BIR Ruling No. 073-61

February 2, 1961 BIR RULING NO. 073-61 Reference is made to your letter . . . , indicating your willingness to pay the amount of P xxx demanded in our letter dated . . . as specific tax due on the 48 bottles of assorted brands of liquors found in your possession on September 19, 1959. However, you request that after payment of the tax said liquors be returned to you. LexLib In answer thereto, I have the honor to inform you that under the law, in addition to paying the tax in question, you are liable to a fine of not less than three times the amount of the specific tax due but not less than P200.00 nor more than P5,000.00 or to an imprisonment of from 4 months and 1 day to 4 years and 2 months, or both such fine and imprisonment. (Sec. 174, Tax Code) Moreover, the liquors should be forfeited by either seizing and selling or destroying them. Destruction is resorted to when the sale of the forfeited articles for consumption or use would be injurious to the public health or prejudicial to the enforcement of the law. (Secs. 172, 312 & 313, Ibid.) However, considering the harshness of the law, the Commissioner of Internal Revenue, in the exercise of his power to compromise cases, has decided that in cases such as yours, it is enough that the articles be forfeited and the owner or possessor thereof required to pay a compromise penalty in an amount equivalent to the tax due thereon but not less than P100.00 nor more than P5,000.00 or, if he is not agreeable to such compromise penalty, prosecuted in court under Section 174 of the Tax Code. In view thereof, it is regretted that your request has to be, as it is hereby, denied. LLjur This supersedes our demand letter of January 28, 1960. However, it is suggested that the amount of P xxx be paid in extrajudicial settlement of your penal liability under said Section 174, within five (5) days from receipt hereof, in order that we may close this case.