Filing of ITR

April 15, 1959 BIR RULING NO. 180-59 Mr. Juan N. Kagaon Tayug, Pangasinan S i r : In reply to your letter dated March 13, 1959, I have the honor to inform you as follows: cdt Since your gross annual income for the past ten or more years was between P3,000 and P4,000, you are, therefore, required to file your income tax return for those years. All persons required to file their income tax returns whose gross quarterly receipts or earnings do not exceed P5,000, except those whose only source of income is their salary, must file the statement of net worth and operations with their returns regardless of whether or not their personal and additional exemptions exceed their gross annual income. Accordingly, you are required to file with your income tax return the yearly statement of net worth and operations. The statement of net worth and operations shall be supplied and prepared by the taxpayer. This Bureau does not prescribe a fixed form for the said statement. It is enough that the statement is substantially the same as that prescribed in Revenue Regulations No. V-13 (Explanatory Note) and that it reveals the true net worth and operations of the taxpayer. Revenue Regulations No. V-13 is published in volume 47 of the Official Gazette No. 8, August, 1951. You may refer to it for guidance or you may consult the provincial revenue officer of your province. Under the facts stated in your letter, you are subject to penalty for your failure to file the statement of net worth and operations with your income tax return for 1953 although the demand for payment of the penalty was dated February 26, 1959. Your income tax return for 1953 must have been filed on or before March 31, 1954. The imposition of the compromise penalty for your failure to attach thereto the aforesaid statement is still within the five-year period and is, therefore, legal and proper. Persons not subject to any internal revenue tax or those whose only source of income is their salary are the only ones exempt from filing the statement of net worth and operations. Unless you fall within any of the aforementioned exceptions you can not be exempted from complying with the requirement of filing the said statement. aisadc Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue