BIR Ruling [DA-161-99]

March 17, 1999 BIR RULING [DA-161-99] Bengzon Narciso Cudala Jimenez Gonzales & Liwanag SOL Building, 112 Amorsolo Street Legaspi Village Makati City Attention: Attys . Jose V . E . Jimenez and Joshua G . F . Paraiso Gentlemen : This refers to your letter dated January 15, 1999 requesting authority on behalf of your client, Tokai Precision Philippines, Inc. (TPPI) to change its accounting period from fiscal year ending December 31 to fiscal year ending on the last day of March for purposes of filing its annual income tax return effective the year 1999. It is represented that TPPI was granted its Certificate of Incorporation by the Securities and Exchange Commission (SEC) on July 16, 1998; that TPPI's fiscal year as stated in its By-Laws covers the period beginning the first day of January and ending on the last day of December of each year; that, however, TPPI's Board of Directors resolved on October 28, 1998 to amend or change said fiscal year to begin on the first day of April and the end on the last day of March the following year; that the purpose is to synchronize the same with the fiscal year of its parent company in Japan, Tokai Bussan Co. Ltd.; that the foregoing amendments were made in Section 2 Article VI of the By-Laws of TPPI and were approved by the SEC on January 13, 1999; and that in support of your request, you submitted the following documents: (i) Articles of Incorporation and By-Laws of TPPI; (ii) SEC approval dated January 13, 1999 together with its attachments; and (iii) Secretary's Certificate issued by TPPI's Corporate Secretary. In reply, please be informed that your request is hereby granted pursuant to Section 46 of the Tax Code of 1997. However, a separate final or adjustment return covering its operation for the period from January 1, to December 31, 1998 and from January 1 to March 31, 1999 should be filed with the Revenue District Office concerned on or before April 15, 1999 and the tax due thereon paid at the time of filing. Thereafter, TPPI's annual income tax return covering the twelve (12) month period from April 1, to March 31 of the following year should be filed on or before July 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 Sections 52, 75, 76, 77 of the Tax Code of 1997 should be complied with. A copy of this letter should be attached to the separate final or adjustment income tax return to be filed by TPPI. (BIR Ruling No. 162-95 dated October 23, 1995) casia Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)