Republic of the: Philippines Department of Finance BUREAU OF INTERNAL REVENUE Manila “ March 17, 1947 REVENUE REGULATIONS NOV-1 * The Bookkeeping Regulations Tg all Internal Xevenue Officers and others concerned: CHAPTER I.- Scope and Definition of Terms SEC. 1.- Scope.— Pursuant to the authority granted. in section 4(), of Commonwealth Act No. 466, otherwise known as the National Internal Revenue Code, the following regulations relative to the keeping of books of accounts, records, registers, and the issuance of invoices, receipts, tickets, and other supporting papers and documents by persons ‘subject to internal revenue taxes, and the man- ner of recording business transactions are hereby promlgated and shal] be known’ as Revenue Regulations No. V-1 or “The Bookkeeping: Regulations". SEC. 2. Definition of terms~ As used in these regulations, the ‘following words and phrases shall be taken to mean as follows: "Persons" includes natural persons and partnerships, associa— tions, companies or corporatitas, no matter how created or orga- nized. "Books of accounts" shall include“the journal and the ledger and their subsidiaries, or their equivalents. , "Journal" is a book of original entry in which the happenings or transactions affecting the business of a taxpayer are ee consecutively day by day as they occur. 5 "Ledger" is a book of final entry to Which are posted the clas- sified accounts or items of all/transaction3. entered in the journal or its equivalents. Amer, CHAPTER II.— Books of Accounts and Interial Revenue Books : "All corporations, companies, partnerships, or persons re~ quired by law to pay internal revenue taxe$ shall keep a journal anda ledger, or their equivalents; Provided, however, that ‘those whose gross quarterly sales, arnings, receipts, or out= put do not exceed 75,000 shall, at their option, be exempt from the requirenents of keeping the books above mentioned, but un- less they do keep the same, they mist keep the internal-revenue sales and purchase books and other records prescribed by the Bureau of Internal Revenue and any other additional data that the Secretary of Finance may require by rules aud regulationsand which may be necessary for the accurate determination-of the amount of taxes due the Government." (Sec. 334, Commonwealth Act No. 466.) SKC. 3. Persons required to keep books of accounts .~-Persons required by law to pay internal revene taxes whose ares $ quarterly sales, earings, receipts, or output, whether subject to percentage tax or not, exceed five thousand pesos (¥5,000), are required to keep books of accounts in accordance with the standard dccounting system. The said books of accounts shall consist of a joumal and a ledger, or their equivalents, and shall contain all infor- mation necessary for the accurate determination of the internal- revenue taxes on their businesses. u oe SHC. 4. “Journals, Zedgers,’ and their equivalents The jour- nal may consists of.only one book, the gexeral journal. Its equi- valents may consist of several books such as sales book, purchase book, ash book and” such other books as the taxpayermay find convenient for his business. Such books are also. books of ori- ginal entries where all.the daily transactions, whether cash or otherwise, are recorded in their chronological order. A journal, in order to comply -with the provisions of these regulations, mist contain all the transactions affecting the business. Every entry in the general jourgal shall carry a brief but complete explanation of the nature of the business transaction and be supported by proper vouchers. The general journal shall be in boutid form. Where subsidiary journals are used, the same may be either bound or in loose-leaf form, provided that the entrics in loose-leaf sheets shall be surmarized at the end of every month in the general journal which shall then be posted to the ledger. The ledger, like the journal, may consist of one book, the general ledger. Its: equivalents may consist of several ledgers, such as customers! ledger, creditors ledger, stock ledger, and such other books as the taxpayer may find convenient for his busi- ness. All entries in the journal.mist be posted to the Ledger not Jater than seven days fromthe date of the transaction, and skal] be classified in the ledger so as to show the assets, liabilities, capital, and the operating accounts from wnich a balance sheet, and a profit and loss statement covering the operation of the business can be prepared. No entry shali be nade in the ledger or its equivalents unless said entry originates from the journal or its equivalents. The general ledger shall be in bound form. Where subsidiary ledgers are used, the same my be either in book form or in loose-leaf forn, provided that the entries in the Joose-leaf subsidiary ledger are reflected’ in the gencral ledger by a controlling account. In meritorious cases and upon written authority of the Col- lector of Internal Revemie the use of the general journal and the general ledger in loose-leaf form my be allowed. ~SEC. 5. Internal-revenue books; when required.— 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 (#5,000) may, at their option, keep the regular books of accounts} otherwise, they shall keep the intemal-revemie purchase and sales or receipts book and ext boc age ‘tha rev Tre in, fiv on or bocof the Leh Act >ersons varterly reentage ‘ed to unting nal nifor- rnal~ jour- s equi- rchase ad ori~ ior umal, wery re in y be expense book. . SEC. 6, Transactions to be recorded in internal-revenne books. livery sale or receipt amounting to ?50 or more and the ageregate amount of the daily sales or receipts that are less than £50 each shall be recorded every day in the intemal~ revenue sales book or the internal revenue book of receipt s. Transactions in cash or on credit shall be entered separately in the sales book or in the book of receipts not later than five o'clock in the afternoon of the day following the date on which the transactions were affected. If there are no sales or receipts during any day, that fact shall be noted in the book within the same period. ALL purchases and expenditures shall be recorded every day in the internal-revenue purchase and expense book showing * in detail the quantity and description of the articles purchased, the services rendered, or the expenses incurred, the name and address of the vendor, lessor of the service, or person recei~ ving payment, and the date and the amount of the transaction. Any cash transaction, as well as any transaction on credit, shall be recorded separately in this book not later than five o'clock in the afternoon of the day following the date the particular transaction was effected. 7 The books prescribed in this section shall conform subs— tantially with Forms "A",+"4-1", and "B" of the Appendix. (Pages 25-27 hereof.) : SEC. 7. Records of receipts and disbursements.—-All persons subject to any intemal-revenue tax on their occupation, pursuit or calling of whatever nature, or on their income, such as pro=" fessionals, farmers, property owners, etc-, shall, unless they provide themselves with the journal and the ledger or their equi- valents, keep a record of their receipts and disbursements. All entries therein shall be ‘made not later than five o'clock in the afternoon of the day following the date the transaction was effeced. However, a person whose only source of-income is his salary shall be exempt from keeping the records prescribed in these regulations. SUC. 8. Entries to be kept“up to daté in ink or indelible pengil.--All entries in the books of accounts and other records mist be kept up to date in inkéor indelible pencil in a neat and legible manner, and the figures! entergg in all columns shall be totalled within twenty-four hours from and after the close of each calendar month and the totals posted at the foot of the res- pective colums- All transactions, the time of posting or entry of which is not specifically provided for in these regulations, shall be recorded within seven days from the date the transactions were effected. rds CHAPTER ILI.~ Other Books and R "ALL corporations, companies, partnerships, or persons keep- ing the books of accounts mentioned in the. preceding section my, at their option, keep such subsidiary books as the needs of their business may require: Provided, That where such subsidiaries-4- are kept, they shall form part of the accounting system of the tax- payer and shall be subject to the same rules and regulations as to their keeping, translation, production, and inspection as are ap- plicable-to the journal and the ledger." (Section 335, Common- wealth Act No. 466.) SEC. 9. Subsidiary hooks.— Persons required to keep the books and records mentioned in section 334 of the National’ Internal Re- Venue Code may , at their option, keep such subsidiary books as the needs of their business may require and such other books as may be required by these regulations. Such books shall be sub— ject to the same rules and regulations as are applicable to the journal and ledger presgribed-in Chapter Ii hereof. SUC. 10. Records to be kept by proprietors or operators of rope factories, sugar centralsy and desiccated cxcomut factories.- Aside from the books and othersrecords required in Chapter IT of these regulations, proprietors or operators of rope factories, sugar centtals, desicéated coconut factories and other factories subject to the percentage tax on the gross value of their output or gross sales of their products shall keep true and correct re- cords of their purchases of raw materials, the finishéd préducts and by-products. The record of purchases of raw materials shall indicate the kind and quaitity of, raw materials received, the unit price, and the total value of the said raw materials, the date of receipt, the number of receipt issued therefor, and. the name, address and residence certificate of the persons from whom the Taw materials were purchased. The record of finished products and by-products shall state the date of production, and the kind and quantity of the finished products and by-products, and the record of removals shall show the date of removal, the number of the invoice issued therefor, the kind and quantity of the finished Products or by-products, the unit price and the total seeling price or market value thereof, and the name, address and residence certificate of the purchaser or the person to whom delivery is nade. ‘The proprietor or operator of a factory or mill, may adopt such system of keeping his records as may be convenient for his business, provided that the system adopted truly reflects all his transactions and his books contain all the desired information. ALL His purchases shall be covered by the corresponding receipts, except when the person from whom the same are made has issued invoices therefor in which case, the proprietor or operator may. keep the said invoices in lieu of issuing receipts therefor, pro- vided that said invoices show the information herein required. livery removal of the finished products or by-products shalk-be covered by an invoice, showing the date.of removal, the kind and quantity of the finished product or by-product removed, “thé unit price and the total selling price or market value thereof, and the nane, address, and residence certificate of the purcha— ser or the person to whom.delivery is made. Proprictors or owners of rice mills and corn mills shall keep the records and issue thereceipts and invoices prescribed in Revenue Regulations No. 7 (iice and Corn Mills Regulations). SEC. 11. Record of jobs received by contractors. Road,’ BG building, waterworks, and other construction work contractors and other persons subject to tax under section $91 of the National Intemal Reveriue Code shall, in addition to the books and other records required in Chapter IT ‘of these regulations, keep a re- gister book for job orders received in which tiey shall enter ‘immediately upon making a contract the dgte, name and address of the customer, a description of the articles to be:constructed or the services desired, the consideration therebr, and the amount of deposit or partial payment, if any} and upon completion and delivery of the subject mtter of the contract, the date of completion or delivery and the amount paid therefor. “Keepers of hotels and lodging houses may, in licu of the records of jobs received, keep a guest register book in which shall be entered immediately upon accepting a guest the date and time of his arrival, the nane and address of the guest, and the number of the room to be occupied; and, upon cuecking out, the date and time of hiS departure, and the amount paid by him.. The entries shall be numbered consecutively for purposes of reference. The books yrescribed herein shall conform substantially with Form NC" of the Appendix. (Page 28 hereof.) In case any of the taxpayers enumerated insection 191 of the National Internal Revenue Code finds the use of the register book for jobs received impracticable for his business, he may devise such systen of keeping his books and other records as my be appropriate fof his particular business and submit said books and records for approval to the Collector of Internal Revenue if his place of business is in Manila, or to the provincial revenue agent, if in the province. No such books and records may be used until they are duly approved in accordance with section 19 of these regulations. SHC. 12. Records to be kent by brokers.- Aside’ fromthe books and other records required in Chapter I! of these regula~ tions, stockbrokers, dealers in securities, real estate brokers, veal estate dealers, commercial, customs ant immigration brokers shall use serially numbered contract forms, which shall be issued in chronological order, for each agreenient had with their custo- mers, showing the date and other facts coicerning the services rendered or to be rendered and the signature of the parties there- to. The contracts shall be recorded every day ina register book showing the date and number of fhe contract, the name of the cus— tomer, the services desired, the subject matter and the value there of (incase of properties), the compensation agreed upon’and the duration of the contract} and upon termination of the contract, a remark as to the date and mumber of the receipt issued for the compensation received. ‘The contracts shall be filed in the office of the broker in mmerival order together with copies of all papers concerning the transactions. . In case of commercial brokers representing foreign ‘companies, copies of the orders such as cablegrams, telegrams, radiograms, etc, shall be filed with the corresponding file copies of the contracts.These pertinent papers need not be filed with the file copies of the contracts where a filing system is employed such that said pepers are readily available by reference appearing on the file copies of the contracts.su. 13. Persons required by law to pay internal-revenue taxes on business shall keep, im addition to the other books and records prescribed in these regulations, a book of inventories, in which they shall record indetail the quan- tity, description, unit cost, and total cost of every iten of their stocks-in-trade, materials, supplies and all otler goods found in the premises of their establishments at 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 Collector of Internal Revenue, if’ the place of business is in Manila, or to the deputy provincial or city treasurer, if in a mmnivipality or city, within ten days after securing the pri- vilege tax-receipt or starting the business, and/the subsequent inventories not‘latér than thirty days after the closeof the ca~ lendar year or accounting peried. This period nay, in meritorious cases, be extendedsby the Collector of Internal Revenue. * Deputy provincial and city treasurers shall, upon receipt of Such inventories," immediately send the sane to the correspond- ing provincial revenue “agent who shall keep and preserve them for purposes of reference. CHAPTER IV: Invoices or Receipts "ALL persons subject to percentage tax shall, for each sale or transfer of merchandise or for services rendered valued at two Pesos or more prepare and issue sales or comercial invoices or receipts serially nunbered in duplicate, showing, among other things, their names, or styles, if any, and business address: Provided, That in case of sales, receipts or transfers in the amount of fifty pesos or more the invoices shall further show the name or style, if any, and business address of the purchaser. The original of each sales invoice or reveipt shall be issued to the g purchaser or customer who, if engaged in any taxable business, shall keep and preserve the same in his place of business’ for a period of five years from the date of the invoice, the duplicate to be kept and preserved by the person subject to percentage tax, also in his place of business for a like period: Provided, That persons subject to percentage tax whose gross sales or receipts during the last preceding year exceed twenty thousand pesos shall, for each sale or transaction, issue an invoice, irrespective of the value of the articles sold or service rendered. “The Collector of Internal Revenue may, in meritorious’ cases, exempt any person subject to percentage tax from compliance with the provisions of this section." (Section 204, Commonwealth Act No. 466, as amended by Commonwealth Act No. 526 and section 9, Republic Act No. 48.) e SEC. 14. Vouchers for traisaction.- Persons saying internal revenue taxes who are required to keep the books of accounts men- tioned in section 334 of the ational Internal Revenue Code shall have a voucher for each entry in their books. The voucher may be an invoice, receipt, check or other document, which shall shew the details of each transaction. ‘ Persons subject to the percentage tax shall issue a sles or commercial invoice for each sale or transfer of merchandise or for‘orious pe pond~ ‘nal-revenue sales book or book of receipts. If the gross sales 7- services rendered valued at ¥2 or more. In case the transaction is valued at less than £2, the taxpayer need not issue any in- voice, but unless. it is issued, the transaction mst be recorded immediately after it is effected in a record of petty sales or transactions the entries in which shall be ‘summariezed at the end of the day and the total transferred to the journal or inter- or receipts of a person during the preceding year exceed #20,000, every sale or transaction effected by him shall. be covered by an invoice, irrespective of the amount of the sale or transaction. . Persons’ paying internal-revenue taxes other than the per- centage tax shall issue an invoice or receipt for any amount of money received by them in connection with their business. How~ ever, in case the amount received is less than #2, no invoice or receipt need be issued, but unless it is issued, the amount mst be recorded immediately upon receipt thereof in-a record of petty sales or receipts, the entries in which shall be summarized at the end of the day and the total transferred to the journal or intemal-revenue sales or receipts book. The record of petty sales or receipts may be.dispensed with “if agash register mchine with roll sheets is used to record all petty transactions. The entries in the roll shects shall be summa- rized at the end of the day and the total transferred to the jour- nal or to the-internal-revenue sales or receipts book. The said roll sheets shall’ be identified by the signature or initials of the taxpayer or his bookkeeper or manager and shall show the dates of the transactions tyrein recorded. Every purchase’ or expenditure by a taxpayer subject to these -regulations shall also be supported by an invoice or a receipt issued by the vendor or the person rendering the service. In case an invoice or a receipt is not issued, the taxpayer concerned shall require the vendor to sign a purchase or expense voucher showing the date, the quantity and description of the articles purchased or the servives ‘rendered,the consideration paid therefor, and the name and address of the yendor or lessor together with the munber, date and place of issue of his residence certificate. The Collector of Internal Reyenué may, in meritorious ¢ases, exempt a person from compliance with these regulations. SHC, 15. Form and manner df issuapce of invoices and receipts.— An invoice or a receipt, in ordeb-to camply with the requirements of these regulations, mst be serially numbered and made at least in duplicate. They shall, be bound in the form of booklets or pads of 50 or 100 each, and shall show, among other things, the name and address and the business style, if any, of. the person issuing the same, and shall contain such columms as may be necessary and appropriate for the business of the taxpayer concerned. The in= voices or receipts may have as many duplicate copies as may be necessary for the purposes of the taxpayer, but the duplicate copies shall bear the same serial mumber as the original. Where the transaction is required to be “Gevered by an invoice or receipt, the same shall be issued at the time the transaction is effected and the original theresf delivered to the purchaser-a- or to the person from whom payment is weceived. In the caso of sales invoices, they shall show the date 6f the transaction, the quantity and description of the merchandise, the unit cost, and the total price. In case of a sale or transfer in the amount of ¥50 or more, the: invoice shall also show the name, or style, if any, the business address of the purchaser, and the number, date, and place of issue of his residence certificate. In the case of other invoices, they shall show the date, the description of the articles or the nature of the service, the consideration paid therefor, and the name, address, and residence certificate of the person furnishing the articles or rendering the serviée. The re— sidence certificate need not appear in the invoice when the other party to the transactiog-is a-corporation or a registered partner ship or-assoviation. + SUC. 16. Freight stub receipts and passage tickets required of gonmon carriers.--Comnon carriers, transportation contractors, and other persons subject to tax under section 192 of the Natio~ nal Intefnal Revenue Code shall use freight stub receipts and < Passage tickets in duplicate to be printed in aceordance with ‘such form as the Public Service Commission may; from time to time, prescribe. In ‘issuing thefreight stub receipt, the carricr or his agent shall enter in both the original and the duplicate the name and address of the carricr, the date of issue, the names and addresses of the shipper and the consignee, description of the goods’ shipped with a statement of their weight or quantity, the place of delivery to the carrier and the destination of the goods, the route to be followed, the date of’ shipment, and the amount of freightage. Lvery receipt issued @ust be signed by. the carrier or his authorized agent. Passage tickets shall, also be in duplicate and mist sliow the points of embarkation and destina— tion and the amount of charges. The original mst be delivered to the passenger or the shipper, and the duplicate rotained by the carrier for record purposes and preserved for a period of five years from the date of issue. However, passage tickets my not be issued in duplicate if conmon carricrs employ the services of inspectors or car auditors, cte. to check and supervise the is- suance of the passage tickets by their conductors and if they keep in their office daily record of the nunber,of tickets issued to every conductor as well as the mumber of tickets returned by each conductor after each trip or day's work. SEC. 17. Adwission tickets and ather records to be issued or kept by person subject to amisement tax.- In the case of amuse~ ment or business places where fees or cover charges are required to be paid for admission, the proprietor, lessce or operator. shall evidence payment of fees or cover charges. The tickets shall bo serially numbered and shall indicate the name of the place of anuse~ ment or business and the fees of cover charges. ‘he serial mmber of each ticket ad the admission fee or cover charge shall be printed on the ticket twice such that when the ticket is divided into two upon being presented for admission, both the serial num ber and the price shall appear on both parts. Before the proprietor, lessee or operator. of the place of amusement or business orders tickets for printing he shall first send to the Collector of Internal Revenue, if the business is located in Manila, or tothe provincial révenuc agent or deputy prov noti he i. sive tota oro issu the: busi or d appr ter amis for appr the seri pror nes: of 1 tert soli sh in Th50 of n, the » and unt of e, if > date, ase of of the aid of the the re~ > other vartner- quired ctors, atio~ nd « th ° arrier cate names on of ity, the she dy. the rbe tina red = - provincial or city treasurer, if in the province, a written notice stating the name and address of the printer with whom he intends to place the order, the classes of tickets, the inclu- sive serial numbers, the admission fee or cover charge, and the total numberof each class of tickets. The proprietor, lessce or operator shall keep for recard purposes the invoice or receipt issued by the printer covering the order. Before being used, the tickets shall first be presented to the Collector of Internal Revenue, if the plave of amisement or business is located in Manila, or to the provincial revenue agent or deputy provincial or city treasurer, if in the province, for approval and registration. ‘The said officers shall keep a regi ter of tickets in the form of a ledger, such that each place of amsement or business shall have a separate account or record for the purpose of entering therein all the tickets presented for approval and registration, indicating the date of rogis tration, the classes of tickets, and the admission prices, the inclusive serigl numbers, and the number of tickets of cach class. The propfictor, lessee or operator of the place of ammsement or busi- ness shall likewise keep a true and correct record of his stock of tickets, indicating the total number of registered and” unregis— tered tickets, and of the registered tickets, how mich has been sold from day. to day. ALL such proprietors, lessees or operators shall prepare monthly statenents of the daily box receipts from adhission fees or cover charges, showing the total mumber of cach particular ¢ class of tickets sold, the unit price of each class and the tot amount collected, dul} signed by the proprietor, lessec, or ope~ * rator, or by his manager. The said statanents shall bo submitted to the Collector of Intemal Revenue, if the place of amsement or business is in Nanila, or to the depity provincial or city trea~ surer, if in the province, not later than the 10th day of cach month'as regards’ the gross receipts fer the preceding month. Du plicate copies of the said statements shall be kept by the pro- prietor or operator at the box office as part of his accounting system and the same shall be preserved in the same manner as the books of accounts and other records. ~ Other persons subject to tax under section 260 of, the Watio~ “nal Internal Revenue Code shall Keep true“and corréct records. of their gross receipts. In case any of the records and registers hereinbefore mentioned are not Appropriate for their business, they shall devise a system for hekondipg thei receipts appropriate for their business and submit the same, before they are used, to the Collector of Internal Revenye, if the place of business or amisenent is in Manila, or to the provincial revenue agent or city or deputy provincial treasurer, if in the province, for registra tion and approval. : CHAPTER V.— General Administrative Provisions MALL such corporations, companies, partnerships, or persons shall keep the books or records mentioned in section 334 hereof in a native language, Inglish, or Spanish; Provided, however, That if in addition to the said books or records the taxpayerrol keeps other books or records in a language other than a native language, Unglish, or Spanish, he shall make a truc and complete transhtion of all the entries in such other books or records into a native language, English, or Spanish, and the said translation mist be made by the bookkeeper of such taxpaycr or, in his absence, by his manager, and mst be certified to under oath as ‘to its cor- rectness by the said bookkeeper or manager, and shall form an in- tegral part of the books of accounts aforesaid." (Section 336, Coimonwealth Act No. 466, as amended by section 12, Republic Act No. 48.) . "All the books of accounts, including the subsidiary books, and other accounting recogds, of-such corporations, companies, part- nerships, or persoris shall: be jteberved by them for a period of at least five years from the date of’the last entry in each book and shall be subject to examination and inspection at any time by in- ternal-revenue officers: Provided, That all corporations, companiés, partnerships, or persons who retire from business shall, within ten days from the date of such retirement or within such period of time as my be allowed by ‘the Collector of Internal Revenue in spe- cial cases, submit their books of accounts, including the subsidia~ ry books, and other accounting records, to the Collector of Initer- nal Revenue or any of his deputies for examination, after which they shall be returned." (Section 337, Commonwealth Act Ko. 466.) SEC. 18, Language to be used _in keeping books of accounts and_supportil FSi translation of entrics in other books and records.— The books and records prescribed in scction 334 of the National Internal Revenue Code shall be kept in a native language, English, or Spanish. The vouchers and other supporting papers and documents, being part of the accounting system, shall likewise be kept in @ native languages inglish, or Spanish. However, per- Sons who keep other books in addition to the books and records prescribed in section 334 of the Tax Code in a language other than’ a native language, Inglish, or Spanish, shell, within ten days from the date of the transaction, make a true and complete translation thereof into a native language, Inglish, or Spanish, the said translation to form an integral part of such books, re- gisters and records. The translation shall be made in'a neat and legible manner: * » in ink or indelible pencil, either on the same page of the books, registers or records, opposite or below each entry or on a sepa- rate page opposite the page to be translated. ‘The taxpayer, or his bookkeeper or manager, shall certify to the correctness of the translation of the entries in the book, register, or record by exccuting, within ten days after each book has been filled or its use completed, a certificate to be sworn to before a notary public or an intemal-revenue officer authorized to administer oaths. The certificate shall be placed immediately following the'translation of the last entry on the last page of each book and shall be substantially in the following form: s regist keep b and di: and re regula regist tor of to the city t: A regi, ‘been a: of app the nu, ficate, graph i ness ii the box record each ty Li corded the nar ‘schedul ‘the nun jof the-u- “CERTIFICATE, OF CORRECTNESS "I hereby certify that the foregoing trantation is a true and complete translation of all the entries contained in this covering the period to Bs (Owner; Bookkeeper, or ‘Nanager)+ "Subscribed and’sworn to before me at : » Philippines, on this » i94_” day of Internal Revenue Agent or Notary Public." SUC. 19. Prior pproval and registration of books of accounts, registers, records, invoices and receipts.- Persons required to keep books of accounts, internal-revenue books, records of receipts and disbursements, additional registers and other records, invoices, and receipts for recording their transactions as prescribed in these regulations shall, before using any of the aforesaid books, reconis, registers, invoices} or receipts, first present them to the Collec. tor of Internal Kevenue, if the place of business is in Nanila, or to the provincial revenue agent or to the depyty provincial or city treasurer, if in the province, for approval and rogistration. A register book for every book; register, or record which has been approved shall be kept showing such information as the date of approval; the name and address of the taxpayer; his citizenship; the number of the alien registration certificate or landing’ certi- ficate, if an alien; the kind of business and.the schedule, para- graph and mmber of the privilege tax-receipt issued for the busi- ness if any; and the kind, volume, numberof pages or shects of the book, register or recard approved.” Bery’ book, ‘register, or * record so approved and registered shall be serially numbered for each ‘taxpayer. Likewise, all approved invoices and receipts shall be re- corded ina register showing such data as the date of approvals the name, address, and the