The Devastating Damages that Signing A Tax Return Brings

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ACKNOWLEDGEMENT

1. On November 8, 2012, the subject was prepared which I scanned and copy-pasted hereof.
2. The subject, which revelations are too disturbing, is commanding that I should pay a certain compromise penalty thereof.
3. This forms a part of my case-docket as a protest.

PREPARATORY QUESTION

1. What destructive damages would the respondents and their superiors suffer if the defined, specified and prescribed procedure shall be strictly applied, obeyed and most importantly, respected?

PRESCRIPTION PERIOD

1. According to Sections 203 and 222, NIRC, the right of the BIR to assess tax, surcharge, fee, penalty and interest shall prescribed within three years from the date the final return is filed.
2. For easy reference, I publish their provisions, viz;

1. Section 203, NIRC. Period of Limitation Upon Assessment and Collection. - Except as provided in Section 222, internal revenue taxes shall be assessed within three (3) years after the last day prescribed by law for the filing of the return, and no proceeding in court without assessment for the collection of such taxes shall be begun after the expiration of such period: Provided, That in a case where a return is filed beyond the period prescribed by law, the three (3)-year period shall be counted from the day the return was filed. For purposes of this Section, a return filed before the last day prescribed by law for the filing thereof shall be considered as filed on such last day.
2. Section 222, NIRC. Exceptions as to Period of Limitation of Assessment and Collection of Taxes. (a) In the case of a false or fraudulent return with intent to evade tax or of failure to file a return, the tax may be assessed, or a preceeding in court for the collection of such tax may be filed without assessment, at any time within ten (10) years after the discovery of the falsity, fraud or omission: Provided, That in a fraud assessment which has become final and executory, the fact of fraud shall be judicially taken cognizance of in the civil or criminal action for the collection thereof. (b) If before the expiration of the time prescribed in Section 203 for the assessment of the tax, both the Commissioner and the taxpayer have agreed in writing to its assessment after such time, the tax may be assessed within the period agreed upon. The period so agreed upon may be extended by subsequent written agreement made before the expiration of the period previously agreed upon. (c) Any internal revenue tax which has been assessed within the period of limitation as prescribed in paragraph (a) hereof may be collected by distraint or levy or by a proceeding in court within five (5) years following the assessment of the tax. (d) Any internal revenue tax, which has been assessed within the period agreed upon as provided in paragraph (b) hereinabove, may be collected by distraint or levy or by a proceeding in court within the period agreed upon in writing before the expiration of the five (5) -year period. The period so agreed upon may be extended by subsequent written agreements made before the expiration of the period previously agreed upon. (e) Provided, however, That nothing in the immediately preceding and paragraph (a) hereof shall be construed to authorize the examination and investigation or inquiry into any tax return filed in accordance with the provisions of any tax amnesty law or decree.

1. Thus, the subject does not create right for the BIR to collect the said penalties. Neither, it does not create obligation on my part to pay the said penalties.

EXCESSIVE FINES/PENALTY 

1. The 1987 Philippine Constitution says that the imposition of excessive fine shall not be pursued even if the intention is to increase the revenue of the Philippine Government.
2. For easy reference, I publish its provision, viz;

1.   Section 19, Article III, Bill of Rights. Excessive fines shall not be imposed, nor cruel, degrading or inhuman punishment inflicted. Neither shall death penalty be imposed, unless, for compelling reasons involving heinous crimes, the Congress hereafter provides for it. Any death penalty already imposed shall be reduced to reclusion perpetua. The employment of physical, psychological, or degrading punishment against any prisoner or detainee or the use of substandard or inadequate penal facilities under subhuman conditions shall be dealt with by law.

1. The use of Revenue Memorandum Order No. 19-2007 which did not undergo, before it was implemented, the required public hearings that is mandated by the 1987 Administrative Code is contrary to Section 250, NIRC. Thus, I should not be paying the penalties computed that emanated therefrom.

SECTION 250, NIRC 

1. The NIRC had already confirmed that the compromise penalty shall be computed using the rate specifically prescribed in Section 250 which for easy reference, I publish its statement, viz;

1. Failure to File Certain Information Returns. - In the case of each failure to file an information return, statement or list, or keep any record, or supply any information required by this Code or by the Commissioner on the date prescribed therefor, unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall, upon notice and demand by the Commissioner, be paid by the person failing to file, keep or supply the same, One thousand pesos (1,000) for each failure: Provided, however, That the aggregate amount to be imposed for all such failures during a calendar year shall not exceed Twenty-five thousand pesos (P25,000).

1. Reading it backward and forward, the following may be concluded, viz;

1. First, the maximum compromise penalty to be collected shall not exceed 25,000 Philippine Pesos for a specified tax year.
2. Finally, there shall be collected one thousand Philippine Pesos for each willful neglect to

1. file an information return such as 1604CF, 1604E and other reportorial, lists, returns, records, statements and disclosures
2. file a statement such as the financial statements and other reportorial, lists, returns, records, statements and disclosures
3. file a list such as the VAT Summary List of Sales/Purchases, Inventory List and other reportorial, lists, returns, records, statements and disclosures
4. keep a record such as the books of accounts, 1604CF, 2550Q, 1701Q and other reportorial, lists, returns, records, statements and disclosures
5. supply an information such as MAP, SAWT, financial statements and other reportorial, lists, returns, records, statements and disclosures

1. Applying the language of a substantive law which is superior than RMO 19-2007 as well as to the subject, the compromise penalty shall be, viz;

Infractions	Compromise Penalty
Failure to file AIET return	1,000.00
Failure to file inventory list	1,000.00
Failure to file VSLS (4 quarters)	4,000.00
Failure to file VSLP (4 quarters)	4,000.00
Total	10,000.00

SOLUTIO INDEBITI

1. ‘NO ONE SHALL ENRICH HIMSELF AT THE EXPENSE OF ANOTHER.’ The Supreme Court, in its numerous decisions, says that the Philippine Government as well as the BIR is not exempt from this legal doctrine. Thus, if BIR’s right to assess a tax is already prescribed, my question is this, ‘SHOULD I BE FAULTED, BY WAY OF PAYING THE STATED AMOUNTS THAT ARE NO LONGER DEMANDABLE AND COLLECTIBLE, FOR THE MALFEASANCE, MISFEASANCE, NEGLECT OF DUTY AND NONFEASANCE OF ITS REVENUE OFFICIALS AND OFFICERS?’ 

CONCLUSION

1. Since the actions of the respondents are contrary to the laws of the State, I honestly believe that they do not create any legal right. Neither, an obligation for me to follow their instructions and command.
2. I really hope and expect that the prescribed procedure shall always be respected so that abuse of power and malfeasance may be avoided.
3. Ending, the assessment is erroneous and the right to assess a tax is already prescribed.