Penalty for Late Payment of the Internal Revenue Tax on the Narcotics Imported by the Winthrop Stearns, Inc

July 17, 1958 BIR RULING NO. 375-58 1st Indorsement Returned to the Chief, Alcohol and Prohibited Drugs Division, Bureau of Internal Revenue, Manila, the within papers relative to his request for opinion as to whether or not the penalty for late payment of the internal revenue tax on the narcotics imported by the Winthrop Stearns, Inc. can be waived. Pursuant to Section 12 of Revenue Regulations No. V-38, implementing Section 2(j) or Republic Act No. 953, the internal revenue special tax of P.05 per 30 grams of narcotic drugs should be paid by the importer before removal from customs custody. Sections 2(m) of the said Act considers as unlawful the possession of narcotic drugs not in stamped packages. Withrop Stearns, Inc. should have been aware of the fact that the absence of appropriate stamps in the packages of narcotic drugs it imported is indication of non-payment of the tax; and its possession thereof constitutes a violation of Section 2(m) of Republic Act No. 953. Its responsible officers are, therefore, criminally liable under Section 92 of the aforesaid Regulations in relation to Section 11 of said Act. Accordingly, the compromise penalty suggested to be paid by said corporation is in order and should not be waived. cdll Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue