Tickets or Coupons used by Aguinaldo Development Co.

June 27, 1958 BIR RULING NO. 345-58 Messrs. Sycip, Gorres, Velayo & Co. Certified Public Accountants P.O. Box 589, Manila Gentlemen : Reference is made to your letter of the 26th instant, requesting opinion on whether or not, under the following circumstances, the tickets or coupons to be used by your client, Aguinaldo Development Co., need be presented for approval and registration, pursuant to Section 19 of Revenue Regulations No. V-1, as amended. "Our client, Aguinaldo Development Co. is engaged in the logging business. It proposes to operate in its Davao Office, for the benefit of its employees, a commissary store wherein said employees could buy food and/or household necessities. The sales of commissary goods are proposed to be made only through the use of tickets or coupons with various denominations ranging from P.05 to P1.00 each ticket. The value of one booklet of tickets is P10.00. No cash transactions would be permitted at the store. "An employee, therefore, desiring to buy goods will first have to buy tickets which are serially numbered for cash or on account from the ticket custodian of the company. The value of tickets bought on account by the employee will be deducted from the pay envelope of the said employee on the fifteenth and end of the month. Whenever the employees buy goods from the store, they will give the said tickets in exchange for the goods that they buy. The one receiving the canteen tickets by punching a hole in the ticket. At the end of the day all tickets are summarized in a notebook showing the date, the number of tickets according to denomination, the total tickets received, and the total value of the tickets. Then at the end of the month the commissary sales will be recorded in the books of the company. "The above procedure is proposed to be adopted by the company in order to simplify its bookkeeping records and to prevent frequent "vales" or request for advance of its employees." In answer thereto, I have the honor to inform you that the aforesaid tickets or coupons can be used for the above purposes without the necessity of having them previously approved by and registered with this Office. Attention, however, is invited to the provisions of Section 204 of the Tax Code, as amended, which requires the issuance of sales invoices or receipts for each sale valued at P2.00 or more. In case the gross sales of the company for the current year exceed P20,000.00, it shall be under obligation to issue invoices or receipts for all sales, irrespective of the value of the article sold, to be made by it during the succeeding year. LibLex Very truly yours, (SGD.) JOSE P. TRINIDAD Acting Commissioner of Internal Revenue