Request for Authority to Change Accounting Period from Calendar Year Basis Ending to Fiscal Year Basis for Purposes of Filing Its Annual Income Tax Return

July 7, 1995 BIR RULING NO. 118-95 40 000-00 118-95 Sycip, Gorres Velayo & Co. 6760 Ayala Avenue Makati City, Metro Manila Attention: Atty . E . C . Alcantara Tax Division Gentlemen : This refers to your letter dated April 6, 1995 requesting in behalf of your client, First Private Power Corporation (FPPC) authority to change its accounting period from calendar year basis ending December 31 to fiscal year basis ending July 31 for purposes of filing its annual income tax return. cdpr It is represented that since FPPC's incorporation in November 1992. Its books of accounts were opened and closed on the following dates: Year Date books were opened Date books were closed 1993 January 1 December 31 1994 January 1 December 31 that FPPC's taxable year began on January 1 and ended December 31; and that the change in FPPC's accounting period is due to the need to synchronize FPPC's year and with its BOT period. In reply, please be informed that your aforesaid request is hereby granted pursuant to Section 40 of the Tax Code, as implemented by Section 172 of the Income Tax Regulations. However, a fractional income tax return covering the operation of FPPC for the period January 1, 1995 to July 31, 1995 should be filed with the revenue district officer concerned not later that April 15, 1996 and the tax due thereon paid at the time of filing. Thereafter, your client's income tax return covering the twelve (12) months period form August 1, 1995 to July 31 of the following year should be filed on or before November 15 following the close of such fiscal year and the tax shown therein paid at the time of filing. In filing the corporate quarterly return, your client should comply with the requirements of Section 45, 68, 69 and 70 of the Tax Code, as amended. A copy of this letter should be attached to the fractional income tax return to the filed by your client. prcd Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue