COMPREHENSIVE SEMINAR FOR TAPs

1. COMPREHENSIVESEMINAR FOR TAPs SUBPOENA DUCES TECUM (RMO No. 45-2010 as amended by RMO 88-2010)

2. COMPREHENSIVE SEMINAR FOR TAPs SUBPOENA DUCES TECUM Sec. 5 (C) – authority of the CIR to summon the person liable for tax or required to file a return, or any officer or employee of such person, or any person having possession or custody, or care of the books of accounts and other accounting records containing entries relating to the business of the person liable for tax, or any other person, to appear before the Commissioner or his duly authorized representative at a time and place specified in the summons and to produce such books, papers, records, or other data and to give testimony.

3. COMPREHANSIVE SEMINAR FOR TAPs SUBPOENA DUCES TECUM • Summon ordering a named party to appear before the court and produce documents or other tangible evidence ; • It is a Latin phrase meaning “ bring with you under penalty of punishment” • For the purposes of BIR, the Subpoena DucesTecum (BIR Form 1915) is part of the audit procedures • It is issued in the course of tax investigation to compel the taxpayer to produce his books of accounts and other accounting records;

4. COMPREHENSIVE SEMINAR FOR TAPs POLICIES AND PROCEDURES The Letter of Authority/checklist of requirements/access to records request were served to and received by the taxpayer; First Notice signed by the RO or GS was sent to the taxpayer ten (10) calendar days from receipt of LA; Second and Final Notice signed by the Head of Office (RDO) was sent to the taxpayer ten (10) calendar days from receipt of the First Notice

5. TAX UPDATE DISCUSSION PREPARATION/PROCESSING The Revenue Examiner shall request the issuance of SDT, attaching the record of the case Information set forth in the letter-request: date of LA and letter requests and dates of receipt by taxpayer; names/addresses of individual taxpayer or name/s and position/s of corporate officers who has/have custody over the books of accounts/records; List of books and records to be examined; taxable year subject of investigation

6. TAX UPDATE DISCUSSION PREPARATION/PROCESSING The Legal Division shall evaluate the request within two (2) working days from receipt and may: - return the case to origin for further documentation/action or - prepare the corresponding SDT Information set forth in the SDT : - Serial Number - Name of person subject of audit investigation (individual taxpayer) - Name of partner, president, general manager, branch manager, treasurer, officer-in-charge, or employee/s responsible for the custody of books of accounts and other accounting records being required for audit investigation (corporations, partnerships and associations)

7. TAX UPDATE DISCUSSION • Place, date and time of submission of books and other accounting records subject of the SDT • Date of issue of SDT (date officially signed) • LA/TVN No. • The compliance date shall be set on the 14th day from date of issuance of the SDT • The action lawyer shall prepare 3 copies of the SDT • Distribution of subpoena Original – served to the taxpayer Duplicate – attached to the docket of the case Triplicate – Revenue Examiner’s copy

8. TAX UPDATE DISCUSSION SERVICE (Rule 14, Rules of Court) Must be served within three (3) working days from receipt By whom – by the revenue officer investigating the case or by any internal revenue officer authorized for the purpose How effected – personal service by handling the original copy to the individual named therein in person or if he refuses to receive it, by tendering it to him witnessed by another revenue officer accompanying the server

9. TAX UPDATE DISCUSSION substituted service by leaving a copy of the SDT at the taxpayer’s residence with some person of suitable age/discretion residing therein by leaving a copy of the SDT at the taxpayer’s office/place of business with some competent person in charge thereof; In both instances, another revenue officer should accompany the server to act as witness.

