Political candidates told to pay proper taxes-A A +A
By JM Agreda
Wednesday, October 3, 2012
THE Bureau of Internal Revenue (BIR) reminded politicians who will obtain services related to their campaign to remit their withholding taxes after the May 2013 elections.
BIR Baguio field officer Fely Simon visited the Commission on Elections (Comelec)-Baguio Monday to remind politicians to register and withhold taxes from their campaign expenses.
Simon said that expenses ranging from political ads coursed through different media outfits and other campaign expenses from food to travel expenses must be disclosed by politicians.
BIR is mandated to monitor the five percent withholding tax of politicians on campaign-related expenditures of political parties, campaign contributors, and candidates for the forthcoming local and national elections.
The five percent withholding tax is not a new tax imposed on candidates, political parties or contributors, but a tax on the income of the supplier of goods and services, she said.
She said this is collected through the candidates or political parties by deducting the withholding tax from the agreed transaction price and remitting the withheld tax to the BIR.
Political parties are also required to register as withholders of these taxes and remitting these to the BIR after the elections.
Simon reminded politicians that they should be role models in paying their tax obligations that will eventually reflect their law-abiding character to their constituents.
The revenue officer added that politicians should be careful of declaring expenditures as they will pay a surcharge of 20 percent if they are found to be covering-up their election related expenses.
The BIR will conduct briefings to local politicians and parties in the region, including giving of reminder letters informing candidates of their transactions and corresponding taxes.
“Finance officers of political parties must withhold from some establishments like printing presses and media outfits for their campaign materials,” she added.
The BIR fielded their employees at the Comelec provincial office yesterday to aid politicians in remitting the right taxes to the agency.
Published in the Sun.Star Baguio newspaper on October 03, 2012.