THENATIONAL INTERNAL REVENUE CODEOF THE PHILIPPINES[Tax Reform Act of 1997]Republic Act No. 8424AN ACT
AMENDING
THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR
OTHER
PURPOSES
TITLE IXCOMPLIANCE
REQUIREMENTSCHAPTER
IIIRULES AND
REGULATIONS
SEC.
244. Authority of Secretary of Finance to Promulgate Rules and
Regulations.
-The
Secretary of Finance, upon recommendation of the Commissioner, shall
promulgate
all needful rules and regulations for the effective enforcement of the
provisions of this Code.
SEC.
245. Specific Provisions to be Contained in Rules and Regulations. -
The rules and regulations of the Bureau of Internal Revenue shall,
among
other thins, contain provisions specifying, prescribing or defining:
(a) The time and
manner
in which Revenue Regional Director shall canvass their respectiveRevenue Regions for the purpose of discovering persons and property
liable
to nationalinternal revenue taxes, and the manner in which their lists and records
of taxable personsand taxable objects shall be made and kept;
(b) The forms of
labels,
brands or marks to be required on goods subject to an excise tax,and the manner in which the labelling, branding or marking shall be
effected;
(c) The conditions
under which and the manner in which goods intended for export, whichif not exported would be subject to an excise tax, shall be labelled,
branded
or marked;
(d) The conditions
to be observed by revenue officers respecting the institutions and
conductof legal actions and proceedings;
(e) The conditions
under which goods intended for storage in bonded warehouses shall beconveyed thither, their manner of storage and the method of keeping the
entries andrecords in connection therewith, also the books to be kept by Revenue
Inspectors
andthe reports to be made by them in connection with their supervision of
such houses;
(f) The conditions
under which denatured alcohol may be removed and dealt in, the characterand quantity of the denaturing material to be used, the manner in which
the process ofdenaturing shall be effected, so as to render the alcohol suitably
denatured
and unfit fororal intake, the bonds to be given, the books and records to be kept,
the
entries to bemade therein, the reports to be made to the Commissioner, and the signs
to be displayedin the business or by the person for whom such denaturing is done or by
whom, suchalcohol is dealt in;
(g) The manner in
which
revenue shall be collected and paid, the instrument, document orobject to which revenue stamps shall be affixed, the mode of
cancellation
of the same,the manner in which the proper books, records, invoices and other
papers
shall be keptand entries therein made by the person subject to the tax, as well as
the
manner inwhich licenses and stamps shall be gathered up and returned after
serving
their purposes;
(h) The conditions
to be observed by revenue officers respecting the enforcement of TitleIII imposing a tax on estate of a decedent, and other transfers mortis
causa, as wellas on gifts and such other rules and regulations which the Commissioner
may considersuitable for the enforcement of the said Title III;
(i) The manner in
which
tax returns, information and reports shall be prepared and reportedand the tax collected and paid, as well as the conditions under which
evidence
of paymentshall be furnished the taxpayer, and the preparation and publication of
tax statistics;
(j) The manner in
which
internal revenue taxes, such as income tax, including withholdingtax, estate and donor's taxes, value-added tax, other percentage taxes,
excise taxesand documentary stamp taxes shall be paid through the collection
officers
of the Bureauof Internal Revenue or through duly authorized agent banks which are
hereby
deputizedto receive payments of such taxes and the returns, papers and
statements
that may befiled by the taxpayers in connection with the payment of the tax: Provided,
however,That notwithstanding the other provisions of this Code prescribing the
place of filing ofreturns and payment of taxes, the Commissioner may, by rules and
regulations,
requirethat the tax returns, papers and statements that may be filed by the
taxpayers
inconnection with the payment of the tax. Provided, however, That
notwithstandingthe other provisions of this Code prescribing the place of filing of
returns
and paymentof taxes, the Commissioner may, by rules and regulations require that
the
tax returns,papers and statements and taxes of large taxpayers be filed and paid,
respectively,through collection officers or through duly authorized agent banks: Provided,
further,That the Commissioner can exercise this power within six (6) years from
the approvalof Republic Act No. 7646 or the completion of its comprehensive
computerizationprogram, whichever comes earlier: Provided, finally, That
separate
venues for theLuzon, Visayas and Mindanao areas may be designated for the filing of
tax
returnsand payment of taxes by said large taxpayers.
For the purpose of this
Section, "large taxpayer" means a taxpayer who satisfies any of
the following criteria;
(1) Value-Added
Tax (VAT). - Business
establishment with VAT paid or payable of at least One hundred thousand
pesos (P100,000) for any quarter of the preceding taxable year;
(2) Excise Tax.
- Business
establishment with excise tax paid or payable of at least One million
pesos
(P1,000,000) for the preceding taxable year;
(3) Corporate
Income Tax. - Business
establishment with annual income tax paid or payable of at least One
million
pesos (P1,000,000) for the preceding taxable year; and
(4) Withholding
Tax. - Business
establishment with withholding tax payment or remittance of at least
One
million pesos (P1,000,000) for the preceding taxable year.cralaw:red
Provided, however,
That the Secretary of Finance, upon recommendation of the
Commissioner,
may modify or add to the above criteria for determining a large
taxpayer
after considering such factors as inflation, volume of business, wage
and
employment levels, and similar economic factors.cralaw:red
The penalties prescribed
under Section 248 of this Code shall be imposed on any violation of the
rules and regulations issued by the Secretary of Finance, upon
recommendation
of the Commissioner, prescribing the place of filing of returns and
payments
of taxes by large taxpayers.
SEC.
246. Non-Retroactivity of Rulings. -
Any revocation, modification or reversal of any of the rules and
regulations
promulgated in accordance with the preceding Sections or any of the
rulings
or circulars promulgated by the Commissioner shall not be given
retroactive
application if the revocation, modification or reversal will be
prejudicial
to the taxpayers, except in the following cases:
(a) Where the
taxpayer
deliberately misstates or omits material facts from his return orany document required of him by the Bureau of Internal Revenue;
(b) Where the facts
subsequently gathered by the Bureau of Internal Revenue arematerially different from the facts on which the ruling is based; or
(c) Where the
taxpayer
acted in bad faith.
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