BIR Ruling

March 23, 1970 Burroughs, Limited P. O. Box 2769 Manila Attention: Mr . Romeon S . Inocencio Chief Accountant Gentlemen : This refers to your letter dated January 29, 1970 requesting permission to adopt a monthly accounting period as outlined in the attached sheet from 1970 to 1972 which will be used as your basis for computing the monthly percentage sales taxes instead of on calendar month basis. In reply, I have the honor to inform you that under Section 183(a) of the Tax Code, as amended by Republic Act No. 6110, a taxpayer conducting a business on which a percentage tax in imposed is required to make a true and complete return of the amount of his/her or its gross monthly sales, receipts or earnings and within twenty days after the end of each month, pay the tax due thereon. In other words, the taxpayer must declare in his percentage tax return, the sales, receipts or earnings realized by him from the first to the last day of every month. Such declaration shall be the basis of the percentage tax due from him which shall be paid within twenty days after the end of the month. It appears that your proposed monthly accounting period covers a varying number of weeks and that the same does not begin from the first to the last day of the month. Hence, if the monthly accounting period proposed by you is followed for percentage tax purposes, the declarations in your percentage tax returns will not be in accordance with Section 183(a) of the Tax Code. In view thereof, your request has to be, as it is hereby, denied for lack of legal basis. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue