Can the DOLE Regional Office 8 Employees be Given Tax Credits of their Withholding Taxes Paid thru Salary Deductions from January 1992 to August 1992 Which Were Not Remitted to BIR Regional Office Through Fault of Their Own but by the Withholding/Remitting Agent and All Her Cohorts?

April 5, 1994 BIR RULING NO. 088-94 247 251 000-00 088-94 Director Jalilo O. de la Torre Department of Labor and Employment Region 8, Tacloban City S i r : This refers to your letter dated February 22, 1993 stating that the withholding taxes on the compensation income of your employees covering the period from January to August 1992 were not remitted to the BIR as the same were part of the financial anomalies committed by people who were recently dismissed by your office. In connection therewith, you are requesting opinion on the following: "1. Can the DOLE Regional Office 8 employees be given tax credits of their withholding taxes paid thru salary deductions from January 1992 to August 1992 which were not however remitted to BIR Regional Office through fault of their own but by the withholding/remitting agent and all her cohorts; "2. If not tax credits, but only deferment of the tax payments which may be granted also by the Commissioner pending recovery of payments from those who malversed the funds will the DOLE RO8 employees be exempted from paying interests, penalties, and tax surcharges for failure to pay on time and for the period during which court litigation for the recovery of payments is yet unresolved/going on; "3. Who will pay these unremitted/unpaid taxes if the BIR wins in the suit for recovery of payments but which after all the defendants have no more assets to answer for the money claims or are judicially declared bankrupt." In reply thereto, please be informed that any person required to collect, account for, and remit any tax imposed by the National Internal Revenue Code who willfully fails to collect such tax, or account for and remit such tax or willfully assists in any manner to evade any such tax or the payment thereof, shall, in addition to other penalties provided for in Chapter I, Title X of the Tax Code, be liable to a penalty equal to the total amount of the tax not collected, or not accounted for and remitted. (Section 251, Tax Code, as amended) The DOLE Regional Office 8 employees cannot be given tax credit of their withholding taxes paid thru salary deductions from January 1992 to August 1992 which were not remitted to the BIR Regional Office although not through their fault. The employee responsible for the withholding and remittance of the tax shall be personally liable for the payment of the tax and the penalties thereof. (Sec. 247, Tax Code) aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue