Submission of Details of Purchases in Reports of Investigation

August 20, 1964 REVENUE MEMORANDUM CIRCULAR NO. 33-64 SUBJECT : Submission of Details of Purchases in Reports of Investigation TO : All Regional Directors, Chief Revenue Officers and Others Concerned In order to enable this Office to compile statistics from the income tax returns filed and to countercheck the different items shown in the said returns, the following procedure is hereby promulgated for the guidance of all concerned: cdpr 1.All field audit reports covering investigation of income returns where the gross sales is an element in the determination of the gross income should be accompanied, in addition to the required working papers, by a detailed list of purchases showing date of purchase, invoice No., name of the seller, address, amount and brief description of the merchandise or materials purchased, in accordance with the following: a.On all income tax returns whose gross sales exceed P500,000.00, the detail of the purchases should be limited to every single purchase amounting P5,000.00 or more. b.On all income tax returns whose gross sales exceed P100,000.00 but not more than P500,000.00, the detail of the purchases should be limited to every single purchase of P1,000.00 or more. 2.The requirement in the preceding paragraph is applicable to income tax returns for the year 1963 as well as income tax returns for previous years which have not yet been investigated or reported. 3.Examiners who been assigned to investigate the percentage tax cases of taxpayers for the period from January 1 to June 30, 1964 are required to submit the abovementioned information for the transactions during the said period in accordance with the following: a.On all percentage tax returns whose gross sales exceed P250,000.00 during the six (6) months period, the detail should be limited to every single purchase of P5,000.00 or more. b.On all percentage tax returns whose gross sales exceed P50,000.00 but not more than P250,000.00 for the six (6) months period, the detail of the purchases should be limited to every single purchases of P1,000.00 or more. 4.In the case of taxpayers paying the graduated annual fixed tax (C-13), Regional Directors and Chief Revenue Officers are required to submit a list of all taxpayers paying the graduated annual fixed tax (C-13) within their respective jurisdiction who have already been investigated showing the name of the taxpayer, the address, the name of the examiner, authority to investigate, date reported, amount of tax paid, official receipt No. and nature of the business. A copy of this list should be forwarded to the National Office within thirty (30) days from the receipt hereof. Strict compliance of the provisions of this Revenue Memorandum Circular is hereby enjoined. LibLex (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue