JAN.

10, 2014

NR # 3342B

Additional tax exemptions for individual taxpayers sought

Lawmakers are now considering a measure that would ease the financial burden of individual taxpayers through possible additional tax exemptions. HB 2660 authored by !ep. "iosdado #acapagal $rroyo %2nd "istrict &amarines 'ur( and !ep. )loria #acapagal*$rroyo %2nd "istrict +ampanga( seeks to grant additional exemption to individual taxpayers by amending 'ection ,- %B( of the .ational /nternal !evenue &ode of 0112 as amended by !.$. .o. 1-03. 45e really hope that the additional exemptions proposed under the bill will be a welcome respite for the unheralded working class who provides the much*needed revenues for the government 6 the $rroyos said. 7he salient provisions to ease the financial woes of the working class include the following8 0( !emoving the limitation on the number of allowable dependents and including an additional exemption for those who have dependents with disability9 2( /ncluding legitimated children and parent:s in the definition of dependents9 ,( $llowing a legal guardian to a person with mental and physical disability to claim additional exemption9 3( $llowing an additional exemption of +-0 000.00 for each dependent child with disability regardless of age9 and -( $llowing an additional exemption of +-0 000.00 for each dependent parent with disability.

;nder HB 2660 'ection ,-%B( shall now read8 4$dditional <xemption for "ependents. = 7here shall be allowed an individual exemption of 7wenty >ive 7housand +esos %+2- 000.00( for each dependent without disability and >ifty 7housand +esos %+-0 000.00( for each dependent with disability.6 However as has been before the additional exemption for dependents referred to by the measure shall be claimed by only one of the spouses in case of married individuals. $lso in case of legally separated spouses additional exemption may be claimed only by the spouse who has custody of the child or children.

$nother new provision states8 4$n individual taxpayer who is the legal guardian or a disabled person may claim the additional exemption for the said dependent8 +rovided that only the legal guardian can avail of the additional exemption for a particular taxable year to the exclusion of the biological parents.6 HB 2660 the term dependent refers to 4a legitimate legitimated illegitimate or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more than 20*years old unmarried and not gainfully employed or if such dependent regardless of age is incapable of self*support because of mental or physical disability.6 Likewise a dependent is 4a parent or both parents living with the taxpayer not gainfully employed and dependent upon the latter for chief support or where such parent are incapable of self*support because of mental or physical disability or old age.6 ?n the other hand the term disabled person refers to 4a person suffering from restriction or different abilities as a result of mental physical or sensory impairment to perform an activity in the manner or within the range considered normal for a human being.6 However HB 2660 provides that 4notwithstanding the penalty provided for in 'ection 262 of the .ational /nternal !evenue &ode of 0112 as amended any person who wilfully violates the preceding section by declaring fictitious dependents shall upon conviction be liable for the payment of a fine e@uivalent to thrice the amount of tax interest and surcharges due from the taxpayer.6 %,0( dpt