Article 84p. 84

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

CHAPTER IV OTHER PENAL PROVISIONS

SEC. 274. Penalty for Second and Subsequent Offenses.

- In the case of reincidence, the maximum of the penalty

prescribed for the offense shall be imposed.

SEC. 275. Violation of Other Provisions of this Code or

Rules and Regulations in General. - Any person who

violates

any

provision

of

this

Code

or

any

rule

or

regulation promulgated by the Department of Finance,

for which no specific penalty is provided by law, shall,

upon conviction for each act or omission, be punished by

a fine of not more than One thousand pesos (P1,000) or

suffer imprisonment of not more than six (6) months, or

both.

SEC.

276.

Penalty

for

Selling,

Transferring,

Encumbering or in any way Disposing of Property

Placed under Constructive Distraint. - Any taxpayer,

whose property has been placed under constructive

distraint, who sells, transfers, encumbers or in any way

disposes of said property, or any part thereof, without the

knowledge and consent of the Commissioner, shall, upon

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

of not less than twice the value of the property so sold,

encumbered

or

disposed of but not less than Five

Thousand pesos (P5,000), or suffer imprisonment of not

less than two (2) years and one (1) day but not more than

four (4) years, of both.

SEC. 277. Failure to Surrender Property Placed under

Distraint and Levy. - Any person having in his possession

or under his control any property or rights to property,

upon which a warrant of constructive distraint, or actual

distraint and levy has been issued shall, upon demand by

the Commissioner or any of his deputies executing such

warrant, surrender such property or right to property to

the Commissioner or any of his deputies, unless such

property or right is, at the time of such demand, subject

to an attachment or execution under any judicial process.

Any person who fails or refuses to surrender any of such

property or right shall be liable in his own person and

estate to the Government in a sum equal to the value of

the

property

or

rights

not

so surrendered but not

exceeding the amount of the taxes (including penalties

and interest) for the collection of which such warrant had

been issued, together with cost and interest if any, from

the date of such warrant. In addition, such person shall,

upon conviction for each act or omission, be punished by

a fine of not less than Five thousand pesos (P5,000), or

suffer imprisonment of not less than six (6) months and

one (1) day but not more than two (2) years, or both.

SEC. 278. Procuring Unlawful Divulgence of Trade

Secrets. - Any person who causes or procures an officer

or employee of the Bureau of Internal Revenue to divulge

any

confidential

information regarding the business,

income or inheritance of any taxpayer, knowledge of

which was acquired by him in the discharge of his official

duties, and which it is unlawful for him to reveal, and any

person who publishes or prints in any manner whatever,

not

provided

by

law,

any

income,

profit,

loss

or

expenditure appearing in any income tax return, shall be

punished by a fine of not more than Two thousand pesos

(P2,000), or suffer imprisonment of not less than six (6)

months nor more than five (5) years, or both.

SEC. 279. Confiscation and Forfeiture of the Proceeds

or Instruments of Crime. - In addition to the penalty

Imposed for the violation of the provisions of Title X of this

Code, the same shall carry with it the confiscation and

forfeiture in favor of the government of the proceeds of

the crime or value of the goods, and the instruments or

tools with which the crime was committed: Provided,

however, That if in the course of the proceedings, it is

established that the instruments or tools used in the illicit

act

belong

to

a

third

person,

the

same

shall

be

confiscated and forfeited after due notice and hearing in

a separate proceeding in favor of the Government if such

third person leased, let, chartered or otherwise entrusted

the same to the offender: Provided, further, That in case

the

lessee

subleased,

or the borrower, charterer, or

trustee allowed the use of the instruments or tools to the

offender, such instruments or tools shall, likewise, be

confiscated and forfeited: Provided, finally, That property

of common carriers shall not be subject to forfeiture

when used in the transaction of their business as such

common carrier, unless the owner or operator of said

common carrier was, at the time of the illegal act, a

consenting party or privy thereto, without prejudice to

the owner's right of recovery against the offender in a civil

or criminal action. Articles which are not subject of lawful

commerce shall be destroyed.

SEC. 280. Subsidiary Penalty. - If the person convicted

for violation of any of the provisions of this Code has no

property with which to meet the fine imposed upon him

by the court, or is unable to pay such fine, he shall be

subject to a subsidiary personal liability at the rate of one

(1) day for each Eight pesos and fifty centavos (P8.50)

subject to the rules established in Article 39 of the

Revised Penal Code.

SEC. 281. Prescription for Violations of any Provision of

this Code. - All violations of any provision of this Code

shall prescribe after Five (5) years.

Prescription shall begin to run from the day of the

commission of the violation of the law, and if the same be

not known at the time, from the discovery thereof and

the institution of judicial proceedings for its investigation

and punishment.

The prescription shall be interrupted when proceedings

are instituted against the guilty persons and shall begin

to run again if the proceedings are dismissed for reasons

not constituting jeopardy.

The term of prescription shall not run when the offender

is absent from the Philippines.

SEC. 282. Informer's Reward to Persons Instrumental in

the Discovery of Violations of the National Internal

Revenue Code and in the Discovery and Seizure of

Smuggled Goods. -

(A) For Violations of the National Internal Revenue Code.-

Any

person,

except

an

internal

revenue

official

or

employee, or other public official or employee, or his

relative within the sixth degree of consanguinity, who

voluntarily gives definite and sworn information, not yet

in the possession of the Bureau of Internal Revenue,

leading to the discovery of frauds upon the internal

revenue laws or violations of any of the provisions thereof,

thereby resulting in the recovery of revenues, surcharges

and fees and/or the conviction of the guilty party and/or

the imposition of any of the fine or penalty, shall be

rewarded in a sum equivalent to ten percent (10%) of the

revenues, surcharges or fees recovered and/or fine or

penalty imposed and collected or One Million Pesos

(P1,000,000) per case, whichever is lower. The same

amount of reward shall also be given to an informer

where

the

offender has offered to compromise the

violation of law committed by him and his offer has been

accepted by the Commissioner and collected from the

offender: Provided, That should no revenue, surcharges or

fees be actually recovered or collected, such person shall

not be entitled to a reward: Provided, further, That the

information mentioned herein shall not refer to a case

already pending or previously investigated or examined

by the Commissioner or any of his deputies, agents or

examiners, or the Secretary of Finance or any of his

deputies or agents: Provided, finally, That the reward

provided herein shall be paid under rules and regulations

issued

by

the

Secretary

of

Finance,

upon

recommendation of the Commissioner.

(B) For Discovery and Seizure of Smuggled Goods.To

encourage

the

public

to

extend full cooperation in

eradicating smuggling, a cash reward equivalent to ten

percent (10%) of the fair market value of the smuggled

and confiscated goods or One Million Pesos (P1,000,000)

per case, whichever is lower, shall be given to persons

instrumental

in

the

discovery

and

seizure

of

such

smuggled goods.

© Compiled by RGL

84 of 201