Section 7. Penalties for Noncompliance with Filing and Reportorial Requirements. — Any registered business entity which fails to comply with filing and reportorial requirements with the appropriate IPAs and/or which fails to show proof of filing of tax returns using the electronic system for filing and payment of taxes of the BIB shall be imposed the following penalties:

1. First (1st) violation — payment of a fine amounting to one hundred thousand pesos (P100,000.00);

2. Second (2nd) violation — payment of a fine amounting to five hundred thousand pesos (P500,000.00); and

3. Third (3rd) violation — cancellation of the registration of the registered business entity.

Provided, That if the failure to show such proof is not due to the fault of the registered business entity, the same shall not be a ground for the suspension of the ITH and/or other income-based tax incentives availment.

Any government official or employee who fails without justifiable reason to provide or furnish the required tax incentives report or other data or information as required under this Act shall be penalized, after due process, by a fine equivalent to the official’s or employee’s basic salary for a period of one (1) month to six (6) months or by suspension from government service for not more than one (1) year, or both, in addition to any criminal and administrative penalties imposable under existing laws.