Request for Permission to Use Computer Generated Income Tax Return Forms in the Preparation of the Annual Income Tax Returns

March 19, 1992 BIR RULING NO. 083-92 67, 68 000-00 083-92 Sycip, Gorres, Velayo & Co. 6760 Ayala Avenue Makati, Metro Manila Attention: Atty . E . C . Alcantara Tax Division Gentlemen : This refers to your letter dated May 15, 1991 requesting permission to use computer generated income tax return forms instead of BIR-printed forms in the preparation of the annual income tax returns of your clients. It appears that you are proposing to computerize the income tax return forms for individuals, corporations, partnerships, (BIR Forms Nos. 1701, 1701-A, 1701-C, 1701-D, 1702, and 1704); that except for the BIR seal, the computer-generated form will contain all the information found in the original BIR form; that in accomplishing the return, the amounts of income and expenses will be manually inputted and the software will only be designed to produce a fully accomplished income tax return (ITR) forms as its output. You cited the following advantages in the use of the computerized form, viz: 1. Reduction in the cost of printing to the BIR 2. Mathematical accuracy of computations; and 3. Faster preparation of income tax return. In reply, I have the honor to quote the pertinent provisions of the Tax Code governing the declaration of income tax return for individuals and corporations, to wit: For Individuals "Sec. 67. Declaration of Income Tax for Individuals . (a) . . . The declaration shall contain such pertinent information as the Secretary of Finance may by rules and/or regulations prescribe . . ." For Corporations "Sec. 68. Declaration of Corporate Quarterly Income Tax . Every corporation shall file in duplicate a quarterly summary declaration of its gross income and deductions on a cumulative basis for the preceding quarter or quarters upon which the income tax, as provided in Title II of this Code shall be levied, collected and paid . . . ." What is significant about the foregoing provisions is that the requirements to be indicated in the return are those which are prescribed by the Secretary of Finance; and that the latter is not precluded from modifying from time to time the requirements to effect the computation and collection of income tax. It is also significant to point out that the Code does not prohibit the use of forms other than the ones supplied by the BIR. It merely prescribes what are to be contained in the return; hence, if a computer-generated form contains exactly the same features as the ones printed by the BIR, no legal impediment could be cited for its use. atdc In view thereof, authority is hereby granted to you to use computer generated income tax return forms instead of the BIR printed forms in the preparation of the annual income tax returns of your clients. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue