BIR Ruling [DA-178-99]

March 23, 1999 BIR RULING [DA-178-99] Diaz Murillo Dalupan 5F Don Jacinto Building Dela Rosa corner Salcedo Sts. Legaspi Village, Makati City Attention: Atty . Millard M . Manseguiao Gentlemen : This refers to your letter dated March 12, 1998 requesting permission to use computer generated income tax return forms instead of BIR-printed forms in the preparation of the annual income tax returns of your clients. prcd It appears that you are proposing to computerize the income tax return forms for individuals, corporations and partnerships (BIR Forms Nos. 1701, 1701-A, 1701-C, 1701-D, 1702 and 1704); that except for the BIR seal, the computer-generated form will contain all the information found in the original BIR form; that in accomplishing the return, the amounts of income and expenses will be manually inputted and the software will be designed only to produce a fully accomplished income tax return (ITR) forms as its output. You cited the following advantages in the use of the computerized form, viz: 1. Reduction in the cost of printing to the BIR; 2. Mathematical accuracy of computations; and 3. Faster preparation of income tax return. In reply, there is quoted hereunder the pertinent provisions of the Tax Code of 1997 governing the declaration of income tax return for individuals and corporations, to wit: For Individuals "SEC. 74. Declaration of Income Tax for Individuals . "(A) In General . . . The declaration shall contain such pertinent information as the Secretary of Finance, upon recommendation of the Commissioner, may, by rules and regulations prescribe. . . . For Corporations "SEC. 75. Declaration of Quarterly Corporate Income Tax . Every corporation shall file in duplicate a quarterly summary of its gross income and deductions on a cumulative basis for the preceding quarter or quarters upon which the income tax, . . ., shall be levied collected and paid. . . ." What is significant about the foregoing provisions is that the requirements to, be indicated in the return are those which are prescribed by the Secretary of Finance; and that the latter is not precluded from modifying from to time the requirements to effect the computation and collection of income tax. It is also significant to point out that the Tax Code does not prohibit the use of forms other than the ones supplied by the BIR. It merely prescribed what are to be contained in the return; hence, if a computer-generated form contains exactly the same, features as the ones printed by the BIR, no legal impediment could be cited for its use. In view thereof authority is hereby granted to you for your clients to use computer-generated income tax return forms instead of the BIR printed forms in the preparation of the annual income tax returns of your clients. (BIR Ruling No. 083-92 dated May 19, 1992) This ruling is issued on the basis of the foregoing representations. However, if upon investigation, it will be disclosed that the facts are different from that as represented, then this ruling shall be considered null and void. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)