Title
Computation of Civil Penalties on Tax Deficiency
Law
Bir Revenue Memorandum Circular No. 46-99
Decision Date
Jun 18, 1999
BIR Revenue Memorandum Circular No. 46-99 outlines the computation of civil penalties, including a 25% surcharge and 20% interest for late payment of internal revenue taxes, as well as procedures for extra-judicial settlement of taxpayer criminal liabilities under the National Internal Revenue Code.
A

Q&A (BIR REVENUE MEMORANDUM CIRCULAR NO. 46-99)

A surcharge equivalent to 25% of the amount due is imposed for failure to file any return and pay the tax due thereon on the date prescribed.

The 25% surcharge is imposed when the tax due as shown on the return is not paid on or before the prescribed date or when a deficiency tax assessment is not paid by the deadline indicated in the notice and demand.

No, the 25% surcharge is not imposed when computing for deficiency tax assessments.

Civil penalties consist of a 25% surcharge plus 20% interest per annum computed from the due date of the tax until the date of payment.

Interest is computed at 20% per annum, calculated from the due date of the tax to the date of payment, using a daily interest rate applied to the unpaid amount.

A surcharge of 50% plus 20% interest per annum applies to taxes not filed or paid due to willful neglect.

A 50% surcharge on the deficiency tax plus 20% interest per annum applies in cases of fraudulent or false returns.

A 25% surcharge on the tax due is imposed if the return is filed through an internal revenue officer other than those authorized, unless authorized by the Commissioner.

A 25% surcharge is imposed on the amount of the deficiency tax plus 20% interest per annum for the period from the deadline of payment to the actual payment date.

If the payment schedule is duly authorized before the original due date, no 25% surcharge is imposed, but 20% interest per annum is computed on the unpaid balance until fully paid.

No, the compromise penalty may only be suggested and settled extra-judicially with the taxpayer's consent; it cannot be imposed without agreement.

The provisions became effective on January 1, 1998.

The taxpayer is liable for a 25% surcharge plus 20% interest per annum on the unpaid amount from the due date until payment.

All criminal violations may be compromised except those already filed in court or those involving fraud.


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