BIR Ruling [DA-101-97]

March 18, 1997 BIR RULING [DA-101-97] Primetown Property Group, Inc. Penthouse Century Citadel Inn Makati 5007 P. Burgos Street Bel-Air, Makati City Attention: Mr . Gilbert Y . Yap Executive Vice-President Gentlemen : This refers to the letter of Ms. Thelma C. Rodriguez dated April 15, 1996 and your letter dated July 10, 1996 in effect requesting for an extension of time within which to pay your total income tax due for the year 1995 in the amount of Sixty-five million nine hundred fifty-eight thousand nine hundred sixty-three pesos (P65,958,963.00) in two (2) equal installments. cdti It is represented that your inability to pay your total income tax due for 1995 upon filing your return was due to the adverse effect such payment would have on your liquidity; that a substantial depletion in your cash position will result in your failure to pay numerous obligations, mostly to your contractors, which in turn will prejudice the public which buys your property development projects; that you are willing to pay the interest on your second installment payment; and that you are further requesting for a waiver of the imposition of surcharge on your second installment payment. In reply thereto, please be informed that Section 249(d) of the Tax Code, as amended provides, viz; "SEC. 249. Interest . "(a) . . . "(b) . . . "(c) . . . "(d) Interest on extended payment . If any person required to pay the tax is qualified and elects to pay the tax on installment under the provisions of this Code, but fails to pay the tax or any installment hereof, or any part of such amount or installment on or before the date prescribed for its payment, or where the Commissioner has authorized an extension of time within which to pay a tax or a deficiency tax or any part at the rate hereinabove prescribed on the tax or deficiency tax or any part thereof unpaid from the date of notice and demand until it is paid ." Such being the case, and considering the reasons for your failure to pay your total income tax due for the year 1995 at the time the return is filed, your request for an extension of time within which to pay your tax liability in the amount of Sixty five million nine hundred fifty eight thousand nine hundred sixty three pesos (P65,958,963.00) in two equal installments is hereby granted. Thus, if you have already paid the first installment last April 15, 1996, your unpaid tax due in the amount of Thirty two million nine hundred seventy-nine thousand four hundred eighty-one pesos P32,979,481.00 which represents the second installment will be subjected to the statutory penalties, in accordance with the provisions of Sec. 49(b) of the Tax Code, as amended. However, considering your aforementioned reasons for your failure to pay your total income tax due for the year 1995 at the time your return was filed, your request for the waiver of the surcharge is hereby granted. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue