c. Compromise Penalty

Compromise Penalties

Compromise penalties may be offered for covered criminal violations of the NIRC not involving commission of fraudulent act, subject to the taxpayer’s agreement; they are not automatically imposed or collectible as a tax liability without that agreement.

Violations which are commonly resorted to by taxpayers as means of tax evasion are deleted from the coverage of compromise penalties, for having met the requirements of the definition of fraudulent acts. (RMO No. 07-15)¹