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HomeBiz NewsCo-op tax exemption probe sought

Co-op tax exemption probe sought



A PHILIPPINE senator has filed a resolution that seeks to look into a Bureau of Internal Revenue (BIR) requirements for cooperative members to present Tax Identification Numbers (TIN) to avail of tax incentives after complaints of stalled tax exemptions.

Senate Resolution No. 1286, which Senator Sherwin T. Gatchalian filed on Jan. 21, sought to conduct an inquiry into the BIR’s revenue district offices refusing to accept TIN from cooperatives seeking tax exemptions.

“Despite the existence of the Online Registration and Update System, there have been numerous reports of its unavailability and downtime hence, making it difficult for cooperatives to apply for TIN of their members online,” based on a copy of the resolution.

In a statement, Mr. Gatchalian said most members of local cooperatives are from the informal sector of the economy who often opt not to obtain TINs.

“Cooperatives are designed to empower our poor constituents, especially those in the informal sector,” he said. “But the BIR requirement has created a lot of confusion and discouragement. For example, if you have market vendors as coop members, you cannot just force them to get a TIN.” – John Victor D. Ordoñez

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