However, the Quezon City Treasurer assessed the corporation for deficiency business tax for 2007 based on gross sales of P25 million alleging that local business taxes shall be computed based on calendar year. Since MNO Corporation adopted fiscal year ending June 30 as its taxable year for income tax purposes, it paid its 2% business tax for fiscal year ending Jbased on gross sales of P15 million. Its books of accounts and income statement showing gross sales as follows: MNO Corporation was organised on July 1, 2006, to engage in trading of school supplies, with principal place of business in Cubao, Quezon City.
