Registration of Simplified Sets of Bookkeeping Records

January 17, 1967 REVENUE MEMORANDUM CIRCULAR NO. 19-67 SUBJECT : Registration of Simplified Sets of Bookkeeping Records TO : All Internal Revenue Officers and Others Concerned Section 5 of Revenue Regulations No. V-1, as last amended by Revenue Regulations No. 5-62 provides, viz.: "SEC. 5. Persons required to keep simplified set of bookkeeping records : Persons required by law to pay internal revenue taxes on business whose gross quarterly sales, earnings, receipts or output do not exceed five thousand pesos (P5,000) shall keep and use the simplified set of bookkeeping records recommended by the Commissioner of Internal Revenue and approved by the Secretary of Finance, as defined in section 1 of these regulations, unless they elect to keep the regular books of accounts, (As amended by Sec. 3, Rev. Reg. No. V-13). "Simplified sets of bookkeeping records previously authorized under Revenue Regulations No. V-13 which are not specifically assigned and designated for use of a definite class of trade or business and for which specific sets of bookkeeping records have been prepared in accordance with and authorized under Revenue Regulations No. V-43 shall no longer be used. All persons commencing business after the publication of these regulations shall use the simplified sets provided for in these regulations (Revenue Regulations No. V-43). However, person already engaged in business at the time of the publication of these regulations may continue using their simplified sets of bookkeeping records authorized under Revenue Regulations No. V-13 until December 31, 1962. Thereafter, beginning January 31, 1963, only such forms of simplified sets of bookkeeping records approved and authorized for use in particular line of business or trade under Revenue Regulations No. V-43 are allowed to be used. "A trade or business for which no specific form has as yet been approved pursuant to Revenue Regulations No. V-43 may use a simplified set of bookkeeping records approved under Revenue Regulations No. V-13 until such time when a specific set therefor has been approved under the latter regulations. "The simplified sets of bookkeeping records enumerated in Annex 'A' hereof are the only ones so far approved by the Secretary of Finance in accordance with Revenue Regulations No. V-43." Notwithstanding the amendment effected by Revenue Regulations No. 5-62, however, the use of certain Simplified Sets of Bookkeeping Records approved under the provisions of Revenue Regulations No. V-13 had been authorized by the Secretary of Finance as an exception. Those are the sets prepared by Mr. Vicente I. Cruz which was approved on December 31, 1951 by the Secretary of Finance and bearing on its face the following title: llcd FOR SMALL MERCHANTS (SARI-SARI) IMPROVED SIMPLIFIED BOOKKEEPING RECORDS (As prescribed by Revenue Regulations No. V-13 by the Department of Finance) As the continued use of the Records prepared by Mr. Cruz is not in keeping with the purpose behind the promulgation of Revenue Regulations No. V-43 and 5-62, the authority for said use is hereby considered withdrawn. Not being a certified public accountant and therefore, not qualified to devise a bookkeeping records within the purview of the regulations, Mr. Cruz, in the interim, utilized the services of one, Jose I. Monton, to revise the set he originally prepared to conform with the provisions of Revenue Regulations No. V-43. The revised set was approved by the Secretary of Finance on March 17, 1965. The approved set shows on its face the following title: FOR USE OF SMALL MERCHANT INCLUDING SARI-SARI STORE IMPROVED SIMPLIFIED BOOKKEEPING RECORDS (As prescribed by Revenue Regulations No. V-13 by the Department of Finance) Upon re-examination of the approved Records, however, it was observed that it does not conform with the requirements of Regulations No. V-43. Consequently, the approval given for the use of the revised Records is also hereby deemed withdrawn. In view of the foregoing, the Simplified Set of Bookkeeping Records prepared by Mr. Vicente I. Cruz as well as the revised version thereof represented as prepared by Mr. Jose I. Monton should no longer be accepted for registration. There is another set of Simplified Bookkeeping Records approved under the provisions of Revenue Regulations No. V-13 which appears to be still being offered for sale in the open market. This set was prepared by Mr. Jesus Lozada of the Cosmopolitan Business Agency, Cebu City. As the use of this set is no longer authorized under the provisions of Revenue Regulations No. 5-62, the registration thereof should no longer be also accepted. The Simplified Sets of Bookkeeping Records, the approval of which is still efficacious, are those listed in Annex "A" of Revenue Regulations No. 5-62. Only those records, therefore, as well as those to be approved hereafter should be accepted for registration. Enforcement All concerned are enjoined to enforce the provisions of this circular strictly and to be guided accordingly. LLphil (SGD.) MISAEL P. VERA Commissioner of Internal Revenue 3rd Indorsement April 27, 1967 Respectfully returned to the Commissioner of Internal Revenue, Manila, the within Revenue Memorandum Circular No. 19-67, dated January 17, 1967, withdrawing the use, circulation and sale of simplified sets of bookkeeping records, particularly those prepared by Messrs. Vicente I. Cruz, Jose I. Monton and Jesus Lozada which after re-examination made, were found not conforming with the provisions of Revenue Regulations No. V-43, approved. LLjur (SGD.) EDUARDO Z. ROMUALDEZ Secretary of Finance