BIR Ruling [DA-094-96]

February 28, 1996 BIR RULING [DA-094-96] Department of Labor and Employment Intramuros, Manila Attention: Ms . Florida M . Lacanloloy OIC Management Cluster Gentlemen : This refers to your letter dated July 3, 1995 requesting for the condonation of your withholding tax liability amounting to P8,575.87 as per Income Tax Ass./Demand No. 750A-0058-89-92. It is represented that you did not provide allotment/budget to cover such obligation; and that since this is a 1989 deficiency, it will be treated as an unbooked obligation payment of which is subject to the approval of the Department of Budget and Management. In reply, please be informed that withholding tax is imposed on the income payment by persons constituted as withholding agent, such as the government agencies. It is a tax due on the income of the recipient, required to be withheld at source and remitted to the government within the period prescribed by law and the pertinent regulations thereto. Apparently, while the basic tax is only P1,338.32, interest of P737.55 and compromise penalty of P6,500 were imposed presumably due to failure to remit on time as withholding tax. Such being the case, your request for condonation of your withholding tax liability amounting to P8,575.87 as per Income Tax Ass./Demand No. 750A-0058-89-92 is hereby denied for lack of legal basis. cdtech Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue