BIR Ruling

December 14, 1976 Criminal Responsibility for Failure to File Return or to Pay the Tax Due This refers to the internal revenue case of the Old Gold Tobacco Corporation of which you are the General Manager, involving the amount of P36,465.78 representing deficiency income tax inclusive of interest for the year 1969, which has been referred to your Prosecution Division for evaluation of the criminal aspects of the case. As General Manager of the above corporation, you are liable under the 1st paragraph of Section 73 of the Tax Code as implemented by Section 238 of the Income Tax Regulations provides; which "Sec. 73. Penalty for failure to file return or to pay the tax . Any one liable to pay the tax, . . . who refuses or neglects to pay such tax . . . at the time or times herein specified in each year, shall be punished by a fine or not more than two thousand pesos or by imprisonment for not more than six (6) months, or both." xxx xxx xxx" In case a corporation fails to file its return or to pay the tax, the penalty prescribed under the first paragraph of Section 73 will be imposed upon the President, Vice-President or other responsible person required to file the return of the corporation or to pay the tax due from the same, in accordance with the provisions of Section 46(a) and 51(b) of the Tax Code (Sec. 238, Rev. Regulations No. 2). In this connection, we are giving you the opportunity to settle the aforesaid tax liability including delinquency penalties for late payment thereof, within ten (10) days from receipt hereof; otherwise, this Office will take action against you including your criminal prosecution without further notice, which action will not be compromised once the criminal prosecution is commenced. If you are willing to settle this liability, you may confer with the Chief, Prosecution Division, 5th Floor, Old DBP Building, Escolta, Manila, for the preparation of the papers necessary for such settlement. cdtech