SEC. 232. Keeping of Books of Accounts. -
(A) Corporations, Companies, Partnerships or Persons Required to Keep Books of Accounts. - All corporations, companies, partnerships or persons required by law to pay internal revenue taxes shall keep a journal and a ledger or their equivalents: Provided, however, That those whose quarterly sales, earnings, receipts, or output do not exceed Fifty thousand pesos (P50,000) shall keep and use simplified set of bookkeeping records duly authorized by the Secretary of Finance where in all transactions and results of operations are shown and from which all taxes due the Government may readily and accurately be ascertained and determined any time of the year: Provided, further, That corporations, companies, partnerships or persons whose gross quarterly sales, earnings, receipts or output exceed One hundred fifty thousand pesos (P150,000) shall have their books of accounts audited and examined yearly by independent Certified Public Accountants and their income tax returns accompanied with a duly accomplished Account Information Form (AIF) which shall contain, among others, information lifted from certified balance sheets, profit and loss statements, schedules listing income-producing properties and the corresponding income therefrom and other relevant statements.
(B) Independent
Certified Public Accountant Defined. -
The term "Independent Certified Public Accountant", as used
in the preceding paragraph, means an accountant who possesses the independence
as defined in the rules and regulations of the Board of Accountancy promulgated
pursuant to Presidential Decree No. 692, otherwise known as the Revised
Accountancy Law.
SEC.
233. Subsidiary Books. -
All corporations, companies, partnerships or persons keeping the books
of accounts mentioned in the preceding Section may, at their option, keep
subsidiary books as the needs of their business may require: Provided,
That were such subsidiaries are kept, they shall form part of the accounting
system of the taxpayer and shall be subject to the same rules and regulations
as to their keeping, translation, production and inspection as are applicable
to the journal and the ledger.
SEC.
234. Language in which Books are to be Kept; Translation. -
All such corporations, companies, partnerships or persons shall
keep the books or records mentioned in Section 232 hereof in native language,
English or Spanish: Provided, however, That if in addition to said
books or records the taxpayer keeps other books or records in a language
other than a native language, English or Spanish, he shall make a true
and complete translation of all the entries in suck other books or records
into a native language; English or Spanish, and the said translation must
be made by the bookkeeper, or such taxpayer, or in his absence, by his
manager and must be certified under oath as to its correctness by the said
bookkeeper or manager, and shall form an integral part of the aforesaid
books of accounts. The keeping of such books or records in any language
other than a native language, English or Spanish, is hereby prohibited.
SEC.
235. Preservation of Books and Accounts and Other Accounting Records.
-
All the books of accounts, including the subsidiary books and other accounting
records of corporations, partnerships, or persons, shall be preserved by
them for a period beginning from the last entry in each book until the
last day prescribed by Section 203 within which the Commissioner is authorized
to make an assessment. The said books and records shall be subject to examination
and inspection by internal revenue officers: Provided, That for
income tax purposes, such examination and inspection shall be made only
once in a taxable year, except in the following cases:
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Computer Systems, Inc. |
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