BIR Ruling [DA-394-04]

July 21, 2004 BIR RULING [DA-394-04] Mr. Emelino T. Maestro CPA/TAX AGENT Room 341 Isabel Bldg. Espaa 1008, Manila S i r : This refers to your letter dated April 19, 2004, received by this Office on May 7, 2004, requesting a ruling and/or clarification in connection with Sections 6(G); 232 and 267 of the National Internal Revenue Code. In your letter, you posed a situation, quoted verbatim as follows: "Supposed a taxpayer has filed audited financial statements which are not in accordance with the National Internal Revenue Code (Section 267) and such was certified by a person who is not a Certified Public Accountant (Section 232) and is not also a BIR Accredited Tax Agent [Section 6(G)]. "We all know that these violations are subject to penalty or compromise fees. Please clarify the ensuing, to wit: "1. Is the payment of compromise penalty fee by a taxpayer relieved him of filing audited financial statements which must be in accordance with the National Internal Revenue Code? "2. Is the payment of compromise penalty fee by a person who is not a CPA and also not a BIR accredited tax agent relieved him from undoing what he had done? "3. Is there a need for such taxpayer to get services of a person who is not only a CPA but also a BIR accredited tax agent in order to comply with the requirement of the 1997 Tax Code?" In reply, please be informed that Section 2 (t) of Revenue Bulletin No. 1-2003 provides that: "Section 2. List of Non-Ruling Areas The following shall hereby be construed and identified as "No-Ruling Areas": "xxx xxx xxx "(t) Request for rulings on issue/s or transactions based on hypothetical situations." Accordingly, your request for a clarification and/or ruling in connection with your representation is hereby denied since your questions are hypothetical, well within the purview of Section 2 (t) of Bulletin No. 1-2003. Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group