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 $rroyo %2
nd
"istrict &amarines
'ur( and !ep. )loria #acapagal*$rroyo %2
nd
"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 government6 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 +-0000.00 for each dependent child with
disability regardless of age9 and
-( $llowing an additional exemption of +-0000.00 for each dependent parent with
disability.
;nder HB 2660 'ection ,-%B( shall now read8 4$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
%+-0000.00( 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.
NR # 3342B
JAN. 10, 2014
$nother new provision states8 4$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