kind of business of the taxpayer} the Schedule, paragraph, and number of his privilege. tax-receipt} and the number of booklets or pads and the inclusive serial numbers of the invoices or receipts this approved. : Before ordering invoices or receipts for printing, a tax- payer. shall. send to the ollector of Intemal Revenue, if his placed business is in Manila, or to the provincial revenue-12- agent or city ov deputy provincial treasurer, if in’ the province, a written notice of the name and address of the printer with whom he intertds to place the order, and the total number and the inclusive serial numbers of the invoices or receipts ordered. Before any book, register, or record is presented for regis- tration, there shall be placed on the front cover by the ovner thereof an identification as to the kind of book, register, or record, the name and business address of the owner, citizenship, the number of the alien registration certificate or landing ccr— tificate, if an alien, the kind of business engaged in, and the schedule, paragraph, and number of the priviloge tax-receipt issued for the:businés’, if-any. The pages of the book, register or record must be serially numbered in a permanent and legible tanner. If a book, register, or record is approved, the follow ing authentication shall be jade by the approving officer on the revérse side of the front cover thereof: " “This”. » Volume No. with pages or sheets, is approved on this a day of 5 194, for purposes of Revenue Regulations Now Signature) o (Wesigation of Officer)” If the book, register, or record presented for approval is a contimation of previous books, registers, or records, besides the foregoing authentication, the following notation shall be added to the authentication: "Volume Ko. of this vas approved on the day of » 194, (Signature) Designation of Oificer)™ In the case of invoices and receipts, the approval shall be indicated by an appropriate stamp placed on the front cover” and on the back page of the last invoice or receipt of the booklet or pai approved, together with the’ signature of the officer autho~ rized to approve the sane. SUC. 20. Inspection of books, registers and records. ALL books, registers and other records, and vouchers and other‘evince, th tid the ed. regis- wner > oF ship, g cer- d the pt egister ible sLlow- on the Lisa des De 1 be and et or ho- AlL -B- records, and vouchers and other supporting papers required by “these regulations shall be kept at all times at the place of busi~ ness of the taxpayer, subject to inspection of any internal-revenue qfficier, and upon demand, the same mst be immediately produced and. submitted for inspection. When required by inspecting of fi- cers, the owner, bookkeeper, or manager shall give the necessary explanations regarding the items in the entries contained in the said books, registers and records. In the case of a branch store, or where the controlling books are kept in a place other than the business establishment, there shall be kept in the store or busi- ness ‘establishment such books and records as would clearly reflect all the transactions effected therein, ‘Wien the books, register, record and other papers are needed by an internal-revenue officer for examination outside of the taxpayer's place of business, the said officer shall issue a receipt therefor on the required in— temal revenue form. After making the inspection or examination of the said books, registers, records and papers, the internal- revenue officer shall make a certificate or notation on the inner Bide of either cover of the book examined, stating thereon the extent of his eximination and his findings. SHC. 21. ‘Preservation of books of accounts and other records. All the books, registers, records, vouchers, and other, supporting papers and documents prescribed in these regulations, and other records kept by taxpayers at their option, shall be preserved in- tact, unaltered, and unmutilated for at least five. years from the date of the last entry in each book or from the date of ‘the last transaction,and the same shall be kept at all times in the place of business of thetaxpayer, who shall. produce. thom for examination or Ucliver the same or any of them for inspection outside of his place of business upon demand of any internal-revenue officer. SEC. 22, Submission of books and records upon retirement, ALL taxpayers required by these regulations to keep books of accounts or other records who tetire from business or cease to pursue their calling shall, within ten (10) days from the date of such retirement, or within such period of time as my be allowed by the Collector of Internal Revenue in special cases upon appli- cation therefor in writing, submit theif books of accounts and other records pertaining to their business, incliiding the transla- tions thereof, to the city treasurer or the depity provincial trea~ surer for examination. The city treasurer pr the deputy provincial treasurer shall keep all such bgoks and records in a secure place and notify the corresponding previncial revenue agent of the re- ceipt thereof within forty-eight hours##fter the neceipt of such books and other records. An examination of such books of accounts and records shall be conducted inmediately by an internal-revenue officer to ascertain if all the taxes due from the taxpayer have been’ paid. SEC. 23. Return of books and records.