Relief from Civil Penalties for Failure to File Returns During the Period Business was Not in Operation Due to the Fire that Gutted Its Building

May 5, 1992 BIR RULING NO. 141-92 248-00 000-00 141-92 Jaime C. Blancaflor & Associates 37 Apollo IV Street Moonwalk, Las Pias Metro Manila Attention: Atty . Jaime C . Blancaflor Gentlemen : This refers to your letter dated March 23, 1992, in behalf of your client, Commercial Chemicals Corporation, 85 Jesus Street, Pandacan, Manila, in effect, requesting for the issuance of appropriate clearance and advise in order for your client to resume its business operations after having been completely interrupted by the burning down of its entire plant and office on April 28, 1988. Documentary evidences, such as the certifications of the Western Police District, dated May 8, 1989 and Barangay Chairman dated October 1, 1988, letters of its Owner-Manager Venancio T. Barcelona dated May 2, 1989 to the BIR Regional Office and to the Withholding Tax Division, BIR Central Office dated April 19, 1989 attests to the fact that your client's entire plant and offices located at the above-stated address were burned down at about 3:10 p.m. on April 25, 1988; that as a result of the fire its books of accounts, records and assets were totally damaged and lost; that it has temporarily stopped operations because of its financial inability then to re-start its business; that it never applied for dissolution, and that it is currently contemplating to resume its operations. In reply, please be informed that, since the interruption of your client's operation was for a cause beyond its control and the fact that it has taken the necessary steps to inform the BIR relative to the fire that gutted its plant and office, it is relieved from the civil penalties under Section 248 of the Tax Code arising from its inability to file its returns during the period that it is not in operation. This serves as an authority for your client to resume its operation under said name without prejudice to the subsequent determination of its income and business tax liabilities for its involuntary dissolution by reason of the fire, pursuant to Section 235 of the Tax Code. aisadc Very truly yours, EUFRACIO D. SANTOS Deputy Commissioner Officer-in-Charge