BIR Ruling [DA-477-03]

December 10, 2003 BIR RULING [DA-477-03] 204; 129-99; DA-213-2001 Ronalyn D. Santos Guagua National Colleges, Guagua, Pampanga M a d a m : This refers to your undated letter indorsed by the Office of the President, Presidential Action Center and received by this Office on April 12, 2002. In your letter you state that to finance and support your needs and studies, both your parents sacrificed to work abroad just to provide you with a good future; and that in order to ease the pain and loneliness of being apart, you communicate with each other by means of mail and telephone. Because of this, you are making an appeal for exemption from the 10% overseas communications tax on all overseas calls under Section 120 of the Tax Code of 1997 since, as we all know, overseas workers are heroes whose dollar earnings help the Philippine economy. 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 the 10% overseas communications tax 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) The institution you might wish to approach is Congress which can enact a law granting your request by legislation the exemption you seek. This constitutes our final stand on the matter. IHcTDA Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group