Division I
Offences (ss 56-60)

56.     False or misleading statements

            (1) A person who-

     (a)     makes a statement that is false or misleading in a material particular, to a taxation officer; or

     (b)     omits from a statement made to a taxation officer, any matter or thing without which the statement is misleading in a material particular,

commits an offence and is liable on conviction-

      (i)     where the statement or omission was made knowingly or recklessly, to a fine not exceeding P10,000 or to imprisonment for a term not exceeding two years, or to both; or

      (ii)     in any other case, to a fine not exceeding P5,000 or to imprisonment for a term not exceeding one year, or to both.

            (2) A reference in this section to a statement made to a taxation officer is a reference to a statement made orally, in writing, or in any other form to that officer acting in the performance of the officer's duties under this Act, and includes a statement made-

     (a)     in an application, certificate, declaration, notification, return, objection, or other document made, prepared, given, filed, lodged, or furnished under this Act;

     (b)     in information required to be furnished under this Act;

     (c)     in a document furnished to a taxation officer otherwise than pursuant to this Act;

     (d)     in an answer to a question asked of a person by a taxation officer; or

     (e)     to another person with the knowledge or reasonable expectation that the statement would be conveyed to a taxation officer.

            (3) It is a defence to a prosecution under subsection (1) that the person did not know and could not reasonably be expected to have known that the statement to which the prosecution relates was false or misleading.

57.     Obstructing taxation officers

             A person who obstructs a taxation officer in the performance of the officer's duties under this Act, commits an offence and is liable on conviction, to a fine not exceeding P10,000 or to imprisonment for a term not exceeding two years, or to both.

58.     Offences by taxation officers

            A taxation officer who, in carrying out the provisions of this Act-

     (a)     directly or indirectly asks for, or takes, in connection with any of the officer's duties, any payment or reward, whether pecuniary or otherwise, or any promise or security for such payment or reward, not being a payment or reward which the officer was lawfully entitled to receive; or

     (b)     enters into or acquiesces in any agreement to do, abstain from doing, permit, conceal, or connive at any act or thing whereby the tax revenue is or may be defrauded or which is contrary to the provisions of this Act or to the proper execution of the officer's duty, commits an offence and is liable on conviction, to a fine not exceeding P25,000 or to imprisonment for a term not exceeding five years, or to both and the Court may, in addition to imposing a fine, order the convicted person to pay to the Commissioner General any amount of tax that has not been paid as a result of the officer's wrongdoing and which cannot be recovered from the person liable for the tax.

59.     Offences by companies, aiders and abetters

            (1) Where an offence under this Act is committed by a company, any person who at the time of the commission of the offence-

     (a)     was a representative officer, director, general manager, secretary, or other similar officer of the company; or

     (b)     was acting or purporting to act in such capacity,

is deemed to have committed the offence.

            (2) Subsection (1) does not apply where-

     (a)     the offence was committed without such person's consent or knowledge; and

     (b)     the person exercised all such diligence as ought to have been exercised, having regard to the nature of the person's functions and all the circumstances, to prevent the commission of the offence.

            (3) A person aiding and abetting the commission of an offence under this Act also commits that offence and is liable to the same penalties as the person committing the offence.

60.     Compounding of offences

            (1) Where a person commits an offence under this Act, other than an offence under section 58, at any time prior to the commencement of the court proceedings relating thereto, if-

     (a)     the fine does not exceed P5,000, the Commissioner General; or

     (b)     the fine exceeds P5,000, the Commissioner General, with the approval of the Minister,

may compound such offence and order the person to pay such sum of money as may be specified by the Commissioner General, not exceeding the amount of the fine prescribed for that offence.

            (2) The Commissioner General shall only compound an offence under this section if the person who has committed the offence requests the Commissioner General, in writing, so to deal with the offence.

            (3) Where the Commissioner General compounds an offence under this section, the order referred to in subsection (1)-

     (a)     shall be in writing and there shall be attached to it, the request referred to under subsection (2);

     (b)     shall specify-

           (i)       the offence committed;

          (ii)       the sum of money to be paid; and

          (iii)       the due date for the payment;

     (c)     shall be served on the person who committed the offence;

     (d)     shall be final and not subject to any appeal;

     (e)     may be enforced in the same manner as a decree of a court for the payment of the amount stated in the order.

