PHILIPPINE TAXPAYERS

ORGANIZATION

Transparency and
Accountability Network (TAN)

October 2006
 DISCLAIMER

“The views expressed in this report are strictly those of the authors and do not necessarily reflect those of
the United States Agency for International Development (USAID) and the Ateneo de Manila University”.
 PHILIPPINE TAXPAYERS ORGANIZATION (PT0) 1
(Revised Concept Paper) 2

I. BACKGROUND/RATIONALE

The Philippine Taxpayers Organization believes that the taxpayers should have special interest in
running government. Our tax payment is the main source of government income and about 80%
of the government’s annual collection comes from our taxes.

With the current tax system that is flawed with complicated regulations, burdensome
documentary requirements, and undue exercise of discretion, the PTO believes that there is a need
for a simplified tax system, wider and proper dissemination of relevant taxpayer and public
information, and taxpayer education.

The PTO shall educate the public on taxation and create venues for knowledge building on the
issues concerning taxes. Through this, the PTO seeks to address external corruption with an
informed taxpaying public intolerant of all forms of corruption. The PTO recognizes the need to
promote a sense of “tax consciousness” among the Filipinos. It believes that every Filipino should
pay the correct amount of tax and caveat to this obligation is their right to be informed of
government revenue collection, allocation, and actual expenditure.

The PTO believes that taxpayer participation in improving tax administration is a strategic move
towards an improved tax system. The PTO therefore shall establish participative mechanisms that
will translate to a more transparent, accountable, and efficient tax system.

Apart from these, the PTO shall provide the necessary assistance to taxpayers and advocate for
the issues and concerns of the voiceless and defenseless stakeholders. The PTO shall be unbiased
and non-partisan in doing its mission. It shall, at all times, maintain a credible and independent
reputation.

VISION:

An empowered taxpayer who recognizes his duties and responsibilities to pay proper taxes and a
government that collects and spends taxes efficiently, transparently and honestly.

II. MISSION

ƒ To serve as the voice of the defenseless and underrepresented taxpayers

III. OBJECTIVES

SHORT TERM (1-2 years)

ƒ To build capacity for research
ƒ To build up knowledge on the tax system and policies affecting the small and
underrepresented taxpayers
ƒ To initially engage with relevant government agencies and policy-makers
ƒ To begin to build a modest-sized constituency of highly motivated taxpayers
ƒ To build networks with other taxpayer groups

1
The results of the consultations and dialogues with various stakeholders during the first half of 2006 were already incorporated in
this revised Philippine Taxpayers Organization concept paper.
2
With inputs from the November 16, 2006 PTO Meeting
1
MEDIUM TERM (3-5 years)
ƒ To continue and expand research (include expenditure and budgeting)
ƒ To promote tax consciousness and educated taxpayers on the basics of taxation
ƒ To provide basic taxpayer services (e.g. How to Attain a TIN, How to Register a Small
Business)
ƒ To increase membership by at least 25%
ƒ To be recognized as a credible and sober representative of taxpayers
ƒ To effectively intervene in policy-making decisions and formulation

LONG TERM (Beyond 5 years)

ƒ To continue and expand research (include expenditure and budgeting)
ƒ To provide the full range of taxpayer service (e.g. legal and technical assistance)
ƒ To open membership to the broad taxpayer base
ƒ To firmly establish the association’s reputation among the policy-makers, media and the
general public

IV. MANAGEMENT AND FUNDING

The PTO shall have a Secretariat and Board of Trustees. Members of both shall not hold an
elective position. This will ensure the fairness, objectivity and non-partisan nature of the
organization.

The Board of Trustees shall consult with a Board of Advisers. The members of the Board of
Advisers shall be publicly recognized as non-political people of integrity, credibility, and adheres
to the principles and core values of the PTO.

The PTO shall be flexible in the way it sources its funding (e.g. membership fees, donations)
except in ways where conflict of interest may arise and/or the source of the fund is known to
come from criminal activities.

V. MEMBERSHIP

Initially, membership in the PTO shall be by invitation, specifically targeting individuals that
adhere to the PTO’s core principles and values and are highly motivated and concerned on
taxpayer issues. Eventually, membership shall open up to all taxpayers determined as small and
underrepresented by the PTO Board of Trustees. A Tax Identification Number is a requirement
for all the members of the PTO.

Each member shall pay Php100 registration fee.

VI. PROGRAMS

The programs of PTO can be summarized under two headings:

I. RESEARCH AND ADVOCACY

ƒ The PTO, in consultation with various stakeholders, shall formulate a Taxpayers’ Bill
of Rights and Responsibilities propose for the passage of such Legislation. (short
term)

2
 ƒ The PTO will create a database of information that shall include BIR issuances,
amendments, and other relevant BIR policies that should be made public. The PTO
will have a website that shall contain this database together with other relevant news
and feature articles as well as BIR updates. The website shall also have a special
section for taxpayer reports and complaints that the PTO shall review, consolidate,
and submit to the Bureau for action. It shall also be the PTO’s responsibility to
follow-up on these reports and provide the complainants with feedback and/or action
undertaken by the Bureau (long term).

ƒ The PTO shall do a review of the tax policies and propose amendments for
simplification. In this regard, the PTO shall conduct continuous dialogues with the
Bureau of Internal Revenue and Department of Finance. (medium term)

II. EDUCATION AND INFORMATION CAMPAIGN

ƒ Media and Communications Strategy to get people to recognize their tax duties and
responsibilities (short term)

ƒ Conduct of Trainings and Seminars --The PTO shall conduct trainings and seminars
on the basic principles of taxation, on specific rules and regulations, and BIR
issuances (medium term)

ƒ Taxpayer Assistance—the PTO shall offer taxpayer assistance through a Taxpayer

Service and Information Desk that shall be present at BIR regional and district
offices. The PTO shall also make available independent source of information on
taxes and offer legal assistance to taxpayers. The PTO shall also entertain substantial
taxpayer reports and complaints in all forms and forward such to BIR and demand
action from the Bureau. (ongoing – project of FOCIG) (towards the end of medium
term)

ƒ Publications – The PTO will publish an academic journal and a newsletter

publication. The academic journal shall contain research works of academics in the
field of taxation and governance. The newsletter on the other hand shall be filled with
tax-related tidbits that convey a message of fiscal concern as well as updates on new
BIR issuances, amendments, and other relevant information. The said publication
shall also feature all monitoring reports done by media and/or civil society watchdogs
on government expenditure. All publications shall be made available in the PTO
website. (medium term)

ƒ Special campaigns – The PTO will launch a full-scale campaign involving press
conferences, news releases, petitions, commentaries, public events, speaker tours and
paid advertising on highly debated issues concerning taxpayers. (medium term)

ƒ Hosting conferences – The PTO shall hold national and international conferences that
will help in expanding the advocacy of the organization. These conferences shall
likewise provide a venue for exchange of information on best practices and
benchmarking purposes. (medium term to long term)

News Conferences and Releases – At times, certain issues warrant special attention. When the
situation arises, the PTO shall send out a new release or holds a news conference to get media and
public attention. (emergency response – short term)

3
 DRAFT

(Non-Stock)
BY-LAWS

OF

Pinoy Individual Taxpayers Organization (PITO), Inc.

ARTICLE I
NATURE OF THE ORGANIZATION

The Pinoy Individual Taxpayers Organization (PITO) was formed primarily to provide the
necessary assistance to taxpayers and advocate the issues and concerns of the small and
underrepresented stakeholders in tax administration and tax policy.

PITO recognizes the need to promote a sense of “tax consciousness” among the Filipinos.
It believes that every Filipino should pay the correct amount of tax and caveat to this
obligation is their right to be informed of government revenue collection, allocation, and
actual expenditure.

The PITO believes that taxpayer participation in improving tax administration is a strategic
move towards an improved tax system. The PITO therefore shall establish participative
mechanisms that will translate to a more transparent, accountable, and efficient tax system.

The PITO envisions an empowered taxpayer who recognizes his duties and responsibilities
to pay proper taxes and a government that collects and spends taxes efficiently,
transparently and honestly. It shall work to provide the necessary assistance to taxpayers
and advocate for the issues and concerns of the small and underrepresented taxpayers.

The PITO shall be unbiased and non-partisan in doing its mission. It shall, at all times,
maintain a credible and independent reputation.

ARTICLE II

GENERAL MEMBERSHIP

Section 1. Composition

PITO membership shall have the following classification of members:

a. Regular members
b. Associate members

Members to the association can be either individual or organizational. Regular members are
composed of individuals while associate members are composed of individuals and/or
organizations.

1
 DRAFT

Organizational members shall be represented by the duly authorized senior representative

of the organization, hereinafter the Authorized Representative, with one or two alternate
representatives, hereinafter the Alternative Representative(s).

Section 2. Qualifications of Regular Members

Applicants and members of the Pinoy Individual Taxpayers Organization adhere to the
principles of PITO, and the rules and regulations of the association. Other criteria for
acceptance of members in the Organization are as follows:

a. Must have a Tax Identification Number

b. Must adhere to the PITO Vision-Mission, Objectives, and Principles
c. Must be recommended by two PITO members and confirmed by the Board of
Trustees

Section 3. Manner of Application

The PITO Membership Committee will set the manner of applying and accepting
applicants to the organization.

Section 4. Membership Fees

Membership fees in an amount to be set by the BOT shall be collected from each member
every year. The annual membership fees are subject to change as deemed necessary by the
Board of Trustees.

Members will be consulted for any changes in the membership fee.

Section 5. Rights of a Regular Member

All regular PITO members shall have the following rights:

a. To be eligible to any elective or appointive office of the association;

b. To participate in all deliberations/ meetings of the general membership;
c. To avail of all the facilities and services of the association;
d. To vote on all matters presented before the general membership that are subject to
voting;
e. To recommend new PITO members; and
f. To access all information available within the association

Section 6. Duties and Responsibilities of a Member. All members shall have the
following duties and responsibilities:

a. To continually comply with all tax-related laws of the Republic of the Philippines;

2
 DRAFT

d. To obey and comply with the by-laws, rules and regulations of the Association that
maybe promulgated from time to time;
c. To attend meetings of the association;
d. To pay membership dues and other assessments of the association;
e. To support the objectives and adhere to the principles of the Association

Section 7. Annual Meetings. An annual membership meeting will be held every March,
wherein accomplishments made during the current year and plans for the following year
shall be reported to the general membership. The association will observe fiscal year from
January 1 until December 31 of each year.

Section 8. Meeting Notices

Notices of the time and place of annual, regular, and special meetings shall be
communicated by the Secretariat via all communication modes at least ten (10) working
days before the meeting. The notice of every special meeting shall state briefly the purpose
or purposes of the meeting.

Section 9. Conduct of Meetings

General membership meetings shall be convened by the Secretariat and presided over by a
member of the Board of Trustees, preferably the Chairperson.

Section 10. Manner of Voting

In cases where agreements have to be achieved during the meeting, each individual
member represented in the General Assembly, is entitled to one vote.

A regular member may send a proxy to any of the general membership meetings and such
proxy is authorized to vote on behalf of the member. An alternative representative’s vote
shall be considered valid unless otherwise revoked by the member concerned.

Section 11. Suspension, expulsion, and termination of membership. Suspension,

expulsion, and termination of membership shall be in accordance with the rules and
regulations of the association.

ARTICLE III

BOARD OF ADVISERS

Section 1. Composition

The Board of Advisers shall be composed of at least five (5) members identified by the
Board of Trustees.

3
 DRAFT

Section 2. Criteria for the Board of Advisers

The Advisers must be Filipino citizen, of legal age and should have a good reputation as a
taxpayer. He/she should be a person of integrity and with good moral character and should
adhere to the principles of PITO. Also, each member of the Board of Advisers should not
be facing any criminal cases.

Section 3. Role of the Board of Advisers

The Board of Advisers shall provide their technical expertise related to tax policies and tax
administration issues, and shall advise PITO on various issues and advocacies. The Board
of Advisers is automatically invited in the BOT meetings.

Section 4. Term.

All members of the Board of Advisers shall have a one-year term upon invitation by Board
of Trustees.

ARTICLE IV

BOARD OF TRUSTEES

Section 1. Board of Trustees

The corporate powers of the association shall be exercised, its business conducted and its
property controlled by the Board of Trustees.

Section 2. Qualifications

The trustees to be elected must be Filipino citizens, of legal age and members in good
standing. He/she should be a person of integrity and with good moral character and should
adhere to the principles of PITO, as well as the rules and regulations of the association.
Additional criteria for the selection of Board members are:

a) Ability to represent/articulate PITO’s agenda vis-à-vis government, media,

and other stakeholder groups
b) Availability of time to be devoted to PITO executive matters
c) Elected in their individual capacity composition

Section 3. Disqualification of Trustees or Officers

No member convicted by any legal court of an offense punishable by imprisonment, or

holds any criminal or administrative case, or a violation of the Corporation Code of the

4
 DRAFT

Philippines committed within five (5) years prior to the date of his election or appointment,
shall qualify as a trustee or officer.

Section 4. Composition

The Board of Trustees shall be composed of seven (7) members, who are elected by the
General Membership.

Section 5. Powers of the Board

The Board shall exercise the following powers:

a. Oversee the implementation of PITO policies

b. In between General Assemblies
b.1. Make final decisions on urgent issues
b.2. Undertake preliminary work on framing and organizing issues for discussion
during the next General Assembly
c. Formulate or recommend proposals/resolutions to the General Membership on
organizational issues and concerns
d. Create committees and appoint heads of committees (i.e. membership and election
committee, ways and means committee, media and public relations committee,
research, education, and advocacy committee, etc.)
e. Appoint an Executive Director and other key positions in the organization
f. Ratify applications for PITO membership
g. Exercise primary responsibility of representing PITO in press conferences,
dialogues with government agencies, other stakeholders, and other such forums
h. Oversee the implementation of PITO projects and activities

Section 6. Election and Terms of Office

The Board of Trustees shall be elected by the general membership in the following manner:

a. Nominations made by the general membership

b. Each member shall vote for seven nominees at most.

Initially, the term of the top four (4) elected members shall be for two years while the term
for the bottom three (3) shall be for one year, and until their successors are elected and
qualified. After the initial election of the members of the BOT, the term shall be for two
years.

Section 7. Meetings

The Board of Trustees (BOT) shall meet once a month, or at any other frequency deemed
necessary by the BOT, to discuss business arising from committee activities as well as
organizational matters. Special meetings may be called by the Chairman through the
Secretariat in the event that urgent issues arise requiring immediate attention of the Board.

5
 DRAFT

Section 8. Quorum

A quorum for any meeting of the members shall consist of a simple majority of the
members and a majority of such quorum may decide any question at the meeting. If no
quorum is constituted, agreements reached during the meeting shall be presented to the
General Membership via email. If no objections are raised within five (5) working days,
agreements shall be considered ratified except those matters where the Corporation Code
requires the affirmative vote of a greater proportion.

ARTICLE V

THE OFFICERS

Section 1. Officers

The officers of the association shall be composed of a Chairperson, a Vice-Chairperson, a

Secretary, and a Treasurer and shall be elected by the Board of Trustees from among
themselves. The Secretary need not be a member of the BOT.

Section 2. Election and Terms of Office

All officers of the association shall hold office for one year and until their successors are
duly elected and qualified. All positions shall be voted upon by members of the Board of
Trustees.

ARTICLE VI

FUNCTIONS AND POWERS

OF THE BOARD OFFICERS

Section 1. Chairperson

The Chairperson shall be the Chief Executive Officer of the association. He shall preside in
all meetings of the members of the association and the Board of Trustees. Other
responsibilities of the Chairperson include:

• Overseeing the conduct of the Association’s business;

• Overseeing and reviewing the Association’s strategic direction and objectives;
• Monitoring the Association’s accounting and financial reporting practices and
reviewing the Association’s financial and other controls;
• Overseeing the Association’s compliance with applicable laws and regulations

Section 2. Vice-Chairperson

6
 DRAFT

The Vice-Chairperson shall exercise all powers and perform all duties of the Chairperson
during the absence or incapacity of the latter and shall perform duties that maybe assigned
by the Board of Trustees.

