Illustration: Deficiency Tax

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

Total Tax Liability = Surcharge + Interest + Tax Due

= 75,000 + 36,000 + 100,000
= 211,000
Illustration: Delinquency Tax

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.

VAT payable = 550,000

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

The BIR charges Mr. Henry Ng for tax evasion by overstating

purchases by P500,000. Suppose his sales amounts to P39.51
Million his real purchases was 25 million. The BIR charged
him additional P600,000 and imprisonment of 6 years.

Output tax (P39.51 M * 12%) P4,741,200

Input tax (P25 M * 12%) P3,000,000
VAT Payable P1,741,000
Plus: Fine of 600,000 P600,000
Total Tax Due P2,341,000
Compromise Penalty Table “Failure to file
and/or pay”
Compromise Penalty Table “Failure to
file and/or pay”
Tax Refund
Mr. Kalulu paid tax of P500,000 for the month of June in 2018.
However, the BIR assessed that he incurred a deficiency tax of
P100,000. Mr. Kalulu then paid the said amount on the same
month of the same year. Suppose Mr. Kalulu on April 2020
obtained enough evidence that he was right on his first payment
of P500,000, he shall write his claim addressed to the
Commissioner