BIR Ruling

February 16, 1976 Mrs. Rosa Joves 435 H. Lopez Blvd. Tondo, Manila M a d a m : This refers to your letter dated December 12, 1975 requesting information as to whether the following Statement of Operations and Networth which you have attached to your income tax return is in compliance with the requirements of Revenue Regulations No. V-1, as amended, to wit: cdta "STATEMENT OF OPERATIONS & NETWORTH For the year ending Dec. 31, 1974 Sales P9,315.60 Less Cost of Sales: Mdse. Inventory, 12/31/73 P4,181.90 Add purchases P3,918.45 Total merchandise handled P8,100.35 Mdse. Inventory 12/31/74 182.00 P7,918.35 Gross Profit P1,397.25 Less Expenses: Stall rent P438.00 Taxes 20.00 P458.00 Net Profit P939.25 Add Rosa Joves Networth, 12/31/73 P4,500.00 P5,439.25 Less Rosa Joves withdrawal 3,000.00 P2,439.25" ========= In reply, I have the honor to inform you that considering that your income for a quarter does not exceed P5,000.00, the above statement of operations and networth which you have attached to your income tax return for purposes of the requirements of Section 6 of Revenue Regulations No. V-1, as amended, otherwise known as the Bookkeeping Regulations is a sufficient compliance thereof. "A taxpayer whose income does not exceed P5,000.00 a quarter need not file with his income tax return a balance sheet and profit and loss statement. However, he should file a statement of networth operations, pursuant to Section 6 of the Bookkeeping Regulations, amended". (BIR Ruling No. 449, S. 1969) cdtech Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."