RR No. 13-2021 — Implements the penalty provisions under Sections 76, 77, 78, 79 and 80 of RA No. 10963 (TRAIN Law), amending Sections 254 and 264 of, and adding Sections 264-A, 264-B and 265-A to, the NIRC of 1997, as amended (Published in Malaya Business Insight on June 24, 2021) Digest | Full Text

@ffi REPUBLIC OF THE PHILIPPINES ., rl-cr.rt0S MGT. DIVISION DEPARTMENT OF FINANCE JUN ? 3 ?A?I BUREAU 06 J|HHU# REVENUE REVEI{UE REGULATIONS NO. 17- E,O?,\ SUBJECT Implementing the Penalty Provisions tlnder Sections 76, 77., 78, 79 TO and 80 of Republic Act No. 10963, also known as the Tax Relbrm for Acceleration and Inclusion (TRAIN) Law, Amending Sections 254 and 264 of, and adding Sections 264-A, 264-ts, and 265-4 to, the National Internal Revenue Code of 1997 , as Amended : All Internal Revenue Officials and Others Concerned SECTION 1. SCOPE. - Pursuant to the provisions of Sections 244 and 245 of the National Internal Revenue Code of 1997, as anrended (NIRC), these Regulations are hereby promulgated to implement Sections J6,'77,78,79 and 80 of'Republic Act (RA) No. 1 0963, otherwise known as the TRAIN Law. SECTION 2. ATTEMPT TO EVADE OR DEFEAT TAX. - A fine of not less than Five Hundred Thousand Pesos (P500,000) but not more than Ten l,{illion Pesos (P10,000,000) and imprisonment of not less than six (6) years but not more than ten (10) years shall, upon conviction thereof, be imposed on any person who willfulll, attempts, irr any manner, to evade or defeat any tax imposed under the NIRC or the payment thereof-. The flne and penalty stated herein shall be in addition to other penalties providerl fbr by law. The conviction or acquittal obtained fbr violation olthis Section shall not be abar to the liling ola civil suit fbr the collection of taxes. SECTIOI\ 3. VIOLATIONTS RELATED TO THE PRI]\TING OF RECEIPTS OR INVOICES. - A fine of not less thern Five l{undred Thousand P'esos (P500,000) but not more than Ten Million Pesos (P10,000,000) and imprisonment ol not less than six (6) years but not more than ten ( 10) years shall be irnposed on arly person who commits any olthe acts enumerated hereunder: (1) Printing of receipts or sales or commercial invoices without ar-rthority fiom the Bureau o{'lnternal Revenue: or (2) Printing of double or multiple sets of invoices or receipts; or (3) Printing of unnumbered receipts or sales or commercial invoices, rlot bearing the name, business style, Taxpayer Identification Number, and business address of the person or entity; or tr Printing of other fiaudulent receipts or sales or commercial invoices.

SECTION 4. FAILURE TO TRAI\SMIT SALES DATA. - A penalty amounting to one-tenth ol'one percent (1110 of 1o/o) olthe annual ne't income as reflected in the taxpayer's audited flnancial statements for the second year preceding the cument taxable year,or Ten thousand pesos (I'}10.000), whichever is higher, shail be imposed. fbr each day of violation, ofl any taxpayer required but fails to transmit sales data to the Bureau's electronic sales reporting system under Section 237 -A of the NI RC, as amended. An additional penalty of permanent closure of the taxpayer shall be imposed should the aggregate number of days of violation exceed one hundred eighty ( 1 80) days within a taxable year. The penalty shall not apply if the failure to transmit is due to force maieure or any causes beyond the control of the taxpat/er. SECTION 5. PURCHASE, USE, POSSESSION, SALE OR OFFER TO SELL, INSTALLATION, TRANSFER, UPDATE, T]PGRADE. KEE,PING OR MAINTAINING OF SALES SUPPRESSION DEVICES. - A fiNE Of NOt ICSS thAIT Five hundred thousand pesos (P500.000) but not more tharr Ten million pesos (P10,000,000), and imprisonment of not less than two (2) years but not more than fbur (4) years shall be imposed on any person who shall purchase, Llse. possess, sell or offer to sell, install, transfer. update, upgrade, keep, or maintain any software or device desiSlned for, or is capable of: (a) suppressing the creation of electronic records of sale transactions that a taxpayer is required to keep under existing tax laws and/or regulations; or (b) modifying, hiding, or deleting electronic records of sales tnansactions and providing a ready means of access to them. The maximum penalty provided for in this Section shall apply in case of cumulative suppression of electronic sales record in excess of the amount of,Fifty million pesos (P50,000,000) which shall be considered as economic sabotage. SECTION 6. OFFENSES RELATED TO FUEL MAR.KING. - The following penalties shall, upon conviction, apply to any person who commits off,ense/s related to fuel marking: Offenses / Violations Penalty First Ofl'ense P 2.500.000 (a) Engaging in the sale, trade. delivery, Second Of{'ense P 5,000,000 distribution or transportation of Third Otfense P 10.000.000 unmarked fuel in commercial quantity *Third OfTense is with penalfi of held for domestic use or merchandise, revocation of license to enqage itt an1' trade or business. (b) Causing the removal o1'the offlcial fuel First Of{bnse P 2,500,000 Second Offbnse P 5,000,000 marking agent from marked fuel, and the BUR EAU OF INTERNAL REVE NUE R D

adulteration or dilution of luel intended 'fhird Offbnse P 10.,000,CI00 for sale to the domestic market, or the *Third Offense is with penalty of knowing possession, storage, transfer or offer for sale of fuel obtained as a result revocation ol license to engage in any trade of such removal, adulteration or dilution. or business. (c) Willfblly inserling, placing., adding or A frne of P5Million but not more than PlOMillion and imprisonment of not attaching, directly or indirectly, through less than lour (4) years but not more any ovefi or coveft act, whatever than eight (8) years. quantity of any unmarked fuel, counterfeit additive or chemical in the person, house, e{Ibcts, inventory, or in the immediate vicinity o1- an innocent individual lor the purpose of implicating, incriminating or imputing the commission of any violation of offenses related to fuel marking. (d) Making, importing, selling, using or A fine of P l Million but not more than possessing fuel markers without express P5Million and imprisonment of not authority less than four (4) years but not more (e) Making, imporling, selling, using or than eight (8) years possessing counterfeit fuel markers A fine of PlMillion but not more thair (0 Causing another person or entity to P5Million and imprisonment of not commit any of the two (2) preceding acts in (d) and (e) hereof less than fbur (4) years but not rnore than eight (8) years A f ine of P lMillion but not more than P5Million and imprisonment of not less than fbur (4) years' but not more than eight (8) years (g) Causing the sale, distribution, supply or transporl of legitimately intporled, in- transit, manufactured or procured controlled precursors and essential chemicals. in diluted, mixtures or in P l Million but not more than concentrated fbrm, to any person or P5Million and imprisonment of not entity penalized in (a), (b), (d), (e) and less than four (4) years but not more (f) hereof, including but not lirnited to, than eight (8) years packaging, repackaging, labeling, relabeling or concealment of such transaction through fraud, destruction of documents, fraudulent use of permits, misdeclaration, use ol- front companies or mail fiaud. *-T t] { r{ t,Hldffizl Jl _r\u" !l \r7 )-, 1J"\ v -i a')r( i-)S t.r fiT. DIVIS ON

Any person who is authorir.ed" licensed or accredited 1o condur:l Iil"-l tcsls. rvho issues false or fraudulent fuel test results knowingly, willlull-v or througlr gross negligence, shall suffer the additional penalty of imprisonment ranging fiom one (l ) 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 o1'the court. The penalties stated herein for offenses related to fuel marking are in addition tcr the penalties imposed under Title X of the NIRC, as amended, Section 1401 of Reptrblir: Act (RA) No. 10863,, otherwise known as the "Crrstonts Modernization and Tari[/'Act GMTA)", and other relevant laws. SECTION 7. REPEALING CLAUSE. - Any rules and regulations, issuances or parts thereof inconsistent with the provisions of these Regulations are hereby repealed, amended or modified accordingly. SECTION 8. SEPARABILITY CLAUSE. If any provisions of thest: Regulations shall be held unconstitutional or invalid, the other provisions trot otherwisr: affected shall remain in full force and effect. SECTIOI\ g. EFFECTMTY. - These Regulations shall take efl'ecl on January 7,2A18, the effectivity of the TRAIN Law. Recomrnending Approval : CARLOS G. DOMINGLEZ lII CAESAR R. DULAY Secrelar"v of Finance JUr{ 1 6 2021 o Commissioner of Internal Reventte 8UR EAU OF INTE RNAL REVE NUE Q fr.z8 *n p m $fdf,*,,t K/rsv ',Ct'2t1 l^