RMO No. 12-2009: Enjoins the strict implementation of the penalty provisions for non-submission of Quarterly Summary Lists of Sales and Purchases

Summary

RMO No. 12-2009 enjoins strict implementation of the penalty provisions for failure to submit Quarterly Summary Lists of Sales and Purchases.

Key points

1. Subpoena Duces Tecum. Failing to submit the required Summary List of Sales and/or Purchases in the prescribed format, or submitting erroneous, incomplete, or falsified information, is a ground for the BIR office to issue a Subpoena Duces Tecum requiring immediate submission.
2. Compromise penalty. Upon submitting the lists in compliance with the Subpoena Duces Tecum, the taxpayer also pays a compromise penalty of P 10,000 for each non-submission.
3. Continued non-submission. Continued failure to submit despite a duly-issued Subpoena Duces Tecum is treated as failure to supply correct and accurate information under Section 255 of the NIRC. Upon conviction, the penalty is a fine of not less than P 10,000 and imprisonment of not less than one (1) year but not more than ten (10) years. The Revenue District Officer starts the administrative and judicial action.
4. Other Section 255 offense. A person who makes it appear that a return was filed, or files a return and then withdraws it after securing the official receiving stamp, faces a fine of not less than P 10,000 but not more than P 20,000 and imprisonment of not less than one (1) year but not more than three (3) years.
5. Corporations. For corporations, the corporate officers and employees are held criminally liable. The penalty is a fine of not less than P 50,000 but not more than P 100,000 for each act or omission, in addition to other penalties, under Section 256 of the NIRC.

Who is affected

• Taxpayers required to submit Quarterly Summary Lists of Sales and Purchases
• Corporate officers and employees of corporations that fail to submit

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