revenue code for finals

7/29/2019 Revenue Code for Finals

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EC. 2. Powers and duties of the Bureau of Internal Revenue.

Under the supervision and control of the Department of Finance Powers and duties ! EE

"# !ssessment and collection of all national internal revenue ta$es% fees% and char&es2# Enforcement of all forfeitures% penalties% and fines connected therewith'# E$ecution of (ud&ments in all cases decided in its favor )* the C+! and the ordinar*

courts,# -ive effect to and administer the upervisor* and police powers conferred to it )*

this Code or other laws.

EC. '. Chief fficials of the Bureau of Internal Revenue.

Commissioner of Internal Revenue , Deput* Commissioners.

Powers of the CIR /I

0"# EC. ,. Power of the Commissioner to Interpret +a$ 1aws and to Decide +a$Cases. PER + I3+ERPRE+ E$clusive and ori&inal (urisdiction of the Commissioner%

su)(ect to review )* the Secretar* of Finance PER + DECIDE 4ested in the Commissioner% su)(ect to the e$clusive appellate

(urisdiction of the C+!

02# EC. 5. Power of the Commissioner to )tain Information% and to ummon%E$amine% and +a6e +estimon* of Persons . hat he can do /!DE C

"# !scertain the correctness of an* return2# /a6in& a return when none has )een made'# Determine the lia)ilit* of an* person for an* internal revenue ta$,# Collectin& an* such lia)ilit*5# Evaluatin& ta$ compliance

E7C +

"# +o E$amine an* )oo6% paper% record% or other data

Relevant or material to such in8uir*2# +o )tain on a re&ular )asis an* information such as% )ut not limited to% costs and

volume of production% receipts or sales and &ross incomes of ta$pa*ers% and thenames% addresses% and financial statements of corporations% mutual fundcompanies% insurance companies% re&ional operatin& head8uarters of multinationalcompanies% (oint accounts% associations% (oint ventures of consortia and re&isteredpartnerships% and their mem)ers

From an* person other than the person whose internal revenue ta$ lia)ilit* issu)(ect to audit or investi&ation% or

From an* office or officer of the national and local &overnments% &overnmenta&encies and instrumentalities% includin& the BSP and -CC

'# +o ummon to appear )efore the Commissioner or his dul* authori9edrepresentative and to produce such )oo6s% papers% records% or other data% and to&ive testimon*

Person lia)le for ta$ or re8uired to file a return% or

!n* officer or emplo*ee of such person% or

!n* person havin& possession% custod*% or care of the )oo6s of accounts andother accountin& records containin& entries relatin& to the )usiness of theperson lia)le for ta$

!t a time and place specified in the summons,# +o +a6e such testimon* of the person concerned

Under oath

!s ma* )e relevant or material to such in8uir*5# +o cause revenue officers and emplo*ees to ma6e a Canvass from time to time of

an* revenue district or re&ion and in8uire after and concernin&

!ll persons therein who ma* )e lia)le to pa* an* internal revenue ta$% and

!ll persons ownin& or havin& the care% mana&ement or possession of an*o)(ect with respect to which a ta$ is imposed

Commissioner not authori9ed to in8uire into )an6 deposits

0'# EC. :. Power of the Commissioner to /a6e assessments and Prescri)eadditional Re8uirements for +a$ !dministration and Enforcement .! FI+ C!PE

"# E$amination of Returns and Determination of +a$ Due.

/ade after a return has )een filed

Failure to file a return shall not prevent the Commissioner from authori9in& thee$amination of an* ta$pa*er

+a$ or an* deficienc* ta$ so assessed shall )e paid upon notice and demandfrom the Commissioner or from his dul* authori9ed representative

- R !n* return% statement of declaration filed in an* office authori9ed toreceive the same shall not )e withdrawnE; ithin ' *ears from the date of such filin&% the same ma* )e modified%

chan&ed% or amendedE; to E; 3o notice for audit or investi&ation of such return% statement ordeclaration has in the meantime )een actuall* served upon the ta$pa*er

2# Failure to Su)mit Re8uired Returns% Statements% Reports and other Documents.

hen should the Commissioner assess the proper ta$ on the )est evidenceo)taina)lea# ! report re8uired )* law as a )asis for the assessment of an* national

internal revenue ta$ shall not )e forthcomin& within the time fi$ed )* lawsor rules and re&ulations% or

)# Reason to )elieve that an* such report is false% incomplete or erroneous

hen should the Commissioner ma6e or amend the return from his own6nowled&e and from such information as he can o)tain throu&h testimon* or

otherwise% which shall )e prima facie correct and sufficient for all le&alpurposes


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a# Fails to file a re8uired return or other document at the time prescri)ed )*law% or

)# illfull* or otherwise files a false or fraudulent return or other document'# !uthorit* to Conduct Inventor*7ta6in&% surveillance and to Prescri)e Presumptive

-ross Sales and Receipts

!t an* time durin& the ta$a)le *ear

If there is reason to )elieve that such person is not declarin& his correctincome% sales or receipts for internal revenue ta$ purposes

Findin&s ma* )e used as the )asis for assessin& the ta$es for the othermonths or 8uarters of the same or different ta$a)le *ears

!ssessment shall )e deemed prima facie correct

hen the Commissioner ma* prescri)e a minimum amount of such &rossreceipts% sales and ta$a)le )ase 0deemed prima face correct

#a# Failed to issue receipts and invoices)# Reason to )elieve that the )oo6s of accounts or other records do not

correctl* reflect the declarations made or to )e made in a return re8uiredto )e filed

Condition )efore prescri)in& minimum amounta# /ade after ta6in& into account the sales% receipts% income or other ta$a)le

)ase of other persons en&a&ed in similar )usinesses under similar

situations or circumstances% or)# /ade after considerin& other relevant information

,# !uthori t* to +erminate +a$a)le Period

-rounds RIPa# +a$pa*er is retirin& from )usiness su)(ect to ta$)# +a$pa*er is intendin& to leave the Philippines or to remove his propert*

therefrom or to hide or conceal his propert*c# +a$pa*er is performin& an* act tendin& to o)struct the proceedin&s for the

collection of the ta$ for the past or current 8uarter or *ear or to render thesame totall* or partl* ineffective unless such proceedin&s are )e&unimmediatel*%

Declare ta$ period terminated at an* time

Send the ta$pa*er a notice of such decision% to&ether with a re8uest for theimmediate pa*ment of the ta$a# For the period so declared terminated and the ta$ for the precedin& *ear

or 8uarter% or)# Such portion thereof as ma* )e unpaid

Said ta$es shall )e due and pa*a)le immediatel* and shall )e su)(ect to all thepenalties hereafter prescri)ed% unless paid within the time fi$ed in the demandmade )* the Commissioner

5# !uthorit* of the Commissioner to P

rescri)e Real Propert* 4alues

Divide the Philippines into different 9ones or areas

Upon consultation with competent appraisers )oth from theprivate and pu)lic sectors% determine the F/4 of real properties located in

each 9one or area. >%>>># or less%


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and minor criminal violations% as ma* )e determined )* rules and re&ulations to )epromul&ated )* the Secretar* of finance% upon recommendation of theCommissioner% discovered )* re&ional and district officials% ma* )e compromised )*a re&ional evaluation )oard which shall )e composed of the Re&ional Director asChairman% the !ssistant Re&ional Director% the heads of the 1e&al% !ssessment andCollection Divisions and the Revenue District fficer havin& (urisdiction over theta$pa*er% as mem)ers= and0d# +he power to assi&n or reassi&n internal revenue officers to esta)lishments

where art ic les su)(ect to e$cise ta$ are produced or 6ept.

EC. @. Dut* of the Commissioner to Ensure the Provision and Distri)ution of forms%

Receipts% Certificates% and !ppliances% and the !c6nowled&ment of Pa*ment of

+a$es.70!# Provision and Distri)ution to Proper fficials. 7 It shall )e the dut* of theCommissioner% amon& other thin&s% to prescri)e% provide% and distri)ute to theproper officials the re8uisite licenses internal revenue stamps% la)els all other forms%certificates% )onds% records% invoices% )oo6s% receipts% instruments% appliances andapparatus used in administerin& the laws fallin& within the (urisdiction of the Bureau.For this purpose% internal revenue stamps% strip stamps and la)els shall )e caused)* the Commissioner to )e printed with ade8uate securit* features.

Internal revenue stamps% whether of a )ar code or fuson desi&n% shall )e firml* andconspicuousl* affi$ed on each pac6 of ci&ars and ci&arettes su)(ect to e$cise ta$ inthe manner and form as prescri)ed )* the Commissioner% upon approval of theSecretar* of Finance.

0B# Receipts for Pa*ment /ade. 7 It shall )e the dut* of the Commissioner or hisdul* authori9ed representative or an authori9ed a&ent )an6 to whom an* pa*mentof an* ta$ is made under the provision of this Code to ac6nowled&e the pa*ment ofsuch ta$% e$pressin& the amount paid and the particular account for which suchpa*ment was made in a form and manner prescri)ed therefor )* the Commissioner.

EC. A. 7 Internal Revenue Districts . 7 ith the approval of the Secretar* of Finance% theCommissioner shall divide the Philippines into such num)er of revenue districts as ma* formtime to time )e re8uired for administrative purposes. Each of these districts shall )e under thesupervision of a Revenue District fficer.

EC. ">. 7 Revenue Re&ional Director . 7 Under rules and re&ulations% policies andstandards formulated )* the Commissioner% with the approval of the Secretar* of Finance% theRevenue Re&ional director shall% within the re&ion and district offices under his (urisdiction%amon& others

0a# Implement laws% policies% plans% pro&rams% rules and re&ulations of thedepartment or a&encies in the re&ional area=0)# !dminister and enforce internal revenue laws% and rules and re&ulations%includin& the assessment and collection of all internal revenue ta$es% char&es andfees.0c# Issue 1etters of authorit* for the e$amination of ta$pa*ers within the re&ion=0d# Provide economical% efficient and effective service to the people in the area=0e# Coordinate with re&ional offices or other departments% )ureaus and a&encies in

the area=0f# Coordinate with local &overnment units in the area=0 E$ercise control and supervision over the officers and emplo*ees within there&ion= and0h# Perform such other functions as ma* )e provided )* law and as ma* )edele&ated )* the Commissioner.

EC. "". Duties of Revenue District fficers and ther Internal Revenue fficers . 7 Itshall )e the dut* of ever* Revenue District fficer or other internal revenue officers andemplo*ees to ensure that all laws% and rules and re&ulations affectin& national internalrevenue are faithfull* e$ecuted and complied with% and to aid in the prevention% detection andpunishment of frauds of delin8uencies in connection therewith.

It shall )e the dut* of ever* Revenue District fficer to e$amine the efficienc* of all officersand emplo*ees of the Bureau of Internal Revenue under his supervision% and to report inwritin& to the Commissioner% throu&h the Re&ional Director% an* ne&lect of dut*% incompetenc*%delin8uenc*% or malfeasance in office of an* internal revenue officer of which he ma* o)tain6nowled&e% with a statement of all the facts and an* evidence sustainin& each case.

EC. "2. !&ents and Deputies for Collection of 3ational Internal Revenue +a$es. 7+he followin& are here)* constituted a&ents of the Commissioner

0a# +he Commissioner of Customs and his su)ordinates with respect to the

collection of national internal revenue ta$es on imported &oods=0)# +he head of the appropriate &overnment office and his su)ordinates with respectto the collection of ener&* ta$= and0c# Ban6s dul* accredited )* the Commissioner with respect to receipt of pa*mentsinternal revenue ta$es authori9ed to )e made thru )an6.

!n* officer or emplo*ee of an authori9ed a&ent )an6 assi&ned to receive internalrevenue ta$ pa*ments and transmit ta$ returns or documents to the Bureau ofInternal Revenue shall )e su)(ect to the same sanctions and penalties prescri)ed inSections 2:A and 2?> of this Code.


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EC. "'. 7 !uthorit* of a Revenue ffices. 7 su)(ect to the rules and re&ulations to )eprescri)ed )* the Secretar* of Finance% upon recommendation of the Commissioner% aRevenue fficer assi&ned to perform assessment functions in an* district ma*% pursuant to a1etter of !uthorit* issued )* the Revenue Re&ional Director% e$amine ta$pa*ers within the(urisdiction of the d istrict in order to collect the correct amount of ta$% or to recommend theassessment of an* deficienc* ta$ due in the same manner that the said acts could have )eenperformed )* the Revenue Re&ional Director himself.

EC. ",. !uthorit* of fficers to !dminister aths and +a6e +estimon*. 7 +heCommissioner% Deput* Commissioners% Service Chiefs% !ssistant Service Chiefs% RevenueRe&ional Directors% !ssistant Revenue Re&ional Directors% Chiefs and !ssistant Chiefs ofDivisions% Revenue District fficers% special deputies of the Commissioner% internal revenueofficers and an* other emplo*ee of the Bureau thereunto especiall* deputi9ed )* theCommissioner shall have the power to administer oaths and to ta6e testimon* in an* officialmatter or investi&ation conducted )* them re&ardin& matters within the (urisdiction of theBureau.

EC. "5. !uthorit* of Internal Revenue fficers to /a6e !rrests and ei9ures . 7 +he

Commissioner% the Deput* Commissioners% the Revenue Re&ional Directors% the RevenueDistrict fficers and other internal revenue officers shall have authorit* to ma6e arrests andsei9ures for the violation of an* penal law% rule or re&ulation administered )* the Bureau ofInternal Revenue. !n* person so arrested shall )e forthwith )rou&ht )efore a court% there to)e dealt with accordin& to law.

EC. ":. !ssi&nment of Internal Revenue fficers Involved in E$cise +a$ Functions

to Esta)lishments here !rticles su)(ect to E$cise +a$ are Produced or ept . 7 +heCommissioner shall emplo*% assi&n% or reassi&n internal revenue officers involved in e$ciseta$ functions% as often as the e$i&encies of the revenue service ma* re8uire% toesta)lishments or places where articles su)(ect to e$cise ta$ are produced or 6ept Provided%

+hat an internal revenue officer assi&ned to an* such esta)lishment shall in no case sta* inhis assi&nment for more than two 02# *ears% su)(ect to rules and re&ulations to )e prescri)ed)* the Secretar* of Finance% upon recommendation of the Commissioner.

EC. "?. !ssi&nment of Internal Revenue fficers and ther Emplo*ees to ther

Duties . 7 +he Commissioner ma*% su)(ect to the provisions of Section ": and the laws on civilservice% as well as the rules and re&ulations to )e prescri)ed )* the Secretar* of Financeupon the recommendation of the Commissioner% assi&n or reassi&n internal revenue officersand emplo*ees of the Bureau of Internal Revenue% without chan&e in their official ran6 andsalar*% to other or special duties connected with the enforcement or administration of therevenue laws as the e$i&encies of the service ma* re8uire Provided% +hat internal revenue

officers assi&ned to perform assessment or collection function shall not remain in the same

assi&nment for more than three 0'# *ears= Provided% further% +hat assi&nment of internalrevenue officers and emplo*ees of the Bureau to special duties shall not e$ceed one 0"# *ear.

EC. "@. Reports of violation of 1aws . 7 hen an internal revenue officer discoversevidence of a violation of this Code or of an* law% rule or re&ulations administered )* theBureau of Internal Revenue of such character as to warrant the institution of criminalproceedin&s% he shall immediatel* report the facts to the Commissioner throu&h his immediate

superior% &ivin& the name and address of the offender and the names of the witnesses ifpossi)le Provided% +hat in ur&ent cases% the Revenue Re&ional director or Revenue Districtfficer% as the case ma* )e% ma* send the report to the correspondin& prosecutin& officer inthe latter case% a cop* of his report shall )e sent to the Commissioner.

EC. "A. Contents of Commissioners !nnual Report . 7 +he annual Report of theCommissioner shall contain detailed statements of the collections of the Bureau withspecifications of the sources of revenue )* t*pe of ta$% )* manner of pa*ment% )* revenuere&ion and )* industr* &roup and its dis)ursements )* classes of e$penditures.

In case the actual collection e$ceeds or falls short of tar&et as set in the annual national

)ud&et )* fifteen percent 0"5# or more% the Commissioner shall e$plain the reason for suche$cess or shortfall.

EC. 2>. u)mission of Report and Pertinent Information )* the Commissioner .

0!# Su)mission of Pertinent Information to Con&ress. 7 +he provision of Section 2?>of this Code to the contrar* notwithstandin&% the Commissioner shall% upon re8uestof Con&ress and in aid of le&islation% furnish its appropriate Committee pertinentinformation includin& )ut not limited to industr* audits% collection performance data%status reports in criminal actions initiated a&ainst persons and ta$pa*ers returnsProvided% however% +hat an* return or return information which can )e associatedwith% or otherwise identif*% directl* or indirectl*% a particular ta$pa*er shall )efurnished the appropriate Committee of Con&ress onl* when sittin& in E$ecutiveSession Unless such ta$pa*er otherwise consents in writin& to such disclosure.

0B# Report to versi&ht Committee. 7 +he Commissioner shall% with reference toSection 2>, of this Code% su)mit to the versi&ht Committee referred to in Section2A> hereof% throu&h the Chairmen of the Committee on a*s and /eans of theSenate and


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ta$pa*er% )ut if no such method of accountin& has )een so emplo*ed% or if the methodemplo*ed does not clearl* reflect the income% the computation shall )e made in accordancewith such method as in the opinion of the Commissioner clearl* reflects the income. If theta$pa*ers annual accountin& period is other than a fiscal *ear% as defined in Section 220#% orif the ta$pa*er has no annual accountin& period% or does not 6eep )oo6s% or if the ta$pa*er isan individual% the ta$a)le income shall )e computed on the )asis of the calendar *ear.

EC. 5:. Pa*ment and !ssessment of Income +a$ for Individuals and Corporation. 7

0!# Pa*ment of +a$. 7

0"# In -eneral. 7 +he total amount of ta$ imposed )* this +itle shall )e paid )* theperson su)(ect thereto at the time the return is filed. In the case of tramp vessels%the shippin& a&ents andor the hus)andin& a&ents% and in their a)sence% thecaptains thereof are re8uired to file the return herein provided and pa* the ta$ duethereon )efore their departure. Upon failure of the said a&ents or captains to file thereturn and pa* the ta$% the Bureau of Customs is here)* authori9ed to hold thevessel and prevent its departure until proof of pa*ment of the ta$ is presented or asufficient )ond is filed to answer for the ta$ due.

02# Installment of Pa*ment.7 hen the ta$ due is in e$cess of +wo thousandpesos 0P2%>>>#% the ta$pa*er other than a corporation ma* elect to pa* the ta$ intwo 02# e8ual installments in which case% the first installment shall )e paid at thetime the return is filed and the second installment% on or )efore Gul* "5 followin& theclose of the calendar *ear. If an* installment is not paid on or )efore the date fi$edfor its pa*ment% the whole amount of the ta$ unpaid )ecomes due and pa*a)le%to&ether with the delin8uenc* penalties.

0'# Pa*ment of Capital -ains +a$. 7 +he total amount of ta$ imposed andprescri)ed under Section 2, 0c#% 2,0D#% 2?0E#02#% 2@0!#0@#0c# and 2@0B#05#0c# shall)e paid on the date the return prescri)ed therefor is filed )* the person lia)lethereto Provided% +hat if the seller su)mits proof of his intention to avail himself ofthe )enefit of e$emption of capital &ains under e$istin& special laws% no suchpa*ments shall )e re8uired Provided% further% +hat in case of failure to 8ualif* fore$emption under such special laws and implementin& rules and re&ulations% the ta$due on the &ains reali9ed from the ori&inal transaction shall immediatel* )ecomedue and pa*a)le% su)(ect to the penalties prescri)ed under applica)le provisions ofthis Code Provided% finall*% +hat if the seller% havin& paid the ta$% su)mits suchproof of intent within si$ 0:# months from the re&istration of the documenttransferrin& the real propert*% he shall )e entitled to a refund of such ta$ uponverification of his compliance with the re8uirements for such e$emption.

HIn case the ta$pa*er elects and is 8ualified to report the &ain )* installments under Section,A of this Code% the ta$ due from each installment pa*ment shall )e paid within 0'># da*s fromthe receipt of such pa*ments.

3o re&istration of an* document transferrin& real propert* shall )e effected )* the Re&ister ofDeeds unless the Commissioner or his dul* authori9ed representative has certified that suchtransfer has )een reported% and the ta$ herein imposed% if an*% has )een paid.

0B# !ssessment and Pa*ment of Deficienc* +a$ . 7 !fter the return is filed% theCommissioner shall e$amine it and assess the correct amount of the ta$. +he ta$ ordeficienc* income ta$ so discovered shall )e paid upon notice and demand from theCommissioner.

!s used in this Chapter% in respect of a ta$ imposed )* this +itle% the term deficienc* means

0"# +he amount )* which the ta$ imposed )* this +itle e$ceeds the amount shownas the ta$ )* the ta$pa*er upon his return= )ut the amount so shown on the returnshall )e increased )* the amounts previousl* assessed 0or collected withoutassessment# as a deficienc*% and decreased )* the amount previousl* a)ated%

credited% returned or otherwise repaid in respect of such ta$= or

02# If no amount is shown as the ta$ )* the ta$pa*er upon this return% or if no returnis made )* the ta$pa*er% then the amount )* which the ta$ e$ceeds the amountspreviousl* assessed 0or collected without assessment# as a deficienc*= )ut suchamounts previousl* assessed or collected without assessment shall first )edecreased )* the amounts previousl* a)ated% credited returned or otherwise repaidin respect of such ta$.

EC. ?". Disposition of Income +a$ Returns% Pu)lication of 1ists of +a$pa*ers and

Filers. 7 !fter the assessment shall have )een made% as provided in this +itle% the returns%

to&ether with an* corrections thereof which ma* have )een made )* the Commissioner% shall)e filed in the ffice of the Commissioner and shall constitute pu)lic records and )e open toinspection as such upon the order of the President of the Philippines% under rules andre&ulations to )e prescri)ed )* the Secretar* of Finance% upon recommendation of theCommissioner.

+he Commissioner ma*% in each *ear% cause to )e prepared and pu)lished in an* newspaperthe lists containin& the names and addresses of persons who have filed income ta$ returns.

EC. 2>'. Period of 1imitation Upon !ssessment and Collection . 7 E$cept as providedin Section 222% internal revenue ta$es shall )e assessed within three 0'# *ears after the lastda* prescri)ed )* law for the filin& of the return% and no proceedin& in court without

assessment for the collection of such ta$es shall )e )e&un after the e$piration of such periodProvided% +hat in a case where a return is filed )e*ond the period prescri)ed )* law% the three


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0'#7*ear period shall )e counted from the da* the return was filed. For purposes of thisSection% a return filed )efore the last da* prescri)ed )* law for the filin& thereof shall )econsidered as filed on such last da*.

EC. 2>,. !uthorit* of the Commissioner to Compromise% !)ate and Refund or

Credit +a$es. 7 +he Commissioner ma* 7

0!# Compromise the pa*ment of an* internal revenue ta$% when

0"# ! reasona)le dou)t as to the validit* of the claim a&ainst the ta$pa*er e$ists= or02# +he financial position of the ta$pa*er demonstrates a clear ina)ilit* to pa* theassessed ta$.

+he compromise settlement of an* ta$ lia)ilit* shall )e su)(ect to the followin&minimum amounts

For cases of financial incapacit*% a minimum compromise rate e8uivalentto ten percent 0"># of the )asic assessed ta$= andFor other cases% a minimum compromise rate e8uivalent to fort* percent0,># of the )asic assessed ta$.

here the )asic ta$ involved e$ceeds ne million pesos 0P"%>>>.>>># or where thesettlement offered is less than the prescri)ed minimum rates% the compromise shall)e su)(ect to the approval of the Evaluation Board which shall )e composed of theCommissioner and the four 0,# Deput* Commissioners.

0B# !)ate or cancel a ta$ lia)ilit*% when0"# +he ta$ or an* portion thereof appears to )e un(ustl* or e$cessivel* assessed=or02# +he administration and collection costs involved do not (ustif* the collection ofthe amount due.

!ll criminal violations ma* )e compromised e$cept 0a# those alread* filed in court%or 0)# those involvin& fraud.

0C# Credit or refund ta$es erroneousl* or ille&all* received or penalties imposed withoutauthorit*% refund the value of internal revenue stamps when the* are returned in &oodcondition )* the purchaser% and% in his discretion% redeem or chan&e unused stamps that have)een rendered unfit for use and refund their value upon proof of destruction. 3o credit orrefund of ta$es or penalties shall )e allowed unless the ta$pa*er files in writin& with theCommissioner a claim for credit or refund within two 02# *ears after the pa*ment of the ta$ orpenalt* Provided% however% +hat a return filed showin& an overpa*ment shall )e consideredas a written claim for credit or refund.

! +a$ Credit Certificate validl* issued under the provisions of this Code ma* )e applieda&ainst an* internal revenue ta$% e$cludin& withholdin& ta$es% for which the ta$pa*er is

directl* lia)le. !n* re8uest for conversion into refund of unutili9ed ta$ credits ma* )e allowed%su)(ect to the provisions of Section 2'> of this Code Provided% +hat the ori&inal cop* of the+a$ Credit Certificate showin& a credita)le )alance is surrendered to the appropriate revenueofficer for verification and cancellation Provided% further% +hat in no case shall a ta$ refund )e&iven resultin& from availment of incentives &ranted pursuant to special laws for which noactual pa*ment was made.

+he Commissioner shall su)mit to the Chairmen of the Committee on a*s and /eans of

)oth the Senate and 5. Remedies for the Collection of Delin8uent +a$es. 7 +he civil remedies for thecollection of internal revenue ta$es% fees or char&es% and an* increment thereto resultin& fromdelin8uenc* shall )e

0a# B* distraint of &oods% chattels% or effects% and other personal propert* ofwhatever character% includin& stoc6s and other securities% de)ts% credits% )an6accounts and interest in and ri&hts to personal propert*% and )* lev* upon realpropert* and interest in ri&hts to real propert*= and

0)# B* civil or criminal action.

Either of these remedies or )oth simultaneousl* ma* )e pursued in the discretion ofthe authorities char&ed with the collection of such ta$es Provided% however% +hatthe remedies of distraint and lev* shall not )e availed of where the amount of ta$involve is not more than ne hundred pesos 0P">>#.

+he (ud&ment in the criminal case shall not onl* impose the penalt* )ut shall alsoorder pa*ment of the ta$es su)(ect of the criminal case as finall* decided )* theCommissioner.

+he Bureau of Internal Revenue shall advance the amounts needed to defra* costsof collection )* means of civil or criminal action% includin& the preservation ortransportation of personal propert* distrained and the advertisement and salethereof% as well as of real propert* and improvements thereon.

EC. 2>:. Constructive Distraint of the Propert* of ! +a$pa*er. 7 +o safe&uard the

interest of the -overnment% the Commissioner ma* place under constructive distraint thepropert* of a delin8uent ta$pa*er or an* ta$pa*er who% in his opinion% is retirin& from an*


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)usiness su)(ect to ta$% or is intendin& to leave the Philippines or to remove his propert*therefrom or to hide or conceal his propert* or to perform an* act tendin& to o)struct theproceedin&s for collectin& the ta$ due or which ma* )e due from him.

+he constructive distraint of personal propert* shall )e affected )* re8uirin& the ta$pa*er oran* person havin& possession or control of such propert* to si&n a receipt coverin& thepropert* distrained and o)li&ate himself to preserve the same intact and unaltered and not todispose of the same =in an* manner whatever% without the e$press authorit* of the

Commissioner.

In case the ta$pa*er or the person havin& the possession and control of the propert* sou&htto )e placed under constructive distraint refuses or fails to si&n the receipt herein referred to%the revenue officer effectin& the constructive distraint shall proceed to prepare a list of suchpropert* and% in the presence of two 02# witnessed% leave a cop* thereof in the premiseswhere the propert* distrained is located% after which the said propert* shall )e deemed tohave )een placed under constructive distraint.

EC. 2>?. ummar* Remedies. 7

0!# Distraint of Personal Propert*.7 Upon the failure of the person owin& an* delin8uent

ta$ or delin8uent revenue to pa* the same at the time re8uired% the Commissioner or his dul*authori9ed representative% if the amount involved is in e$cess of ne million pesos0P"%>>>%>>>#% or the Revenue District fficer% if the amount involved is ne million pesos0P"%>>>%>>># or less% shall sei9e and distraint an* &oods% chattels or effects% and the personalpropert*% includin& stoc6s and other securities% de)ts% credits% )an6 accounts% and interests inand ri&hts to personal propert* of such persons =in sufficient 8uantit* to satisf* the ta$% orchar&e% to&ether with an* increment thereto incident to delin8uenc*% and the e$penses of thedistraint and the cost of the su)se8uent sale.

! report on the distraint shall% within ten 0"># da*s from receipt of the warrant% )e su)mitted )*the distrainin& officer to the Revenue District fficer% and to the Revenue Re&ional DirectorProvided% +hat the Commissioner or his dul* authori9ed representative shall% su)(ect to rulesand re&ulations promul&ated )* the Secretar* of Finance% upon recommendation of theCommissioner% have the power to lift such order of distraint Provided% further% +hat aconsolidated report )* the Revenue Re&ional Director ma* )e re8uired )* the Commissioneras often as necessar*.

0B# 1ev* on Real Propert*.7 !fter the e$piration of the time re8uired to pa* the delin8uentta$ or delin8uent revenue as prescri)ed in this Section% real propert* ma* )e levied upon%)efore simultaneousl* or after the distraint of personal propert* )elon&in& to the delin8uent.+o this end% an* internal revenue officer desi&nated )* the Commissioner or his dul*authori9ed representative shall prepare a dul* authenticated certificate showin& the name ofthe ta$pa*er and the amounts of the ta$ and penalt* due from him. Said certificate shalloperate with the force of a le&al e$ecution throu&hout the Philippines.

1ev* shall )e affected )* writin& upon said certificate a description of the propert* upon whichlev* is made. !t the same time% written notice of the lev* shall )e mailed to or served upon theRe&ister of Deeds for the province or cit* where the propert* is located and upon thedelin8uent ta$pa*er% or if he )e a)sent from the Philippines% to his a&ent or the mana&er of the)usiness in respect to which the lia)ilit* arose% or if there )e none% to the occupant of thepropert* in 8uestion.

In case the warrant of lev* on real propert* is not issued )efore or simultaneousl* with the

warrant of distraint on personal propert*% and the personal propert* of the ta$pa*er is notsufficient to satisf* his ta$ delin8uenc*% the Commissioner or his dul* authori9edrepresentative shall% within thirt* 0'># da*s after e$ecution of the distraint% proceed with thelev* on the ta$pa*ers real propert*.

ithin ten 0"># da*s after receipt of the warrant% a report on an* lev* shall )e su)mitted )* thelev*in& officer to the Commissioner or his dul* authori9ed representative Provided% however%+hat a consolidated report )* the Revenue Re&ional Director ma* )e re8uired )* theCommissioner as often as necessar* Provided% further% +hat the Commissioner or his dul*authori9ed representative% su)(ect to rules and re&ulations promul&ated )* the Secretar* ofFinance% upon recommendation of the Commissioner% shall have the authorit* to lift warrantsof lev* issued in accordance with the provisions hereof.

EC. 2>@. Procedure for Distraint and -arnishment . 7 +he officer servin& the warrant ofdistraint shall ma6e or cause to )e made an account of the &oods% chattels% effects or otherpersonal propert* distrained% a cop* of which% si&ned )* himself% shall )e left either with theowner or person from whose possession such &oods% chattels% or effects or other personalpropert* were ta6en% or at the dwellin& or place of )usiness of such person and with someoneof suita)le a&e and discretion% to which list shall )e added a statement of the sum demandedand note of the time and place of sale.

Stoc6s and other securities shall )e distrained )* servin& a cop* of the warrant of distraintupon the ta$pa*er and upon the president% mana&er% treasurer or other responsi)le officer ofthe corporation% compan* or association% which issued the said stoc6s or securities.

De)ts and credits shall )e distrained )* leavin& with the person owin& the de)ts or havin& inhis possession or under his control such credits% or with his a&ent% a cop* of the warrant ofdistraint. +he warrant of distraint shall )e sufficient authorit* to the person ownin& the de)ts orhavin& in his possession or under his control an* credits )elon&in& to the ta$pa*er to pa* tothe Commissioner the amount of such de)ts or credits.

Ban6 accounts shall )e &arnished )* servin& a warrant of &arnishment upon the ta$pa*er andupon the president% mana&er% treasurer or other responsi)le officer of the )an6. Upon receiptof the warrant of &arnishment% the )an6 shall tun over to the Commissioner so much of the)an6 accounts as ma* )e sufficient to satisf* the claim of the -overnment.


8/18

EC. 2>A. ale of Propert* Distrained and Disposition of Proceeds. 7 +he RevenueDistrict fficer or his dul* authori9ed representative% other than the officer referred to inSection 2>@ of this Code shall% accordin& to rules and re&ulations prescri)ed )* the Secretar*of Finance% upon recommendation of the Commissioner% forthwith cause a notification to )ee$hi)ited in not less than two 02# pu)lic places in the municipalit* or cit* where the distraint ismade% specif*in&= the time and place of sale and the articles distrained. +he time of sale shallnot )e less than twent* 02># da*s after notice. ne place for the postin& of such notice shall)e at the ffice of the /a*or of the cit* or municipalit* in which the propert* is distrained.

!t the time and place fi$ed in such notice% the said revenue officer shall sell the &oods%chattels% or effects% or other personal propert*% includin& stoc6s and other securities sodistrained% at pu)lic auction% to the hi&hest )idder for cash% or with the approval of theCommissioner% throu&h dul* licensed commodit* or stoc6 e$chan&es.

In the case of Stoc6s and other securities% the officer ma6in& the sale shall e$ecute a )ill ofsale which he shall deliver to the )u*er% and a cop* thereof furnished the corporation%compan* or association which issued the stoc6s or other securities. Upon receipt of the cop*of the )ill of sale% the corporation% compan* or association shall ma6e the correspondin& entr*in its )oo6s% transfer the stoc6s or other securities sold in the name of the )u*er% and issue% ifre8uired to do so% the correspondin& certificates of stoc6 or other securities.

!n* residue over and a)ove what is re8uired to pa* the entire claim% includin& e$penses% shall)e returned to the owner of the propert* sold. +he e$penses char&ea)le upon each sei9ureand sale shall em)race onl* the actual e$penses of sei9ure and preservation of the propert*pendin& =the sale% and no char&e shall )e imposed for the services of the local internalrevenue officer or his deput*.

EC. 2">. Release of Distrained Propert* Upon Pa*ment Prior to ale . 7 If at an* timeprior to the consummation of the sale all proper char&es are paid to the officer conductin& thesale% the &oods or effects distrained shall )e restored to the owner.

EC. 2"". Report of ale to Bureau of Internal Revenue.7 ithin two 02# da*s after thesale% the officer ma6in& the same shall ma6e a report of his proceedin&s in writin& to theCommissioner and shall himself preserve a cop* of such report as an official record.

EC. 2"2. Purchase )* -overnment at ale Upon Distraint. 7 hen the amount )id forthe propert* under distraint is not e8ual to the amount of the ta$ or is ver* much less than theactual mar6et value of the articles offered for sale% the Commissioner or his deput* ma*purchase the same in )ehalf of the national -overnment for the amount of ta$es% penaltiesand costs due thereon.

Propert* so purchased ma* )e resold )* the Commissioner or his deput*% su)(ect to the rules

and re&ulations prescri)ed )* the Secretar* of Finance% the net proceeds therefrom shall )eremitted to the 3ational +reasur* and accounted for as internal revenue.

EC. 2"'. !dvertisement and ale. 7 ithin twent* 02># da*s after lev*% the officerconductin& the proceedin&s shall proceed to advertise the propert* or a usa)le portion thereofas ma* )e necessar* to satisf* the claim and cost of sale= and such advertisement shall covera period of a least thirt* 0'># da*s. It shall )e effectuated )* postin& a notice at the mainentrance of the municipal )uildin& or cit* hall and in pu)lic and conspicuous place in the )arrioor district in which the real estate lies and =)* pu)lication once a wee6 for three 0'# wee6s in anewspaper of &eneral circulation in the municipalit* or cit* where the propert* is located. +headvertisement shall contain a statement of the amount of ta$es and penalties so due and thetime and place of sale% the name of the ta$pa*er a&ainst whom ta$es are levied% and a shortdescription of the propert* to )e sold. !t an* time )efore the da* fi$ed for the sale% theta$pa*er ma* discontinue all proceedin&s )* pa*in& the ta$es% penalties and interest. If hedoes not do so% the sale shall proceed and shall )e held either at the main entrance of themunicipal )uildin& or cit* hall% or on the premises to )e sold% as the officer conductin& theproceedin&s shall determine and as the notice of sale shall specif*.

ithin five 05# da*s after the sale% a return )* the distrainin& or lev*in& officer of theproceedin&s shall )e entered upon the records of the Revenue Collection fficer% theRevenue District officer and the Revenue Re&ional Director. +he Revenue Collection fficer%in consultation with the Revenue district fficer% shall then ma6e out and deliver to thepurchaser a certificate from his records% showin& the proceedin&s of the sale% descri)in& the

propert* sold statin& the name of the purchaser and settin& out the e$act amount of all ta$es%penalties and interest Provided% however% +hat in case the proceeds of the sale e$ceeds theclaim and cost of sale% the e$cess shall )e turned over to the owner of the propert*.

+he Revenue Collection fficer% upon approval )* the Revenue District fficer ma*% out of hiscollection% advance an amount sufficient to defra* the costs of collection )* means of thesummar* remedies provided for in this Code% includin& =the preservation or transportation incase of personal propert*% and the advertisement and su)se8uent sale% )oth in cases ofpersonal and real propert* includin& improvements found on the latter. In his monthl*collection reports% such advances shall )e reflected and supported )* receipts.

EC. 2",. Redemption of Propert* old.7 ithin one 0"# *ear from the date of sale% the

delin8uent ta$pa*er% or an* one for him% shall have the ri&ht of pa*in& to the Revenue Districtfficer the amount of the pu)lic ta$es% penalties% and interest thereon from the date ofdelin8uenc* to the date of sale% to&ether with interest on said purchase price at the rate offifteen percent 0"5# per annum from the date of purchase to the date of redemption% andsuch pa*ment shall entitle the person pa*in& to the deliver* of the certificate issued to thepurchaser and a certificate from the said Revenue District fficer that he has thus redeemedthe propert*% and the Revenue District fficer shall forthwith pa* over to the purchaser theamount )* which such propert* has thus )een redeemed% and said propert* thereafter shall)e free form the lien of such ta$es and penalties.

+he owner shall not% however% )e deprived of the possession of the said propert* and shall )eentitled to the rents and other income thereof until the e$piration of the time allowed for its

redemption.


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EC. 2"5. Forfeiture to -overnment for ant of Bidder.7 In case there is no )idder forreal propert* e$posed for sale as herein a)ove provided or if the hi&hest )id is for an amountinsufficient to pa* the ta$es% penalties and costs% the Internal Revenue fficer conductin& thesale shall declare the propert* forfeited to the -overnment in satisfaction of the claim in8uestion and within two 02# da*s thereafter% shall ma6e a return of his proceedin&s and theforfeiture which shall )e spread upon the records of his office. It shall )e the dut* of theRe&ister of Deeds concerned% upon re&istration with his office of an* such declaration offorfeiture% to transfer the title of the propert* forfeited to the -overnment without the necessit*of an order from a competent court.

ithin one 0"# *ear from the date of such forfeiture% the ta$pa*er% or an* one for him ma*redeem said propert* )* pa*in& to the Commissioner or the latters Revenue Collection fficerthe full amount of the ta$es and penalties% to&ether with interest thereon and the costs of sale%)ut if the propert* )e not thus redeemed% the forfeiture shall )ecome a)solute.

EC. 2":. Resale of Real Estate +a6en for +a$es. 7 +he Commissioner shall havechar&e of an* real estate o)tained )* the -overnment of the Philippines in pa*ment orsatisfaction of ta$es% penalties or costs arisin& under this Code or in compromise orad(ustment of an* claim therefore% and said Commissioner ma*% upon the &ivin& of not lessthan twent* 02># da*s notice% sell and dispose of the same of pu)lic auction or with prior

approval of the Secretar* of Finance% dispose of the same at private sale. In either case% theproceeds of the sale shall )e deposited with the 3ational +reasur*% and an accountin& of thesame shall rendered to the Chairman of the Commission on !udit.

EC. 2"?. Further Distraint or 1ev*. 7 +he remed* )* distraint of personal propert* andlev* on realt* ma* )e repeated if necessar* until the full amount due% includin& all e$penses%is collected.

EC. 2"@. In(unction not !vaila)le to Restrain Collection of +a$. 7 3o court shall havethe authorit* to &rant an in(unction to restrain the collection of an* national internal revenueta$% fee or char&e imposed )* this Code.

EC. 2"A. 3ature and E$tent of +a$ 1ien. 7 If an* person% corporation% partnership% (oint7account 0cuentas en participacion#% association or insurance compan* lia)le to pa* an internalrevenue ta$% ne&lects or refuses to pa* the same after demand% the amount shall )e a lien infavor of the -overnment of the Philippines from the time when the assessment was made )*the Commissioner until paid% with interests% penalties% and costs that ma* accrue in additionthereto upon all propert* and ri&hts to propert* )elon&in& to the ta$pa*er Provided% +hat thislien shall not )e valid a&ainst an* mort&a&ee purchaser or (ud&ment creditor until notice ofsuch lien shall )e filed )* the Commissioner in the office of the Re&ister of Deeds of theprovince or cit* where the propert* of the ta$pa*er is situated or located.

EC. 22>. Form and /ode of Proceedin& in !ctions !risin& under this Code . 7 Civiland criminal actions and proceedin&s instituted in )ehalf of the -overnment under theauthorit* of this Code or other law enforced )* the Bureau of Internal Revenue shall )e

)rou&ht in the name of the -overnment of the Philippines and shall )e conducted )* le&alofficers of the Bureau of Internal Revenue )ut no civil or criminal action for the recover* ofta$es or the enforcement of an* fine% penalt* or forfeiture under this Code shall )e filed incourt without the approval of the Commissioner.

EC. 22". Remed* for Enforcement of tatutor* Penal Provisions . 7 +he remed* forenforcement of statutor* penalties of all sorts shall )e )* criminal or civil action% as theparticular situation ma* re8uire% su)(ect to the approval of the Commissioner.

EC. 222. E$ceptions as to Period of 1imitation of !ssessment and Collection of

+a$es.

0a# In the case of a false or fraudulent return with intent to evade ta$ or of failure to file areturn% the ta$ ma* )e assessed% or a preceedin& in court for the collection of such ta$ ma* )efiled without assessment% at an* time within ten 0"># *ears after the discover* of the falsit*%fraud or omission Provided% +hat in a fraud assessment which has )ecome final ande$ecutor*% the fact of fraud shall )e (udiciall* ta6en co&ni9ance of in the civil or criminal actionfor the collection thereof.

0)# If )efore the e$piration of the time prescri)ed in Section 2>' for the assessment of the ta$%

)oth the Commissioner and the ta$pa*er have a&reed in writin& to its assessment after suchtime% the ta$ ma* )e assessed within the period a&reed upon. +he period so a&reed uponma* )e e$tended )* su)se8uent written a&reement made )efore the e$piration of the periodpreviousl* a&reed upon.

0c# !n* internal revenue ta$ which has )een assessed within the period of limitation asprescri)ed in para&raph 0a# hereof ma* )e collected )* distraint or lev* or )* a proceedin& incourt within five 05# *ears followin& the assessment of the ta$.

0d# !n* internal revenue ta$% which has )een assessed within the period a&reed upon asprovided in para&raph 0)# hereina)ove% ma* )e collected )* distraint or lev* or )* a

proceedin& in court within the period a&reed upon in writin& )efore the e$piration of the five05# 7*ear period. +he period so a&reed upon ma* )e e$tended )* su)se8uent writtena&reements made )efore the e$piration of the period previousl* a&reed upon.

0e# Provided% however% +hat nothin& in the immediatel* precedin& and para&raph 0a# hereofshall )e construed to authori9e the e$amination and investi&ation or in8uir* into an* ta$ returnfiled in accordance with the provisions of an* ta$ amnest* law or decree.

EC. 22'. uspension of Runnin& of tatute of 1imitations . 7 +he runnin& of the Statuteof 1imitations provided in Sections 2>' and 222 on the ma6in& of assessment and the)e&innin& of distraint or lev* a proceedin& in court for collection% in respect of an* deficienc*%shall )e suspended for the period durin& which the Commissioner is prohi)ited from ma6in&

the assessment or )e&innin& distraint or lev* or a proceedin& in court and for si$t* 0:># da*sthereafter= when the ta$pa*er re8uests for a reinvesti&ation which is &ranted )* the


10/18

Commissioner= when the ta$pa*er cannot )e located in the address &iven )* him in the returnfiled upon which a ta$ is )ein& assessed or collected Provided% that% if the ta$pa*er informsthe Commissioner of an* chan&e in address% the runnin& of the Statute of 1imitations will not)e suspended= when the warrant of distraint or lev* is dul* served upon the ta$pa*er% hisauthori9ed representative% or a mem)er of his household with sufficient discretion% and nopropert* could )e located= and when the ta$pa*er is out of the Philippines.

EC. 22,. Remed* for Enforcement of Forfeitures. 7 +he forfeiture of chattels and

remova)le fi$tures of an* sort shall )e enforced )* the sei9ure and sale% or destruction% of thespecific forfeited propert*. +he forfeiture of real propert* shall )e enforced )* a (ud&ment ofcondemnation and sale in a le&al action or proceedin&% civil or criminal% as the case ma*re8uire.

EC. 225. hen Propert* to )e old or Destro*ed. 7 Sales of forfeited chattels andremova)le fi$tures shall )e effected% so far as practica)le% in the same manner and under thesame conditions as the pu)lic notice and the time and manner of sale as are prescri)ed forsales of personal propert* distrained for the non7pa*ment of ta$es.

Distilled spirits% li8uors% ci&ars% ci&arettes% other manufactured products of to)acco% and allapparatus used I or a)out the illicit production of such articles ma*% upon forfeiture% )e

destro*ed )* order of the Commissioner% when the sale of the same for consumption or usewould )e in(urious to pu)lic health or pre(udicial to the enforcement of the law.

!ll other articles su)(ect to e$cise ta$% which have )een manufactured or removed in violationof this Code% as well as dies for the printin& or ma6in& of internal revenue stamps and la)elswhich are in imitation of or purport to )e lawful stamps% or la)els ma*% upon forfeiture% )e soldor destro*ed in the discretion of the Commissioner.

Forfeited propert* shall not )e destro*ed until at least twent* 02># da*s after sei9ure.

EC. 22:. Disposition of funds Recovered in 1e&al Proceedin&s or )tained from

Forfeitures. 7 all (ud&ments and monies recovered and received for ta$es% costs% forfeitures%fines and penalties shall )e paid to the Commissioner or his authori9ed deputies as the ta$esthemselves are re8uired to )e paid% and e$cept as speciall* provided% shall )e accounted forand dealt with the same wa*.

EC. 22?. atisfaction of Gud&ment Recovered !&ainst an* Internal Revenue

fficer.7 hen an action is )rou&ht a&ainst an* Internal Revenue officer to recover dama&es)* reason of an* act done in the performance of official dut*% and the Commissioner is notifiedof such action in time to ma6e defense a&ainst the same% throu&h the Solicitor -eneral% an*(ud&ment% dama&es or costs recovered in such action shall )e satisfied )* the Commissioner%upon approval of the Secretar* of Finance% or if the same )e paid )* the person used shall )erepaid or reim)ursed to him.

3o such (ud&ment% dama&es% or costs shall )e paid or reim)ursed in )ehalf of a person whohas acted ne&li&entl* or in )ad faith% or with willful oppression.

EC. 22@. Protestin& of !ssessment. 7 hen the Commissioner or his dul* authori9edrepresentative finds that proper ta$es should )e assessed% he shall first notif* the ta$pa*er ofhis findin&s provided% however% +hat a preassessment notice shall not )e re8uired in thefollowin& cases

0a# hen the findin& for an* deficienc* ta$ is the result of mathematical error in thecomputation of the ta$ as appearin& on the face of the return= or

0)# hen a discrepanc* has )een determined )etween the ta$ withheld and theamount actuall* remitted )* the withholdin& a&ent= or

0c# hen a ta$pa*er who opted to claim a refund or ta$ credit of e$cess credita)lewithholdin& ta$ for a ta$a)le period was determined to have carried over andautomaticall* applied the same amount claimed a&ainst the estimated ta$ lia)ilitiesfor the ta$a)le 8uarter or 8uarters of the succeedin& ta$a)le *ear= or

0d# hen the e$cise ta$ due on e$cisea)le articles has not )een paid= or

0e# hen the article locall* purchased or imported )* an e$empt person% such as%)ut not limited to% vehicles% capital e8uipment% machineries and spare parts% has)een sold% traded or transferred to non7e$empt persons.

+he ta$pa*ers shall )e informed in writin& of the law and the facts on which the assessment ismade= otherwise% the assessment shall )e void.

ithin a period to )e prescri)ed )* implementin& rules and re&ulations% the ta$pa*er shall )ere8uired to respond to said notice. If the ta$pa*er fails to respond% the Commissioner or hisdul* authori9ed representative shall issue an assessment )ased on his findin&s.

Such assessment ma* )e protested administrativel* )* filin& a re8uest for reconsideration orreinvesti&ation within thirt* 0'># da*s from receipt of the assessment in such form and manneras ma* )e prescri)ed )* implementin& rules and re&ulations.ithin si$t* 0:># da*s from filin& of the protest% all relevant supportin& documents shall have)een su)mitted= otherwise% the assessment shall )ecome final.

If the protest is denied in whole or in part% or is not acted upon within one hundred ei&ht* 0"@>#da*s from su)mission of documents% the ta$pa*er adversel* affected )* the decision orinaction ma* appeal to the Court of +a$ !ppeals within thirt* 0'># da*s from receipt of the saiddecision% or from the lapse of one hundred ei&ht* 0"@>#7da* period= otherwise% the decisionshall )ecome final% e$ecutor* and demanda)le.


11/18

EC. 22A. Recover* of +a$ Erroneousl* or Ille&all* Collected. 7 no suit or proceedin&shall )e maintained in an* court for the recover* of an* national internal revenue ta$ hereafteralle&ed to have )een erroneousl* or ille&all* assessed or collected% or of an* penalt* claimedto have )een collected without authorit*% of an* sum alle&ed to have )een e$cessivel* or inan* manner wron&full* collected without authorit*% or of an* sum alle&ed to have )eene$cessivel* or in an* manner wron&full* collected% until a claim for refund or credit has )eendul* filed with the Commissioner= )ut such suit or proceedin& ma* )e maintained% whether ornot such ta$% penalt*% or sum has )een paid under protest or duress.

In an* case% no such suit or proceedin& shall )e filed after the e$piration of two 02# *ears fromthe date of pa*ment of the ta$ or penalt* re&ardless of an* supervenin& cause that ma* ariseafter pa*ment Provided% however% +hat the Commissioner ma*% even without a written claimtherefor% refund or credit an* ta$% where on the face of the return upon which pa*ment wasmade% such pa*ment appears clearl* to have )een erroneousl* paid.

EC. 2'>. Forfeiture of Cash Refund and of +a$ Credit.

0!# Forfeiture of Refund. 7 ! refund chec6 or warrant issued in accordance with thepertinent provisions of this Code% which shall remain unclaimed or uncashed within five 05#

*ears from the date the said warrant or chec6 was mailed or delivered% shall )e forfeited infavor of the -overnment and the amount thereof shall revert to the &eneral fund.

0B# Forfeiture of +a$ Credit. 7 ! ta$ credit certificate issued in accordance with the pertinentprovisions of this Code% which shall remain unutili9ed after five 05# *ears from the date ofissue% shall% unless revalidated% )e considered invalid% and shall not )e allowed as pa*mentfor internal revenue ta$ lia)ilities of the ta$pa*er% and the amount covered )* the certificateshall revert to the &eneral fund.

0C# +ransitor* Provision.7 For purposes of the precedin& Su)section% a ta$ credit certificateissued )* the Commissioner or his dul* authori9ed representative prior to Ganuar* "% "AA@%which remains unutili9ed or has a credita)le )alance as of said date% shall )e presented forrevalidation with the Commissioner or his dul* authori9ed representative or on )efore Gune'>% "AA@.

EC. 2'". !ction to Contest Forfeiture of Chattel.7 In case of the sei9ure of personalpropert* under claim of forfeiture% the owner desirin& to contest the validit* of the forfeiturema*% at an* time )efore sale or destruction of the propert*% )rin& an action a&ainst the personsei9in& the propert* or havin& possession thereof to recover the same% and upon &ivin&proper )ond% ma* en(oin the sale= or after the sale and within si$ 0:# months% he ma* )rin& anaction to recover the net proceeds reali9ed at the sale.

EC. 2,?. -eneral Provisions. 7

0a# +he additions to the ta$ or deficienc* ta$ prescri)ed in this Chapter shall appl* to all ta$es%fees and char&es imposed in this Code. +he !mount so added to the ta$ shall )e collected atthe same time% in the same manner and as part of the ta$.

0)# If the withholdin& a&ent is the -overnment or an* of its a&encies% political su)divisions orinstrumentalities% or a &overnment7owned or controlled corporation% the emplo*ee thereofresponsi)le for the withholdin& and remittance of the ta$ shall )e personall* lia)le for theadditions to the ta$ prescri)ed herein.

0c# the term person % as used in this Chapter% includes an officer or emplo*ee of a corporationwho as such officer% emplo*ee or mem)er is under a dut* to perform the act in respect ofwhich the violation occurs.

EC. 2,@. 7 Civil Penalties. 7

0!# +here shall )e imposed% in addition to the ta$ re8uired to )e paid% a penalt* e8uivalent totwent*7five percent 025# of the amount due% in the followin& cases

0"# Failure to file an* return and pa* the ta$ due thereon as re8uired under theprovisions of this Code or rules and re&ulations on the date prescri)ed= or

02# Unless otherwise authori9ed )* the Commissioner% filin& a return with an internalrevenue officer other than those with whom the return is re8uired to )e filed= or

0'# Failure to pa* the deficienc* ta$ within the time prescri)ed for its pa*ment in thenotice of assessment= or

0,# Failure to pa* the full or part of the amount of ta$ shown on an* return re8uiredto )e filed under the provisions of this Code or rules and re&ulations% or the fullamount of ta$ due for which no return is re8uired to )e filed% on or )efore the dateprescri)ed for its pa*ment.

0B# In case of willful ne&lect to file the return within the period prescri)ed )* this Code or )*rules and re&ulations% or in case a false or fraudulent return is willfull* made% the penalt* to )eimposed shall )e fift* percent 05># of the ta$ or of the deficienc* ta$% in case% an* pa*menthas )een made on the )asis of such return )efore the discover* of the falsit* or fraudProvided% +hat a su)stantial underdeclaration of ta$a)le sales% receipts or income% or asu)stantial overstatement of deductions% as determined )* the Commissioner pursuant to therules and re&ulations to )e promul&ated )* the Secretar* of Finance% shall constitute primafacie evidence of a false or fraudulent return Provided% further% +hat failure to report sales%receipts or income in an amount e$ceedin& thirt* percent 0'># of that declared per return%and a claim of deductions in an amount e$ceedin& 0'># of actual deductions% shall renderthe ta$pa*er lia)le for su)stantial underdeclaration of sales% receipts or income or for

overstatement of deductions% as mentioned herein.


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EC. 2,A. Interest. 7

0!# In -eneral. 7 +here shall )e assessed and collected on an* unpaid amount of ta$%interest at the rate of twent* percent 02># per annum% or such hi&her rate as ma* )eprescri)ed )* rules and re&ulations% from the date prescri)ed for pa*ment until the amount isfull* paid.

0B# Deficienc* Interest.7 !n* deficienc* in the ta$ due% as the term is defined in this Code%

shall )e su)(ect to the interest prescri)ed in Su)section 0!# hereof% which interest shall )eassessed and collected from the date prescri)ed for its pa*ment until the full pa*ment thereof.

0C# Delin8uenc* Interest.7 In case of failure to pa*

0"# +he amount of the ta$ due on an* return to )e filed% or

02# +he amount of the ta$ due for which no return is re8uired% or

0'# ! deficienc* ta$% or an* surchar&e or interest thereon on the due date appearin&in the notice and demand of the Commissioner% there shall )e assessed and

collected on the unpaid amount% interest at the rate prescri)ed in Su)section 0!#hereof until the amount is full* paid% which interest shall form part of the ta$.

0D# Interest on E$tended Pa*ment. 7 If an* person re8uired to pa* the ta$ is 8ualified andelects to pa* the ta$ on installment under the provisions of this Code% )ut fails to pa* the ta$or an* installment hereof% or an* part of such amount or installment on or )efore the dateprescri)ed for its pa*ment% or where the Commissioner has authori9ed an e$tension of timewithin which to pa* a ta$ or a deficienc* ta$ or an* part thereof% there shall )e assessed andcollected interest at the rate hereina)ove prescri)ed on the ta$ or deficienc* ta$ or an* partthereof unpaid from the date of notice and demand until it is paid.

EC. 25>. Failure to File Certain Information Returns. 7 In the case of each failure to file

an information return% statement or list% or 6eep an* record% or suppl* an* information re8uired)* this Code or )* the Commissioner on the date prescri)ed therefor% unless it is shown thatsuch failure is due to reasona)le cause and not to willful ne&lect% there shall% upon notice anddemand )* the Commisssioner% )e paid )* the person failin& to file% 6eep or suppl* the same%ne thousand pesos 0"%>>># for each failure Provided% however% +hat the a&&re&ate amountto )e imposed for all such failures durin& a calendar *ear shall not e$ceed +went*7fivethousand pesos 0P25%>>>#.

EC. 25". Failure of a ithholdin& !&ent to Collect and Remit +a$. 7 !n* personre8uired to withhold% account for% and remit an* ta$ imposed )* this Code or who willfull* failsto withhold such ta$% or account for and remit such ta$% or aids or a)ets in an* manner toevade an* such ta$ or the pa*ment thereof% shall% in addition to other penalties provided for

under this Chapter% )e lia)le upon conviction to a penalt* e8ual to the total amount of the ta$not withheld% or not accounted for and remitted.

EC. 252. Failure of a ithholdin& !&ent to refund E$cess ithholdin& +a$. 7 !n*emplo*erwithholdin& a&ent who fails or refuses to refund e$cess withholdin& ta$ shall% inaddition to the penalties provided in this +itle% )e lia)le to a penalt* to the total amount ofrefunds which was not refunded to the emplo*ee resultin& from an* e$cess of the amountwithheld over the ta$ actuall* due on their return.

EC. 25'. -eneral Provisions. 7

0a# !n* person convicted of a crime penali9ed )* this Code shall% in addition to )ein& lia)le forthe pa*ment of the ta$% )e su)(ect to the penalties imposed herein Provided% +hat pa*ment ofthe ta$ due after apprehension shall not constitute a valid defense in an* prosecution forviolation of an* provision of this Code or in an* action for the forfeiture of unta$ed articles.

0)# !n* person who willfull* aids or a)ets in the commission of a crime penali9ed herein orwho causes the commission of an* such offense )* another shall )e lia)le in the samemanner as the principal.

0c# If the offender is not a citi9en of the Philippines% he shall )e deported immediatel* afterservin& the sentence without further proceedin&s for deportation. If he is a pu)lic officer oremplo*ee% the ma$imum penalt* prescri)ed for the offense shall )e imposed and% in addition%

he shall )e dismissed from the pu)lic service and perpetuall* dis8ualified from holdin& an*pu)lic office% to vote and to participate in an* election. If the offender is a Certified Pu)lic!ccountant% his certificate as a Certified Pu)lic !ccountant shall% upon conviction% )eautomaticall* revo6ed or cancelled.

0d# In the case of associations% partnerships or corporations% the penalt* shall )e imposed onthe partner% president% &eneral mana&er% )ranch mana&er% treasurer% officer7in7char&e% and theemplo*ees responsi)le for the violation.

0e# +he fines to )e imposed for an* violation of the provisions of this Code shall not )e lowerthan the fines imposed herein or twice the amount of ta$es% interest and surchar&es due from

the ta$pa*er% whichever is hi&her.

EC. 25,. !ttempt to Evade or Defeat +a$. 7 !n* person who willfull* attempts in an*manner to evade or defeat an* ta$ imposed under this Code or the pa*ment thereof shall% inaddition to other penalties provided )* law% upon conviction thereof% )e punished )* a fine notless than +hirt* thousand 0P'>%>>># )ut not more than ne hunderd thousand pesos0P">>%>>># and suffer imprisonment of not less than two 02# *ears )ut not more than four 0,#*ears Provided% +hat the conviction or ac8uittal o)tained under this Section shall not )e a )arto the filin& of a civil suit for the collection of ta$es.

EC. 255. Failure to File Return% uppl* Correct and !ccurate Information% Pa* +a$

ithhold and Remit +a$ and Refund E$cess +a$es ithheld on Compensation. 7 !n*

person re8uired under this Code or )* rules and re&ulations promul&ated thereunder to pa*an* ta$ ma6e a return% 6eep an* record% or suppl* correct the accurate information% who


13/18

willfull* fails to pa* such ta$% ma6e such return% 6eep such record% or suppl* correct andaccurate information% or withhold or remit ta$es withheld% or refund e$cess ta$es withheld oncompensation% at the time or times re8uired )* law or rules and re&ulations shall% in addition toother penalties provided )* law% upon conviction thereof% )e punished )* a fine of not lessthan +en thousand pesos 0P">%>>># and suffer imprisonment of not less than one 0"# *ear )utnot more than ten 0"># *ears.

!n* person who attempts to ma6e it appear for an* reason that he or another has in fact filed

a return or statement% or actuall* files a return or statement and su)se8uentl* withdraws thesame return or statement after securin& the official receivin& seal or stamp of receipt ofinternal revenue office wherein the same was actuall* filed shall% upon conviction therefor% )epunished )* a fine of not less than +en thousand pesos 0P">%>>># )ut not more than +went*thousand pesos 0P2>%>>># and suffer imprisonment of not less than one 0"# *ear )ut not morethan three 0'# *ears.

EC. 25:. Penal 1ia)ilit* of Corporations. 7 !n* corporation% association or &eneral co7partnership lia)le for an* of the acts or omissions penali9ed under this Code% in addition to thepenalties imposed herein upon the responsi)le corporate officers% partners% or emplo*eesshall% upon conviction for each act or omission% )e punished )* a fine of not less than Fift*thousand pesos 0P5>%>>># )ut not more than ne hundred thousand pesos 0P">>%>>>#.

EC. 25?. Penal 1ia)ilit* for /a6in& False Entries% Records or Reports% or Usin&

Falsified or Fa6e !ccounta)le Forms. 7

0!# !n* financial officer or independent Certified Pu)lic !ccountant en&a&ed to e$amine andaudit )oo6s of accounts of ta$pa*ers under Section 2'2 0!# and an* person under hisdirection who

0"# illfull* falsifies an* report or statement )earin& on an* e$amination or audit% orrenders a report% includin& e$hi)its% statements% schedules or other forms ofaccountanc* wor6 which has not )een verified )* him personall* or under hissupervision or )* a mem)er of his firm or )* a mem)er of his staff in accordance

with sound auditin& practices= or

02# Certifies financial statements of a )usiness enterprise containin& an essentialmisstatement of facts or omission in respect of the transactions% ta$a)le income%deduction and e$emption of his client= or

0B# !n* person who0"# 3ot )ein& an independent Certified Pu)lic !ccountant accordin& to Section2'20B# or a financial officer% e$amines and audits )oo6s of accounts of ta$pa*ers= or02# ffers to si&n and certif* financial statements without audit= or

0'# ffers an* ta$pa*er the use of accountin& )oo66eepin& records for internalrevenue purposes not in conformit* with the re8uirements prescri)ed in this Code orrules and re&ulations promul&ated thereunder= or

0,# nowin&l* ma6es an* false entr* or enters an* false or fictitious name in the)oo6s of accounts or record mentioned in the precedin& para&raphs= or

05# eeps two 02# or more sets of such records or )oo6s of accounts= or

0:# In an* wa* commits an act or omission% in violation of the provisions of thisSection= or

0?# Fails to 6eep the )oo6s of accounts or records mentioned in Section 2'2 in anative lan&ua&e% En&lish or Spanish% or to ma6e a true and complete translation asre8uired in Section 2', of this Code% or whose )oo6s of accounts or records 6ept ina native lan&ua&e% En&lish or Spanish% and found to )e at material variance with)oo6s or records 6ept )* him in another lan&ua&e= or

0@# illfull* attempts in an* manner to evade or defeat an* ta$ imposed under thisCode% or 6nowin&l* uses fa6e or falsified revenue official receipts% 1etters of!uthorit*% certificates authori9in& re&istration% +a$ Credit Certificates% +a$ De)it/emoranda and other accounta)le forms shall% upon conviction for each act oromission% )e punished )* a fine not less than Fift* thousand pesos 0P5>%>>># )utnot more than ne hundred pesos 0P">>%>>># and suffer imprisonment of not lessthan two 02# *ears )ut not more than si$ 0:# *ears.

If the offender is a Certified Pu)lic !ccountant% his certificate as a Certified Pu)lic !ccountantshall )e automaticall* revo6ed or cancelled upon conviction.

In the case of forei&ners% conviction under this Code shall result in his immediate deportationafter servin& sentence% without further proceedin&s for deportation.

EC. 25@. Unlawful Pursuit of Business. 7 !n* person who carries on an* )usiness forwhich an annual re&istration fee is imposed without pa*in& the ta$ as re8uired )* law shall%upon conviction for each act or omission% )e punished )* a fine of not less than Five thousandpesos 0P5%>>># )ut not more than +went* thousand pesos 0P2>%>>># and suffer imprisonmentof not less than si$ 0:# months )ut not more than two 02# *ears Provided% +hat in the case of aperson en&a&ed in the )usiness of distillin&% rectif*in&% repac6in&% compoundin& ormanufacturin& an* article su)(ect to e$cise ta$% he shall% upon conviction for each act oromission% )e punished )* a fine of not less than +hirt* thousand pesos 0P'>%>>># )ut notmore than Fift* thousand pesos 0P5>%>>># and suffer imprisonment of not less than two 02#*ears )ut not more than four 0,# *ears.

EC. 25A. I l le&al Collection of Forei&n Pa*ments. 7 !n* person who 6nowin&l*underta6es the collection of forei&n pa*ments as provided under Section :? of this Code


14/18

without havin& o)tained a license therefor% or without compl*in& with its implementin& rulesand re&ulations% shall% upon conviction for each act or omission% )e punished )* a fine of notless than +went* thousand pesos 0P2>%>>># )ut not more than Fift* thousand pesos0P5>%>>># and suffer imprisonment of not less than one 0"# *ear )ut not more than two 02#*ears.

EC. 2:>. Unlawful Possession of Ci&arette Paper in Bo))ins or Rolls% Etc. 7 It shall)e unlawful for an* person to have in his possession ci&arette paper in )o))ins or rolls%

ci&arette tippin& paper or ci&arette filter tips% without the correspondin& authorit* thereforissued )* the Commissioner. !n* person% importer% manufacturer of ci&ar and ci&arettes% whohas )een found &uilt* under this Section% shall% upon conviction for each act or omission% )epunished )* a fine of not less than +went* thousand pesos 0P2>%>>># )ut not more than nehundred thousand pesos 0P">>>%>>># and suffer imprisonment for a term of not less than si$0:# *ears and one 0"# da* )ut not more than twelve 0"2# *ears.

EC. 2:". Unlawful Use of Denatured !lcohol. 7 !n* person who for the purpose ofmanufacturin& an* )evera&e% uses denatured alcohol or alcohol speciall* denatured to )eused for motive power or withdrawn under )ond for industrial uses or alcohol 6nowin&l*misrepresented to )e denatured to )e unfit for oral inta6e or who 6nowin&l* sells or offers forsale an* )evera&e made in whole or in part from such alcohol or who uses such alcohol for

the manufacture of li8uid medicinal preparations ta6en internall*% or 6nowin&l* sells or offersfor sale such preparations containin& as an in&redient such alcohol% shall upon conviction foreach act or omission )e punished )* a fine of not less than +went* thousand pesos 0P2>%>>>#)ut not more than ne hundred thousand pesos 0P">>%>>># and suffer imprisonment for aterm of not less than si$ 0:# *ears and one 0"# da* )ut not more than twelve 0"2# *ears.

!n* person who shall unlawfull* recover or attempt to recover )* distillation or other processan* denatured alcohol or who 6nowin&l* sells or offers for sale% conceals or otherwisedisposes of alcohol so recovered or redistilled shall )e su)(ect to the same penalties imposedunder this Section.

EC. 2:2. hipment or Removal of 1i8uor or +o)acco Products under False 3ame

or Brand or as an Imitation of an* E$istin& or therwise nown Product 3ame or

Brand. 7!n* person who ships% transports or removes spirituous% compounded or fermentedli8uors% wines or an* manufactured products of to)acco under an* other than the proper nameor )rand 6nown to the trade as desi&natin& the 6ind and 8ualit* of the contents of the cas6%)ottle or pac6a&e containin& the same or as an imitation of an* e$istin& or otherwise 6nownproduct name or )rand or causes such act to )e done% shall% upon conviction for each act oromission% )e punished )* a fine of not less than +went* thousand pesos 0P2>%>>># )ut notmore than ne hundred thousand pesos 0P">>>%>>># and suffer imprisonment of not lessthan si$ 0:# *ears and one 0"# da* )ut not more than twelve 0"2# *ears.

EC. 2:'. Unlawful Possession or Removal of !rticles u)(ect to E$cise +a$ without

Pa*ment of the +a$. 7 !n* person who owns andor is found in possession of imported

articles su)(ect to e$cise ta$% the ta$ on which has not )een paid in accordance with law% or

an* person who owns andor is found in possession of imported ta$7e$empt articles other thanthose to whom the* are le&all* issued shall )e punished )*

0a# ! fine of not less than ne thousand pesos 0P"%>>># nor more than +wothousand pesos 0P2%>>># and suffer imprisonment of not less than si$t* 0:># da*s)ut not more than one hundred 0">># da*s% if the appraised value% to )e determinedin the manner prescri)ed in the +ariff and Customs Code% includin& duties andta$es% of the articles does not e$ceed ne thousand pesos 0P"%>>>#.

0)# ! fine of not less than +en thousand pesos 0P">%>>># )ut not more than +went*thousand pesos 0P2>%>>># and suffer imprisonment of not less than two 02# *ears)ut not more than four 0,# *ears% if the appraised value% to )e determined in themanner prescri)ed in the +ariff and Customs Code% includin& duties and ta$es% ofthe articles e$ceeds ne thousand pesos 0P"%>>># )ut does not e$ceed Fift*thousand pesos 0P5>%>>>#=

0c# ! fine of not less than +hirt* thousand pesos 0P'>%>>># )ut not more than Si$t*thousand pesos 0P:>%>>># and suffer imprisonment of not less than four 0,# *ears)ut not more than si$ 0:# *ears% if the appraised value% to )e determined in themanner prescri)ed in the +ariff and Customs Code% includin& duties and ta$es of the

articles is more than Fift* thousand pesos 0P5>%>>># )ut does not e$ceed nehundred fift* thousand pesos 0P"5>%>>>#= or

0d# ! fine of not less than Fift* thousand pesos 0P5>%>>># )ut not more than nehundred thousand pesos 0P">>%>>># and suffer imprisonment of not less than ten0"># *ears )ut not more than twelve 0"2# *ears% if the appraised value% to )edetermined in the manner prescri)ed in the +ariff and Customs Code% includin&duties and ta$es% of the articles e$ceeds ne hundred fift* thousand pesos0P"5>%>>>#.

!n* person who is found in possession of locall* manufactured articles su)(ect to e$cise ta$%the ta$ on which has not )een paid in accordance with law% or an* person who is found in

possession of such articles which are e$empt from e$cise ta$ other than those to whom thesame is lawfull* issued shall )e punished with a fine of not less than 0"># times the amount ofe$cise ta$ due on the articles found )ut not less than Five hundred pesos 0P5>># and sufferimprisonment of not less than two 02# *ears )ut not more than four 0,# *ears.

!n* manufacturer% owner or person in char&e of an* article su)(ect to e$cise ta$ who removesor allows or causes the unlawful removal of an* such articles from the place of production or)onded warehouse% upon which the e$cise ta$ has not )een paid at the time and in themanner re8uired% and an* person who 6nowin&l* aids or a)ets in the removal of such articlesas aforesaid% or conceals the same after ille&al removal shall% for the first offense% )e punishedwith a fine of not less than ten 0"># times the amount of e$cise ta$ due on the articles )ut notless than ne thousand pesos 0P"%>>># and suffer imprisonment of not less than one 0"# *ear)ut not more than two 02# *ears.


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+he mere une$plained possession of articles su)(ect to e$cise ta$% the ta$ on which has not)een paid in accordance with law% shall )e punisha)le under this Section.

ec. 2:,. Failure or refusal to Issue Receipts or ales or Commercial Invoices%

4iolations related to the Printin& of such Receipts or Invoices and ther 4iolations. 7

0a# !n* person who% )ein& re8uired under Section 2'? to issue receipts or sales orcommercial invoices% fails or refuses to issue such receipts of invoices% issues receipts or

invoices that do not trul* reflect andor contain all the information re8uired to )e showntherein% or uses multiple or dou)le receipts or invoices% shall% upon conviction for each act oromission% )e punished )* a fine of not less than ne thousand pesos 0P"%>>># )ut not morethan Fift* thousand pesos 0P5>%>>># and suffer imprisonment of not less than two 02# *ears)ut not more than four 0,# *ears.

0)# !n* person who commits an* of the acts enumerated hereunder shall )e penali9ed in thesame manner and to the same e$tent as provided for in this Section

0"# Printin& of receipts or sales or commercial invoices without authorit* from theBureau of Internal Revenue= or

02# Printin& of dou)le or multiple sets of invoices or receipts= or

0'# Printin& of unnum)ered receipts or sales or commercial invoices% not )earin& thename% )usiness st*le% +a$pa*er Identification 3um)er% and )usiness address of theperson or entit*.

EC. 2:5. ffenses Relatin& to tamps. 7 !n* person who commits an* of the actsenumerated hereunder shall% upon conviction thereof% )e punished )* a fine of not less than+went* thousand pesos 0P2>%>>># )ut not more than Fift* thousand pesos 0P5>%>>># andsuffer imprisonment of not less than four 0,# *ears )ut not more than ei&ht 0@# *ears

0a# ma6in&% importin&% sellin&% usin& or possessin& without e$press authorit* from

the Commissioner% an* die for printin& or ma6in& stamps% la)els% ta&s or pla*in&cards=

0)# Erasin& the cancellation mar6s of an* stamp previousl* used% or alterin& thewritten fi&ures or letters or cancellation mar6s on internal revenue stamps=

0c# Possessin& false% counterfeit% restored or altered stamps% la)els or ta&s orcausin& the commission of an* such offense )* another=

0d# Sellin& or offerin& for sale an* )o$ or pac6a&e containin& articles su)(ect toe$cise ta$ with false% spurious or counterfeit stamps or la)els or sellin& from an*such fraudulent )o$% pac6a&e or container as aforementioned= or

0e# -ivin& awa* or acceptin& from another% or sellin&% )u*in& or usin& containers onwhich the stamps are not completel* destro*ed.

ec. 2::. Failure to )e* ummons. 7 !n* person who% )ein& dul* summoned to appearto testif*% or to appear and produce )oo6s of accounts% records% memoranda or other papers%or to furnish information as re8uired under the pertinent provisions of this Code% ne&lects toappear or to produce such )oo6s of accounts% records% memoranda or other papers% or tofurnish such information% shall% upon conviction% )e punished )* a fine of not less than Five

thousand pesos 0P5%>>># )ut not more than ten thousand pesos 0P">%>>># and sufferimprisonment of not less than one 0"# *ear )ut not more than two 02# *ears.

EC. 2:?. Declaration under Penalties of Per(ur*. 7 !n* declaration% return and otherstatement re8uired under this Code% shall% in lieu of an oath% contain a written statement thatthe* are made under the penalties of per(ur*. !n* person who willfull* files a declaration%return or statement containin& information which is not true and correct as to ever* materialmatter shall% upon conviction% )e su)(ect to the penalties prescri)ed for per(ur* under theRevised Penal Code.

EC. 2:@. ther Crimes and ffenses. 7

0!# /isdeclaration or /isrepresentation of /anufacturers u)(ect to E$cise +a$. 7!n* manufacturer who% in violation of the provisions of +itle 4I of this Code% misdeclares in thesworn statement re8uired therein or in the sales invoice% an* pertinent data or informationshall )e punished )* a summar* cancellation or withdrawal of the permit to en&a&e in)usiness as a manufacturer of articles su)(ect to e$cise ta$.

0B# Forfeiture of Propert* Used in Unlicensed Business or Dies Used for Printin&

False tamps% Etc.7 !ll chattels% machiner*% and remova)le fi$tures of an* sort used in theunlicensed production of articles su)(ect to e$cise ta$ shall )e forfeited. Dies and othere8uipment used for the printin& or ma6in& of an* internal revenue stamp% la)el or ta& which isin imitation of or purports to )e a lawful stamp% la)el or ta& shall also )e forfeited.

0C# Forfeiture of -oods Ille&all* tored or Removed. 7 Unless otherwise specificall*authori9ed )* the Commissioner% all articles su)(ect to e$cise ta$ should not )e stored orallowed to remain in the distiller* warehouse% )onded warehouse or other place where made%after the ta$ thereon has )een paid= otherwise% all such articles shall )e forfeited. !rticleswithdrawn from an* such place or from customs custod* or imported into the countr* withoutthe pa*ment of the re8uired ta$ shall li6ewise )e forfeited.

EC. 2:A. 4iolations Committed )* -overnment Enforcement fficers. 7 Ever* official%a&ent% or emplo*ee of the Bureau of Internal Revenue or an* other a&enc* of the -overnmentchar&ed with the enforcement of the provisions of this Code% who is &uilt* of an* of theoffenses herein )elow specified shall% upon conviction for each act or omission% )e punished

)* a fine of not less than Fift* thousand pesos 0P5>%>>># )ut not more than ne hundredthousand pesos 0P">>%>>># and suffer imprisonment of not less than ten 0"># *ears )ut not


16/18

more than fifteen 0"5# *ears and shall li6ewise suffer an additional penalt* of perpetualdis8ualification to hold pu)lic office% to vote% and to participate in an* pu)lic election

0a# E$tortion or willful oppression throu&h the use of his office or willful oppressionand harassment of a ta$pa*er who refused% declined% turned down or re(ected an*of his offers specified in para&raph 0d# hereof=

0)# nowin&l* demandin& or receivin& an* fee% other or &reater sums that are

authori9ed )* law or receivin& an* fee% compensation or reward% e$cept as )* lawprescri)ed% for the performance of an* dut*=

0c# illfull* ne&lectin& to &ive receipts% as )* law re8uired% for an* sum collected inthe performance of dut* or willfull* ne&lectin& to perform an* other duties en(oined)* law=

0d# fferin& or underta6in& to accomplish% file or su)mit a report or assessment on ata$pa*er without the appropriate e$amination of the )oo6s of accounts or ta$lia)ilit*% or offerin& or underta6in& to su)mit a report or assessment less than theamount due the -overnment for an* consideration or compensation% or conspirin&or colludin& with another or others to defraud the revenues or otherwise violate the

provisions of this Code=

0e# 3e&lectin& or )* desi&n permittin& the violation of the law )* an* other person=

0f# /a6in& or si&nin& an* false entr* or entries in an* )oo6% or ma6in& or si&nin& an*false certificate or return=

0 !llowin& or conspirin& or colludin& with another to allow the unauthori9edretrieval% withdrawal or recall of an* return% statement or declaration after the samehas )een officiall* received )* the Bureau of Internal Revenue=

0h# . Unlawful Divul&ence of +rade ecrets. 7 E$cept as provided in Section ?" ofthis Code and Section 2: of Repu)lic !ct 3o. :'@@% an* officer or emplo*ee of the Bureau ofInternal Revenue who divul&es to an* person or ma6es 6nown in an* other manner than ma*

)e provided )* law information re&ardin& the )usiness% income or estate of an* ta$pa*er% thesecrets% operation% st*le or wor6% or apparatus of an* manufacturer or