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Bare your donors, BIR reminds bets

By: - Reporter / @bendeveraINQ
/ 01:45 AM February 27, 2016

AHEAD of the elections in May, the Bureau of Internal Revenue (BIR) has reminded not only those running for public office but also their political parties and supporters to pay their obligations for donations that will exceed actual, tax-exempt campaign expenditures.

In a statement Friday, the BIR reminded all candidates, political parties, party-list groups and campaign contributors to register and secure official receipts, as mandated under regulations earlier issued by the agency.

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Under BIR rules, political parties and party-list groups must register with the revenue district offices (RDOs) that have jurisdiction over their head or principal offices.

As for individual candidates, they should register with the RDOs having jurisdiction over the political subdivisions where they are seeking election or at the RDOs that have jurisdiction over their principal residence or registered address, the BIR said.

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“Upon registration, the BIR will tag them as withholding tax agents, among others. As withholding agents, they must withhold the corresponding withholding tax for election-related expenses such as, but not limited to, purchases of campaign materials like tarpaulins, T-shirts, boleros, fans, flyers, talent fees of the composer and singer of the campaign jingle and others related thereto,” the BIR said.

The country’s biggest tax-collection agency reiterated that “all contributions received shall be reported as required by law.”

“Any unused/excess funds shall be treated as income for purposes of taxation pursuant to Revenue Regulations No. 07-2011 dated Feb. 16, 2011, which provides the tax treatment of campaign contributions and expenditures,” according to the BIR.

“Any single nonissuance of official receipt upon receipt of contribution shall be penalized with a fine of not less than P1,000 but not more than P50,000 and imprisonment of not less than four years as stipulated in Revenue Memorandum Order No. 7-2015,” it said.

The BIR said all expenditures incurred due to the elections must be reported.

“Unreported expenses, as well as those not subjected to appropriate withholding tax, shall not be allowed as deductions from contributions. Excess contributions will be treated as income subject to income tax,” it said.

According to the BIR, “the registration of individual candidates shall automatically end after 30 days from the date of election” while those for political parties and party-list groups “shall subsist.”

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TAGS: Bureau of Internal Revenue, Comelec, Elections 2016, Nation, news
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