Amendments to Paragraph I of General Circular No. V-239, Re-compromises for Violations of the Income Tax Law

March 31, 1964 REVENUE MEMORANDUM CIRCULAR NO. 15-64 SUBJECT : Amendments to Paragraph I of General Circular No. V-239, Re-compromises for Violations of the Income Tax Law TO : All Internal Revenue Officers and Others Concerned Paragraph I of General Circular No. V-239 is hereby amended to read as follows: 1. VIOLATIONS OF THE INCOME TAX LAW 1.Failure to file required income tax return COMPROMISES (a) Individual For the gross income of P10,000 or less P10.00 Over P10,000 but not more than P50,000 20.00 Over P50,000 but not more than P100,00 30.00 Over P100,000 50.00 (b) Corporation For gross income of P10,000 or less P20.00 Over P10,000 but not more than P50,000 40.00 Over P50,000 but not more than P100,000 60.00 Over P100,000 100.00 These compromises are for those cases where the returns have been voluntarily filed. Where the returns have been required to be filed, the compromise should be doubled. Where the taxpayer refuses to file or sign a return, the compromise should be trebled. In all cases where the tax shown on a belated return, whether filed voluntarily or required to be filed, is P20,000.00 or more, or, even if the tax shown on any such return is less than P20,000, if upon investigation the tax due is found to be P20,000.00 or more, the compromise settlement of the violation by reason of late filing should not be effected nor the payment of the compromise penalty accepted without the prior approval of the Commissioner. This procedure should also be followed in cases where a return is made by the Bureau in view of the refusal of the taxpayer to file or sign a return if the tax shown on the return thus made is P20,000.00 or more. cdtech 2. Failure to pay the tax on time If the tax on the return or assessed as a deficiency, exclusive of surcharges and interests COMPROMISES (a) Does not exceed P50 P5.00 (b) Exceeds P50 but does not exceed P500. 10.00 (c) Exceeds P500 but does not exceed P1,000 20.00 (d) Exceeds P1,000 but does not exceed P5,000 30.00 (e) Exceeds P5,000 but does not exceed P10,000 40.00 (f) Exceeds P10,000 50.00 If the tax shown on the return or assessed as a deficiency, exclusive of surcharges and interests, is P20,000.00 or more, the compromise settlement of the violation by reason of late payment should not be effected, nor the payment of the compromise penalty accepted, without prior approval of the Commissioner. This procedure should also be followed if an amended return as filed after the last day for the payment of the tax where the amendment includes income not declared in the original return regardless of the amount of tax due thereon. This Circular takes effect immediately. aisadc (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue APPROVED: (SGD.) RUFINO G. HECHANOVA Secretary of Finance April 13, 1964 REVENUE MEMORANDUM CIRCULAR NO. ____ SUBJECT : Centralization of Administration of the Law and Regulations on Withholding Tax on Wages TO : Regional Directors, Chief Revenue Officers and Collection Agents In order to attain maximum efficiency in the administration of the laws and regulations relative to withholding tax on wages, the following instructions and procedures are hereby promulgated for implementation and compliance of all concerned: cdti 1.The functions, previously delegated to regional offices relative to the administration of the withholding tax law and regulations are hereby withdrawn and transferred to the Withholding Tax Section, Income Tax Division of the National Office. The functions specifically withdrawn are as follows: (a)Audit, recording, safe-keeping and custody of all withholding tax returns (BIR Form Nos. W-1 and W-3); (b)Receipt and custody of Applications for Employer's Identification Number (BIR Form No. W-5) and issuance and cancellation of Employer's identification numbers; (c)Custody and maintenance of Register of Employer's and Employer's Annual Master List. (d)Review and approval of reports of investigation of withholding tax cases and preparation and issuance of the corresponding letters of demand and assessment notices. 2.The investigation of withholding agents for withholding tax purposes shall, however, be continued to be exercised by the regional offices through examiners in the revenue inspection districts, except those for Regional Offices Nos. 4, 5 & 6 which shall be undertaken by the fieldmen attached to the Withholding Tax Section of the National Office. 3.The months of February and March of each year should be devoted primarily to the verification of withholding tax delinquency cases. In order to avoid unnecessary delay in the investigation of these cases which need to be verified and reported by March 31st, all withholding tax delinquency cases shall be referred directly to the Chief Revenue Officer concerned not later than February 20th. Copies of such references will be furnished to their respective Regional Directors for the latter's follow-up and determination of the workload of the Chief Revenue Officers concerned. The verification must be terminated and reports thereon submitted to the National Office not later than March 31st. Copies of reports should be furnished to the Regional Office. cdt 4.Collection Agents shall continue to accept payments of withholding taxes and receive withholding tax returns filed (BIR Form Nos. W-1, W-3). The Collection Agent shall accomplish and sign legibly the reverse side of all BIR Forms W-1 filed with his office . The date of receipt of the returns should be stamped clearly on both original and duplicate copies and duly initialed by the Collection Agent. The original copies of the returns should be retained by the Collection Agent while the duplicates should be returned to the employer filing the return. All the originals of the returns filed with the Collection Agent should be transmitted to the National Office every first working day of the week. The same procedure should apply to all regional and revenue inspection district offices with respect to all such forms received in their respective offices. For expediency, all transmittals should be addressed to the Chief, Withholding Section. 5.The provisions of this Revenue Memorandum Circular shall apply to cases beginning with the year 1964. The Chief of the Income & Business Tax Branch of all regional offices, except Regional Office Nos. 5 and 6, shall see to it that the withholding tax records of all employers within their respective region for years prior to 1964 are completed and perfected and should keep them in his custody until such time as they are called for by the Withholding Tax Section. All questions or problems on withholding taxes involving such period and records will be referred to the Regional Office concerned for appropriate investigation. The provisions of this Revenue Memorandum Circular supersedes all instructions previously issued which are inconsistent herewith and are effective immediately upon approval. BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue