Annual Inventories

January 12, 1984 REVENUE MEMORANDUM CIRCULAR NO. 02-84 SUBJECT : Annual Inventories TO : All Internal Revenue Officers and Others Concerned Taxpayers are hereby reminded of the provisions of Section 13 of Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations, quoted hereunder, which requires the filing of annual inventory of stocks-in-trade, raw materials, goods in process, supplies and other goods: aisa dc "Sec. 13. Records of Inventories : Persons required by law to pay internal revenue taxes on business shall keep, in addition to the other books and records prescribed in these regulations, a book of inventories, in which they shall record in detail the quantity, description, unit and total cost of every item of their stocks-in-trade, materials, supplies and other goods found in their premises, of their establishments as the time they start business and at the close of the calendar year or accounting period. The inventory at the beginning shall be made and submitted to the Commissioner of Internal Revenue, if the place of business is in Manila, or to the Deputy Provincial or City Treasurer, if in a municipality or city, within ten days after securing the privilege tax receipts or starting the business and the subsequent inventories not later than thirty days after the close of the calendar year or accounting period. This period may, in meritorious cases, be extended by the Commissioner of Internal Revenue." Inventory lists of taxpayers for the calendar year 1983 are due to be filed on or before January 30, 1984 with the Revenue District Offices, Collection Agent, or duly authorized Treasurer of the municipality in which such person had his legal residence or principal place of business in the Philippines. In addition to the information required to be declared in the inventory list under the above-quoted provision of the Regulations, taxpayers are hereby required to indicate in the inventory list the method of costing or valuing their inventories (e.g. cost or market, whichever is lower, first-in, first-out, average method, specific identification method, etc). Inventories will be subject to verification to determine whether or not the costing or valuation thereof are in accordance with existing revenue regulations. All internal revenue officials, employees and others concerned are hereby enjoined to give this Revenue Memorandum Circular the widest publicity. (SGD.) RUBEN B. ANCHETA Acting Commissioner