BIR downplays revenue rule

November 5, 2009, 7:53pm

Top officials of the Bureau of Internal Revenue (BIR) downplayed Thursday the current fuss over a revenue regulation that imposes withholding taxes on the spending of prospective candidates in next year's local and national elections.

"We will proceed with the collection of the five-percent withholding tax because it is within our mandate to collect it not only from politicians but from ordinary consumers of goods and services," said acting BIR Commissioner Joel Tan-Torres.

Tan-Torres explained that the tax is not meant against candidates for elective office but on the recipients of their payments for goods and services.

He also said that contrary to widespread misconception, the tax is not imposed on political contributions to candidates but purely on their expenses like purchases of election paraphernalia and services of individuals involved in their election campaign.

The newly-installed revenue chief made the comment even as various opposition groups declared that the collection of the tax is illegal and not authorized by law.

Other BIR officials said it would be unlawful if such financial donations are taxed.

They said what the candidates are vehemently objecting to is a provision in the Revenue Regulation No. 8-2009 designating them as withholding agents for such political disbursements collecting the tax equivalent to five percent of their purchases.

They also stressed that if politicians really love their country they should not protest but instead assist the BIR in collecting taxes for nation building. (Jun Ramirez)