BUREAU OF INTERNAL REVENUE
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 100-2017, 18 December 2017, clarifying the sanctions for the non-submission of Alphabetical List (Alpha-list) of Employees/Payees of Income Payments.
Failure to file the Alpha-list of Payees/Employees or failure to re-submit the complete and corrected Alpha-list after the validation process conducted by the BIR will not result to the non-deductibility of expenses considering that the taxes corresponding thereto were already withheld and remitted.
However, failure/non-filing or the failure to submit the complete or corrected one is a violation of the Tax Code and existing issuances. A compromise penalty of Php1,000.00 shall be imposed for each failure to make, file, or submit the said information return but not to exceed Php25,000.00 during the calendar year.
Payment of the compromise penalty will not relieve the withholding agent from the submission of the required Alpha-list or the complete or corrected Alpha-list.
Full text of the issuance is attached for reference.