Commissioner Joel L. Tan-Torres warned heads of government agencies/instrumentalities and their respective Chief Accountants/Finance Officers/Treasurers that they shall be personally liable for the additions to tax prescribed under Section 247 of the Tax Code, in addition to the penalty of imprisonment.

Quezon City, 20 January 2010 – Government Owned and Controlled Corporations and their subsidiaries (GOCCs), including water districts per Commission on Audit (COA) report showed total outstanding tax liabilities amounting to P 13.26 billion for CY 2007 and P 9.87 billion for 2006. These amounts were culled from the Audited Financial Statements of state agencies where a sizable amount should have been remitted, Internal Revenue Commissioner Joel Tan-Torres said.

COA reports disclosed that 56 LGUs had tax payable amounting to P 1.65B and 277 water districts had tax liabilities of P 82.083 M for 2006 and 2007.

Commissioner Joel L. Tan-Torres warned heads of government agencies/instrumentalities and their respective Chief Accountants/Finance Officers/Treasurers that they shall be personally liable for the additions to tax prescribed under Section 247 of the Tax Code, in addition to the penalty of imprisonment.

For designated government withholding agents from National Government Agencies, Government Owned and Controlled Corporations and other instrumentalities charged with the duty to deduct and withhold any internal revenue tax and to remit the same in accordance with the provisions of the Tax Code shall, upon conviction for each act or omission be punished by a fine of not less than Five thousand pesos (P 5,000.00) but not more than Fifty thousand pesos (P 50,000.00) or suffer an imprisonment of not less than six (6) months and one (1) day but not more than two (2) years, or both.

In the case of corporations, the corporate officers and employees of the corporation concerned shall be held criminally liable for such failure, in accordance with Sec. 256 of the Tax Code which shall, upon conviction for each act or omission, be punished by a fine of not less than Fifty thousand pesos (P 50,000.00) but not more than One hundred thousand pesos (P 100,000.00).