Section 3. Secretary

The Secretary shall give all notices required by these by-laws and keep the minutes of all
meetings of the members and the Board of Trustees in a book kept for that purpose. He
shall keep the seal of the association and affix such seal to any paper or instrument
requiring the same. He shall have custody of the members’ register and the correspondence
files of the association. He shall also perform all such other duties and work as the Board of
Trustees may from time to time assign to him.

Section 4. Treasurer

The Treasurer shall have charge of the funds, receipts, and disbursement of the association.
He shall also perform such other duties and functions that may be assigned to him from
time to time by the Board of Trustees.

Section 5. Auditor

The Auditor has the following responsibilities:

• Regularly report to the BOT the financial status of the Association;

• General accounting and financial reporting;
• Preparation of the Association’s final annual budget and annual financial
statements;
• Conduct professional internal and external compliance and performance audits

ARTICLE VII

SECRETARIAT

Section 1. Appointment and Composition

The Board of Trustees shall appoint the Executive Director.

The Secretariat shall be composed, at the minimum, of the following full-time staff:

a. Executive Director
b. Project Coordinator
c. (2) Research and Advocacy Officers
d. Finance and Administrative Officer

Section 2. Functions

7
 DRAFT

The Secretariat shall perform the following duties and responsibilities:

a. Provide technical and administrative support to the General membership, Board of

Trustees, Board of Advisers, and other committees
b. Serve as a venue and mechanism for the sharing and exchange of information
related to tax administration issues and concerns
c. Attend and document meetings
d. Coordinate with the members on the conduct of various PITO activities
e. Perform other functions that may be assigned from time to time by the BOT

Section 3. Functions of the Executive Director

The Executive Director shall perform the following duties and responsibilities:

a. Oversee day-to-day operations of PITO

b. Support operations and administration of Board by advising and informing Board
members, interfacing between Board and staff, and supporting Boards evaluation of
Executive Director
c. Recommend yearly budget for Board approval and prudently manages the
Association’s resources within those budget guidelines according to current laws
and regulations
d. Effectively manage the human resources of the Association according to authorized
personnel policies and procedures that fully conform to current laws and regulations
e. Assure the Association that its mission, programs, products and services are
consistently presented in strong, positive image to relevant stakeholders
f. Oversee fundraising planning and implementation, including identifying resource
requirements, researching funding sources, establishing strategies to approach
potential donors, submitting proposals and administrating fundraising records and
documentation
g. And such other duties and responsibilities that may be determined by the Board of
Trustees

ARTICLE VIII

FUNDS

Section 1. Funds: The funds of the association shall be derived from annual dues, grants,
gifts, or donations. No part of the income which the association may obtain as an incident
to its operation shall be distributed as dividends to its members, trustees, or officers.

Section 2. Disbursements: Withdrawals from the funds of the association, whether by

check or any other instruments shall be signed by the Treasurer and countersigned by the
president. If necessary, the Board of Trustees may designate other signatories.

8
 DRAFT

Section 3. Fiscal Year: The fiscal year of the association shall be from January 1st to
December 31st of each year.

ARTICLE IX

OFFICES

Section 1. Location

The Secretariat Office will be located at Ateneo Center for Social Policy and Public Affairs
Building, Social Development Complex, Ateneo de Manila University, Loyola Heights,
Quezon City serves as PITO Principal office until such time that PITO is able to fully
support its operations.

ARTICLE X

AMENDMENT OF THE BY-LAWS

Section 1. Amendments

These by-laws, or any provision thereof, may be amended or repealed by a majority vote of
the members.

Adopted this ______ day of ___________________ in ___________________________

________________________________________________________________________
By the affirmative vote of the undersigned members representing a majority of the
members of the organization in a special meeting held for the purpose.

____________________ _______________________ __________________

____________________ _______________________ __________________

____________________ _______________________ __________________