BIR Ruling

November 27, 1967 The Federation of Filipino-Chinese Chambers of Commerce, Inc. 3rd Floor, Choy Bldg. 303 Dasmarias St., Manila Attention: Mr . Ralph Nubla President Gentlemen : This refers to your letter dated November 24, 1967 stating the following: "I have the honor to request the favor of your valued opinion on whether or not the submission of the list of inventory within thirty (30) days after the end of the accounting period constitutes sufficient compliance with the requirements of Section 13 of the Bookkeeping regulations, particularly with respect to the book of inventories mentioned therein. LexLib "This request is rendered necessary by reports our Office has received that Mr. Uriel P. Meneses, Acting Assistant Regional Director of Revenue Region No. 7, has sent out circular letters to commercial establishment within said Region, requiring them to submit to his Office the book of inventories required under the provisions of Sections 13 and 19 of the Bookkeeping Regulations." In reply thereto, I have the honor to inform you that under Section 13 of Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations, persons required by law to pay internal revenue taxes on business shall keep, in addition to the other books and records prescribed in the regulations, a book 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. However, where a taxpayer keeps a compilation of the copies of inventories submitted to this Bureau bearing stamp evidencing receipt of the original, this Office believes as it hereby holds that the compilation of said copies of the inventories constitutes substantial compliance with the requirements of Section 13 of the Bookkeeping Regulations. Very truly yours, (SGD.) AMBROSIO M. LINA Acting Commissioner of Internal Revenue