REVENUE MEMORANDUM CIRCULAR NO. 48-2004 issued on July 26,2004 revokes/cancels BIR Rulings Nos. 076-88 (dated March 4, 1988), 004-89 (dated January 19, 1989) and 191-89 (dated September 4, 1989), in view of the decision of the Court of Tax Appeals (CTA) in CTA Case No. 5233 entitled “AB Capital and Investment Corporation vs. Commissioner of Internal Revenue.”
           In the aforesaid case, CTA categorically held that “his (Mr. Ramon del Rosario, Jr.) separation from the company (ABCIC) by reason of his acceptance of a position as Secretary of Finance cannot be considered as something beyond his control.” Hence, any and all benefits received by a retiring employee/officer from the private sector to join the government service are therefore, subject to tax and consequently to the withholding tax.