Tuesday, December 8, 2015
COC: SOLE PROOF CO-OP IS TAX EXEMPT
If these solons could have their way, the Certificate of Good Standing (now termed by CDA, as Certificate of Compliance or COC), should be sufficient proof to the Bureau of Internal Revenue, that a cooperative is entitled to the corresponding tax exemptions.
This, in effect, is what House Bill No. 6281, is proposing, which by reference, would do away with the current need for cooperatives to file for/secure a separate Certificate of Tax Exemptions (CTE), on top of the CGS/COC.
The Bill was introduced by Rep. Rufus B. Rodriguez (2nd District, Cagayan de Oro ), and his younger brother, Rep. Maximo B. Rodriguez, Jr. (Party-list Abante Mindanao).
It has been reported that less than half of the 24,000 cooperatives nationwide was issued a CGS in 2014; while around one-third of the registered cooperatives were granted CTEs, effectively denying majority of cooperatives of their tax exemption privileges provided for under R.A. 9520, or the Philippine Cooperative Code of 2008.
HB 6281 is now currently pending at the House Committee on Ways and Means, chaired by Rep. Romero Quimbo of Marikina.
Under HB 6281, A new Article, numbered Article 61-A, was proposed to be added to R.A. 9520, to read as follows:
"... Art. 61-A. A Certificate of Good Standing, issued by the Cooperative Development Authority, certifying that a cooperative is in good standing and that such cooperative falls under the provisions of Articles 60 and 61 of this Act, shall be considered as conclusive proof for the Bureau of Internal Revenue that the cooperative is entitled to the corresponding tax exemptions.."
According to published reports, the two lawmakers are "..seeking to strengthen the tax exemption of cooperatives to help further promote their self-reliance and enable them to harness people power towards the attainment of economic development and social justice...".
(Reference: www.congress.gov.ph/press/details.php?pressid=9194). END.