BIR Ruling [UN-208-95]

June 9, 1995 BIR RULING [UN-208-95] MEMORANDUM FOR The Commissioner Referred herewith are the pertinent documents relative to the housing loan application of Mrs. Ma. Mary Ann Dizon, of No. 8 Apollo II, Moonwalk Village, Las Pias, Metro Manila, who is presently employed as Data Entry Machine Operator III, hired on a contractual basis under the 5-year Tax Computerization Program of the Bureau of Internal Revenue (BIR) and assigned at its Information Systems and Operations Services. It appears that her housing loan application under the Unified Home Lending Program (UHLP) of the Government has been approved subject to the condition that her employer will agree to the Automatic Payroll Deduction of her monthly loan amortization in the amount of P5,350.02 for remittance to the National Home Mortgage Finance Corporation (NHMFC). Since Mrs. Dizon's employment in the BIR is contractual, the Revenue Disbursement/Accounting Division is hesitant to withhold and remit the above amount on a regular basis. At present, they are withholding similar loan amortizations but only of regular employees holding permanent appointments. It is noted that mass housing program is a high government priority, and that automatic payroll deduction is a requirement imposed by the NHMFC for the availment of the loan. This Bureau will be placed in an untenable position if it refuses to allow the borrower's request, for automatic payroll deduction because it will amount to a virtual disqualification of contractual employees like Mrs. Dizon; thus, defeating the objective of helping low salaries employees acquire low-cost housing units. Considering that Mrs. Dizon's present salary of P7,010.00 per month is above her monthly loan amortization of P5,350.62, there is therefore, no legal basis to refuse her request. Accordingly, it is recommended that the amount of P5,350.62 per month be deducted from Mrs. Dizon's salary and remitted to the NHMFC by way of compliance with the latter's condition for availment of the loan. Recommending Approval: MILAGROS V. REGALADO Chief, Law Division CONCURRING: ALICIA P. CLEMENO Assistant Commissioner (Legal Service) APPROVED: LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue