Corporate election contributions
It’s Day 5 of the period for the filing of certificates of candidacy for the May 2022 elections.
The final list of approved candidacies for president, vice president, senator and other elective positions would be made available, based on the calendar of the Commission on Elections (Comelec), on Nov. 15.
By that time, the Comelec would have determined the nuisance candidates and canceled their certificates of candidacy, and allowed the substitution of candidates, if any.
After filing their certificates of candidacy, expect the members of Congress who are running for reelection or, if they have reached their term limits, vying for other elective positions to spend a lot of time in the political hustings.
And because of that, getting a quorum to deliberate and pass upon legislative measures could be challenging. More so if the lawmakers are in places with poor internet connection that will make it difficult for them to attend online or virtual sessions.
Coinciding with the start of the filing of certificates of candidacy on Oct. 1, Congress is on recess and will resume its session on Nov. 8. Following tradition, it will take a holiday break on the third week of December and reconvene on the third week of January 2022.
This means that the tax reform and revenue enhancement measures that the government’s economic team is pushing would have a small window of opportunity to become laws.
That limited time is further squeezed by the deliberations on the proposed 2022 national budget pending in the Senate. Although President Duterte has certified its urgency, its early approval may be derailed by differences between the two legislative chambers on some of its provisions as to require the convening of a bilateral conference committee to iron them out.
Thus, it looks like the economic managers’ pet bills (which the country’s major business organizations have endorsed) may not get legislative approval during the final days of the Duterte administration.
For some business executives, the start of the campaign period could be a cause of concern, too. They have to contend with the expected solicitation for contributions by the candidates.
The erstwhile blanket prohibition on corporations to give donations for political purposes has been liberalized by the Revised Corporation Code by way of a provision which reads, “… no foreign corporation shall give donations in aid of any political party or candidate or for purposes of partisan political activity.”
By limiting the prohibition only to foreign corporations, domestic or local corporations are free to extend financial or material support to political parties or candidates if they want to do so, subject to compliance with pertinent Comelec regulations.
But that privilege does not apply to all domestic corporations. Under Section 95 of the Omnibus Election Code, there are six types of companies that are prohibited from donating for partisan political purposes.
These include, among others, companies that operate public utilities, or are engaged in the exploitation of any natural resources of the nation, or hold contracts or subcontracts to supply the government or any of its subdivisions with goods or services or to perform construction or other works.
It is common knowledge that companies do not make election-related donations from the goodness of their hearts or belief in a candidate’s platform. The financial support is considered an “investment” for the future or an expectation of favorable reception from the candidate in case the company should later need his or her assistance.
The rule of thumb though in making such donations, whether in cash or in kind, is to be discreet. Only the candidate or the person closest to him or her is involved in the action.
If word gets out that a corporation has donated to a candidate, the other candidates may demand a similar treatment. But if the corporation has money to spare, it makes good and practical sense to spread the financial graces to all contestants.
For companies that may be inclined to make those donations, be reminded that they would not be subject to a donor’s tax if they are reported to the Comelec. If they are not and are later discovered, a donor’s tax would be imposed on them. INQFor comments, please send your email
