Unauthorized Use of Loose Leaf General Journal and General Ledger

October 21, 1959 BIR RULING NO. 553-59 The Philippine Trust Company M a n i l a Attention : Mr . Manuel F . Garcia , Vice President Gentlemen : In your letter dated June 17, 1959, you requested reconsideration of that part of BIR Ruling No. 264 dated May 18, 1959 which advised your Company to pay the sum of P300.00 in extra-judicial settlement of its penal liability arising from the unauthorized use of loose leaf general journal and general ledger by its Ermita Branch. This Office notes that your failure to secure authority for your Ermita Branch to use loose leaf general journal and general ledger is due to your honest but mistaken belief that the authority granted your main establishment to use said accounting records includes said Branch. We note also that after you became aware of BIR Ruling No. 608 dated October 2, 1958, you lost no time in filing with this Office your request that your Ermita Branch be allowed to use loose leaf general journal and general ledger. In view of the foregoing consideration and the explanation contained in your letter of reconsideration, this Office recognizes your sincere desire to comply with the Bookkeeping Regulations and that your aforementioned failure was a mistake committed without intent to violate said Regulations. The compromise penalty suggested to you in the ruling under consideration is, therefore, hereby withdrawn. However, the terms and conditions embodied in the authority granting your Company the privilege to use loose leaf general journal and general ledger, as modified in our letter to you dated May 18, 1959, should be strictly followed in order that you may continue enjoying the same. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue