Preservation of Books of Accounts for a Period of Five (5) Years

December 5, 1979 BIR RULING NO. 098-B-79 This refers to your letter dated January 19, 1977 addressed to our Regional Director, Revenue Region No. 4-B requesting authority to dispose of your accounting records for 1975 and prior years which were allegedly damaged during 'typhoon Didang.' In reply, please be informed that under Section 324 of the Tax Code of 1977, as amended, books of accounts shall be preserved for a period of five (5) years from the last entry in each book. This requirement is mandatory which cannot be dispensed with, regardless of the conditions of the books. Moreover, to give due course to your request, would shorten the five-year period which is not sanctioned by law. In view thereof, your request cannot be granted for lack of legal basis.