October 14, 2009
BIR RULING [SB-(045) 647-09]
32 (B) (6) (b); DA-291-92
Venerando D. Tadlas
502 Dr. Sixto Antonio Ave.
Maybunga, Pasig City
Sir :
This refers to your letter dated July 21, 2009 stating that you were employed at LUNAR STEEL CORPORATION. On March 8, 2009 you met an accident resulting to the amputation of your left arm. Despite your desire to continue working, you have been prevented from working due to physical disability. THacES
In reply thereto, please be informed that Section 32 (B) (6) (b) of the Tax Code, as amended, any amount received by an official or employee or by his heirs from his employer as a consequence of separation of such official or employee from the service of the employer due to death, sickness or other physical disability or for any cause beyond the control of the said official or employee is exempt from taxes regardless of age or length of service. The phrase "for any cause beyond the control of the said official or employee" connotes involuntariness on the part of the official or employee. The separation...
