Tax Alert No. 42 [Revenue Regulation (RR) No. 13-2021 dated 23 June 2021]
21 Jul 2021
Implementing the Penalty Provisions under Sections 76, 77, 78, 79 and 80 of Republic Act No. 10963, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law, Amending Sections 254 and 264 of, and adding Sections 264-A, 264-B, and 265-A to, the National Internal Revenue Code of 1997, as Amended
The Commissioner of Internal Revenue has issued RR No. 13-2021 to implement the Penalty Provisions under the National Internal Revenue Code (NIRC), as amended by Republic Act No. 10963 or the TRAIN Law.
The following Penalty Provisions are hereby implemented:
| Person liable | Penalty |
| Any person who willfully, attempts, in any manner, to evade or defeat any tax imposed under the NIRC or the payment thereof. | A fine of not less than Five Hundred Thousand Pesos (PHP500,000) but not more than Ten Million Pesos (PHP10m) and imprisonment of not less than six (6) years but not more than ten (10) years, in addition to other penalties provided for by law. |
Any person who commits any of the following acts:
|
A fine of not less than Five Hundred Thousand Pesos (PHP500,000) but not more than Ten Million Pesos (PHP10m) and imprisonment of not less than six (6) years but not more than ten (10) years. |
| Any taxpayer required but fails to transmit sales data to the BIR’s electronic sales reporting system under Section 237-A of the NIRC. | A penalty amounting to one-tenth of one percent (1/10 of 1%) of the annual net income as reflected in the taxpayer's audited financial statements for the second year preceding the current taxable year, or Ten Thousand Pesos (PHP10,000), whichever is higher, for each day of violation. Additional penalty of permanent closure will apply if the aggregate number of days of violation exceed one hundred eighty (180) days within a taxable year, except in cases of force majeure or any causes beyond the control of the taxpayer. |
Any person who shall purchase, use, possess, sell or offer to sell, install, transfer, update, upgrade, keep, or maintain any software or device designed for, or is capable of:
|
A fine of not less than Five Hundred Thousand Pesos (PHP500,000) but not more than Ten Million Pesos (PHP10m), and imprisonment of not less than two (2) years but not more than four (4) years. The maximum penalty provided for in this Section shall apply in case of cumulative suppression of electronic sales records in excess of the amount of Fifty Million Pesos (PHP50m) which shall be considered as economic sabotage. |
| Any person who commits the following offense/s related to fuel marking: | |
| (a) Engaging in the sale, trade, delivery, distribution or transportation of unmarked fuel in commercial quantity held for domestic use or merchandise | First Offense PHP2.5m Second Offense PHP5m Third Offense PHP10m with penalty of revocation of license to engage in any trade or business. |
| (b) Causing the removal of the official fuel marking agent from marked fuel, and the adulteration or dilution of fuel intended for sale to the domestic market, or the knowing possession, storage, transfer or offer for sale of fuel obtained as a result of such removal, adulteration or dilution. | First Offense PHP2.5m Second Offense PHP5m Third Offense PHP10m with penalty of revocation of license to engage in any trade or business. |
| (c) Willfully inserting, placing, adding or attaching, directly or indirectly, through any overt or covert act, whatever quantity of any unmarked fuel, counterfeit additive or chemical in the person, house, effects, inventory, or in the immediate vicinity of an innocent individual for the purpose of implicating, incriminating or imputing the commission of any violation of offenses related to fuel marking. | A fine of Five Million Pesos (PHP5,000,000) but not more than Ten Million Pesos (PHP10m) and imprisonment of not less than four (4) years but not more than eight (8) years. |
| (d) Making, importing, selling, using or possessing fuel markers without express authority. | A fine of One Million Pesos (PHP1m) but not more than Five Million Pesos (PHP5m) and imprisonment of not less than four (4) years but not more than eight (8) years. |
| (e) Making, importing, selling, using or possessing counterfeit fuel markers. | A fine of One Million Pesos (PHP1m) but not more than Five Million Pesos (PHP5m) and imprisonment of not less than four (4) years but not more than eight (8) years. |
| (f) Causing another person or entity to commit any of the two (2) preceding acts in (d) and (e) hereof. | A fine of One Million Pesos (PHP1m) but not more than Five Million Pesos (PHP5m) and imprisonment of not less than four (4) years but not more than eight (8) years. |
| Any person who is authorized, licensed or accredited to conduct tests, who issues false or fraudulent fuel test results knowingly, willfully or through gross negligence. | Imprisonment ranging from one (1) year and one (1) day to two (2) years and six (6) months. The additional penalties of revocation of the license to practice his profession in case of a practitioner and the closure of the fuel testing facility, may also be imposed at the instance of the court. |
The effectivity date of the RR is 1 January 2018.
You may access the full version of the Regulations through the BIR website.
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