23. On deeds of sale, conveyance, and donation
of real property ............................................................... 429 24. On charter parties and similar instruments ...................... 432 25. On assignments and renewals of certain instruments .................................................................... 433 26. Documents and papers not subject to tax ........................... 433
Chapter 6. — STATUTORY OFFENSES AND PENALTIES A. ADDITIONS TO THE TAX
1. General provisions................................................................ 438 2. Civil penalties....................................................................... 438 3. Definition and nature of surcharge ..................................... 439 4. Cu mulative surcharges ........................................................ 441 5. Existence of fraud................................................................. 441 6. Prima facie evidence of a false or fraudulent return .......... 441 7. Constitutionality of the 50% fraud penalty ........................ 442 8. Interest.................................................................................. 442 9. Definition of delinquency and deficiency............................. 444 10. Computation of deficiency interest...................................... 444 11. Computation of delinquency interest .................................. 445 12. Computation of interest on extended payment .................. 447 13. Payment of surcharge, interest, and compromise penalty ....................................................... 448 14. Waiver by Commissioner of penalties for late payment not allowed ......................................... 449 15. Failure to file certain information returns ......................... 449 16. Failure of a withholding agent to withhold and remit tax .................................................................. 450 17. Failure of a withholding agent to refund excess withholding tax ................................................... 450 18. Withholding by government offices or agencies of internal revenue taxes ................................ 450 19. Subsidiary penalty ............................................................... 451
THE LAW ON TRANSFER AND BUSINESS TAXATION
4. Accrual of DST...................................................................... 404 5. Time of payment................................................................... 405 6. Plac e of payment .................................................................. 406 7. Transactions effected and consummated outside the Philippines ............................................................... 406 8. Basis of liability .................................................................... 406 9. Persons liable........................................................................ 407
B. RETURNS, PAYMENT OF THE TAXES, AND SANCTIONS
1. Filing of return and payment of tax .................................... 408 2. Effect of failure to stamp taxable document ....................... 410 3. Offenses relating to documentary stamps .......................... 410 C. RATES AND BASES OF THE TAXES 1. On original issue of shares of stock ..................................... 411 2. On sales, agreements to sell, etc. of shares or certificates of stock .................................................... 414 3. On bonds, debentures, certificates of stock or indebtedness issued in foreign countries ...................... 415 4. On certificates of profits or interest in property or accumulations ........................................ 416 5. On bank checks, drafts, etc.................................................. 417 6. On all debts instruments ..................................................... 417 7. On all bills of exchange or drafts......................................... 419 8. Upon acceptance or payment of bill of exchange and others .................................................. 419 9. On foreign bills of exchange and letters of credit ............... 420 10. On life insurance policies ..................................................... 421 11. On policies of insurance upon property............................... 422 12. On fidelity bonds and other insurance policies................... 423 13. On policies of annuities and pre-need plans ....................... 424 14. On indemnity bonds ............................................................. 424 15. On certificates....................................................................... 425 16. On warehouse receipts ......................................................... 426 17. On jai-alai or horse race tickets, lotto, or other number games ...................................................... 426 18. On bills of lading or receipts ................................................ 426 19. On proxies ............................................................................. 427 20. On powers of attorney .......................................................... 427 21. On leases and other hiring agreements .............................. 428 22. On mortgages, pledges, and deeds of trust ......................... 428
B. CRIMES, OTHER OFFENSES, AND FORFEITURES
xxi 5. Making false entries, records, or reports ............................ 454 6. Unlawful pursuit of business............................................... 455 7. Failure or refusal to issue receipts or sales or commercial invoices, violations related to the printing of such receipts or invoices and other violations ....................................................................... 456 1. General provisions................................................................ 452 2. Attempt to evade or defeat tax ............................................ 453 3. Failure to file return, etc...................................................... 453 4. Penal liability of corporations, associations, or general co-partnerships............................................. 453 8. Failure to transmit sales data ............................................ 456 9. Sales suppression devices ................................................... 457 10. Failure to obey summons ..................................................... 457 11. Declaration under penalties of perjury ............................... 458 12. Violations committed by government enforcement officers..................................................... 458 13. Unlawful divulgence of trade secrets .................................. 459 14. Procuring unlawful divulgence of trade secrets ................. 462 15. Confiscation and forfeiture of proceeds or instruments of crime ................................................. 463 16. Where no specific penalty is provided ................................. 463
Chapter 7. — COMPLIANCE REQUIREMENTS A. BOOKKEEPING REGULATIONS
1. Meaning of bookkeeping; bookkeeper.................................. 464 2. Meaning of accounting; accountant..................................... 464 3. Other terms defined ............................................................. 464 4. Persons required/not required to keep books of accounts .. 465 5. Purpose of requirement to keep books of accounts............. 466 6. Books and records that may be kept ................................... 466 7. Journals and their equivalents............................................ 467 8. Contents and form of journal............................................... 468 9. Ledgers and their equivalents ............................................. 468 10. Contents and form of ledger ................................................ 468 11. Records of receipts and disbursements ............................... 469 12. Records of inventories .......................................................... 469 13. Vouchers for transaction...................................................... 469 14. Financial statements............................................................ 470 15. Form and manner of issuance of invoices and receipts .................................................................... 472 16. Failure or refusal to issue receipts or invoices and other violations .................................... 473 17. Requirements as to recording of entries ............................. 474 18. Use of subsidiary books........................................................ 474 19. Registration and approval ................................................... 474 20. Registration of manual books of accounts........................... 476
23. On deeds of sale, conveyance, and donation
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of real property ............................................................... 429 24. On charter parties and similar instruments ...................... 432 25. On assignments and renewals of certain instruments .................................................................... 433 26. Documents and papers not subject to tax ........................... 433
Chapter 6. — STATUTORY OFFENSES AND PENALTIES A. ADDITIONS TO THE TAX
1. General provisions................................................................ 438 2. Civil penalties....................................................................... 438 3. Definition and nature of surcharge ..................................... 439 4. Cu mulative surcharges ........................................................ 441 5. Existence of fraud................................................................. 441 6. Prima facie evidence of a false or fraudulent return .......... 441 7. Constitutionality of the 50% fraud penalty ........................ 442 8. Interest.................................................................................. 442 9. Definition of delinquency and deficiency............................. 444 10. Computation of deficiency interest...................................... 444 11. Computation of delinquency interest .................................. 445 12. Computation of interest on extended payment .................. 447 13. Payment of surcharge, interest, and compromise penalty ....................................................... 448 14. Waiver by Commissioner of penalties for late payment not allowed ......................................... 449 15. Failure to file certain information returns ......................... 449 16. Failure of a withholding agent to withhold and remit tax .................................................................. 450
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