A uniform tax rate of 30 percent for excess campaign contributions that were unutilized, unreported or erroneously reported has been proposed by Senate President Aquilino “Koko” Pimentel 3rd.
Pimentel made the proposal on Wednesday under Senate Bill 296, which aims to plug loopholes in the existing law, which does not provide for taxes on unutilized, unreported or erroneously reported campaign contributions by political parties, party-list groups and candidates.
He cited that the existing law only provides for exemption of duly reported contributions given to candidates, political parties or party-list groups from payment of a donor’s tax.
“Clearly, the law is silent as to the treatment of unreported or erroneously reported campaign contributions as well as unutilized campaign contributions. It is a well settled doctrine that since the imposition of a tax is a burden on the taxpayer, it cannot be presumed nor can it be extended by implication,” Pimentel, a member of the ruling party PDP-Laban, said.
“A law will not be construed as imposing a tax unless it does so clearly, expressly and unambiguously,” he added.