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This page features the full text of
Republic Act No. 7642
AN
ACT INCREASING THE PENALTIES FOR TAX EVASION, AMENDING FOR THIS PURPOSE
THE PERTINENT SECTIONS OF THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED.
REPUBLIC
ACT NO. 7642AN
ACT INCREASING THE PENALTIES FOR TAX EVASION, AMENDING FOR THIS PURPOSE
THE PERTINENT SECTIONS OF THE NATIONAL INTERNAL REVENUE CODE, AS
AMENDED.
Section
1. A new paragraph (c) is hereby
added to Section 252 of the National Internal Revenue Code, as amended,
to read as follows:chanroblesvirtualawlibrary
"(c) The
fines to be imposed for any violation of the provisions of this Code
shall
not be lower than the fines imposed herein or twice the amount of
taxes,
interests, and surcharges due from the taxpayer, whichever is higher."
Sec.
2. Section 253 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
253. Attempt to evade or defeat
tax. — Any person who willfully attempts in any manner to evade or
defeat
any tax imposed under this Code or the payment thereof shall, in
addition
to other penalties provided by law, upon conviction thereof, be fined
not
less than Thirty thousand pesos but not more than One hundred thousand
pesos and suffer imprisonment of not less than two years but not more
than
four years."chanrobles virtuallaw libraryred
Sec.
3. The second paragraph of Section
254 of the National Internal Revenue Code, as amended, is hereby
further
amended to read as follows:chanroblesvirtualawlibrary
"Any
person who attempts to make it appear for any reason that he or another
has in fact filed a return or statement, or actually files a return or
statement and subsequently withdraws the same return or statement after
securing the official receiving seal or stamp of receipt of an internal
revenue office wherein the same was actually filed shall, upon
conviction
therefor, be fined not less than Ten thousand pesos but not more than
Twenty
thousand pesos and suffer imprisonment of not less than one year but
not
more than three years."
Sec.
4. Section 255 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
255. Penal liability of corporations.
— Any corporation, association, or general co-partnership liable for
any
of the acts or omissions penalized under this Code, in addition to the
penalties imposed herein upon the responsible corporate officers,
partners,
or employees, shall, upon conviction for each act or omission, be fined
not less than Fifty thousand pesos but not more than One hundred
thousand
pesos."
Sec.
5. Section 256 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
256. Penal liability for making
false entries, records, or reports. — (a) Any independent certified
public
accountant engaged to examine and audit books of accounts of taxpayers
under subparagraph (a) of Section 232 and any person under his
direction
who:chanroblesvirtualawlibrary
"(1) Willfully
falsifies any report or statement bearing on any examination or audit,
or renders a report, including exhibits, statements, schedules, or
other
forms of accountancy work which has not been verified by him personally
or under his supervision or by a member of his firm or by a member of
his
staff in accordance with sound auditing practices; or
chanrobles virtuallaw libraryred"(2) Certifies
financial statements of a business enterprise containing an essential
misstatement
of facts or omission in respect of the transactions, taxable income,
deduction,
and exemption of his client; or "(b) Any
person who:chanroblesvirtualawlibrary"(1) Not
being an independent certified public accountant according to
subparagraph
(B) of Section 232, examines and audits books of accounts of taxpayers;
orchanrobles virtuallaw libraryred
"(2) Offers
to sign and certify financial statements without audit; orchanrobles virtuallaw libraryred"(3) Offers
any taxpayer the use of accounting bookkeeping records for internal
revenue
purposes not in conformity with the requirements prescribed in this
Code
or regulations promulgated thereunder; or
"(4) Knowingly
makes any false entry or enters any false or fictitious name in the
books
of accounts or records mentioned in the preceding paragraph; or
"(5) Keeps
two or more sets of such records or books of accounts; or
"(6) In
any way commits an act or omission, in violation of the provisions of
this
section; or
"(7) Fails
to keep the books of accounts or records mentioned in Section 232 in a
native language, English, or Spanish, or to make a true and complete
translation
as required in Section 234 of this Code, or whose books of accounts or
records kept in a native language, English, or Spanish, and found to be
at material variance with books or records kept by him in another
language,
shall, upon conviction for each act or omission, be punished by a fine
of not less than Thirty thousand pesos but not more than Fifty thousand
pesos and suffer imprisonment of not less than two years but not more
than
six years."chanrobles virtuallaw libraryred
Sec.
6. Section 257 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
257. Unlawful pursuit of business.
— Any person who carries on any business for which a private tax is
imposed
without paying the tax as required by law shall, upon conviction for
each
act or omission, be fined not less than Five thousand pesos but not
more
than Twenty thousand pesos and suffer imprisonment of not less than six
months but not more than two years: Provided, That, in the
case
of a person engaged in the business of distilling, rectifying,
repacking,
compounding, or manufacturing any article subject to excise tax, he
shall,
upon conviction for each act or omission, be fined not less than Thirty
thousand pesos but not more than Fifty thousand pesos and suffer
imprisonment
of not less than two years but not more than four years."
Sec.
7. Section 258 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
258. Illegal collection of foreign
payments. — Any person who knowingly undertakes the collection of
foreign
payments as provided under Section 60 of this Code without having
obtained
a license therefor, or without complying with its implementing
regulations,
shall, upon conviction for each act or omission, be fined not less than
Twenty thousand pesos but not more than Fifty thousand pesos and suffer
imprisonment of not less than one year but not more than two years."
Sec.
8. Section 262 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
262. Unlawful possession or removal
of articles subject to excise tax without payment of the tax. — Any
person
who owns and/or is found in possession of imported articles subject to
excise tax, the tax on which has not been paid in accordance with law,
or any person who owns and/or is found in possession of imported
tax-exempt
articles other than those to whom they are legally issued shall be
punished
by:chanroblesvirtualawlibrary"(1) A
fine of not less than One thousand pesos but not more than Two thousand
pesos and suffer imprisonment of not less than sixty days but not more
than one hundred days if the appraised value, to be determined in the
manner
prescribed in the Tariff and Customs Code, including duties and taxes,
of the articles does not exceed One thousand pesos;chanrobles virtuallaw libraryred
"(2) A
fine of not less than Ten thousand pesos but not more than Twenty
thousand
pesos and suffer imprisonment of not less than two years but not more
than
four years in the appraised value, to be determined in the manner
prescribed
in the Tariff and Customs Code, including duties and taxes, of the
articles
exceed One thousand pesos but does not exceed Fifty thousand
pesos; chanrobles virtuallaw libraryred"(3) A
fine of not less than Thirty thousand pesos but not more than Sixty
thousand
pesos and suffer imprisonment of not less than four years but not more
than six years if the appraised value, to be determined in the manner
prescribed
in the Tariff and Customs Code, including the duties and taxes, of the
articles is more than Fifty thousand pesos but does not exceed One
hundred
fifty thousand pesos; or
"(4) A
fine of not less than Fifty thousand pesos but not more than One
hundred
thousand pesos and suffer imprisonment of not less than ten years but
not
more than twelve years if the appraised value, to be determined in the
manner prescribed in the Tariff and Customs Code, including duties and
taxes, of the articles exceed One hundred fifty thousand pesos.
"Any
person who is found in possession of locally manufactured article
subject
to excise tax, the tax on which has not been paid in accordance with
law,
or any person who is found in possession of such articles which are
exempt
from excise tax other than those to whom the same is lawfully issued
shall
be punished with a fine of not less than ten times the amount of excise
tax due on the articles found but less than Five hundred pesos and
suffer
imprisonment of not less than two years but not more than four years.chanrobles virtuallaw libraryred
"Any
manufacturer, owner, or person in charge of any article subject to
excise
tax who removes or allows or causes the unlawful removal of any such
articles
from the place of production or bonded warehouse, upon which the
articles
subject to excise tax has not been paid at the time in manner required,
and any person who knowingly aids or abets in the removal of such
articles
as aforesaid, or conceals the same after illegal removal shall, for the
first offense, be punished with a fine of not less than ten times the
amount
of excise tax due on the articles but not less than one year. but not
more
than two years."The
mere unexplained possession of articles subject to excise tax, the tax
on which has not been paid in accordance with law, shall be punished
under
this section."
Sec.
9. Paragraph (a) Section 263
of the National Internal Revenue Code, as amended, is hereby further
amended
to read as follows:chanroblesvirtualawlibrary
"(a) Any
person who, being required under Section 238 to issue receipts or sales
or commercial invoices, fails or refuses to issue such receipts or
invoices,
issues receipts or invoices that do not truly reflect and/or contain
all
the information required to be shown therein or uses multiple or double
receipts or invoices shall, upon conviction for each act or omission,
be
fined not less than One thousand pesos, but not more than Fifty
thousand
pesos and suffer imprisonment of not less than two years but not more
than
four years."chanrobles virtuallaw libraryred
Sec.
10. Section 264 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
264. Offenses relating to stamps.
— Any person who commits any of the acts enumerated hereunder shall,
upon
conviction thereof, be fined not less than Twenty thousand pesos but
not
more than Fifty thousand pesos and suffer imprisonment of not less than
four years but not more than eight years:chanroblesvirtualawlibrary
"(1) Makes,
imports, sells, or uses, or possesses without express authority from
the
Commissioner any die for printing or making stamps, labels, tags, or
playing
cards;chanrobles virtuallaw libraryred"(2) Erases
the cancellation marks of any stamp previously used or alters the
written
figures or letters or cancellation marks on internal revenue stamps;
"(3) Possesses
false, counterfeit, restored, or altered stamps, labels, or tags or
causes
the commission of any such offense by another;
"(4) Sells
or offers for sale any box or package containing articles subject to
excise
tax with false, spurious, or counterfeit stamps or labels or sells from
any such fraudulent box, package, or container as aforesaid; or
"(5) Gives
away or accepts from another or sells, buys, or uses containers on
which
the stamps are not completely destroyed."
Sec.
11. Section 265 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
265. Failure to obey summons.
— Any person who, being duly summoned to appear to testify, or to
appear
and produce books of accounts, records, memoranda, or other papers, or
to furnish information as required under the pertinent provisions of
this
Code, neglects to appear or to produce such books of accounts, records,
memoranda, or other papers, or to furnish such information, shall, upon
conviction, be fined not less than Five thousand pesos but not more
than
Ten thousand pesos and suffer imprisonment of not less than one year
but
not more than two years."
Sec.
12. Section 268 of the National
Internal Revenue Code, as amended, is hereby further amended to read as
follows:chanroblesvirtualawlibrary
"Sec.
268. Violations committed by
government enforcement officers. — Every official, agent, or employee
of
the Bureau of Internal Revenue or any other agency of the Government
charged
with the enforcement of the provisions of this Code who is guilty of
any
of the offenses hereinbelow specified shall, upon conviction for each
act
or omission, be fined not less than Fifty thousand pesos but not more
than
One hundred thousand pesos and suffer imprisonment of not less than ten
years but not more than fifteen years and shall likewise suffer an
additional
penalty of perpetual disqualification to hold public office, to vote,
and
to participate in any public election:chanroblesvirtualawlibrary"(1) Those
guilty of extortion or willful oppression through the use of his office;chanrobles virtuallaw libraryred"(2) Those
who knowingly demand other or greater sums than are authorized by law
or
receive any fees, compensation, or reward, except as by law prescribed,
for the performance of any duty;
"(3) Those
who willfully neglect to give receipts, as by law required, for any
sums
collected in the performance of duty or who willfully neglect to
perform
any other duties enjoined by law;
"(4) Those
who conspire or collude with another or others to defraud the revenues
or otherwise violate the provisions of this Code;
"(5) Those
who by neglect or design permit the violation of the law by any other
person;
"(6) Those
who make or sign any false entry or entities in any books, or make or
sign
any false certificate or return;chanrobles virtuallaw libraryred
"(7) Those
who allow or conspire or collude with another to allow the unauthorized
retrieval, withdrawal, or recall of any return, statement, or
declaration
after the same has been officially received by the Bureau of Internal
Revenue;
"(8) Those
who, having knowledge or information of a violation of this Code or of
any fraud committed on the revenues collectible by the Bureau of
Internal
Revenue, fail to report such knowledge or information to their superior
officer or to report as otherwise required by law; and
"(9) Those
who, without the authority of law, demand or accept or attempt to
collect,
directly or indirectly, as payment or otherwise any sum of money or
other
thing of value for the compromise, adjustment, or settlement of any
charge
or complaint for any violation or alleged violation of this Code."
Sec.
13. There is hereby created the
Congressional Oversight Committee composed of the Chairmen of the
Committees
on Ways and Means of both Houses of Congress as Co-Chairman and three
other
members each from said committees.The
Oversight Committee shall convene within two years after the approval
of
this Act to review its implementation and recommend amendments thereto.
chanrobles virtuallaw libraryred
Sec.
14. The Secretary of Finance
shall, upon the recommendation of the Commissioner of Internal Revenue,
promulgate the necessary rules and regulations for the effective
implementation
of this Act.chanrobles virtuallaw libraryred
Sec.
15. All laws, decrees, orders,
rules and regulations, and other issuances inconsistent with the
provisions
of this Act are hereby repealed or amended accordingly.
Sec.
16. This Act shall take effect
upon its approval.
Approved:
December 28, 1992
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