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WITHHOLDING TAX ON COMPENSATION (Revenue Regulations No. 2-98, as amended) Presented by: MS. LILYBETH A. GANER, CPA, MBA Revenue Officer Assessment Division Slide 2 Compensation Income Defined Compensation means all remuneration for services performed by an employee for his employer under an employee-employer relationship unless exempted by the Code. Slide 3 1. Remunerations received as an incident of employment, as follows: (a) Retirement benefits received under RA No. 7461 and under a reasonable private benefit plan (b) Benefits received due to death, sickness or other physical disability or for any cause beyond the control of the said official or employee Exemptions (cont) Slide 4 (c) Social security benefits, retirement gratuities, pensions and other similar benefits received by residents, non-resident citizens and resident aliens Exemptions (cont) Slide 5 (d) Payments of benefits due or to become due to any person residing in the Philippines under the law of the United States administered by the United States Veterans Administration; (e) Payments of benefits made under the Social Security System Act of 1945, as amended; and (f) Benefits received from the GSIS Act of 1937, as amended, and the retirement gratuity received by government officials and employees. Exemptions (cont) Slide 6 2. Remuneration paid for agricultural labor. 3. Remuneration for casual labor not in the course of an employers trade or business. 4. Compensation for services by a citizen or resident of the Philippines for a foreign government or an international organization. Exemptions (cont) Slide 7 5. Damages 6. Life insurance 7. Amount received by the insured as a return of premium 8. Compensation for injuries or sickness 9. Income exempt under treaty Exemptions (cont) Slide 8 10. Remuneration for domestic services 11. GSIS, SSS, Medicare and other contributions (HDMF and Union Dues) Slide 9 Exemptions (cont) 12. Thirteenth(13 th) Month Pay and Other Benefits not exceeding P 30,000 Other Benefits such as Christmas bonus Productivity Loyalty Award Gifts in cash or in kind Other benefits of similar nature Excess over the prescribed ceiling of the de minimis benefits Slide 10 Exemptions (cont) 13. Compensation income of MWEs who work in the private sector and being paid the Statutory Minimum Wage applicable to the place where he is assigned. Slide 11 in Region XI : P 286.00 + 5.00 Non-Agricultural Sector P 276.00 + 5.00 Agricultural Sector ( effective January, 2012; Additional P5.00 on May 1) Latest Minimum Wage per RR 5-2011 Slide 12 The following compensation received by minimum wage earners shall likewise be exempt from income tax: holiday pay overtime pay night shift differential pay hazard pay Slide 13 Exemptions (cont) (14) Compensation income of employees in the public sector with compensation income of not more than the SMW in the non-agricultural sector, as fixed by RTWPB/NWPC, applicable to the place where he is assigned. Slide 14 Take note! An employee who receives additional compensation other than SMW, holiday pay, overtime, hazard pay, and night shift differential pay such as: Commissions Honoraria Fringe benefits Taxable allowances And other taxable income shall not enjoy the privilege of being a MWE. Slide 15 Hazard Pay the amount paid by the employer to MWEs Actually assigned to danger or strife-torn areas Disease-infested places Distressed or isolated stations and camps which exposed them to great danger or contagion or peril to life Any hazard pay paid to MWEs which does not satisfy the above criteria is deemed subject to IT and consequently to WT. Slide 16 DE MINIMIS BENEFITS (As amended by RR 5-2011) a.) Monetized unused vacation leave credits of private employees not exceeding 10 days during the year; b.) Monetized value of vacation and sick leave credits paid to government officials and employees; c.) Medical cash allowance to dependents of employees, not exceeding p750 per employee per semester or P125/month Slide 17 DE MINIMIS BENEFITS d) Rice subsidy of P1,500 or 1 sack of 50 kg rice per month amounting to not more than P 1,500; e.) Uniform and clothing allowance not exceeding P4,000/ annum; f.) Actual medical assistance, e.g. medical allowance to cover medical and healthcare needs, annual medical/executive check-up, maternity assistance, and routine consultations, not exceeding P10,000 per annum; Slide 18 g.) Laundry allowance not exceeding P300 per month h.) Employees achievement awards, e.g., for length of service or safety achievement, which must be in the form of tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P10,000 received by the employee under an established written plan which does not discriminate in favor of highly paid employees; DE MINIMIS BENEFITS Slide 19 i.) Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per employee per annum; j.) Daily meal allowance for overtime work and night/graveyard shift not exceeding 25% of basic minimum wage on a per region basis. Slide 20 DE MINIMIS Rules DE MINIMIS BENEFITS conforming to the ceiling shall not be considered in determining the P 30,000 the excess over the respective ceilings shall be considered as part of the other benefits and the employee receiving it will be subject to tax only on the excess over the P30,000. Slide 21 the application for registration should be accomplished by both employer and employee relating to the following: Slide 22 (A)Employee: Name/TIN, address & more as indicated in form 1902 Status single, married, others If married: Status of spouse - name/TIN - employed, abroad, ETB, unemployed Qualified dependents Name, date of birth of QDC Slide 23 Claimant of exemption for QDC Husband, wife if Husband is unemployed NRC, income from foreign sources WAIVES HIS RIG HT TO CLAIM EXEMPTION for all children and attach the sworn declaration to his 1902 and that of his wifes Slide 24 Required forms and attachments: birth certificate marriage contract if married birth certificate of QDC certified by Local Civil Registry/ NSO ( if not applicable, any doc. issued by a govt office) certificate of employment if Husband works abroad Slide 25 sworn declaration and waiver of right to claim exemptions of QDC ( Annex F ) medical cert of QDC, if incapacitated court decision of legally adopted children death certificate other documentary evidence Slide 26 Concurrent multiple employments: Shall file 1902 to his primary employer and furnish copy to his secondary employer/s Successive multiple employment: furnish his new employer with form 2305 (Cert. of Update of Exemption and of Employers and Employees Information) previous employers name, address, TIN And date of separation attach form 2316 (Cert. of compensation payment/ tax withheld) for compensation payment with or without w/holding tax for the CY issued by prev. employers. Slide 27 Mixed Income Individual with mixed income shall first deduct the allowable personal and addl exemptions from compensation income, only the excess there from can be deducted from business/prof. income (B) EMPLOYER: accepts the 1902 filed by the new hired, indicate the date of receipt, accomplish part V (employers name, add, TIN, and other relevant infos.) Slide 28 Procedures for filing 1902:.- Employee shall file w/in 10 days upon employment 1902 (triplicate) 2305 (w/in 10 days after change of status) RDO (w/in 30 days after receipt) Slide 29 Original - RDO Duplicate Employer Triplicate Employee Employer: review, compute, withheld & apply exemptions File copy Slide 30 In case the husband waives his right to exemption: H- Accomplish Annex F 3 copies 1902 Employer of H- acknowledge Duplicate H- employer Triplicate- employee Original- Ws employer Stop deducting W- employer: Deduct on the mo H- employer Stopped deducting Slide 31 Failure to file 1902: Zero exemption shall be applied based on the revised withholding tax table Failure to file 2305: employer shall withhold based on reported personal exemptions existing prior to change Slide 32 Salient Features Sec. 22 Definition statutory minimum wage shall refer to the rate fixed by the Regional Tripartite Wage and Productivity Board, as defined by the Bureau of Labor and Employment Statistics (BLES) of the Department of Labor and Employment (DOLE). Slide 33 Computation of wages The basis of the computation of the minimum wage rates prescribed by law shall be the normal working hours not more than 8 hours a day. The computation of wages shall be in accordance with the Collective Bargaining Agreement (CBA), if any or the provisions of the Labor Code as implemented Slide 34 FACTOR OR NUMBER OF WORKING/PAID DAYS IN A YEAR Slide 35 1. For those who do not work and are not considered paid on Saturdays and Sundays or rest day Equivalent Monthly Rate (EMR) = Applicable Daily Wage Rate (ADR) x 261 days 12 months Where 261 days247- ordinary working days 11- regular holidays 3- Special days 261- Total number of days/year Example: P 291.00 MWE in Region XI Equivalent Monthly Rate=P 291.00 x 261 days 12 months P 6,329.25 Slide 36 2. For those who do not work and are not considered paid on Sundays or rest day Equivalent Monthly Rate (EMR) = Applicable Daily Wage Rate (ADR) x 313 days 12 months Where 313 days299- ordinary working days 11- regular holidays 3- Special days 313- Total number of days/year Example: P 291.00 MWE in Region XI Equivalent Monthy Rate=P 291.00 x 313 days 12 months P 7,590.25..25 Slide 37 3. For those who do not work but are considered paid on rest days, special days and regular holidays Equivalent Monthly Rate (EMR) = Applicable Daily Wage Rate (ADR) x 365 days 12 months Where 365 days299- ordinary working days 11- regular holidays 52 Sunday/Rest days 3- Special days 365- Total number of days/year Example: P 291.00 MWE in Region XI Equivalent Monthy Rate=P 291.00 x 365 days 12 months P 8,851.25 Slide 38 4. For those who are required to work everyday including Sundays or rest day, special days & regular holidays: Equivalent Monthly Rate (EMR) = Applicable Daily Wage Rate (ADR) x 261 days 12 months Where 392.5 days299 - ordinary working days 22 - regular holidays 67.6 - 52 rest days x 130% 3.9 - Special days 392.5 - Total number of days/year Example: P 291.00 MWE in Region XI Equivalent Monthly Rate=P 291.00 x 392.5 days 12 months P 9,518.13 Slide 39 (1)Withholding tax table (a) Old table (effective January 1, 2006) - January 1 to July 5, 2008 (b) Revised Transitory Withholding tax Table - July 6 to December 31, 2008 (c) Revised Withholding tax Table - January 1, 2009 & beyond Sec. 2.79. (B) Computation of Withholding tax Slide 40 Use of WTax TableWTax Table Four Tables for monthly, semi-monthly, weekly, and daily Each tax table is grouped into Tables A and B A for employees with no QDC B for employees with QDC 1 st column exemption status 2 nd column amount of exemption in pesos Columns 1 to 8 reflect the portion of the amount of taxes Z for zero exemption S single ME married employee Numerals 1 to 4 represents the number of dependents Slide 41 Steps to determine the amount of tax to be withheld 1.Determine the total monetary and non-monetary compensation. -13 th month pay -Productivity incentives -Christmas Bonus -other benefits -GSIS/SSS etc 2.Segregate the taxable from non-taxable compensation income paid to an employee for the payroll period. -P30,000 ceiling -non-taxable retirement benefits / separation pay Slide 42 (3.)Segregate the taxable compensation income determined in step 2 into regular taxable compensation income and supplementary compensation. Regular compensation basic salary, fixed allowances for representation, transportation and other allowances Supplementary compensation commission, overtime pay, taxable retirement pay, taxable bonus and other taxable benefits Steps to determine the amount of tax to be withheld Slide 43 (4) Use the appropriate tables (5) Fix the compensation level using the regular compensation income. (6) Compute the withholding tax due. Steps.. Slide 44 Right to claim WT exemption An employee receiving compensation income shall be entitled to w/tax exemptions, provided he/she must file 1902 Application for registration 2305 Cert.of Update of Exemption and of Employers and Employees Information Slide 45 PERSONAL AND ADDITIONAL EXEMPTION Single 50,000 Married 50,000 Qualified dependent child 25,000 Slide 46 On exemptions Every employer should ascertain whether or not a child being claimed is a qualified dependent If TP should have additional exemption during the taxable year, he may claim the corresponding additional exemption in full for such year If the TP dies during the taxable year, the estate may claim the full exemptions as if he died at the close of the year Slide 47 On exemptions TP may still claim full exemptions during the taxable year on the following cases: Spouse or any of the dependent dies Any of such dependents marries Becomes 21 y.o. Becomes gainfully employed As if it occurred at the close of such year Slide 48 (1)Mr. Sy, single with no dependent receives P12,000(net of SSS/GSIS, PHIC, HDMF employee share only) as monthly regular compensation and P5,000 as supplementary compensation for January, 2011 or a total of P17,000. Compute for the Withholding tax for Jan. 2011. Illustration Slide 49 Computation Regular compensation P 12,000.00 Less : compensation level(line A-2 column 5) 10,000.00 Excess 2,000.00 Add: Supplementary compensation 5,000.00 7,000.00 Tax on P10,000 708.33 Tax on excess (P7,000 x 20%) 1,400.00 Withholding tax for Jan. 2011 P 2,108.33 Slide 50 Monthly 1 2345678 Exemption Status 0.00 0% over 0.00 +5% 41.67 +10% over 208.33 +15% over 1,875 4,166.6710,416.67 A. Table for employees without qualified dependent 1. Z 0.0 1 08332,5005,83311,66720,83341,667 15,83325,00045,833 Applicable Wtax Table Slide 51 Lets Check: Withholding tax Jan. 2011 = P 2,108.33 Withholding Tax (Feb.- Dec.11) 1,108.33 x 11 12,191.63 Total P14,299.66 Gross Income P149,000.00 Exemption Single 50,000.00 Taxable Income P 99,000.00 Tax due P 14,300.00 Slide 52 Tax Table But not Of excess OveroverAmount rateover Not over 10,000.005% 10,000.00 30,000.00P500 + 10% 10,000.00 30,000.00 70,000.002,500 + 15% 30,000.00 70,000.00 140,000.008,500 + 20% 70,000.00 140,000.00 250,000.0022,500 + 25% 140,000.00 250,000.00 500,000.0050,000 + 30% 250,000.00 500,000.00 over125,000 + 32% 500,000.00 Slide 53 Illustration: (2)For the month of January 2011, Mrs. A, married with one qualified dependent child, with basic salary equivalent to the SMW, receives P 7,460.00 (P 286/day x 313 days/ 12) as statutory monthly minimum wage plus other compensation such as: Commission... P 10,000 Transportation allowance.. 2,000 Hazard Pay. 1,000 Overtime 5,000 Night shift differential 2,000 Slide 54 Computation: Statutory Minimum Wage P 7,460.00 Gross Benefits Hazard pay P 1,000.00 Overtime 5,000.00 Night Shift Differential 2,000.00 8,000.00 Sub-total P 15,460.00 Taxable compensation commission* P 10,000.00 Transportation* 2,000.00 12,000.00 Total Taxable Compensation Income P 27,460.00 Regular compensation P 7,460.00 Less: Compensation Level (B-1 col3) 7,083.00 Excess P 377.00 Add: Supplementary compensation(8,000+12,000) 20,000.00 Total P 20,377.00 Slide 55 Continuation.. Tax on P7,083 (Line B1, col. 3) P 41.67 Tax on excess (P20,377 x 10%) 2,037.70 Withholding tax January 2011 P 2,079.37 *An employee who receives compensation other than SMW, OT, NS differential, HPay shall no longer enjoy the privilege of being a minimum wage earner, and his entire earnings are no longer considered exempt. Slide 56 ILLUSTRATIVE PROBLEM For taxable year 2010, WTD Service Company employed Mr. J, married with two qualified dependent children. He received the following compensation for the year: Basic Monthly SalaryP 45,000.00 Overtime Pay for Nov. 5,000.00 Thirteenth Month Pay 45,000.00 Other Benefits 12,000.00 Withholding Tax 98,082.00 Slide 57 COMPUTATION:ReceivedNon- For the YearTaxable Basic Salary (P45K x 12) 540,000.00 Overtime (Nov.) 5,000.00 13th Month Pay 45,000.00 30,000.00 15,000.00 Other Benefits 12,000.00 Totals 602,000.00 30,000.00 572,000.00 Total Gross Compensation 572,000.00 Less:Personal exemption 50,000.00 Additional exemption (2 x P25k) 50,000.00 100,000.00 Net Taxable Compensation 472,000.00 Tax Due (using the Income Tax Table) 116,600.00 Less: Tax Withheld from previous months(Jan-Nov) 98,082.27 Tax to be collected in Dec 2010 18,517.73 Slide 58 Liability for Tax Employer Responsible for withholding and remittance of correct amount of tax Employee Responsible for submission of 1902 / 2305 Slide 59 Statements and Returns BIR Form 2316 Employer shall furnish the employees NLT Jan. 31 Failure to furnish shall be a ground for mandatory audit upon verified complaint of the payee It shall include the fringe benefits given to rank & file employees Employers of MWEs are still required to issue BIR Form 2316 (June 2008 Encs version) It shall indicate the health &/or hosp. insurance, if any The amount of SMW, OT, Holiday pay, Night diff, and hazard pay shall be indicated Among others Slide 60 Statements and Returns Form 2316 cont. It shall be signed by both the employers authorized representative and the employee Shall contain a written declaration that it is made under the penalties of perjury Shall contain a certification that the employers filing of BIR Form 1604-CF shall be considered as substituted filing The employer shall retain the duly signed 2316 for a period of three (3) years. Slide 61 Statements and Returns Form 2316 continued The applicable box for MWEs shall be indicated (under the enhanced form). This serves as proof of financial capacity for purposes of loans, etc In case of successive employment during the taxable year, an extra copy of BIR Form 2316 shall be furnished to his new employer Slide 62 PURPOSE: TAX DUE = TAX WITHHELD WHEN: On or before the end of the calendar year, prior to the payment of compensation for the last payroll. If terminated, on the day on which the last payment of compensation is made. Year-End Adjustment Slide 63 STEP 1 -Determine the taxable regular and supplementary compensation paid to the employee for the entire calendar year; STEP 2 - If the employee has previous employment/s within the year, add the amount of taxable compensation paid to the employee by the previous employer. YEA-Annualized Method Slide 64 STEP 3 - Deduct from the aggregate amount of compensation computed in Step 2 the amount of the total personal and additional exemptions of the employee; Personal Exemptions: Single -P50,000 MarriedP50,000 Additional Exemption: P25,000 for each qualified dependent YEA-Annualized Method Slide 65 STEP 4 - Deduct the amount of premium payments on Health and/or Hospitalization Insurance of employees who have presented evidence that they have paid the same during the taxable year. Note: The deductible amount shall not exceed P2,400/annum or P200/month whichever is lower and total family gross income does not exceed P250,000 for the calendar year. YEA-Annualized Method Slide 66 STEP 6 - Determine the deficiency or excess, if any, of the tax computed in Step 5 over the cumulative tax already deducted and withheld since the beginning of the current calendar year. YEA-Annualized Method Slide 67 Gross Compensation (prev. + present)Pxxx Less:Non-Taxable/Exempt Compensation xxx a)13th month pay & other benefits xxx b)Other non-taxable benefitsxxx c)SSS, GSIS, PHIC, Pag-ibig and Union Dues (Employees share only) xxx xxx Less: a) Personal and additional exemption xxx b) Health/Hosp. Premium payment xxx xxx Taxable Compensation Income xxx Tax due xxx Annualized Withholding Tax - Formula Slide 68 OVER BUT NOT OVER AMOUNT RATE OF EXCESS OVER Not over 10,0000 5% 10,000 30,000 500 + 10% 10,000 30,000 70,000 2,500 + 15% 30,000 70,000 140,000 8,500 + 20% 70,000 140,000 250,000 22,500 + 25% 140,000 250,000 500,000 50,000 + 30% 250,000 500,000 over 125,000 + 34% 500,000 33% in 1999 32% in 2000 and thereafter INCOME TAX TABLE Slide 69 BASIC CONCEPT OF YEAR -END ADJUSTMENT Compensation Income-net A B C 230,000 230,000 230,000 50,000 50,000 50,000 180,000 180,000 180,000 32,500 32,500 32,500 32,500 30,000 34,500 0__ 2,500 (2,000) Compensation Income-net Less: Exemption (single) Taxable Income Tax Due Less: Tax Withheld Jan-Nov EVEN PAYABLE REFUNDABLE Slide 70 Mr. Dexter, head of the family with a qualified dependent brother receives P12,166.67 (net of SSS, Philhealth, HDMF) as monthly regular compensation starting January 1, 2011, he filed his resignation effective June 30, 2011. The tax withheld from January to May was P2,900. Sample Problem 1 Slide 71 Total compensation (Jan. - June)P73,000.00 Less: Personal Exemption 50,000.00 Net Taxable CompensationP23,000.00 Tax DueP 1,800.00 Tax Withheld from Jan. to May 2,900.00 To be refunded on or before 6/30/02 (P1,100.00) Computation: Slide 72 Mr. Jacob, married with 2 qualified dependent children received P18,500 monthly compensation (net of SSS, Philhealth, HDMF employees contributions). Taxes withheld from Jan. to Nov. were P8,158.00. Sample Problem 2 Slide 73 Total Compensation (Jan - Nov) P203,500.00 Add: Dec. compensation 18,500.00 Gross Compensation P222,000.00 Less: Personal/additional exemption 150,000.00 Total Compensation P 72,000.00 Tax due P 8,900.00 Less: Tax Withheld 8,158.00 Collectible W/tax for Dec. salary P 742.00 Computation: Slide 74 JManual Submission - 3 copies of 1604CF/1604E Including the alphalist of employees and income payees. JDiskette/CD & email Submission thru esubmission@bir.gov.ph Annual Information Return Slide 75 Slide 76 Slide 77 WAGES EXPANDED What to use: 1604CF 1604 E + alphalist + alphalist When to submit: On or before on or before Jan. 31 ff year March 1 ff year Where to submit:RDORDO Retention 3 yrs same Annual Information Return Slide 78 Where to file? B I R Revenue District Office RDO 112- Tagum City RDO 113- West Davao City RDO 132- East Davao City RDO 114- Mati City RDO 115-Digos City Slide 79 Reiteration of the Applicable Penalties for Employers Who Fail to Withhold, Remit, Do the Year-End Adjustment and Refund Employees of the Excess Withholding Taxes on Compensation Slide 80 Emphasize the Employers to: 1. Withhold 2. Remit 3. Do the Year-End Adjustment 4. Refund employees of the excess of the Withholding Taxes on Compensation Sec. 80(A); Sec. 79(H); Sec. 24(A) Objective: Slide 81 Sec. 80(A) NIRC, as amended Withhold & Remit Correct amount of tax Employer BIR Slide 82 Sec. 79(H) * On or before year end but prior to payment of the compensation for the last payroll period, the employer shall determine the tax due from each employee on taxable compensation income for the entire taxable year - Sec. 24(A). *The difference of the tax due and tax withheld will either be withheld on Dec. or refunded to the employee not later Jan. 25, following year. Slide 83 FORMS TO BE USED For Monthly Remittance: COMPENSATION ==> BIR Form 1601CBIR Form 1601C For Annual Information Return: COMPENSATION & FINAL ===> BIR Form 1604CFBIR Form 1604CF For Certificate of Taxes Withheld: COMPENSATION ===> BIR Form 2316BIR Form 2316 Slide 84 Due Dates: January to November On or before the 10 th day of the following the month, whether W/A is LT or Non-LT (RR 6-01) December- On or before Jan. 15 of the following year, whether W/A is LT or Non-LT (RR 6-01) Annually - On or before Jan. 31 of the following year (RR 3-02) Slide 85 Attachments Required: 1.Alphalist of Employees as of Dec. 31 with No Previous Employer within the Year; 2.Alphalist of Employees as of Dec. 31 with Previous Employer(s) within the year; 3.Alphalist of Employees Terminated before Dec. 31; 4.Alphalist of Employees Whose Compensation Income are Exempt from Withholding Tax but Subject to Withholding Tax 5.Alphalist of Employees other than Rank & File Who Were Given Fringe Benefits During the Year Slide 86 * Optional for taxable year 2001 * Mandatory effective taxable year 2002 Effectivity of Substituted Filing Slide 87 START Preparation of BIR Form No. 1604 CF Employer files w/ BIR the duly accomplished BIR FORM 1604CF Subject to WTC? Entitled to subs- tituted filing ? Employer/employee to execute sworn joint certification. Employer to furnish employee copy of 2316/cert. to employee. Employer to retain copy of joint cert. Employer shall issue 2306to the payee (FWT) Employer shall issue 2316 to employee Employee files ITR together with 2316 & other pertinent docs Before Jan. 31 On or before Jan 31 - On or before Jan. 31 On or before April 15 On or before Jan. 31 n y y n Slide 88 An illustrative example on the year-end adjustment is shown under Sec. 2.79(B)(5)(b) of Revenue Regulations (RR) No. 2-98, as amended. Note: Slide 89 1. Non-withholding of tax - Employer fails to withhold the tax 2. Underwithholding - Employer fails to correctly withhold the tax 3. Non-remittance -Employer fails to remit total amount withhled Failure to Comply Slide 90 4. Underremittance -Employers remittance is less than total amount withheld 5. Late remittance -Employer remits correct amount withheld beyond the due date 6. Failure to refund excess taxes withheld -Employer ails to refund excess taxes withheld to its employees Slide 91 Penalties for Non-Compliance: 1. Additions to the tax: a. Sec. 248 25% of the amount due (failure) 50% of the amount due (fraud) b. Sec. 249 20% interest per annum c. Sec. 251 other penalties + total tax not withheld d. Sec. 252 - penalties + refundable amount Slide 92 2. Criminal Liabilities: (upon Conviction) a. Sec. 255 other penalties + P10,000 + imprisonment of 1 yr to 10 yrs b. Sec. 256 (Corp.) penalties + fine of P50,000 to P100,000 c. Sec. 272 (Public Officers) penalties + fine of P5000 to P50,000 or imprisonment of 6 mos. to 2 yrs, or both d. Sec. 275 (no specific penalty) fine of