Amendment to Section 8-A of Revenue Regulations No. V-1 Re: Independence of Certified Public Accountant

November 13, 1962 REVENUE REGULATIONS NO. 01-63 SUBJECT : Amendment to Section 8-A of Revenue Regulations No. V-1, the Bookkeeping Regulations, Relative to the Independence of Certified Public Accountant TO : All Internal Revenue Officers and Others Concerned SECTION 1. Section 8-A, paragraph (1), of Revenue Regulations No. V-1 is hereby amended by adding thereto the following paragraph: cdtech "An accountant may not audit the books of a taxpayer in which a member of his family, consisting of his spouse, descendants, ascendants, and brothers and sisters living in the family home and dependent upon him for support, owns more than 10% of the capital paid or committed to be acquired. Neither may he audit and certify the financial statements of a company which is controlled and/or owned by his family consisting of his spouse, descendants, ascendants, and brothers and sisters living in the family home and dependent upon him for support nor audit the books of a company of which an immediate member of his family (spouse or child living with him) is either president, manager or director. An accountant is not independent if he keeps the books of accounts as an independent certified public accountant and then certifies the financial statements drawn from the same books kept by him. However, an accountant may be retained as an external auditor of a company and at the same time its stock and transfer agent." SECTION 2. The foregoing amendment shall take effect upon promulgation in the Official Gazette. JOSE B. LINGAD Acting Commissioner of Internal Revenue ATTACHMENT 2nd Indorsement January 31, 1963 Respectfully returned to the Acting Secretary of Finance, Manila, the proposed amendment to Section 188 of Revenue Regulations No. 2 duly corrected in accordance with the instruction contained in the 1st indorsement of that office. JOSE B. LINGAD Acting Commissioner of Internal Revenue November 13, 1962 The Honorable The Secretary of Finance M a n i l a S i r : I have the honor to forward herewith for approval a proposed revenue regulations, amending section 8-A of Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations, relative to the independence of certified public accountants. cdll Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue