Saturday, May 21, 2011
SENATE OFFICE, Manila, May 22, 2011-Senator Ralph G. Recto, chair of the Senate ways and means said that tax Code revision lifts cap on qualified dependents like parents and special children as additional tax exemptions, saying that aside from a looming increase in wages, ordinary taxpayers could also look forward to additional savings or increased take-home pay resulting from their tax payments by allowing them to declare as tax deductible more than the four qualified dependents currently allowed by law.
“A consolidated bill awaiting plenary presentation will amend the National Internal Revenue Code (NIRC) or Tax Code and scrap the maximum limit of four qualified tax dependents,” he said.
Recto said that the NIRC sets a cap of up to a maximum of four qualified dependents that a taxpayer could claim as additional allowable tax exemptions, explaining that once the measure is approved, any individual taxpayer could declare more than four qualified dependent children as long as they’re below 21 years old and, in exchange, obtain a tax deduction of P25,000 for every dependent.
“An individual taxpayer who filed for five qualified dependents would be entitled to a P125,000 deduction in his income tax payment,” Recto said, adding that an individual taxpayer living with or looking after his biological parents could declare them as additional qualified dependents as long as the parents are not gainfully employed or are incapable of self support because of mental or physical defect.
“You don’t want them thrown in foster care, which is very un-Filipino. We should take care of our parents during their twilight years,” he said.
The consolidated bill authored by Recto, his co-authors Senators Manuel Villar and Antonino Trillanes IV grant an additional tax deduction of P25,000 to a taxpayer acting as legal guardian to a physically or mentally-challenged person regardless of age.
“This would ensure that the disabled and special children would be taken cared of during their difficult years,” Recto said, lamenting that capping the number of qualified tax dependents to only four persons is effectively a family planning method in disguise.
“You don’t implement your family planning program through a tax fiat,” Recto added.
“To continue taking care of their parents and people with physical and mental defect, this proposed measure makes easier for taxpaying individuals who are already burdened by tough economic times,” he said, stressing that even with or without the promise of additional tax deductions, children should always take care of their parents and should have a caring heart for the disabled and special children. (Jason de Asis)
Disclaimer: The comments uploaded on this blog do not necessarily represent or reflect the views of management and owner of "THE CATHOLIC MEDIA NETWORK NEWS ONLINE".