Compromise Penalty for Failure to Attach the Statement of Networth and Operations

March 14, 1960 BIR RULING NO. 105-60 Mrs. Liwanag B. Barican Bureau of Coast & Geodetic Survey Binondo, Manila M a d a m : This is in connection with the compromise penalty in the sum of P10.00 which is sought to be collected from you for your failure to attach to your 1958 income tax return the statement of networth and operations. You have request this Office to "exempt" you from payment of said penalty. Taxpayers whose gross quarterly sales, receipts, or earnings do not exceed P5,000.00 should file the statement of networth and operations with their income tax returns beginning with their returns for 1952 . (Rev. Regs. No. V-13 & V-20; BIR Ruling No. 252, S. 1959). Since you declared in your income tax return for 1958 an annual rental income of P1,309.10, you are, therefore, bound to file the said statement. Hence, your request is hereby denied. It is therefore requested that you pay the above-mentioned penalty within ten (10) days from your receipt of this letter and inform this Office of such payment also within the same period. Very truly yours, MISAEL P. VERA Deputy Commissioner of Internal Revenue