BIR Ruling [DA-282-04]

May 24, 2004 BIR RULING [DA-282-04] Sec. 53; 099-87 Juan M. Keyser Corporation 1625 Oroquieta Street Sta. Cruz, Manila Attention: Ma. Luisa K. Posadas President Gentlemen : This has reference to your letter dated April 12, 2004 which was forwarded to this Office by Teodorica R. Arcega, Regional Director of Revenue Region No. 6, Manila, requesting for extension of three (3) months within which to file your corporate income tax return for taxable year 2003. Accordingly, some responsible officers of the corporation are withholding some information needed for the preparation of the audited financial statement and it is impossible on your part to file the said income tax return on April 15, 2004. In reply, please be informed that your request for an extension of three (3) months which would be until July 15, 2004 is hereby granted pursuant to Section 53 of the Tax Code and Section 188 of Revenue Regulations No. 2 ( BIR Ruling No. 099-87 dated April 7, 1987 ). However, it should be understood that the interest of 20% per annum imposed under the Tax Code should be added to the total tax due computed from April 15, 2004 until the actual payment is made. The imposition of interest is but a compensation for the delay in paying the tax, and the concomitant use by the taxpayer of funds that rightfully should be in the government's hand. The fact that the interest to be charged is made proportionate to the period of delay constitutes the best evidence that such interest is not penal but compensatory. It should be understood, however, that if you fail to comply or file the 2004 income tax return and pay the corresponding tax plus interest due thereon within the extended period, this Office would be constrained to impose interest, surcharge or penalty for late payment, which is considered, as a rule, mandatory. IHaSED Very truly yours, (SGD.) MILAGROS V. REGALADO Assistant Commissioner Legal Service