BIR Ruling [DA-703-99]

December 22, 1999 BIR RULING [DA-703-99] National Steel Corporation 377 Sen. Gil J. Puyat Makati City Attention: Ms . Mary Mylene T . Santos Senior Manager Corporate Admin . Gentlemen : This refers to your letter requesting clarification as to the effectivity of BIR Ruling No. DA-658-99 dated November 29, 1999 regarding tax exemption of the retirement benefits of the employees of the National Steel Corporation. In reply, please be informed that it is policy of the State to afford protection to labor and to resolve doubts in favor of the same. (Article 3 and 4, Labor Code of the Philippines) Considering that the company's announcement of forced leave and temporary shutdown last October 8, 1999 triggered the involuntary availments of the benefits of the NSC Retirement Plan leaving qualified employees with no other option except to involuntarily avail the said ERP, so they can legally look for another job or work with another company in order to sustain the basic needs of his/her family, this Office is of the opinion that the effectivity of BIR Ruling No. DA-658-99 dated November 29, 1999 retroacts to the date of the company's announcement of the forced leave and temporary shutdown. Consequently, those who retired effective after the said announcement are covered by the said ruling. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue