MANILA, Philippines - The Bureau of Internal Revenue (BIR) is closely monitoring the poll expenditures of local and national candidates to ensure the collection of the five percent withholding tax on campaign expenses.
The campaign tax, part of the BIR’s new scheme “Project Iboto Mo,” is not imposed on contributors, donors or candidates but on suppliers who render services and products like election campaign materials.
The tax scheme is part of the BIR’s efforts to improve tax collections.
At the weekly Kapihan sa Sulo news forum yesterday, Marina de Guzman, chief of staff of the BIR commissioner, told reporters that they are closely coordinating with the Commission on Elections (Comelec) to monitor election spending and collection of the withholding tax.
BIR chief Joel Tan Torres said in an earlier interview that the agency is expecting to generate at least P1.5 billion from the campaign tax.
Torres said they have already established monitoring mechanisms and will go after erring candidates.
The BIR will also continue to collect the tax even if the candidates lose, and a 20 percent penalty plus interest will be collected on delinquent taxpayers.
At the same forum, De Guzman also said the BIR is currently conducting lifestyle checks on high-profile individuals who are not declaring their true income to the government.
“We will build up a list of properties, land holdings, car purchases, and memberships in exclusive clubs to get an idea of their earnings,” De Guzman said.
Jet setters who regularly travel abroad but are not paying proper taxes will also be monitored.
She said a memorandum of agreement will be signed between the Land Transportation Office and airlines and shipping companies to check the travel records of individuals.
Once a case of possible tax evasion is established, the BIR will then send demand letters to erring taxpayers and those who refuse to pay will be charged in court for tax evasion.