Organizers to pay taxes on Tour prizes

Beyond the commitment that puts the fabled Tour back on the road this summer is the Tour Pilipinas 2003 organizers’ acknowledgement of a social obligation by shouldering the withholding taxes on the cyclists’ prizes.

"We have an obligation to the government," said Tour Pilipinas 2003 chairman Bert Lina. "And this is our way of setting an example that all of us should become responsible taxpayers."

"We have to help in the campaign regarding the importance of paying taxes and helping the government," added Lina, also chairman of Air21, presentor of Tour Pilipinas 2003, the revival edition of the multi-stage cycling marathon that is scheduled April 26 to May 11 on Luzon.

A total of P3.3 million in prizes are staked in the Tour. Under government regulations, withholding taxes on these prizes would be at least 20 percent. To ease the cyclists of the burden at this time when the Tour is just being revived, the organizers are going the extra mile in shouldering the government obligation.

Actually, the organizers could exempt themselves and the riders from paying taxes on the prizes if only a sanction from the national sports association (NSA) for cycling–the embattled Philippine Amateur Cycling Association–is secured. But Lina said he would not want to escape that social responsibility.

"It’s our way of helping the government and the country as a whole," said Lina. "This is just our own small way of helping the national cause, by making sure that all our cyclists will be made aware of the value of taxes. After all, kung ano ang ibibigay mo sa gobyerno, siya rin ang ibabalik sa ‘yo."

Lina asked Tour executive director Mar Mendoza to have the cyclists secure their personal tax identification numbers for the objective, which is unprecedented in the Tour and perhaps in any major sporting event in the country.

"There is a negative implication about seeking sanctions just to avoid withholding taxes. It sends the wrong message. We will pay the taxes (on top of the prizes of the winners) if only to show that giving to the government is the only way to boost growth in this country," he explained.

The Tour offers a record prize of P1-million to the team champion and P200,000 to the individual winner. Prizes in the individual classification are scaled down to the 10th placer, while all teams are guaranteed of cash prizes.