BIR Ruling No. 086-82

March 23, 1982 BIR RULING NO. 086-82 54-b 34-81 086-82 Philippine National Lines 4th Floor, PPL Building 1000 U.N. Avenue cor. San Marcelino Metro Manila Attention: Mr . Casiano B . Mendoza Treasurer & Vice President-Finance Gentlemen : This refers to your letter dated July 9, 1981, requesting that the interest and penalties by reason of late remittance of withholding taxes for the years 1978 and 1979 be waived, because Philippine National Lines is a new government-owned corporation created under Presidential Decree No. 900. In reply, please be informed that for late remittance of the taxes withheld from salaries of your officers and employees for the years 1978 and 1979, you are not liable for the payment of the surcharge and the interest required under Section 96 of the Tax Code. (Opinion No. 215, Sec. of Justice, as quoted in General Circular No. V-236 dated April 6, 1959). However, under Section 96 of the Tax Code, as amended by Section 16 of P.D. No. 1773 which took effect on January 16, 1981, such public officer or employee of the government or any of its agencies, political subdivisions or instrumentalities, or government-owned or controlled corporation, such as your corporation, responsible for the withholding and remittance of the tax is now personally liable for the surcharge and interest imposed therein. Said public officer or employee who willfully neglects to perform his said duties enjoined by law, shall, upon conviction be also subject to a fine of not less than P5,000.00 nor more than P50,000.00 and imprisonment of not less than one (1) year nor more than ten (10) years. (Sec. 330(b), Tax Code, as amended by Presidential Decree No. 1705 effective August 1, 1980). Very truly yours, RUBEN B. ANCHETA Acting Commissioner