Original article in CDA official site
Cagayan De Oro, May 31, 2017
As lawmakers extend their support to
cooperatives by heeding the call of millions of cooperative members and
agreeing to retain the VAT exemption privilege of cooperatives,
Cooperative Development Authority (CDA) Chairman Orlando R. Ravanera
continues to pronounce his continuing advocacy for cooperatives as
instruments for social justice, economic development and equity.
In a related development, speaking with
cooperative leaders in Cagayan De Oro today, Chairman Ravanera decries
the grossly unfair and foul accusations and judgement by some government
officials against cooperatives. He strongly states that cooperatives
are job generators and tax makers, and certainly not abusive enterprises
and tax shields. He describes as fully erroneous a statement alleging
that the government is losing P25 billion annually due the utilization
of said enterprises as tax shields.
Clarifying the point raised by a
government official as quoted in a newspaper article that half of the
7.6 million members of the 9,431 reporting cooperatives in the country
belong to rich cooperatives, Ravanera pointed out that the so-called
“rich” cooperatives mentioned by the official are in fact the 751
registered cooperatives with members coming from the broad and
marginalized basic sectors of society not the affluent ones and
oligarchs. Even following the unjustly slanted statement, Ravanera said
that in the average, each of the said members counting to 4,271.52 warm
bodies obtained income from the transactions of the “rich” cooperatives
at the gross amount of Php 8,102.25 each in one fiscal year. Deducting
the operational expenses, the salaries and wages of cooperative
employees that contribute income taxes, the indirect taxes, employees’
benefits, and the 30% statutory reserves intended for various purposes
such as organizational stability and development, community and social
development projects, human capital capacity building activities
particularly the membership and community-based trainings, at the net,
such amount would in actuality become “barya” when it finally reach the
pockets of each member. These so-called rich cooperatives are in the
majority, owned by poor and marginalized he said.
With deep conviction, he asks, “Should
we then deprive them of a little additional income from their
sacrificial pooling of skills, knowledge and resources through long
years of self-help and mutual help efforts just because they have built
their very own above-average cooperatives by repealing VAT exemption
privilege? Isn’t this asset reforms, financial inclusion and inclusive
growth initiated and accomplished by the ordinary people through their
cooperatives? Why don’t the financial manager and policy makers look at
VAT exemption or even the full implementation of Tax Exemption
privileges of cooperatives under the Cooperative Code of the Philippines
as incentives and rewards for the ordinary people who peacefully and
collaboratively work hard for better quality of life? And even for peace
and development in the urban areas and in the countryside?”
He further cites that there is no need
for a new law that would mandate the BIR to audit all cooperatives
because Republic Act No. 9520, specifically Articles 60, 61, and 144,
and the CDA-Department of Finance (DOF) Joint Rules and Regulations
implementing said provision of law, in relation to R.A. No. 8424 or the
New Internal Revenue Code, As Amended, particularly Section 16, provides
that the books of accounts and accounting records of the cooperatives
can be examined by the BIR. In addition, the CDA is placing these
enterprises into full scrutiny under the Agency’s regulatory activities
such as inspection, examination and even investigation. The CDA, he
said, has also institutionalized the accreditation of Cooperative
External Auditors to protect the members and the public from
exploitative and irregular acts. He continues that to address the
concerns regarding cooperative transactions with members and
non-members, the CDA now embarks on enhancing its database systems.
The CDA, according to the Chairman is
even working for collaborative partnership with other government
regulators such as the Department of Labor and Employment (DOLE) to
implement government regulations and curb abuses.
Released by:
Cooperative Development Authority (CDA)
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Original article from Cooperative Development Authority (CDA) Website: www.cda.gov.ph
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