In the realm of Philippine commerce, the integrity of documentation is the bedrock of trust and state regulation. Falsifying commercial documents—specifically sales invoices and receipts—is not merely a private wrong; it is a criminal offense that strikes at the heart of the country’s economic and tax systems.
Under Philippine law, these acts are primarily governed by the Revised Penal Code (RPC) and the National Internal Revenue Code (NIRC), as amended by the TRAIN Law and the CREATE Act.
I. Criminal Liability under the Revised Penal Code
The Revised Penal Code categorizes the falsification of commercial documents under Article 172 in relation to Article 171.
1. What constitutes Falsification?
A person commits falsification by performing any of the following acts on a document:
- Counterfeiting or imitating any handwriting, signature, or rubric.
- Causing it to appear that persons have participated in any act or proceeding when they did not in fact so participate.
- Attributing to persons statements other than those in fact made by them.
- Making untruthful statements in a narration of facts.
- Altering true dates.
- Making any alteration or intercalation in a genuine document which changes its meaning.
2. Classification of Documents
A Sales Invoice or Official Receipt is legally classified as a commercial document because it is defined by the Code of Commerce or used to evidence commercial transactions.
3. Penalties
Under Article 172, any private individual who commits any of the acts of falsification in a commercial document shall suffer the penalty of:
- Prisión correccional in its medium and maximum periods (2 years, 4 months, and 1 day to 6 years).
- A fine of not more than ₱1,000,000.
II. Tax Crimes under the National Internal Revenue Code (NIRC)
Beyond the Penal Code, the Bureau of Internal Revenue (BIR) strictly monitors invoices. Falsifying these documents is often a method for Tax Evasion.
1. Sections 264 and 265 of the Tax Code
The law penalizes those who:
- Issue receipts or invoices that are "fake" (not authorized by the BIR).
- Possess or use "ghost" invoices (receipts for non-existent transactions used to inflate deductible expenses).
- Print protective or unauthorized receipts.
2. Enhanced Penalties (Section 264-A)
With the recent focus on "Ghost Receipts," the government has increased the severity of penalties for those found printing or using fraudulent invoices:
- Imprisonment: Not less than 6 years and 1 day but not more than 10 years.
- Fine: Not less than ₱500,000 but not more than ₱10,000,000.
If the falsification results in an underpayment of taxes exceeding ₱50,000,000, the offense may be considered Tax Evasion, which carries even heavier penalties and is often prosecuted as a separate criminal charge from the act of falsification itself.
III. Civil Liability and Administrative Sanctions
In addition to jail time and criminal fines, offenders face:
- Surcharges: A 50% surcharge on the tax due is imposed in cases of "willful neglect" or "fraudulent intent."
- Interest: Deficiency interest on the unpaid tax amount.
- Closure of Business: Under the BIR’s "Oplan Kandado" program, business establishments found issuing fraudulent receipts or failing to issue legitimate ones can be temporarily shut down for at least 5 days or until compliance is met.
- Professional Repercussions: If a Certified Public Accountant (CPA) is involved in the falsification, their license can be revoked by the Professional Regulation Commission (PRC).
IV. Summary of Penalties
| Legal Basis | Offense Type | Maximum Prison Term | Maximum Fine |
|---|---|---|---|
| Revised Penal Code (Art. 172) | Falsification of Commercial Document | Up to 6 years | ₱1,000,000 |
| Tax Code (NIRC) | Issuance/Use of Fake Invoices | Up to 10 years | ₱10,000,000 |
| Tax Code (NIRC) | Tax Evasion (via Fraud) | Up to 10 years | Varies (plus 50% surcharge) |
V. Crucial Distinctions
It is important to note that good faith is generally not a defense when the act involves the use of a falsified document in a commercial setting. The mere act of introducing a falsified invoice into a company's accounting books is often enough to establish a prima facie case of use of falsified documents.
For corporations, the penalty is usually imposed upon the responsible officers—such as the President, General Manager, or the Treasurer—who knowingly permitted or participated in the falsification.