BIR Ruling [DA-202-98]

May 21, 1998 BIR RULING [DA-202-98] Elan Pharmaceutical Corporation 5th floor, CIV Building 108 Aguirre Street, Legaspi Village Makati City Attention: Ms . Ma . Antoinette S . Gutierrez Finance & Operations Manager Gentlemen : This refers to your letter dated August 13, 1997 requesting for a waiver of penalties due to the following circumstances: 1. This is the first time that Elan Pharmaceutical Corporation (EPC) incurred a one day delay in the remittance of withholding tax; LLpr 2. The Accounts Payable Voucher, Disbursement Voucher and Debit Authority for the bank were prepared last August 8, 1997; 3. It should have been remitted last August 8, 1997 but unfortunately that date was a "welgang bayan" so the company declared a half day work only; 4. The person in charge of the BIR transactions regrettably did not report for work on August 11, 1997 due to sickness and the only personnel who knows the combination of your vault for your signed checks are yourself and the person in charge of the BIR transaction. Unfortunately, you were out of town and your staff could not contact you and on the other hand, the person in charge of the BIR transaction has no contact number on file. It is also represented that your remittance of withholding tax for the month of July which became due on August 11, 1997 was remitted the following day, August 12, 1997; that consequently, you were penalized in the amount of P62,702.68 and that it was never your intention to delay the payment or delay any future payments for that matter to the BIR. In reply, please be informed that under the foregoing circumstances, it can be clearly seen that your failure to pay your withholding tax liability on time is indeed not your fault and is beyond your control, hence, legally justified. Thus, your remittance at the first available opportunity produces the effect of "remittance on time", hence no interest nor surcharge nor any other penalties can be imposed on your seemed "failure" to remit the withholding taxes on time. prll Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue