BIR Ruling [DA-407-99]

July 13, 1999 BIR RULING [DA-407-99] San Roque Power Corporation L.V. Locsin Building, 7th Floor Corner Ayala & Makati Avenues Makati City Attention: Mr. Edgardo P. Curbita Controller and Loan Compliance Officer Gentlemen : This refers to your letter dated May 28, 1999 requesting for an extension of time within which to file your corporate income tax return for the first quarter ending March 31, 1999 pursuant to Section 53 of the Tax Code of 1997. It appears that you have already filed your tentative 1998 corporate tax returns; that your books of accounts for the year ended December 31, 1998 are still being audited by SGV & Co., thus, your 1999 beginning balances are still unavailable and corollary thereto, you cannot come up yet with the March 31, 1999 balances; that SGV & Co. has not yet been able to finish the audit right away because of the delay caused by the transition process whereby records or books of accounts formerly maintained in your affiliate in New York are being transferred to Manila; that this transfer necessitated the construction in Manila of an entirely new and separate books of accounts which construction started only about last March 9, 1999; that you are still in the pre-operating stage and shall be entitled to an income tax holiday of 6 years after the construction of your Build-Operate-Transfer Project which is expected to be completed by year 2004; and that you shall therefore report no taxable income until about year 2004 and six years thereafter. In reply, please be informed that Section 53 of the Tax Code of 1997 provides that the Commissioner may, in meritorious cases, grant a reasonable extension of time for filing returns of income (or final and adjustment returns in case of corporation), subject to the provisions of Section 56 of the said Code. Such being the case and considering the foregoing circumstances, your failure to file your corporate income tax return for the first quarter ending March 31, 1999 is not entirely your fault and therefore legally justifiable, your request for an extension of time from May 31, 1999 to August 15, 1999, within which to file the said corporate income tax is hereby granted. ICTHDE This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue