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COMMON VIOLATIONS AND SCHEDULE OF COMPROMISE PENALTY

COMMON VIOLATIONS AND SCHEDULE OF COMPROMISE PENALTY. REVISED SCHEDULE OF COMPROMISE PENALTY. CODE SEC 255. NATURE OF VIOLATION Failure to make/file/submit any return or supply correct information at the time or times required by law. CRIMINAL PENALTY IMPOSED

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COMMON VIOLATIONS AND SCHEDULE OF COMPROMISE PENALTY

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  1. COMMON VIOLATIONS AND SCHEDULE OF COMPROMISE PENALTY

  2. 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

  3. 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)

  4. 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

  5. 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 Unlawfulrecoveryorattempt torecoverbydistillationorother processanydenaturedalcoholorwho knowinglydisposesalcoholsorecovered orredistilled Shipmentorremovalofliquoror tobaccoproductsunderfalsename orbrandorasanimitationofany existingnameorbrand. FineofnotlessthanP20,000but notmorethanP100,000and imprisonmentofnotlessthan 6yearsand1daybutnotmore than12years. FineofnotlessthanP20,000but notmorethanP100,000and imprisonmentofnotlessthan 6yearsand1daybutnotmore P100,000 P100,000 than12years. Page5of10

  6. 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. Fineofnotlessthan10timesthe amountofexcisetaxduebutnotless thanP1,000andimprisonmentofnot P100,000plusforfeitureoftheuntaxedarticle lessthanone(1)yrbutnotmorethan twoyearsyrs 2(2) 264 a)Failureorrefusaltoissuereceiptsor salesorcommercialinvoices;issuing receiptsorinvoicesnottrulyreflecting FineofnotlessthanP1,000butnot morethanP50,000andimprisonment ofnotlessthan2yearsbutnotmore Specific Violation a)Forfailureto First Offense P10,000 Second Offense P20,000 and/orcontainingallinformationrequired thereinorusingmultipleordouble receiptsorinvoices. than4years issuereceipts orsalesor salesor commercial invoices b)Forrefusalto issuereceipts orsalesor commercial invoices P25,000 P50,000 Page6of10

  7. 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

  8. REVISEDSCHEDULEOFCOMPROMISEPENALTY CODE SEC NATUREOFVIOLATION CRIMINALPENALTYIMPOSED AMOUNTOFCOMPROMISE f)Forprintingor causing,aiding orabettingthe printingof: 1)Receiptsor invoiceswithout authorityfrom theBIR P25,000 P50,000 2)Doubleor multiplesetsof receiptsor invoices Notqualifiedforcompromise 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

  9. 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

  10. 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

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