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Revenue Memorandum Order No. 01-90 PDF
Revenue Memorandum Order No. 01-90 PDF
I. Objectives:
This Order is issued:
A. To update the Schedule of Compromise Penalties with a view to increase the compromise penalties and delete from
the coverage thereof certain acts commonly resorted to by taxpayers as a means of tax evasion;
B. To re ect the changes in the Schedule which includes the Code Section, Nature of Violation, Criminal Penalty
Imposed and Amount of Compromise Penalty which are prescribed on Chapter II, Title X of the revised NIRC;
C. To adopt and implement a uniform application of the various compromise penalties for criminal violations of the Tax
Code; and casia
D. To provide supplemental guidelines on compromise penalties for resident taxfilers and non-residents as well.
II. Policies:
In order to attain these objectives, the following are hereby prescribed for the information and strict compliance by all
concerned:
1. In all cases of criminal violations of the National Internal Revenue Code (NIRC), the penalties for which are prescribed
in Chapter II, Title X of the revised NIRC, it is directed that henceforth, compromise penalties be governed strictly
in accordance with the attached "Revised Schedule of Compromise Penalties", marked as Annex "A" and made an
integral part hereof.
2. Certain acts/violations which are commonly resorted to by resident taxpayers as a means of tax evasion are deleted
from the coverage thereof because they involve fraud. These violations include, among others the possession,
printing and use of double or multiple sets of invoices.
3. Certain acts/violations which are commonly resorted to and applicable to non-resident taxpayers are imposed the
same amount of compromise penalty as the resident taxpayers.
3. In no case shall the compromise penalty differ in amount from those speci ed in the aforementioned Schedule,
except when duly approved by the Commissioner or, in a proper case, by the Regional Directors.
4. Although all amounts of compromise penalties incident to violations shall be itemized in the assessment notice
and/or demand letter along with the other administrative penalties like surcharge and interest, the same should
not form part of the total amount assessed/demanded but should appear separately as a suggestion to the
taxpayer to pay in lieu of criminal prosecution. If paid, the compromise penalties shall be collected and
accounted for under the usual procedures, as internal revenue.
5. Since compromise penalties are only amounts suggested in settlement of criminal liability, and may not therefore be
imposed or exacted on the taxpayer in the event that a taxpayer refuses to pay the suggested compromise
penalty, the violation shall be referred for criminal action as heretofore mentioned.
6. Non-resident lers who commit any of the violations stated in the schedule shall pay the equivalent amount of
compromise penalty in pesos or its equivalent in U.S. dollars.
V. Effectivity:
This Order shall take effect immediately.
253 Willful attempt to evade Fine of not more than This violation cannot be
of defeat any tax imposed P10,000 or imprisonment compromised because it
for the National Internal not more than 2 years, or involves fraud - Sec. 204
Revenue Code or the both. NIRC.
payment thereof.
254 Willful failure to pay Fine of not less than There is no specific amount
any internal revenue tax P5,000 nor more than of compromise penalty
at the time or times P50,000 or imprisonment prescribed but the same may
required by law or for not less than 6 months be compromised at the
regulation. and 1 day but not more discretion of the
than 5 years, or both. Commissioner on a case
to case basis.
Failure to pay any internal Fine of not more than If the amount of tax unpaid
revenue tax at the time or P1,000 or imprisonment
times required by law or of not more than 6
regulation. months, or both. But Does Compromise
(Sec. 274, NIRC) Exceeds Not Exceed is
P xxx P 500 P 200
500 1,000 400
1,000 2,000 700
2,000 5,000 1,000
5,000 7,500 1,500
7,500 10,000 2,000
10,000 15,000 3,000
15,000 20,000 4,000
20,000 30,000 6,000
30,000 50,000 8,500
50,000 100,000 12,000
100,000 500,000 16,000
500,000 1,000,000 20,000
1,000,000 x x x 25,000
254 Willful failure to make/file Fine of not more than There is no specific amount of
any return, keep records P5,000 nor more than compromised penalty pres-
or supply information at P50,000 or imprisonment cribed, but the same may be
the time or times required for not less than 6 months compromised at the discretion
by law or regulations. and 1 day but not more of the Commissioner on a
than 5 years, or both. case to case basis.
Failure to make/file any Fine of not more than If gross annual sales, earnings
return or supply infor- P1,000 or imprisonment or receipts; or gross estate
mation at the time or for not more than 6 or gift
times required by law or months, or both.
regulations. (Sec. 274, NIRC) But Does Compromise
Exceeds Not Exceed is
P x x x P 10,000 P 200
10,000 20,000 400
20,000 30,000 600
30,000 50,000 1,000
50,000 75,000 1,500
75,000 100,000 2,000
100,000 300,000 3,000
300,000 500,000 5,000
500,000 1,000,000 7,500
1,000,000 5,000,000 10,000
5,000,000 10,000,000 15,000
10,000,000 25,000,000 20,000
25,000,000 x x x 25,000
232 Failure to keep/preserve Fine of not more than If gross annual sales, earnings
235 records required by law P1,000 or imprisonment or receipts
or regulations for not more than
6 months, or both. But Does Compromise
(Sec. 274, NIRC) Exceeds Not Exceed is
P x x x P 10,000 P 200
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10,000
20,000 20,000
30,000 400
600
30,000 50,000 1,000
50,000 75,000 1,500
75,000 100,000 2,000
100,000 250,000 3,000
250,000 500,000 5,000
500,000 1,000,000 7,500
1,000,000 5,000,000 10,000
5,000,000 10,000,000 15,000
10,000,000 20,000,000 20,000
20,000,000 50,000,000 30,000
50,000,000 x x x 50,000
254 Willful failure to withhold Fine of not less than There is no specific amount of
or remit withheld taxes at P5,000 nor more than compromised penalty pres-
the time or times required P50,000 or imprisonment cribed, but the same may be
by law or regulations. for 6 months and 1 day compromised at the discretion
but not more than 5 of the Commissioner on a
years, or both. case to case basis.
Failure to withhold or Fine of not more than If the amount of tax not
remit withheld taxes at P1,000 or imprisonment withheld or remitted -
the time or times for not more than 6
required by law or months, or both.
regulations. (Sec. 274, NIRC) But Does Compromise
Exceeds Not Exceed is
P x x x P 500 P 200
500 1,000 400
1,000 2,000 700
2,000 5,000 1,000
5,000 7,500 1,500
7,500 10,000 2,000
10,000 15,000 3,000
15,000 20,000 4,000
20,000 30,000 6,500
30,000 50,000 9,000
50,000 100,000 12,000
100,000 500,000 16,000
500,000 1,000,000 20,000
1,000,000 x x x 25,000
255 Any act or omission by a Fine of not less than P4,000 for corporation, or
corporation which is P10,000 but not exceeding the amount of compromise
penalized by the NIRC. P100,000 (in addition to penalty set forth in this
232 Failure to have books of Fine of not more than If the gross sales, earnings
accounts audited and P1,000 or imprisonment or receipts
have the financial state- of not more than 6
ments attached to the months, or both.
income tax return (Sec. 274, NIRC) But Does Compromise
certified by an Exceeds Not Exceed is
independent CPA. P 25,000 P 200,000 P 2,000
for any for the
one quarter year
200,000 500,000 4,000
500,000 1,000,000 6,000
1,000,000 5,000,000 10,000
5,000,000 10,000,000 15,000
10,000,000 25,000,000 20,000
25,000,000 x x x 25,000
83 Failure to have the Fine of not more than If the gross estate
statement of assets P1,000 or imprisonment
of the decedent and of not more than 6
the deductions from months, or both.
gross estate certified (Sec. 274, NIRC) But Does Compromise
by an independent Exceeds Not Exceed is
CPA. P 50,000 P 200,000 P 1,000
200,000 500,000 1,500
500,000 1,000,000 2,000
1,000,000 5,000,000 4,000
5,000,000 10,000,000 7,500
10,000,000 25,000,000 10,000
25,000,000 50,000,000 15,000
50,000,000 xxx 20,000
(Imprisonment: 10 years
& 1 day - 14 years)
c) For issuance of
receipts that do
not truly reflect
and/or contain all
the information
required to be
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shown therein 1,000 2,500
If the information
missing is the
correct amount of
the transaction 2,000 5,000
(ii) Use of
unregistered cash
register machines
in lieu of invoices
or receipts 7,500 15,000
e) For possession
or use of multiple or Not subject
double receipts or to
invoices Compromise
f) For printing or
causing, aiding or
1) Receipts or
invoices without
authority from
the BIR 5,000 10,000
3) Receipts or
invoices not
bearing any of
the following: P5,000 P10,000
a. Consecutive
numbers
b. Name of Taxpayer
c. Business Style
d. Business address
of the person or
entity to use
the same
2) Erasing the cancel- Fine of not more than This violation cannot be
lation marks of any P10,000 or imprisonment compromised because
stamps previously used for not more than 5 it involves fraud.
or altering the written years or both. (Sec. 204, NIRC)
figures or letters, or
cancelling marks on
internal revenue stamps.
265 Failure to obey summons; Fine of not less than This violation should not be
to testify; or to appear P1,000 or imprisonment compromised because if
and produce books of not more than 1 year or compromised, it will nullify the
accounts, records, etc. both. coercive power of the CIR
or to furnish information under Sec. 7(b), NIRC to
required under the NIRC. obtain information or facts
necessary for investigation of
tax liabilities.
271 Failure of government Fine of not less than If the amount of tax not
officer or employee P5,000 nor more than P50,000 withheld or remitted -
charged with the duty to or imprisonment for 6 months
deduct and withhold any and 1 day but not more than
internal revenue tax and 2 years, or both. But Does Compromise
failure to remit the same Exceeds Not Exceed is
accordance with the P x x x P 500 P 200
provisions of the NIRC. 500 1,000 400
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1,000 2,000 700
2,000 5,000 1,000
5,000 10,000 2,000
10,000 15,000 3,000
15,000 20,000 4,000
20,000 30,000 6,000
30,000 50,000 9,000
50,000 100,000 12,000
100,000 500,000 16,000
500,000 1,000,000 20,000
1,000,000 x x x 25,000
275 Sale, transfer, encum- Fine of not less than 20% of value of property
brance or any other twice the value of the
disposition of any property sold, encumbered
property or part or disposed of, but not
thereof placed under less than P5,000 or
constructive distraint, imprisonment of not less
without the knowledge than 2 years and 1 day
and consent of the but not more than 4 years,
Commissioner. or both.
277 Procuring the unlawful Fine of not more than This violation should not be
divulgence of any P2,000 or imprisonment compromised because it is
confidential information of not less than 6 months against public policy to allow
regarding the business, nor more than 5 years, divulgence of confidential
income or inheritance of or both. information, unless this is
any taxpayer; unlawfully validly authorized under
publishing or printing the existing law.
income, profits, losses or
expenditures appearing in
any income tax return.
Certain acts/violations which may be resorted to and applicable to non-resident taxpayers are imposed the same amount of compromise penalty as
resident taxpayers and may be paid in pesos or its equivalent in U.S. dollars.)
a/ The amount of the compromise penalty shall be doubled if the transaction/violator is subject to value-added tax or to any percentage tax of 4% or more.