Comelec: Nothing wrong with P3-M excess funds

The Commission on Elections (Comelec) said Monday there is nothing wrong with President Rodrigo Duterte’s declaration of excess campaign contributions amounting to P3 million in his Statement of Assets, Liabilities, and Net Worth (SALN).

“Without evidence or allegation to the contrary, we presume regularity,” said Comelec spokesman James Jimenez.

Jimenez cited provisions of Comelec Resolution No. 9991 or the Omnibus Rules and Regulations Governing Campaign Finance and Disclosure as allowing such actions.

Under Rule 5, Section 5 of Resolution 9991, “any unexpended balance from any contribution to candidate or party, also known as excess contributions, shall be subject to income tax.”

On the other hand, the Bureau of Internal Revenue (BIR) Regulation No. 7-2011 states that excess campaign contributions shall be considered as subject to income tax and should therefore be included in the candidate’s taxable income as stated in his/ her Income Tax Return filed for the said taxable year.

Duterte said the P3-million increase in his net worth came from excess election campaign funds in 2016. He has already settled the corresponding income tax.

Duterte received total contributions of P375 million, higher than his total expenditures of P371.46 million based on his Statement of Contributions and Expenditures (SOCE).