BIR Ruling [DA-175-98]

May 5, 1998 BIR RULING [DA-175-98] Vidar-SMS Holdings, Inc. 1510 East Tower, PSE Centre Exchange Road, Ortigas Complex Pasig City, Metro Manila Attention: Ms . Fe M . Canzon Finance Manager Gentlemen : This refers to your two (2) letters both dated May 15, 1997 requesting exemption from the payment of penalties and other charges in connection with the late remittance of your withholding tax for April, 1997 in the amount of P5,695.88 and P15,151.12 or a total of P21,847.00 due to problems in the enrollment in the bank and submission of Taxpayers' Record Update (TRU). In reply, please be informed that Section 204 of the Tax Code, as amended provides as follows: "SEC. 204. Authority of the Commissioner to compromise, abate and refund/credit taxes . The Commissioner may "(1) . . . "(2) Abate or cancel a tax liability, when (a) The tax or any portion thereof appears to be unjustly or excessively assessed; or (b) The administration and collection costs involved do not justify the collection of the amount due." It is very clear from the aforesaid provision of law that the Commissioner may only abate or condone taxes or any portion thereof when it appears to be unjustly or excessively assessed; or the administration and collection costs involved do not justify the collection of the amount due. In the instant case, the subject taxpayer is requesting for waiver of penalties and interests due to problems in the enrollment with the bank and submission of Taxpayer's Record Update. The subject tax is not unjustly or excessively assessed nor does the administration and collection costs involved do not justify the collection of the amount due. In view thereof, we regret to inform you that we cannot grant your request for exemption from payment of penalties and other charges in connection with your late remittance of your withholding tax for the month of April, 1997. Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue