BIR Ruling

December 13, 1972 The City Treasurer Quezon City S i r : This refers to your letter dated November 16, 1972 requesting clarification whether Department Memorandum Circular No. 29-72 dated October 31, 1972 has superseded General Circular No. V-240 dated March 15, 1957 of this Office which provides the schedule of compromise penalties for violations of the Weights and Measures Law. According to the above-cited circular issued by the Department of Finance the full penalties under the law should be applied and immediate appropriate criminal charges should be filed against those found to have violated Section 289 of the National Internal Revenue Code concerning the fraudulent use of instruments of weights and measures. This means that violations of Section 289 of the Tax Code, shall not be settled extrajudicially by paying the compromise penalty provided under paragraph (c), Schedule "M" of General Circular No. V-240 in lieu of criminal prosecution. It follows also that even first offenders will not be allowed to settle their violations extrajudicially and, instead they will be subject to criminal prosecution in line with Department Memorandum Circular No. 29-72. cdtech Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue