The full implementation of Revenue Regulation No. 18-2012 requiring the issuance and used of new sets of receipts on July 1, 2013 shall proceed as scheduled. Commissioner of Internal Revenue Kim S. Jacinto-Henares said, “The complaints against the new regulations are without any basis since the tax agency had issued Revenue Regulations (RR) No. 18-2012 last year and published the same in the January 3, 2013 issue of the Manila Bulletin informing everyone that existing receipts will expire on June 30, 2013. We believe that six months is enough preparation for everyone to comply with such requirement.”

RR No. 18-2012, published on January 3, 2013, provides among others that taxpayers must apply for the printing of their new receipts at least sixty (60) days (or April 30) before the expiry of their old receipts on June 30, 2013 and start issuing the same on July 1, 2013.

Commissioner Henares added that “the BIR issued Revenue Memorandum Order (RMO) No. 12-2013 on May 2, 2013 to provide for penalties since very few taxpayers were complying with the said regulations.”

The BIR said that taxpayers who apply for authority to print receipts beyond April 30, 2012 shall pay a penalty of P1,000.00. However, those who apply for said authority beyondJune 30, 2013 and/or on or before June 30, 2103 but failed to use the new sets of receipts starting July 1, 2013 shall pay the maximum penalty (of P50,000.00) as provided for in Section 264 of the Tax Code.

The tax agency gave the following rationale for the issuance of the regulations: 1) The BIR’s discovery of businesses registered with the tax agency that are not really engaged in any business except to sell invoices thereby defrauding the government of billions in tax revenues. These businesses sell their invoices to entities who are either engaged in smuggling and/or purchasing goods without receipts. When BIR looked for these companies, mostly Small and Medium Enterprises, they cannot be found; 2) The BIR’s finding that a lot of invoices that were printed in the ‘70s are still being used and the need to clean these up by providing an expiry period; and 3) The issuances are aimed at reforming the process of accrediting printers to address complaints against some BIR personnel engaged in the printing business who make it difficult for taxpayers to register and/or secure authority to print unless they get to print the receipts of said taxpayers. The regulations disqualify printers with relatives working in the BIR.