TAX REMEDIES: ADDITIONAL TOPIC

1. SURCHARGE - percentage of the amount due.

25% Surcharge 50% Surcharge

1. Failure to file any return and pay the tax due 1. Willful neglect to file the return within the
thereon (within the prescribed period for filing and period prescribed by the tax code or by rules and
payment) regulations;

Involves a situation where the taxpayer voluntarily Note: 50% surcharge shall be imposed in case
files the return beyond the prescribed period, but taxpayer files the return only after prior notice in
before any notice is received from the BIR. (Late writing.
Filing)

2. Filing a return with an internal revenue officer

2. In case a false or fraudulent return is willfully
other than those with whom the return is required
made.
to be filed.

A substantial under declaration of taxable sales,

3. Failure to pay the deficiency tax within the time
receipts of income, or a substantial overstatement
prescribed for its payment in the notice of
of deductions by >30%, shall constitute a prima
assessment.
facie evidence of falsity or fraud.

4. Failure to pay the full or part of the amount of

tax shown on any return required to be filed, or
before the date prescribed for its payment.

2. INTEREST

OLD LAW: 20% per annum until the amount of deficiency is fully paid.

TRAIN LAW - double the interest rate set by the Banko Sentral ng Pilipinas. (12%)

Tax Deficiency - The amount still due and collectible from a taxpayer upon audit or investigation.

Tax Delinquency - failure of the taxpayer to pay the tax due on the date fixed by law or indicated in
the assessment notice (FAN) or letter of demand.

Example:

Mr. J has been assessed of a deficiency of P1,000,000, income tax exclusive of interest and surcharge,
for taxable year 2018. The tax liability has remained unpaid despite the lapse of June 30, 2020, the
deadline for payment stated in the notice and demand issued by the Commissioner. Payment was
made by the taxpayer on February 10, 2021. Compute the total amount paid by Mr. J. P1,498,530
3. OTHER PENALTIES

A. For failure to file an information return, statement, list, or any required attachment: P1,000
for such failure. The aggregate amount to be imposed for all such failures during a calendar year
shall not exceed P25,000.

B. For failure of a withholding agent to collect and remit the tax: penalty in the amount equal to
the total amount of the tax not withheld.

C. For failure of a withholding agent to refund excess withholding tax: Any employer/withholding
agent who fails or refuses to refund excess withholding tax shall be liable to a penalty to the
total amount of refunds which was not refunded.