Computation of penalties for dishonored checks

To ensure that the correct amount of penalties are collected on dishonored checks, the Bureau of Internal Revenue (BIR) reiterated the policies and guidelines provided under Revenue Memorandum Order (RMO) 19-07 implementing the revised schedule of compromise penalties for strict compliance of its concerned officials and employees.

Under Section II (1) and (2) of RMO 19-07, the compromise penalties to be imposed on all cases of criminal violations of the National Internal Revenue Code (NIRC) not involving commission of fraudulent act should strictly follow the amounts in the revised schedule of compromise penalty prescribed under RMO 19-07. In no case should the compromise penalty differ in amount from those specified in the schedule of compromise penalty, except when duly approved by the Commissioner of Internal Revenue or concerned Deputy Commissioner, or in proper cases, by the Regional Directors.

The BIR also reminded its concerned officials and employees that Section 275 of the NIRC of 1997, as amended, provides that any person who violates any provision of the Code or any rule or regulation promulgated by the Department of Finance for which no specific penalty is provided by law shall, upon conviction for each act or omission, be punished by a fine of not more than P1,000 or suffer imprisonment of not more than six months, or both.

Revenue Memorandum Circular No. 31-2012, July 13, 2012

Tax Brief – August 2012

Punongbayan and Araullo