSTEM ." In connection therewith, please be informed that we are in full agreement with the proposal to subject to tax the investment income of the GSIS and SSS as it will place them in equal footing with other GOCCs and private corporations which are subject to 20% final tax on their interest income and capital gains tax on their dealings in property. At the same time, the taxes collected from the GSIS and SSS on their investment income will be an additional source of revenue to the government. In view thereof, this Office strongly supports the enactment into law of House Bill No. 8638. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group