Tax Liability of Filipino Citizens Working at Transocean Air Lines Co., Wake Island

June 25, 1959 BIR RULING NO. 336-59 Taloa Fil-Worker's Union Transocean Air Lines Wake Island Gentlemen : In reply to your query dated March 10, 1959, addressed to the Secretary of Finance, which was referred to this Office for action, I have the honor to inform you as follows: 1. Filipino citizens working at Transocean Air Lines Co., Wake Island who has been receiving an income of at least P1,800.00 a year is required to file Philippine income tax return, pursuant to section 45 of the National Internal Revenue Code. cdtech 2. Filipino citizens working at the aforenamed company and residing at Wake Island can file their income tax returns thru their authorized representatives in the Philippines. 3. Pursuant to section 72 of the Tax Code, one who willfully neglects to file a return of his income shall be subject to a surcharge of fifty per centum (50%) of the tax or deficiency tax due from him. Where his neglect to file a return is not willful, he shall be subject to a surcharge of only twenty-five per centum (25%). Aside from the surcharge which may be imposed upon him, one who willfully neglects to file a return may also be criminally charged under section 73 of the Tax Code which reads as follows: "Sec. 73. Penalty for failure to file return or to pay tax . Any one liable to pay the tax, to make a return or to supply information required under this Code, who refuses or neglects to pay such tax, to make such return or to supply such information at the time or times herein specified in each year, shall be punished by a fine of not more than two thousand pesos or by imprisonment for not more than six months, or both. "Any individual or any officer of any corporation, or general copartnership (compania collectiva), required by law to make, render, sign, or verify any return or to supply any information, who makes any false or fraudulent return or statement with intent to defeat or evade the assessment required by this Code to be made, shall be punished by a fine of not exceeding four thousand pesos or by imprisonment for not exceeding one year, or both." If the facts of the case so warrant, he may be allowed to settle extrajudicially his penal liability by the payment of a compromise penalty in an amount depending upon his gross income. LLphil Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue of the Philippines