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WHEREAS, the non-issuance of receipts or sales or commercial invoices, the possession or use of unregistered invoices or receipts, the possession or use of double or multiple sets of invoices or receipts and the unauthorized printing of such invoices or receipts result in underdeclaration of sales, receipts or income and consequently in the loss of substantial revenue to the government;

WHEREAS, these pernicious practices have become rampant and remain unabated partly because the existing penalties prescribed therefor are very light;

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. The National Internal Revenue Code as amended is hereby further amended by adding a new section to be known as Section 220-A to read as follows:

"SECTION 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:

"a. For the First Offense—A fine of not more than two hundred pesos and imprisonment of not more than six months;

"b. For the Second Offense—A fine of not less than two hundred pesos but not more than three thousand pesos and imprisonment of not less than six months but not mere than three years;

"c. For Subsequent Offenses—A fine of not less than three thousand pesos nor more than six thousand pesos and 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 second 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.

"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 officer-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 herein 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."

SECTION 2. All existing laws, rules and regulations which are inconsistent herewith are hereby repealed or amended accordingly.

SECTION 3. This Decree shall take effect immediately.

Done in the City of Manila, this 28th day of November, in the year of Our Lord, nineteen hundred and seventy-seven.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Assistant