"ANNEX A-2"

SCHEDULES OF PENALTIES

NATURE OF VIOLATIONS PENALTIES

A. PROCEDURAL ERRORS/VIOLATIONS

1. Failure to Submit Consolidated Report of Daily P 200.00 per day but not to exceed 25% of tax collected
Collection (CRDC) within the prescribed period

2. Failure to Transmit Collection Data processed P 200.00 per day but not to exceed 25% of tax collected
under LBDES and EFPS within the prescribed
period
3. Submission of Incomplete / Inaccurate Reports, P 200.00 per BCS but not to exceed 25% of the tax
such as but not limited to the following: collected
3.1 No Bank Code in BCS / Incorrect
numbering
3.2 No tax type indicated
3.3 No date of collection
3.4 Unmatched BCS information with actual
returns
- different TIN/s no TIN of TP
3.5 BCS total amount do not tally with total
amount from documents
3.6 No signature of authorized bank official

4. Acceptance/Submission of Tax Returns with Equal to or less than 10 errors per BCS - No Penalty, But
incomplete data: in excess of 10 errors - P 200.00 per erroneous return
4.1 No Signature of Taxpayer/Authorized received
Representative
4.2 No Name of Taxpayer
4.3 No TIN
4.4 No Machine Validation / Transaction
Receipt for Efficient Service Machine (ESM)

4.5 Payment on return differs from payment

on Collection and Bank Reconciliation (CBR)

4.6 Returns submitted without corresponding

BCS
5. Acceptance of Checks P1,000 per check
5.1 Not in accordance with RR 16-2002
5.2 Invalid or Dishonored checks due to error
of the bank
B. Remittance Violations
1. Late Remittance (shall mean full remittance Prevailing interbank borrowing rate + 5% until the total
after due date provided the delay shall not exceed amount and increments are fully paid
15 days from due date)
 NATURE OF VIOLATIONS
2. Under remittance (shall mean any of the
following but not limited to:
a. remittance beyond 15 days from due date
whatever the circumstance;
b. remittance based on BIR notice of
discrepancy (e. g. BSP list of remittance vs
CRDC, BCS vs CRDC, taxpayer’s complaint
of non-remittance of payment).
3. Non-Remittance (shall mean no remittance is
made)
C. Non-Compliance with AABs obligation stated in
2.1 of the MOA
1. 1st Offense supported by written complaint of
Taxpayer, RDO and other concerned party
2. 2nd Offense
rd
3. 3 Offense
4. 4th Offense
th
5. 5 Offense
6. More than five (5) offenses
D. Non-Payment of Penalties within the prescribed Referred to Bank Accreditation Committee (BAC) for
period as stated in the Notice
PENALTIES
Double the amount of under-remittance + 25% surcharge
+ 1/4 of 1% interest per day but shall not be less than
prevailing interbank rate + 5% until the total amount and
increments are fully paid
Double the amount of under-remittance + 25% surcharge
+ 1/4 of 1% interest per day but shall not be less than
prevailing interbank rate + 5% until the total amount and
increments are fully paid; plus disaccreditation of bank
branch and criminal liability in accordance with _____.
Reminder Letter to AAB-Branch copy furnished AAB-
Head Office
P1,000 per verified violation per branch
P3,000 per verified violation per branch
P5,000 per verified violation per branch
Warning and suspension for thirty (30) days per branch
Referred to Bank Accreditation Committee (BAC) for
disaccreditation of the branch
disaccreditation of the branch