VAT Ruling No. 020-90

January 23, 1990 VAT RULING NO. 020-90 248-000-00-020-90 Continental Arrastre & Stevedoring Company, Inc. Phase II, International Port of Cagayan de Oro Cagayan de Oro City Attention: Florentino G . Dumlao, Jr . General Manager Gentlemen : This refers to your letter dated June 6, 1988 requesting for the waiver of the 25% surcharge and penalty of P6,000.00 which were assessed by our Revenue District Office No. 75, Cagayan de Oro in connection with your failure to file your VAT return for the first quarter of the year 1988. In reply, please be informed that in case of late payment of a national internal revenue tax, Section 248(a)(3) of the Tax Code prescribes for the mandatory assessment of 25% surcharge. Likewise, pursuant to Section 254 of the same Code, failure to file a VAT return in an offense punishable by a fine of not less than P5,000.00 nor more than P50,000.00 or by imprisonment for not less than six months and one day but not more than five years, or both. The aforesaid penalty of P6,000.00 to be included in the assessment is only a suggested compromise amount in extrajudicial settlement of your penal liabilities arising from said failure to file the VAT return on time. This means that if you do not agree to pay the suggested compromise amount, this Office may prosecute the violation before the Court, and accordingly, payment thereof is contingent upon the Court's imposition of the said penalty if you are found guilty of the offense. In view thereof, this Office regrets that your said request cannot be granted. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue