BIR Ruling No. 269-61

July 10, 1961 BIR RULING NO. 269-61 Messrs. Ozaeta, Gibbs & Ozaeta Magsaysay Building 520 San Luis Street Manila Gentlemen : In answer to your letter dated June 9, 1960, I have the honor to inform you as follows: cdta 1. The new provisions of Section 51 of the Tax Code, as amended by Republic Act No. 2343, are applicable to income taxes for the calendar year 1959 and thereafter and for fiscal periods ending after June 30, 1959. 2. The interest on deficiency income tax at the rate of % per month (or 6% per annum) as prescribed in Section 51(d) of the Tax Code, as amended by Republic Act No. 2343, shall not be imposed nor collected in respect to deficiency income taxes for 1958 and prior years which were assessed before June 20, 1959, even if they were still unpaid and outstanding on or after June 20, 1959. Interest on deficiency income tax at the above rate shall, however, be imposed and collected in respect to deficiency income taxes for 1958 and prior years which were assessed on or after June 20, 1959, but said interest shall be imposed only from June 20, 1959 until the date the deficiency tax is assessed. 3. The interest for late payment of deficiency tax as prescribed in Section 51(e)(2) of the Tax Code, as amended by Republic Act No. 2343, shall not be applied in respect to deficiency income taxes for 1958 and prior years which were assessed before June 20, 1959, even if they were still unpaid or outstanding on or after June 20, 1959. cdt 4. The new method of computing the interest for late payment of the deficiency income tax as prescribed in Section 51(e)(2) of the Tax Code, as amended by Republic Act No. 2343, which is based on the deficiency tax proper, the interest on deficiency as prescribed in Section 51(d), as amended by Republic Act No. 2343, and the 50% and 25% surcharge imposed in Section 72 of the Tax Code, shall be applied in respect to any deficiency income tax assessed on or after June 20, 1959. 5. As expressly provided for in subsection (d) of Section 51 and subsection (e), paragraphs (1) and (2), of the same section, the maximum amount that may be collected as interest on the deficiency or interest for late payment shall not be more than the amount corresponding to three years, that is, the total interest on the deficiency is limited to 18% and the total interest for late payment is limited to 36%. cdti Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue