BIR Ruling [UN-279-95]

July 31, 1995 BIR RULING [UN-279-95] Hon. Ben S. Malayang III Undersecretary for Field Operations and Programs Department of Environment And Natural Resources Visayas Avenue, Diliman Quezon City S i r : This refers to your letter May 19, 1995 stating that BIR Ruling No. 50(b)-000-00-080-95 which is in response to your request for a temporary deferment of tax obligations relative to the implementation of the ENR-SECAL Program specifies that: "Since your (DENR) problem at the moment is the non-availability of programmed funds in 1995 and prior years to cover the tax requirements relative to your implementation of the ENR-SECAL Program although you will have to work out a system to include provision for taxes in your 1996 budget proposal, your request for the temporary deferment of the payment of your tax liabilities is hereby granted. However, when your tax liabilities are finally computed, the same shall be subject to the payment of interests and surcharges pursuant to Section B(1) and (2) of Revenue Regulations No. 6-85 as amended implementing Section 50(b) of the Tax Code, as amended": that in the discussions you had with this Office, you requested for (1) a waiver of surcharges and(2) authorizations to utilize GOP funds to pay interest cost in view of the fact that you asked this Office for an opinion on the issue of the tax liability as early as March 1993 but the reply of this Office was received only in August 1994; hence, you are of the opinion that you should not be penalized for your sincere efforts to clarify the situation. cdtech Based on the foregoing representations, you are now requesting for a waiver of surcharges and authorizations to utilize GOP funds to pay interest cost on your creditable withholding tax liabilities as a consequence of your implementation of the ENR-SECAL Program. In reply, please be informed that in view of the above-stated justifiable reasons, your request for a waiver of surcharges on your creditable expanded withholding tax liabilities as a consequence of your implementation of the ENR-SECAL Program, is hereby granted. However, your request for an authorization to utilize GOP funds to pay interest on your said creditable expanded withholding tax liabilities, is a matter which falls within the competence of the Department of Budget and Management to decide. cdll Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue