BIR Ruling [DA-279-97]

August 20, 1997 BIR RULING [DA-279-97] Honorable Cielito F. Habito Secretary of Socio Economic Planning National Economic and Development Authority NEDA sa Pasig, Amber Avenue Pasig City Sir: This refers to your letter dated July 28, 1997 requesting for a waiver of the penalty, interest and surcharges in connection with the late payment of the second installment of your income taxes for 1996. You have stated in your letter that you were out of town during the week of the July 15 deadline, attending to more pressing official matters, among others, the out-of-town Cabinet meeting held in Tawi-Tawi; and that the physical impossibility and the hectic schedule which you had at that time had prevented you from remitting your income tax payment on time. EcDSHT In reply thereto, please be informed that under Sections 248 (a) (1) and (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 of 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 maintenance of the government and its multifarious activities would be as precarious as taxpayers are willing or unwilling to pay their obligations to the State on time (Jamora vs. Meer, 74 Phil. 22). However, in view of the aforementioned exceptional reason which justifies your late payment of the second installment of your income taxes for 1996, your request for the waiver of the payment of surcharge and compromise penalty is hereby granted but not the payment of interest imposed under Section 249 of the Tax Code, as amended. Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue