Nature of a Balance Sheet and of the Requirement of Its Submission

August 23, 1958 BIR RULING NO. 454-58 Mr. Felipe Ramos Echague, Isabela S i r : In reply to your letter dated May 31, 1958, where in you requested information as to the nature of a balance sheet and of the requirement of its submission with the income tax return, I have the honor to inform you as follows: All persons subject to internal revenue tax whose gross quarterly sales, earnings, receipts, or output exceed P5,000 but do not exceed P25,000 must accomplish and file with their income tax returns a balance sheet. The balance sheet is a statement of the taxpayer's net worth at the end of the taxable year determined by deducting from his total assets his total liabilities. Accordingly, if you failed to accompany your income tax return with a balance sheet and profit and loss statement, it is suggested that you pay the sum of P10.00 in extrajudicial settlement of your penal liability arising from your violation of the regulations, in order that your case may be closed. LLpr Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue