BIR Ruling [DA-432-98]

September 24, 1998 BIR RULING [DA-432-98] Office of the Vice-President Philippine International Convention Center Cultural Center of the Philippine Complex Manila Attention: Ms . Vivian L . Gonzaga Women's Desk Gentlemen : This refers to your letter dated September 4, 1998, requesting on behalf of Mr. Marcial Ibanez for tax exemption of the latter's terminal leave pay on account of his separation from the service of the National Steel Corporation (NSC) due to ill health or physical disability. In connection therewith, please be informed that the records of our Law Division show that on June 19, 1997, NSC filed a request for the tax exemption of Mr. Ibanez' terminal leave benefits together with the documents pertaining to his illness. Upon receipt of the said request, the same was immediately referred by the Law Division to the Medical and Dental Division for comment and recommendation and for further medical examination of the concerned employee if warranted, pursuant to Revenue Memorandum Order No. 25-91. The findings of Dr. Maria Fe Pizarro-Santos, Chief of our Medical and Dental Division showed that Mr. Ibanez "can either still engage in other gainful employment and/or his medical condition is not expected to deteriorate or cause death if he continues to be engaged in his present employment." In view of the said unfavorable report of our Medical Officer, NSC immediately pulled out all papers pertaining to the claim of Mr. Ibanez and since then, no communication has been received by this Office either from NSC or from Mr. Ibanez himself. Likewise, we did not receive the alleged undated letter of Atty. Arthur Lluch Padilla, Counsel of Mr. Ibanez, seeking for a reconsideration of the findings of Dr. Pizarro-Santos. In view of the foregoing, NSC should be requested by Mr. Ibanez to re-file with this Office all papers pertinent to his request for exemption from tax of his terminal leave benefits in order that another medical re-examination can be conducted. asiadc Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue