Request for Exemption from the Suspension of Tax Investigation under Revenue Memorandum Order No. 31-93

February 8, 1994 BIR RULING NO. 046-94 235 000-00 046-94 Joaquin Cunanan & Co. 8th Floor, BA Lepanto Building 8747 Paseo de Roxas Makati, Metro Manila Attention: Mr . Jose S . Tayag, Jr . Gentlemen : This refers to your letter dated September 10, 1993 requesting, in behalf of your client, FPSAL PHILIPPINES, INC., for exemption from the suspension of tax investigation under Revenue Memorandum Order No. 31-93. It is represented that your client, FPSAL PHILIPPINES, INC., was organized primarily to undertake the purchase and sale of certain condominium units; that considering that the business venture for which it was organized had already been completed, its stockholders approved its dissolution by way of shortening its corporate life up to September 30, 1992; that in connection with its application for tax clearance, Revenue District Office No. 32 had commenced examination of your client's open years including taxable year 1992 but that the said investigation was suspended pursuant to RMO No. 31-93; and that you are requesting now for the continuance of the investigation despite the suspension of tax investigation under RMO No. 31-93 to facilitate the issuance of a tax clearance in favor of your said client and to further minimize further administrative costs and losses in maintaining an office until final liquidation is secured. cdtech In reply thereto, please be informed that pursuant to Section 235 of the Tax Code, as amended, the examination and inspection of the books and records of a corporation shall be made only once in a taxable year. EXCEPT in the following cases, among others, to wit: "Sec. 235. Preservation of Books of Accounts and Other Accounting Records . . . . for income tax purposes, such examination and inspection shall be made only once in a taxable year, except in the following cases: (a) . . . (b) The taxpayer requests reinvestigation; (c) . . . (d) . . . (e) . . . All corporations, partnerships or persons that retire from business shall, within ten days from the date of retirement or within such period of time as may be allowed by the Commissioner in special cases, submit their books of accounts, including the subsidiary books and other accounting records to the Commissioner or any of his deputies for examination, after which they shall be returned. Corporations and partnerships contemplating dissolution must notify the Commissioner; and shall not be dissolved until cleared of any tax liability." Considering therefore that the stockholders of your said client, FPSAL PHILIPPINES, INC. had approved its dissolution by way of shortening its corporate life up to September 30, 1992 and are now requesting that examination be conducted on its books of accounts for tax clearance purposes despite suspension of tax investigation under RMO No. 31-93, your request for continuance of the investigation of the books and records of FPSAL PHILIPPINES, INC. is hereby GRANTED. This will serve as authority for the Revenue District Officer Makati (West) to continue with the investigation of your said client's books of accounts for 1992 and prior years for internal revenue purposes. cdt Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue