RMC No. 22-2004: Defines the rules relative to the accounting methods to be used by taxpayers for internal revenue tax purposes.

Key points

1. Tax Code governs returns. All returns required by the Tax Code are prepared in conformity with the Tax Code and its implementing rules and regulations.
2. Taxability and deductibility. Taxability of income and deductibility of expenses are determined strictly under the Tax Code and its implementing rules and regulations.
3. Conflict with accounting standards. If the Tax Code and its implementing rules differ from generally accepted accounting principles (GAAP) and generally accepted auditing standards (GAAS), the Tax Code and its implementing rules prevail.