Withholding Tax Case of the Philippine Navy

March 16, 1959 BIR RULING NO. 147-59 The Regional Director BIR Regional District No. 4 Quezon City S i r : This is in connection with the withholding tax case of the Philippine Navy involving the sum of P27.40 as delinquency penalty incident to late payment of the withholding tax for the year 1958, which was forwarded to this Office for a ruling on the question of whether or not the penalties incident to late payment may be waived. cdll The Secretary of Justice in his Opinion No. 215, series of 1958, contained in his 16th Indorsement dated September 15, 1958 holds that neither the Government, its instrumentality or agency, nor the public officer of employee designated to undertake the withholding, paying and returning of the tax due on the wages of public officers and employees, can be held liable for the payment of the surcharge and interest provided for in Article 7 of Supplement A to Title II of the Tax Code. The public officer or employee may only be charged administratively with negligence in the performance of duty under civil service rules and regulations. In view thereof, the surcharge and interest for late payment of the withholding tax for the year 1958 by the Philippine Navy may be waived. cdt Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue