The Bureau of Internal Revenue (BIR) disclosed Sunday that many candidates running for various posts in the upcoming elections, to include some presidential bets, have not registered as tax withholding agents with the bureau, as required by law.

Under the law, candidates are required to register with the BIR as tax withholding agents and then collect and remit on a monthly basis a five-percent withholding tax on their campaign expenses.

However, many candidates running for various posts have not yet registered as tax withholding agents with the BIR, said BIR Deputy Commissioner for Operations Nelson Aspe.

Aspe said reports from revenue district offices throughout the country show that “only few (candidates) have registered with us.”

He said the BIR is giving candidates for elective positions until a month after the May 10 elections to settle their respective five-percent withholding tax duties on their campaign expenses.

Upon the instruction of BIR Commissioner Joel L. Tan-Torres, the bureau will have to collect the withholding tax from both winners and losers in the elections as well as from political parties that failed to register or remit the tax.

Aspe said politicians should set the example of paying taxes promptly and honestly in order to give meaning and substance to their campaign speeches of nationalism and love of country.

He said it would be difficult for these politicians to hide their expenses as they are required by the Commission on Elections (Comelec) to submit their financial reports.

Latest records showed that the BIR has raised P200 million from national and local candidates who have already registered with the bureau.

The BIR is targeting to raise some P1.3 billion from this source but the amount was reduced to R700 million as the Comelec decided to move the start of the official campaign period from December 2009 to February this year.

Tan-Torres said the BIR will not only audit expenses of candidates but also that of receivers of such expenses for entertainers and media advertising.

The BIR chief added that suppliers of goods and services to the Comelec will also be investigated to determine whether or not they are declaring correct earnings.