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 XSTATUTORY
OFFENSES AND PENALTIES
CHAPTER IICRIMES,
OTHER
OFFENSES AND FORFEITURES
SEC.
253. General Provisions. -
(a) Any person
convicted
of a crime penalized by this Code shall, in addition to being liable forthe payment of the tax, be subject to the penalties imposed herein: Provided,
That paymentof the tax due after apprehension shall not constitute a valid defense
in any prosecutionfor violation of any provision of this Code or in any action for the
forfeiture
of untaxed articles.
(b) Any person who
willfully aids or abets in the commission of a crime penalized herein orwho causes the commission of any such offense by another shall be
liable
in the samemanner as the principal.
(c) If the offender
is not a citizen of the Philippines, he shall be deported immediately
afterserving the sentence without further proceedings for deportation. If he
is a public officeror employee, the maximum penalty prescribed for the offense shall be
imposed
and,in addition, he shall be dismissed from the public service and
perpetually
disqualifiedfrom holding any public office, to vote and to participate in any
election.
If the offenderis a Certified Public Accountant, his certificate as a Certified Public
Accountant shall,upon conviction, be automatically revoked or cancelled.
(d) In the case of
associations, partnerships or corporations, the penalty shall be imposedon the partner, president, general manager, branch manager, treasurer,
officer-in-charge,and the employees responsible for the violation.
(e) The fines to be
imposed for any violation of the provisions of this Code shall not be
lowerthan the fines imposed herein or twice the amount of taxes, interest
and
surcharges duefrom the taxpayer, whichever is higher.
SEC.
254. Attempt to Evade or Defeat Tax. -
Any person who willfully attempts in any manner to evade or defeat any
tax imposed under this Code or the payment thereof shall, in addition
to
other penalties provided by law, upon conviction thereof, be punished
by
a fine not less than Thirty thousand (P30,000) but not more than One
hunderd
thousand pesos (P100,000) and suffer imprisonment of not less than two
(2) years but not more than four (4) years: Provided, That the
conviction
or acquittal obtained under this Section shall not be a bar to the
filing
of a civil suit for the collection of taxes.
SEC.
255. Failure to File Return, Supply Correct and Accurate
Information,
Pay Tax Withhold and Remit Tax and Refund Excess Taxes Withheld on
Compensation.
-
Any person required under this Code or by rules and regulations
promulgated
thereunder to pay any tax make a return, keep any record, or supply
correct
the accurate information, who willfully fails to pay such tax, make
such
return, keep such record, or supply correct and accurate information,
or
withhold or remit taxes withheld, or refund excess taxes withheld on
compensation,
at the time or times required by law or rules and regulations shall, in
addition to other penalties provided by law, upon conviction thereof,
be
punished by a fine of not less than Ten thousand pesos (P10,000) and
suffer
imprisonment of not less than one (1) year but not more than ten (10)
years.
Any person who attempts
to make it appear for any reason that he or another has in fact filed a
return or statement, or actually files a return or statement and
subsequently
withdraws the same return or statement after securing the official
receiving
seal or stamp of receipt of internal revenue office wherein the same
was
actually filed shall, upon conviction therefor, be punished by a fine
of
not less than Ten thousand pesos (P10,000) but not more than Twenty
thousand
pesos (P20,000) and suffer imprisonment of not less than one (1) year
but
not more than three (3) years.
SEC.
256. Penal Liability of Corporations. -
Any corporation, association or general co-partnership liable for any
of
the acts or omissions penalized under this Code, in addition to the
penalties
imposed herein upon the responsible corporate officers, partners, or
employees
shall, upon conviction for each act or omission, be punished by a fine
of not less than Fifty thousand pesos (P50,000) but not more than One
hundred
thousand pesos (P100,000).
SEC.
257. Penal Liability for Making False Entries, Records or Reports,
or
Using Falsified or Fake Accountable Forms. -
(A) Any financial officer
or independent Certified Public Accountant engaged to examine and audit
books of accounts of taxpayers under Section 232 (A) and any person
under
his direction who:
(1) Willfully
falsifies
any report or statement bearing on any examination or audit, or rendersa report, including exhibits, statements, schedules or other forms of
accountancy
workwhich has not been verified by him personally or under his supervision
or by a memberof his firm or by a member of his staff in accordance with sound
auditing
practices; or
(2) Certifies
financial
statements of a business enterprise containing an essential misstatementof facts or omission in respect of the transactions, taxable income,
deduction
and exemptionof his client; or
(B) Any person who:
(1) Not being an
independent
Certified Public Accountant according to Section 232(B) or afinancial officer, examines and audits books of accounts of taxpayers;
or
(2) Offers to sign
and certify financial statements without audit; or
(3) Offers any
taxpayer
the use of accounting bookkeeping records for internal revenuepurposes not in conformity with the requirements prescribed in this
Code
or rules andregulations promulgated thereunder; or
(4) Knowingly
makes
any false entry or enters any false or fictitious name in the books ofaccounts or record mentioned in the preceding paragraphs; or
(5) Keeps two (2)
or
more sets of such records or books of accounts; or
(6) In any way
commits
an act or omission, in violation of the provisions of this Section; or
(7) Fails to keep
the
books of accounts or records mentioned in Section 232 in a nativelanguage, English or Spanish, or to make a true and complete
translation
as required inSection 234 of this Code, or whose books of accounts or records kept in
a native language,English or Spanish, and found to be at material variance with books or
records kept by himin another language; or
(8) Willfully
attempts
in any manner to evade or defeat any tax imposed under this Code,or knowingly uses fake or falsified revenue official receipts, Letters
of Authority, certificatesauthorizing registration, Tax Credit Certificates, Tax Debit Memoranda
and otheraccountable forms shall, upon conviction for each act or omission, be
punished
by a finenot less than Fifty thousand pesos (P50,000) but not more than One
hundred
pesos(P100,000) and suffer imprisonment of not less than two (2) years but
not
more thansix (6) years.
If the offender is a Certified
Public Accountant, his certificate as a Certified Public Accountant
shall
be automatically revoked or cancelled upon conviction.
In the case of foreigners,
conviction under this Code shall result in his immediate deportation
after
serving sentence, without further proceedings for deportation.
SEC.
258. Unlawful Pursuit of Business. -
Any person who carries on any business for which an annual registration
fee is imposed without paying the tax as required by law shall, upon
conviction
for each act or omission, be punished by a fine of not less than Five
thousand
pesos (P5,000) but not more than Twenty thousand pesos (P20,000) and
suffer
imprisonment of not less than six (6) months but not more than two (2)
years: Provided, That in the case of a person engaged in the
business
of distilling, rectifying, repacking, compounding or manufacturing any
article subject to excise tax, he shall, upon conviction for each act
or
omission, be punished by a fine of not less than Thirty thousand pesos
(P30,000) but not more than Fifty thousand pesos (P50,000) and suffer
imprisonment
of not less than two (2) years but not more than four (4) years.
SEC.
259. Illegal Collection of Foreign Payments. -
Any person who knowingly undertakes the collection of foreign payments
as provided under Section 67 of this Code without having obtained a
license
therefor, or without complying with its implementing rules and
regulations,
shall, upon conviction for each act or omission, be punished by a fine
of not less than Twenty thousand pesos (P20,000) but not more than
Fifty
thousand pesos (P50,000) and suffer imprisonment of not less than one
(1)
year but not more than two (2) years.
SEC.
260. Unlawful Possession of Cigarette Paper in Bobbins or Rolls,
Etc.
-It
shall be unlawful for any person to have in his possession cigarette
paper
in bobbins or rolls, cigarette tipping paper or cigarette filter tips,
without the corresponding authority therefor issued by the
Commissioner.
Any person, importer, manufacturer of cigar and cigarettes, who has
been
found guilty under this Section, shall, upon conviction for each act or
omission, be punished by a fine of not less than Twenty thousand pesos
(P20,000) but not more than One hundred thousand pesos (P1000,000) and
suffer imprisonment for a term of not less than six (6) years and one
(1)
day but not more than twelve (12) years.
SEC.
261. Unlawful Use of Denatured Alcohol. -
Any person who for the purpose of manufacturing any beverage, uses
denatured
alcohol or alcohol specially denatured to be used for motive power or
withdrawn
under bond for industrial uses or alcohol knowingly misrepresented to
be
denatured to be unfit for oral intake or who knowingly sells or offers
for sale any beverage made in whole or in part from such alcohol or who
uses such alcohol for the manufacture of liquid medicinal preparations
taken internally, or knowingly sells or offers for sale such
preparations
containing as an ingredient such alcohol, shall upon conviction for
each
act or omission be punished by a fine of not less than Twenty thousand
pesos (P20,000) but not more than One hundred thousand pesos (P100,000)
and suffer imprisonment for a term of not less than six (6) years and
one
(1) day but not more than twelve (12) years.cralaw:red
Any person who shall
unlawfully recover or attempt to recover by distillation or other
process
any denatured alcohol or who knowingly sells or offers for sale,
conceals
or otherwise disposes of alcohol so recovered or redistilled shall be
subject
to the same penalties imposed under this Section.
SEC.
262. Shipment or Removal of Liquor or Tobacco Products under False
Name
or Brand or as an Imitation of any Existing or Otherwise Known Product
Name or Brand. -
Any person who ships, transports or removes spirituous, compounded or
fermented
liquors, wines or any manufactured products of tobacco under any other
than the proper name or brand known to the trade as designating the
kind
and quality of the contents of the cask, bottle or package containing
the
same or as an imitation of any existing or otherwise known product name
or brand or causes such act to be done, shall, upon conviction for each
act or omission, be punished by a fine of not less than Twenty thousand
pesos (P20,000) but not more than One hundred thousand pesos
(P1000,000)
and suffer imprisonment of not less than six (6) years and one (1) day
but not more than twelve (12) years.
SEC.
263. Unlawful Possession or Removal of Articles Subject to Excise
Tax
without Payment of the Tax. - Any
person who owns and/or is found in possession of imported articles
subject
to excise tax, the tax on which has not been paid in accordance with
law,
or any person who owns and/or is found in possession of imported
tax-exempt
articles other than those to whom they are legally issued shall be
punished
by:
(a) A fine of not
less
than One thousand pesos (P1,000) nor more than Two thousand pesos
(P2,000)
and suffer imprisonment of not less than sixty (60) days but not more
than
one hundred (100) days, if the appraised value, to be determined in the
manner prescribed in the Tariff and Customs Code, including duties and
taxes, of the articles does not exceed One thousand pesos (P1,000).
(b) A fine of not
less
than Ten thousand pesos (P10,000) but not more than Twenty thousand
pesos
(P20,000) and suffer imprisonment of not less than two (2) years but
not
more than four (4) years, if the appraised value, to be determined in
the
manner prescribed in the Tariff and Customs Code, including duties and
taxes, of the articles exceeds One thousand pesos (P1,000) but does not
exceed Fifty thousand pesos (P50,000);
(c) A fine of not
less
than Thirty thousand pesos (P30,000) but not more than Sixty thousand
pesos
(P60,000) and suffer imprisonment of not less than four (4) years but
not
more than six (6) years, if the appraised value, to be determined in
the
manner prescribed in the Tariff and Customs Code, including duties and
taxes of the articles is more than Fifty thousand pesos (P50,000) but
does
not exceed One hundred fifty thousand pesos (P150,000); or
(d) A fine of not
less
than Fifty thousand pesos (P50,000) but not more than One hundred
thousand
pesos (P100,000) and suffer imprisonment of not less than ten (10)
years
but not more than twelve (12) years, if the appraised value, to be
determined
in the manner prescribed in the Tariff and Customs Code, including
duties
and taxes, of the articles exceeds One hundred fifty thousand pesos
(P150,000).
Any person who is found
in possession of locally manufactured articles subject to excise tax,
the
tax on which has not been paid in accordance with law, or any person
who
is found in possession of such articles which are exempt from excise
tax
other than those to whom the same is lawfully issued shall be punished
with a fine of not less than (10) times the amount of excise tax due on
the articles found but not less than Five hundred pesos (P500) and
suffer
imprisonment of not less than two (2) years but not more than four (4)
years.
Any manufacturer, owner
or person in charge of any article subject to excise tax who removes or
allows or causes the unlawful removal of any such articles from the
place
of production or bonded warehouse, upon which the excise tax has not
been
paid at the time and in the manner required, and any person who
knowingly
aids or abets in the removal of such articles as aforesaid, or conceals
the same after illegal removal shall, for the first offense, be
punished
with a fine of not less than ten (10) times the amount of excise tax
due
on the articles but not less than One thousand pesos (P1,000) and
suffer
imprisonment of not less than one (1) year but not more than two (2)
years.cralaw:red
The mere unexplained
possession of articles subject to excise tax, the tax on which has not
been paid in accordance with law, shall be punishable under this
Section.
Sec.
264. Failure or refusal to Issue Receipts or Sales or Commercial
Invoices,
Violations related to the Printing of such Receipts or Invoices and
Other
Violations. -
(a) Any person who,
being required under Section 237 to issue receipts or sales or
commercial
invoices, fails or refuses to issue such receipts of invoices, issues
receipts
or invoices that do not truly reflect and/or contain all the
information
required to be shown therein, or uses multiple or double receipts or
invoices,
shall, upon conviction for each act or omission, be punished by a fine
of not less than One thousand pesos (P1,000) but not more than Fifty
thousand
pesos (P50,000) and suffer imprisonment of not less than two (2) years
but not more than four (4) years.cralaw:red
(b) Any person who commits
any of the acts enumerated hereunder shall be penalized in the same
manner
and to the same extent as provided for in this Section:
(1) Printing of
receipts
or sales or commercial invoices without authority from the Bureauof Internal Revenue; or
(2) Printing of
double
or multiple sets of invoices or receipts; or
(3) Printing of
unnumbered
receipts or sales or commercial invoices, not bearing thename, business style, Taxpayer Identification Number, and business
address
of theperson or entity.
SEC.
265. Offenses Relating to Stamps. -
Any person who commits any of the acts enumerated hereunder shall, upon
conviction thereof, be punished by a fine of not less than Twenty
thousand
pesos (P20,000) but not more than Fifty thousand pesos (P50,000) and
suffer
imprisonment of not less than four (4) years but not more than eight
(8)
years:
(a) making,
importing,
selling, using or possessing without express authority from theCommissioner, any die for printing or making stamps, labels, tags or
playing
cards;
(b) Erasing the
cancellation
marks of any stamp previously used, or altering the writtenfigures or letters or cancellation marks on internal revenue stamps;
(c) Possessing false,
counterfeit, restored or altered stamps, labels or tags or causingthe commission of any such offense by another;
(d) Selling or
offering
for sale any box or package containing articles subject to excise taxwith false, spurious or counterfeit stamps or labels or selling from
any
such fraudulentbox, package or container as aforementioned; or
(e) Giving away or
accepting from another, or selling, buying or using containers on whichthe stamps are not completely destroyed.
Sec.
266. Failure to Obey Summons. -Any
person who, being duly summoned to appear to testify, or to appear and
produce books of accounts, records, memoranda or other papers, or to
furnish
information as required under the pertinent provisions of this Code,
neglects
to appear or to produce such books of accounts, records, memoranda or
other
papers, or to furnish such information, shall, upon conviction, be
punished
by a fine of not less than Five thousand pesos (P5,000) but not more
than
ten thousand pesos (P10,000) and suffer imprisonment of not less than
one
(1) year but not more than two (2) years.
SEC.
267. Declaration under Penalties of Perjury. -
Any declaration, return and other statement required under this Code,
shall,
in lieu of an oath, contain a written statement that they are made
under
the penalties of perjury. Any person who willfully files a declaration,
return or statement containing information which is not true and
correct
as to every material matter shall, upon conviction, be subject to the
penalties
prescribed for perjury under the Revised Penal Code.
SEC.
268. Other Crimes and Offenses. -
(A) Misdeclaration
or Misrepresentation of Manufacturers Subject to Excise Tax.- Any manufacturer who, in violation of the provisions of
Title
VI of this Code, misdeclares in the sworn statement required therein or
in the sales invoice, any pertinent data or information shall be
punished
by a summary cancellation or withdrawal of the permit to engage in
business
as a manufacturer of articles subject to excise tax.cralaw:red
(B) Forfeiture
of Property Used in Unlicensed Business or Dies Used for Printing False
Stamps, Etc.- All chattels, machinery, and removable fixtures of any sort
used
in the unlicensed production of articles subject to excise tax shall be
forfeited. Dies and other equipment used for the printing or making of
any internal revenue stamp, label or tag which is in imitation of or
purports
to be a lawful stamp, label or tag shall also be forfeited.cralaw:red
(C) Forfeiture
of Goods Illegally Stored or Removed. -
Unless otherwise specifically authorized by the Commissioner, all
articles
subject to excise tax should not be stored or allowed to remain in the
distillery warehouse, bonded warehouse or other place where made, after
the tax thereon has been paid; otherwise, all such articles shall be
forfeited.
Articles withdrawn from any such place or from customs custody or
imported
into the country without the payment of the required tax shall likewise
be forfeited.
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