BIR Ruling

May 16, 1997 Atty. Arturo Pineda Antwel Bldg., Sta. Ana Davao City S i r : This refers to your letter dated January 24, 1992 filed on behalf of your client, MS. NORIE M. UY, requesting reconsideration of Assessment Notice Nos. FAN-1-88-91-00-1921 and FAN-4-88-91-00-1922, both dated May 15, 1991, involving her deficiency income and percentage taxes in the respective amounts of P26,928.10 and P14,421.97 for the year 1988, inclusive of surcharges and interest. cdpr The request is anchored on the contention that your client cannot be taxed for income earned as operator of carinderia/restaurant, considering that she had sold said restaurant to Juanita T. Geyrozaga on July 18, 1988, as evidenced by a Deed of Sale registered as Doc. No. 203, Page No. 41, Book No. XXVIII, Series of 1988 of the Notarial Register of Atty. Arturo T. Pineda. In reply, please be informed that the selling of the restaurant by Ms. Norie M. Uy on July 18, 1988 does not mean that her earnings from the said restaurant from January 1 to July 17, 1988, when she was still its owner and/or operator is no longer taxable. Records show that Ms. Norie M. Uy had gross sales for 1988 amounting to P186,550.00 from the operation of her carinderia, out of which she declared for income tax purposes for the said year gross profit amounting to P55,102.50 as shown by her income tax return for 1988. Therefore, we find no reason to disturb the finding that your client is liable to the assessed deficiency income and percentage taxes. In view thereof, your request for reconsideration is hereby denied. Consequently, you are requested to advise your client to pay the respective amounts of P26,928.10 and P14,421.97 as deficiency income and percentage taxes for the year 1988, plus interest that may have accrued thereon to the Revenue District Office nearest the place of business of your client, within fifteen (15) days from your receipt hereof, otherwise, collection thereof shall be enforced by means of summary remedies prescribed by law. This constitutes the final decision of this Office on the matter. prcd Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue