Denial of Request for Waiver of Surcharge and Interest on Deficiency Taxes

June 22, 1999 BIR RULING NO. 082-99 Secs. 248 & 249 -000-00-082-99 Philips Export Industries, Inc. Unit 213 Roxas Seafront Gardens Roxas Blvd., Pasay City Attention: Ms . Flora B . Cordero Gentlemen : This refers to your letter dated April 27, 1999 requesting for the waiver of the surcharge and interest imposed on you due to late payment of your 1998 income tax. It appears that you filed your tentative 1998 income tax return last April 15, 1999 and paid the amount P15,476.15 instead of P1,537,615.31 as a result of typographical error in that rush hour of bank closing time to cope up with the deadline; that your auditors are now finalizing your financial statements and will be filing your final income tax return very soon; that you filed your tentative returns on the due date in good faith but after the tax filing day found out that there was an error in the amount you paid; and that you are presently experiencing financial difficulties. In reply, please be informed that under Sections 248(A)(1) and (3) and 249, both of the Tax Code of 1997, the imposition of the surcharge and interest on delinquency is mandatory. Strong reasons of policy support a strict observance of the rule regarding the payment of tax. The laws imposing penalties for delinquencies are clearly intended to hasten tax payments or punish evasions or neglect of duty in respect thereof. If delays in tax payments are to be condoned for light reasons, the law imposing penalties for delinquencies would be rendered nugatory and the maintenance of the government and its multifarious activities would be as precarious as taxpayers are willing or unwilling to pay their obligations to the state on time (Jamora vs. Meer, 74 Phils. 22). It would appear from your representations that you filed your 1998 income tax return and paid the taxes thereon merely for the sake of beating the deadline. This shows lack of good faith on your part and a neglect of your duty in respect of payment of your taxes on time. In view thereof, we regret to inform you that we cannot grant your request for waiver of surcharges and interest on your deficiency taxes. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue