BIR Ruling [DA-444-06]

July 27, 2006 BIR RULING [DA-444-06] A.M. Sison, Jr. & Associates Suites 2002, A Security Bank Centre 6776 Ayala Avenue 1226 Makati City Attention: Atty. A. Gutierrez, Jr . Gentlemen : This refers to your letter dated May 10, 2006 requesting authority for Tower Condominium Corporation (Tower) to change its accounting period from calendar year ending December 31 to fiscal year ending March 31, effective this year 2006. In reply, please be informed that pursuant to Section 46 of the Tax Code of 1997, your request is hereby granted, provided you comply with the provisions of Section 47(a) of the said Tax Code, viz: "SEC. 47. Final or Adjustment Returns for a Period of Less than Twelve (12) Months . a) Returns for short period resulting from change of accounting period. If taxpayer other than an individual, with the approval of the Commissioner, changes the basis of computing net income from . . . calendar year to fiscal year, a separate final or adjustment return shall be made for the period between the close of the last calendar year for which return was made and the date designated as the close of the fiscal year . . . ." Accordingly, Tower should file a separate final or interim return for the period corresponding to January 1 and March 31, 2006, which is the period between the close of the calendar year for which a return was made and the date designated as the close of the fiscal year. This will, therefore, serve as your authority to change your accounting period from calendar year to fiscal year ending March 31 upon your compliance with the requirement of filing a short period return. (BIR Ruling No. 060-96 dated May 22, 1996) 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, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service