By Jun Ramirez
The Court of Tax Appeals said that the Bureau of Internal Revenue (BIR) cannot collect penalties and interests from taxpayers who paid their delinquent accounts in good faith.
The court’s First Division issued the ruling stopping the BIR from imposing more than P59 million deficiency documentary stamp taxes (DST) from Saturn Holdings Corporation consisting of surcharge, interest and compromise penalties for taxable year 2009.
“Good faith and honest belief that one is not subject to tax on the previous interpretation of the government office to implement tax laws are sufficient justification for petitioner to be spared of interests and surcharges,” the court said in a 16-page resolution.
It said the taxpayer cannot be considered at default for not paying the tax because it believed in good faith that
IT noted that previous BIR rulings were ambivalent about the collection of DST on company advances.
It said Saturn readily paid the basic P44.3 million basic DST when the Supreme Court issued a decision favoring the collection of the tax in BIR vs. Filinvest Development Corporation case.
It added the BIR did not mention the interest and surcharges when it notified the taxpayer about the assessment.