Implements the penalty provisions under Sections 76, 77, 78, 79 and 80 of RA No. 10963 (TRAIN Law), amending Sections 254 and 264 of, and adding Sections 264-A, 264-B and 265-A to, the NIRC of 1997, as amended (RR No. 13-2021 dated June 23, 2021)
The BIR has issued this RR to implement the penalty provisions of the TRAIN Law on the following violations and offenses:
a. Attempt to evade or defeat tax
A fine of not less than Five Hundred Thousand Pesos (Php500,00) but not more than Ten Million Pesos (Php10,000,000) and imprisonment of not less than six (6) years but not more than ten (10) years shall be imposed on any person who willfully attempts, in any manner, to evade or defeat any tax.
b. Violations related to the printing of receipts or invoices
A fine of not less than Five Hundred Thousand Pesos (Php500,00) but not more than Ten Million Pesos (Php10,000,000) and imprisonment of not less than six (6) years but not more than ten (10) years shall be imposed on any person who commits any of the acts enumerated hereunder:
Printing of receipts or sales or commercial invoices without authority from the BIR
Printing of double or multiple sets of invoices or receipts
Printing of unnumbered receipts or sales or commercial invoices, not bearing the name, business style, TIN, and business address of the person or entity
Printing of other fraudulent receipts or sales or commercial invoices
c. Failure to transmit sales data
A penalty amounting to one-tenth of one percent (1/10 of 1%) of the annual net income as reflected in the taxpayer’s audited financial statements for the second year preceding the current year or Ten Thousand Pesos (Php10,000), whichever is higher for each day of violation, on any taxpayer who failed to transmit sales data to the BIR’s electronic sales reporting system.
An additional penalty of permanent closure of the taxpayer shall be imposed should the aggregate number of days of violation exceed one hundred eighty (180) days within the taxable year.
d. Purchase, use, possession, sale or offer to sell, installation, transfer, update, upgrade, keeping or maintaining of sales suppression devices
A fine of not less than Five Hundred Thousand Pesos (Php500,000) but not more than Ten Million Pesos (Php10,000,000) and imprisonment of not less than two (2) years but not more than four (4) years shall be imposed on any person who shall purchase, use, possess, sell or offer to sell, install, transfer, update, upgrade, keep, or maintain any software or device designed for, or capable of:
a. suppressing the creation of electronic records of sale transactions that a taxpayer is required to keep under existing laws and/or regulations; or
b. modifying, hiding, or deleting electronic records of sales transactions and providing a ready means of access to them.
The maximum penalty shall apply in case of cumulative suppression of electronic sales record in excess of the amount of Fifty Million Pesos (Php50,000,000).
e. Offenses related to fuel marking – Section 6 of the RR provided the list of penalties for various violations and offenses related to fuel marking.
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