Report On Violations (RMO 15-2018)

Annex “F”
Taxpayer’s Registered Name :_________________________________________ TIN and Branch Code :_____________________________________________
Taxpayer’s Registered Name :_________________________________________ Mission Order

Branch
Nos. :_________________________________________ Date Return
Business/Tradename :_________________________________________ Date of Mission
TIN and
Order
Branch Code :_________________________________________ Date Compl
Address :_________________________________________ Date Reviewed
INITIAL REPORT OF COMMITTED VIOLATIONS BY TAXPAYER AND THE CORRESPONDING COMPROMISE PENALTIES
COMPROMISE
DETAILS OF
CODE PENALTIES
VIOLATIONS
SEC/ COMMITTED Per
LIST OF VIOLATIONS CRIMINAL PENALTY COMPROMISE PENALTY
LEGAL Review
BASIS Main Branch
Per RO
A. Registration Requirements
Failure to Register (includes branch/other line of Fine of not less than P5,000 If the subject establishment is located in
business/facility) but not more than P20,000 the following:
and imprisonment of not less a. Cities 20,000*
than 6 months but not more b. 1st class municipalities 10,000*
236/258
than 2 years c. 2nd class municipalities 5,000*
d. 3rd class municipalities 2,000*
* Penalties provided are inclusive of all other
violations
Failure to Pay & Display the Annual Registration Fee Fine of not more than 1,000 or P 1,000
236/275 (BIR Form 0605) imprisonment of not more
than 6 months (Sec. 275, NIRC)
Failure to pay annual registration fee by a person Fine of not less than P30,000
a. Cities 30,000
engaged in the business of distilling, rectifying, but not more than P50,000
b. 1st class municipalities 20,000
258 repacking, compounding or manufacturing article and suffer imprisonment of
c. 2nd class municipalities 15,000
subject to excise tax not less than 2 years but not
d. 3rd class municipalities 10,000
more than 4 years
236/275 No Certificate of Registration displayed Fine of not more than 1,000 or P 1,000
imprisonment of not more
Page 1 of 12
______________________ __________________________________
Revenue Officers Team Head/Group Leader/Coordinator
Annex “F”
than 6 months (Sec. 275, NIRC)
B. Invoicing Requirements

236/275 Failure to display the poster "Ask for Fine of not more than 1,000 or P 1,000
BIR Receipt" or "Notice to the Public to demand imprisonment of not more
receipts / invoice" than 6 months, or both. (Sec
275, NIRC)
Failure to attach or paste authorized sticker/DECAL P 1,000

authorizing the use of CRM/POS/CAS
236/275 Failure to present application form (BIR Form 1900 and Fine of not more than 1,000 or P 1,000 per unit
1905) to use registered sales books/permit to use loose imprisonment of not more
leaf sales books than 6 months, or both. (Sec
275, NIRC)
a) Failure or refusal to issue receipts or sales or Fine of not less than P1,000 First Second
Specific Violation
commercial invoices; issuing receipts invoices but not more than P50,000 Offense Offense
not truly reflecting and/or containing all and imprisonment of not less a) For failure to issue P 10,000 P 20,000
information required therein or using multiple than four (4) years receipts or sales or Subsequent violations
or double receipts or invoices sales or commercial shall not be subject to
invoices compromise.
P 25,000 P 50,000
b) For refusal to issue
receipts or sales or Subsequent violations
commercial invoices shall not be subject to
264 compromise.
If the information P 20,000 P 50,000
missing is the correct Subsequent violations
amount of the shall not be subject to
transaction compromise.
c) For issuance of P 5,000 P 10,000
receipts that do not
truly reflect and/or Subsequent violations
contain all the shall not be subject to
information required compromise.
to be shown therein
Page 2 of 12
______________________ __________________________________
Annex “F”
If the duplicate copy P 20,000 P 50,000

of the invoice is blank
but the original copy
thereof is detached Subsequent violations
from the booklet and shall not be subject to
cannot be accounted compromise.
for
If the amount of the
transaction stated in
the taxpayer’s copy is
Not qualified for
understated versus
compromise
the amount per copy
of the invoice issue to
the purchaser
P 20,000 P 50,000
d) (i) For use of
unregistered receipts Subsequent violations
or invoices shall not be subject to
compromise.
(ii) Use of
P25,000/unit P50,000/unit
unregistered cash
Subsequent violations
register machines in
shall not be subject to
lieu of invoices or
compromise.
receipts
e) For possession or
use of multiple or Not qualified for
double receipts or compromise
invoices
f) For printing or
causing, aiding or

abetting the printing
of:
P 25,000 P 50,000
1) Receipts or invoices
without authority Subsequent violations
from the BIR shall not be subject to
compromise.
2) Double or multiple Not qualified for
sets of receipts or compromise
Page 3 of 12
______________________ __________________________________
Annex “F”
invoices
P 20,000 P 50,000
3) Receipts or invoices
bearing any of the Subsequent violations
following: shall not be subject to
compromise.
a. Consecutive
numbers
b. Name of Taxpayer
c. Business Style
d. Business address of
the person or entity to
use the same
e. TIN
f. Name, address,
date, authority no. of
the printer and
inclusive serial
numbers of the batch
or receipts printed
Failure of the printer to submit the required Fine of not more than P1,000
quarterly report (Sec. 238, NIRC) or imprisonment of not more First Offense Second Offense
238/275 than 6 months or both P 5,000 P 10,000
Subsequent offenses shall be considered as willful
failure, and thus not subject to compromise.
RMO Use of receipts/ invoices other than where it is
9-2006 registered
Sec. 2, Failure to present PCD, Sworn Statement, & ATP during P1,000
RR 26- Inspection
2003
(REVENUE REGULATIONS NO. 26-2003 Section 2. In lieu
of the usual stamping of the BIR registration on every
booklet of manually-printed receipts and invoices to
confirm or signify registration thereof, the printer
indicated in the BIR duly approved “Authority to Print
Receipts and/or Invoices” (ATP) shall issue to the
taxpayer a duly stamped BIR-registered “Printer’s
Certificate of Delivery of Receipts and Invoices” (PCD)--
Page 4 of 12
______________________ __________________________________
Annex “F”
Annex “A” for printed receipt and invoices which shall

be made available and ready for inspection anytime by
duly authorized revenue personnel. Consequently,
manually-printed receipts/invoices are deemed duly
registered receipts or invoices as required under Section
237 of the National Internal Revenue Code of 1997 only
if they are covered by a duly approved and issued
“Authority to Print Receipts and/or Invoices” and BIR-
registered “Printer’s Certificate of Delivery or Receipts
and Invoices.”)
C. Bookkeeping Requirements
Failure to keep/preserve records required by law or Fine of not more than P1,000
regulations or imprisonment for not more
232/235
than (six) 6 months, or both.
(Sec. 275, NIRC)
Sec 10.1.1 Failure to register Books of Accounts
of RR 11-
2004 (Revenue Regulations No. 11-2004. Section 10.1.1—A
duly registered cash register sales book shall be
maintained for each machine used, showing the
columns required under Section 2.3 of RR No 10-99)
Failure to keep Books of Accounts at the place of
business.
(Revenue Regulations No. 11-2004. Section 10.1.4—The

subsidiary cash register sales book shall be kept at all
times at the place where the CRM is located, and shall
Sec. be available at any time for verification by duly
10.1.4 of authorized internal revenue officers. All accounting
RR records shall be preserved for a period within which the
11-2004 Commissioner is authorized to make an assessment and
collection of the taxes so assessed as prescribed in
Sections 203 and 222 of the NIRC, as amended.
Sec 10.1 Failure to make daily entries in the Books of Accounts
of RR
11-2004 (Revenue Regulations No. 11-2004. Section 10.1—For
users of Cash Register Machines 10.1.1 A duly registered
cash register sales book shall be maintained for each
Page 5 of 12
______________________ __________________________________
Annex “F”
machine used, showing the columns required under

Section 2.3 of RR No. 10-99; 10.1.2 No CRM be
operated… xxx)
Failure to register CRM Sales Books or its equivalent
(Revenue Regulations No. 11-2004. Section 10.1—For

users of Cash Register Machines 10.1.1 A duly registered
cash register sales book shall be maintained for each
machine used, showing the columns required under
Section 2.3 of RR No. 10-99; Revenue Regulations No. 11-
2004. Section 10.1.4 The subsidiary cash register sales
books shall be kept at all times at the place where the
CRM is located, and shall be available at any time for
verification by duly authorized internal revenue officers.
All accounting records shall be preserved for a period
within which the Commissioner is authorized to make
an assessment and collection of the taxes so assessed
RR as prescribed in Section 203 and 222 of the NIRC, as
11-2004 amended.)
D. CRM/POS Requirements
Incomplete information in the tape receipts
(Revenue Regulations 11-2004. Section 11 Summary List

of Machines Sold—All machines
distributor/dealer/vendor shall submit electronically (e-
mail or web) to the LTAD 1 or II/LTDO (for Large
Sec 11 RR Taxpayers) or to the RDO concerned (for Regular
11-2004 taxpayers), a Summary List of Machines Sold (Annex C),
within fifteen (15) days from the end of each taxable
quarter. The Summary List shall provide the following
information: a) Machine accreditation-registration
number; b) BIR Issued Provisional Permit Number; c)
Brand and Model of the machine; d) Date of sale; e)
Date of registration)
Sec 264/ Use of Unregistered CRM/POS or similar devices
RMO
19-2007 (See Invoicing Requirements)
Sec 12 Failure to register CRM as Cash Depository only
Page 6 of 12
______________________ __________________________________
Annex “F”
(Revenue Regulations 11-2004. Section 11-2004. Section

12 Cash register Machines Used for Internal Control—
Any proprietor, owner or operator of a business
establishment may use a register or POS machine of any
type for “internal control purpose”, Provided that, duly
registered sales invoices or receipts are issued for every
sale. However, such proprietor, owner or operator shall
first notify the machine distributor/dealer/vendor of his
intention to use the machine solely for “internal
control” purposes. The machine
distributor/dealer/vendor shall likewise inform the
appropriate Bureau office of such intention, and shall
secure a poster from the said Office which shall be
securely attached at the back of the machine
RR conspicuous to the public, showing the following
11-2004 qualifier…xxx)
Cash Depository CRM is used for issuing sales
receipts/invoices
(Revenue Regulations 11-2004. Section 11-2004. Section

12 Cash register Machines Used for Internal Control—
Any proprietor, owner or operator of a business
establishment may use a register or POS machine of any
type for “internal control purpose”, Provided that, duly
registered sales invoices or receipts are issued for every
Sec 12 sale. However, such proprietor, owner or operator shall
RR first notify the machine distributor/dealer/vendor of his
11-2004 intention to use the machine solely for “internal
control” purposes. The machine
distributor/dealer/vendor shall likewise inform the
appropriate Bureau office of such intention, and shall
secure a poster from the said Office which shall be
securely attached at the back of the machine
conspicuous to the public, showing the following
qualifier…xxx)
Sec. Failure to provide CRM with two roller tapes
2.5
Page 7 of 12
______________________ __________________________________
Annex “F”
(Revenue Regulations 10-99. Section 2.5 Condition for

the Issuance of the Permit—The Permit to use cash
register and POS machines shall be granted subject to
the following conditions: a) The machine shall be used
exclusively in the operation of only one line of business
covered by the permit. If the business is conducted
simultaneously with another line of business for which
no cash register permit is issued, sales made in such
business shall be covered with the corresponding
issuance of registered sales invoices or receipts; b) The
machine should be equipped with two (2) rollers or its
equivalent, one for the audit journal tape intended for
audit and internal revenue purpose and the other for
the customer’s tape which are issued as itemized and
consecutively numbered receipts, PROVIDED, THAT, all
tapes issued is of a quality that could be preserved for a
RR 10-99 period of within which the Commissioner is authorized
to make an assessment and collection of the taxes so
assessed as prescribed in Section 203 and 222 of
National Internal Revenue Tax Code, as amended; c)
When the machines is punched for the purpose of
recording a sale, amount of sales should automa….)
Failure to notify the Revenue District Officer regarding
the transfer/repair/upgrading/status of machines of
CRM/POS and other Similar Devices
Sec (Revenue Regulations 11-2004. Section 10.3.5 A machine

10.3.5 RR who has been issued a Permit to Use CRM/POS Machine
11-2004 shall not have the machine required, upgraded,
changed, modified, updated, or otherwise removed
from its specified location, without prior written notice
to the proper Bureau office having jurisdiction over the
principal place of business of the proprietor.)
Sec Use of CRM/POS or similar devices in a place other than
10.3.4 RR specified in the permit
11-2004
(Revenue Regulations 11-2004. Section 10.3.4 The
machine user shall not change his business name or the
Page 8 of 12
______________________ __________________________________
Annex “F”
use of the registered machine, or transfer to another

business location, branch or establishment or
otherwise, without prior written notice to the bureau
office having jurisdiction over the principal place of
business of the proprietor.)
E. Compliance Requirements
250 Failure to make, file, or submit the complete quarterly One Thousand Pesos (₱1,000) for each failure to
Summary Lists of Sales and Purchases-Local &Imported make, file, or submit the said information returns.
(SLSP) or supply correct and accurate information Provided, however, that the aggregate amount to
therein at the time or times required by the Tax Code, as be imposed for such failures during a calendar year
amended, or other existing rules and regulations shall not exceed Twenty-Five Thousand Pesos (₱
25,000).
For this purpose, failure to supply the required

information for each buyer or seller of goods and
services shall constitute a single punishable act or
omission pursuant to Revenue Memorandum
Circular (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
(b) non-submission in the format prescribed.
Complete Summary Lists refers to the set of
Summary Lists of Sales (SLS) and Summary Lists of
Page 9 of 12
______________________ __________________________________
Annex “F”
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 non-submission. 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.
Failure to make, file or submit information returns, One Thousand Pesos (₱1,000) for each information
schedules, reports, sworn statements, certifications return, schedule, report, sworn statement,
and other documents, (except quarterly SLS/P/I, certification and other document not made, filed
and the Annual Alpha List of Payees and/or the Annual or submitted, or for each
250
Alpha List of Employees subjected to withholding record not maintained. Provided, however, that
taxes), or keep any record required by the Tax Code, as the aggregate amount to be imposed for
amended, or other existing rules and regulations such failures during a calendar year shall not
exceed Twenty Five Thousand Pesos (₱25,000).
Failure to supply correct and accurate information in the One Thousand Pesos (₱1,000) for each incorrect or
information returns, schedules, reports, sworn erroneous information supplied in the information
statements, certifications and other documents (except return, schedule, report, sworn statement,
quarterly SLS/P/I, and the Annual Alpha List of Payees certification and other document. Provided,
250
and/or the Annual Alpha List of Employees subjected to however, that the aggregate amount to be
withholding taxes) required by the Tax Code, as imposed for such failures during a calendar year
amended, or other existing rules and regulations shall not exceed Twenty Five Thousand Pesos
(₱25,000).
255 Failure to make, file or submit the required Fine of not less than Ten “Willful failure” implies fraud which cannot be
complete SLS/P, in the prescribed Thousand Pesos (₱10,000) and compromised.
format at the time or times required by the Tax Code, as imprisonment of not less than
amended, or other existing rules and regulations. one (1) year but not more than
ten (10) years
Page 10 of 12
______________________ __________________________________
Annex “F”
Failure to make, file or submit for at least:

• two (2) times in a taxable year, in the
case of complete SLS/P
in the prescribed format at
the time or times required by the Tax Code constitutes
willful failure and cannot be compromised.

F. Other violations committed, if any:
1. ____________________
2. _____________________
3. ___________________
TOTAL SUGGESTED COMPROMISE PENALTIES
OTHER OBSERVATIONS/CONCERNS:
1. _____________________________________________________________________________________________________________________________________________________________
2. _____________________________________________________________________________________________________________________________________________________________
3. _____________________________________________________________________________________________________________________________________________________________
Attached Documents:
1. Revenue Special Order (RSO);
2. Mission Order;
3. Letter to Taxpayer;
4. Post-Evaluation Guide Form;
5. Letter to the Police/Barangay;
6. Sworn Statement;
7. Z-Reading (front-end and back-end);
8. eSales Journal;
9. CD/DVD R’
10. Apprehension Slip; and
11. Others
Prepared by: Submitted by:

Page 11 of 12
______________________ __________________________________
Annex “F”
____________________________ ________________________________
Revenue Officers/Team Members Team Head/Group Leader/Coordinator
Page 12 of 12
______________________ __________________________________

Report On Violations (RMO 15-2018)

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Annex “F”

Taxpayer’s Registered Name :_________________________________________ TIN and Branch Code :_____________________________________________

Taxpayer’s Registered Name :_________________________________________ Mission Order

than 6 months (Sec. 275, NIRC)

B. Invoicing Requirements

Failure to attach or paste authorized sticker/DECAL P 1,000

If the duplicate copy P 20,000 P 50,000

Annex “A” for printed receipt and invoices which shall

(Revenue Regulations No. 11-2004. Section 10.1.4—The

machine used, showing the columns required under

(Revenue Regulations No. 11-2004. Section 10.1—For

(Revenue Regulations 11-2004. Section 11 Summary List

(Revenue Regulations 11-2004. Section 11-2004. Section

(Revenue Regulations 11-2004. Section 11-2004. Section

(Revenue Regulations 10-99. Section 2.5 Condition for

Sec (Revenue Regulations 11-2004. Section 10.3.5 A machine

use of the registered machine, or transfer to another

For this purpose, failure to supply the required

Notwithstanding the foregoing, failure on the part

(a) failure to submit for at least:

Purchases (SLP). In the case of those with

Thus, submission of incomplete lists, including the

Non-compliance with a duly issued Subpoena

Failure to make, file or submit for at least:

TOTAL SUGGESTED COMPROMISE PENALTIES

Prepared by: Submitted by:

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Taxpayer’s Registered Name :_ TIN and Branch Code :_____