Payment of Franchise Tax Plus Penalties
BIR Ruling No. 033-81 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Feb 5, 1981
Full text
February 5, 1981 BIR RULING NO. 033-81 267-00 000-00 033-81 Tandag Electric & Telephone Company, Inc. Tandag, Surigao del Sur Attention: Mr . Flavio G . Concha Manager Gentlemen : This refers to your letter dated August 15, 1978 requesting exemption from the payment of the franchise tax plus penalties covering the period from January 1, 1973 to March 31, 1977 on the ground that you are operating at a loss. In reply, I have the honor to inform you that your request cannot be granted for lack of legal basis. It should be noted that franchise tax is based on gross receipts derived by a franchise grantee, regardless of the fact that losses are incurred. cdtech Accordingly, we regret to inform you that this Office has no authority to grant your request. Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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