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RMC No. 48-2004: Notifies the revocation/cancellation of BIR Ruling Nos. 076-88, 004-89 and 191-89 pursuant to Court of Tax Appeals Case No. 5233

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Summary

RMC No. 48-2004 revokes BIR Rulings Nos. 076-88 (dated March 4, 1988), 004-89 (dated January 19, 1989) and 191-89 (dated September 4, 1989), following the CTA decision in CTA Case No. 5233, AB Capital and Investment Corporation vs. Commissioner of Internal Revenue.

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Key points

  1. CTA holding. The CTA held that Mr. Ramon del Rosario, Jr.’s separation from the company (ABCIC) by reason of accepting a position as Secretary of Finance cannot be considered as something beyond his control.
  2. Tax consequence. Any and all benefits received by a retiring employee or officer from the private sector to join the government service are therefore subject to tax and to withholding tax.

Who is affected

  • Retiring private sector employees and officers who join government service

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.