(1) Penalties.
(a) For late deposits of withheld taxes due under this Chapter there shall be added, in addition to the penalties set forth herein, a penalty of ten percent (10%) of the underpayment.
(2) Extension for Payment.
(a) If the due date for the payment of any tax due falls on a Sunday or a holiday, or any day during which the agency collecting such tax is not open for a full business day, the Department may postpone such due date to the next following business day.
(b) The Department may, upon proper cause shown, grant a taxpayer an extension of not more than sixty (60) days for the payment of the tax. Application for such extension shall be made on or before the last day for the payment of the tax, in such form as the Department prescribes.
(c) If any Federal taxing authority grants to any taxpayer an extension for the payment of Federal income tax for a period in excess of sixty (60) days, the Department may grant an additional extension of time for the payment of any City tax affected thereby, not to exceed thirty (30) days after the termination of the Federal extension period.
(d) Where an extension for payment of any tax has been granted by the Department, the principal amount of such tax shall be subject to interest from the original due date at the rate of one-half of one percent (0.5%) per month, or part thereof, but shall not be subject to any penalty if paid within the extended period.
(3) Extension for Filing Returns.
(a) The Department may, upon proper cause shown, grant a taxpayer an extension of not more than sixty (60) days for the filing of any tax return. Application for such extension shall be made on or before the last day of the payment of the tax, in such form as the Department prescribes.
(b) If any Federal taxing authority grants to any taxpayer an extension for the filing of Federal income tax returns for a period in excess of sixty (60) days, the Department may grant an additional extension of time for the filing of any tax returns affected thereby, not to exceed the date of termination of the Federal extension period.
(c) In order for an extension to be granted, the taxpayer must file a tentative return and pay one hundred percent (100%) of the tax estimated to be due, on or before the statutory due date. The extension will not relieve the taxpayer from the obligation to pay interest and penalty from the date such return was originally due upon the amount of tax due in excess of the estimated tax paid.
(4) Allocation of Delinquent Payments.
(a) Unless otherwise provided, when a partial payment is made on account of any delinquent tax, such payment shall be prorated between the principal sum of such tax and the penalties and interest accumulated on it.
(5) Records of Taxpayer.
(a) Every person who has paid, or from whom there is due or alleged to be due, any moneys collectible by the Department, for or on behalf of the authority, including any taxes, charges, or other sums, and any person upon whom there is imposed any other obligation to collect and remit to a city any such moneys shall:
(.1) preserve and retain his books, records, accounts, copies of tax returns filed with other taxing authorities, and other data relating thereto, for a period of six (6) years after such moneys become collectible or have been collected by the Department, whichever is later;
(.2) when requested by the Department produce his books, records, accounts, copies of tax returns filed with other taxing authorities, and other data relating thereto, and give to the Department the opportunity to make examination of such books, records, accounts, copies, data, and any property owned or controlled by such person in order to verify the accuracy of any report or return made, or if no report or return has been made, to ascertain the amount of tax, rent, charge, or other sum due.
(.3) Any information obtained by the Department in the conduct of any examination or investigation shall be treated as confidential, except in the course of departmental business, or in accordance with judicial order, or as otherwise provided by law.
(6) Oaths.
(a) Whenever the Department shall hold hearings or conduct investigations, the Revenue Commissioner of the City, or any deputy designated by him, shall have the power to administer oaths to persons under examination.
(7) Interest, Penalties and Costs.
(a) If any tax authorized or imposed under this Chapter is not paid when due, there shall be added to the amount of the unpaid tax and collected therewith, interest at the rate of one-half of one percent (0.5%) of the amount of the unpaid tax, and a penalty at the rate of one percent (1%) of the amount of the unpaid tax shall be added for each month or fraction thereof during which said tax shall remain unpaid and shall be collected, together with the amount of the tax. This provision shall not apply to:
(.1) Taxes imposed by Section 19-2803 that are not, in fact, withheld pursuant to Section 19-2806; provided, however, when such tax is not paid when due interest at the rate of one-half of one percent (0.5%) of the amount of the unpaid tax and a penalty of one percent (1%) of the amount of the unpaid tax per month for the first year and one-half of one percent (0.5%) per month thereafter shall be added and collected together with the amount of the tax.
(b) Where suit is brought for the recovery of any such tax the person liable therefor shall, in addition, be liable for the costs of collection together with the interest and penalties herein imposed.
