The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code

The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code

Revenue Memorandum Order No. 007-15Jan 22, 2015Other Rules and Procedures24 min read

Revenue Memorandum Order No. 007-15, issued on January 22, 2015, establishes a revised and uniform schedule of compromise penalties for violations of the National Internal Revenue Code (NIRC) in the Philippines. It aims to ensure consistent application of penalties, particularly for criminal violations not involving fraud, while excluding certain acts of tax evasion from compromise coverage. The order mandates that internal revenue officers strictly adhere to the revised schedule and provides guidelines for cases involving fraud, which must be referred for criminal action. Additionally, it outlines the circumstances under which compromise penalties can be adjusted and emphasizes that all penalties should be clearly itemized in assessment notices, separate from basic tax assessments. This order revokes any previous inconsistent directives and is effective immediately.

What is The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code about?: Revenue Memorandum Order No. 007-15, issued on January 22, 2015, establishes a revised and uniform schedule of compromise penalties for violations of the National Internal Revenue Code (NIRC) in the Philippines. It aims to ensure consistent application of penalties, particularly for criminal violations not involving fraud, while excluding certain acts of tax evasion from compromise coverage. The order mandates that internal revenue officers strictly adhere to the revised schedule and provides guidelines for cases involving fraud, which must be referred for criminal action. Additionally, it outlines the circumstances under which compromise penalties can be adjusted and emphasizes that all penalties should be clearly itemized in assessment notices, separate from basic tax assessments. This order revokes any previous inconsistent directives and is effective immediately.
What type of law is Revenue Memorandum Order No. 007-15?: The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code (Revenue Memorandum Order No. 007-15) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
When was The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code enacted?: The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code (Revenue Memorandum Order No. 007-15) was enacted on Jan 22, 2015.
What is the citation for The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code?: The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code, Revenue Memorandum Order No. 007-15, Jan 22, 2015 (Philippines)

Law Information

Reference Number: Revenue Memorandum Order No. 007-15
Date Enacted: Jan 22, 2015
Category: Other Rules and Procedures
Subcategory: Taxation
Jurisdiction: Philippines
Enacting Body: Congress of the Philippines

January 22, 2015

REVENUE MEMORANDUM ORDER NO. 007-15

SUBJECT	:	The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code

TO	:	All Internal Revenue Officers and Others Concerned

I. Objectives:

This Order is issued to adopt and implement a uniform application of the compromise penalties involving violations of the National Internal Revenue Code of 1997 (Tax Code), as amended, as well as to update the Schedule of Compromise Penalties specified under RMO No. 19-2007 and further deleting from the coverage thereof certain acts commonly resorted to by taxpayers as means of tax evasion.

II. Policies:

The applicable policies and guidelines prescribed under RMO No. 19-2007 shall remain for the strict compliance by all concerned, and are quoted as follows:

1. In all cases of criminal violations of the NIRC, not involving the commission of fraudulent act, it is directed that henceforth, compromise penalties to be imposed shall follow strictly the amounts in the attached "Revised Schedule of Compromise Penalties", marked as Annex "A" and made an integral part hereof.

2. Certain acts/violations which are commonly resorted to by taxpayers as means of tax evasion are deleted from the coverage thereof for having met the requirements of the definition of fraudulent acts.

III. Guidelines and Instructions:

1. The internal revenue officers concerned shall apply the Revised Schedule of Compromise Penalties embodied in Annex "A" to ensure uniformity of action.

2. Cases involving fraud shall be referred to the concerned Division having jurisdiction over the case, for the institution of the corresponding criminal action. DSATCI

3. In no case shall the compromise penalty differ in amount from those specified in the aforementioned Schedule, except when duly approved by the Commissioner or concerned Deputy Commissioner, or in proper cases, by the Regional Directors.

4. Although all amounts of compromise penalties incident to violations shall be itemized in the assessment notice and/or demand letter, the same should not form part of assessment notice that reflects deficiency basic tax, surcharge and interest but should appear in a separate assessment notice/demand letter as the amount suggested to the taxpayer to pay in lieu of criminal prosecution. If paid, the compromise penalties shall be collected and accounted for under the usual procedures, as internal revenue collection.

5. Since compromise penalties are only amounts suggested in settlement of criminal liability, and may not therefore be imposed or exacted on the taxpayer, the violation shall be referred to the appropriate office for criminal action in the event that a taxpayer refuses to pay the suggested compromise penalty.

6. The schedule of compromise penalties herein prescribed shall not prevent the Commissioner or his duly authorized representative from accepting a compromise amount higher than what is provided hereof. A compromise offer lower than the prescribed amount may be accepted after approval by the Commissioner of Internal Revenue or the concerned Deputy Commissioner/Assistant Commissioner/Regional Director.

IV. Repealing Clause:

All other orders which are inconsistent herewith are hereby repealed or revoked accordingly.

V. Effectivity:

This Order shall take effect immediately.

(SGD.) KIM S. JACINTO-HENARESCommissioner

ANNEX A

Revised Schedule of Compromise Penalty

Code	Nature of Violation	Criminal Penalty Imposed				Amount of Compromise
Sec

90/275	Failure to have the	Fine of not more than P1,000 or				If the gross estate
	statement of assets of the	imprisonment of not more than				But Does	Compromise
	decedent and the	6 months, or both. (Sec. 275,		Exceeds		Not Exceed	is
	deductions from gross	NIRC)			P2,000,000		P5,000,000	P7,500
	estate certified by an				5,000,000		10,000,000	10,000
	independent CPA duly				10,000,000		25,000,000	20,000
	accredited by the BIR				25,000,000		50,000,000	25,000
						50,000,000		xxx	50,000

232/235	Failure to keep/preserve	Fine of not more than P1,000 or		If gross annual sales, earnings or receipts
	records required by law or	imprisonment for not more than		Exceeds		But Does	Compromise
	regulations	(six) 6 months, or both. (Sec.				Not Exceed	is
			275, NIRC)			Pxxx		P50,000	P1,000
						50,000		100,000	3,000
						100,000		500,000	5,000
						500,000		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		xxx	50,000

232	Failure to have books of	Fine of not more than P1,000 or		If gross annual sales earnings or receipts
	accounts audited and have	imprisonment of not more than 6		Exceeds		But Does	Compromise
	the financial statements	months, or both. (Sec. 275, NIRC)				Not Exceed	is
	attached to the income tax				P25,000 (for	P200,000	P3,000
	return certified by an				any Quarter);	(for the year);
	independent CPA duly
	accredited by the BIR				200,000		500,000	5,000
						500,000		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

236/258	Failure to Register	Fine of not less than P5,000 but		If the subject establishment is located in
			not more than P20,000 and		the following:
			imprisonment of not less than 6		a. Cities			20,000*
			months but not more than 2		b. 1st class municipalities	10,000*
			years			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	Fine of not less than P30,000 but		a. Cities			30,000
	registration fee by a person	not more than P50,000 and		b. 1st class municipalities	20,000
	engaged in the business of	suffer imprisonment of not		c. 2nd class municipalities	15,000
	distilling, rectifying,	less than 2 years but not more		d. 3rd class municipalities	10,000
	repacking, compounding or	than 4 years
	manufacturing article
	subject to excise tax

236/275	Failure to Pay & Display the	Fine of not more than 1,000 or					P1,000
	Annual Registration Fee	imprisonment of not more than 6
	(BIR Form 0605)	months (Sec. 275, NIRC)

236/275	No Certificate of	Fine of not more than 1,000 or					P1,000
	Registration displayed	imprisonment of not more than 6
			months (Sec. 275, NIRC)

236/275	Failure to display the	Fine of not more than 1,000 or					P1,000
	poster "Ask for	imprisonment of not more than 6
	BIR Receipt" or "Notice to	months, or both.
	the Public to demand	(Sec. 275, NIRC)
	receipts/invoice"

236/275	Failure to attach or paste	Fine of not more than 1,000 or					P1,000 per unit
	authorized sticker/DECAL	imprisonment of not more than 6
	authorizing the use of	months, or both. (Sec. 275, NIRC)
	CRM/POS/CAS

	Failure to present							P1,000
	application form (BIR Form
	1900 and 1905) to use
	registered sales
	books/permit to use loose
	leaf sales books

238/275	Failure of the printer to	Fine of not more than P1,000 or		First		Second
	submit the required	imprisonment of not more than 6		Offense		Offense
	quarterly report (Sec. 238,	months or both			P5,000		P10,000
	NIRC)
						Subsequent offenses shall be considered as
						willful failure, and thus not subject to
						compromise.

250	Failure to make, file, or				One Thousand Pesos (P1,000) for each failure
	submit the complete				to make, file, or submit the said information
	quarterly Summary Lists of				returns. Provided, however, that the
	Sales and Purchases-Local &				aggregate amount to be imposed for such
	Imported (SLSP), the Annual				failures during a calendar year shall not
	Alpha List of Payees and/or				exceed Twenty-Five Thousand Pesos
	Employees subjected to				(P25,000).
	withholding taxes, or
	supply correct and accurate				For this purpose, failure to supply the
	information therein at the				required information for each buyer or seller
	time or times required by				of goods and services shall constitute a
	the Tax Code, as amended,				single punishable act or omission
	or other existing				pursuant to Revenue Memorandum Circular
	rules and regulations				(RMC) No. 51-2009.

						Notwithstanding the foregoing, failure on the
						part of the taxpayer to make, file or submit
						the required complete Schedules of
						Sales/Purchases including Importations, if any,
						(SLS/P/I)/Annual Alpha Lists at the time
						or times required by the Tax Code, as
						amended, and other existing rules and
						regulations under the following
						circumstances shall be considered as willful
						failure/neglect tantamount to fraud and thus
						cannot be compromised:

						(a)	failure to submit for at least:

							•	two (2) times in a taxable year, in
								the case of required complete
								SLS/P/I;

							•	two (2) consecutive years, in the
								case of Annual Alpha Lists of
								Payees from whom Taxes were
								Withheld; and

						(b)	non-submission in the format
							prescribed.

						Complete Summary Lists refers to the set of
						Summary Lists of Sales (SLS) and Summary
						Lists of Purchases (SLP). In the case of those
						with importations, completeness shall
						include not only SLS and SLP but also the
						Summary Lists of Importations (SLI). Failure
						to submit the full/complete lists shall be
						counted as one violation.

						Thus, submission of incomplete lists,
						including the submission of erroneous lists,
						shall be considered as an act of non-
						submission. The submission of falsified
						information is an act of fraud and cannot be
						compromised.

						Non-compliance with a duly issued
						Subpoena Duces Tecum (SDT) is penalized
						under Sec. 266 of the Tax Code, as amended,
						and the prosecution thereof is provided under
						RMO No. 10-2013.

250	Failure to make, file or				One Thousand Pesos (P1,000) for each
	submit information returns,				information return, schedule, report, sworn
	schedules, reports, sworn				statement, certification and other document
	statements, certifications				not made, filed or submitted, or for each
	and other documents,				record not maintained. Provided, however,
	(except quarterly SLS/P/I,				that the aggregate amount to be imposed for
	and the Annual Alpha List of				such failures during a calendar year shall not
	Payees and/or the Annual				exceed Twenty Five Thousand Pesos
	Alpha List of Employees				(P25,000).
	subjected to withholding
	taxes), or keep any record
	required by the Tax Code, as
	amended, or other existing
	rules and regulations

250	Failure to supply correct				One Thousand Pesos (P1,000) for each
	and accurate information				incorrect or erroneous information
	in the information returns,				supplied in the information return, schedule,
	schedules, reports, sworn				report, sworn statement, certification and
	statements, certifications				other document. Provided, however, that the
	and other documents				aggregate amount to be imposed for such
	(except quarterly SLS/P/I,				failures during a calendar year shall not
	and the Annual Alpha List of				exceed Twenty Five Thousand Pesos
	Payees and/or the Annual				(P25,000).
	Alpha List of Employees
	subjected to withholding
	taxes) required by the Tax
	Code, as amended, or other
	existing rules and regulations

254	Willful attempt to evade or	Fine of not less than P30,000 but		This violation cannot be compromised
	defeat any tax imposed by	not more than P100,000 and		because it involves fraud. (Sec. 204, NIRC)
	the National Internal	imprisonment of not less than
	Revenue Code or the	two (2) years but not more than
	payment thereof.	four (4) years

255	Failure to	Fine of not less than P10,000 and		If gross sales, earnings or receipts; or gross
	make/file/submit any	imprisonment of not less than		estate or gift (based on the subject
	return or supply correct	one (1) year but not more than		returns/information for filing/submission)
	information at the time or	ten (10) years					But does not	Compromise
	times required by law or				Exceeds		exceed	is
	regulation				Pxxx		P50,000	P1,000
						50,000		100,000	3,000
						100,000		500,000	5,000
						500,000		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

255	Failure to withhold or	Fine of not less than P10,000 and		If the amount of tax not withheld or
	remit withheld taxes at the	imprisonment of not less than				remitted
	time or times required by	one (1) year but not more than				But Does	Compromise
	law or regulations	ten (10) years			Exceeds		Not Exceed	is
						Pxxx		P5,000	P1,000
						5,000		15,000	3,000
						15,000		20,000	5,000
						20,000		50,000	10,000
						50,000		500,000	15,000
						500,000		1,000,000	20,000
						1,000,000		xxx	25,000

255	Failure to refund excess	Fine of not less than P10,000 and		If the amount of excess withholding taxes
	taxes withheld on	imprisonment of not less than			not refunded
	compensation	one (1) year but not more than		Exceeds		But does not	Compromise
			ten (10) years					Exceed	is
						Pxxx		P5,000	P1,000
						5,000		15,000	3,000
						15,000		20,000	5,000
						20,000		50,000	10,000
						50,000		500,000	15,000
						500,000		1,000,000	20,000
						1,000,000		xxx	25,000

255	Misrepresentation as to	Fine of not less than P10,000 but		This violation cannot be compromised
	actual filing of return or	not more than P20,000 and		because it involves fraud. (Sec. 204, NIRC)
	statement or withdrawal of	imprisonment of not less than
	return or statement	one (1) year but not more than
	already filed	three (3) years

255	Failure to make, file or	Fine of not less than Ten		"Willful failure" implies fraud which cannot
	submit the required	Thousand Pesos (P10,000) and		be compromised.
	complete SLS/P/I, Annual	imprisonment of not less than one
	Alpha List of Payees and	(1) year but not more than ten
	Annual Alpha List of	(10) years
	Employees in the prescribed
	format at the time or times
	required by the Tax Code, as
	amended, or other existing
	rules and regulations.

	Failure to make, file or
	submit for at least:

	•	two (2) times in a
		taxable year, in the
		case of complete
		SLS/P/I; and/or

	•	two (2) consecutive
		years, in the case of
		Annual Alpha List of
		Payees and/or Alpha
		List of Employees from
		whom Taxes were
		Withheld

	in the prescribed format at
	the time or times required
	by the Tax Code
	constitutes willful failure
	and cannot be
	compromised.

255	Failure to file and/or pay	Fine of not less than P10,000 and		If the amount of tax unpaid
	any internal	imprisonment of not less than				But Does	Compromise
	revenue tax at the time or	one (1) year but not more than		Exceeds		Not Exceed	is
	times required by law or	10 years			Pxxx		P5,000	P1,000
	regulation				5,000		10,000	3,000
						10,000		20,000	5,000
						20,000		50,000	10,000
						50,000		100,000	15,000
						100,000		500,000	20,000
						500,000		1,000,000	30,000
						1,000,000		5,000,000	40,000
						5,000,000		xxx	50,000

256	Any act or omission by a	Fine of not less than P50,000 but		P10,000 for corporation, or the amount of
	corporation which is	not more than P100,000 (in		compromise penalty set forth in this
	penalized under the NIRC	addition to penalty set forth or		Schedule for particular act or omission,
			imposed on the responsible		whichever is higher.
			corporate officer, partner or
			employee)			P5,000 for responsible officer, partner or
						employee
257	a)	Violations committed by	Fine of not less than P50,000 but
		any financial officer or	not more than P100,000 and
		an independent CPA, or	imprisonment of not less than
		any person under his	two (2) years but not more than
		direction as follows:	six (6) years. (if the offender is a
			CPA, his certificate shall
			automatically be revoked or
			cancelled upon conviction.)

	1)	Willful falsification of				This violation cannot be compromised
		any report or statement				because it involves fraud. (Sec. 204, NIRC)
		on any examination or
		audit; rendering reports
		(including exhibits,
		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				This violation cannot be compromised
		statement of a business				because it involves fraud. (Sec. 204, NIRC)
		enterprise containing an
		essential misstatement
		of facts or omission as to
		transactions, taxable
		income, deduction and
		exemption of a client.

	b)	Violations committed by	Fine of not less than P50,000 but
		persons who are not	not more than P100,000 and
		CPAs —	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
	1)	Examination and audit	proceedings for deportation.
		of books of accounts of				P25,000
		taxpayers;

	2)	Offering to sign and				P25,000
		certifying financial
		statements without
		audit;

	3)	Offers any taxpayer the				P25,000
		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				This violation cannot be compromised
		entry or enters any false				because it involves fraud. (Sec. 204, NIRC)
		or fictitious name in the
		books of accounts
		mentioned in the
		preceding paragraphs;

	5)	Keeping of two or more				This violation cannot be compromised
		sets of such records or				because it involves fraud. (Sec. 204, NIRC)
		books of accounts;

	6)	In any way commits an				P1,000 or the compromise penalty set forth
		act or omission in				in this Schedule for the particular act or
		violation of the				omission, whichever is higher, or cannot be
		provisions of Sec. 257,				compromised if it involves fraud.
		NIRC; or

						If gross sales, earnings or receipts
	7)	(i) Failure to keep books				Exceeds		But Does	Compromise
		of accounts or records in						Not Exceed	is
		a native language,				Pxxx		50,000	P1,000
		English or Spanish or				50,000		100,000	3,000
		make a true and				100,000		500,000	5,000
		complete transaction				500,000		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		xxx	50,000

						This violation cannot be compromised
		(ii) Where books kept in				because it involves fraud. (Sec. 204, NIRC)
		a native language, English
		or Spanish are found to
		be at material variance
		with books kept in
		another language
						This violation cannot be compromised
						because it involves fraud. (Sec. 204, NIRC)

	8)	Willful attempt to evade	Fine of not less than P50,000 but
		or defeat any tax	not more than P100,000 and
		imposed under the Code	suffer imprisonment of not less
		or knowingly uses fake	than two (2) years but not less
		or falsified Revenue	than six (6) years
		Official Receipts, Letters
		of Authority, Certificates
		Authorizing
		Registration, Tax Credit
		Certificates, Tax Debit
		Memoranda and other
		Accountable Forms

259	Illegal collection of foreign	Fine of not less than P20,000 but		P20,000
	payments collection of	not more than P50,000 and
	foreign payments under	imprisonment of not less than 1
	Sec. 67, NIRC without any	year but not more than 2 years
	license or in violation of
	implementing regulations

260	Unlawful possession of	Fine of not less than P20,000 but		P 100,000, including forfeiture of unlawful
	cigarette paper in bobbins	not more than P100,000 and		articles/items;
	or rolls, cigarette tipping	imprisonment of not less than 6		Subsequent violations shall not be subject to
	paper or cigarette filter tips	years and 1 day but not more		compromise.
			than 12 years

261	Unlawful use of denatured	Fine of not less than P20,000 but		P 100,000, including forfeiture of unlawful
	alcohol		not more than P100,000 and		articles/items;
			imprisonment of not less than 6		Subsequent violations shall not be subject to
			years and 1 day but not more		compromise.
			than 12 years

261	Unlawful recovery or	Fine of not less than P20,000 but		P 100,000, including forfeiture of unlawful
	attempt to recover by	not more than P100,000 and		articles/items;
	distillation or other process	imprisonment of not less than 6		Subsequent violations shall not be subject to
	any denatured alcohol or	years and 1 day but not more		compromise.
	who knowingly disposes	than 12 years
	alcohol so recovered or
	redistilled

262	Shipment or removal of	Fine of not less than P20,000 but		P100,000, including forfeiture of unlawful
	liquor or tobacco products	not more than P100,000 and		articles/items;
	under false name or brand	imprisonment of not less than 6		Subsequent violations shall not be subject to
	or as an imitation of any	years and 1 day but not more		compromise.
	existing name or brand	than 12 years

263	a)	Unlawful possession or	If the appraised value of the		Compromise allowable on a case
		removal of imported	article under the Tariff and		to case basis
		articles subject to excise	Customs Code (TCC) —
		tax without payment of
		tax
				Value Does	Penalty
			Exceeds	Not Exceed	is

			xxx	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: 10,000-20,000		2,000*
					and imprisonment of
					not less than 2 years
					but not more than 4 years

			50,000	150,000	Fine: 30,000-60,000		60,000*
					and imprisonment of 4
					years but not more than
					6 years

			150,000	xxxx	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

	b)	Unlawful possession of	Fine of not less than 10 times the		P100,000 plus forfeiture of the untaxed
		locally manufactured	amount of excise tax due but not		article
		articles subject to excise	less than P500 and imprisonment		Subsequent violations shall not be subject to
		tax without payment of	of not less than two (2) years but		compromise.
		the tax	not more than four (4) years

263	c)	Unlawful removal of	Fine of not less than 10 times the		P100,000 plus forfeiture of the untaxed
		untaxed articles subject	amount of excise tax due but not		article
		to excise tax from the	less than P1,000 and		Subsequent violations shall not be subject to
		place of production	imprisonment of not less than		compromise.
			one (1) year but not more than
			two (2) years

264	a)	Failure or refusal to	Fine of not less than P1,000 but		Specific		First	Second
		issue receipts or sales or	not more than P50,000 and		Violation		Offense	Offense
		commercial invoices;	imprisonment of not less than	a)	For failure to	P10,000	P20,000
		issuing receipts invoices	four (4) years			issue receipts	Subsequent violations
		not truly reflecting				or sales or		shall not be subject to
		and/or containing all				sales or		compromise.
		information required				commercial
		therein or using				invoices
		multiple or double
		receipts or invoices			b)	For refusal to	P25,000	P50,000
						issue receipts	Subsequent violations
						or sales or		shall not be subject to
						commercial	compromise.
						invoices

						If the		P20,000	P50,000
						information	Subsequent violations
						missing is the	shall not be subject to
						correct amount	compromise.
						of the
						transaction
								P5,000	P10,000

					c)	For issuance of	Subsequent violations
						receipts that	shall not be subject to
						do not truly	compromise.
						reflect and/or
						contain all the
						information
						required to be
						shown therein

								P20,000	P50,000
						If the duplicate	Subsequent violations
						copy of the	shall not be subject to
						invoice is blank	compromise.
						but the original
						copy thereof is
						detached from
						the booklet and
						cannot be
						accounted for
								Not qualified for
						If the amount	compromise
						of the
						transaction
						stated in the
						taxpayer's
						copy is
						understated
						versus the
						amount per
						copy of the
						invoice issue to
						the purchaser

								P20,000	P50,000
					d)	(i) For use of	Subsequent violations
						unregistered	shall not be subject to
						receipts or		compromise.
						invoices

								P25,000/	P50,000/
								unit	unit
						(ii) Use of		Subsequent violations
						unregistered	shall not be subject to
						cash register	compromise.
						machines in
						lieu of invoices
						or receipts

								Not qualified for
					e)	For possession	compromise
						or use of
						multiple or
						double receipts
						or invoices

					f)	For printing or
						causing, aiding
						or abetting the
						printing of:

								P25,000	P50,000
						1) Receipts	Subsequent violations
						or invoices	shall not be subject to
						without	compromise.
						authority from
						the BIR

								Not qualified for
						2) Double		compromise
						or multiple sets
						of receipts or
						invoices

								P20,000	P50,000
						3) Receipts	Subsequent violations
						or invoices	shall not be subject to
						bearing any of	compromise.
						the following:

						a.	Consecutive
							numbers

						b.	Name of
							Taxpayer

						c.	Business Style

						d.	Business
							address of the
							person or
							entity to use
							the same

						e.	TIN

						f.	Name,
							address, date,
							authority no.
							of the printer
							and inclusive
							serial
							numbers of
							the batch or
							receipts
							printed

265	Offenses relating to
	internal revenue stamps —

	1)	Making, importing,	Fine of not less than P20,000 but		P20,000, including forfeiture of unlawful
		selling, using or	not more than P50,000 and		articles/items;
		possessing without	imprisonment for not less than 4		Subsequent violations shall not be subject to
		express authority from	years but not more than 8 years		compromise.
		the Commissioner any
		dye for printing or
		making stamps, label
		tags or playing cards

	2)	Erasing the	Fine of not less than P20,000 but		This violation cannot be compromised
		cancellation marks of	not more than P50,000 and		because it involves fraud.
		any stamps previously	imprisonment for not less than 4		(Sec. 204, NIRC)
		used or altering the	years but not more than 8 years
		written figures or
		letters, or cancelling
		marks on internal
		revenue stamps

	3)	Possession of false,	Fine of not less than P20,000 but		This violation cannot be compromised
		counterfeit, restored or	not more than P50,000 and		because it involves fraud.
		altered stamps, labels,	imprisonment for not less than 4		(Sec. 204, NIRC)
		or tags, or causes the	years but not more than 8 years
		commission of any such
		offense by another

	4)	Selling or offering for	Fine of not less than P20,000 but		This violation cannot be compromised
		sale any box or package	not more than P50,000 and		because it involves fraud.
		containing articles	imprisonment for not less than 4		(Sec. 204, NIRC)
		subject to excise tax	years but not more than 8 years
		with false, spurious or
		counterfeit stamps or
		labels or sells from any
		such fraudulent box,
		package or container as
		aforesaid

	5)	Giving away or	Fine of not less than P20,000 but		P50,000, including forfeiture of unlawful
		accepting from another	not more than P50,000 and		articles/items;
		or sells, buys, or uses	imprisonment for not less than 4		Subsequent violations shall not be subject to
		containers on which	years but not more than 8 years		compromise.
		the stamps are not
		completely destroyed

266	Failure to obey summons;	Fine of not less than P5,000 but		First Offense: P10,000
	to testify; or to appear and	not more than P10,000 and
	produce books of accounts,	imprisonment for not less than		Second Offense: P20,000
	records, etc. or to furnish	one (1) year but not more than
	information required under	two (2) years			Subsequent violations shall not be subject to
	the NIRC				compromise.

268	Misdeclaration or	Summary cancellation or		This violation cannot be compromised
	misrepresentation by	withdrawal of permit to engage		because it involves fraud. (Sec. 204, NIRC)
	manufacturers of articles	in business as a manufacturer of
	subject to excise tax under	articles subject to excise tax
	Title IV, NIRC, or any
	pertinent data or
	information required
	therein

272	Failure of government	Fine of not less than P5,000 not		If the amount of tax not withheld
	officer or employee	more than P50,000 or				or remitted —
	charged with the duty to	imprisonment of not less than 6		Exceed		But Does	Compromise
	deduct and withhold any	months and 1 day but not more				Not Exceed	is
	internal revenue tax and	than 2 years, or both		Pxxx		P5,000	P1,000
	failure to remit the same in				5,000		15,000	3,000
	accordance with the				15,000		20,000	5,000
	provisions of the NIRC				20,000		50,000	10,000
						50,000		500,000	15,000
						500,000		1,000,000	20,000
						1,000,000		xxx	25,000

275	Violation of any provision	Fine of not more than P1,000 or		P1,000 for each violation
	of the National Internal	imprisonment of not more than 6
	Revenue Code or any	months or both
	regulation of the
	Department of Finance for
	which no specific penalty is
	provided by law

276	Sale, transfer, encumbrance	Fine of not less than twice the		20% of the value of the property
	or any other disposition of	value of the property sold,
	any property or part	encumbered or disposed of, but
	thereof placed under	not less than P5,000 or
	constructive distraint,	imprisonment of not less than 2
	without the knowledge and	years and 1 day but not more
	consent of the	than 4 years, or both
	Commissioner

277	Failure to surrender	Violator is personally liable to		P50,000
	property placed under	pay a sum equal to the value of
	distraint and levy	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	Fine of not more than P2,000 or		This violation shall not be compromised
	divulgence of any	imprisonment of not less than 6		because it is against public policy to allow
	confidential information	months nor more than 5 years, or		divulgence of confidential information,
	regarding the business,	both			unless this is validly authorized under
	income or inheritance of				existing law.
	any taxpayer; unlawfully
	publishing or printing the
	income, profits, losses or
	expenditures appearing in
	any income tax return

Cite This Law

Standard Citation

The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code, Revenue Memorandum Order No. 007-15, Jan 22, 2015 (Philippines)

Bluebook Style

The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code, Revenue Memorandum Order No. 007-15 (Phil. 2015)

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The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code

Revenue Memorandum Order No. 007-15Jan 22, 2015Other Rules and Procedures24 min read

Quick Answers

What is The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code about?

What type of law is Revenue Memorandum Order No. 007-15?

The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code (Revenue Memorandum Order No. 007-15) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.

When was The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code enacted?

The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code (Revenue Memorandum Order No. 007-15) was enacted on Jan 22, 2015.

What is the citation for The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code?

The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code, Revenue Memorandum Order No. 007-15, Jan 22, 2015 (Philippines)

January 22, 2015

REVENUE MEMORANDUM ORDER NO. 007-15

SUBJECT	:	The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code

TO	:	All Internal Revenue Officers and Others Concerned

I. Objectives:

II. Policies:

The applicable policies and guidelines prescribed under RMO No. 19-2007 shall remain for the strict compliance by all concerned, and are quoted as follows:

III. Guidelines and Instructions:

1. The internal revenue officers concerned shall apply the Revised Schedule of Compromise Penalties embodied in Annex "A" to ensure uniformity of action.

2. Cases involving fraud shall be referred to the concerned Division having jurisdiction over the case, for the institution of the corresponding criminal action. DSATCI

IV. Repealing Clause:

All other orders which are inconsistent herewith are hereby repealed or revoked accordingly.

V. Effectivity:

This Order shall take effect immediately.

(SGD.) KIM S. JACINTO-HENARESCommissioner

ANNEX A

Revised Schedule of Compromise Penalty

Code	Nature of Violation	Criminal Penalty Imposed				Amount of Compromise
Sec

90/275	Failure to have the	Fine of not more than P1,000 or				If the gross estate
	statement of assets of the	imprisonment of not more than				But Does	Compromise
	decedent and the	6 months, or both. (Sec. 275,		Exceeds		Not Exceed	is
	deductions from gross	NIRC)			P2,000,000		P5,000,000	P7,500
	estate certified by an				5,000,000		10,000,000	10,000
	independent CPA duly				10,000,000		25,000,000	20,000
	accredited by the BIR				25,000,000		50,000,000	25,000
						50,000,000		xxx	50,000

232/235	Failure to keep/preserve	Fine of not more than P1,000 or		If gross annual sales, earnings or receipts
	records required by law or	imprisonment for not more than		Exceeds		But Does	Compromise
	regulations	(six) 6 months, or both. (Sec.				Not Exceed	is
			275, NIRC)			Pxxx		P50,000	P1,000
						50,000		100,000	3,000
						100,000		500,000	5,000
						500,000		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		xxx	50,000

232	Failure to have books of	Fine of not more than P1,000 or		If gross annual sales earnings or receipts
	accounts audited and have	imprisonment of not more than 6		Exceeds		But Does	Compromise
	the financial statements	months, or both. (Sec. 275, NIRC)				Not Exceed	is
	attached to the income tax				P25,000 (for	P200,000	P3,000
	return certified by an				any Quarter);	(for the year);
	independent CPA duly
	accredited by the BIR				200,000		500,000	5,000
						500,000		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

236/258	Failure to Register	Fine of not less than P5,000 but		If the subject establishment is located in
			not more than P20,000 and		the following:
			imprisonment of not less than 6		a. Cities			20,000*
			months but not more than 2		b. 1st class municipalities	10,000*
			years			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	Fine of not less than P30,000 but		a. Cities			30,000
	registration fee by a person	not more than P50,000 and		b. 1st class municipalities	20,000
	engaged in the business of	suffer imprisonment of not		c. 2nd class municipalities	15,000
	distilling, rectifying,	less than 2 years but not more		d. 3rd class municipalities	10,000
	repacking, compounding or	than 4 years
	manufacturing article
	subject to excise tax

236/275	Failure to Pay & Display the	Fine of not more than 1,000 or					P1,000
	Annual Registration Fee	imprisonment of not more than 6
	(BIR Form 0605)	months (Sec. 275, NIRC)

236/275	No Certificate of	Fine of not more than 1,000 or					P1,000
	Registration displayed	imprisonment of not more than 6
			months (Sec. 275, NIRC)

236/275	Failure to display the	Fine of not more than 1,000 or					P1,000
	poster "Ask for	imprisonment of not more than 6
	BIR Receipt" or "Notice to	months, or both.
	the Public to demand	(Sec. 275, NIRC)
	receipts/invoice"

236/275	Failure to attach or paste	Fine of not more than 1,000 or					P1,000 per unit
	authorized sticker/DECAL	imprisonment of not more than 6
	authorizing the use of	months, or both. (Sec. 275, NIRC)
	CRM/POS/CAS

	Failure to present							P1,000
	application form (BIR Form
	1900 and 1905) to use
	registered sales
	books/permit to use loose
	leaf sales books

238/275	Failure of the printer to	Fine of not more than P1,000 or		First		Second
	submit the required	imprisonment of not more than 6		Offense		Offense
	quarterly report (Sec. 238,	months or both			P5,000		P10,000
	NIRC)
						Subsequent offenses shall be considered as
						willful failure, and thus not subject to
						compromise.

250	Failure to make, file, or				One Thousand Pesos (P1,000) for each failure
	submit the complete				to make, file, or submit the said information
	quarterly Summary Lists of				returns. Provided, however, that the
	Sales and Purchases-Local &				aggregate amount to be imposed for such
	Imported (SLSP), the Annual				failures during a calendar year shall not
	Alpha List of Payees and/or				exceed Twenty-Five Thousand Pesos
	Employees subjected to				(P25,000).
	withholding taxes, or
	supply correct and accurate				For this purpose, failure to supply the
	information therein at the				required information for each buyer or seller
	time or times required by				of goods and services shall constitute a
	the Tax Code, as amended,				single punishable act or omission
	or other existing				pursuant to Revenue Memorandum Circular
	rules and regulations				(RMC) No. 51-2009.

						Notwithstanding the foregoing, failure on the
						part of the taxpayer to make, file or submit
						the required complete Schedules of
						Sales/Purchases including Importations, if any,
						(SLS/P/I)/Annual Alpha Lists at the time
						or times required by the Tax Code, as
						amended, and other existing rules and
						regulations under the following
						circumstances shall be considered as willful
						failure/neglect tantamount to fraud and thus
						cannot be compromised:

						(a)	failure to submit for at least:

							•	two (2) times in a taxable year, in
								the case of required complete
								SLS/P/I;

							•	two (2) consecutive years, in the
								case of Annual Alpha Lists of
								Payees from whom Taxes were
								Withheld; and

						(b)	non-submission in the format
							prescribed.

						Complete Summary Lists refers to the set of
						Summary Lists of Sales (SLS) and Summary
						Lists of Purchases (SLP). In the case of those
						with importations, completeness shall
						include not only SLS and SLP but also the
						Summary Lists of Importations (SLI). Failure
						to submit the full/complete lists shall be
						counted as one violation.

						Thus, submission of incomplete lists,
						including the submission of erroneous lists,
						shall be considered as an act of non-
						submission. The submission of falsified
						information is an act of fraud and cannot be
						compromised.

						Non-compliance with a duly issued
						Subpoena Duces Tecum (SDT) is penalized
						under Sec. 266 of the Tax Code, as amended,
						and the prosecution thereof is provided under
						RMO No. 10-2013.

250	Failure to make, file or				One Thousand Pesos (P1,000) for each
	submit information returns,				information return, schedule, report, sworn
	schedules, reports, sworn				statement, certification and other document
	statements, certifications				not made, filed or submitted, or for each
	and other documents,				record not maintained. Provided, however,
	(except quarterly SLS/P/I,				that the aggregate amount to be imposed for
	and the Annual Alpha List of				such failures during a calendar year shall not
	Payees and/or the Annual				exceed Twenty Five Thousand Pesos
	Alpha List of Employees				(P25,000).
	subjected to withholding
	taxes), or keep any record
	required by the Tax Code, as
	amended, or other existing
	rules and regulations

250	Failure to supply correct				One Thousand Pesos (P1,000) for each
	and accurate information				incorrect or erroneous information
	in the information returns,				supplied in the information return, schedule,
	schedules, reports, sworn				report, sworn statement, certification and
	statements, certifications				other document. Provided, however, that the
	and other documents				aggregate amount to be imposed for such
	(except quarterly SLS/P/I,				failures during a calendar year shall not
	and the Annual Alpha List of				exceed Twenty Five Thousand Pesos
	Payees and/or the Annual				(P25,000).
	Alpha List of Employees
	subjected to withholding
	taxes) required by the Tax
	Code, as amended, or other
	existing rules and regulations

254	Willful attempt to evade or	Fine of not less than P30,000 but		This violation cannot be compromised
	defeat any tax imposed by	not more than P100,000 and		because it involves fraud. (Sec. 204, NIRC)
	the National Internal	imprisonment of not less than
	Revenue Code or the	two (2) years but not more than
	payment thereof.	four (4) years

255	Failure to	Fine of not less than P10,000 and		If gross sales, earnings or receipts; or gross
	make/file/submit any	imprisonment of not less than		estate or gift (based on the subject
	return or supply correct	one (1) year but not more than		returns/information for filing/submission)
	information at the time or	ten (10) years					But does not	Compromise
	times required by law or				Exceeds		exceed	is
	regulation				Pxxx		P50,000	P1,000
						50,000		100,000	3,000
						100,000		500,000	5,000
						500,000		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

255	Failure to withhold or	Fine of not less than P10,000 and		If the amount of tax not withheld or
	remit withheld taxes at the	imprisonment of not less than				remitted
	time or times required by	one (1) year but not more than				But Does	Compromise
	law or regulations	ten (10) years			Exceeds		Not Exceed	is
						Pxxx		P5,000	P1,000
						5,000		15,000	3,000
						15,000		20,000	5,000
						20,000		50,000	10,000
						50,000		500,000	15,000
						500,000		1,000,000	20,000
						1,000,000		xxx	25,000

255	Failure to refund excess	Fine of not less than P10,000 and		If the amount of excess withholding taxes
	taxes withheld on	imprisonment of not less than			not refunded
	compensation	one (1) year but not more than		Exceeds		But does not	Compromise
			ten (10) years					Exceed	is
						Pxxx		P5,000	P1,000
						5,000		15,000	3,000
						15,000		20,000	5,000
						20,000		50,000	10,000
						50,000		500,000	15,000
						500,000		1,000,000	20,000
						1,000,000		xxx	25,000

255	Misrepresentation as to	Fine of not less than P10,000 but		This violation cannot be compromised
	actual filing of return or	not more than P20,000 and		because it involves fraud. (Sec. 204, NIRC)
	statement or withdrawal of	imprisonment of not less than
	return or statement	one (1) year but not more than
	already filed	three (3) years

255	Failure to make, file or	Fine of not less than Ten		"Willful failure" implies fraud which cannot
	submit the required	Thousand Pesos (P10,000) and		be compromised.
	complete SLS/P/I, Annual	imprisonment of not less than one
	Alpha List of Payees and	(1) year but not more than ten
	Annual Alpha List of	(10) years
	Employees in the prescribed
	format at the time or times
	required by the Tax Code, as
	amended, or other existing
	rules and regulations.

	Failure to make, file or
	submit for at least:

	•	two (2) times in a
		taxable year, in the
		case of complete
		SLS/P/I; and/or

	•	two (2) consecutive
		years, in the case of
		Annual Alpha List of
		Payees and/or Alpha
		List of Employees from
		whom Taxes were
		Withheld

	in the prescribed format at
	the time or times required
	by the Tax Code
	constitutes willful failure
	and cannot be
	compromised.

255	Failure to file and/or pay	Fine of not less than P10,000 and		If the amount of tax unpaid
	any internal	imprisonment of not less than				But Does	Compromise
	revenue tax at the time or	one (1) year but not more than		Exceeds		Not Exceed	is
	times required by law or	10 years			Pxxx		P5,000	P1,000
	regulation				5,000		10,000	3,000
						10,000		20,000	5,000
						20,000		50,000	10,000
						50,000		100,000	15,000
						100,000		500,000	20,000
						500,000		1,000,000	30,000
						1,000,000		5,000,000	40,000
						5,000,000		xxx	50,000

256	Any act or omission by a	Fine of not less than P50,000 but		P10,000 for corporation, or the amount of
	corporation which is	not more than P100,000 (in		compromise penalty set forth in this
	penalized under the NIRC	addition to penalty set forth or		Schedule for particular act or omission,
			imposed on the responsible		whichever is higher.
			corporate officer, partner or
			employee)			P5,000 for responsible officer, partner or
						employee
257	a)	Violations committed by	Fine of not less than P50,000 but
		any financial officer or	not more than P100,000 and
		an independent CPA, or	imprisonment of not less than
		any person under his	two (2) years but not more than
		direction as follows:	six (6) years. (if the offender is a
			CPA, his certificate shall
			automatically be revoked or
			cancelled upon conviction.)

	1)	Willful falsification of				This violation cannot be compromised
		any report or statement				because it involves fraud. (Sec. 204, NIRC)
		on any examination or
		audit; rendering reports
		(including exhibits,
		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				This violation cannot be compromised
		statement of a business				because it involves fraud. (Sec. 204, NIRC)
		enterprise containing an
		essential misstatement
		of facts or omission as to
		transactions, taxable
		income, deduction and
		exemption of a client.

	b)	Violations committed by	Fine of not less than P50,000 but
		persons who are not	not more than P100,000 and
		CPAs —	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
	1)	Examination and audit	proceedings for deportation.
		of books of accounts of				P25,000
		taxpayers;

	2)	Offering to sign and				P25,000
		certifying financial
		statements without
		audit;

	3)	Offers any taxpayer the				P25,000
		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				This violation cannot be compromised
		entry or enters any false				because it involves fraud. (Sec. 204, NIRC)
		or fictitious name in the
		books of accounts
		mentioned in the
		preceding paragraphs;

	5)	Keeping of two or more				This violation cannot be compromised
		sets of such records or				because it involves fraud. (Sec. 204, NIRC)
		books of accounts;

	6)	In any way commits an				P1,000 or the compromise penalty set forth
		act or omission in				in this Schedule for the particular act or
		violation of the				omission, whichever is higher, or cannot be
		provisions of Sec. 257,				compromised if it involves fraud.
		NIRC; or

						If gross sales, earnings or receipts
	7)	(i) Failure to keep books				Exceeds		But Does	Compromise
		of accounts or records in						Not Exceed	is
		a native language,				Pxxx		50,000	P1,000
		English or Spanish or				50,000		100,000	3,000
		make a true and				100,000		500,000	5,000
		complete transaction				500,000		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		xxx	50,000

						This violation cannot be compromised
		(ii) Where books kept in				because it involves fraud. (Sec. 204, NIRC)
		a native language, English
		or Spanish are found to
		be at material variance
		with books kept in
		another language
						This violation cannot be compromised
						because it involves fraud. (Sec. 204, NIRC)

	8)	Willful attempt to evade	Fine of not less than P50,000 but
		or defeat any tax	not more than P100,000 and
		imposed under the Code	suffer imprisonment of not less
		or knowingly uses fake	than two (2) years but not less
		or falsified Revenue	than six (6) years
		Official Receipts, Letters
		of Authority, Certificates
		Authorizing
		Registration, Tax Credit
		Certificates, Tax Debit
		Memoranda and other
		Accountable Forms

259	Illegal collection of foreign	Fine of not less than P20,000 but		P20,000
	payments collection of	not more than P50,000 and
	foreign payments under	imprisonment of not less than 1
	Sec. 67, NIRC without any	year but not more than 2 years
	license or in violation of
	implementing regulations

260	Unlawful possession of	Fine of not less than P20,000 but		P 100,000, including forfeiture of unlawful
	cigarette paper in bobbins	not more than P100,000 and		articles/items;
	or rolls, cigarette tipping	imprisonment of not less than 6		Subsequent violations shall not be subject to
	paper or cigarette filter tips	years and 1 day but not more		compromise.
			than 12 years

261	Unlawful use of denatured	Fine of not less than P20,000 but		P 100,000, including forfeiture of unlawful
	alcohol		not more than P100,000 and		articles/items;
			imprisonment of not less than 6		Subsequent violations shall not be subject to
			years and 1 day but not more		compromise.
			than 12 years

261	Unlawful recovery or	Fine of not less than P20,000 but		P 100,000, including forfeiture of unlawful
	attempt to recover by	not more than P100,000 and		articles/items;
	distillation or other process	imprisonment of not less than 6		Subsequent violations shall not be subject to
	any denatured alcohol or	years and 1 day but not more		compromise.
	who knowingly disposes	than 12 years
	alcohol so recovered or
	redistilled

262	Shipment or removal of	Fine of not less than P20,000 but		P100,000, including forfeiture of unlawful
	liquor or tobacco products	not more than P100,000 and		articles/items;
	under false name or brand	imprisonment of not less than 6		Subsequent violations shall not be subject to
	or as an imitation of any	years and 1 day but not more		compromise.
	existing name or brand	than 12 years

263	a)	Unlawful possession or	If the appraised value of the		Compromise allowable on a case
		removal of imported	article under the Tariff and		to case basis
		articles subject to excise	Customs Code (TCC) —
		tax without payment of
		tax
				Value Does	Penalty
			Exceeds	Not Exceed	is

			xxx	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: 10,000-20,000		2,000*
					and imprisonment of
					not less than 2 years
					but not more than 4 years

			50,000	150,000	Fine: 30,000-60,000		60,000*
					and imprisonment of 4
					years but not more than
					6 years

			150,000	xxxx	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

	b)	Unlawful possession of	Fine of not less than 10 times the		P100,000 plus forfeiture of the untaxed
		locally manufactured	amount of excise tax due but not		article
		articles subject to excise	less than P500 and imprisonment		Subsequent violations shall not be subject to
		tax without payment of	of not less than two (2) years but		compromise.
		the tax	not more than four (4) years

263	c)	Unlawful removal of	Fine of not less than 10 times the		P100,000 plus forfeiture of the untaxed
		untaxed articles subject	amount of excise tax due but not		article
		to excise tax from the	less than P1,000 and		Subsequent violations shall not be subject to
		place of production	imprisonment of not less than		compromise.
			one (1) year but not more than
			two (2) years

264	a)	Failure or refusal to	Fine of not less than P1,000 but		Specific		First	Second
		issue receipts or sales or	not more than P50,000 and		Violation		Offense	Offense
		commercial invoices;	imprisonment of not less than	a)	For failure to	P10,000	P20,000
		issuing receipts invoices	four (4) years			issue receipts	Subsequent violations
		not truly reflecting				or sales or		shall not be subject to
		and/or containing all				sales or		compromise.
		information required				commercial
		therein or using				invoices
		multiple or double
		receipts or invoices			b)	For refusal to	P25,000	P50,000
						issue receipts	Subsequent violations
						or sales or		shall not be subject to
						commercial	compromise.
						invoices

						If the		P20,000	P50,000
						information	Subsequent violations
						missing is the	shall not be subject to
						correct amount	compromise.
						of the
						transaction
								P5,000	P10,000

					c)	For issuance of	Subsequent violations
						receipts that	shall not be subject to
						do not truly	compromise.
						reflect and/or
						contain all the
						information
						required to be
						shown therein

								P20,000	P50,000
						If the duplicate	Subsequent violations
						copy of the	shall not be subject to
						invoice is blank	compromise.
						but the original
						copy thereof is
						detached from
						the booklet and
						cannot be
						accounted for
								Not qualified for
						If the amount	compromise
						of the
						transaction
						stated in the
						taxpayer's
						copy is
						understated
						versus the
						amount per
						copy of the
						invoice issue to
						the purchaser

								P20,000	P50,000
					d)	(i) For use of	Subsequent violations
						unregistered	shall not be subject to
						receipts or		compromise.
						invoices

								P25,000/	P50,000/
								unit	unit
						(ii) Use of		Subsequent violations
						unregistered	shall not be subject to
						cash register	compromise.
						machines in
						lieu of invoices
						or receipts

								Not qualified for
					e)	For possession	compromise
						or use of
						multiple or
						double receipts
						or invoices

					f)	For printing or
						causing, aiding
						or abetting the
						printing of:

								P25,000	P50,000
						1) Receipts	Subsequent violations
						or invoices	shall not be subject to
						without	compromise.
						authority from
						the BIR

								Not qualified for
						2) Double		compromise
						or multiple sets
						of receipts or
						invoices

								P20,000	P50,000
						3) Receipts	Subsequent violations
						or invoices	shall not be subject to
						bearing any of	compromise.
						the following:

						a.	Consecutive
							numbers

						b.	Name of
							Taxpayer

						c.	Business Style

						d.	Business
							address of the
							person or
							entity to use
							the same

						e.	TIN

						f.	Name,
							address, date,
							authority no.
							of the printer
							and inclusive
							serial
							numbers of
							the batch or
							receipts
							printed

265	Offenses relating to
	internal revenue stamps —

	1)	Making, importing,	Fine of not less than P20,000 but		P20,000, including forfeiture of unlawful
		selling, using or	not more than P50,000 and		articles/items;
		possessing without	imprisonment for not less than 4		Subsequent violations shall not be subject to
		express authority from	years but not more than 8 years		compromise.
		the Commissioner any
		dye for printing or
		making stamps, label
		tags or playing cards

	2)	Erasing the	Fine of not less than P20,000 but		This violation cannot be compromised
		cancellation marks of	not more than P50,000 and		because it involves fraud.
		any stamps previously	imprisonment for not less than 4		(Sec. 204, NIRC)
		used or altering the	years but not more than 8 years
		written figures or
		letters, or cancelling
		marks on internal
		revenue stamps

	3)	Possession of false,	Fine of not less than P20,000 but		This violation cannot be compromised
		counterfeit, restored or	not more than P50,000 and		because it involves fraud.
		altered stamps, labels,	imprisonment for not less than 4		(Sec. 204, NIRC)
		or tags, or causes the	years but not more than 8 years
		commission of any such
		offense by another

	4)	Selling or offering for	Fine of not less than P20,000 but		This violation cannot be compromised
		sale any box or package	not more than P50,000 and		because it involves fraud.
		containing articles	imprisonment for not less than 4		(Sec. 204, NIRC)
		subject to excise tax	years but not more than 8 years
		with false, spurious or
		counterfeit stamps or
		labels or sells from any
		such fraudulent box,
		package or container as
		aforesaid

	5)	Giving away or	Fine of not less than P20,000 but		P50,000, including forfeiture of unlawful
		accepting from another	not more than P50,000 and		articles/items;
		or sells, buys, or uses	imprisonment for not less than 4		Subsequent violations shall not be subject to
		containers on which	years but not more than 8 years		compromise.
		the stamps are not
		completely destroyed

266	Failure to obey summons;	Fine of not less than P5,000 but		First Offense: P10,000
	to testify; or to appear and	not more than P10,000 and
	produce books of accounts,	imprisonment for not less than		Second Offense: P20,000
	records, etc. or to furnish	one (1) year but not more than
	information required under	two (2) years			Subsequent violations shall not be subject to
	the NIRC				compromise.

268	Misdeclaration or	Summary cancellation or		This violation cannot be compromised
	misrepresentation by	withdrawal of permit to engage		because it involves fraud. (Sec. 204, NIRC)
	manufacturers of articles	in business as a manufacturer of
	subject to excise tax under	articles subject to excise tax
	Title IV, NIRC, or any
	pertinent data or
	information required
	therein

272	Failure of government	Fine of not less than P5,000 not		If the amount of tax not withheld
	officer or employee	more than P50,000 or				or remitted —
	charged with the duty to	imprisonment of not less than 6		Exceed		But Does	Compromise
	deduct and withhold any	months and 1 day but not more				Not Exceed	is
	internal revenue tax and	than 2 years, or both		Pxxx		P5,000	P1,000
	failure to remit the same in				5,000		15,000	3,000
	accordance with the				15,000		20,000	5,000
	provisions of the NIRC				20,000		50,000	10,000
						50,000		500,000	15,000
						500,000		1,000,000	20,000
						1,000,000		xxx	25,000

275	Violation of any provision	Fine of not more than P1,000 or		P1,000 for each violation
	of the National Internal	imprisonment of not more than 6
	Revenue Code or any	months or both
	regulation of the
	Department of Finance for
	which no specific penalty is
	provided by law

276	Sale, transfer, encumbrance	Fine of not less than twice the		20% of the value of the property
	or any other disposition of	value of the property sold,
	any property or part	encumbered or disposed of, but
	thereof placed under	not less than P5,000 or
	constructive distraint,	imprisonment of not less than 2
	without the knowledge and	years and 1 day but not more
	consent of the	than 4 years, or both
	Commissioner

277	Failure to surrender	Violator is personally liable to		P50,000
	property placed under	pay a sum equal to the value of
	distraint and levy	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	Fine of not more than P2,000 or		This violation shall not be compromised
	divulgence of any	imprisonment of not less than 6		because it is against public policy to allow
	confidential information	months nor more than 5 years, or		divulgence of confidential information,
	regarding the business,	both			unless this is validly authorized under
	income or inheritance of				existing law.
	any taxpayer; unlawfully
	publishing or printing the
	income, profits, losses or
	expenditures appearing in
	any income tax return

Cite This Law

Standard Citation

The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code, Revenue Memorandum Order No. 007-15, Jan 22, 2015 (Philippines)

Bluebook Style

The Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code, Revenue Memorandum Order No. 007-15 (Phil. 2015)

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