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TITLE IX - Section 232 To 235 of The National Internal Revenue Code
TITLE IX - Section 232 To 235 of The National Internal Revenue Code
COMPLIANCE REQUIREMENTS
(As amended by RA Nos. 9337 & 10021)
CHAPTER I
(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:
(e) In the exercise of the Commissioner's power under Section 5(B) to obtain information from
other persons in which case, another or separate examination and inspection may be made.
Examination and inspection of books of accounts and other accounting records shall be done in
the taxpayer's office or place of business or in the office of the Bureau of Internal Revenue. All
corporations, partnerships or persons that retire from business shall, within ten (10) days from
the date of retirement or within such period of time as may be allowed by the Commissioner in
special cases, submit their books of accounts, including the subsidiary books and other
accounting records to the Commissioner or any of his deputies for examination, after which they
shall be returned. Corporations and partnerships contemplating dissolution must notify the
Commissioner and shall not be dissolved until cleared of any tax liability.
Any provision of existing general or special law to the contrary notwithstanding, the books of
accounts and other pertinent records of tax-exempt organizations or grantees of tax incentives
shall be subject to examination by the Bureau of Internal Revenue for purposes of ascertaining
compliance with the conditions under which they have been granted tax exemptions or tax
incentives, and their tax liability, if any.