This Rule outlines the bases upon which the accounts of an Incorporated Body shall be discarded, referencing Article 19 of the Executive Regulations. It specifies conditions constituting clear violations, such as non-compliance with bookkeeping laws under Article 15, insufficient documentation, undeclared taxable revenues, and substantial auditor qualifications. The Rule also establishes the criteria for determining the deemed profit percentage after accounts are discarded, considering factors like similar cases and economic conditions. It clarifies that special cases require consultation with the Tax Department.