BIR Ruling No. 050-65

May 20, 1965 BIR RULING NO. 050-65 Mr. Zacarias R. Garcia 102 Bernadette Street Grace Park, Caloocan City S i r : In answer to your query, I have the honor to inform you as follows: Pursuant to section 334 of the National Internal Revenue Code, farmers must keep a journal and a ledger or their equivalents. However, if their gross quarterly earnings or receipts do not exceed P5,000.00, they may use only a simplified set of bookkeeping records duly authorized by the Secretary of Finance. Before using said books or records, they must first be presented for approval and registration with the Regional Director, or the Chief Revenue Officer or Collection Agent, as the case may be, in accordance with Section 19 of the Revenue Regulations No. V-1. Farmers must keep the aforementioned books or records regardless of whether or not they avail themselves of the itemized deductions or the optional standard deduction. Pursuant to Section 334 of the Tax Code, persons whose gross quarterly sales, earnings, receipts or output exceed P25,000.00 must accompany their returns with certified balance sheet profit and loss statements, schedules listing income-producing properties and the corresponding incomes therefrom and other relevant statements. Persons whose gross quarterly sales, earnings, receipts or output exceed P5,000.00 but less than P25,000.00 must accompany their returns with simple balance sheets. Persons whose gross quarterly sales, earnings, receipts or output is less than P5,000.00 must accompany their returns with the yearly statement of net worth and operations. (Section 6, Revenue Regulations No. V-1) Your failure to answer the question on page 2 of the income tax return for non- salaried individuals reading "Do you keep books of account showing your income and expenses" will not render the individual liable for violation of the Bookkeeping Regulations if in fact he is keeping said books. cdta Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue