Preserving the books of accounts and other accounting records for the period of ten (10 years) - BIR

Keeping, storing and preserving your books of accounts and other accounting records from the date that you filed your annual income tax return up to ten (10) thereafter are unfair, unreasonable and so ridiculous.

Katax mobile and email account had been flooded with reminders, forward messages, complaints, etc... Most of which is pointing to the direction of BIR's Revenue Regulations No. 17-2013.

My friends and students complained that the BIR's personnel who are manning its front line offence and informed them that they have to keep their books of accounts and other accounting records for the period of ten (10) years. For example, if you filed your annual income tax return for the taxable year 2013 on April 15, 2014, then, you have to store, keep and preserve all the books and records used to prepare and make such return up to April 16, 2024.

The National Internal Revenue Code is very clear that you don't have to panic because it guarantees you that you have to store, keep and preserve your books of accounting for the period of three (3) years and not for the period of ten (10) years (Section 203, NIRC). Thus, the above regulations are not intended for your consumption and does not create any obligation on your part.

You would only be required to maintain and keep your books of accounts for the period of ten (10) years if and only if you, by your legal and moral standards, are convinced that your have performed a false and fraudulent act. If that is the case, you are mandated to maintain and keep your books and records for the period of ten (10) years. However, if in good faith, you believe that your didn't do anything false or fraudulent when preparing all your tax returns and paying the corresponding taxes thereto, then, you have all the legal rights in this State to dispose them after three (3) years from the date of such filing.

This privileged communication shall be used for your personal consumption and shall not constitute as a replacement to a relevant advise from Katax (ETM).

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Level 101 - May 8-9, 2014
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