Article 81p. 81

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

imitation of any existing or otherwise known product

name or brand or causes such act to be done, shall, upon

conviction for each act or omission, be punished by a fine

of not less than Twenty thousand pesos (P20,000) but not

more than One hundred thousand pesos (P100,000) and

suffer imprisonment of not less than six (6) years and one

(1) day but not more than twelve (12) years.

SEC. 263. Unlawful Possession or Removal of Articles

Subject to Excise Tax without Payment of the Tax. - Any

person

who

owns

and/or is found in possession of

imported articles subject to excise tax, the tax on which

has not been paid in accordance with law, or any person

who owns and/or is found in possession of imported

tax-exempt articles other than those to whom they are

legally issued shall be punished by:

(a)

A fine of not less than One thousand pesos

(P1,000) nor more than Two thousand pesos (P2,000)

and suffer imprisonment of not less than sixty (60)

days but not more than one hundred (100) days, if

the

appraised

value,

to

be

determined

in

the

manner prescribed in the Tariff and Customs Code,

including duties and taxes, of the articles does not

exceed One thousand pesos (P1,000).

(b)

A fine of not less than Ten thousand pesos

(P10,000) but not more than Twenty thousand pesos

(P20,000) and suffer imprisonment of not less than

two (2) years but not more than four (4) years, if the

appraised value, to be determined in the manner

prescribed in the Tariff and Customs Code, including

duties

and

taxes,

of

the

articles

exceeds

One

thousand pesos (P1,000) but does not exceed Fifty

thousand pesos (P50,000);

(c)

A fine of not less than Thirty thousand pesos

(P30,000) but not more than Sixty thousand pesos

(P60,000) and suffer imprisonment of not less than

four (4) years but not more than six (6) years, if the

appraised value, to be determined in the manner

prescribed in the Tariff and Customs Code, including

duties and taxes of the articles is more than Fifty

thousand pesos (P50,000) but does not exceed One

hundred fifty thousand pesos (P150,000); or

(d)

A fine of not less than Fifty thousand pesos

(P50,000) but not more than One hundred thousand

pesos (P100, 000) and suffer imprisonment of not

less than ten (10) years but not more than twelve (12)

years, if the appraised value, to be determined in the

manner prescribed in the Tariff and Customs Code,

including duties and taxes, of the articles exceeds

One hundred fifty thousand pesos (P150,000).

Any

person

who

is

found

in

possession

of

locally

manufactured articles subject to excise tax, the tax on

which has not been paid in accordance with law, or any

person who is found in possession of such articles which

are exempt from excise tax other than those to whom the

same is lawfully issued shall be punished with a fine of

not less than (10) times the amount of excise tax due on

the articles found but not less than Five hundred pesos

(P500) and suffer imprisonment of not less than two (2)

years but not more than four (4) years.

Any manufacturer, owner or person in charge of any

article subject to excise tax who removes or allows or

causes the unlawful removal of any such articles from the

place of production or bonded warehouse, upon which

the excise tax has not been paid at the time and in the

manner required, and any person who knowingly aids or

abets in the removal of such articles as aforesaid, or

conceals the same after illegal removal shall, for the first

offense, be punished with a fine of not less than ten (10)

times the amount of excise tax due on the articles but not

less

than

One

thousand

pesos

(P1,000)

and

suffer

imprisonment of not less than one (1) year but not more

than two (2) years.

The mere unexplained possession of articles subject to

excise tax, the tax on which has not been paid in

accordance with law, shall be punishable under this

Section.

Sec. 264. Failure or refusal to Issue Receipts or Sales or

Commercial Invoices, Violations related to the Printing

of such Receipts or Invoices and Other Violations. -

(a) Any person who, being required under Section 237 to

issue receipts or sales or commercial invoices, fails or

refuses to issue such receipts of invoices, issues receipts

or invoices that do not truly reflect and/or contain all the

information

required

to

be

shown

therein,

or

uses

multiple

or

double

receipts

or

invoices, shall, upon

conviction for each act or omission, be punished by a fine

of not less than One thousand pesos (P1,000) but not

more than Fifty thousand pesos (P50,000) and suffer

imprisonment of not less than two (2) years but not more

than four (4) years.

(b) Any person who commits any of the acts enumerated

hereunder shall be penalized 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: (as amended by RA No 10963)

(1)

Printing of receipts or sales or commercial

invoices

without

authority

from

the

Bureau

of

Internal Revenue; or

(2) Printing of double or multiple sets of invoices or

receipts;

(3)

Printing of unnumbered receipts or sales or

commercial

invoices,

not

bearing

the

name,

business style, Taxpayer Identification Number, and

business address of the person or entity; or

(4) Printing of other fraudulent receipts or sales or

commercial invoices (as amended by RA No 10963)

SEC. 264-A. Failure to Transmit Sales Data Entered on

Cash Register Machine (CRM)/Point of Sales System

(POS) Machines to the BIR's Electronic Sales Reporting

System. — Any taxpayer required to transmit sales data

to the Bureau's electronic sales reporting system but fails

to do so, shall pay, for each day of violation, 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 statement for the second year preceding the

current taxable year for each day of violation or Ten

thousand pesos (P10,000), whichever is higher; Provided,

That should the aggregate number of days of violation

exceed one hundred eighty (180) days within a taxable

year, an additional penalty of permanent closure of the

taxpayer shall be imposed: Provided, further, That if the

failure to transmit is due to force majeure or any causes

beyond the control of the taxpayer the penalty shall not

apply. (as amended by RA No 10963)

SEC. 264-B. Purchase, Use, Possession, Sale or Offer to

Sell, Installment, Transfer, Update, Upgrade, Keeping

or Maintaining of Sales Suppression Devices. — 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)

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 transactions

and providing a ready means of access to them, shall be

punished

by

a

fine

of not less than Five hundred

thousand pesos (P500,000) but not more than Ten million

pesos (P10,000,000), and suffer imprisonment of not less

than two (2) years but not more than four (4) years:

Provided, That a cumulative suppression of electronic

sales record in excess of the amount of Fifty million pesos

(P50,000,000) shall be considered as economic sabotage

and shall be punished in the maximum penalty provided

for under this provision. (as amended by RA No 10963)

SEC. 265-A. Offenses Relating to Fuel Marking. — All

offenses relating to fuel marking shall, in addition to the

penalties imposed under Title X of the NIRC, as amended,

Section 1401 of Republic Act No. 10863, otherwise known

as the 'Customs Modernization and Tariff Act (CMTA),' and

other relevant laws, be punishable as follows:

© Compiled by RGL

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