House approves bill imposing stiffer penalties, jail time for tax offenders

The House of Representatives on Monday unanimously approved on third and final reading a bill increasing the fine and jail time for deliberate attempts to evade or defeat any tax imposed under the Tax Code.

House Bill 8144 or An Act Defining the Crime of Tax Racketeering got the nod of 276 lawmakers.

The bill puts the fine at P5 million to P10 million and six to 10 years' imprisonment for the following offenses: acts of distributing, acquiring, using, or aiding in the use of unauthorized, fake, or falsified revenue official receipts, sales invoices, commercial invoices, Letters of Authority, certificates authorizing registration, Tax Credit Certificates, Tax Debit Memoranda and other accountable forms as punishable under Section 257 of the Tax Code.

The said penalties are significantly higher than the existing P50,000 to P100,000 fine and two to six years of jail time under the existing law.

“This will restore public credibility and reliance on official receipts or invoices issued by the Republic of the Philippines and remind the public that official receipts and invoices are principal pieces of evidence for consummated transactions and are essential part of tax compliance in the country,” the Committee report on the measure read.

The bill defines tax racketeering as any coordinated scheme or operation to evade or defeat any tax imposed under the Tax Code through the fraudulent use of receipts, returns, and other records, with a minimum amount of P10 million in taxes avoided.

In addition, the bill imposes the following penalties upon conviction for tax racketeering commensurate to the degree of participation in the crime:

• 17 to 20 year-jail time for principals
• 10 to 17 year-jail time for accomplices and
• six to 10 year -jail time for accessories

Likewise, the bill provides for the automatic revocation or cancellation of license to practice and certificate of registration if the offender is a Certified Public Accountant.

Ultimately, the bill provides that public officials who aid and abet the commission of tax racketeering shall be charged as accomplices and suffer the penalty of perpetual disqualification from any public office. —VAL, GMA Integrated News