Section 34
SEC. 34. Section 324 of the National Internal Revenue Code as amended by Presidential Decree No. 1705 is hereby amended to read as follows: “Sec. 324. Preservation of books of 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 books until the last day prescribed by Section 318 within which the Commissioner is authorized to make an assessment. The said books and records shall be subject to examination and inspection once only in a taxable year by internal revenue officers, except in the following cases: “(a) Fraud, irregularity or mistakes as determined by the Commissioner; “(b) The taxpayer requests reinvestigation; “(c) Verification of compliance with withholding tax laws and regulations; “(d) Verification of capital gains tax liabilities; and “(e) In the exercise of the Commissioner’s power under Section 7(b) to obtain information from other persons si 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 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 dissolutions 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 entities shall be subject to examination by the Bureau of Internal Revenue for the purpose of ascertaining whether such organizations or entities are complying with the conditions under which they have been granted tax exemptions and their tax liability, if any.”