Information on the Tentative Financial Statements (unaudited) Submitted with an ITR

October 11, 1988 BIR RULING NO. 486-88 232 000-00 468-88 Gentlemen : This refers to your letters dated May 25, 1988 and August 31, 1988 requesting information if the tentative financial statements (unaudited) submitted together with your income tax return became final after one year. In reply, please be informed that your request is answered in the negative. Under Section 232(A) of the Tax Code, as amended, in the case of corporation, companies, partnerships or persons whose gross quarterly sales, earnings, receipts or output exceed twenty-five thousand pesos, they shall have their books of accounts audited and examined yearly by independent Certified Public Accountants and their income tax returns accompanied with certified balance sheets, profit and loss statements, schedules listing income-producing properties and the corresponding income therefrom and other relevant statements. Accordingly, the unaudited financial statement you submitted to this Office together with your income tax return does not comply with the law. Hence, an audited financial statement should be submitted as soon as the same is available. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner