BIR tells bets contributions to be taxed
More News from Inquirer Southern Luzon
NAGA CITY—The Bureau of Internal Revenue (BIR) is requiring, for the first time, all candidates and party-list groups to have books of accounts detailing contributions and expenditures, which will be used as basis for the collection of taxes due them.
Socorro Lafuente, revenue district officer, said the campaign to require all candidates and party-list groups to maintain records of donations and expenditures started last week nationwide in an orientation meeting held by the BIR with candidates or their representatives.
She said the BIR had required all candidates to register their names, books of accounts and tax identification numbers to allow the BIR to monitor taxable items.
Lafuente said the BIR issued a memorandum after the Commission on Elections issued rules and regulations on campaign financing.
According to the memorandum, it shall be the duty of the candidate and party-list group, treasurer of the party or the person acting on their behalf to issue a receipt for every contribution received.
For future reference
“It shall also be their duty to keep detailed, full and accurate records of all contributions received and expenditures they have incurred,” said Lafuente.
She said the BIR also required candidates to issue official receipts in duplicates and preserve for three years records of contributions and expenditures for future references.
Lafuente said donations were taxable. Amounts P50,000 and below are exempted from taxes. A minimum of 1.5-percent tax is levied on contributions above P50,000.
She said the bigger the donation, the bigger the taxes. A contribution of over P5 million will be levied a minimum tax of P358,750 plus 20 percent in excess of P5 million.
Under the law, candidates are required to submit a report of their campaign expenses and contributions from supporters.
The enforcement of the rule on reporting campaign finances, however, has not led to prosecution of violators.
Get Inquirer updates while on the go, add us on these apps:
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94