September 23, 2009
BIR RULING [SB-(042) 610-09]
32 (B) (6) (b); SB-005-2007
Isabela II Electric Cooperative, Inc.
Government Center, Alibagu
Ilagan, Isabela
Attention: Mr. Michael B. Paguirigan
Internal Auditor
Gentleman :
This refers to your letter dated August 28, 2009 requesting for a ruling that the separation benefits to be received by one of your employees in Isabela II Electric Cooperative, Inc. (ISELCO II) is exempt from withholding tax pursuant to Section 32 (B) (6) (b) of the Tax Code of 1997, as amended.
Documents submitted show that Michael B. Paguirigan, 46 years of age, is your Internal Auditor and has been under the employ of ISELCO II since July 9, 1985. Prior to his retirement, he was the Internal Auditor of ISELCO II. Based on the Medical Certificate issued by Nelson O. Paguirigan, MD of Gov. Faustino N. Dy, Sr. Memorial Hospital in Ilagan, Isabela, he was diagnosed with Adenola, Colonic Carcinoma, Stage III. The above physician likewise certified that the aforesaid employee was operated in the hospital on June 9, 2008 relative to his affliction.
In reply, please be informed that pursuant to...
