BIR Ruling

February 21, 1967 The Insular Hotel Corporation Great Eastern Hotel Manila Attention: Miss Natividad J . Mallari Accountant Gentlemen : This refers to your letter dated February 16, 1967 requesting a certification to the effect that establishments engaged in hotel, restaurant, refreshment, bar and printing press business are exempted from filing the yearly inventories as prescribed by the Bookkeeping Regulations. In reply, I have the honor to inform you that establishments engaged in hotel, restaurant, refreshment, bar and printing press business are subject to the business percentage tax under Section 191 of the Tax Code. Consequently, such establishments are required to file the yearly inventories prescribed in Section 13 of Revenue Regulations No. V-1, as amended otherwise known as the Bookkeeping Regulations, which provides as follows: SEC. 13. RECORDS OF INVENTORIES : Persons required by law to pay internal revenue taxes on business shall keep, in addition to the other books and records prescribed in these regulations, a books of inventories, in which they shall record in detail the quantity, description, unit and total cost of every item of their stocks-in-trade, materials, supplies and other goods found in the premises of their establishments at the time they start business and at the close of the calendar year or accounting period. The inventory at the beginning shall be made and submitted to the Commissioner of Internal Revenue, if the place of business is in Manila, or to the deputy provincial or city treasurer, (now Collection Agent, with the Office of Revenue District Officer or Revenue Director) if in a municipality or city, within ten days after securing the privilege tax-receipts or starting the business, and the subsequent inventories not latter than thirty days after the close of the calendar year or accounting period. This period may, in meritorious cases, be extended by the Commissioner of Internal Revenue." Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue