BIR Ruling [DA-711-99]

December 28, 1999 BIR RULING [DA-711-99] Smith Group Gexis, Inc . 15th Floor Strata 200 Building Emerald Avenue, Ortigas Center Pasig City Attention: Ms . Flordeliza B . Arcilla Treasurer Gentlemen : This refers to your letter dated January 28, 1998 requesting for the waiver of surcharge, interest and penalties over the unremitted balance of the taxes withheld by your corporation as of December 31, 1997. cdll It appears that your total remittable amount of taxes withheld by your corporation is P601,850.36, but you were able to remit P413,330.69 only on the deadline date because of difficulties in the collection of your receivables; and that you have some check collections which were supposed to cover up for the balance of P188,519.68 but your bank refused to issue an MC for the uncleared amount, as per instruction from their head office to suspend bills purchased transactions due to the present economic crisis. In reply, please be informed that under Section 248(A)(1) 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 of 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 Phil. 32) Accordingly, your request for the waiver of the surcharge, interest and penalties for the unremitted balance of the taxes withheld by your corporation is hereby denied for lack of legal basis. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue