Question & AnswerQ&A (Republic Act No. 7642)
Republic Act No. 7642 is an Act increasing the penalties for tax evasion in the Philippines and amending pertinent sections of the National Internal Revenue Code to impose higher fines and imprisonment for violations related to tax evasion.
The fines imposed for any violation shall not be lower than the fines imposed herein or twice the amount of taxes, interests, and surcharges due from the taxpayer, whichever is higher.
Upon conviction, the person shall be fined not less than Thirty thousand pesos but not more than One hundred thousand pesos and suffer imprisonment of not less than two years but not more than four years.
The person shall be fined not less than Ten thousand pesos but not more than Twenty thousand pesos and suffer imprisonment of not less than one year but not more than three years.
Any corporation, association, or general co-partnership liable for penalized acts shall, upon conviction, be fined not less than Fifty thousand pesos but not more than One hundred thousand pesos in addition to penalties on responsible officers or employees.
They shall be punished by a fine of not less than Thirty thousand pesos but not more than Fifty thousand pesos and suffer imprisonment of not less than two years but not more than six years upon conviction for each act or omission.
Upon conviction, the person shall be fined not less than Five thousand pesos but not more than Twenty thousand pesos and suffer imprisonment of not less than six months but not more than two years; higher fines and imprisonment apply for businesses involving excise tax articles.
The offender shall be fined not less than Twenty thousand pesos but not more than Fifty thousand pesos and suffer imprisonment of not less than one year but not more than two years upon conviction.
Penalties vary depending on the appraised value of the articles, including fines ranging from One thousand to One hundred thousand pesos and imprisonment from 60 days to 12 years. Additional fines and imprisonment apply for manufacturers or persons who unlawfully remove such articles.
The person shall be fined not less than Twenty thousand pesos but not more than Fifty thousand pesos and suffer imprisonment of not less than four years but not more than eight years.
They shall be fined not less than Fifty thousand pesos but not more than One hundred thousand pesos, suffer imprisonment of ten to fifteen years, and face perpetual disqualification to hold public office, vote, or participate in elections.
It is composed of the Chairmen of the Committees on Ways and Means of both Houses of Congress as Co-chairmen and three other members from said committees.
The Secretary of Finance shall, upon recommendation of the Commissioner of Internal Revenue, promulgate the necessary rules and regulations for the effective implementation of the Act.