Penalty Imposable on Taxpayers Who Fail to Keep Their Books of Accounts

April 25, 1958 BIR RULING NO. 248-58 Mr. Tolentino Go Bongao, Sulu S i r : In answer to the queries propounded in your letter dated March 17, 1958, I have the honor to inform you as follows: (1) The penalty imposable on taxpayers who fail to keep their books of accounts for a period of at least five (5) years from the date of last entry and to produce said books upon demand made within said period by an authorized internal revenue officer is a fine of not more than P300 or imprisonment of not more than six (6) months, or both, regardless of whether or not the same books have been previously examined by internal revenue officers. Accordingly, the failure of a taxpayer to produce his books of accounts for the year 1954 upon demand made during this year makes him liable to the aforesaid penalty. (2) Persons working as bookkeepers are not subject to any occupation tax. (3) Persons engaged in the business of buying and selling salted fish are subject only to the graduated annual fixed tax prescribed in Section 182(a)(2) of the Tax Code. Only manufacturers, producers, or importers are subject to the sales tax. cdta Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue