Non-Deductibility of the Expenses Incurred in the Maintenance and Improvement of a Portion of the Provincial Road
BIR Ruling No. 196-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 5, 1988
Full text
May 5, 1988 BIR RULING NO. 196-88 29 (h) (1) 000-00 196-88 Gentlemen : This refers to your letter dated January 28, 1988 requesting that the expense you incurred in the maintenance and improvement of a portion of the provincial road be allowed as a deduction from your gross income. It is represented that you together with a neighboring mining firm, North Davao Mining Corporation (NDMC) undertook the maintenance and improvement of a portion of the provincial road coming from Mawab town up to the mining road leading to the minesite of NDMC; that the stretch of the road that you and NDMC maintain covers approximately 33 kilometers; and that the amounts expended by you are as follows: 1986-P197,647.99 and 1987- P132,641.86. In reply, please be informed in the negative. The maintenance and improvement cost which you and NDMC incurred for a portion of the aforesaid provincial road is not deductible from your gross income and that of NDMC considering that such cost is for your own benefit and that of NDMC. aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.