Language of Books and Inspection Fees
- Books of account kept in languages other than English, Spanish, or a native dialect must pay an inspection fee to the BIR.
- Inspection fee rate: one centavo per page (up to 750 sq. cm), with proportionate additional fee for excess size.
- Fee collected only once upon original inspection.
- Payment due within 10 days after notice and demand; a 50% surcharge applies if payment is late.
- Entities maintaining a true and complete translation of the books in English, Spanish, or a native dialect are exempt from the inspection fee.
Authority to Issue Rules and Regulations
- The Act does not modify or annul existing laws granting the Secretary of Finance and Collector of Internal Revenue the authority to issue rules and regulations on recordkeeping by taxpayers.
Preservation and Inspection of Books
- Books of account must be preserved for at least 5 years from the date of the last entry.
- Books are subject to examination and inspection at any time by internal-revenue officers.
- Upon retirement from business, taxpayers must submit their books within 15 days (or an extended period if allowed) for examination.
- After examination, the books shall be returned.
Rulemaking Duties
- The Secretary of Finance is responsible for enacting rules and regulations to enforce the provisions of the Act properly.
Penalties for Violations
- Violations (other than inspection fee non-payment) are punishable by a fine not exceeding Php 1,000, imprisonment up to 6 months, or both, at the court's discretion.
- Failure to pay the inspection fee on time results in a fine at least equal to the fee plus surcharge, but not more than double the amount.
Effectivity
- The Act took effect on January 1, 1928.