status will be revoked from cooperatives that fail to submit the tax
identification numbers (TINs) of their members, the Bureau of Internal
Revenue (BIR) said in a memorandum circular.
Revenue Memorandum Circular (RMO) 102-2016, signed by
Commissioner Caesar R. Dulay, added noncompliance with the TIN
requirement of a cooperative are grounds for revocation of its
certificate of tax exemption (CTE).
Cooperatives with CTEs are exempt from paying income tax, percentage
tax, donor’s tax, excise tax, documentary tax, and the annual
cooperative registration fee.
This could be revoked if a cooperative fails to furnish the BIR with the
TINs of all its members within a six-month period starting this week.
To facilitate compliance for cooperatives with unregistered cooperative
members, the RMC allows for cooperatives to apply for the TIN issuance
of its members as long as the proper authorization and documentary
requirements are presented to the bureau.
Because of the implementation of RMC 93-2016, these documentary
requirements for the issuance of TIN for jobless individuals have been
reduced to a photocopy of any government authorized identification that
shows the person’s name, address and birthdate.
In an e-mail interview, Lina P. Figueroa, principal of the Tax Advisory
and Compliance division of Punongbayan & Araullo, said that while
unregistered potential taxpayers would benefit from this measure, the
penalty imposed is harsh.
“Though there are members who may be really poor, there are also
taxpayers and potential taxpayers among them,” Ms. Figueroa said. “They
would be easier to monitor if they registered and accounted for. It
would also supplement tax statistics. “
However, “withdrawal of the exemption of the coop should not be the consequence,” she said.
According to latest data from the Cooperative Development Authority,
approximately three thousand cooperatives currently enjoy these tax
exemptions. -- Lucia Edna P. de Guzman
The Author has decided to remain behind the shadows, believing that the content of this blog should speak for itself, and that the readers should not be distracted by the identity of the Author.
Suffice it to say, for the moment, that the Author is a cooperative educator accredited by the Asian Confederation of Credit Unions; with 25 years hands on experience with policy making and direction of community type credit cooperative, particularly in the capacity as member of its Board of Directors.