AMENDING SECTIONS 216 AND 220-A OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, TO INCREASE THE VALUE OF THE MERCHANDISE OR SERVICE RENDERED WHERE ISSUANCE OF INVOICES OR RECEIPTS IS REQUIRED AND MODIFYING THE PENALTIES IMPOSED FOR VIOLATIONS CONNECTED WITH THE ISSUANCE OR PRINTING THEREOF.

• Number: Presidential Decree No. 1942
• Sections: 5

Preamble

WHEREAS, the present law in Sec. 216 of the

National internal Revenue Code, requires the issuance of sales invoices and

receipts for merchandise or services worth five pesos (P5.00) or more, subject

to the imposition of fine and imprisonment in case of violation, under Sec.

220-A thereof;

WHEREAS, considering the depreciation of the

currency, said requirement has now become obsolete coupled with the fact that

the penalty prescribed is quite stiff;

WHEREAS, in order to encourage cooperation of

taxpayers thru voluntary tax compliance, it is deemed fit and proper to change

the present requirement so as to increase the mandatory amount to a more

realistic level as well as to modify the existing penalties for violation;

NOW, THEREFORE, I, FERDINAND E. MARCOS,

President of the Philippines, by virtue of the powers vested in me by

the Constitution, do hereby order and decree the following:

Section 1

SECTION 1. Section 216 of the National

Internal Revenue Code is amended to read as follows:

"SEC. 216. Persons subject to tax to issue

receipts or sales or commercial invoices; contents of registered receipts or

invoices.—All persons subject to an internal revenue tax shall, for each sale or

transfer of merchandise or for services rendered valued at twenty five pesos or

more, issue duly registered receipts or sales or commercial invoices, prepared

at least in duplicate, showing the date of transaction, quantity, unit cost and

description of merchandise or nature of service; Provided, that in the case of

sales, receipts of transfers in the amount of one hundred pesos or more, or

regardless of amount, where the sale or transfer is made by producers,

manufacturers, importers, wholesalers, or, where the receipt is issued to cover

payment made as rentals, commissions, compensations or fees, the receipts or

invoices shall further show the name, business style, if any, and address of the

purchaser, customer, or client. The original of each receipt or invoice shall be

issued to the purchaser, customer or client at the time the transaction is

effected, who, if engaged in business or in the exercise of profession, shall

keep and preserve the same in his place of business for a period of five years

from the date of the invoice or receipt, while the duplicate shall be kept and

preserved by the issuer, also in his place of business, for a like period:

Provided, that persons subject to tax, whose gross sales, earnings or receipts

during the last preceding year exceed thirty thousand pesos shall, for each sale

or transaction, issue a receipt or an invoice, irrespective of the value of the

article sold or service rendered.

The Commissioner of Internal Revenue may, in meritorious cases,

exempt any person subject to an internal revenue tax from compliance with the

provisions of this section. In any event, market vendors selling exclusively

domestic meat, fruits, vegetables, games, poultry, fish and other food products

are hereby exempted from the provisions of this section.

The provisions of this section, together with the penal

provisions in Presidential Decree No. 1254, shall be posted in a prominent place

in the establishment covered by the requirement thereof."

Section 2

SEC. 2. Section

220-A of the National Internal Revenue Code is amended to read as follows:

"SEC. 220-A. Failure or refusal to issue

receipts or sales or commercial invoices; violations related to the printing of

such receipts or invoices and other violations..-Any person who, being required

under Section 216 to issue receipts or sales or commercial invoices, fails or

refuses to issue such receipts or invoices, issues receipts or invoices that do

not truly reflect and/or contain all the information required to be shown

therein possesses or uses unregistered receipts or invoices,' possesses or uses

multiple or double receipts or invoices shall be penalized as

follows:

For the First Offense-A fine of not less than one thousand pesos but not

more than two thousand pesos or imprisonment of not more than six months;

For the Second Offense—A fine of not less than two thousand pesos but not

more than three thousand pesos or imprisonment of not less than six months but

not more than three years;

For Subsequent Offenses—A fine of not less than three thousand pesos nor

more than six thousand pesos or imprisonment of not less than three years but

not more than six years, and cancellation of license to do business.

The criminal liability arising from third and subsequent offenses

cannot be compromised.

"Any person who commits any of the acts enumerated hereunder

shall be penalized in the same manner and to the same extent as provided for in

this Section:

"1. Prints, causes, aids or abets the printing of receipts or

sales or commercial invoices without authority from the Bureau of Internal

Revenue;

"2. Prints, causes, aids or abets the printing of double or multiple

sets of invoices or receipts;

"3. Prints, causes, aids, or abets the printing of unnumbered

receipts or sales or commercial invoices or not bearing the name, business

style, taxpayer account number, and business address of the person or entity to

use the same;

"4. Fails to submit the quarterly report required in Section

216-A.

IN THE CASE OF THIRD AND SUBSEQUENT OFFENSES,

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, he shall, in addition to the

penalties prescribed herein, be dismissed from the public service and

perpetually disqualified from holding any public office. In the case of

associations, partnerships, or corporations, the penalty shall be imposed upon

its partners, president, general-manager, branch manager and/or office-in-charge

as well as the employee responsible for the violation.

“In any case, the employer shall be liable for the act or

omission of the employee.

“ A professional found guilty of any of the violations

penalized

under the provisions of this Section shall, aside from being meted

the penalties therein imposed, be reported to the Professional Regulation

Commission or the proper regulatory body for disciplinary action which may

include suspension or absolute revocation of his license to practice his

profession.”

Section 3

SEC. 3. All laws, rules and regulations

inconsistent herewith are hereby repealed or amended accordingly.

Section 4

SEC. 4. This law shall take effect

immediately.

Done in the City of Manila, this 27th day of June in the Year

of Our Lord, nineteen hundred and eighty-four.