BIR Ruling

August 19, 1970 Mr. Artemio A. Pascual 3350 Third St., Sampaloc Manila S i r : This refers to your letter dated March 30, 1970 requesting information as to whether or not revenue examiners are still allowed to conduct examination of books of accounts and other records of taxpayers on a piece-meal basis. In reply, I have the honor to inform you that the past practice of multiple examination (piece-meal basis) of books of accounts and other records for tax purposes by revenue examiners has been eliminated by Republic Act No. 6110. Pursuant to Section 337 of the Tax Code, as amended by Republic Act No. 6110, all books of accounts, including the subsidiary books, and other accounting records, of corporations, partnerships or persons shall be subject to examination and inspection only once in a taxable year during the five-year period by internal revenue officers, except in cases of fraud, irregularity or mistake as determined by the revenue regional director or unless the taxpayer requests otherwise. Accordingly, a taxpayer will be investigated only once a year for taxes due instead of every six months for business taxes and other taxes depending on the business he is engaged in, except in cases of fraud, irregularity or mistake, or when so requested by the taxpayer, in which case, another examination and inspection may be made. cdti As regards the revenue rules and regulations implementing the Omnibus Tax Law relative to examination of books of accounts and other records for tax purposes which will be adopted under the so-called package audit system, promulgation of said rules and regulations is still under preparation by this Office. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue