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(1)

January 22, 2015

REVENUE MEMORANDUM ORDER NO. 007-15

I.

SUBJECT :

The Revised Consolidated Schedule of Compromise Penalties


for Violations of the National Internal Revenue Code

TO

All Internal Revenue Officers and Others Concerned

Objectives:

This Order is issued to adopt and implement a uniform application of the


compromise penalties involving violations of the National Internal Revenue Code of
1997 (Tax Code), as amended, as well as to update the Schedule of Compromise
Penalties specified under RMO No. 19-2007
and further deleting from the
coverage thereof certain acts commonly resorted to by taxpayers as means of tax
evasion.
II.

Policies:

The applicable policies and guidelines prescribed under RMO No. 19-2007
shall remain for the strict compliance by all concerned, and are quoted as follows:

III.
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1.

In all cases of criminal violations of the NIRC, not involving the


commission of fraudulent act, it is directed that henceforth,
compromise penalties to be imposed shall follow strictly the
amounts in the attached "Revised Schedule of Compromise
Penalties", marked as Annex "A" and made an integral part hereof.

2.

Certain acts/violations which are commonly resorted to by


taxpayers as means of tax evasion are deleted from the coverage
thereof for having met the requirements of the definition of
fraudulent acts.

Guidelines and Instructions:


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Philippine Taxation Encyclopedia 2015

1.

The internal revenue officers concerned shall apply the Revised


Schedule of Compromise Penalties embodied in Annex "A" to
ensure uniformity of action.

2.

Cases involving fraud shall be referred to the concerned Division


having jurisdiction over the case, for the institution of the
corresponding criminal action.
DSATCI

IV.

3.

In no case shall the compromise penalty differ in amount from


those specified in the aforementioned Schedule, except when duly
approved by the Commissioner or concerned Deputy
Commissioner, or in proper cases, by the Regional Directors.

4.

Although all amounts of compromise penalties incident to


violations shall be itemized in the assessment notice and/or
demand letter, the same should not form part of assessment notice
that reflects deficiency basic tax, surcharge and interest but should
appear in a separate assessment notice/demand letter as the amount
suggested to the taxpayer to pay in lieu of criminal prosecution. If
paid, the compromise penalties shall be collected and accounted
for under the usual procedures, as internal revenue collection.

5.

Since compromise penalties are only amounts suggested in


settlement of criminal liability, and may not therefore be imposed
or exacted on the taxpayer, the violation shall be referred to the
appropriate office for criminal action in the event that a taxpayer
refuses to pay the suggested compromise penalty.

6.

The schedule of compromise penalties herein prescribed shall not


prevent the Commissioner or his duly authorized representative
from accepting a compromise amount higher than what is provided
hereof. A compromise offer lower than the prescribed amount may
be accepted after approval by the Commissioner of Internal
Revenue or the concerned Deputy Commissioner/Assistant
Commissioner/Regional Director.

Repealing Clause:

All other orders which are inconsistent herewith are hereby repealed or
revoked accordingly.
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Philippine Taxation Encyclopedia 2015

V.

Effectivity:
This Order shall take effect immediately.

(SGD.) KIM S. JACINTO-HENARES


Commissioner
ANNEX A
Revised Schedule of Compromise Penalty
Code

Nature of Violation

Criminal Penalty Imposed

Amount of Compromise

Sec
90/275

Failure to have the


statement of assets of the

Fine of not more than P1,000 or


imprisonment of not more than

decedent and the

6 months, or both. (Sec. 275,

deductions from gross

NIRC)

If the gross estate


But Does

Compromise
Exceeds

Not Exceed

P2,000,000

P5,000,000

5,000,000

10,000,000

independent CPA duly

10,000,000

25,000,000

accredited by the BIR

25,000,000

50,000,000

50,000,000

xxx

is
P7,500
estate certified by an
10,000
20,000
25,000
50,000
232/235

Failure to keep/preserve

Fine of not more than P1,000 orIf gross annual sales, earnings or

records required by law or

imprisonment for not more than

regulations

(six) 6 months, or both. (Sec.

receipts
Exceeds

But Does

Compromise
Not Exceed

is
275, NIRC)

Pxxx

P50,000

50,000

100,000

100,000

500,000

500,000

5,000,000

5,000,000

10,000,000

P1,000
3,000
5,000
10,000
15,000
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Philippine Taxation Encyclopedia 2015

10,000,000

20,000,000

20,000,000

50,000,000

50,000,000

xxx

20,000
30,000
50,000
232

Failure to have books of

Fine of not more than P1,000 orIf gross annual sales earnings or

accounts audited and have

imprisonment of not more than 6

the financial statements

months, or both. (Sec. 275, NIRC)

receipts
Exceeds

But Does

Compromise
Not Exceed

is
attached to the income tax

P25,000 (for

P200,000

any Quarter);

(for the year);

200,000

500,000

500,000

5,000,000

5,000,000

10,000,000

10,000,000

25,000,000

25,000,000

xxx

P3,000
return certified by an
independent CPA duly
accredited by the BIR
5,000
10,000
15,000
20,000
25,000
236/258
Failure to Register
establishment is located in

municipalities

Fine of not less than P5,000 but

If the subject

not more than P20,000 and


imprisonment of not less than 6
months but not more than 2
10,000*
years

the following:
a. Cities
20,000*
b. 1st class

municipalities

5,000*

municipalities

2,000*

c. 2nd class
d. 3rd class

* Penalties provided
are inclusive of all other
violations
258

Failure to pay annual


registration fee by a person
municipalities
engaged in the business of
municipalities
distilling, rectifying,
municipalities
repacking, compounding or
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Fine of not less than P30,000 but


not more than P50,000 and
20,000
suffer imprisonment of not
15,000
less than 2 years but not more
10,000
than 4 years
Philippine Taxation Encyclopedia 2015

a. Cities
b. 1st class

30,000

c. 2nd class
d. 3rd class

manufacturing article
subject to excise tax
236/275

236/275

Failure to Pay & Display the


Annual Registration Fee

Fine of not more than 1,000 or


imprisonment of not more than 6

(BIR Form 0605)

months (Sec. 275, NIRC)

No Certificate of
Registration displayed

Fine of not more than 1,000 or


imprisonment of not more than 6

P1,000

P1,000

months (Sec. 275, NIRC)


236/275

Failure to display the


poster "Ask for
BIR Receipt" or "Notice to
the Public to demand

Fine of not more than 1,000 or


imprisonment of not more than 6
months, or both.
(Sec. 275, NIRC)

P1,000

receipts/invoice"
236/275

Failure to attach or paste


authorized sticker/DECAL
authorizing the use of

Fine of not more than 1,000 or


imprisonment of not more than 6
months, or both. (Sec. 275, NIRC)

P1,000 per unit

CRM/POS/CAS
Failure to present
application form (BIR Form
1900 and 1905) to use
registered sales
books/permit to use loose

P1,000

leaf sales books


238/275

Failure of the printer to


submit the required
quarterly report (Sec. 238,

Fine of not more than P1,000 or


imprisonment of not more than 6
months or both

First
Offense
P5,000

Second
Offense
P10,000

NIRC)
Subsequent offenses
shall be considered as
willful failure, and thus
not subject to
compromise.
250
Failure to make, file, or
(P1,000) for each failure
submit the complete
the said information
quarterly Summary Lists of
however, that the
Sales and Purchases-Local &
imposed for such
Imported (SLSP), the Annual
calendar year shall not
Alpha List of Payees and/or
Thousand Pesos
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One Thousand Pesos


to make, file, or submit
returns. Provided,
aggregate amount to be
failures during a
exceed Twenty-Five

Philippine Taxation Encyclopedia 2015

Employees subjected to
withholding taxes, or
supply correct and accurate

(P25,000).
For this purpose, failure

to supply the
information therein at the
each buyer or seller
time or times required by
shall constitute a
the Tax Code, as amended,
omission
or other existing
Memorandum Circular

required information for


of goods and services
single punishable act or
pursuant to Revenue

rules and regulations

(RMC) No. 51-2009.


Notwithstanding the

foregoing, failure on the


part of the taxpayer to
make, file or submit
the required complete
Schedules of
Sales/Purchases
including Importations, if any,
(SLS/P/I)/Annual Alpha
Lists at the time
or times required by the
Tax Code, as
amended, and other
existing rules and
regulations under the
following
circumstances shall be
considered as willful
failure/neglect
tantamount to fraud and thus
cannot be
compromised:
(a) failure to submit for
at least:

two (2) times in a

taxable year, in
the case of
required complete
SLS/P/I;

two (2)

consecutive years, in the


case of Annual
Alpha Lists of
Payees from
whom Taxes were
Withheld; and
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Philippine Taxation Encyclopedia 2015

(b) non-submission in
the format
prescribed.
Complete Summary
Lists refers to the set of
Summary Lists of Sales
(SLS) and Summary
Lists of Purchases
(SLP). In the case of those
with importations,
completeness shall
include not only SLS
and SLP but also the
Summary Lists of
Importations (SLI). Failure
to submit the
full/complete lists shall be
counted as one
violation.
Thus, submission of
incomplete lists,
including the submission
of erroneous lists,
shall be considered as
an act of nonsubmission. The
submission of falsified
information is an act of
fraud and cannot be
compromised.
Non-compliance with a
duly issued
Subpoena Duces
Tecum (SDT) is penalized
under Sec. 266 of the
Tax Code, as amended,
and the prosecution
thereof is provided under
RMO No. 10-2013.
250
Failure to make, file or
(P1,000) for each
submit information returns,
schedule, report, sworn
schedules, reports, sworn
and other document
statements, certifications
submitted, or for each
and other documents,
Provided, however,
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One Thousand Pesos


information return,
statement, certification
not made, filed or
record not maintained.

Philippine Taxation Encyclopedia 2015

(except quarterly SLS/P/I,


amount to be imposed for
and the Annual Alpha List of
calendar year shall not
Payees and/or the Annual
Thousand Pesos
Alpha List of Employees
subjected to withholding
taxes), or keep any record
required by the Tax Code, as
amended, or other existing

that the aggregate


such failures during a
exceed Twenty Five
(P25,000).

rules and regulations


250
Failure to supply correct
(P1,000) for each
and accurate information
information
in the information returns,
information return, schedule,
schedules, reports, sworn
certification and
statements, certifications
Provided, however, that the
and other documents
imposed for such
(except quarterly SLS/P/I,
calendar year shall not
and the Annual Alpha List of
Thousand Pesos
Payees and/or the Annual
Alpha List of Employees
subjected to withholding
taxes) required by the Tax
Code, as amended, or other

One Thousand Pesos


incorrect or erroneous
supplied in the
report, sworn statement,
other document.
aggregate amount to be
failures during a
exceed Twenty Five
(P25,000).

existing rules and regulations


254
Willful attempt to evade or
compromised
defeat any tax imposed by
fraud. (Sec. 204, NIRC)
the National Internal
Revenue Code or the
payment thereof.
255
Failure to
receipts; or gross
make/file/submit any
return or supply correct
filing/submission)
information at the time or

Fine of not less than P30,000 but

This violation cannot be

not more than P100,000 and

because it involves

imprisonment of not less than


two (2) years but not more than
four (4) years
Fine of not less than P10,000 andIf gross sales, earnings or
imprisonment of not less than estate or gift (based on the subject
one (1) year but not more thanreturns/information for
ten (10) years

But does not

Compromise
times required by law or

Exceeds

exceed

is
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Philippine Taxation Encyclopedia 2015

regulation

Pxxx

P50,000

50,000

100,000

100,000

500,000

500,000

5,000,000

5,000,000

10,000,000

10,000,000

25,000,000

25,000,000

xxx

P1,000
3,000
5,000
10,000
15,000
20,000
25,000
255

Failure to withhold or

Fine of not less than P10,000 andIf the amount of tax not withheld

remit withheld taxes at the


time or times required by

imprisonment of not less than


one (1) year but not more than

law or regulations

ten (10) years

or
remitted
But Does

Compromise
Exceeds

Not Exceed

is
Pxxx

P5,000

5,000

15,000

15,000

20,000

20,000

50,000

50,000

500,000

500,000

1,000,000

1,000,000

xxx

P1,000
3,000
5,000
10,000
15,000
20,000
25,000
255
Failure to refund excess
withholding taxes
taxes withheld on
compensation

Fine of not less than P10,000 andIf the amount of excess


imprisonment of not less than
one (1) year but not more than

Exceeds

not refunded
But does not

Compromise
ten (10) years

Exceed

is
Pxxx

P5,000

5,000

15,000

15,000

20,000

P1,000
3,000
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Philippine Taxation Encyclopedia 2015

5,000
20,000

50,000

50,000

500,000

500,000

1,000,000

1,000,000

xxx

10,000
15,000
20,000
25,000
255
Misrepresentation as to
compromised
actual filing of return or
fraud. (Sec. 204, NIRC)
statement or withdrawal of
return or statement
already filed
255
Failure to make, file or
fraud which cannot
submit the required
complete SLS/P/I, Annual
Alpha List of Payees and
Annual Alpha List of
Employees in the prescribed
format at the time or times
required by the Tax Code, as
amended, or other existing

Fine of not less than P10,000 but

This violation cannot be

not more than P20,000 and

because it involves

imprisonment of not less than


one (1) year but not more than
three (3) years
Fine of not less than Ten

"Willful failure" implies

Thousand Pesos (P10,000) and


imprisonment of not less than one
(1) year but not more than ten
(10) years

be compromised.

rules and regulations.


Failure to make, file or
submit for at least:

two (2) times in a


taxable year, in the
case of complete
SLS/P/I; and/or

two (2) consecutive


years, in the case of
Annual Alpha List of
Payees and/or Alpha
List of Employees from
whom Taxes were
Withheld

in the prescribed format at


the time or times required
by the Tax Code
constitutes willful failure
and cannot be
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compromised.
255

Failure to file and/or pay


any internal

Fine of not less than P10,000 and


imprisonment of not less than

If the amount of tax unpaid


But Does

revenue tax at the time or

one (1) year but not more than

Exceeds

times required by law or

10 years

Compromise
Not Exceed

is
Pxxx

P5,000

5,000

10,000

10,000

20,000

20,000

50,000

50,000

100,000

100,000

500,000

500,000

1,000,000

1,000,000

5,000,000

5,000,000

xxx

P1,000
regulation
3,000
5,000
10,000
15,000
20,000
30,000
40,000
50,000
256
Any act or omission by a
or the amount of
corporation which is
forth in this
penalized under the NIRC
act or omission,

Fine of not less than P50,000 but

P10,000 for corporation,

not more than P100,000 (in

compromise penalty set

addition to penalty set forth or

Schedule for particular

imposed on the responsible


corporate officer, partner or
employee)

whichever is higher.
P5,000 for responsible

officer, partner or
employee
257

a) Violations committed by
any financial officer or
an independent CPA, or
any person under his
direction as follows:

Fine of not less than P50,000 but


not more than P100,000 and
imprisonment of not less than
two (2) years but not more than
six (6) years. (if the offender is a
CPA, his certificate shall
automatically be revoked or
cancelled upon conviction.)

1) Willful falsification of
compromised
any report or statement
fraud. (Sec. 204, NIRC)
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This violation cannot be


because it involves
Philippine Taxation Encyclopedia 2015

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on any examination or
audit; rendering reports
(including exhibits,
statements, etc.) not
verified by him
personally or under his
supervision or by a
member of his firm or
staff in accordance with
sound auditing
practices.
2) Certification of financial
compromised
statement of a business
fraud. (Sec. 204, NIRC)
enterprise containing an
essential misstatement
of facts or omission as to
transactions, taxable
income, deduction and

This violation cannot be


because it involves

exemption of a client.
b) Violations committed by
persons who are not
CPAs

1) Examination and audit


of books of accounts of

Fine of not less than P50,000 but


not more than P100,000 and
imprisonment of not less than 2
years but not more than 6 years.
In case of foreigners, conviction
under this Code shall result in his
immediate deportation after
serving sentence without further
proceedings for deportation.
P25,000

taxpayers;
2) Offering to sign and
certifying financial
statements without

P25,000

audit;
3) Offers any taxpayer the
use of accounting or
bookkeeping records for
internal revenue
purposes not in
conformity with the
requirements in the

P25,000

Code and regulations;


4) Knowingly making false
compromised
entry or enters any false
fraud. (Sec. 204, NIRC)
or fictitious name in the
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This violation cannot be


because it involves

Philippine Taxation Encyclopedia 2015

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books of accounts
mentioned in the
preceding paragraphs;
5) Keeping of two or more
compromised
sets of such records or
fraud. (Sec. 204, NIRC)

This violation cannot be


because it involves

books of accounts;
6) In any way commits an
compromise penalty set forth
act or omission in
particular act or
violation of the
higher, or cannot be
provisions of Sec. 257,
involves fraud.

P1,000 or the
in this Schedule for the
omission, whichever is
compromised if it

NIRC; or

7) (i) Failure to keep books

If gross sales, earnings or receipts


Exceeds
But Does

of accounts or records in

Not Exceed

Compromise
is
a native language,

Pxxx

50,000

50,000

100,000

make a true and

100,000

500,000

complete transaction

500,000

5,000,000

5,000,000

10,000,000

10,000,000

20,000,000

20,000,000

50,000,000

50,000,000

xxx

P1,000
English or Spanish or
3,000
5,000
10,000
15,000
20,000
30,000
50,000
This violation cannot be
compromised
(ii) Where books kept in
fraud. (Sec. 204, NIRC)
a native language, English
or Spanish are found to
be at material variance
with books kept in

because it involves

another language

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This violation cannot be


compromised
8) Willful attempt to evade
fraud. (Sec. 204, NIRC)
or defeat any tax
imposed under the Code
or knowingly uses fake
or falsified Revenue
Official Receipts, Letters
of Authority, Certificates
Authorizing
Registration, Tax Credit
Certificates, Tax Debit
Memoranda and other

Fine of not less than P50,000 but

because it involves

not more than P100,000 and


suffer imprisonment of not less
than two (2) years but not less
than six (6) years

Accountable Forms
259

Illegal collection of foreign


payments collection of
foreign payments under
Sec. 67, NIRC without any
license or in violation of

Fine of not less than P20,000 but


not more than P50,000 and
imprisonment of not less than 1
year but not more than 2 years

P20,000

Fine of not less than P20,000 but

P 100,000, including

not more than P100,000 and


imprisonment of not less than 6

articles/items;
Subsequent violations

years and 1 day but not more

compromise.

implementing regulations
260
Unlawful possession of
forfeiture of unlawful
cigarette paper in bobbins
or rolls, cigarette tipping
shall not be subject to
paper or cigarette filter tips

than 12 years
261
Unlawful use of denatured
forfeiture of unlawful
alcohol

Fine of not less than P20,000 but

P 100,000, including

not more than P100,000 and


imprisonment of not less than 6

articles/items;
Subsequent violations

years and 1 day but not more

compromise.

shall not be subject to


than 12 years
261
Unlawful recovery or
forfeiture of unlawful
attempt to recover by
distillation or other process
shall not be subject to
any denatured alcohol or
who knowingly disposes
alcohol so recovered or

Fine of not less than P20,000 but

P 100,000, including

not more than P100,000 and


imprisonment of not less than 6

articles/items;
Subsequent violations

years and 1 day but not more


than 12 years

compromise.

Fine of not less than P20,000 but

P100,000, including

not more than P100,000 and


imprisonment of not less than 6

articles/items;
Subsequent violations

redistilled
262
Shipment or removal of
forfeiture of unlawful
liquor or tobacco products
under false name or brand
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shall not be subject to


or as an imitation of any

263
on a case

years and 1 day but not more

compromise.

existing name or brand

than 12 years

a) Unlawful possession or

If the appraised value of the

Compromise allowable

article under the Tariff and


Customs Code (TCC)

to case basis

removal of imported
articles subject to excise
tax without payment of
tax

Value Does

Penalty

Exceeds

Not Exceed

is

xxx

P1,000

Fine: P1,000-2,000
and imprisonment of not
less than 60 days but not

2,000*

more than 100 days


1,000

50,000

Fine: 10,000-20,000
and imprisonment of not
less than 2 years but not

2,000*

more than 4 years


50,000

150,000

Fine: 30,000-60,000
and imprisonment of 4 years

60,000*

but not more than 6 years


150,000

xxxx

Fine : 50,000-100,000

100,000*
and imprisonment of not less
than 10 years but not more than
12 years

* Plus

forfeiture of the untaxed article


b) Unlawful possession of
of the untaxed
locally manufactured
articles subject to excise
shall not be subject to
tax without payment of
the tax
263
c) Unlawful removal of
of the untaxed
untaxed articles subject
to excise tax from the
shall not be subject to
place of production

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Fine of not less than 10 times the

P100,000 plus forfeiture

amount of excise tax due but not


less than P500 and imprisonment

article
Subsequent violations

of not less than two (2) years but

compromise.

not more than four (4) years


Fine of not less than 10 times the

P100,000 plus forfeiture

amount of excise tax due but not


less than P1,000 and

article
Subsequent violations

imprisonment of not less than


one (1) year but not more than

compromise.

Philippine Taxation Encyclopedia 2015

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two (2) years


264
a) Failure or refusal to
FirstSecond
issue receipts or sales or
Offense
Offense
commercial invoices;
P10,000
P20,000
issuing receipts invoices
Subsequent violations
not truly reflecting
shall not be subject to
and/or containing all
compromise.
information required
therein or using
multiple or double
receipts or invoices
P25,000
P50,000

Fine of not less than P1,000 but

Specific

not more than P50,000 and

Violation

imprisonment of not less than

a) For failure to

four (4) years

issue receipts
or sales or
sales or
commercial
invoices
b) For refusal to
issue receipts

Subsequent violations
or sales or
shall not be subject to
commercial
compromise.
invoices
If the
P20,000

P50,000
information

Subsequent violations
missing is the
shall not be subject to
correct amount
compromise.
of the
transaction

P5,000

P10,000
c) For issuance of

Subsequent violations
receipts that
shall not be subject to
do not truly
compromise.
reflect and/or
contain all the
information
required to be
shown therein

P20,000
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If the duplicate
Subsequent violations
copy of the
shall not be subject to
invoice is blank
compromise.
but the original
copy thereof is
detached from
the booklet and
cannot be
accounted for

Not qualified for


If the amount
compromise
of the
transaction
stated in the
taxpayer's
copy is
understated
versus the
amount per
copy of the
invoice issue to
the purchaser

P20,000

P50,000
d) (i) For use of

Subsequent violations
unregistered
shall not be subject to
receipts or
compromise.
invoices

P25,000/

P50,000/

unit

unit
(ii) Use of

Subsequent violations
unregistered
shall not be subject to
cash register
compromise.
machines in
lieu of invoices
or receipts

Not qualified for


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e) For possession
compromise
or use of
multiple or
double receipts
or invoices
f) For printing or
causing, aiding
or abetting the
printing of:

P25,000

P50,000
1) Receipts

Subsequent violations
or invoices
shall not be subject to
without
compromise.
authority from
the BIR

Not qualified for


2) Double
compromise
or multiple sets
of receipts or
invoices

P20,000

P50,000
3) Receipts

Subsequent violations
or invoices
shall not be subject to
bearing any of
compromise.
the following:
a. Consecutive
numbers
b. Name of
Taxpayer
c. Business Style
d. Business
address of the
person or
entity to use
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the same
e. TIN
f. Name,
address, date,
authority no.
of the printer
and inclusive
serial
numbers of
the batch or
receipts
printed
265

Offenses relating to
internal revenue stamps

1) Making, importing,
forfeiture of unlawful
selling, using or
possessing without
shall not be subject to
express authority from
the Commissioner any
dye for printing or
making stamps, label

Fine of not less than P20,000 but

P20,000, including

not more than P50,000 and


imprisonment for not less than 4

articles/items;
Subsequent violations

years but not more than 8 years

compromise.

Fine of not less than P20,000 but

This violation cannot be

not more than P50,000 and

because it involves

imprisonment for not less than 4


years but not more than 8 years

(Sec. 204, NIRC)

Fine of not less than P20,000 but

This violation cannot be

not more than P50,000 and

because it involves

imprisonment for not less than 4


years but not more than 8 years

(Sec. 204, NIRC)

Fine of not less than P20,000 but

This violation cannot be

not more than P50,000 and

because it involves

tags or playing cards


2) Erasing the
compromised
cancellation marks of
fraud.
any stamps previously
used or altering the
written figures or
letters, or cancelling
marks on internal
revenue stamps
3) Possession of false,
compromised
counterfeit, restored or
fraud.
altered stamps, labels,
or tags, or causes the
commission of any such
offense by another
4) Selling or offering for
compromised
sale any box or package
fraud.
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containing articles
subject to excise tax
with false, spurious or
counterfeit stamps or
labels or sells from any
such fraudulent box,
package or container as

imprisonment for not less than 4


years but not more than 8 years

(Sec. 204, NIRC)

Fine of not less than P20,000 but

P50,000, including

not more than P50,000 and


imprisonment for not less than 4

articles/items;
Subsequent violations

years but not more than 8 years

compromise.

Fine of not less than P5,000 but


not more than P10,000 and
imprisonment for not less than

First Offense: P10,000

aforesaid
5) Giving away or
forfeiture of unlawful
accepting from another
or sells, buys, or uses
shall not be subject to
containers on which
the stamps are not
completely destroyed
266

Failure to obey summons;


to testify; or to appear and
produce books of accounts,

Second Offense:

P20,000
records, etc. or to furnish
information required under
shall not be subject to

one (1) year but not more than


two (2) years

the NIRC
268
Misdeclaration or
compromised
misrepresentation by
fraud. (Sec. 204, NIRC)
manufacturers of articles
subject to excise tax under
Title IV, NIRC, or any
pertinent data or
information required

Subsequent violations
compromise.

Summary cancellation or

This violation cannot be

withdrawal of permit to engage

because it involves

in business as a manufacturer of
articles subject to excise tax

therein
272

Failure of government

Fine of not less than P5,000 not

officer or employee
charged with the duty to

more than P50,000 or


imprisonment of not less than 6

deduct and withhold any

months and 1 day but not more

internal revenue tax and

than 2 years, or both

If the amount of tax not withheld


Exceed

or remitted
But Does

Compromise
Not Exceed

is
Pxxx

P5,000

5,000

15,000

accordance with the

15,000

20,000

provisions of the NIRC

20,000

50,000

P1,000
failure to remit the same in
3,000
5,000
10,000
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50,000

500,000

500,000

1,000,000

1,000,000

xxx

15,000
20,000
25,000
275
violation

Violation of any provision

Fine of not more than P1,000 or

of the National Internal


Revenue Code or any
regulation of the
Department of Finance for
which no specific penalty is

imprisonment of not more than 6


months or both

P1,000 for each

provided by law
276
property

Sale, transfer, encumbrance

Fine of not less than twice the

or any other disposition of


any property or part
thereof placed under
constructive distraint,
without the knowledge and
consent of the

value of the property sold,


encumbered or disposed of, but
not less than P5,000 or
imprisonment of not less than 2
years and 1 day but not more
than 4 years, or both

20% of the value of the

Commissioner
277

Failure to surrender
property placed under
distraint and levy

Violator is personally liable to


pay a sum equal to the value of
the property or rights not
surrendered (not exceeding the
amount of taxes due including
penalties and interest together
with costs and interests). In
addition, such violation shall be
fined in a sum of not less than
P5,000 or imprisonment for not
less than 6 months and 1 day but

P50,000

not more than 2 years, or both


278
Procuring the unlawful
be compromised
divulgence of any
public policy to allow
confidential information
confidential information,
regarding the business,
authorized under
income or inheritance of
any taxpayer; unlawfully
publishing or printing the
income, profits, losses or
expenditures appearing in

Fine of not more than P2,000 or

This violation shall not

imprisonment of not less than 6

because it is against

months nor more than 5 years, or

divulgence of

both

unless this is validly


existing law.

any income tax return


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Endnotes
1 (Popup - Popup)
Annex A

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