Condonation of SSS Penalties Does Not Apply to those Already Paid Prior to the Effectivity of the Condonation LawAtty Elvin
Condonation is the creditor’s act of extinguishing an obligation by renunciation and the word “waive” is an abandonment or relinquishment of an existing legal right.
The condonation law of 2009, R.A. No. 9903, does not provide that, prior to its effectivity, penalties already paid are deemed condoned or waived. What Section 2 of the law provides instead is an availment period of six (6) months after its effectivity within which to pay the delinquent contributions for the existing and corresponding penalties to be waived or condoned. This only means that Congress intends R.A. No. 9903 to apply prospectively only after its effectivity and until its expiration.
Settling the contributions in arrears within the availment period only entitles delinquent employers to a remission of their corresponding accrued and outstanding penalties-not a refund of the penalties which have already been paid. There is nothing in the condonation law in 2009, R.A. No. 9903, which explicitly imposes or even implicitly recognizes a positive or natural obligation on the part of the SSS to return the penalties which have already been settled before its effectivity.
It is absurd to revive obligations that have already been extinguished by payment or performance just to be re-extinguished by condonation or remission so that it may create a resulting obligation on the basis of solutio indebiti.
More importantly, there is no violation of the equal protection clause because there is a substantial distinction in the classes of employers. (Villarica Pawnshop, Inc. vs. Social Security Commission, G.R. No. 228087, January 24, 2018)