January 22, 1999

BIR RULING NO. 009-99

86(A)-000-00-009-99
Mr. Pepito A. Gonzales
Certified Public Accountant
2895 Benita Street
Tondo, Manila
Sir:
This refers to your letter dated November 19, 1998, requesting for a ruling to
the effect that all items enumerated in Section 86(A) of the Tax Code of 1997 are
allowable as deductions from the value of the gross estate of a resident decedent, in
computing the net estate upon which the estate tax shall be due.
cdasia

Section 86(A) of the Tax Code of 1997 enumerates the allowable deductions in
computing the net estate of a deceased resident or citizen, to wit:
1.
2.
3.
4.
5.
6.
7.

Expenses, Losses, Indebtedness, and Taxes - . . .;

Property Previously Taxed - . . .;
Transfers for Public Use - . . .;
The Home - . . .;
Standard Deduction - . . .;
Medical Expenses and - . . .; and
Amount Received by Heirs under Republic Act No. 4917 - . . .

In reply, please be informed that when the provisions of a law contain an

enumeration of things, the enumeration shall be construed in the sense of
"mentioned," "indicated," "referred to," or "authorized." (Words and Phrases
Permanent Edition, Vol. 14A, p. 415). The interpretation that must prevail, therefore
is, that the above enumerated items are separate and distinct items, independent of
each other. As such, the above enumerated items are properly authorized by law to be
deducted as independent, separate and distinct items of deduction, which may
properly be deducted from the gross estate of a resident decedent, subject to the
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CD Technologies Asia, Inc.

Taxation 2005

limitations or conditions that are provided for under each said item above.

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Clearly, therefore, it is not a requirement of the law, that the amounts

computed, corresponding to the other remaining items in the enumeration (namely
#s1-4 and 6-7 of Section 86(A) of the Tax Code of 1997), be included in the standard
deduction, in #5 above, which will limit the entire deduction to the amount of the said
item, amounting to One Million Pesos (P1,000,000.00). This interpretation is
certainly contrary to the intention of the law.
Very truly yours,
(SGD.) BEETHOVEN L. RUALO
Commissioner of Internal Revenue

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CD Technologies Asia, Inc.

Taxation 2005