Coverage of "Gross Receipts"

October 13, 1958 BIR RULING NO. 616-58 Oceanic Wireless Network Rm. 310 PCI Building Dasmarias, Manila Attention : Mr . Benjamin Balatbat Accountant Gentlemen : With reference to your letter dated July 16, 1958, requesting information as to whether or not the 5% franchise tax to which you are subject should be based on the actual gross receipts, I have the honor to inform you that "gross receipts" includes uncollected gross receipts. Accordingly, the actual gross receipts as well as the amounts "due from" customers which are uncollected or written off or carried in the books are subject to the franchise tax." (Philippine Long Distance Telephone Co. vs. Collector of Internal Revenue, G. R. No. L-3222, prom. Jan. 21, 1952.) cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue