Use of Post Binders and Roundhead Fasteners in Binding Journals and Ledgers

February 20, 1959 BIR RULING NO. 138-59 Caltex (Philippines) Inc. P.O. Box No. 783 Manila Gentlemen : The question of whether or not the use of post binders and roundhead fasteners in binding your journals and ledgers is in accordance with the Bookkeeping Regulations was referred to this Office for resolution. In this connection, please be informed as follows: aisadc General journals and general ledgers must be in bound form pursuant to Section 4 of the Bookkeeping Regulations. The investigation conducted by an examiner of this Office disclosed that you used the so-called "post binders" and roundhead fasteners in binding your general journals and general ledgers. As the regulations merely require that the said books of accounts be in bound form without specifying the manner or the devise to be used in binding these books, any device may, therefore, be used in binding the same so long as they are in book form. Consequently, binding of your general journals and general ledgers with "post-binders" and roundhead fasteners is sufficient compliance with the regulations on the matter. Moreover, this Office has, in accordance with Section 4 of the Bookkeeping Regulations, previously authorized you to use loose-leaf ledgers, journals, and vouchers subject to the conditions embodied in said authority. It is noted, however, that under the letters of this Office dated June 28, 1949 and January 9, 1957, authorizing you to use loose-leaf ledgers, journals, and vouchers, you were also authorized to use the said accounting forms even without the prior approval of an registration with this Office. In this connection, please be informed that the requirement of submitting to this Office books of accounts, registers, records, invoices, receipts or other accounting forms for approval and registration before using the same is mandatory pursuant to Section 19 of the Bookkeeping Regulations, as amended. The Commissioner of Internal Revenue has no power to exempt a taxpayer from complying with the said requirement. Accordingly, while you may continue using loose-leaf ledgers, journals, and vouchers, your authority to use the same without prior approval of and registration with this Office is hereby revoked. From now on, you should present all your books of accounts, registers, receipts, invoices and all your other accounting records to this Office for approval and registration, before using them . Our letters dated June 28, 1949 and January 9, 1957, insofar as they are not inconsistent with this letter, remain in full force and effect. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue