Request for Reconsideration of Proposed Assessment and the Cancellation of Surcharges, Interest and Penalties

April 11, 1995 BIR RULING NO. 070-95 204 (2) 000-00 070-95 Mater Carmeli School Carmelite Missionaries 288-290 D. Tuazon Avenue Quezon City Attention: Sr . Leonida G . Indelibla Treasurer Gentlemen : This refers to your letter dated July 22, 1994 stating that you are an educational institution; that you have filed your withholding tax return for April 1994 only on May 11, 1994 at around 10 A.M. instead of May 10, 1994 because May 9, 1994 was the barangay election day and the school's faculty and staff employed as election watchers were still tallying and counting the ballots as of May 10, 1994; and that in view of your delay in the remittance of your withholding tax payments, you are presently subjected to surcharges, interest and other penalties in the amounts of P4,832.64 and P788.78, respectively. You now request for a reconsideration of the proposed assessment and for the cancellation of the surcharges, interest and penalties. In reply, please be informed that under the foregoing circumstances, your failure to pay your withholding tax liability on time is legally justified, thus, having remitted your payment at the first available opportunity after the barangay election, your request is hereby granted. Accordingly, pursuant to Section 204(2) (a) of the Tax Code, as amended, the collection of surcharge in the amount of P4,832.64 is hereby waived. However, you are liable to pay the 20% interest per annum or the amount of P788.78 pursuant to Section 249 of the Tax Code, as amended. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue