Further Amending The National Internal Revenue Code By Adding Section 220-A Providing Specific Penalties For Failure Or Refusal To Issue Receipts Or Sales Or Commercial Invoices, For Violat

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 1254

FURTHER AMENDING THE NATIONAL INTERNAL REVENUE CODE BY ADDING SECTION 220-A PROVIDING SPECIFIC PENALTIES FOR FAILURE OR REFUSAL TO ISSUE RECEIPTS OR SALES OR COMMERCIAL INVOICES, FOR VIOLATIONS RELATED TO THE PRINTING OF SUCH RECEIPTS OR INVOICES AND FOR OTHER VIOLATIONS IN CONNECTION THEREWITH

WHEREAS, the non-issuance of receipts or sales or commercial invoices, the possession or use of unregistered invoices or receipts, the possession or use of double or multiple sets of invoices or receipts and the unauthorized printing of such invoices or receipts results in under declaration of sales, receipts or income and consequently in the loss of substantial revenue to the government;

WHEREAS, these pernicious practices have become rampant and remain unabated partly because the existing penalties prescribed therefor are very light;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following:

Section 1. The National Internal Revenue Code as amended...

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Summary of Presidential Decree No. 1254

Failure or Refusal to Issue Receipts or Sales or Commercial Invoices; Violations Related to the Printing of such Receipts or Invoices and Other Violations (Section 220-A):

• Penalties for failure or refusal to issue receipts or sales or commercial invoices as required under Section 216, issuing receipts or invoices that do not reflect accurate information, possessing or using unregistered receipts or invoices, or possessing or using multiple or double receipts or invoices:
- First Offense: Fine of not more than 200 pesos and imprisonment of not more than 6 months. (Section 220-A)
- Second Offense: Fine of not less than 200 pesos but not more than 3,000 pesos and imprisonment of not less than 6 months but not more than 3 years. (Section 220-A)
- Subsequent Offenses: Fine of not less than 3,000 pesos nor more than 6,000 pesos and imprisonment of not less than 3 years but not more than 6 years, and cancellation of license to do business. (Section 220-A)

• Penalties for the following acts:
- Printing, causing, aiding or abetting the printing of receipts or sales or commercial invoices without authority from the Bureau of Internal Revenue. (Section 220-A)
- Printing, causing, aiding or abetting the printing of double or multiple sets of invoices or receipts. (Section 220-A)
- Printing, causing, aiding or abetting the printing of unnumbered receipts or sales or commercial invoices or not bearing the name, business style, taxpayer account number, and business address of the person or entity to use the same. (Section 220-A)
- Failing to submit the quarterly report required in Section 216-A. (Section 220-A)

• If the offender is not a citizen of the Philippines, he shall be deported immediately after serving the sentence without further proceedings for deportation. (Section 220-A)

• If the offender is a public officer or employee, he shall, in addition to the penalties prescribed, be dismissed from the public service and perpetually disqualified from holding any public office. (Section 220-A)

• In the case of associations, partnerships, or corporations, the penalty shall be imposed upon its partners, president, general manager, branch manager and/or officer-in-charge as well as the employee responsible for the violation. (Section 220-A)

• In any case, the employer shall be liable for the act or omission of the employee. (Section 220-A)

• A professional found guilty of any of the violations penalized under the provisions of this Section shall, aside from being meted the penalties herein imposed, be reported to the professional Regulation Commission or the proper regulatory body for disciplinary action, which may include suspension or absolute revocation of his license to practice his profession. (Section 220-A)