AMENDING SECTIONS 216 AND 220-A OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, TO INCREASE THE VALUE OF THE MERCHANDISE OR SERVICE RENDERED WHERE ISSUANCE OF INVOICES OR REC…

WHEREAS, the present law in Sec. 216 of the
National internal Revenue Code, requires the issuance of sales invoices and
receipts for merchandise or services worth five pesos (P5.00) or more, subject
to the imposition of fine and imprisonment in case of violation, under Sec.
220-A thereof;

WHEREAS, considering the depreciation of the
currency, said requirement has now become obsolete coupled with the fact that
the penalty prescribed is quite stiff;

WHEREAS, in order to encourage cooperation of
taxpayers thru voluntary tax compliance, it is deemed fit and proper to change
the present requirement so as to increase the mandatory amount to a more
realistic level as well as to modify the existing penalties for violation;

NOW, THEREFORE, I, FERDINAND E. MARCOS,
President of the Philippines, by virtue of the powers vested in me by
the Constitution, do hereby order and decree the following:

SECTION 1. Section 216 of the National
Internal Revenue Code is amended to read as follows:

“SEC. 216. Persons subject to tax to issue
receipts or sales or commercial invoices; contents of registered receipts or
invoices.—All persons subject to an internal revenue tax shall, for each sale or
transfer of merchandise or for services rendered valued at twenty five pesos or
more, issue duly registered receipts or sales or commercial invoices, prepared
at least in duplicate, showing the date of transaction, quantity, unit cost and
description of merchandise or nature of service; Provided, that in the case of
sales, receipts of transfers in the amount of one hundred pesos or more, or
regardless of amount, where the sale or transfer is made by producers,
manufacturers, importers, wholesalers, or, where the receipt is issued to cover
payment made as rentals, commissions, compensations or fees, the receipts or
invoices shall further show the name, business style, if any, and address of the
purchaser, customer, or client. The original of each receipt or invoice shall be
issued to the purchaser, customer or client at the time the transaction is
effected, who, if engaged in business or in the exercise of profession, shall
keep and preserve the same in his place of business for a period of five years
from the date of the invoice or receipt, while the duplicate shall be kept and
preserved by the issuer, also in his place of business, for a like period:
Provided, that persons subject to tax, whose gross sales, earnings or receipts
during the last preceding year exceed thirty thousand pesos shall, for each sale
or transaction, issue a receipt or an invoice, irrespective of the value of the
article sold or service rendered.

The Commissioner of Internal Revenue may, in meritorious cases,
exempt any person subject to an internal revenue tax from compliance with the
provisions of this section. In any event, market vendors selling exclusively
domestic meat, fruits, vegetables, games, poultry, fish and other food products
are hereby exempted from the provisions of this section.

The provisions of this section, together with the penal
provisions in Presidential Decree No. 1254, shall be posted in a prominent place
in the establishment covered by the requirement thereof.”
SEC. 2. Section
220-A of the National Internal Revenue Code is amended to read as follows:

“SEC. 220-A. Failure or refusal to issue
receipts or sales or commercial invoices; violations related to the printing of
such receipts or invoices and other violations..-Any person who, being required
under Section 216 to issue receipts or sales or commercial invoices, fails or
refuses to issue such receipts or invoices, issues receipts or invoices that do
not truly reflect and/or contain all the information required to be shown
therein possesses or uses unregistered receipts or invoices,’ possesses or uses
multiple or double receipts or invoices shall be penalized as
follows:

1. For the First Offense-A fine of not less than one thousand pesos but not
   more than two thousand pesos or imprisonment of not more than six months;
2. For the Second Offense—A fine of not less than two thousand pesos but not
   more than three thousand pesos or imprisonment of not less than six months but
   not more than three years;

3. For Subsequent Offenses—A fine of not less than three thousand pesos nor
   more than six thousand pesos or imprisonment of not less than three years but
   not more than six years, and cancellation of license to do business.

The criminal liability arising from third and subsequent offenses
cannot be compromised.

“Any person who commits any of the acts enumerated hereunder
shall be penalized in the same manner and to the same extent as provided for in
this Section:

“1. Prints, causes, aids or abets the printing of receipts or
sales or commercial invoices without authority from the Bureau of Internal
Revenue;
“2. Prints, causes, aids or abets the printing of double or multiple
sets of invoices or receipts;

“3. Prints, causes, aids, or abets the printing of unnumbered
receipts or sales or commercial invoices or not bearing the name, business
style, taxpayer account number, and business address of the person or entity to
use the same;

“4. Fails to submit the quarterly report required in Section
216-A.

IN THE CASE OF THIRD AND SUBSEQUENT OFFENSES,
if the offender is not a citizen of the Philippines, he shall be deported
immediately after serving the sentence without further proceedings for
deportation. If he is a public officer or employee, he shall, in addition to the
penalties prescribed herein, be dismissed from the public service and
perpetually disqualified from holding any public office. In the case of
associations, partnerships, or corporations, the penalty shall be imposed upon
its partners, president, general-manager, branch manager and/or office-in-charge
as well as the employee responsible for the violation.

“In any case, the employer shall be liable for the act or
omission of the employee.

“ A professional found guilty of any of the violations
penalized
under the provisions of this Section shall, aside from being meted
the penalties therein imposed, be reported to the Professional Regulation
Commission or the proper regulatory body for disciplinary action which may
include suspension or absolute revocation of his license to practice his
profession.”

SEC. 3. All laws, rules and regulations
inconsistent herewith are hereby repealed or amended accordingly.

SEC. 4. This law shall take effect
immediately.

Done in the City of Manila, this 27th day of June in the Year
of Our Lord, nineteen hundred and eighty-four.