Permission to File the Sales Returns for Percentage Tax Purposes

April 1, 1959 BIR RULING NO. 182-59 Consolidated Philippines, Inc. P. O. Box 2681, Manila Attention : Mr . Federico B . Guilas Office Manager Gentlemen : In reply to your letter dated December 6, 1958, I have the honor to quote hereunder the ruling of the Secretary of Finance dated March 17, 1959, answering your queries propounded therein, as follows: "The permission to file the sales returns for percentage tax purposes on a four-week basis instead of on the calendar monthly basis sought by the Consolidated Philippines, Inc. in the basic communication dated December 6, 1958 cannot be granted, in view of the fact that the same is not allowable under the provisions of the National Internal Revenue Code. "As regards the question on income tax liability, the Consolidated Philippines, Inc. should file an income tax return for the fiscal year ended August 31, 1959, segregating therein the income and deductions for four months ended December 31, 1958 and those for eight months ended August 31, 1959. If the segregation of the income and deductions for the two periods is impracticable, the corporation should file an income tax return, declaring therein its income and deductions for the period from September 1, 1958 to August 31, 1959. The resulting net income shall be pro-rated over a period of twelve months, and the net income corresponding to four months (September 1 to December 31, 1958) shall be exempt. Upon the net income corresponding to eight months (January 1 to August 31, 1959) the income tax due shall be computed and 10% thereof, assessed and collected. Please be guided accordingly. LLjur Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue