The Court notes that for the taxable year 1992, the claimed expenses for spouses Alderson, Chairman and Vice-Chairman of petitioner Benjoy’s board, are almost four (4) times than that of its President. With such difference, the salaries of the spouses Alderson are inordinately large, hence should be reduced accordingly.
Section 58 of the NIRC of 1997 obliges the withholding agent to file the withholding tax return and pay to the BIR the withheld tax at a certain period after the end of each month. In this case, petitioner paid the supposed tax withheld only when respondent had made an assessment thereon, which was beyond the required period. Thus, even if petitioner paid the deficiency expanded withholding tax upon being assessed thereof, it shall not be allowed to deduct the subject expenses or income payments to the pertinent withholding tax rates were applied. Benjoy, Inc. v. Commissioner of Internal Revenue, C.T.A. Case No. 7597, November 25, 2009
RR 12-2013
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