The non-filing of ITR wasn’t a violation under the 1977 NIRC, according to DOF.
DOF — The Department of Finance said that the non-filing of income tax return (ITR) wasn’t a violation under the 1977 National Internal Revenue Code (NIRC).
According to Finance Secretary Carlos G. Dominguez III, failure to file an ITR wasn’t a violation under the 1977 NIRC as failure to file tax returns has become a punishable offense only in 1992.
He issued this clarification on Friday as the Commission on Elections (COMELEC) First Division dismissed a case filed against presidential candidate Ferdinand “Bongbong” Marcos Jr. for failure to file his ITR.
The DOF chief said that the 1977 NIRC was the applicable Tax Code from 1983 to 1985, the taxable years when the former senator failed to file his ITR.
Dominguez cited the 1977 provision that stated:
“Provided, however, that an individual with compensation income taxable under Section 21 (a) of this Code and where the tax withheld from such compensation income is final shall be exempt from the penalty for failure to pay the tax on such compensation income and to file a return thereon at the designated period.”
Dominguez added that the said provision “was removed only in 1992”.
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The COMELEC First Division dismissed on Thursday the disqualification case filed against the former senator.
A portion of the COMELEC ruling stating that “the failure to file tax returns is not inherently wrong in the absence of a law punishing it” trended online.
The DOF chief stressed that the COMELEC ruling shouldn’t be taken out of context. Dominguez then appealed to the media to “please help educate the public” about proper tax compliance.
Meanwhile, COMELEC Spokesperson James Jimenez defended on Friday the resolution of the poll body’s First Division dismissing the disqualification cases against the former senator.
Jimenez said that the COMELEC ruling stating that “the failure to file tax returns is not inherently wrong in the absence of a law punishing it” was being taken out of context, adding that the poll body wasn’t saying that failure to file ITR wasn’t a punishable offense.
“The Comelec does not say that failure to file an ITR is not a punishable offense. It is. The Comelec is not saying that failure to file ITR is okay because it is not,” Jimenez said.
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