BIR Ruling [DA-181-00]

March 28, 2000 BIR RULING [DA-181-00] Secs. 46 & 47; DA-200-97; DA-181-2000 A.M. Sison, Jr. & Associates Suite 2002-A Security Bank Centre 6776 Ayala Avenue, 1226 Makati City Attention: Atty . Antonio L . Cardio Gentlemen : This refers to your letter dated January 25, 2000 requesting on behalf of your client, Metrolab Industries, Inc. (Metrolab) , that it be allowed to change its accounting period from calendar-year to fiscal-year ending on the 30th of June of each year in accordance with Section 172 of the Income Tax Regulations and Section 47 of the Tax Code of 1997. It is represented that Metrolab has been filing its annual income tax return and is keeping its books of accounts on a calendar basis since it was organized on October 2, 1986; that on October 21, 1999, the Securities and Exchange Commission approved the amendment of its By-Laws changing the company's accounting period from calendar year to fiscal year to begin on the first day of July and end on the last day of June of the following year; that the change would harmonize Metrolab's accounting period with that of its parent company, Sara Lee Philippines, Inc., which follows the fiscal year basis; that Metrolab's principal place of business was transferred from Km. 21 West Service Road, Muntinlupa City to Linares Road, Gateway Business Park, Barangay Javellara, General Trias, Cavite; and that in support of your request, you submitted to this Office photocopies of your annual income tax returns for the past three (3) years and a photocopy of the amended By-Laws changing the accounting period from calendar year to fiscal year basis. In reply, please be informed that your request is hereby granted pursuant to Section 46 of the Tax Code of 1997, as implemented by Section 172 of the Income Tax Regulations. However, a separate final or adjustment return covering your operations for the period January 1, 2000 to June 30, 2000 should be filed with the Revenue District Office where your new principal place of business is located on or before October 15, 2000 and the tax due thereon paid at the time of filing. Thereafter, your annual income tax return covering the 12-month period from July 1, 2000 to June 30, 2000 should be filed on or before October 15 following the close of such fiscal year and the tax due thereon paid at the time of filing. Nevertheless, you are also required to file your quarterly corporate income tax returns and the requirements of Sections 52(A), 75, 76, and 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 and to the annual income tax return to be filed by you. (BIR Ruling No. DA-200-97 dated May 9, 1997) LibLex Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)