Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

Sig 291

House Bill No.

Introduced by HONORABLE DANILO E. SUAREZ

EXPLANATORY NOTE

An official receipt is essential in tax administration. It reflects the taxable sales of
commercial establishment to which the latter's tax dues will be based. It is an effective
instrument in verifying if the taxpayer is paying its/his/her tax accordance with existing laws and
regulations.

The issuance of an official receipt is a recognition of the consumer's right. As such,
consumers are always reminded to be vigilant in the protection of their rights by asking receipts
so that commercial establishments cannot escape its responsibility to issue receipts.

It has been eleven (11) years since the passage of the Tax Code, but there are no
amendments introduced for Section 264 of the NIRC. Section 264 penalizes establishments for
failure or refusal to issue receipts or sales or commercial invoices. It imposes a minimum fine of
Php 1,000 and the maximum fine of Php 50,000. At present, these penalties are negligible and
ineffective in deterring violators thereof. Although it is the most violated provision, only a few
cases have been prosecuted. Considering its impact on revenue collection, it is imperative to
give sharper teeth to this provision.

Passage of this measure is earnestly requested.

Chewy

DANILO E. SUAREZ
Representative
Third District, Province of Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

291

House Bill No.

Introduced by HONORABLE DANILO E. SUAREZ

AN ACT AMENDING SECTION 264 (a) OF THE NATIONAL INTERNAL REVENUE CODE OF
1997, AS AMENDED, AND PROVIDING PENALTIES THEREFOR

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 264 of the National Internal Revenue Code of 1997 is hereby
amended to read as follows:

SEC. 264. Failure or refusal to issue Receipts or Sales or
Commercial Invoices AND PROVIDING FOR PENALTIES
THEREOF, Violations related to the Printing of such Receipts or
Invoices and Other Violations.-

(a) Any person who, being required under Section 237 to issue receipts
or sales or commercial invoices, fails or refuses to issue such receipts
of invoices, issues receipts or invoices that do not reflect and/or
contain all the information required to be shown therein, or uses
‘multiple or double receipts or invoices, shall upon conviction for [each]
SUCH act or omission, be punished by a fine of not less than [One]
TWENTY thousand pesos [Php 1,000] Php 20,000 but not more than
[Fifty] ONE HUNDRED thousand pesos [Php 50,000] (Php 100,000)
and suffer imprisonment of not less than [two (2)] THREE years but
not_more than {four (4)] SIX years. PROVIDED THAT AN
ADDITIONAL PENALTY OF SUSPENSION OF BUSINESS
REGISTRATION FOR ONE (1) YEAR SHALL BE IMPOSED BY THE
CONCERNED GOVERNMENT AGENCY AND A MAXIMUM
PENALTY OF BUSINESS CLOSURE DISQUALIFYING THE
BUSINESS AND ITS OFFICERS FROM FURTHER ENGAGING IN
ANY BUSINESS SHALL BE IMPOSED FOR THE THIRD OFFENSE.
IN CASE OF CORPORATIONS, PARTNERSHIPS OR
ASSOCIATIONS, THE PENALTY SHALL BE IMPOSED ON THE ~
PRESIDENT, PARTNER, GENERAL MANAGER, BRANCH
MANAGER, —OFFICER-IN-CHARGE AND/OR EMPLOYEES.
RESPONSIBLE FOR THE VIOLATION.

THE SUSPENSION OF BUSINESS REGISTRATION SHALL STILL
APPLY IF DURING THE PERIOD OF SUSPENSION, ANOTHER
BUSINESS NAME HAVING THE SAME NATURE AND PURPOSE
HAS BEEN FORMED BY THE SAME PROPRIETOR,
RESPONSIBLE OFFICERS, _ OR PERSONS HAVING
CONTROLLING INTEREST IN THE SUSPENDED ENTITY.


THE RESPECTIVE GOVERNMENT AGENCIES SHALL
PERIODICALLY POST A LIST OF SUSPENDED ENTITIES AND ITS
RESPONSIBLE PERSONS OR OFFICERS AS WELL AS ENTITIES
WHICH HAVE BEEN CLOSED DUE TO VIOLATIONS OF THIS

SECTION.
xX X X X

SECTION 2. Separability Clause. -if any part of this Act is held invalid of
unconstitutional, the other parts or provisions thereof shall remain valid and effective.

SECTION 3. Repealing Clause. -All laws, decrees, executive orders, rules and
regulations and other issuance or parts thereof which are inconsistent with this Act are hereby
repealed or modified accordingly.

SECTION 4. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in any two (2) newspaper of general circulation, whichever date comes

earlier.