Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1254)
The main purpose of Presidential Decree No. 1254 is to amend the National Internal Revenue Code by adding Section 220-A, which provides specific penalties for failure or refusal to issue receipts or sales or commercial invoices, and for violations related to the printing and use of such receipts or invoices to prevent revenue loss to the government.
Section 220-A penalizes any person who fails or refuses to issue receipts or invoices when required, issues false receipts or invoices, possesses or uses unregistered or multiple receipts or invoices, and those who print or aid in printing such receipts or invoices without authority.
For the first offense, the penalty is a fine of not more than two hundred pesos and imprisonment of not more than six months.
The second offense is punishable by a fine ranging from two hundred pesos to three thousand pesos and imprisonment from six months to three years. The criminal liability for second offenses cannot be compromised.
Subsequent offenses carry a fine of not less than three thousand pesos nor more than six thousand pesos, imprisonment from three to six years, and cancellation of business license.
The penalty shall be imposed on the partners, president, general manager, branch manager, officer-in-charge, and the employee responsible. Also, the employer is liable for the acts or omissions of their employees.
If the offender is not a Philippine citizen, he shall be deported immediately after serving the sentence, without further deportation proceedings.
They shall be dismissed from public service and perpetually disqualified from holding public office, in addition to the penalties provided under Section 220-A.
Aside from penal sanctions, they shall be reported to the Professional Regulation Commission or the appropriate regulatory body for disciplinary action, which may include suspension or revocation of their professional license.
Acts include printing without authorization from the Bureau of Internal Revenue, printing double or multiple invoice sets, printing unnumbered receipts or those not showing the required name, business style, taxpayer account number, and business address.
The quarterly report concerning issued receipts or invoices is required; failure to submit this report is penalized in the same manner as other violations under Section 220-A.