BIR Ruling [DA-021-97]

January 15, 1997 BIR RULING [DA-021-97] Philacor Credit Corporation 102 First Midland Condominium Gamboa Street, Legaspi Village Makati City Attention: Ms . Leticia B . Pangan Manager, Finance Gentlemen : This refers to your letter dated November 20, 1996 requesting for the waiver of the payment of surcharge relative to your late payment of your corporate income tax which was due on or before the 15th of November 1996. It is represented that the delay was due to unintentional inadvertence of the due dates of your tax payments; and that when you discovered the delay in your tax payments, you immediately paid the amount of P23,407,416.00 on November 20, 1996. In reply thereto, please be informed that your request cannot be granted for lack of legal basis. Under Sections 248 (a)(3) and 249, both of the Tax Code, as amended, the imposition of the surcharge and interest on delinquency is mandatory. Strong reasons of policy support a strict observance of the rule regarding the payment of tax. The laws imposing penalties for delinquencies are clearly intended to hasten tax payments or punish evasions or neglect of duty in respect thereof. If delays in tax payments are to be condoned for light reasons, the law imposing penalties for delinquencies would be rendered nugatory and the maintenance of the government and its multifarious activities would be as precarious as taxpayers are willing or unwilling to pay their obligations to the state on time. (Jamora vs. Meer, 74 Phil. 22) aisadc Very truly yours, ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)