b. Surcharge

Surcharge

Penalty: Generally 25% of the amount due, or 10% for micro and small taxpayers, in addition to the tax required to be paid, in case of the following:

• Failure to file any Return and pay the tax on the date prescribed; or
• Filing a return with an Internal revenue officer other than those with whom the return is required to be filed, unless otherwise authorized by the CIR; or
• Failure to pay on or before the Date prescribed for its payment:
• The full or part of the amount of tax shown on any return required to be filed; or
• The full amount of tax due for which no return is required to be filed.

Surcharge Penalty

The surcharge is 50% of the tax or deficiency tax, but 25% for micro and small taxpayers, in case of:

• Willful neglect to File the return within the period prescribed; or
• False or fraudulent return is willfully made, in case any payment has been made on the basis of such return before the discovery of the falsity or fraud.

The following shall be prima facie evidence of a false or fraudulent return:

• Substantial under-declaration of taxable sales, receipts or income – failure to report sales, receipts or income in an amount exceeding 30% of that declared per return; or
• Substantial over-statement of deductions – claim of deductions in an amount exceeding 30% of actual deductions.