Question & AnswerQ&A (Republic Act No. 658)
The main purpose of Republic Act No. 658 is to amend Section 334 of the National Internal Revenue Code, specifically relating to the requirement for corporations, companies, partnerships, or persons to keep books of accounts for internal revenue tax purposes.
All corporations, companies, partnerships, or persons required by law to pay internal revenue taxes are required to keep a journal and a ledger or their equivalents.
Yes. Those whose gross quarterly sales, earnings, receipts, or output do not exceed five thousand pesos may keep and use a simplified set of bookkeeping records authorized by the Secretary of Finance.
Corporations, companies, partnerships, or persons with gross quarterly sales, earnings, receipts, or output exceeding twenty-five thousand pesos must have their books of accounts audited and examined yearly by Independent Certified Public Accountants and must accompany their income tax returns with certified financial statements and other relevant schedules.
They must submit certified balance sheets, profit and loss statements, schedules listing income-producing properties and the corresponding incomes, and other relevant statements.
The Secretary of Finance has the authority to authorize the simplified set of bookkeeping records.
This Act took effect immediately upon its approval on June 16, 1951.
Yes. The books of accounts of entities exceeding the specified sales threshold must be audited and examined yearly by Independent Certified Public Accountants.
The purpose is to ensure that all transactions and results of operations are accurately recorded so that all taxes due to the government can be readily and accurately ascertained and determined at any time of the year.
Republic Act No. 658 amends Section 334 of Commonwealth Act No. 466 (National Internal Revenue Code), as amended by Republic Act No. 438.