BIR Ruling [DA-066-97]

February 11, 1997 BIR RULING [DA-066-97] Quorum Litigation Services (Phil.), Inc. 5F Pioneer Stationers Building 252 Urban Avenue Makati City Attention: Mr . Jose Ricardo M . Moran General Manager Gentlemen : This refers to your letter dated January 16, 1997 addressed to Revenue District Officer, Atty. Francis R. Guzman, requesting for a reduction of the compromise amount on your assessment from One Hundred Five Thousand Pesos (P105,000.00) to Twenty Five Thousand Pesos (P25,000.00) based on your following reasons, viz: "1.) I learned from our Accounting Supervisor, Mia Derit, who paid you a visit on January 15, 1997, that there was a previous AUTHORITY TO ACCEPT PAYMENT (ATAP) dated sometime in October 1996 which we were not aware of or advised. If we had been duly advised we would have settled the interest, penalties and surcharges in full then. This would have in fact lessened the lapse of almost Two (2) and Half (1/2) months of additional charges. cdll "2.) Given that the foregoing has already passed and for which we place no blame on anyone, we are prepared to pay the full surcharge, interest and penalties as you have assessed immediately and in a single payment. "3.) As the assessment is made in one lump sum, consideration should be given for our paying the normal maximum single compromise amount. "4.) While we are not seeking to establish the following explanation as an excuse or a negation of our liability we feel you may consider this in conjunction with all of the foregoing. The previous Accounting Manager for whatever reasons failed to make payments monthly in spite of: a) Having signed checks already issued in favor of the BIR. She just kept these in her drawer and when she left the company she turned them over without any explanation. b) The company's having sufficient funds to make good checks issued and held by the said former Accounting Manager. It is the company's position to seek possible legal remedies against the former Accounting Manager including criminal charges. It was because of the above that the company (including other anomalies and financial improprieties) did not regularize the person upon the completion of the Six (6) month probation last October 1, 1996." that the tax due, penalties and surcharges from March 1996 to August 1996 is computed as follows: Tax Due P1,631,486.36 25% Surcharge P407,871.59 Interest 134,643.12 Compromise 105,000.00 P647,514.71 T o t a l P2,279,001.07 =========== and that except for the compromise settlement in the amount of One Hundred Five Thousand Pesos (P105,000.00) which you requested to be reduced to twenty Five Thousand Pesos (P25,000.00), your company is willing to pay the tax due plus 25% surcharge and interest. In reply, please be informed that in view of the above states justifiable reasons, your request is hereby granted and your offer to pay the amount of Two Million One Hundred Ninety Nine Thousand One & 07/100 Pesos (P2,199,001.07) broken down as follows: Tax Due P1,631,486.36 25% Surcharge P407,871.59 Interest 134,643.12 Compromise 25,000.00 P567,514.71 T o t a l P2,199,001.07 =========== is hereby accepted. You are therefore advised to remit to this Office the aforesaid amount. The acceptance by this Office of your tender of payment in the amount of Two Million One Hundred Ninety Nine Thousand Pesos One & 07/100 Pesos (P2,199,001.07) does not preclude this Office from conducting an investigation/verification of your tax liability if it is found out that there is still a deficiency in the payment made. LLjur Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue