BIR Ruling [DA-129-98]

March 27, 1998 BIR RULING [DA-129-98] Roctest Machinery and Drilling Corp. Suite 303 Continental Court Condominium 47 Annapolis St., Greenhills, San Juan Metro Manila Attention: Mr . Antonio C . Cruz President/General Manager Gentlemen : This refers to your letter dated August 5, 1996 and your follow-up letter dated February 6, 1997 requesting for the waiver of the payment of compromise penalties, surcharges and interests relative to your late remittance of the withholding taxes due for the months of November and December 1995 in the amount of P21,199.63 and P16,881.56, respectively, and for the month of January 1996, in the amount of P19,065.23. It is represented that the delay was due to the fact that your company experienced very tight financial conditions during the last quarter of 1995 and early part of 1996. In reply, please be informed that your request cannot be granted for lack of legal basis. Under Section 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) cdta Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue