The Bureau of Internal Revenue (BIR) has required companies to submit videotapes of goods and other assets for destruction or disposal which have been declared wastes and obsolete for income tax deductibility.
BlR Commissioner Caesar Dulay said the unedited pictures must be accompanied with the notarized sworn statement signed by the president of the company or his duly authorized representative.
The BIR chief said the pictures must not only cover the actual destruction but the conditions of the item before and after they were disposed.
These were among the requirements imposed by Dulay when he signed Revenue Memorandum Order No. 21-2020 revising the policies and guideline in writing off useless assets in the inventories.
The memorandum stated that the BIR will issue certificate of deductibility upon submission of complete documents.
They included the lists of useless goods and assets and the presence of revenue officers during the disposal.
The guidelines warned that any misrepresentation will be subject to mandatory audit.
The destruction of machineries and equipment may be written off in the books of accounts if the applicant can present proof that the assets are no longer subject to replacement by suppliers and insurance claims.