(c) If any tax imposed under this Chapter was not paid when due or is not paid when it becomes due, there shall be added to the amount of the unpaid tax, interest, and penalty and collected therewith:
(.1) interest at the rate of one-half of one percent (0.5%) of the amount of the unpaid tax each month or fraction thereof during which the tax remains unpaid; and
(.2) penalty calculated on the amount of the unpaid tax at the following rates for each month during which the tax remains unpaid:
(.a) in the first month or fraction thereof following the due date, one percent (1%);
(.b) in the second month or fraction thereof following the due date, an additional one percent (1%) for a total of two percent (2%);
(.c) in the third month or fraction thereof following the due date, an additional one percent (1%) for a total of three percent (3%);
(.d) in the fourth month or fraction thereof following the due date, an additional two percent (2%) for a total of five percent (5%);
(.e) in the fifth month or fraction thereof following the due date, an additional two percent (2%) for a total of seven percent (7%);
(.f) in the sixth month or fraction thereof following the due date, an additional two percent (2%) for a total of nine percent (9%);
(.g) in the seventh month or fraction thereof following the due date, an additional three percent (3%) for a total of twelve percent (12%);
(.h) in the eighth month or fraction thereof following the due date, an additional three percent (3%) for a total of fifteen percent (15%);
(.i) in the ninth month or fraction thereof following the due date, an additional three percent (3%) for a total of eighteen percent (18%);
(.j) in the tenth month or fraction thereof following the due date, an additional four percent (4%) for a total of twenty-two percent (22%);
(.k) in the eleventh month or fraction thereof following the due date, an additional four percent (4%) for a total of twenty-six percent (26%);
(.l) in the twelfth month or fraction thereof following the due date, an additional four percent (4%) for a total of thirty percent (30%);
(.m) thereafter, for each additional month or fraction thereof following the due date, one and one-quarter percent (1.25%) shall be added to the amount charged under subsection (.1).
(d) In addition to any other sanction or remedial procedure provided, any person who shall:
(.1) make any false or untrue statement on his report or return;
(.2) fail or refuse to file any report or return;
(.3) violate any condition of any license required hereunder;
(.4) fail to pay over to the Department any moneys which he may hold as agent for the Department;
(.5) violate any provision of this Chapter or any regulation adopted hereunder;
shall be subject to a fine of not more than three hundred dollars ($300), for each offense together with imprisonment for not more than ninety (90) days if the fine and costs are not paid within ten (10) days. A separate offense shall be deemed to occur on the first day of each month that conduct described in subsections (d)(.2) or (d)(.4) continues.
(e) Any person who shall have paid, or from whom there is due or alleged to be due any moneys collectible by the Department, including any taxes, charges, or other sums, and who fails and refuses to produce or permit the examination of his books, records, accounts, and related data, or to afford to authorized representatives of the Department an opportunity for such examination, shall be subject to a fine of not more than three hundred dollars ($300) for each such offense, with imprisonment for not more than ninety (90) days if the fine and costs are not paid within ten (10) days.
(f) When any person shall give or cause to be given to a city official or agency a check in payment of any obligation whether due to the department or others, including but not limited to any tax which is dishonored or unpaid by the bank upon which it is drawn, the sum of twenty dollars ($20) shall be added to the obligation and interest and penalties provided by law or otherwise, to cover the additional cost to the Department.
(8) Limitation of Actions.
(a) Any suit to recover any tax authorized or imposed by this Chapter shall be begun within six (6) years after such tax is due or within six (6) years after a return or a report has been filed, whichever date is later; but this limitation shall not apply in the following cases:
(.1) where the taxpayer has failed to file the return or report required under the provisions of this Chapter;
(.2) where an examination of a return or report filed by the taxpayer and of other evidence relating to such return or report in the possession of the Department reveals a fraudulent evasion of taxes or a substantial understatement of gross income, or any other receipt of income, moneys or funds in any such return or report; 581
(.3) where the taxpayer has collected or withheld tax funds or moneys of any nature or description under this Chapter as agent of or trustee for the Department and has failed, neglected or refused to pay the amount so collected or so withheld to the Department.
(b) All defenses to the collection of any tax authorized or imposed by this Chapter shall be raised by appropriate petition pursuant to provisions of local ordinance.
(c) Where a taxpayer has filed any petition pursuant to ordinance, the period of limitation set forth in subsection 19-2809(8)(a) shall be tolled until final determination of such petition has been made.
(9) Construction.
(a) Each tax authorized or imposed under this Chapter upon any person, transaction, occupation, privilege, subject or personal property shall be in addition to any other taxes imposed by a city of the first class upon such person, transaction, occupation, privilege, subject or personal property.
(10) Administration and Enforcement.
(a) The Commissioner of Revenue of the City of Philadelphia is hereby authorized to promulgate regulations governing the administration, enforcement and interpretation of the provisions of this Chapter.
Notes
| 581 | Amended, Bill No. 120822 (approved April 17, 2013). Enrolled bill read "... fraudulent evasion of or a substantial understatement of...." |