BIR Ruling [DA-227-97]

June 23, 1997 BIR RULING [DA-227-97] African Mission Fathers Good Shepherd Parish Sanggumay Manuela, Las Pias Metro Manila Attention: Fr . John McCormack, SMA Superior Gentlemen : This refers to your undated letter requesting for the waiver of the payment of surcharge/penalty relative to the late filing of Income Tax Returns (ITR) for 1996 by the members of the Society of African Mission Fathers, a Missionary Society working here in the Philippines to which you belong. cdtech It is represented that the delay was due to your honest belief that since your Society is a religious organization not subject to income tax, it and the working missionaries thereof need not file income tax returns; that the Bureau of Immigration, however, required a proof that the working missionaries filed Income Tax Returns prior to processing of their visa applications; and that because of the apparent delay in the filing of the ITR, you were informed that a corresponding penalty in the amount of Ten Thousand Pesos (P10,000) shall be imposed for such violation, hence, this request. In reply, please be informed that under Sections 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 or 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 the obligations to the state on time. (Jamora vs. Meer, 74 Phil. 22) Considering the laudable purpose which your Missionary Society was founded on and the continued zeal and endeavor of your missionaries to pursue your Society's objectives and your mission statement, your late filing of ITR for 1996 and that of your members, could very well be a result of an honest, pure inadvertence without any intention of disregarding your duty under the law. This we find as a valid, justifiable excuse. Therefore, since the inability of your Missionary Society and that of your members to file timely income tax returns for 1996 was due to a valid, justifiable reason, with you acting under an honest belief that you are not subject to income tax nor are you required to file your Income Tax Returns, your request for waiver of the payment of compromise penalty for late filing of ITR for 1996 is hereby granted. (DA-088-97 dated March 5, 1997) casia Very truly yours, ESTELITA C. AGUIRRE Acting Commissioner