Withholding Tax Case of Alonzo Lumber Company

January 5, 1959 BIR RULING NO. 011-59 2nd Indorsement Respectfully returned to the Chief, Income Tax Division, thru the Revenue Operations Executive (Assessment), Manila, the herein withholding tax case of ALONZO LUMBER COMPANY) Leschay Co., Inc) of 619 T. Alonso, Manila, for the years 1954 and 1955, with the information that the penalty prescribed under Article 8, Supplement A, Title II of the Tax Code, cannot be imposed upon employers who withheld form their employees less than the correct amount of tax prescribed under the Withholding Tax Law. However, there should be added to the deficiency tax 5% surcharge and 1% monthly interest for late payment pursuant to second paragraph of Article 7 of Supplement A, Title II of the Tax Code, plus a compromise penalty in extrajudicial settlement as prescribed by General Circular No V-239 dated March 12, 1957. It has been noted, in this connection, that the taxpayer has agreed (See "Agreement Form" dated June 11, 1956) to pay the deficiency taxes for the years 1954 and 1955 in the total amount of P613.48. It is, therefore, requested that immediate steps be taken to collect the above tax deficiencies. LLjur (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue