Assessment Notice Sent to the Bay Boulevard Subdivision, Inc.

April 2, 1959 BIR RULING NO. 178-59 4th Indorsement Respectfully returned to the Regional Director, District No. 3, Manila. It appears that the income tax assessment notice sent to the Bay Boulevard Subdivision, Inc. for the fiscal year ending November 30, 1956 shows that the first and second installments of its tax liability should have been paid on February 15, and May 15, 1957, respectively. Pursuant to section 51(b) and (c) of the Tax Code, however, the first and second installments are actually payable on April 15 and July 15, 1957. Hence, it returned the assessment notice to this Office for correction accompanied by a letter stating thus: "Reference to Income Tax Assessment Notice to Bay Boulevard Subdivision, Inc., 252 Escolta, Assessment No. 90-IC 253-56, we wish to inform you that the fiscal year of this Corporation ends November 30 and not September 30. The first installment, therefore, should be due on April 15, 1957, instead of February 15, 1957, as shown on Assessment No. 90-IC 253-56, issued February 2, 1957. . . ." This Office, however, failed to correct the mistake and the taxpayer, not being able to receive a corrected assessment notice, paid the tax on April 16, 1957, or one day late. Considering that the income tax is paid on the basis of an assessment notice and taking into account the good faith of the taxpayer in paying the tax immediately after it was not able to receive a corrected assessment notice until the last day for the payment of the tax, this Office is of the opinion that the taxpayer cannot be held liable to the 5% surcharge for late payment. (SGD.) JOSE ARAAS Commissioner of Internal Revenue