Does any one know how the BIR computes it's penalties especially the "compromise" part?
I can understand the surcharge part since it is written at the back of the BIR form... but they did not tell anything on how they compute for the compromise.
The story is I didn't beat the 3:00pm time at the bank yesterday( I came 3:06pm) for the BIR form 1601-E that's why I went back to BIR to have it stamped for extension until the next day(which is today)... I really didn't read what is written on the stamp leading to another problem. I always pay tax on the afternoon, and when I'm about to go to the bank I finally read the stamped BIR form and surprised that I can only pay this day until 12 noon, but it's already 1pm. I still try to go to the bank, but they told me that I have to go back to BIR for them to compute the penalties. By the way, I'm supposed to pay about 425php without any penalties.
In my mind I need to pay additional of 106.25 minimum because it the 25% surcharge that I know...
When the form was given back to me, I can't believe the price that I'm supposed to pay. From 425 pesos now with an additional 106.25 pesos surcharge, 200 pesos interest, and a 1000 pesos compromise...
I'm not expecting to pay double the price because of the penalties, that's why I'm really surprised that now I'm supposed to pay more than four times of what I'm paying.
Does anyone know how they compute on compromise penalties? I want to know too on how they came up with 200 pesos on interest but my main concern is the 1000 pesos compromise.