Books and Records of a Branch Establishment

May 28, 1959 BIR RULING NO. 286-59 Sabido & Sabido Law Offices P.O. Box 1970, Manila Gentlemen : Reference is made to your letter dated April 13, 1959, stating that the Sta. Cecilia, Sawmills, Inc. is a domestic corporation with principal office in Quezon City and a field office in Caluag, Quezon, where its sawmill is located. You now request information as to whether or not it is necessary for said corporation to keep a complete set of books of accounts in its office in Caluag, as well as the place where it should pay the forest charges and sales tax. In answer thereto, I have the honor to inform you that, pursuant to section 20 of the Bookkeeping Regulations, all books, registers and other records, and vouchers and other supporting papers required by said regulations shall be kept at all times at the place of business of the taxpayer. However, in the case of a branch establishment, there shall be kept in that establishment such books and records as would clearly reflect all the transactions effected therein. Accordingly, it is enough that your office in Caluag keep such books and records as would clearly reflect all the transactions effected therein. As regards the place of payment, please be further informed that the forest charges and sales tax due on the forest products of the Sta. Cecilia Sawmills, Inc. should be paid to the Deputy Provincial Treasurer of Caluag, Quezon. However, the Commissioner of Internal Revenue may authorize the shipment of forest products under auxiliary invoices without the prepayment of charges in special cases where the payment thereof at the point of origin would result in undue hardship, if the owner or concessionaire shall first file a bond with this Office in the form and amount and with such sureties as the Commissioner may require, conditioned upon the payment of the forest charges at the point of destination or at such time and place as the Commissioner may direct. cdll Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue