RMC No. 51-2009: Clarifies the Requirement for the Submission of Summary Lists of Sales (SLS)/Summary Lists of Purchases (SLP); the imposition of penalties for their non-submission; the issuance of Subpoena Duces Tecum; and the imposition of penalties for failure to obey summons

Summary

RMC No. 51-2009 clarifies the submission of Summary Lists of Sales (SLS) and Summary Lists of Purchases (SLP), the penalties for not submitting them, the issuance of Subpoena Duces Tecum (SDT), and penalties for failure to obey summons.

Key points

1. Who submits and when. VAT-registered persons with quarterly sales or receipts (net of VAT) above P 2,500,000.00 submit SLS, and those with quarterly purchases (net of VAT) above P 1,000,000.00 submit SLP. Submission is to the RDO, LTDO or LTAID having jurisdiction, on or before the 25th day of the month after the close of the taxable quarter.
2. Administrative penalty. Failure to submit carries P 1,000.00 for each failure, with a yearly aggregate not above P 25,000.00 under Section 250 of the NIRC. Erroneous, incomplete or falsified information, and late submission, count as non-submission, and non-submission is also criminally punishable under Section 255.
3. Subpoena Duces Tecum. Each failure after due notice is ground for an SDT, and paying the administrative penalty does not cancel it. On submission under the SDT, a compromise penalty of P 10,000.00 per non-submission applies under RMO No. 12-2009, and it may apply to periods before that RMO because the submission is still unmet.
4. Criminal action. If the taxpayer still fails to submit despite the SDT, the RDO, LTDO Head or LTAID Chief recommends criminal action under Sec. 255 and Sec. 266 (Failure to Obey Summons), plus Sec. 256 for corporations, associations and general co-partnerships. The report goes to the Regional Director (Chief, Legal Division) or the ACIR, Legal Service (Chief, Prosecution Division).
5. Two-notice requirement. Under RR No. 8-2002 as incorporated in RR No. 16-2005, the first notice states the failure and the P 1,000.00 to P 25,000.00 penalty and is the first offense. The second notice warns that further non-compliance is the second offense and an SDT will issue. RMO No. 12-2009 does not repeal this.
6. Who signs the SDT. Signing may be delegated at the National Office to the ACIR, Legal Service, the HREA of Legal Service or Large Taxpayers Service, or an LTAID Chief or LTDO Head specially authorized in writing by the Commissioner. In the regions, it may be the Regional Director or Assistant Regional Director, the Chief of the Legal Division, or an RDO authorized through a Regional Delegation Order.

Who is affected

• VAT-registered persons with quarterly sales above P 2,500,000.00 or purchases above P 1,000,000.00 (net of VAT)

Deadlines and effectivity

• Issued September 16, 2009
• SLS/SLP due on or before the 25th day after quarter close

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.