10. TAX UPDATE DISCUSSION PROOF OF SERVICE Within three (3) working days from service of SDT, the Revenue Officer shall return to the Legal Division the duplicate copy of the SDT with the following information – name of person to whom it was served, date and time when SDT was received; name and designation of the server and witness; date indicated as compliance date of the served SDT Duly executed Affidavit of Service

11. TAX UPDATE DISCUSSION At the Legal Division the taxpayer may: Request for extension of time to submit books of accounts; Request that audit be conducted at the place of business because of voluminous records, in which case we return the docket with the request to the District Office; Submit the books/accounting records to the revenue examiner, in which case, the examiner shall prepare a memo requesting the Legal Division to return the docket; Submit the requested book and accounting records to the action Attorney, in which case, the said books and records and docket shall be returned to the District Office; Pay the compromise penalty for violation of the subpoena, after which the docket will be returned to the District Office for resumption of investigation based on best evidence obtainable (RMC No. 23-2000)

12. TAX UPDATE DISCUSSION ENFORCEMENT OF THE SDT: • In case there is failure to present the required books of accounts and other accounting records, the action lawyer assigned to the case shall request the assigned Revenue Officer for a conference; • Within seven (7) working days from said conference the action lawyer shall prepare the Letter Complaint addressed to the City Prosecutor, Affidavit Complaint and supporting evidentiary documents and route the same for review and signature; • File the case with the Office of the Prosecutor for violation of Section 5 in relation to Sections 14 and 266 of the 1997 Tax Code • Return the docket to the District office for resumption of investigation based on best evidence obtainable

13. TAX UPDATE DISCUSSION • DELAYED COMPLIANCE WITH SDT • During the pendency of the criminal action, the respondent submits the required books/accounting records and requests the dismissal of the case, the BIR may concur upon presentation of: 1. certification by the Legal Division and the Revenue Officer stating that the required books of accounts/accounting records were received, and specifically stating the date of submission; 2. receipt evidencing payment of the penalty of P 10,000.00 for delayed compliance

14. COMPREHENSIVE SEMINAR FOR TAPs WAIVER OF THE STATUTE OF LIMITATION

15. COMPREHENSIVE SEMINAR FOR TAPs Statute of Limitation refers to the 3 year period within which the BIR is allowed to assess and collect taxes. It is reckoned from the last day prescribed by law for the filling of the return (Sec. 203, Tax Code of 1997) Exceptions: In case of fraudulent return with intent to evade tax or failure to file a return, the tax may be assessed or proceeding for collection filed in court, at any time within ten (10) years after the discovery of the falsity, fraud or omission (Sec. 222 (a), Tax Code of 1997)

16. COMPREHENSIVE SEMINAR FOR TAPs In case both the Commissioner and the taxpayer have agreed in writing, that the period to issue an assessment and collect the taxes due is extended to a date certain (Section 222(b), Tax Code of 1997) This written agreement between the Commissioner and the taxpayer is the so-called Waiver of the Statute of Limitations

17. COMPREHENSIVE SEMINAR FOR TAPs Implementing Rules: Revenue Memorandum Order No. 20-90 Revenue Memorandum circular No. 6-2005 which circularizes the salient features of Supreme Court decision on waiver of statute of limitations in the case of Philippine Journalists, Inc. vs. Commissioner of Internal Revenue, G.R. No. 162852, December 16, 2004

18. COMPREHENSIVE SEMINAR FOR TAPs Salient Features of the case: A waiver of the statute of limitations must conform strictly with the provisions of RMO 20-90 in order to be valid and binding, thus: 1.1 it must specify a definite agreed date between the BIR and the taxpayer within which the former may assess and collect revenue taxes; 1.2 the waiver must be accepted by the Commissioner/ authorized representative, and the date of acceptance must be indicated;

19. COMPREHENSIVE SEMINAR FOR TAPs 1.3 the taxpayer must be furnished a copy of the waiver accepted by the BIR. To a certain extent, a waiver is a derogation of the taxpayer’s right to security against prolonged and unscrupulous investigations and must therefore be carefully and strictly construed; It is NOT a waiver of the right to invoke the defense of prescription but rather an agreement between the taxpayer and the BIR that the period to issue and assessment and collect the taxes due is extended to a date certain

20. COMPREHENSIVE SEMINAR FOR TAPs A waiver of the statute of limitations is not a unilateral act by the taxpayer or the BIR but is a bilateral agreement between the two parties.

21. COMPREHENSIVE SEMINAR FOR TAPs COMMON VIOLATIONS AND SCHEDULE OF COMPROMISE PENALTY

22. REVISEDSCHEDULEOFCOMPROMISEPENALTY CODE SEC 255 NATUREOFVIOLATION Failuretomake/file/submitany returnorsupplycorrectinformation atthetimeortimesrequiredbylaw CRIMINALPENALTYIMPOSED FineofnotlessthanP10,000and imprisonmentofnotlessthanone(1) yearbutnotmorethanten(10)years AMOUNTOFCOMPROMISE Ifgrossannualsales,earnings orreceipts;orgrossestateorgift orregulation Butdoes notexceed P10,000 20,000 30,000 50,000 75,000 100,000 300,000 500,000 1,000,000 5,000,000 10,000,000 25,000,000 xxx Compromise is P200 400 600 1,000 1,500 2,000 3,000 5,000 7,500 10,000 15,000 20,000 25,000 Exceeds Pxxx 10,000 20,000 30,000 50,000 75,000 100,000 300,000 500,000 1,000,000 5,000,000 10,000,000 25,000,000 232/235Failuretokeep/preserverecords FineofnotmorethanP1,000or Ifgrossannualsales,earningsorreceipts requiredbylaworregulations imprisonmentfornotmorethan 6months,orboth. (Sec.275,NIRC) ButDoes NotExceed P10,000 20,000 30,000 50,000 75,000 100,000 250,000 500,000 1,000,000 5,000,000 10,000,000 20,000,000 50,000,000 xxx Compromise is P200 400 600 1,000 1,500 2,000 3,000 5,000 7,500 10,000 15,000 20,000 30,000 50,000 Exceeds Pxxx 10,000 20,000 30,000 50,000 75,000 100,000 250,000 500,000 1,000,000 5,000,000 10,000,000 20,000,000 50,000,000 255 Failuretowithholdorremitwithheld FineofnotlessthanP10,000and Iftheamountoftaxnotwithheldorremitted taxesatthetimeortimesrequired bylaworregulations. imprisonmentofnotlessthanone(1) yearbutnotmorethanten(10)years Butdoes notExceed P500 1,000 2,000 5,000 7,500 10,000 15,000 20,000 30,000 50,000 100,000 500,000 1,000,000 xxx Compromise is P200 400 700 1,000 1,500 2,000 3,000 4,000 6,500 9,000 12,000 16,000 20,000 25,000 Exceeds Pxxx 500 1,000 2,000 5,000 7,500 10,000 15,000 20,000 30,000 50,000 100,000 500,000 1,000,000 Page2of10

23. REVISEDSCHEDULEOFCOMPROMISEPENALTY CODE SEC 255 NATUREOFVIOLATION Failuretorefundexcesstaxeswithheld CRIMINALPENALTYIMPOSED FineofnotlessthanP10,000and AMOUNTOFCOMPROMISE Iftheamountofexcesstaxesnotrefunded oncompensation imprisonmentofnotlessthanone(1) Exceeds Butdoes Compromise yearbutnotmorethanten(10)years notExceed P500 1,000 2,000 5,000 7,500 10,000 15,000 20,000 30,000 50,000 100,000 500,000 1,000,000 xxx is P200 400 700 1,000 1,500 2,000 3,000 4,000 6,500 9,000 12,000 16,000 20,000 25,000 Pxxx 500 1,000 2,000 5,000 7,500 10,000 15,000 20,000 30,000 50,000 100,000 500,000 1,000,000 255 Misrepresentationastoactualfiling ofreturnorstatementorwithdrawal ofreturnorstatementalreadyfiled. FinenotlessthanP10,000butnot morethanP20,000andimprisonment ofnotlessthanone(1)yearbutnot Thisviolationcannotbecompromised becauseitinvolvesfraud.Sec.204(NIRC) morethanthree(3)years 256 Anyactoromissionbyacorporation whichispenalizedundertheNIRC. FineofnotlessthanP50,000butnot morethanP100,000(inadditionto penaltysetforthorimposedonthe responsiblecorporateofficer,partner P10,000forcorporation,ortheamountof compromisepenaltysetforthinthis Scheduleforparticularactoromission, whicheverishigher. oremployee). P5,000forresponsibleofficer, partneroremployee. 257 a)Violationscommittedbyany financialofficeroranindependent CPA,oranypersonunderhis directionasfollows: 1)Willfulfalsificationofanyreportor statementonanyexaminationoraudit; renderingreports(includingexhibits, statements,etc.)notverifiedbyhim personallyorunderhissupervisionor byamemberofhisfirmorstaffin accordancewithsoundauditing practices. 2)Certificationoffinancialstatement ofabusinessenterprisecontaining anessentialmisstatementoffacts oromissionastotransactions,taxable income,deductionandexemptionofa client. b)Violationscommittedbypersons whoarenotCPAs- FineofnotlessthanP50,000butnot morethanP100,000and imprisonmentofnotlessthan 2yearsbutnotmorethan6years. (iftheoffenderisaCPA,hiscertificate shallautomaticallyberevokedor cancelleduponconviction.) FineofnotlessthanP50,000butnot morethanP100,000andimprisonmentof notlessthan2yearsbutnotmore than6years.Incaseofforeigners, convictionunderthisCodeshallresult inhisimmediatedeportationafter servingsentencewithoutfurther proceedingsfordeportation. Page3of10 Thisviolationcannotbecompromised becauseitinvolvesfraud. (Sec.204,NIRC) Thisviolationcannotbecompromised becauseitinvolvesfraud. (Sec.204,NIRC)

24. REVISEDSCHEDULEOFCOMPROMISEPENALTY CODE SEC NATUREOFVIOLATION 1)Examinationandauditofbooks CRIMINALPENALTYIMPOSED AMOUNTOFCOMPROMISE P25,000 ofaccountsoftaxpayers; 2)Offeringtosignandcertifying financialstatementswithoutaudit; 3)Offersanytaxpayertheuseof accountingorbookkeepingrecords forinternalrevenuepurposesnot inconformitywiththerequirements intheCodeandregulations; 4)Knowinglymakingfalseentryor entersanyfalseorfictitiousnamein thebooksofaccountsmentionedin theprecedingparagraphs; 5)Keepingoftwoormoresetsof suchrecordsorbooksofaccounts; 6)Inanywaycommitsanactor omissioninviolationoftheprovisions ofSec.257,NIRC;or 7)(i)Failuretokeepbooksofaccounts orrecordsinanativelanguage,English P25,000 P25,000 Thisviolationcannotbecompromised becauseitinvolvesfraud.Sec204NIRC Thisviolationcannotbecompromised becauseitinvolvesfraud.Sec204NIRC P1,000orthecompromisepenalty setforthinthisScheduleforthe particularactoromission,whicheveris higher;or,cannotbecompromisedifit involvesfraud. Ifgrossannualsalesearnings orreceipts orSpanishormakeatrueandcomplete ButDoes Compromise Exceeds translation. NotExceed 10,000 20,000 30,000 50,000 75,000 100,000 250,000 500,000 1,000,000 5,000,000 10,000,000 20,000,000 50,000,000 xxx is 200 400 600 1,000 1,500 2,000 3,000 5,000 7,500 10,000 15,000 20,000 30,000 50,000 Pxxx 10,000 20,000 30,000 50,000 75,000 100,000 250,000 500,000 1,000,000 5,000,000 10,000,000 20,000,000 50,000,000 (ii)Wherebookskeptinanative language,EnglishorSpanisharefound tobeatmaterialvariancewithbookskept inanotherlanguage. Thisviolationcannotbecompromised becauseitinvolvesfraud.(Sec.204NIRC) 8)Willfulattempttoevadeordefeatany taximposedundertheCodeorknowingly usesfakeorfalsifiedRevenueOfficial Receipts,LettersofAuthority,Certificates FineofnotlessthanP50,000butnot morethatP100,000andsuffer imprisonmentofnotlessthantwo(2) yearsbutnotlessthansix(6)years. Thisviolationcannotbecompromised becauseitinvolvesfraud.(Sec.204NIRC) AuthorizingRegistration,TaxCredit Certificates,TaxDebitMemorandaand otherAccountableForms. Page4of10

25. REVISEDSCHEDULEOFCOMPROMISEPENALTY CODE SEC 232 NATUREOFVIOLATION Failuretohavebooksofaccounts CRIMINALPENALTYIMPOSED FineofnotmorethanP1,000or AMOUNTOFCOMPROMISE Ifgrossannualsalesearningsorreceipts auditedandhavethefinancial statementsattachedtothe imprisonmentofnotmorethan 6months,orboth. Exceeds ButDoes NotExceed Compromise is incometaxreturncertifiedbyan (Sec.275,NIRC) P25,000P200,000P2000 independentCPAdulyaccreditedbythe BIR foranyone quarter fortheyear 200,000 500,000 1,000,000 5,000,000 10,000,000 25,000,000 500,000 1,000,000 5,000,000 10,000,000 25,000,000 xxx 4,000 6,000 10,000 15,000 20,000 25,000 90 Failuretohavethestatementofassets ofthedecedentandthedeductions FineofnotmorethanP1,000or imprisonmentofnotmorethan Ifthegrossestate fromgrossestatecertifiedbyan independentCPAdulyaccreditedbythe 6months,orboth. (Sec.275,NIRC) ButDoes NotExceed Compromise is Exceeds BIR P 50,000 P200,000 P2,000 200,000 500,000 1,000,000 5,000,000 10,000,000 25,000,000 50,000,000 500,000 1,000,000 5,000,000 10,000,000 25,000,000 50,000,000 xxx 3,000 5,000 7,500 10,000 20,000 25,000 50,000 259 260 Illegalcollectionofforeignpayments- collectionofforeignpaymentsunder Sec.67,NIRCwithoutanylicenseor inviolationofimplementingregulations Unlawfulpossessionofcigarettepaper inbobbinsorrolls,cigarettetipping paperorcigarettefiltertips. FineofnotlessthanP20,000but notmorethanP50,000and imprisonmentofnotlessthan1year butnotmorethan2years FineofnotlessthanP20,000but notmorethanP100,000and imprisonmentofnotlessthan P20,000 P100,000 6yearsand1daybutnotmore than12years. 261 Unlawfuluseofdenaturedalcohol FineofnotlessthanP20,000but P100,000 notmorethanP100,000and imprisonmentofnotlessthan 6yearsand1daybutnotmore than12years. 261 262 FineofnotlessthanP20,000but notmorethanP100,000and imprisonmentofnotlessthan 6yearsand1daybutnotmore than12years. FineofnotlessthanP20,000but notmorethanP100,000and imprisonmentofnotlessthan 6yearsand1daybutnotmore P100,000 P100,000 Unlawfulrecoveryorattempt torecoverbydistillationorother processanydenaturedalcoholorwho knowinglydisposesalcoholsorecovered orredistilled Shipmentorremovalofliquoror tobaccoproductsunderfalsename orbrandorasanimitationofany existingnameorbrand. than12years. Page5of10

26. REVISEDSCHEDULEOFCOMPROMISEPENALTY CODE SEC 263 NATUREOFVIOLATION a)Unlawfulpossessionorremoval ofimportedarticlessubjectto excisetaxwithoutpaymentoftax. CRIMINALPENALTYIMPOSED Iftheappraisedvalueof thearticleunderthe TariffandCustomsCode AMOUNTOFCOMPROMISE Compromiseallowableona casetocasebasis. (TCC)- ValueDoes Penalty Exceeds NotExceed is xxx P1,000Fine:P1,000-2,000 2,000* andimprisonmentofnotlessthan60days butnotmorethan100days 1,000 50,000Fine:P10,000-20,000 20,000* andimprisonmentofnotlessthan2yrs butnotmorethan4years 50,000 150,000Fine:P30,000-60,000 60,000* andimprisonmentof4yearsbutnotmore than6yrs 150,000xxx Fine:50,000-100,000 100,000* andimprisonmentofnotlessthan10 yearsbutnotmorethan12years *Plusforfeitureoftheuntaxedarticle 263 b)Unlawfulpossessionoflocally manufacturedarticlessubjecttoexcise taxwithoutpaymentofthetax. Fineofnotlessthan10timesthe amountofexcisetaxduebutnotless thanP500andimprisonmentofnot P100,000plusforfeitureoftheuntaxedarticle lessthantwo(2)yrsbutnotmorethan four(4)yrs 263 c)Unlawfulremovalofuntaxedarticles subjecttoexcisetaxfromtheplace ofproduction. P100,000plusforfeitureoftheuntaxedarticle Fineofnotlessthan10timesthe amountofexcisetaxduebutnotless thanP1,000andimprisonmentofnot lessthanone(1)yrbutnotmorethan twoyearsyrs 2(2) 264 Specific Violation a)Forfailureto First Offense P10,000 Second Offense P20,000 a)Failureorrefusaltoissuereceiptsor salesorcommercialinvoices;issuing receiptsorinvoicesnottrulyreflecting FineofnotlessthanP1,000butnot morethanP50,000andimprisonment ofnotlessthan2yearsbutnotmore and/orcontainingallinformationrequired thereinorusingmultipleordouble receiptsorinvoices. than4years issuereceipts orsalesor salesor commercial invoices b)Forrefusalto issuereceipts orsalesor commercial invoices P25,000 P50,000 Page6of10

27. REVISEDSCHEDULEOFCOMPROMISEPENALTY CODE SEC NATUREOFVIOLATION CRIMINALPENALTYIMPOSED AMOUNTOFCOMPROMISE P20,000 P50,000 Ifthe information missingisthe correctamount ofthe transaction c)Forissuance ofreceiptsthat donottruly reflectand/or containallthe information requiredtobe showntherein. Ifthe P5,000 P20,000 P10,000 P50,000 duplicatecopy oftheinvoiceis blankbutthe originalcopy thereofis detachedfrom thebookletand cannotbe accountedfor IftheamountofNotqualifiedforcompromise thetransaction statedinthe taxpayer'scopy isunderstated versusthe amountper copyofthe invoiceissueto thepurchaser d)(i)Foruseof unregistered receiptsor invoices (ii)Useof unregistered cashregister machinesinlieu ofinvoicesor receipts P20,000 P25,000/unit P50,000 P50,000/unit e)For possessionor useofmultiple ordouble receiptsor invoices Notqualifiedforcompromise Page7of10

28. REVISEDSCHEDULEOFCOMPROMISEPENALTY CODE SEC NATUREOFVIOLATION CRIMINALPENALTYIMPOSED AMOUNTOFCOMPROMISE f)Forprintingor causing,aiding orabettingthe printingof: 1)Receiptsor invoiceswithout authorityfrom theBIR P25,000 P50,000 Notqualifiedforcompromise 2)Doubleor multiplesetsof receiptsor invoices 3)Receiptsor invoicesnotbearing anyofthefollowing: a.Consecutivenumbers b.NameofTaxpayer c.BusinessStyle d.Businessaddress ofthepersonorentity tousethesame e.TINNo. f.Name,address,date, authorityno.ofthe printerandinclusive serialnumbersofthe batchorreceipts printed P20,000 P50,000 275 Forfailureoftheprintertosubmit FineofnotmorethanP1,000or P5,000 P10,000 therequiredquarterlyreportunder Sec.238oftheTaxCode,asamended. imprisonmentofnotmorethan 6monthsorboth 265 Offensesrelatingto internalrevenuestamps- 1)Making,importing,selling,usingor possessingwithoutexpressauthority fromtheCommissioneranydyefor printingormakingstamps,labeltags orplayingcards. 2)Erasingthecancellationmarksof anystampspreviouslyusedoraltering thewrittenfiguresorletters,or cancellingmarksoninternalrevenue stamps. 3)Possessionoffalse,counterfeit, restoredoralteredstamps,labels, ortags,orcausesthecommission ofanysuchoffensebyanother. FineofnotlessthanP20,000butnot morethanP50,000andimprisonment fornotlessthan4years butnotmorethan8years FineofnotlessthanP20,000butnot morethanP50,000andimprisonment fornotlessthan4years butnotmorethan8years FineofnotlessthanP20,000butnot morethanP50,000andimprisonment fornotlessthan4years butnotmorethan8years Page8of10 P20,000 Thisviolationcannotbecompromised becauseitinvolvesfraud. Sec.204NIRC Thisviolationcannotbecompromised becauseitinvolvesfraud. Sec.204NIRC

29. REVISEDSCHEDULEOFCOMPROMISEPENALTY CODE SEC NATUREOFVIOLATION 4)Sellingorofferingforsaleanybox orpackagecontainingarticlessubject toexcisetaxwithfalse,spuriousor counterfeitstampsorlabelsorsells CRIMINALPENALTYIMPOSED FineofnotlessthanP20,000butnot morethanP50,000andimprisonment fornotlessthan4years butnotmorethan8years AMOUNTOFCOMPROMISE Thisviolationcannotbecompromised becauseitinvolvesfraud. Sec.204NIRC fromanysuchfraudulentbox,package, orcontainerasaforesaid. 5)Givingawayoracceptingfrom anotherorsells,buys,oruses containersonwhichthestampsare notcompletelydestroyed. FineofnotlessthanP20,000butnot morethanP50,000andimprisonment fornotlessthan4years butnotmorethan8years P50,000 266 Failuretoobeysummons;totestify; FineofnotlessthanP5,000butnot FirstOffense: P10,000 ortoappearandproducebooksof morethanP10,000andimprisonment accounts,records,etc.ortofurnish informationrequiredundertheNIRC. fornotlessthanone(1)yrbutnot morethantwo(2)yrs SecondOffense: P20,000 268 Misdeclarationormisrepresentationby manufacturersofarticlessubjectto excisetaxunderTitleIV,NIRC,orany pertinentdataorinformationrequired Summarycancellationorwithdrawal ofpermittoengageinbusinessasa manufacturerofarticlessubjectto excisetax. Thisviolationcannotbecompromised becauseitinvolvesfraud. (Sec.204,NIRC) therein. 272 Failureofgovernmentofficeroremployee chargedwiththedutytodeductand withholdanyinternalrevenuetaxand Fineofnotlessthan P5,000normorethanP50,000 orimprisonmentofnotlessthan6 Iftheamountoftaxnot withheldorremitted- failuretoremitthesameaccordance withtheprovisionsoftheNIRC. Violationofanyprovisionofthe monthsand1daybutnotmorethan 2years,orboth. FineofnotmorethanP1,000or Exceed P xxx 500 1,000 2,000 5,000 10,000 15,000 20,000 30,000 50,000 100,000 500,000 1,000,000 ButDoes NotExceed P500 1,000 2,000 5,000 10,000 15,000 20,000 30,000 50,000 100,000 500,000 1,000,000 xxx P1,000 Compromise is P200 400 700 1,000 2,000 3,000 4,000 6,000 9,000 12,000 16,000 20,000 25,000 275 NationalInternalRevenueCodeorany regulationoftheDepartmentofFinance forwhichnospecificpenaltyisprovided bylaw. imprisonmentofnotmorethan6 monthsorboth 276 Sale,transfer,encumbranceorany otherdispositionofanypropertyorpart thereofplacedunderconstructive distraint,withouttheknowledgeand consentoftheCommissioner. Fineofnotlessthantwicethevalue ofthepropertysold,encumbered ordisposedof,butnotlessthan P5,000orimprisonmentofnotless than2yearsand1daybutnot 20%ofthevalueoftheproperty morethan4years,orboth Page9of10

30. REVISEDSCHEDULEOFCOMPROMISEPENALTY CODE SEC 277 NATUREOFVIOLATION Failuretosurrenderpropertyplaced underdistraintandlevy. CRIMINALPENALTYIMPOSED Violatorispersonallyliabletopaya sumequaltothevalueoftheproperty AMOUNTOFCOMPROMISE P50,000 orrightsnotsurrendered(not exceedingtheamountoftaxesdue includingpenaltiesandinterest togetherwithcostsandinterests). Inaddition,suchviolationshallbe finedinasumofnotlessthan P5,000orimprisonmentfornotless than6monthsand1daybut notmorethan2years,orboth. 278 ProcuringtheunlawfuldivulgenceofanyFineofnotmorethanP2,000or Thisviolationshouldnotbecompromised confidentialinformationregardingthe business,incomeorinheritanceof anytaxpayer;unlawfullypublishingor printingtheincome,profits,lossesor imprisonmentofnotlessthan 6monthsnormorethan5years, orboth. becauseitisagainstpublicpolicyto allowdivulgenceofconfidentialinformation, unlessthisisvalidlyauthorizedunder existinglaw. expendituresappearinginanyincome taxreturn Page10of10