
RDO 39 SanTax Team
The SanTAX Claus Project according to Senior Deputy Commissioner Tan-Torres is not an enforcement activity of BIR, but rather to promote voluntary compliance for taxpayers that will result in the generation of taxes. Tan-Torres stressed that the primary objective of this Project is to improve tax awareness by encouraging the general public to demand habitually invoices for goods purchased and official receipts for services procured. He said that the BIR will not impose additional taxes on said bazaars as misunderstood by many.
The Bureau of Internal Revenue (BIR) has partnered with the Land Transportation Office (LTO) in the efficient implementation of Executive Order (E.O.) No. 98 through a signing of a Memorandum of Agreement (MOA) on Wednesday, November 25, 2009 at the BIR Executive Conference Room.
SDCIR Tan-Torres said, “The expanded withholding tax system has been in place for over 30 years. The 5% withholding tax is not a tax on the candidate; rather, it is a tax on the supplier of goods and service which tax is being collected with the assistance of the candidates/contributors under the said system. The contributor does not pay any tax on contributions to elective candidates. The contributor only withholds taxes on purchases of goods and services for election-related activities.”
With less than two (2) months to go, the Bureau of Internal Revenue (BIR) is still hopeful of catching up with its collection target by instituting several measures one of which is the “SanTAX Claus Project.” SanTAX Claus is designed to reach out to “tiangge” or “privileged-store” operators and similar business arrangements this Christmas shopping season, improve tax awareness through issuance of invoices or receipts, and promote voluntary compliance.
Taken from a soon to be published RMC of the BIR. Question and Answer on withholding tax on election expenditures.