Request for an Authority to be a Fully Computerized Organization and to be Permitted to Use Own Invoice Cum Trade Reference Number

February 16, 1995 BIR RULING NO. 036-95 235 000-00 036-95 All Asia Securities Management Corporation All Asia Capital Center 105 Paseo de Roxas Makati, Metro Manila Attention: Mr . Don P . Calderon President and Mr . Keiichi Shirahige Executive Vice President Gentlemen : This refers to your letters dated October 5, 1994 and December 7, 1994 stating that you are a securities company registered at the Philippine Stock Exchange; that you execute trading orders in behalf of your domestic and international client's instructions; that at present, you are undergoing a complete organizational review; that your objectives are to maximize office efficiency by restructuring current working procedures and the installation of a comprehensive computer system; that you plan to fully automate all procedures, enhance productivity, eliminate input duplication and improve the transaction audit trail; that the final aim is to provide the best customer service in the market place; that the main obstacle you have encountered is related to the use of pre-numbered invoices, which you understand to be a BIR regulations; that currently there are many documents either passed to your clients or used internally relating to a particular trade; that all of these documents hold an unconnected pre-printed number; that it can be particularly difficult to cross reference all the information, and at time bewildering for your clients; that the concept of the proposed computer system is at present in the very early stages of development; that the system will be based on a single entry concept whereby the trade is entered once and as directed by trade entry, will automatically flow to the other parts of the system to facilitate final settlement; that this will be a unique twelve digit numeric code, sequentially increment per trade; that the unique reference number will appear on all documents pertaining to the trade and shall be used by your clients in all future communications, i.e., LibLex Invoice Official Receipt BIR Withholding Tax Report BIR Tax Convention Report Telex/Fax Communication (immediate trade confirmation) Cheque Remittance Note Foreign Exchange Settlement Daily Trading Reports Client Business Reports Client Monthly Statement of Account and that you have a project installation date as of the second quarter of 1995. Based on the foregoing representations, you are now requesting in effect for an authority to be a fully computerized organization, and that you be permitted to use your own invoice cum trade reference number. In reply, please be informed that your first request is hereby granted subject to the following conditions: (1) A readable print-out of the information/accounting data should be made available and/or verifiable; and (2) Diskettes containing records, classification and summary of transactions shall be subject to examination and inspection of internal revenue officers as if they are the traditional manual books of accounts in accordance with Section 235 of the Tax Code, as amended. With regard to your second request for you to be permitted to use your own invoice cum trade reference number, this office is likewise granting the said request provisionally, subject to the formal adoption of the proposed Unified Invoicing System. LexLib Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue