The Bureau of Internal Revenue called on business establishments and persons subject to internal revenue tax to issue duly registered receipts, sales or commercial invoices for each sale or transfer of merchandize or services, worth P25 or more.

Non-issuance of BIR-registered receipts is a violation punishable under Section 238 (now Section 237) of the 1997 Tax Code, as amended. Consistent with its mandate, the Regional Office of the BIR Bacolod City had already imposed fines and penalties against establishments found committing such kind of violation, the latest of which was imposed on a carwash service center in Bacolod City, a press release from the BIR said.

For first violation, the minimum imposable penalty is P10,000; and P20,000 for the second violation. Non-issuance of VAT-registered receipts is one of the grounds for suspending or closing the business operation, pursuant to the “Oplan Kandado” Program of the BIR.

The Bureau cited the case of Pelagio Vidal of Dumaguete City, who was found guilty of non-issuance of BIR-registered receipts by the Municipal Trial Court in Cities Brach 1 in Dumaguete City in 2009. The decision was affirmed by the Regional Trial Court of Negros Oriental, Branch 40, also in Dumaguete, on March 19, 2010 and July 12, 2010, and affirmed by the Court of Appeals Special 18th Division in Cebu City in a decision promulgated April 25, 2014.

BIR OIC regional director Myrna Leonida said that Vidal’s conviction should serve as a stern warning against similarly-inclined taxpayers, to comply with all tax laws, and not to wait for the BIR to do it for them, the press release added.*

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