BIR Ruling [DA-298-99]

May 18, 1999 BIR RULING [DA-298-99] Sun Moon Star Philippines, Inc . 1510 East Tower, PSE Center Exchange Road, Pasig City Attention: Ms. Fe M. Canzon Finance Manager Gentlemen : This refers to your letter dated August 28, 1998 requesting for a reconsideration in connection with your request for exemption from payment of penalties and surcharge for the late remittance of withholding taxes. BIR Ruling DA-175-98 dated May 5, 1998 disclosed that your request for waiver of penalties and surcharges for the late remittance of withholding tax for the month of April 1997 was denied by this Office; that the reason thus stated for your failure to pay on time was due to problems in the enrolment with the bank and submission of taxpayer's record update (TRU); and that you are now requesting that you be allowed to pay only interest. In reply, please be informed that based on your representations, your failure to remit the subject withholding tax liabilities on time was mainly due to the problems in the enrolment with the bank and submission of the TRU. Considering that your alleged problems cannot legally support the grounds by which the Commissioner can abate or cancel your tax liability under Section 204 of the Tax Code of 1997, your request for abatement of the 25% penalties/surcharges imposed on the late remittance of withheld taxes as provided for under then Section 248 of the Tax Code, as amended (also Section 248 of the Tax Code of 1997), is hereby denied. CcAIDa It is with deep regret that this Office is constrained to enforce against you all the sanctions provided for under our withholding tax laws, rules and regulations. Thus, it is suggested that to prevent any repetition of similar mistake, the personnel in charge of this matter must have to know by heart his responsibilities and the consequential liabilities that may be enforced against SMS Philippines, Inc. for failure to remit on time the withholding taxes required to be paid and remitted. You are hereby advised to remit the corresponding interest and surcharges assessed from you, in case you have not remitted yet. (BIR Ruling No. DA-137-98 dated April 13, 1998) Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue