BIR Ruling [DA-208-01]

October 19, 2001 BIR RULING [DA-208-01] Section 232 (A); Section 6 (C) Ms. Emma N. Jonson Poblacion, Bansud Oriental Mindoro M a d a m : This refers to your letter dated February 6, 2001, requesting information concerning (1) the kind of books of accounts and records that small merchants, i.e., sari-sari store owners, carinderias, "kiskisan-type" rice mills, etc. should use and keep; and (2) whether persons who accomplish or assist small merchants in accomplishing their simplified set of bookkeeping records are required to apply for accreditation with the Bureau of Internal Revenue. You state that the Revenue District stationed at Calapan City, Oriental Mindoro, informed you in letter dated January 15, 2001 that under the provisions of Title IX, Chapter I, Section 232(B) of the Tax Code, only those whose quarterly sales, earnings, receipts or output do not exceed P5,000.00 may be allowed to use simplified set of bookkeeping records. As such, the said Revenue District Officer requires those small merchants operating in your municipality whose quarterly sales or receipts exceed P5,000.00 to use a journal and a ledger. You reasoned out however, that under Section 232(A) of the 1997 Tax Code, those whose quarterly sales or receipts do not exceed P50,000.00 shall keep and use simplified book of accounts. Your contention is correct. Pursuant to the aforecited section of the 1997 Tax Code, all corporations, companies, partnerships or persons whose gross quarterly sales, earnings or receipts do not exceed P50,000.00 shall keep and use simplified set of bookkeeping records which consists of (1) record of daily sales and cash receipts; (2) record of daily purchases, expenses and cash disbursements; (3) records of summary of transactions; and (4) yearly statements of net and operations, all of which may be in combined form or in separate booklets. However, taxpayers whose quarterly sales or receipts exceed P50,000.00 are required to keep a journal, a ledger, a cash receipts book and a cash disbursements book. The provision of law cited by the concerned Revenue District Officer was already amended/modified by R.A. No. 8424; hence, can no longer be invoked. On question No. 2, please be informed that pursuant to Section 6(C) of the Tax Code of 1997, as implemented by Revenue Regulations No. 15-99, the Commissioner of Internal Revenue shall accredit and register all individuals, general professional partnerships and their representatives who regularly prepare and file fax returns, statements, reports, protests, requests for ruling and other papers with or who regularly appear before the Bureau of Internal Revenue in behalf of taxpayers for a consideration. However, the act of appearing before any office of the BIR shall pertain to all official dealings on transactions which require discussions, explanations and regular business intercourse on behalf of a taxpayer but shall not cover mere acts of following up to status of any document, ruling or decision or any paper filed or pending with any Office of the BIR. Accordingly, bookkeepers who merely prepare or assist in the preparation of the simplified books of accounts of small merchants but do not appear before the Office of the Revenue District Officer of Calapan for discussion or explanations in connection with any papers/documents filed thereat are not required to apply for accreditation with the Bureau of Internal Revenue. Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner