Law Summary
Penalty for Failure to Submit Tax Clearance
- Operators failing to secure and submit the Tax Clearance by the deadline will incur a penalty of Five Hundred Pesos (PhP 500.00) per year.
- Payment of penalty alone does not exempt the operator from the requirement — the operator's units will not be confirmed for registration purposes until the Tax Clearance is submitted.
Application of Requirement to New Applications
- Submission of the Tax Clearance is mandatory for all new applications filed after the effectivity of this Circular.
- This reinforces the compliance requirement as a precondition for regulatory processing.
Transitional Provisions for the Current Year
- Operators are given a grace period of sixty (60) days from the effectivity of the Circular to submit their Tax Clearance without facing immediate penalties.
- Operators who have already paid penalties under the previous Memorandum Circular No. 2004-038 will not be fined again for the current year but must still secure the Tax Clearance.
Modification and Supersession of Previous Issuances
- Any prior issuances or parts thereof inconsistent with this Circular are modified or superseded accordingly.
Effectivity and Legal Filing
- The Circular becomes effective fifteen (15) days after the filing of three copies with the University of the Philippines Law Center.
- This procedure complies with Presidential Memorandum Circular No. 11 dated October 09, 1992.
Enforcement and Administrative Oversight
- The LTFRB Chairperson and Board Members officially adopted and ordered the enforcement of this Circular on May 09, 2005.
- Close coordination with the BIR is mandated to ensure compliance and proper issuance of Tax Clearances.