BIR Ruling No. 382-61

No date supplied BIR RULING NO. 382-61 Reference is made to your letter . . . wherein you requested the opinion of this Office regarding the deduction of transportation expenses incurred in connection with your additional official civilian function as representative of the Undersecretary of National Defense in the Deportation Board. You allege that as member of Deportation Board you have to travel at your expense from your office at Camp Murphy to Padre Faura, Manila, back and forth sometimes twice daily. You further allege that you are not given any per diem, cash allowances nor transportation expenses in connection with said duties by the Department of National Defense nor the Deportation Board. (See certification attached). cdpr While strictly speaking, a person in the employ of the Government is not engaged in or considered engaged in a trade or business, yet there is no denying the fact that your travel from your Office at Camp Murphy, Quezon City, to the Deportation Board at Padre Faura, Manila, and return is travel on official business. The government ordinarily reimburses such travel expenses. This is obviously the reason why ordinarily such expenses are not deductible from gross income for purposes of the income tax. It was held that, "full-time and many part-time military and civilian officers and employees of the Government are regarded as engaged in a trade or business, even though they are not compensated for their services" (Rev. Rul. 55-109, 1955-1 CB 261, reproduced in C. C. H 1960 Vol. 1, page 19019). "Where a member of a reserved unit of the Armed Forces is required to make trips (not extending overnight) between the city or general area which constitutes his principal or regular post of duty and the location of drills conducted away from such area, he may deduct his roundtrip transportation expenses so incurred as ordinary and necessary business expenses under Section 23(a)(1)(A) of the 1939 Code, provided free transportation between such locations is not furnished by the Armed Forces. This conclusion is applicable regardless of whether the taxpayer attends such drills in the evening after his regular working hours or on an otherwise nonworking day. (Ibid.) prcd On the basis of the facts enumerated in your letter that you do not receive any reimbursement for your traveling expenses and neither do you receive per diem nor allowances as member of the Deportation Board, this Office is of the opinion and so holds that your transportation expenses including depreciation and repairs incident thereto, from your office at Camp Murphy, Quezon City, to the Deportation Board at Padre Faura, Manila, may be considered as ordinary and necessary business expenses, hence, deductible from your gross income for purposes of the income tax.