Sufficiency of Pay-Vouchers

April 21, 1959 BIR RULING NO. 227-59 Messrs. Lobrin, Vecino & Associates Lawyer & Tax Consultants Suites 314-315, Yuchangco Bldg., 484 Rosario, Manila Gentlemen : Reference is made to your letter of the 16th instant, requesting information whether or not under the following circumstances, the pay-vouchers mentioned therein will be sufficient evidence to support your client's purchases. "We would like to request for an opinion whether a merchant who purchases directly from sellers of home industry products such as straw and buri hats and mats is required to support his purchases by printed sales invoices of said seller in order that our client maybe entitled to deduct the cost of goods sold from his total sales. In this connection, please be informed that sellers of straw and buri products do not have printed sales invoices as said sellers are usually barrio folks who buy said products from home weaver in the provinces. Our client, therefore, in order to have supporting documents for his purchases, requires these sellers to sign pay-vouchers wherein the latter acknowledge receipt from our client of the amount representing the purchase price of their merchandise." In answer thereto, I have the honor to inform you that, as this Office believes that manufacturers and dealers of said home-industry products, especially barrio folks living in far-flung provinces, are not as yet tax conscious and for which reason they do not care to follow internal revenue laws and regulations, such as those on bookkeeping, for the time being the aforesaid pay-vouchers may be considered sufficient evidence to support your client's purchases of home-industry products. In this connection, it is requested that this Office be furnished with a list of the names and respective addresses of the manufacturers and/or dealers from whom your said client buys home-industry products in order that we can require them to comply with the laws and regulations on the matter. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue