PCIJ: 5 senators fail to register as tax withholding agents

MANILA, Philippines - Five senators elected in the May 13 polls have violated a circular of the Bureau of Internal Revenue (BIR) requiring them to register as withholding agents to be able to withhold taxes on their campaign expenditures.

Based on the report of the Philippine Center for Investigative Journalism (PCIJ), Senators Alan Peter Cayetano, Gregorio Honasan, Loren Legarda, Grace Poe and Cynthia Villar violated the BIR circular.

Eight losing senatorial aspirants did not also meet the BIR requirement. They are Greco Belgica, Teodoro Casiño, Margarita Cojuangco, Rizalito David, Baldomero Falcone, Marqil Llasos, Christian Señeres and Eddie Villanueva.

“Political candidates spent billions of pesos in the last May elections, and it’s only expected that some of that money would have headed in the direction of the BIR,” PCIJ report said.

“Yet even though it’s nearly the season to be merry, there still seems to be no joy in the tax bureau when it comes to collecting the appropriate taxes related to the polls held more than half a year ago,” it added.

The report also said that the BIR was bound to have a “lucrative reward” considering that the 33 senatorial bets spent P1.7 billion, “which roughly means some P78 million (net of value-added tax or VAT) in just withholding tax revenues.”

“Aside from collecting revenue for the government, though, any BIR move to impose tax on the candidates and political parties could also help drive home the point that election and tax laws can no longer be ignored, especially by those who say they want to become leaders and legislators,” the PCIJ noted.

According to Elections Commissioner Lui Guia, there is no provision in the elections law or resolutions of the Commission on Elections (Comelec) that would penalize candidates who violated BIR requirements.

“It does not concern the election but it is a taxation issue. It involves the BIR, not the Comelec,” Guia said in an ambush interview.

BIR Commissioner Kim Henares said “all payments (donations received and payments expended) should be receipted and reported.”