Merchants' Books Regulations

February 20, 1923 DOF REGULATIONS NO. 034-23 1 SUBJECT : Merchants' Books Regulations TO : All Internal Revenue Officers and Others Concerned SECTION 1. In accordance with the provisions of Act No. 2803 of the Philippine Legislature in connection with sections 1424 (j) , 1457, and 1459 of the Administrative Code, the following regulations, relative to the books and records to be kept by merchants, are hereby promulgated and shall supersede Circular Letter No. 467 of this Office together with all other rulings and circulars heretofore issued on the subject. They shall be known as "The Merchants' Books Regulations" or Regulations No. 34. TADaCH SECTION 2. Records of Sales. All merchants and manufacturers subject to the fixed and percentage taxes imposed by the Internal Revenue Law shall keep a book in which they shall enter every day in detail, each of their sales that amount to P50 or more, and the daily aggregate amount of sales that are less than P50 each, together with the name and address of each purchaser. Every merchant and manufacturer before using said book shall serially number its pages in a permanent and legible manner and shall present it to the local internal revenue agent or officer for approval. Cash sales and sales on credit shall be entered separately in this book within the period of twenty-four hours following the date on which they are made. If no sales are made on any date, then that fact shall be noted in the book within twenty-four hours under the corresponding date. The book prescribed herein shall be kept substantially as shown in the model below: JANUARY 1, 1923 Value Cash Article Quantity or selling payment Credit Name and address of price purchaser Rice 1,000 kilos P138.00 P100.00 P38.00 Manila Rice Company, 520 Juan Luna Galvanized iron 100 sheets 350.00 150.00 200.00 Juan Medina, 1460 roofing Azcarraga Total 488.00 250.00 238.00 SECTION 3. Records of Purchases. In addition to the records of sales prescribed in the next preceding section, all merchants and manufacturers subject to the fixed and percentage taxes imposed in the Internal Revenue Law shall also keep a book in which they shall enter in detail the quantity of goods, articles, wares, or merchandise bought by them, the price paid therefor, the name and address of the vendor, and the date of purchase. Before using this book, every merchant and manufacturer shall serially number its pages in a permanent and legible manner and shall present it to the local internal revenue agent or officer for approval. Cash purchases as well as purchases made on credit shall be separately entered in this book within the same period as that required for entering sales in the book of sales. The book prescribed in this section shall be kept substantially in the following form: JANUARY 1, 1923 Value or Cash Article Quantity purchase payment Credit Name and address of price vendor Biscuits 1,000 P80.00 P50.00 P30.00 La Perla, No. 9 Plaza Sta. Cruz Rubber tires 4 120.00 100.00 20.00 Pacific Commercial Company, Pacific Building Total 200.00 150.00 50.00 SECTION 4. Exemption from the Use of Internal Revenue Books. Any person or firm who keeps regular commercial books of account, in accordance with the standard system of accounting, reflecting all the data required for internal revenue tax purposes, are exempted from the requirements of these regulations. ACcTDS SECTION 5. Approval of Books. The approval by internal revenue agent or officer of any book to be used for keeping the record of sales or purchases as required in these regulations shall be evidenced by his indorsement on the inner side of the cover thereof in the following forms: Approved for the purposes of Regulations No. 34 of the Department of Finance. Date: _____________________ _________________________ Internal Revenue Officer SECTION 6. Books Open to Inspection of Internal Revenue Officers. All the record books herein described, including regular commercial books of account, shall be kept at all times in the place of business of the taxpayer subject to inspection by any internal revenue officer and upon demand shall immediately be produced and submitted to such inspection. All entries in said books shall be made in ink in a neat and legible manner, and figures entered under all columns shall be added at the close of each month and the totals entered at the foot of the respective columns. SECTION 7. Effective Date . These Regulations shall take effect upon their promulgation in the Official Gazette. Manila, February 20, 1923. ALBERTO BARRETTO Secretary of Finance Footnotes 1. Promulgated March 15, 1923, XXI Off. Gaz., 32, page 566.