Post Activity Report on Cooperative Tax Forum

               By: Raymund C. Macomis

I.       TITLE               : Cooperative Tax Forum

II.     DATE                : August 24, 2011

III.   VENUE              : PCDO Training Room Capitol 
                               Compound, City of Balanga

IV.  SPONSORING     : Provincial Government of Bataan 

AGENCIES         through the Provincial 

                        Cooperative Development 

Office in cooperation  with the 

Bureau of Internal Revenue, 

Pag–ibig and Cooperative 

Development Authority

V. PARTICIPANT         : 70 coop leaders from 63 coops

VI.   OBJECTIVE          : To raised the concerns of 

                                  Cooperatives to BIR

   particularly the extent of  

   coverage by the

   Certificates of Tax 

   Exemptions issued to the

   cooperatives by the BIR 

   and to be updated by the

   Pag – ibig Fund.

VII. HIGHLIGHTS       :

-      registration began at 12:30 pm by the PCDO staff

-      the seminar proper started at 1:20 pm with a prayer followed by the National Anthem through audio visual  presentation by Mr. Tanciongco of PCDO

-      Pangakong Kooperatiba was headed by Mr. Rubiano of PCDO

-      the welcome remarks was delivered by Mr. Paguio Jr, PCDO – CDD

-      updating & understanding the Memorandum Circular issued by the BIR

-      mandatory membership to Pag – ibig Fund

-      Ms. Esperanza Castro, assistant revenue district officer discussed the Joint Rules and Regulations on RA 9520

-      recall what transpired in the tax forum last June 02, 2011 in Sacop, Pampanga 

-      gray areas in the Joint Rules just have to be discuss by the former Senator Miguel Zubiri and Cong. Ping Ay to RDO of Bataan to make it clear

-      classification of cooperatives

-      cooperatives which transact business to members only

-      cooperatives which transact business to both members & non-members

-      with accumulated reserves and undivided net savings of not more than P10M

-      with accumulated reserves and undivided net savings of more than P10M

-      principles of cooperative is to deal with members only

-      tax exemptions of cooperatives dealing with both members and non members are the same with the exemptions of cooperatives dealing with members only provided the accumulated reserves and undivided net savings are not more than ten million

-      members exemption:

Ø        tax on dividend

Ø        doc. stamp on transaction of members to coop

-      cooperatives should always inform the BIR for any change/amendment of name, capital contribution and business undertaken by the coop

-      old CTE need to be re – applied  

-      the accredited auditor of CDA should also be accredited by the BIR 

-       all Certificate of Tax Exemption/Ruling where it was emphasized that tax exemption privileges to a cooperative do not extend to its individual members should give a xerox copy  to the BIR to address the concern to the region office

-      Pag – ibig Fund representatives discussed RA 9679 and Pag – ibig Fund updates

-      any person whose income is more than one thousand is required to be a member of Pag – ibig Fund

-      Pag – ibig membership will be required in securing Mayor’s permit

-      Ms. Capili of CDA gave her updates to cooperatives:

Ø  processing of CGS is not the same

Ø  GA should follow some guidelines

Ø  social audit report is required by 2012

Ø  every officer should comply with the required trainings

-      Mr. Dizon, BCDC Chairman, gave his inspirational message

-      Ms. Sugatain, PCDO, wrap up the discussion with the BIR and share her insights with regards to the coop and FAB where she will be detail starting September

-      We call it a day at 4:45 pm.