BIR Ruling [DA-182-97]

April 16, 1997 BIR RULING [DA-182-97] Laya Mananghaya Salgado & Co. 3/F Chemphil Building 851 Arnaiz Avenue, Legaspi Village Makati City Attention: Atty . Mariano C . Ereso, Jr . Tax Principal Gentlemen : This refers to your letter requesting authority on behalf of your client, Weathernews Philippines, Inc. to change its accounting period from calendar year basis ending December 31 to fiscal year basis ending 31 March for purposes of filing its annual income tax returns. cdti It appears that Weathernews Philippines, Inc. (WPI) is a corporation engaged in weather forecasting and was registered with the Securities and Exchange Commission (SEC) on January 25, 1995; that the books of accounts of your client were opened and closed on the following dates: Year Date of books were opened Date books were closed 1996 01 January 31 December 1995 25 September 31 December that WPI's taxable year began on 01 January and ended on 31 December of each year; and that the change in their accounting period is prompted by the desire of WPI to synchronize its reporting period with its parent company, whose taxable year ends on 31 March of each year. In reply, please be informed that your request is hereby granted pursuant to Section 40 of the Tax Code, as amended, as implemented by Section 172 of the Income Tax Regulations. However, a separate final or adjustment return covering your operation for the period January 31, 1997 to March 31, 1997 should be filed with the Revenue District Office concerned on or before April 15, 1998 and the tax due thereon paid at the time of filing. Thereafter, your annual income tax return covering the twelve (12) months period from April 1, 1997 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 45, 68, 69 and 70 of the Tax Code, as amended, 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 Weathernews Philippines, Inc. (BIR Ruling No. 118-95 dated July 7, 1995) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service) By: ALICIA L. TOMACRUZ Head Revenue Executive Assistant (Legal Service)