BIR Ruling No. 126-62

November 15, 1962 BIR RULING NO. 126-62 The Director of Mines P. O. Box 1595, Manila Attention : The Chief , Petroleum Division S i r : In answer to the queries contained in your letter dated September 29, 1961, I have the honor to inform you as follows: cdi 1. Payments made in your Office by concessionaires for exploration taxes prescribed under the provisions of Republic Act No. 387 (Petroleum Act of 1949), as amended by Republic Act No. 3098, cannot be considered as payments to the Commissioner of Internal Revenue in determining the surcharge liability of the concessionaires for purposes of Article 93-A of the same law. This is so because the Director of Mines is not a duly authorized deputy of the undersigned for tax collection purposes. The payments must reach the Commissioner or his deputy on or before the due date fixed by law. 2. Delay in payment of the exploration taxes will render the some subject to a surcharge of 1% per month. Being a penalty, it will be imposed at the rate of 1% for every month of delay, or fraction thereof, in accordance with Art. 93-A of the Petroleum Act of 1949, as amended, which provides as follows: "Art. 93-A. Delay in the payment of tax or royalty . Where the amount of tax or royalty imposed by this Act or concession contract is not paid in the due date, there shall be connected as part of the said tax or royalty a surcharge of one per centum thereof per month from the due date until they are paid." 3. Exploration taxes due and payable by the concessionaires before June 17, 1961 (date of effectivity of Republic Act No. 3098) but paid after said date are not subject to the 1% surcharge, the some being imposable only on taxes becoming delinquent on or after the date of effectivity of the law. 4. Concessionaires who filed their applications for extension of their concession before June 17, 1961 but which applications were approved after said date shall be liable to the surcharge if the anniversary date falls on or after the date of effectivity of the law and not payment was made on that date. Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue