BIR to tax political contributions

MANILA, Philippines - The Bureau of Internal Revenue (BIR) may start slapping this  month the five percent withholding tax on all political contributions and campaign  expenditures of candidates running in the May elections, BIR Commissioner Joel Tan- Torres said yesterday.

Tan-Torres said the agency expects the Commission on Elections (Comelec) to furnish  the BIR by the end of the week the complete and final list of candidates seeking public  office in the coming elections.

“We’re just waiting for that. After that, we will start deploying our people,” Tan-Torres said.

The controversial plan is pushing through even without a memorandum of agreement between Comelec and the BIR. While this was the plan before, Tan-Torres said this was no longer necessary since the Comelec had agreed to cooperate with the BIR on the measure. He said the Comelec has committed to support the regulation by ensuring that the candidates, supporters and parties comply with their tax obligations.

Tan-Torres also said that the agency is determined to go after all the candidates, with a battalion of BIR personnel to be assigned to implement the project and ensure that all  political aspirants are monitored.

Last December, the Comelec already released a partial list of candidates including presidential and vice-presidential nominees but has yet to furnish the BIR with a  complete and final list of all candidates.

The BIR chief warned that each name on the Comelec’s final list of candidates would be properly monitored so as not to escape the regulation.  He also said that the withholding tax is necessary and is not a new “tax.”

Last year, the BIR issued Revenue Regulation 8- 09 which required all political  candidates, political parties and contributors to register with the BIR as withholding agents.