Filing of Statement of net Worth and Operations with ITR

December 12, 1958 BIR RULING NO. 730-58 Mr. Vicente B. Vasquez 362 Quezon Blvd. Manila S i r : In reply to your letter dated September 22, 1958, I have the honor to inform you as follows: cdt Professionals such as lawyers, doctors, certified public accountants, etc. who are engaged in the practice of their professions are required to file the statement of net worth and operations with their income tax returns. Where their gross quarterly receipts exceed P25,000.00 in any one quarter, 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. However, professionals whose only source of income is their salary need not file the aforesaid statement with their income tax returns. There is no fixed from prescribed by this Office for the said statement. It is enough that the said statement is prepared in accordance with the accepted accounting principles and that it reveals the true net worth of the taxpayer as well as his operations. There is no regulation issued by this Office to the effect that professionals whose gross annual income is less than P20,000.00 are not required to file the statement of net worth and operations. cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue