Deductibility of Monthly Representation Allowances Given to Government Officials

February 4, 1960 BIR RULING NO. 030-60 Mr. Enrico Palomar Postmaster General M a n i l a S i r : Reference is made to your letter of even date which is quoted below: "I have the honor to request information if representation allowances given to government officials under Section 15 of Republic Act 2300 (Budget Act) have to be included in the income tax return, considering the nature under which said expenses have been authorized." In reply thereto, I have the honor to inform you that since the monthly representation allowances given to government officials under Section 15 of Republic Act No. 2300 constitute additional compensation for services rendered, they should be included in the income tax returns of the officials concerned. They are, however, deductible from the gross income as ordinary and necessary expenses provided that the claim for such deduction is substantiated by proof showing the amount actually spent. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue