BIR Ruling

August 7, 1973 Messrs. A. R. Martinez & Associates Certified Public Accountants 205 El Hogar Filipino Bldg. Manila Gentlemen : This refers to your letter dated July 11, 1973 requesting opinion on certain questions relative to the implementation of paragraph 2, Presidential Decree No. 213 dated June 16, 1973, quoted as follows: cdtech "2. Any person liable to pay an income tax who failed to file the corresponding income tax return and pay the tax due thereon, may now voluntarily file the said return or returns incident to the non-filing of the return or non-payment of the tax due thereon, provided he pays TEN PESOS for each year that no return was filed plus an amount equal to twenty per centum of the tax due on the return or returns voluntarily filed." In reply, I have the honor to inform you as follows: 1. The term "person" used in the above-quoted provision only means an "individual". The Decree only covers "individual" or natural persons as clearly enunciated in its "Whereas Clauses". In fact, paragraph 1 of the Decree specifically refers only to individual. In other words, the term "person" as used in the above-quoted provision does not include a trust, estate, corporation, or a duly registered copartnership as defined in Section 84(b) of the Tax Code. 2. The words "return or returns" as used in the above-quoted provision refer to income tax returns for 1972 and prior years. 3. The above-quoted provision applies only to those individual taxpayers who are liable for the payment of income tax but failed to file the corresponding income tax returns and consequently, failed to pay income tax. The provision, therefore, does not apply to an individual filed his regular return or returns on time and paid income taxes thereon but committed certain error therein. In such case, therefore, the amended return or returns may be filed, but the deficiency income taxes shall be subject to the corresponding interest and penalty for late payment. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN 1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."