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Compromise
Compromise penalties are amounts collected by the
BIR in lieu of criminal prosecution for violations
committed by taxpayers, the payment of which is
based on a compromise agreement validly entered
into between the taxpayer and the Commissioner of
Internal Revenue
Requisites:
Nature
of
a
Compromise
in
Extrajudicial Settlement of the
Taxpayers Criminal Liability for his
Violation
It is consensual in character, hence, may not be
imposed on the taxpayer without his consent.
Compromise Penalty
It is an amount of money that the taxpayer
pays to compromise a tax violation. This is paid in
lieu of criminal prosecution. A taxpayer cannot be
compelled to pay a compromise penalty. If he
does not want to pay, the CIR must institute a
criminal action.