Request for Waiver of Penalties and Surcharges Arising from Delayed Payment of DST on Deeds of Conveyance

January 9, 1992 BIR RULING NO. 009-92 248; 249 000-00 009-92 Hon. Alicia Ll. Reyes Chairman and Chief Executive Officer Philippine Amusement & Gaming Corporation PAGCOR House 1330 Roxas Boulevard M a n i l a M a d a m : This refers to your letter dated October 1, 1991 stating that the Philippine Amusement and Gaming Corporation's housing project for its employees is a part of a subdivision owned and developed by the Government Service Insurance System (GSIS) located at Molino, Bacoor, Cavite; that under the arrangement entered into between PAGCOR and GSIS, the former advanced for its employees the cost of the 256 house-and-lot packages to GSIS and the latter executed Deeds of Conveyance in favor of the individual awardee-employees; that the arrangement called for the registration of the deeds at one time to expedite the transaction; that although the GSIS prepared the deeds at one time in batches; the execution thereof by the PAGCOR awardee-employees was not done at one time because they are assigned in various casinos of PAGCOR throughout the country and they have to be called purposely to sign the deeds individually; that the process took a long time to accomplish and it was only lately that all the deeds were taken to the Register of Deeds of Trece Martirez City for registration purposes; that your representative was advised that there was a delay in the purchase and affixture of the documentary stamps on the deeds thus subjecting the same to a 25% surcharge; and that the aggregate amount of documentary stamps due on the deeds of conveyance covering the 256 housing units is P689,548.80 while the corresponding surcharges thereon was calculated at P170,000.00. Based on the foregoing, you now request this Office to waive the penalties and surcharges arising from your delayed payment of the documentary stamp taxes on the Deeds of Conveyance in question. In reply, please be informed that in view of the above justifiable reasons, this Office has decided to forego the imposition of the corresponding surcharges for your failure to affix the documentary stamps on the Deeds of Conveyance. Moreover, you are not subject to the 20% interest prescribed in Section 249 of the Tax Code because there is no notice or demand as yet issued by this Office for payment of the documentary stamp tax. Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue