FABIAN & ASSOCIATES, CPAs

CERTIFIED PUBLIC ACCOUNTANTS

Seminar on
Tax Reform for Acceleration
and Inclusion (TRAIN)
(Republic Act 10963)

January 31, 2018

Pinnacle Hotel, Davao City
Keeping of books of accounts
• All corporations, companies, partnerships and persons required
to pay internal revenue taxes shall keep appropriate
bookkeeping records.
• Books of accounts with gross annual sales, earnings, receipts
or output exceeding P3,000,000 (from P150,000) must be
audited by a CPA.

FABIAN & ASSOCIATES, CPAs

CERTIFIED PUBLIC ACCOUNTANTS
Issuance of receipts or
sales/commercial invoices
• Sales valued at P100.00 or more (from P25.00) shall be
issued duly registered receipts and/or invoices.
• Within five years from the effectivity of the Act, the
following taxpayers are required to issue electronic
receipts or invoices:
 Those engaged in the export
 Those engaged in E-commerce
 Those under Large Taxpayers Service

FABIAN & ASSOCIATES, CPAs

CERTIFIED PUBLIC ACCOUNTANTS
Issuance of receipts or
sales/commercial invoices
• Within five years from the effectivity of the Act, the
following taxpayers are required to electronically report
their sales data to the BIR through the use of electronic
point of sales system:
 Those engaged in export
 Those under Large Taxpayers Service
• Digital records must be kept in the place of business for
3 years

FABIAN & ASSOCIATES, CPAs

CERTIFIED PUBLIC ACCOUNTANTS
Interest
• Interest imposed shall be double the legal interest rate
for loans or forbearance of any money in the absence of
express stipulation as set by BSP.
• Delinquency and deficiency interest shall in no case be
imposed simultaneously

FABIAN & ASSOCIATES, CPAs

CERTIFIED PUBLIC ACCOUNTANTS
Penalty Provisions – Tax Evasion
Penalties: Fine of not less than
P30,000 but not more than
P100,000 and imprisonment of not
less than two years but not more
than four years. (Sec. 254)
Penalties: Fine of not less
than P500,000 but not more
than P10,000,000 and
imprisonment of not less than
6 years but not more than 10
years.
FABIAN & ASSOCIATES, CPAs
CERTIFIED PUBLIC ACCOUNTANTS
Penalty Provisions – Invoicing

Violations: Additional Violation: Printing of

fraudulent receipts and invoices
1. No ATP
Penalties:
2. Multiple sets of invoices or receipts; or
Fine of not less than
3. Incomplete taxpayers information
P500,000 but not more than
P10,000,000 and
Penalties: Fine of not less than P1,000
imprisonment of not less than
but not more than P50,000 and
6 years but not more than 10
imprisonment of not less than two years
years.
but not more than four years.
FABIAN & ASSOCIATES, CPAs
CERTIFIED PUBLIC ACCOUNTANTS
Penalty Provisions - Esales
• Failure to file esale shall be subject to the following:
– 1% of annual income/day or P10,000 whichever is higher.
– If the aggregate number of days exceeds 180, the penalty
shall include permanent closure

FABIAN & ASSOCIATES, CPAs

CERTIFIED PUBLIC ACCOUNTANTS
Penalty Provisions – Sales Suppression Device
• Sale, use possession of sales suppression device:
– Fine of not less than P500,000 but not more than
P10M AND imprisonment of not less than 2 years but
not more than 4 years.
– Cumulative suppression exceeding 50m, maximum
penalty

FABIAN & ASSOCIATES, CPAs

CERTIFIED PUBLIC ACCOUNTANTS
Penalty Provisions – Fuel Marking
Violations: Penalties:
- Sale of unmarked fuel in commercial 1st offense: P2.5m
quantity held for domestic use • 2nd offense: P5m
- Removal of the official fuel marking • 3rd offense: P10m and
agent from marked fuel revocation of license to
- Adulteration or dilution of fuel intended engage in any trade or
for sale to the business
domestic market
- Knowing possession, storage, transfer or
offer for sale the items specified above

FABIAN & ASSOCIATES, CPAs

CERTIFIED PUBLIC ACCOUNTANTS