OTHER TAX COMPLIANCE

Tax Advisory Services

Academy of Quality Training
Alas, Oplas, & Co., CPAs
 TO KNOW AND UNDERSTAND THE TRAIN LAW, ITS EFFECTS
AND APPLICATION INCLUDING THE MOST RECENT BIR
ISSUANCES AND UPDATES REGARDING ITS IMLEMENTATION
 Keeping of Books of Accounts

 Person Required to Register for

VAT
 Issuance of Receipts or Sales or
Commercial Invoices
 New Interest Rate Imposed on
Unpaid Taxes
 Update on Criminal Charges
under Section 254, 264, 265, and
269 of the NIRC of 1997, as
amended
Sec. 232: Keeping of Books of Accounts
NIRC of 1997, as amended TRAIN

All corporations, companies, partnerships, or persons required by law to pay

internal revenue taxes shall :
 Keep a journal and a ledger or their
equivalents:
 Those whose quarterly sales, Keep and use relevant appropriate set of
earnings, receipts, or output do not bookkeeping.
exceed P50,000 shall keep and use
a simplified set of bookkeeping
records:

Books of accounts must be examined yearly independent CPA if:

Gross quarterly sales, earnings, Gross annual sales, earnings,
receipts or output exceed receipts or output exceed
P150,000.00 P3,000,000.00
Sec. 236: Registration Requirements
NIRC of 1997, as amended
The registration requirement shall
contain the taxpayer’s name, style,
place of residence, business, and
such other information as may be
required by the Commissioner
TRAIN
Additional Provision:
Provided, That the Commissioner shall
simplify the business registration and tax
compliance requirements of self-
employed individuals and/or
professionals,
Persons Required to Register to VAT
NIRC of 1997, as amended TRAIN
His gross sales or receipts for the past 12 months, other than those that are VAT-
exempt, have exceeded:

₱1,500,000.00 ₱3,000,000.00
There are reasonable grounds to believe that his gross sales or receipts for the
next 12 months, other than those that are exempt, will exceed

₱1,500,000.00 ₱3,000,000.00
Optional Registration for VAT-Exempt Person

NIRC of 1997, as amended TRAIN

VAT exempt persons who elects to
register for VAT shall not be entitled
to cancel his registration for the
next three years.
Additional Provision:
Provided, That any person who elected
to pay the 8% tax on gross sales or
receipts shall not be allowed to avail of
this option.
Sec. 237: Issuance of Receipts or Sales or Commercial
Invoices
NIRC of 1997, as
TRAIN
amended
Requires issuance of
Receipts or Sales or
₱25.00 or more ₱100.00 or more
Commercial Invoices if
the sale is…
Sec. 237- Issuance of Receipts or Sales or Commercial
Invoices (cont’d)
TRAIN – Additional Provision
“Within 5 years from the effectivity of this Act and upon the establishment of
a system capable of storing and processing the required data, the Bureau
shall require taxpayers engaged in the export of goods and services,
taxpayers engaged in e-commerce, and taxpayers under the
jurisdiction of the Large Taxpayers Service to issue electronic receipts
or sales or commercial invoices subject to rules and regulations to be
issued by the Secretary of Finance upon recommendation of the
Commissioner and after a public hearing shall have been held for this
purpose: Provided, That the taxpayers not covered by the mandate of this
provision may issue electronic receipts or, sales or commercial invoices, in
lieu of manual receipts, and sales and commercial invoices.”

“…Provided, That in case of electronic receipt or sales or commercial

invoices, the digital records of the same shall be kept by the purchaser,
customer or client and the issuer of the same period above stated.
Sec. 237: Issuance of Receipts or Sales or Commercial
Invoices
TRAIN – New Section
Sec. 237-A. Electronic Sales Reporting System
“Within 5 years from the effectivity of this Act and upon the establishment of
a system capable of storing and processing the required data, the Bureau
shall require taxpayers engaged in the export of goods and services,
taxpayers engaged in e-commerce, and taxpayers under the jurisdiction of
the Large Taxpayers Service to electronically report their sales data to the
Bureau through the use of electronic point of sales systems, subject to rules
and regulations to be issued by the Secretary of Finance as recommended
by the Commissioner of Internal Revenue: Provided, That the machines,
fiscal devices, and fiscal memory devices shall be at the expense of the
taxpayers.
The data processing of sales and purchase data shall comply with provisions
of R.A. No. 10173, otherwise known as the “Data Privacy Act” on unlawful
divulgence of taxpayer information and such other laws relating to the
confidentiality of information
Sec. 237-A: Issuance of Receipts or Sales or Commercial
Invoices
TRAIN – New Section
Sec. 237-A. Electronic Sales Reporting System (cont’d)
The Bureau shall also establish policies, risk management approaches,
actions, trainings, and technologies to protect the cyber environment,
organization, and data in compliance with R.A. No. 10175 or the “Cybercrime
Prevention Act of 2012.”
 Sec. 249. Interest
NIRC of 1997,
TRAIN
as amended

Deficiency Tax 20% 12%

Interest
imposed on:
Delinquency Tax 20% 12%
Interest shall be Interest shall be assessed
assessed and and collected from the date
collected from the prescribed for its payment
date prescribed for until the full payment
Sec. 249 (B) Deficiency Tax
its payment until the thereof, or upon issuance of
full payment a notice and demand by the
Added provision
thereof. Commissioner of Internal
Revenue, whichever comes
earlier.
 Update on Criminal Charges under Section 254 and 264
NIRC of 1997,
Penalty Provisions TRAIN
as amended
Sec. 254 Attempt to evade or defeat any tax. Not <₱500,000
Not <₱30,000 but
Fine of but not
not >₱100,000
>₱10,000,000
Not < 2 years but Not < 6 years but
Imprisonment of
not > 4 years not > 10 years
Sec. 264 Not <₱500,000
 Printing of receipts, or sales or Not <₱1,000 but
but not
commercial invoices without authority Fine of not >₱50,000
>₱10,000,000
from the BIR

 Printing of double or multiple sets of

invoices or receipts;

 Printing of unnumbered receipts or sales

or commercial invoices, not bearing the Not < 6 years but
name, business style, TIN, and business Not < 2 years but
Imprisonment of not > 10 years
address of the person or entity not > 4 years

 Printing of fraudulent receipts- New

Offenses under TRAIN
 Update on Criminal Charges under Section 264
New
Penalty Provisions
Sections
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-
Sec. 264-B Purchase, Use, Possession, Sale or
Offer to Sell, Installment, Transfer,
Update, Upgrade, Keeping or
Maintaining of Sales Suppression
Devices
Penalty Imposed
TRAIN
 Penalty amounting to 1/10 of 1% of the annual net
income as reflected in the taxpayer’s audited FS for
the second year preceding the current taxable year
for each day of violation or P10,000.00, whichever is
higher, except if failure to transmit is due to force
majeure or any cases beyond the control of the
taxpayer the payer shall not apply
 If the aggregate number of days of violation exceed
180 days within a taxable year, an additional penalty
of permanent closure of the taxpayer shall be
imposed
 Imposes a fine of not less than P500,000.00 but not
more than P10,000,000.00, and suffer imprisonment
of not less than 2 years but not more than 4 years.
 Cumulative suppression of an electronic sales
record in excess of P50,000,000.00 shall be
considered as economic sabotage and shall be
considered
 Sec. 265-A Offenses Relating to Fuel Marking (New Sections)
Penalty Imposed
Penalty Provisions
TRAIN
a. Any person found to be engaged in
the sale, trade, delivery, distribution or
transportation of unmarked fuel in 1st offense: a fine of P2,000,000.00
commercial quantity held for domestic
use or merchandise. 2nd offense: a fine of P5,000,000.00
b. Any person who causes the removal of
3rd offense: a fine of P10,000,000.00
the official fuel marking agent from
marked fuel, and the adulteration or
dilution
 Sec. 265-A Offenses Relating to Fuel Marking (New Sections)
Penalty Imposed
Penalty Provisions
TRAIN
c. Any person who:
1. Making, importing, selling, using or
possessing fuel markers without express
authority; A fine of not less than P1,000,000.00 but not
more than P5,000,000.00, and suffer
2. Any person who causes the removal of the
imprisonment of not less than 4 years but not
official fuel marking agent from marked fuel,
more than 8 years.
and the adulteration or dilution
3. Causing another person or entity to commit
any of the 2 preceding acts;
4. Causing the sale, distribution, supply or
transport of legitimately imported, in-transit, A fine of not less than P5,000,000.00 but not
manufactured or procedure controlled more than P10,000,000.00, and suffer
precursors and essential chemicals, in diluted, imprisonment of not less than 4 years but not
mixtures or in concentrated form, to any more than 8 years.
person or entity penalized in subsections (a),
(b), (c), hereof.
 Sec. 265-A Offenses Relating to Fuel Marking (New Sections)
Penalty Imposed
Penalty Provisions
TRAIN
d. Any person who willfully inserts, places adds
or attaches directly or indirectly, through any
overt or covert act, whatever quantity of any
A fine of not less than P5,000,000.00 but not more
unmarked fuel, counterfeit additive or
than P10,000,000.00 upon conviction, and suffer
chemical in the person, house, effects,
imprisonment of not less than 4 years but not
inventory, or in the immediate vicinity of an
more than 8 years.
innocent individual for the purpose of
implicating, incriminating or imputing the
commission of any violation this Act.

e. Any person who is authorized, licensed or

accredited under this Act and its
implementing rules to conduct fuel test
results, who issues false or fraudulent fuel test
results knowingly, willfully or through gross
negligence.
Shall suffer additional penalty of imprisonment
ranging from 1 year and 1 day to 2 years and 6
months.
Update on Section 269 of the NIRC of 1997, as amended
TRAIN
Sec. 269. Violations Committed by Government Enforcement
Officers -
(j) Deliberate failure to act on the application for refunds within the
prescribed period provided under Section 112 of this Act
“When it is obvious that the goals cannot be reached, don't
adjust the goals, adjust the action steps.” - Confucius
THANK YOU!!

TAX ADVISORY SERVICES

ALAS, OPLAS & CO., CPAS
25TH FLOOR PHILIPPINE AXA LIFE CENTRE,
SEN. GIL PUYAT COR. TINDALO ST. MAKATI CITY

Telephone: +63 (02) 759-5091 to 92

Email: aocheadoffice@alasoplascpas.com