~ The books of accounts and othor records mentioned in the preceding scction shall not be retumed until after the taxes, charges, and penalties found to be due, if any, shall have been paid, unless authority to do so shall have been first secured from the Collector of Internal. Revenue. _ Furthermore, in case a violation of any provision of the. internal revenue laws or regulations has been committed by a taxpayer and, said books, of accounts and records constitute the ‘evidence of such-u4- violation, they. shall not be returned until after the casc.shall. have been finally? settled. After the books of accounts afd records have served the purpose for which they were takcn or submitted, the Collector of Internal Revenue shall notify the tpxpayer or his re- presentative to get the books and other records? If the books and other records are not taken by the taxpayer or by his representative the same shall be destroyed by the Collector of Internal Revemue- within six months from the date of said notice. Books held by in= temal-revenue officers for examination in the provinces shall be destroyed by the provincial revenue agents only upon previous autho- rity of the Collector of Internal Revenue. at so eH CHAPTER VI.—-Goneraf Penal Provisions "A person who violates any provision of this Code or any regu~ lation of the Department of Finance made in conformity with the same, for’ which delinquency no specific penalty is provided by law, shall be punished by a fine Sf_not more than three hundred pesos or by impresonnent for not more than six months, or both." (Sec. 352, Com monvealth Act. No. 466.) “any person who knowingly shall make a false entry or enter a false or fictitious name in the books or records mentioned in sec— tion 334 and 335 of this Code, or who shall abet or aid in any man— ner in the making or writing thereof, shall be Tined in a sum of not less than five hundred pesos nor more. than five thousand pesos or imprisoned for a term of not’less than six months and one day nor more than five years, or both. "Any person who fails to keep the books or records mentioned in section 334 in a native language, Inglish, or Spanish, or to make a true and complete translation as required in’ scction 336 of this Code’ or whose books or records kept in a native language, Inglis, or Spanish are found to be at material variance with books or re- cords kept by hifi in another language, shall be fined in a sum of not less than two thousand pesos nor mor2 than ten thousand pesos or imprisoned for a term of not less than two years nor more than, six years, or both." (Sec..355, Coumonwealth Act No. 466, as amended by’sec. 13, Republic Act Now. 48.) SUC. 24. Penalty for making false entries or writing false fictitious names in books or records.— Any person who know- ingly makes any false entry or writes any false or fictitious name in his books of accounts or other records, or who abets or aids in the making or writing thereof, is punishable under section 355 of the National Internal Revenue Code by a fine of not. less than ¥500 nor more than £5,000 or by imprisonment of not less than six months and one day nor more than five years, or both. In, order to obviate the possibility of catering false or fictitious names in their books, taxpayers should required per- sons with whom they have transactions which. should be entered-in their books to exhibit their residence certificates, if subject ‘thereto, and take note of their number and the date and place of > issue. 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MOOG SIGH HSVO -- “IT XIaNHaaV APPENDIX I. -- SALES BOOK Form A General Mer- | General Mer- ‘Exempt chandise chandise B-5; B-9 Sales } Sales Date. | Name and Address of Customer | Invoice= — —- a —j—l sesuadxg'| porduoxy | et-p | pt-9 | 24pa19 | usep | zequnN, “geypueyszay Jo uoTadyx9s0q pus Aqrquend aaeq -—sisviomaa 1 2ozoauy 30ss37 30 TOpuoA JO ssozppy pUE aweAL = 7 o @ wiog MOM ISNTEXE NV ASHOUMa ~~ “TIT XtaNaGayaeons ed a ee ee = ——— ee | qunn i aurz | _aaeg | 7a ysonp 50 ssazppy pus our, | aurz | reg | “xoquan aanqitdeg Ls Teataay] Azjuq | : aie yOOd YELsIOM Isao ~~ “AI XIGNEadvshalt d records tted, the his re- woks and esentative evenue by in- hall be ous autho- any reeu- 1 the same, wy shall or by 352, Com enter a any oan- unt of not sos or ay nor tioned of this ‘nelisH, sum of pesos > than than din ed in 15 - section 334 of the Sational Internal Revenue Code in a native language, inglish, or Spanish, or to make a tree and complete translation of books kept in other languages into a native lan~ guage, inglish, or Spanish, or whose books or records kept in a native lanenaye, wnglish, or Spanish are at mterial variance with books or records kept by him in another language, is liable to a fine of not less than .2,000 nor more than £10,000, or impri- sonment for not less than two nor more than six years, or both. SUC. 25. Pens ‘or violation of other provisions of these regulations. any person who shall violate any provision of these regulations for vhich violation the National Internal Revenue Code or any other law does not provide any specific penalty shall be penalized, under section 352 of the aforesaid Code, by a fine of Hot nore than +300 or by imprisonment of not more than six mpnths, or both Repealing provisions. Regulations Hos. 34, 48, 58, 84, 91, 101, 105 and 108 of the Department oF Finance and other re- gulations inconsistent herewith are hereby repeqled. suc. of offe ivity.~ These regulations shall take effect upon their promlgation in the Official Gazette MIGUEL CUADERNO, Sit. Secretary of Finance Recommended by: BIBIANO L. MER Collector of Internal Revenue