by VERA Files
All contributions to political campaigns will be taxed five percent, the Bureau of Internal Revenue said Friday.
BIR Commissioner Sixto S. Esquivias IV announced that the newly issued Revenue Regulations No. 8-09 requires all political candidates/parties/contributors to withhold a 5% withholding tax on their campaign expenditures and contributions.
The new regulations also require all political candidates, parties and candidates to register with the BIR as a withholding agent.
Esquivas made the announcement with Senior Deputy Commissioner Joel L.Tan Torres during the launching of “Iboto Mo Kandidato, Nagbabayad ng Buwis na Wasto” a BIR project directed to maximize tax collections from campaign expenditures and contributions.
Esquivias states that “candidates have a civic duty of assisting in nation building, which can be attained with them being involved in complying with their tax obligations.”
Esquivias also reminded all candidates, political parties and contributors, compliance with their tax obligations like the remittance of their expanded withholding tax (BIR Form No. 1601E), issuance of the corresponding BIR Certificate 2307 and requiring the issuance of official receipts from their supplier of goods and services.
Tan-Torres also disclosed that BIR will be partnering with the Commission on Elections (COMELEC) to ensure that the candidates, their supporters and parties comply with their tax obligations. A Memorandum of Agreement is currently being reviewed by representatives of the BIR and Comelec. “ Furthermore, all our BIR offices throughout the Philippines will be conducting briefings to all candidates running for elective positions to educate them on their tax compliance responsibilities,” he said.
Press statement:
Tax on campaign donations on campaign donations a squeeze play on opposition- Binay
Makati Mayor Jejomar C. Binay today warned that the national government’s decision to impose a five-percent withholding tax on election expenses and contributions signals the start of the squeeze play on the political opposition.
“The Arroyo administration is putting the squeeze on the sources of financial support for the opposition,” he said.
Not only will the tax scheme make campaigning more expensive, but by requiring campaign donors to register with the Bureau of Internal Revenue (BIR), the administration would now be able to identify opposition supporters who will be vulnerable to harassment.
Pro-opposition businessmen would now think twice before giving donations, he said.
“Clearly, the administration has found a convenient excuse to pin down opposition supporters especially within the ranks of the business community. As a result, businessmen would think twice before giving donations, and as a result they will be reluctant to donate to opposition candidates,” he said.
Binay said the business community is very aware of the vindictive nature of the present administration.
“A list of businessmen financially supporting the opposition would be heaven sent for this administration, who can then employ every trick in the book to harass and intimidate our financial backers,” he said.
He added that the administration is rewriting the rules of the 2010 election to favor its candidates who will benefit from the use of government resources and whose financial backers are assured of preferential treatment.
The BIR on Friday issued Revenue Regulations No. 8-09 levying a five percent tax on campaign expenses and donations.
Agency officials said has partnered with the Commission on Elections (Comelec) to ensure that candidates, their supporters and parties meet their tax obligations.
The BIR has again failed to meet its target from January to September, with collections totalling P839.8 billion or 4.6 percent lower than the collections for the same period last year. Officials said the decision to tax campaign expenses and contributions was intended to boost collections.
Walang hindi gagawin ang gobyernong ito upang masakal ang mga kontra sa kanila.
Lahat ng bawal, sa kalaban ipinapataw. Lahat ng pabor, sahod ng administrasyon.
MapUputol lamang ito kung TUNAY na magkakaisa, magsasamasama at magbibigkis ang mga nagsasabing sila ay oposisyon. Ganyang bawat partido nila ay mayroong kandidato, asahan ang walang katapusang pamamayagpag ng mga kampon ng babaeng hudas, si gloria makapal arroyo.
Taxing contributions is taxing speech, which is unconstitutional.
When a supporter financially helps a candidate, the supporter is enabling the candidate to speak for the supporter, on the issues the supporter adheres to. A tax on that support is an indirect attempt to disable the speech to be made, for and in behalf of the supporter.
If the government only wishes to compel the candidate to support government operations, that is taken care of by the VAT on whatever the candidate buys with the contribution – paper, CDs or DVDs, etc. There is also government revenue from the income tax that the professionals hired will pay, or the income tax the suppliers of paper, etc. will pay.
What makes it different from the campaign fee that the NPA is charging candidates in the provinces? Nada. The NPA at least charges a token fixed amount while this government collects a percentage.
The AFP soldiers should train their weapons on BIR instead!
In Metro Manila, a mayoralty candidate should spend at least P30M to ensure his victory. Using BIR’s new tax, each serious candidate will be slapped a P1.5M tax.
Mas swapang nga kesa NPA.
Is the world upside down? whereas, our contributions, to a certain amount is 75% tax refunded, the BIR is taxing yours…but then again, we are only limited to a certain maximum Anually (no body is exempted, including the PM and all Officials) and that is the only sources for Political Purposes Expenses..from the Citizens and the Government (general taxpayers)…
Altogether, a Candidate for any position, can Only spend $5400 anually for his candidacy (1000 for himself, 1000 for his party,) with a $1000 limit to each and to the Party, Party association, Nomination to the Maximum…and must be recorded and receipted on amount over $20. Party election expenses are also refunded by the Government substantially if required minimum votes is cast..the same rule applies to all parties and individual candidates…fair and square.
This is clearly a way to trace those who are supporting who more than wanting to collect additional revenues.
My question is, how about those candidates supported by the corrupt current administation? Will the money stolen from the people also be taxed? Double standard, di ba? If I were a donor, I will not declare any amount of donation. The tax will be stolen anyway. It will not even trickle down to the citizens. The money stops in the pockets of the rotten hoodlums calling themselves leaders and officers of the government. There are always ways to skin a cat! If I were a donor, I will defy this order!
Instead of donating cold cash, I will just personally buy campaign materials and directly hire additional hands to help my candidate. Will the bogus BIR ever know that the money I spent on printing and additional help went to my candidate, particularly when I am in business and none of these printing materials stay on my shelves as they are all used up in my operations?
Ang mas masakit dito ay yong pondo ng ating bayan na ginagamit pang politika ng administration candidates ay tax free na libre pa. They ( incumbent) can travel the country using government resources at libre pa. I agree with the suggestion that most of the donations be in kind para hindi magamit sa vote buying.
Vic, first world countries have altogether a different system of supporting their candidates. Almost everyone chip in. In the Philippines, the monied ones are expected to spend. In the end, they dictate how the government is run. Until we mature and contribute to our own candidates, those who are not helping at all do not even have to bitch and moan. They get what they deserve! They get a president installed by the upper 1 to 5% of the population. Just look at the presidentiables, only Erap and Villar and Chiz (if he continue to run) are not the customary “kid from the rich clan”. We are far from maturity. For as long as we are electing the same bunch of officials ( kids from the rich clan”, don’t be fooled that the country will ever change! Kung ano ang puno, yun din ang bunga. The rich would always protect their interests. That is a given!
And laban ng masang Pilipino sa sabi ni parasabayan : “the rich would always protect their interest” — ay dumami ang mga middle-class. Pero ang problema talaga sa Pilipinas, napakarami ng mahihirap. Kailangan sa Pilipinas ay mga programs of governance (by national government and by NGO’s) that create more jobs.
Parasabayan, I remember just some 3 year or so ago, Political fund Contributions from Businesses and Labour Unions were allowed up to the Maximum of $1000 each to the parties, candidates, party associations, but many loopholes were taken advantages and the Fact remains that Payback is always Expected for the Money Invested by the Business entities and Labour Unions and that will be in violation of Conflict of Interest Rules..it was disallowed and now mostly the source comes from dollars and dimes (solicitation is a continuing process, election or non-electin year, as the Party is a going concern) contributions from Party Membership and general public, and refunds from governments for the last election expenses..but then again election campaign here is so Cheap, that the whole party can launch a very successful campaign on a shoe string budget of less $10 millions total. mostly on transportation and media ads.
“………The BIR has again failed to meet its target from January to September, with collections totalling P839.8 billion or 4.6 percent lower than the collections for the same period last year. Officials said the decision to tax campaign expenses and contributions was intended to boost collections.”
Hindi ito kapanipaniwala!
Matagal ng palpak ang tax collection dahil sa kurakutan. Palpak ang tax collection sapagkat ‘yung dapat na may babayarang malaking buwis ay nagagawang doktorin ang mga datos na kanilang kinita. Mas malamang din ‘yung umiiwas sa pagbabayad na kapag nagmatigas ay binibigyan na lang malaking diskuwento matapos ang aregluhan at hindi rin alam kung saan napupunta ang bahagi ng ibinayad.
Meron bang taga BIR na nakatira sa squatters’ area?
Isa pa, pakana din ‘yan ng mga sobrang dunong na taga Malakanyang upang mapilitan ang mga campaign donors na huwag ng sumuporta sa kandidatura ng ilang tinatarget nilang oposisyon.
Bulok ng style ‘yan, eh. Nakakasuka!
I couldn’t find Revenue Regulation 8-09 in the BIR’s web site. The last available was RR 7-09 and was issued 2 Oct 2009. Any administrative fiat must be published in the Philippine Gazette for 30 days(i’m note sure maybe 90 days) before it becomes effective and enforceable.
Until I get hold of RR 8-09 I am suspending my comments on this topic.
To raise P1.4 Billion. Please! The Filipino is not that simple minded. The BIR can easily collect 100x of said amount by simply eliminating corruption within their ranks. I submit that 08-2009 has an ominous purpose. And that is to get information on who’s contributing to who’s candidacy. Such info can be used as a tool to harass those who support candidates other than the candidate or candidates of the administration both in national and in local elections.