Revised Compromise Penalties for Tax Code Violations

Existing policies under RMO No. 19-2007 remain in full force for strict compliance.
Compromise penalties apply only to criminal violations not involving fraudulent acts.
Compromise penalty amounts shall strictly follow the Revised Schedule attached as Annex "A".
Acts involving fraud are excluded from compromise and are grounds for criminal prosecution.

Internal Revenue officers are to apply the Revised Schedule of Compromise Penalties to ensure uniformity.
Cases involving fraud are to be referred to the proper jurisdictional Division for criminal action.
Compromise penalties must not differ from those specified unless approved by the Commissioner or authorized officers.
Compromise penalties must be itemized separately from deficiency tax, surcharge, and interest in assessment or demand notices.
Payment of compromise penalties is voluntary and acts as settlement of criminal liability but is not compulsory.
Failure to pay compromise penalties results in referral for criminal prosecution.
The Commissioner or authorized representatives may accept compromise amounts higher or lower than the prescribed schedule, subject to approval.

All previous orders inconsistent with this Order are repealed or revoked accordingly.