Tax Liability on Second Installment on Income Tax Aside from the Delinquent Account

July 12, 1989 BIR RULING NO. 142-89 21 000-00 142-89 S i r : This refers to your letter dated April 26, 1989 requesting opinion as to whether you can settle the second installment of your income tax liability for the year 1987 by paying the full basic tax excluding the surcharge and all other increment incident to delinquency under Revenue Memorandum Order No. 1-88 as amended considering that you were abroad when the payment of your second installment became due. In reply thereto, I have the honor to inform you that your request is hereby denied for lack of legal basis. Paragraph 1 of RMO No. 1-88 as amended by RMO Nos. 8-89 and 16-89 provides that except as provided for in the next succeeding paragraph, delinquent accounts for the taxable years 1985 and prior years on assessment issued on or before March 9, 1989 are covered by the Order. Paragraph 2 of the said Order provides that the following delinquent accounts are not eligible for compromise settlement: "2.1 Capital gains tax; "2.2 Estate of gift tax; "2.3 Unremitted withholding taxes; "2.4 Documentary stamp tax; "2.5 The criminal aspect of tax cases involving fraud already filed in court; "2.6 Tax due per return; "2.7 Second installment on income tax; "2.8 Delinquent accounts with duly approved schedule of payments; "2.9 Unpaid compromise amount or balance thereof under Executive Order Nos. 41, 44 or other compromise agreements; and "2.10 Delinquent accounts arising out of dishonored checks." Such being the case, and since your tax liability involved a second installment on income tax aside from the fact that it is a delinquent account for the year 1987, the same is not covered by RMO No. 1-88 as amended providing for an administrative compromise settlement of delinquent accounts. Very truly yours, (SGD.) JOSE U. ONG Commissioner