When to start counting 10 year period for preservation The counting of the

When to start counting 10 year period for

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When to start counting 10-year period for preservation The counting of the preservation would start from the last entry on the books of accounts referring to a particular business transaction or an item thereof that is entered or posted last or latest in the books of accounts when the same was closed. Notably, registration of new sets of manual books of accounts is upon consumption of its pages so that if you have in your books of accounts transactions for five (5) years, then, such books of accounts should be preserved for a total period of fifteen (15) years. Obligations of CPA’s to preserve AFS for 10 years An independent certified public accountant (CPA) who audited the books of accounts and other accounting records of the taxpayer has the responsibility to maintain and preserve copies of the audited and certified financial statements for a period of ten (10) years from the due date of filing annual income tax return or actual date of filing thereof, whichever comes earlier, unless a longer retention period is required under the National Internal Revenue Code of the Philippines (NIRC), as amended, or other relevant laws. Place of Preservation of Books of Accounts in the Philippines All books, registers and other records, and vouchers and other supporting papers required by the BIR shall be kept at all times at the place of business of the taxpayer. Books of accounts may be inspected by the BIR and examined for purposes of the following: Regular audit, Extraordinary audit, Requests for exchange of information by a foreign tax authority under Sections 6 and 71 of the NIRC, and, In the exercise of BIR Commissioner’s power to obtain information under Section 5 of the NIRC, Examination of books of accounts may be made in the taxpayer’s office or place of business or in the office of the BIR. PRESERVATION OF BOOKS OF ACCOUNTS All books of accounts, including the subsidiary books and other accounting records of corporations, partnerships or persons shall be preserved by them within 3 years (except in case of a false or fraudulent return) from the last entry in each book and for which period the Commissioner is authorized to make an assessment. The said books and records shall be subject to examination and inspection by
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internal revenue officers made only once in a taxable year, except in the following cases: 1. fraud, irregularity or mistakes as determined by the commissioner; 2. the taxpayer requests reinvestigation; 3. verification or compliance with the withholding tax laws and regulations and 4. In the exercise of the commissioner’s power to obtain information from other persons, in which case, another or separate examination and inspection may be made. REGISTRATION REQUIREMENTS Every person subject to any internal revenue tax shall register once with the appropriate Revenue District Officer: 1. within 10 days from date of employment 2. on or before the commencement of business 3. before payment of any tax due 4. upon filing of a return, statement or declaration as required in the tax code.
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