Queries of Free Press Readers

July 29, 1958 BIR RULING NO. 410-58 Philippine Free Press Free Press Bldg., 708 Rizal Ave. Manila Attention : Information Department Gentlemen : In connection with the queries of Free Press Readers attached to your letter dated March 22, 1958, I wish to inform you the following: cdt Query of Mr . F . M . Contreras : The father is entitled to P600.00 additional exemption for his child born on December 31, 1957 but not to a child who became 21 years of age on September 15, 1957, unless the latter is incapable of self-support because mentally or physically defective. The law provides that in order that the taxpayer may be entitled to an additional exemption of P600, such child must be less than 21 years of age as of the end of the taxable year or even if over 21 years of age, if such child is incapable of self-support because mentally or physically defective. The amount of the personal and additional exemptions shall be apportioned only in case the status of the taxpayer changes during the taxable year by reason of his death. Query of Mr . Pedro V . Suzara : 1. An employee receiving an additional income from his farmland must keep at least the Simplified Set of Bookkeeping Records if his total income does not exceed P5,000.00 per quarter. Accordingly, a person receiving a salary of a little more than P1,800 per annum and the value of about 20 cavans from his farmland must accompany his income tax return with the yearly statements of networth and operations pursuant to Section 6 of Revenue Regulations No. V-1, as amended by Revenue Regulations No. V-13. 2 & 3. A compromise is a contract whereby the parties, by making reciprocal concessions, avoid a litigation or put an end to one already commenced. (Art. 2028, New Civil Code). Violation of a provision of the Tax Code or regulation promulgated in accordance therewith makes the violator amenable to criminal prosecution. Instead of immediate prosecution in court, the Commissioner of Internal Revenue may suggest to the violator the payment of a sum of money as compromise in extrajudicial settlement of the said violation. As requested, the letters of Messrs. Contreras and Suzara to you are herewith returned. cdta Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue