THE savings and time deposits of members of credit cooperatives are exempt from the 20-percent withholding tax, the Supreme Court has ruled.
The Court made its ruling after it rejected a Court of Tax Appeals decision saying that the Dumaguete Cathedral Cooperative was liable to pay Internal Revenue in Bacolod City P2.64 million, which represented its tax deficiency plus interest for the years 1999 and 2000.
The Court’s Second Division said the legislative branch’s intention to give cooperatives preferential tax treatment was apparent in the Cooperative Code of the Philippines. Rey E. Requejo, Manila Standard Today
