BIR Ruling No. 197-83

November 15, 1983 BIR RULING NO. 197-83 Gentlemen : This refers to your letter dated July 1, 1983 requesting confirmation of your opinion to the effect that the plan of your client, the Goodyear Tire and Rubber Co., of the Philippines, Inc. to deduct sales taxes and advance sales taxes paid or accrued by it during the taxable year is in accordance with Section 30(c)(1) of the Tax Code, as amended and does not involve a change in accounting method requiring prior consent of the Commissioner of Internal Revenue. In reply thereto, I have the honor to inform you that for income tax purposes, taxes paid or accrued within the taxable year in connection with the taxpayer's trade or business are deductible pursuant to Section 30(c)(1) of the Tax Code as amended. (See also Sec. 80, Rev. Regs. No. 2) Such being the case, your client can deduct from its quarterly gross income, such business taxes consisting of the advance sales tax paid on the imported raw materials used in the manufacture of its finished products as well as the sales taxes paid on the said finished products which are sold by its during the taxable quarter. (Sec. 85, Tax Code). Moreover, making such deduction would not involve a change in accounting method requiring the prior consent of the Commissioner of Internal Revenue. cdta Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue