Is the allowance given to me in an informal work arrangement taxable?

Hello,

From April to December 2011, my boss hired me as an assistant in her personal capacity. We had no formal/written arrangements /contract whatsoever. I was not required to pay PhilHealth and SSS contributions and she did not require me to have a TIN number. She gave me an allowance of P18,000/month. Is this allowance tax exempted or do I have to pay tax for this? If I have to pay tax for it, how do I compute the tax due plus penalties if I intend to file it this year? Also, do I really have to supply BIR my former boss' TIN number in the form or is her full name sufficient? Am I the only one liable or does my former boss have liability as well?

Thanks for your help and looking forward to your response.  

frozenviolette wrote:Hello,

From April to December 2011, my boss hired me as an assistant in her personal capacity. We had no formal/written arrangements /contract whatsoever. I was not required to pay PhilHealth and SSS contributions and she did not require me to have a TIN number. She gave me an allowance of P18,000/month. Is this allowance tax exempted or do I have to pay tax for this? If I have to pay tax for it, how do I compute the tax due plus penalties if I intend to file it this year? Also, do I really have to supply BIR my former boss' TIN number in the form or is her full name sufficient? Am I the only one liable or does my former boss have liability as well?

Thanks for your help and looking forward to your response.  

That's 3 years ago. What have you been doing since 2012?

I've been gainfully employed in the private sector since then. This matter slipped my mind until I read something about taxable allowances (I don't know if this applies to my situation before.) So is it taxable and if it is, how do I compute for the tax due plus penalties? Thanks so much for all your replies.

frozenviolette wrote:I've been gainfully employed in the private sector since then. This matter slipped my mind until I read something about taxable allowances (I don't know if this applies to my situation before.) So is it taxable and if it is, how do I compute for the tax due plus penalties?  Thanks so much for all your replies.

Any tax due would be computed for all income in 2011, with a maximum of 32%. Plus penalties of up to 50% of amount.

For an exact computation, you need to go to BIR, which might not be a good thing for you.