BIR Ruling [DA-023-97]

January 15, 1997 BIR RULING [DA-023-97] Robinsons Realty Management Corporation Edsa Corner Pioneer Mandaluyong City Attention: Mr . John Gokongwei, Jr . Chairman Gentlemen : This refers to your letter dated July 29, 1996 requesting approval for the change in accounting period effective 1996. It is represented that Robinsons Realty Management Corporation (RRMC) is a duly organized domestic corporation duly registered with the Securities and Exchange Commission (SEC) on May 16, 1988; that, to date; RRMC has not started its regular commercial operations; that RRMC accounting period starts on the 1st day of January and ends on the 31st of December of the same year; that in line with the expansion program of the RRMC's parent company, top management recently decided to render RRMC operational; that Management decided to change RRMC's accounting period from calendar to fiscal year basis which shall start on the 1st day of October and end on the 30th day of September on the immediately succeeding year; and that the reasons for the change in the accounting period are as follows: aisadc 1. The SEC requires that wholly-owned subsidiaries be consolidated with parent Company. Since RRMC is wholly-owned subsidiary it must consolidate with its parent company whose accounting period starts October 1 of the year and ends September 30 of the immediately succeeding year. 2. The consolidated financial statements of the parent company will be more consistent and comparable since all its subsidiaries (including RRMC) will be adopting the same accounting period. In reply, please be informed that your request is hereby granted pursuant to Section 40 of the Tax Code, as amended. However, a separate final or adjustment return covering your operation for the period January 1, 1996 to September 30, 1996 should be filed with the Revenue District Office concerned on or before November 29, 1996 and the tax due thereon be paid at the time of filing. Thereafter, your annual income tax return covering the twelve (12) month period from October 1 to September 30 of the following year should be filed on or before January 15 following the close of such fiscal year and the tax due thereon paid at the time of filing. In filing the quarterly corporate income tax returns, the requirements of Section 45, 68, 69 and 70 of the Tax Code, as amended, should be complied with. cdtech A copy of this letter should be attached to the separate final or adjustment income tax return to be filed by you. (BIR Ruling No. 162-95 dated October 23, 1995) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)