Tuesday 23 October, 2018
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SC denies Villarica Pawnshop plea for refund of P4.99M SSS penalties

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The Supreme Court (SC) has denied Villarica Pawnshop’s petition to be refunded P4,991,034.37 in penalties it paid to the Social Security System (SSS), shortly before the enactment of the Social Security Condonation Law of 2009.

In a recent 19-page decision, the SC 3rd Division said nothing in the condonation law stated it would also benefit employers who had settled their delinquent contributions “prior” to its effectivity.

The SC noted that Republic Act Number 9903 only covered employers who have existing delinquent contributions and have accrued penalties at the time of its effectivity.

“Once an employer pays all his delinquent contributions and accrued penalties before the effectivity of R.A. No. 9903, it cannot avail of the condonation program because there is no existing obligation anymore,” read the decision penned by Associate Justice Alexander Gesmundo.

“A plain reading of Section 4 of R.A. No. 9903 shows that it does not give employers who have already settled their delinquent contributions as well as their corresponding penalties the right to a refund of the penalties paid,” it added.

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