BIR forms teams to audit cooperatives nationwide » Manila Bulletin News

Manila Bulletin Philippines

Breaking News from the Nation's leading newspaper

Tempo

Online Newspaper

Showbiz and Celebrity News

Sports News

World News
News Asia

BIR forms teams to audit cooperatives nationwide

Published

By Jun Ramirez 

Bureau of Internal Revenue (BIR) Commissioner Caesar Dulay has formed a task force in every regional office to investigate cooperatives generating unreported earnings beyond the scope of their incentives and tax exemption privileges.

MB FILE -- BIR Commissioner Cesar Dulay, (Mark Balmores / MANILA BULLETIN)

BIR Commissioner Caesar Dulay (MARK BALMORES / MANILA BULLETIN FILE PHOTO)

“It is common knowledge that many cooperatives were put up by spurious individual or group of individuals to escape payment of taxes,” said a revenue regional director.

The official said some of these cooperatives are into hospital, drug store, school, and transportation businesses.

In signing Revenue Memorandum Order No. 7-2020, Dulay said the special teams will audit the financial statements “to monitor tax compliance of cooperatives and ensure the correctness of the availment of tax exemptions.”

The BIR chief said revenue officers can look into the books of accounts of the cooperatives without securing prior clearance from the Cooperative Development Bureau as required under the Philippine Cooperative Code of 2008.

He said the old law is no longer applicable with the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

Dulay said the investigation should give priority to cooperatives with accumulated reserves and undivided net savings of P10 million and more.

“Other cooperatives with income not related to the main business under their Articles of Cooperation shall likewise be among those covered for priority audit,” Dulay added.

READ MORE: Dominguez orders BIR audit of cooperatives

Related Posts