Annex "A"

236/258 Failure to Register

a. Cities 20,000*
b. 1st class municipalities 10,000*
c. 2nd class municipalities 5,000*
d. 3rd class municipalities 2,000*
* Penalties provided are inclusive of all other violations
258 Failure to pay annual registration fee by Fine of not less than P30,000 but not a. Cities 30,000
a person engaged in the business of more than P50,000 and suffer b. 1st class municipalities 20,000
distilling, rectifying, repacking, imprisonment of not less than 2 years c. 2nd class municipalities 15,000
compounding or manufacturing article but not more than 4 years d. 3rd class municiplaities 10,000
subject to excise tax
236/275 Failure to Pay & Display the Annual Fine of not more than 1,000
Registration Fee:(BIR Form 0605) or imprisonment of not more
than 6 months (sec 275, NIRC)
236/275 No Certificate of Registration displayed Fine of not more than 1,000
or imprisonment of not more
than 6 months (sec 275, NIRC)
236/275 Failure to display the poster"Ask for Fine of not more than 1,000
BIR Receipt" or "Notice to the or imprisonment of not more
Public to demand receipts/invoice" than 6 months (sec 275, NIRC)
236/275 Failure to attach or paste authorized Fine of not more than 1,000
sticker/DECAL authorizing the use of or imprisonment of not more
CRM/POS/CAS than 6 months (sec 275, NIRC)
Failure to present application form (BIR
Form 1900 and 1905) to use registered
sales books/permit to use loose leaf
sales books
254 Willful attempt to evade or defeat any Fine of not less than P30,000 but not This violation cannot be compromised
tax imposed by the National Internal more than P100,000 and because it involves fraud. Sec 204 NIRC
Revenue Code or the payment thereof. imprisonment of not less than two(2)
years but not more than four(4) years

255 Fine of not less than P10,000 and
imprisonment of not less than one (1) But Does Compromise
year but not more than 10 years Not Exceed is
P xxx P 500 P 200
500 1,000 400
1,000 2,000 700
2,000 5,000 1,000
5,000 7,500 1,500
7,500 10,000 2,000
10,000 15,000 3,000
15,000 20,000 4,000
20,000 30,000 6,000
30,000 50,000 8,500
50,000 100,000 12,000
100,000 500,000 16,000
500,000 1,000,000 20,000
1,000,000 5,000,000 25,000
5,000,000 xxxx 50,000
REVISED SCHEDULE OF COMPROMISE PENALTY
CODE
SEC
AMOUNT OF COMPROMISE
Failure to file and/or pay any internal
revenue tax at the time or times required
by law or regulation.
If the subject establishment is located in the ff:
P 1,000
P 1,000
NATURE OF VIOLATION CRIMINAL PENALTY IMPOSED
Exceeds
If the amount of tax unpaid
P 1,000 per unit
P 1,000
Fine of not less than P5,000 but not
more than P20,000 and imprisonment
of not less than 6 months but not more
than 2 years
P 1,000
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REVISED SCHEDULE OF COMPROMISE PENALTY
CODE
SEC
AMOUNT OF COMPROMISE NATURE OF VIOLATION CRIMINAL PENALTY IMPOSED
255 Failure to make/file/submit any Fine of not less than P10,000 and
return or supply correct information imprisonment of not less than one (1)
at the time or times required by law year but not more than ten (10) years
or regulation Exceeds But does Compromise
not exceed is
P x x x P 10,000 P 200
10,000 20,000 400
20,000 30,000 600
30,000 50,000 1,000
50,000 75,000 1,500
75,000 100,000 2,000
100,000 300,000 3,000
300,000 500,000 5,000
500,000 1,000,000 7,500
1,000,000 5,000,000 10,000
5,000,000 10,000,000 15,000
10,000,000 25,000,000 20,000
25,000,000 xxx 25,000
232/235 Failure to keep/preserve records Fine of not more than P1,000 or
required by law or regulations imprisonment for not more than But Does Compromise
6 months, or both. Not Exceed is
(Sec. 275, NIRC) P x x x P 10,000 P 200
10,000 20,000 400
20,000 30,000 600
30,000 50,000 1,000
50,000 75,000 1,500
75,000 100,000 2,000
100,000 250,000 3,000
250,000 500,000 5,000
500,000 1,000,000 7,500
1,000,000 5,000,000 10,000
5,000,000 10,000,000 15,000
10,000,000 20,000,000 20,000
20,000,000 50,000,000 30,000
50,000,000 x x x 50,000
255 Failure to withhold or remit withheld Fine of not less than P10,000 and If the amount of tax not withheld or remitted
taxes at the time or times required imprisonment of not less than one(1) But does Compromise
by law or regulations. year but not more than ten(10) years not Exceed is
P x x x P 500 P 200
500 1,000 400
1,000 2,000 700
2,000 5,000 1,000
5,000 7,500 1,500
7,500 10,000 2,000
10,000 15,000 3,000
15,000 20,000 4,000
20,000 30,000 6,500
30,000 50,000 9,000
50,000 100,000 12,000
100,000 500,000 16,000
500,000 1,000,000 20,000
1,000,000 x x x 25,000
If gross annual sales, earnings
or receipts; or gross estate or gift
If gross annual sales, earnings or receipts
Exceeds
Exceeds
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REVISED SCHEDULE OF COMPROMISE PENALTY
CODE
SEC
AMOUNT OF COMPROMISE NATURE OF VIOLATION CRIMINAL PENALTY IMPOSED
255 Failure to refund excess taxes withheld Fine of not less than P10,000 and If the amount of excess taxes not refunded
on compensation imprisonment of not less than one (1) Exceeds But does Compromise
year but not more than ten (10) years not Exceed is
P x x x P 500 P 200
500 1,000 400
1,000 2,000 700
2,000 5,000 1,000
5,000 7,500 1,500
7,500 10,000 2,000
10,000 15,000 3,000
15,000 20,000 4,000
20,000 30,000 6,500
30,000 50,000 9,000
50,000 100,000 12,000
100,000 500,000 16,000
500,000 1,000,000 20,000
1,000,000 x x x 25,000
255 Misrepresentation as to actual filing Fine not less than P10,000 but not This violation cannot be compromised
of return or statement or withdrawal more than P20,000 and imprisonment because it involves fraud. Sec. 204(NIRC)
of return or statement already filed. of not less than one(1) year but not
more than three(3) years
256 Any act or omission by a corporation Fine of not less than P50,000 but not P10,000 for corporation, or the amount of
which is penalized under the NIRC. more than P100,000 (in addition to compromise penalty set forth in this
penalty set forth or imposed on the Schedule for particular act or omission,
responsible corporate officer, partner whichever is higher.
or employee).
P5,000 for responsible officer,
partner or employee.
257 a) Violations committed by any Fine of not less than P50,000 but not
financial officer or an independent more than P100,000 and
CPA, or any person under his imprisonment of not less than
direction as follows: 2 years but not more than 6 years.
(if the offender is a CPA, his certificate
shall automatically be revoked or
cancelled upon conviction.)
1) Willful falsification of any report or This violation cannot be compromised
statement on any examination or audit; because it involves fraud.
rendering reports (including exhibits, (Sec. 204, NIRC)
statements, etc.) not verified by him
personally or under his supervision or
by a member of his firm or staff in
accordance with sound auditing
practices.
2) Certification of financial statement This violation cannot be compromised
of a business enterprise containing because it involves fraud.
an essential misstatement of facts (Sec. 204, NIRC)
or omission as to transactions, taxable
income, deduction and exemption of a
client.
b) Violations committed by persons Fine of not less than P50,000 but not
who are not CPAs- more than P100,000 and imprisonment of
not less than 2 years but not more
than 6 years. In case of foreigners,
conviction under this Code shall result
in his immediate deportation after
serving sentence without further
proceedings for deportation.
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REVISED SCHEDULE OF COMPROMISE PENALTY
CODE
SEC
AMOUNT OF COMPROMISE NATURE OF VIOLATION CRIMINAL PENALTY IMPOSED
1) Examination and audit of books
of accounts of taxpayers;
2) Offering to sign and certifying
financial statements without audit;
3) Offers any taxpayer the use of
accounting or bookkeeping records
for internal revenue purposes not
in conformity with the requirements
in the Code and regulations;
4) Knowingly making false entry or This violation cannot be compromised
enters any false or fictitious name in because it involves fraud. Sec 204 NIRC
the books of accounts mentioned in
the preceding paragraphs;
5) Keeping of two or more sets of This violation cannot be compromised
such records or books of accounts; because it involves fraud. Sec 204 NIRC
6) In any way commits an act or P1,000 or the compromise penalty
omission in violation of the provisions set forth in this Schedule for the
of Sec. 257, NIRC; or particular act or omission,whichever is
higher; or, cannot be compromised if it
involves fraud.
Exceeds But Does Compromise
Not Exceed is
P x x x 10,000 200
10,000 20,000 400
20,000 30,000 600
30,000 50,000 1,000
50,000 75,000 1,500
75,000 100,000 2,000
100,000 250,000 3,000
250,000 500,000 5,000
500,000 1,000,000 7,500
1,000,000 5,000,000 10,000
5,000,000 10,000,000 15,000
10,000,000 20,000,000 20,000
20,000,000 50,000,000 30,000
50,000,000 x x x 50,000
(ii) Where books kept in a native
language, English or Spanish are found
to be at material variance with books kept
in another language.
8) Willful attempt to evade or defeat any
tax imposed under the Code or knowingly
uses fake or falsified Revenue Official
Receipts, Letters of Authority, Certificates
Authorizing Registration, Tax Credit
Certificates, Tax Debit Memoranda and
other Accountable Forms.
If gross annual sales earnings
or receipts
This violation cannot be compromised
because it involves fraud. (Sec. 204 NIRC)
7) (i) Failure to keep books of accounts
or records in a native language, English
or Spanish or make a true and complete
translation.
P 25,000
This violation cannot be compromised
because it involves fraud. (Sec. 204 NIRC)
Fine of not less than P50,000 but not
more that P100,000 and suffer
imprisonment of not less than two (2)
years but not less than six (6) years.
P 25,000
P 25,000
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REVISED SCHEDULE OF COMPROMISE PENALTY
CODE
SEC
AMOUNT OF COMPROMISE NATURE OF VIOLATION CRIMINAL PENALTY IMPOSED
232 Failure to have books of accounts Fine of not more than P1,000 or If gross annual sales earnings or receipts
audited and have the financial imprisonment of not more than Exceeds But Does Compromise
statements attached to the 6 months, or both. Not Exceed is
income tax return certified by an (Sec. 275, NIRC) P 25,000 P 200,000 P 2000
independent CPA duly accredited by the
BIR
for any one
quarter
for the year
200,000 500,000 4,000
500,000 1,000,000 6,000
1,000,000 5,000,000 10,000
5,000,000 10,000,000 15,000
10,000,000 25,000,000 20,000
25,000,000 xxx 25,000
90 Failure to have the statement of assets Fine of not more than P1,000 or
of the decedent and the deductions imprisonment of not more than
from gross estate certified by an 6 months, or both. Exceeds But Does Compromise
(Sec. 275, NIRC) Not Exceed is
P 50,000 P 200,000 P 2,000
200,000 500,000 3,000
500,000 1,000,000 5,000
1,000,000 5,000,000 7,500
5,000,000 10,000,000 10,000
10,000,000 25,000,000 20,000
25,000,000 50,000,000 25,000
50,000,000 x x x 50,000
259 Illegal collection of foreign payments- Fine of not less than P20,000 but
collection of foreign payments under not more than P50,000 and
Sec. 67, NIRC without any license or imprisonment of not less than 1 year
in violation of implementing regulations but not more than 2 years
260 Unlawful possession of cigarette paper Fine of not less than P20,000 but
in bobbins or rolls, cigarette tipping not more than P100,000 and
paper or cigarette filter tips. imprisonment of not less than
6 years and 1 day but not more
than 12 years.
261 Unlawful use of denatured alcohol Fine of not less than P20,000 but P 100,000
not more than P100,000 and
imprisonment of not less than
6 years and 1 day but not more
than 12 years.

261 Unlawful recovery or attempt Fine of not less than P20,000 but
to recover by distillation or other not more than P100,000 and
process any denatured alcohol or who imprisonment of not less than
knowingly disposes alcohol so recovered 6 years and 1 day but not more
or redistilled than 12 years.

262 Shipment or removal of liquor or Fine of not less than P20,000 but P 100,000
tobacco products under false name not more than P100,000 and
or brand or as an imitation of any imprisonment of not less than
existing name or brand. 6 years and 1 day but not more
than 12 years.
P 100,000
P 100,000
independent CPA duly accredited by the
BIR
P 20,000
If the gross estate
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REVISED SCHEDULE OF COMPROMISE PENALTY
CODE
SEC
AMOUNT OF COMPROMISE NATURE OF VIOLATION CRIMINAL PENALTY IMPOSED
263 a) Unlawful possession or removal If the appraised value of
of imported articles subject to the article under the
excise tax without payment of tax. Tariff and Customs Code
(TCC) -
Value Does
Penalty
Exceeds Not Exceed is
x x x P1,000 Fine:P1,000-2,000 2,000*
and imprisonment of not less than 60 days
but not more than 100 days
1,000 50,000 Fine: P10,000-20,000 20,000*
and imprisonment of not less than 2 yrs
but not more than 4 years
50,000 150,000 Fine: P30,000-60,000 60,000*
and imprisonment of 4 years but not more
than 6 yrs
150,000 x x x Fine:50,000-100,000 100,000*
and imprisonment of not less than 10
years but not more than 12 years
* Plus forfeiture of the untaxed article
263 b) Unlawful possession of locally
manufactured articles subject to excise
tax without payment of the tax.
263 c) Unlawful removal of untaxed articles P100,000 plus forfeiture of the untaxed article
subject to excise tax from the place
of production.
2 years
264 Specific First Second
Violation Offense Offense
a) For failure to
issue receipts
or sales or
sales or
commercial
invoices
P 10,000 P 20,000
b) For refusal to
issue receipts
or sales or
commercial
invoices
P 25,000 P 50,000
a) Failure or refusal to issue receipts or
sales or commercial invoices; issuing
receipts or invoices not truly reflecting
and/or containing all information required
therein or using multiple or double
receipts or invoices.
Fine of not less than P1,000 but not
more than P50,000 and imprisonment
of not less than 2 years but not more
than 4 years
Compromise allowable on a
case to case basis.
Fine of not less than 10 times the
amount of excise tax due but not less
than P1,000 and imprisonment of not
less than one (1) yr but not more than
two (2) yrs
P100,000 plus forfeiture of the untaxed article Fine of not less than 10 times the
amount of excise tax due but not less
than P500 and imprisonment of not
less than two (2) yrs but not more than
four (4) yrs
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REVISED SCHEDULE OF COMPROMISE PENALTY
CODE
SEC
AMOUNT OF COMPROMISE NATURE OF VIOLATION CRIMINAL PENALTY IMPOSED
If the
information
missing is the
correct amount
of the
transaction
P 20,000 P 50,000
c) For issuance
of receipts that
do not truly
reflect and/or
contain all the
information
required to be
shown therein.
P 5,000 P 10,000
If the
duplicate copy
of the invoice is
blank but the
original copy
thereof is
detached from
the booklet and
cannot be
accounted for
P 20,000 P 50,000
If the amount of
the transaction
stated in the
taxpayer's copy
is understated
versus the
amount per
copy of the
invoice issue to
the purchaser
Not qualified for compromise
d) (i) For use of
unregistered
receipts or
invoices
P 20,000 P 50,000
(ii) Use of
unregistered
cash register
machines in lieu
of invoices or
receipts
P25,000/unit P50,000/unit
e) For
possession or
use of multiple
or double
receipts or
invoices
Not qualified for compromise
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REVISED SCHEDULE OF COMPROMISE PENALTY
CODE
SEC
AMOUNT OF COMPROMISE NATURE OF VIOLATION CRIMINAL PENALTY IMPOSED
f) For printing or
causing, aiding
or abetting the
printing of:
1) Receipts or
invoices without
authority from
the BIR
P 25,000 P 50,000
2) Double or
multiple sets of
receipts or
invoices
Not qualified for compromise
3) Receipts or
invoices not bearing
any of the following:
P 20,000 P 50,000
a. Consecutivenumbers
b. Nameof Taxpayer
c. Business Style
d. Business address
of thepersonor entity
tousethesame
e.TINNo.
f. Name, address, date,
authorityno. of the
printer andinclusive
serial numbers of the
batchor receipts
printed
275 For failure of the printer to submit Fine of not more than P1,000 or P 5,000 P 10,000
the required quarterly report under imprisonment of not more than
Sec. 238 of the Tax Code, as amended. 6 months or both
265 Offenses relating to
internal revenue stamps -
1) Making, importing, selling, using or Fine of not less than P20,000 but not
possessing without express authority more than P50,000 and imprisonment
from the Commissioner any dye for for not less than 4 years
printing or making stamps, label tags but not more than 8 years
or playing cards.
2) Erasing the cancellation marks of Fine of not less than P20,000 but not
any stamps previously used or altering more than P50,000 and imprisonment
the written figures or letters, or for not less than 4 years
cancelling marks on internal revenue but not more than 8 years
stamps.
3) Possession of false, counterfeit, Fine of not less than P20,000 but not
restored or altered stamps, labels, more than P50,000 and imprisonment
or tags, or causes the commission for not less than 4 years
of any such offense by another. but not more than 8 years
P 20,000
This violation cannot be compromised
because it involves fraud.
This violation cannot be compromised
because it involves fraud.
Sec. 204 NIRC
Sec. 204 NIRC
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REVISED SCHEDULE OF COMPROMISE PENALTY
CODE
SEC
AMOUNT OF COMPROMISE NATURE OF VIOLATION CRIMINAL PENALTY IMPOSED
4) Selling or offering for sale any box Fine of not less than P20,000 but not
or package containing articles subject more than P50,000 and imprisonment
to excise tax with false, spurious or for not less than 4 years
counterfeit stamps or labels or sells but not more than 8 years
from any such fraudulent box, package,
or container as aforesaid.
5) Giving away or accepting from Fine of not less than P20,000 but not
another or sells, buys, or uses more than P50,000 and imprisonment
containers on which the stamps are for not less than 4 years
not completely destroyed. but not more than 8 years
266 Failure to obey summons; to testify; Fine of not less than P5,000 but not First Offense : P10,000
or to appear and produce books of more than P10,000 and imprisonment
accounts, records, etc. or to furnish for not less than one (1) yr but not Second Offense: P20,000
information required under the NIRC. more than two (2) yrs
268 Misdeclaration or misrepresentation by Summary cancellation or withdrawal This violation cannot be compromised
manufacturers of articles subject to of permit to engage in business as a because it involves fraud.
excise tax under Title IV, NIRC, or any manufacturer of articles subject to (Sec. 204, NIRC)
pertinent data or information required excise tax.
therein.
272 Failure of government officer or employee Fine of not less than
charged with the duty to deduct and P5,000 nor more than P50,000
withhold any internal revenue tax and or imprisonment of not less than 6
failure to remit the same accordance months and 1 day but not more than Exceed But Does Compromise
with the provisions of the NIRC. 2 years, or both. Not Exceed is
P x x x P 500 P 200
500 1,000 400
1,000 2,000 700
2,000 5,000 1,000
5,000 10,000 2,000
10,000 15,000 3,000
15,000 20,000 4,000
20,000 30,000 6,000
30,000 50,000 9,000
50,000 100,000 12,000
100,000 500,000 16,000
500,000 1,000,000 20,000
1,000,000 xxx 25,000
275 Violation of any provision of the Fine of not more than P1,000 or
National Internal Revenue Code or any imprisonment of not more than 6
regulation of the Department of Finance months or both
for which no specific penalty is provided
by law.
276 Sale, transfer, encumbrance or any Fine of not less than twice the value
other disposition of any property or part of the property sold, encumbered
thereof placed under constructive or disposed of, but not less than
distraint, without the knowledge and P5,000 or imprisonment of not less
consent of the Commissioner. than 2 years and 1 day but not
more than 4 years, or both
If the amount of tax not
withheld or remitted -
P 1,000
20% of the value of the property
P 50,000
This violation cannot be compromised
because it involves fraud.
Sec. 204 NIRC
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REVISED SCHEDULE OF COMPROMISE PENALTY
CODE
SEC
AMOUNT OF COMPROMISE NATURE OF VIOLATION CRIMINAL PENALTY IMPOSED
277 Failure to surrender property placed Violator is personally liable to pay a
under distraint and levy. sum equal to the value of the property
or rights not surrendered (not
exceeding the amount of taxes due
including penalties and interest
together with costs and interests).
In addition, such violation shall be
fined in a sum of not less than
P5,000 or imprisonment for not less
than 6 months and 1 day but
not more than 2 years, or both.
278 Procuring the unlawful divulgence of any Fine of not more than P2,000 or This violation should not be compromised
confidential information regarding the imprisonment of not less than because it is against public policy to
business, income or inheritance of 6 months nor more than 5 years, allow divulgence of confidential information,
any taxpayer; unlawfully publishing or or both. unless this is validly authorized under
printing the income, profits, losses or existing law.
expenditures appearing in any income
tax return
P 50,000
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