Article 79p. 79

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

of Finance, shall constitute prima facie evidence of a false

or fraudulent return: Provided, further, That failure to

report sales, receipts or income in an amount exceeding

thirty percent (30%) of that declared per return, and a

claim of deductions in an amount exceeding (30%) of

actual deductions, shall render the taxpayer liable for

substantial under-declaration of sales, receipts or income

or for overstatement of deductions, as mentioned herein.

SEC. 249. Interest. -

(A) In General. - There shall be assessed and collected on

any unpaid amount of tax, interest at the rate of double

the legal interest rate for loans or forbearance of any

money in the absence of an express stipulation as set by

the Bangko Sentral ng Pilipinas from the date prescribed

for payment until the amount is fully paid: Provided, That

in no case shall the deficiency and the delinquency

interest prescribed under Subsections (B) and (C) hereof,

be imposed simultaneously. (as amended by RA No

10963)

(B) Deficiency Interest. - Any deficiency in the tax due,

as the term is defined in this Code, shall be subject to the

interest

prescribed

in

Subsection

(A)

hereof,

which

interest shall be assessed and collected from the date

prescribed for its payment until the full payment thereof,

or

upon

issuance

of a notice and demand by the

Commissioner of Internal Revenue, whichever comes

earlier. (as amended by RA No 10963)

(C) Delinquency Interest. - In case of failure to pay:

(1)

The amount of the tax due on any return to be

filed, or

(2) The amount of the tax due for which no return is

required, or

(3)

A deficiency tax, or any surcharge or interest

thereon on the due date appearing in the notice and

demand

of

the

Commissioner,

there

shall

be

assessed

and collected on the unpaid amount,

interest at the rate prescribed in Subsection (A)

hereof until the amount is fully paid, which interest

shall form part of the tax. 2

(D) Interest on Extended Payment. - If any person

required to pay the tax is qualified and elects to pay the

tax on installment under the provisions of this Code, but

fails to pay the tax or any installment hereof, or any part of

such

amount

or installment on or before the date

prescribed for its payment, or where the Commissioner

has authorized an extension of time within which to pay a

tax or a deficiency tax or any part thereof, there shall be

assessed and collected interest at the rate hereinabove

prescribed on the tax or deficiency tax or any part thereof

unpaid from the date of notice and demand until it is

paid.

SEC. 250. Failure to File Certain Information Returns. -

In the case of each failure to file an information return,

statement or list, or keep any record, or supply any

information

required

by

this

Code

or

by

the

Commissioner on the date prescribed therefor, unless it is

shown that such failure is due to reasonable cause and

not

to

willful

neglect, there shall, upon notice and

demand by the Commissioner, be paid by the person

failing to file, keep or supply the same, One thousand

pesos (1,000) for each failure: Provided, however, That the

aggregate amount to be imposed for all such failures

during a calendar year shall not exceed Twenty-five

thousand pesos (P25,000).

SEC. 251. Failure of a Withholding Agent to Collect and

Remit Tax. - Any person required to withhold, account for,

and remit any tax imposed by this Code or who willfully

fails to withhold such tax, or account for and remit such

tax, or aids or abets in any manner to evade any such tax

or

the

payment

thereof,

shall,

in addition to other

penalties provided for under this Chapter, be liable upon

conviction to a penalty equal to the total amount of the

tax not withheld, or not accounted for and remitted.

SEC. 252. Failure of a Withholding Agent to refund

Excess Withholding Tax. - Any employer/withholding

agent who fails or refuses to refund excess withholding

tax shall, in addition to the penalties provided in this Title,

be liable to a penalty to the total amount of refunds

which was not refunded to the employee resulting from

any excess of the amount withheld over the tax actually

due on their return.

CHAPTER II CRIMES, OTHER OFFENSES AND

FORFEITURES

SEC. 253. General Provisions. -

(a)

Any person convicted of a crime penalized by this

Code shall, in addition to being liable for the payment of

the tax, be subject to the penalties imposed herein:

Provided, That payment of the tax due after apprehension

shall not constitute a valid defense in any prosecution for

violation of any provision of this Code or in any action for

the forfeiture of untaxed articles.

(b)

Any person who willfully aids or abets in the

commission of a crime penalized herein or who causes

the commission of any such offense by another shall be

liable in the same manner as the principal.

(c)

If the offender is not a citizen of the Philippines, he

shall be deported immediately after serving the sentence

without further proceedings for deportation. If he is a

public

officer

or

employee,

the

maximum

penalty

prescribed for the offense shall be imposed and, in

addition, he shall be dismissed from the public service

and perpetually disqualified from holding any public

office, to vote and to participate in any election. If the

offender is a Certified Public Accountant, his certificate as

a Certified Public Accountant shall, upon conviction, be

automatically revoked or cancelled.

(d)

In

the

case

of

associations,

partnerships

or

corporations,

the

penalty

shall

be

imposed

on

the

partner, president, general manager, branch manager,

treasurer,

officer-in-charge,

and

the

employees

responsible for the violation.

(e)

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, interest and

surcharges due from the taxpayer, whichever is higher.

SEC. 254. 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 punished with a fine of not less

than Five hundred thousand pesos (P500,000) but not

more

than

Ten

million

pesos

(P10,000,000),

and

imprisonment of not less than six (6) years but not more

than ten (10) years: Provided, That the conviction or

acquittal obtained under this Section shall not be a bar to

the filing of a civil suit for the collection of taxes. (as

amended by RA No 10963)

SEC. 255. Failure to File Return, Supply Correct and

Accurate Information, Pay Tax Withhold and Remit Tax

and Refund Excess Taxes Withheld on Compensation. -

Any person required under this Code or by rules and

regulations promulgated thereunder to pay any tax make

a return, keep any record, or supply correct the accurate

information, who willfully fails to pay such tax, make such

return, keep such record, or supply correct and accurate

information, or withhold or remit taxes withheld, or

refund excess taxes withheld on compensation, at the

time or times required by law or rules and regulations

shall, in addition to other penalties provided by law, upon

conviction thereof, be punished by a fine of not less than

Ten thousand pesos (P10,000) and suffer imprisonment of

not less than one (1) year but not more than ten (10) years.

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 internal revenue office wherein the same was

© Compiled by RGL

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