FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B.NO. 2"119 
'11 
FEB 28 A 8 :48 
Introduced by Senator TEOFISTO "TG" GUINGONA III 
EXPLANATORY NOTE 
It is to the State's interest to enhance tax monitoring and collection; increase revenue 
collection; and avoid tax fraud and graft and corruption in the tax collection efforts. In order to 
achieve these objectives, there is a need for stringent security measures to address existing 
loopholes in the collection efforts specifically related to the collection of fees, penalties and other 
charges imposed by government agencies. 
This bill seeks to require all government agencies and instrumentalities, including 
Government-Owned and/or Controlled Corporations and all Local Government Units to use 
security water-marked paper with authorized security features in all receipts, invoices, forms, 
permits, licenses, clearances, official papers and documents which they issue to all persons 
transacting business with them. 
This measure of using security water-marked paper will ensure easier accounting, and 
verification of the validity and authenticity of forms, that will significantly minimize, if not 
eradicate, the use of fake receipts or other payment forms in transactions with the government. 
In view of the foregoing, the immediate enactment of this measure is earnestly sought. 
/ 
• 
o "TG" GUINGONA III 
i 
Senator 


FIFTEE~TH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
'11 
FEB 28 A 8 :48 
SENATE 
S.B.NO. 2719 
Introduced by Senatol' TEOFISTO "TG" GUINGONA In 
AN ACT 
REQUIRING ALL GOVERNMENT AGENCIES, INSTRUMENTALITIES, LOCAL 
GOVERNMENT UNITS AND GOVERNMENT OWNED AND/OR CONTROLLED 
CORPORATIONS TO USE SECURITY WATER-MARKED PAPER IN THEIR 
RECEIPTS AND INVOICES, PERMITS, LICENSES, CLEARANCES, OFFICIAL 
PAPERS OR DOCUMENTS, 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
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SEC. 1. Title. - This Act shall be known as the "Use of Security Water-Marked Paper 
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in all Receipts and Invoices, Pennits, Licenses, Clearances, Official Papers or Documents Act 
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orzOll." 
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SEC. 2. Declaratioll of Policy. - It is hereby the declared policy of the State to: 
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(a) Enhance tax monitoring and collection; 
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(b) Increase revenue collection; and 
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(c) Avoid tax fraud and graft and corruption in the tax collection efforts. 
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SEC. 3. Defillitioll of Terms. - 111e following definition of tenns is hereby adopted· 
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(a) "Receipt" shall refer to a written adnnssion or acknowledgement of the fact of 
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payment in money or other settlement between·seller and buyer of goods, debtor 
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and creditor, or person rendering services and client or customer printed in 
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accordance with these regulations. 
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(b) "Sales invoice or delivelY receipts" shall refer to a written account of goods or 
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services rendered and the price charged therefore, or a list of goods consigned and 
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the value at which the consignee is to receive them or any other list by whatever 
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name is known which is used in the ordinary course of business evidencing sale 
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and transfer or agreement to sell or transfer goods and service, e.g, pnrchase 
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orders, deli very receipts, job orders, provisional and temporary receipts, and 
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others. 
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(c) "Security Paper" shall refer to a secnrity paper which is made of water-marked 
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security paper, which bears such authorized security feature duly etched and 
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embedded in the paper during its manufacturing process. It is especially designed 
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for the printing of official receipts, sales invoices, pennits, licenses, clearances 
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and other official papers or documents 
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SEC. 4. Covered IIIStitutiolls I Establishmellts. - All government agencies and 
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instrumentalities, including government-owned andlor controlled corporations (GOCCs), and 
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all Local Govemment Units (LGUs) shall use security water-marked paper \\~th authorized 
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security features in all receipts, invoices, forms, permits, licenses, clearances, official papers 
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and documents which they issue to all natural and juridical persons transacting business with 
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them. 
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SEC. 5. Procedure Jar Prilltillg of Security Watermarked Paper. - The Bangko 
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Sentral ng Pilipinas (BSP), through its Banknotes and Security Printing Depattment (BSPD); 
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or the National Printing Office (NPO), in coordination with said government agencies and 
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instrumentalities, GOCCs· and LGUs, shall develop procedures such that receipts, invoices, 
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forms, permits, licenses, clearance, and other official documents, whenever applicable and 
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possible, shall be printed on security water-mat'ked paper, the sizes and forms of which shall 
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be uniform. 
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SEC. 6. Size alld Form of Security Watermarked Paper. - The Department of 
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Finance (DOF), and National Printing Office (NPO), shall prescribe and fOlmulate within a 
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period of two (2) months from the effectivity of this Act, the appropriate uniform size and 
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forms of security paper to be used for all transactions of all government agencies and 
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instrumentalities, including GOCCs and all LGUs. 
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SEC. 7. Covered Form. - All receipts, invoices, permits, licenses, clearances, and all 
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other official documents of all government agencies, instrumentalities, GOCCs and LGUs 
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shall, after a period of six (6) months from the effectivity of this Act, be printed in security 
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paper made of water-marked security paper: Provided, that any such receipts, invoices, 
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commercial documents, permits, licenses, clearances, and all other official documents which 
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remain unused and wlconsumed after the lapse of said six-month period may still be used; 
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Provided jiJrther, that appropriate inventory thereof as confirmed and approved by the DOF 
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is conducted; and Provided finally, that after six (6) months thereafter, the said unnsed 
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receipts, invoices, permits, licenses, and clearances shall no longer be allowed for use i.n any 
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transaction in the Phili ppines. 
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SEC. 8. Pellalty. - Any person who fails to comply with the requirements oftbis Act, 
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including the parties involved in a transaction where the use of security paper made of water-
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marked security paper is prescribed, as well as any government functionary involved in the 
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monitoring of regulating tbese transactions, shall be subject to all the appropriate sanctions 
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and penalties provided for in the National Internal Revenue Code and other pertinent laws, 
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rules and regulations. 
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SEC. 9. Implemellting Rilles alld Regulatiolls (lRR). - The Secretrny of the DOF. 
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and the Director of the NPO, shall promulgate appropriate rules and regulations, including 
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the identification and setting of the standards upon which the security paper shall be sourced 
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and supplied and such other details as would be necessruy and appropriate for the effective 
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implementation of this Act. 
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SEC. 10. Sepal"ability Clause. - If. for any reason, any provision of this Act is 
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declared unconstitutional or invalid, the remainder or any provisions hereof not affected 
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thereby shall remain in force and effect. 
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SEC. 11. Repealing Clause. -
The provlslOns of any law, executive orders, 
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presidential decrees or other issuances inconsistent with this Act are hereby repealed or 
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modified accordingly. 
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SEC. 12. EffectMty. - This Act shall take effect fifteen (15) days after its complete 
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publication in the Official Gazette or in at least two (2) newspapers of general circulation, 
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whichever comes earlier. 
Approved, 
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