BIR Ruling [DA-695-A-99]

December 16, 1999 BIR RULING [DA-695-A-99] 248, 249 068-98-695A-99 Barko International, Inc . 3rd Floor, Barko Building 1014 P. Ocampo Sr. corner Arellano Sts. Malate, Manila Attention: Mr . Armando R . Martinez , CPA Gentlemen : This refers to your letter dated October 19, 1999 requesting for a ruling on the non-imposition of surcharge, interest and compromise penalty incident to late payment of taxes withheld in regard to the following: "1. . . . Barko International, Inc. (TIN-033-000-199-645) was classified as Large Taxpayer by Commissioner of Internal Revenue on July 01, 1993 in accordance with Republic Act 7646 as implemented by Revenue Regulations No. 12-93 and further amended by Revenue Regulations No. 3-94 and as such it can remit taxes withheld within 25 days after the end of each month . . . "2. The above pertinent revenue regulations affecting Large Taxpayers was further amended in view of the Tax Reform Act of 1997 by Revenue Regulations No. 1-98 dated April 08, 1998. While the criteria remained the same as those set in the earlier regulations to be considered as a Large Taxpayer, we did not receive any notice from the Commissioner to date of our continued status as a Large Taxpayer and this thing came out only on September 27, 1999 when we checked with the Large Taxpayers Division only to find our Company was classified as such. "3. . . . on the assumption that it is still classified as a Large Taxpayer religiously made the following remittances. Calendar Year 1998 Month Tax Withheld Date Remitted January P115,352.59 Feb. 24, 1998 February 122,645.33 Mar. 24, 1998 March 177,933.99 Apr. 27, 1998 April 147,226.16 May 22, 1998 May 534,508.32 Jun. 23, 1998 June 152,625.35 Jul. 23, 1998 July 147,270.54 Aug. 25, 1998 August 154,073.72 Sept. 16, 1998 September 155,684.85 Oct. 19, 1998 October 161,301.33 Nov. 18, 1998 November 155,764.72 Dec. 15, 1998 December 696,441.65 Jan. 25, 1999 Calendar Year 1999 Month Tax Withheld Date Remitted January P187,019.04 Feb. 22, 1998 February 191,675.63 Mar. 23, 1998 March 174,890.40 Apr. 20, 1998 April 178,643.98 May 14, 1998 May 1,477,565.80 Jun. 23, 1998 June 176,924.40 Jul. 26, 1998 July 205,042.28 Aug. 23, 1998 August 175,077.33 Sept. 20, 1998 September 167,501.60 Oct. 11, 1998 In reply, please be informed that after a careful perusal of the facts of this case and the law pertinent thereto, it is believed that good faith and honest mistake in the instant case exist as shown by the fact that you were informed by the Large Taxpayer Division only on September 27, 1999 that your company is not classified as a Large Taxpayer. As a matter of fact,, acting on your belief that you are classified as such, you religiously remitted your taxes until September 1999. Hence, finding your reasons to be meritorious, this Office has decided to forego the imposition of the 25% surcharge and penalties and 20% interest under Sections 248 and 249 of the Tax Code of 1997, respectively. This constitute our final stand on the matter. cdll Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue