BIR Ruling [DA-207-97]

May 16, 1997 BIR RULING [DA-207-97] Punongbayan & Araullo 6th Floor, Vernida IV Bldg. Alfaro Street, Salcedo Village 1200 Makati City Attention: Atty . Vic Mamalateo Tax Partner Gentlemen : This refers to your letter dated September 18, 1996 requesting in behalf of your client, Cargill Asia Pacific Limited (Cargill for brevity), for a waiver of the 25% surcharge and 20% interest on the additional income taxes which Messrs. Romeo Versula and Edwin Cortez will pay. cdta It is represented that Messrs. Versula and Cortez are non-resident Filipinos in Singapore who are working for Cargill Asia Pacific Limited; that when the said employees went to the Philippine Embassy in Singapore to pay their 1994 income tax they were advised by an officer in said embassy that they need to report only their salary and bonus; that on April 20, 1995, you were requested by Cargill to check if Messrs. Versula and Cortez went to the Philippine Embassy in Singapore on May 17, 1995 to pay their deficiency income tax by the Finance Officer of the embassy refused to accept the payment on the ground that the two had already paid their 1994 income tax; and that on May 30, 1995 your requested the Office of the Director Antonio Ortega of Makati for a waiver of surcharge and interest on the additional income taxes of Messrs. Versula and Cortez but he advised you to direct the request to his Office. In reply please be informed that in view of the above justifiable reason, this Office hereby grants your request for the waiver of the 25% surcharge imposed under Section 248 of the Tax Code, as amended. Good faith however, has been held not to be a defense for non-payment of interest. Republic vs. Lian Tiam Teng Sons & Co., L-21731, March 31, 1996; Republic vs. Philippine Bank of Commerce, L-20951, July 31, 1971). Therefore, Messrs. Romeo Versula and Edwin Cortez are subject to the payment of the 20% interest on the additional income taxes which they will pay upon filing their amended income tax returns for the year 1994, pursuant to Section 249 of the Tax Code, as amended. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue