BIR Ruling

September 27, 1968 The Director Revenue Region No. 19 Cotabato City S i r : This refers to the 1st indorsement dated August 21, 1968 from that Region requesting information as to whether or not the Office of an auditor can be considered as an extension of his client's business establishments such that books and other records of businessmen may be brought into said office during auditing period without violating Revenue Regulations No. V-1. In reply, please be informed that the auditor's office and the business establishments herein abovementioned are two independent business entities such that the act of one cannot be considered the act of the other and vice-versa. In fact, in this connection, the prohibition provided for in Section 21 of the Bookkeeping Regulations is very clear that is, not to bring the said books outside the business establishment of the client. This said prohibition is further amplified by BIR Ruling dated April 16, 1953, which provides: "A certified public accountant, in the exercise of his profession, particularly in auditing the books of accounts of a taxpayer, cannot being such books outside the business establishment of his client without violating section 21 of the Bookkeeping Regulations. The law does not provide any exception to these requirements." Be guided accordingly. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue