Let CDA request BIR for exemption paper: Pabling

By Rizel S. Adlawan

Monday, October 10, 2011

DEPUTY Speaker Pablo Garcia said the Cooperative Development Authority (CDA) should be the one to request a certificate of tax exemption (CPE) from the Bureau of Internal Revenue (BIR) as their service to the cooperatives.

The suggestion came after several cooperatives complained that they are having a hard time getting a certification from the BIR. This was the reason not all of the cooperatives got tax incentives despite the implementation of the law.

CDA 7 Director Alexander Patac said they are willing to do it and suggested that the implementing rules and regulations (IRR) be implemented.

Not subject to tax

Under the Cooperative Code, cooperatives dealing exclusively with members are not subject to any government taxes or fees imposed under the internal revenue laws and other tax laws. For national taxes, some of the tax exemptions cover income tax on earnings from operations and value-added tax.

BIR Commissioner Nelson Aspe said they have to review the IRR.

A forum conducted by the Senate and House Committees on Cooperatives was held last Oct. 6 at the Capitol Social Hall, which was attended by the various cooperatives from all over Central Visayas.

It was the ninth in a series of consultations organized all over the country. It was attended by Sen. Ferdinand Marcos, Jr., vice chairman of the committee on cooperatives, and Rep. Jose Ping-ay, chairman of the House committee of cooperatives.

Former senator Miguel Zubiri, who said the law was his brainchild, also attended the gathering as consultant of Sen. Manuel Lapid, the chairman of the Senate committee on cooperatives.

The discussion revolved around the difficulty of getting a CTE.

Lawyer Vivian Maquiling of the Dumaguete Private Cooperative said they have been “compliant and obedient” in complying with the requirements in getting a CTE but the BIR asked for documents beyond what are indicated in the law like a sworn statement from the cooperative.

She appealed to the BIR to stick to the documentary requirements in order to speed up processing of CTE.

Explanation

A BIR representative who facilitated Maquiling’s papers stood up and explained that she had asked for a sworn statement because the signatories of the cooperative differ.

Ping-ay interrupted and asked the BIR employee if she was aware that each year, officials of a cooperative change. He said this was the reason signatories vary.

Garcia said a simple exercise of common sense should have been done on the part of the BIR, which was to call and verify to the CDA where the cooperative of Maquiling belongs.

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