BIR Ruling [DA-025-97]

January 15, 1997 BIR RULING [DA-025-97] Manila Midtown Hotel Pedro Gil St., cor. M. Adriatico St., Ermita, Manila Attention: Mr . John Gokongwei, Jr . Chairman Gentlemen : This refers to your letter dated July 1, 1996 requesting authority for Manila Midtown Hotel to change its accounting period from calendar year basis ending December 31 to fiscal year basis ending September 30 for purposes of filing its annual income tax return effective 1996. aisadc It is represented that its books of accounts were opened and closed on the following dates: Year Date Books were opened Date Books were closed 1993 January 1 December 31 1994 January 1 December 31 1995 January 1 December 31 and that the change in Manila Midtown Hotel's accounting period is due to the following reasons: (1) The Securities and Exchange Commission (SEC) requires that wholly-owned subsidiaries be consolidated with its parent company; that Manila Hotel is a wholly owned subsidiary, thus, it must be consolidated with its parent company whose other subsidiaries use September 30 fiscal year for their accounting period; and (2) that the consolidated financial statements of the parent company will be more consistent and comparable since all its subsidiaries 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 implemented by Section 172 of the Income Tax Regulations. However, a fractional income tax return covering the operations of Manila Midtown Hotel for the period of January to September 30, 1996, should be filed with the revenue district officer concerned on or before January 15, 1997 and the tax due thereon paid at the time of filing. Thereafter your income tax return covering the twelve (12) months period from October 1, 1996 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 shown therein paid at the time of filing. In filing the corporate quarterly returns, you should comply with the requirements of Sections 45, 68, 69 and 70 of the Tax Code, as amended. A copy of this letter should be attached to the fractional income tax return to be filed by Manila Midtown Hotel. (BIR Ruling No. 118-95 dated July 7, 1995) cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)