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Penalties and Remedies
Penalties and Remedies
A taxpayer who paid his tax due of P600,000 for the year 2013
within the deadline set by the BIR on April 15, 2014 was assessed
to have incurred a deficiency tax of P100,000. The BIR then sends
him a final notice and demand for the deficiency tax due,
including the interest penalties on April 15, 2015. The taxpayer,
however was only able to pay on April 15, 2017.
3 years = 2017 - 2014
Surcharge= 25% x deficiency tax due x 3 years Interest = 12% x deficiency tax due x 3 years
= 25% x 100,000 x 3 years = 12% x 100,000 x 3 years
= 75,000 = 36,000
Mr. Bob filed tax due of P550,000 on May 25, 2019 for his
first quarter VAT Payable. The BIR charged him additional
25% based on his tax due.
Plus: Penalties
Surcharge: P550,000 x 25% = 137,500
Interest: P550,000 x 12% x 1/12 = 5,500
Compromise Penalty: = 30,000
Total Tax Due = 723,000
Illustration: Criminal Penalties