BIR Ruling

January 20, 1976 The Regional Director Revenue Region No. 4-B Quezon City S i r : This refers to your letter dated December 18, 1975 requesting information whether a suggested compromise penalty in the amount of P100.00 or less, in lieu of criminal prosecution for violation of the Bookkeeping Regulations which appears in our IBM list has been automatically condoned by Presidential Decree No. 68. In reply, you are informed in the affirmative, as regards the said accounts existing as of November 24, 1972. Sections 3(a) and 4 of Revenue Regulations No. 14-72 dated December 8, 1972 implementing Presidential Decree No. 68 provides: "SEC. 3. Definition of Terms . "(a) Unpaid delinquent Tax Account . The term 'unpaid delinquent tax account means an account appearing in the IBM lists of the Bureau of Internal Revenue as of November 24, 1972, or an account, although unlisted, has been demanded in a letter of demand or assessment notice issued on or before November 24, 1972. It shall include the tax proper surcharges, interests accruing as of November 24, 1972 and penalties." "SEC. 4. Unpaid Tax Accounts That Are To Be Condoned . All unpaid tax accounts involving amounts of P100.00 or less as of November 24, 1972 are condoned. This refers to every individual unpaid tax account of a taxpayer in the amount of P100.00 or less as appearing in the records of the Bureau whether listed or not in the DPC delinquency list." The above-quoted provisions of the regulations does not distinguish between an assessment which involves only the tax proper, surcharges interests and penalties and one which involves only the compromise penalty. It is clear that the term "unpaid delinquent tax account" includes a compromise penalty whether included in the tax assessment or assessed separately against the taxpayer. cdtech Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."