            (4) Where the Commissioner General compounds an offence under this section, the person concerned shall not be liable for prosecution in respect of such offence or for penalty under section 16(9), 51(4), or 61; and the person shall not be subject to publication of names under subsection (5).

            (5) The Commissioner General shall from time to time publish by notice in the Gazette a list of persons who have been convicted of offences under-

     (a)     section 16(8), 17(8), 18(13), 23(10) and (11),  24(7) and (8), 42(11), 51(3)(a), 55(2), 56(1)(c), 57, or 58; or

     (b)     section 59(3) where the person is guilty of aiding and abetting the commission of an offence referred to in paragraph (a).

            (6) Every list published in terms of subsection (5) shall specify-

     (a)     the name, address, and principal enterprise of the registered person;

     (b)     such particulars of the offence as the Commissioner General may think fit;

     (c)     the tax period or tax periods in which the offence occurred;

     (d)     the amount or estimated amount of the tax evaded; and

     (e)     the amount, if any, of the additional tax imposed.

Division II
Penalties (ss 61-63)

61.     Penalty for false or misleading statements

            (1) Where a person knowingly or recklessly-

     (a)     makes a statement to a taxation officer that is false or misleading in a material particular; or

     (b)     omits from a statement made to a taxation officer any matter or thing without which the statement is misleading in a material particular, and the tax properly payable by the person exceeds the tax that would be payable if the person were assessed on the basis that the statement is true, the person is liable to a penalty equal to double the amount of the excess.

            (2) Section 56(2) and (3) apply in determining whether a person has made a statement to a taxation officer.

            (3) No penalty is payable under this section where the person has been convicted of an offence under section 56 in respect of the same act or omission.

            (4) If a penalty under this section has been paid and the Commissioner General institutes a prosecution proceeding under section 56 in respect of the same act or omission, the Commissioner General shall refund the amount of the penalty paid, and that penalty is not payable unless the prosecution is withdrawn.

62.     Recovery of penalties

            (1) Where good cause is shown, in writing, by the person liable for a penalty, the Commissioner General may remit in whole or in part any penalty payable.

            (2) Except as otherwise provided in this Act, the imposition of a penalty is in addition to any fine or prison sentence imposed as a result of a conviction for an offence under section 15(8) or (9), 16(8), 17(8), 18(13), 23(10) or (11), 24(7) or (8), 26(4) or (5), 40(9), 41(6), 42(11), 51(3), 52(9), 54(5), 55(2), 65(5), or under Division I of Part XV.

            (3) Penalties may be assessed and collected as if the amount of penalty is a tax due under this Act.

            (4) A person dissatisfied with a decision of the Commissioner General under subsection (1) or (5) may appeal against such decision only in accordance with the provisions of Part VIII.

            (5) After first consulting the accounting officer for purposes of the Finance and Audit Act, the Commissioner General may, if he is satisfied that the same is irrecoverable, remit any amount of tax, not exceeding P50,000, unpaid by any person in respect of any tax year.

            (6) The Minister may remit wholly or in part any tax payable by any person where he is satisfied that it is just and equitable to do so, or where he is satisfied that such tax is irrecoverable.

63.     Closure of business premises

            (1) Where a person is repeatedly in breach of-

     (a)     section 23 in relation to tax invoices;

     (b)     section 24 in relation to tax debit notes or tax credit notes;

     (c)     section 26 by failing to furnish returns;

     (d)     section 42 by improperly claiming tax refunds;

     (e)     section 57 by obstructing taxation officers; or

     (f)      section 15 or 33 by failing to pay tax when due,

the Commissioner General may, after obtaining a court order, forcibly close all business premises of the person.

            (2) For purposes of subsection (1), the Commissioner General may use reasonable force and police assistance necessary to close all or any business premises of the person, barring access with locks, fencing, boarding, or other appropriate methods.