BIR Ruling [DA-266-99]

May 5, 1999 BIR RULING [DA-266-99] Dr. Heinz R. Varwig 7/F JAKA Building 6780 Ayala Avenue Makati City Attention: Ms. Jo Leah A. Flores Attorney-in-fact Gentlemen : This refers to your letter dated April 15, 1998 requesting, on behalf of Dr. Heinz R. Varwig (Dr. Varwig), for the waiver of surcharge relative to the late remittance of withholding taxes for the months of May-December 1997. It is represented that Dr. Varwig's inability to make the remittance within the time prescribed by law was not due to a willful intent to evade payment; that he having paid on time all his previous withholding and income taxes; that this first and only delay was due to a large extent, owing to his hospitalization in Germany for heart ailment for two (2) months from April to May 1997, followed by four (4) months of recuperation, and a second round of hospitalization in October up to early November, for complications; that after Dr. Varwig's discharge, he was able to return to the Philippines in late November; and that because of his heart condition and failing health, Dr. Varwig decided to finally retire and end his medical practice altogether. In reply, please be informed that based on your representations, your failure to remit the subject withholding tax on time is mainly due to your heart condition and failing health. Considering, however, that you are a first-time offender, we are granting your request for waiver of surcharge due to late remittance of withheld taxes but not the payment of interest imposed under Section 249 of the Tax Code of 1997. It is suggested though that to prevent any repetition of the same mistake, you have to know by heart your responsibilities and liabilities as a withholding agent as well as those who will take place in case you are absent. We hope, however, that this will not happen again, otherwise, we will be constrained to enforce against you all the sanctions provided for under our withholding tax laws, rules and regulations. aTcIAS You are hereby advised however, to remit the subject withholding taxes together with the interest thereon within fifteen (15) days from receipt hereof. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner Internal Revenue