Request for Opinion on Whether or Not Surcharges and Penalties Can Already be Imposed on a Tax Not yet Due.

August 9, 1999 DILG OPINION NO. 116-99 Mr. Elpidio Co Sy Room 304-306 Borja Bldg. Katubusan St., Recto Avenue Sta. Cruz, Manila RE : Request for Opinion on Whether or Not Surcharges and Penalties Can Already be Imposed on a Tax Not yet Due. Dear Mr. Sy: In reply to your above-captioned query, please be informed that the imposition of surcharges and penalties on local taxes, fees and charges not yet due does not find any legal support under the Local Government Code. In fact, Section 168 of RA 7160 provides that the sanggunian concerned can impose a surcharge not exceeding twenty five percent (25%) of the taxes, fees and charges only if the same were not paid on time. In that regard, while the accrual of local taxes is found under Section 166, the time and terms of payment thereof are governed by other provisions of the Local Government Code. As to the terms of payment of local taxes, fees and charges, Section 165 thereof provides that local taxes, fees and charges can be collected in quarterly installments. Corollarily, if the arrangement of payment is on a quarterly basis, Section 167 of the same Code provides that it has to be paid within the first twenty (20) days of every quarter as the installment falls due. Hope to have guided you on the matter. Very truly yours, (SGD.) JESUS I. INGENIERO Assistant Secretary Department of Interior and Local Government cc: The City Treasurer City Hall Las Pias City