How Often the Books of Accounts of Taxpayers May Be Examined

No date supplied BIR RULING NO. 126-60 Mr. Sinforoso Chua 189-G Junquera Street Cebu City S i r : In answer to your inquiry regarding the question of how often the books of accounts of taxpayers may be examined by this Bureau, please be informed as follows: As a rule, the examination of the books of accounts of a taxpayer is undertaken only one for each taxable period. There is no prohibition, however, on the subsequent examination of these books if and when, in the opinion of the Bureau, the circumstances of the case warrant further examination. What is prohibited is "unnecessary" examination. The yearly examination of books of accounts is not only necessary but a duty to be discharged by this Office. In doing so, reference to the other books pertaining to the five-year period immediately preceding the examination can also be done. The fact the said books were previously examined does not bear their subsequent examination. However, if you believe that an examination of said books is irregular, you may report to this Office the parties involved and submit evidence to prove your claim. LLjur Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue