Stop Trying to Beat the Deadline, There's No Reward if you Succeed only Penaties if you Fail

When I say "stop trying to beat the deadline", what I meant is stop trying to settle your obligation at the last minute or at the absolute due date.

It is a common trouble for individuals and companies, that they try to settle their taxes at the last minute that if they fail they are charged a great sum of penalties.

Take local taxes for example, If you owe Php 100,000 with the Local Government Unit, failure to settle it on the due will result in a 25% Surcharge plus 2% interest on the Local Tax and Surcharge

 Basic Tax      Surcharge 25%  Interest 2% Total PenaltiesTotal Taxes Due
100,000 25,000  2,50027,500  127,500

As illustrated above, a delay of one (1) day on a Php 100,000 tax due will result in a penalty of Php 27,500.

The same scenario is replicated as regards to your credit card accounts, loan and other bills.

So what do you get when you beat the deadline?, basically you avoided incurring penalties, but you can have the same result if you settle your obligation earlier, minus the hassle, stress of queueing and risk of being exposed to penalties.

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