BIR Ruling [DA-299-99]

May 18, 1999 BIR RULING [DA-299-99] Lim, Duran and Associates Unit 704 Goldhill Tower Condominium No. 5 Annapolis Street, Greenhills San Juan, Metro Manila Attention: Mr. Francis D. Bianan Gentlemen : This refers to your letter dated October 10, 1997 stating that your client, the Manila Mission of the Church of Jesus Christ of Latter-Day Saints, Inc. , is a religious institution; that you requested the Revenue District Officer of the Revenue District Officer of Marikina to allow you to pay the capital gains tax and documentary stamp tax in the amount of P1,080,000 and 324,000, respectively, in the form of manager's checks; that it is the policy of your client's church to disallow cash payments in the release of funds; that the examiners in RDO-Marikina advised you to present a notarized copy of the Deed of Sale, together with the accomplished Form No. 2000 (for DST) and Form No. 1701E/A (for CGT); that the Deed of Sale involving the sale of parcels of land located in Calaanan and Balintawak, Kaloocan City was presented to RDO-Marikina on September 25, 1997; that you were directed to pay the checks to any BIR accredited bank; that the checks originated from the Bank of the Philippine Islands-Blueridge, Quezon City; that upon presentment of the above documents to the BPI-Concepcion, you were informed that BPI does not accept checks for payments of BIR tax per memo coming from its Head Office; that on September 26, 1997, the recourse of the Finance Officer of your client was to cancel the checks and instead directed you to present an Authority of Debit; that on September 29, 1997, upon informing RDO-Marikina of the above circumstances, you were assessed surcharges in the amount of P81,000; that BPI validated the forms on October 9, 1997; and that neither you nor your client has any intention of delaying the payment of CGT and DST. In view of the foregoing, you now request for waiver of penalties for late payment of capital gains tax and documentary stamp tax on the sale of that two (2) parcels of land abovementioned. In reply, please be informed that under Section 248(A)(1) and (3) and 249, both of the Tax Code of 1997, 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 the 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 Phils. 22) However, in view of exceptional circumstance which justifies your non-remittance of the subject national taxes on time, your request for waiver of surcharges is hereby granted and on the presumption that you have already paid the capital gains and documentary stamp taxes on the said sale transaction. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. aSTECI Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue