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Tax NGOs’ gazillions

September 9, 2021 Dennis F. Fetalino 624 views

Dennis FetalinoI don’t care about what anything was designed to do, I care about what it can do. — Apollo13

Compensation or donation?

It doesn’t matter to the taxman.

The State demands its due from the moolah you receive.

And it should not matter what kind of entity you are.

The need to tax is made even more compelling when you are a non-government organization endowed by an international charity with a defined but dubious agenda.

And you just can’t go around badmouthing an industry innovating towards the path of lesser harm to consumers while your officials or representatives are donning designer clothes, driving fancy cars, and painting the town red with such proceeds of impropriety.

Now, if Malacnang can strongly recommend a state audit of the Philippine Red Cross, which happens ro receive funding support from both official/ government and private entities, why should other NGOs not similarly be held accountable for the sourcing and spending of the cash donations they receive?

Under Republic Act 10072, PRC is acknowledged as an “independent, autonomous, non-government organization auxiliary to the authorities of the Republic of the Philippines in the Humanitarian Field”.

Thus, Presidential Spokesman Harry Roque said President Duterte has basis to urge the Commission Audit to audit funds received by PRC.

Citing Section 4.8 of CoA Circular 93-003, Roque said PRC can be audited, once the government requests the state audit agency to carry out a “special audit” of NGOs like PRC “on case to case basis”.

He also said under Article 9 of the 1987 Constitution, CoA has the power to examine on a post-audit basis all accounts pertaining to the expenditure or uses of funds by NGOs “receiving subsidy or equity, directly or indirectly, from or through the government”.

Why should other NGOs be treated any differently?

If they need to be audited, let CoA also look into their books.

If they have to be taxed, let the Bureau of Internal revenue assess their liabil;ties to the State.

Thus, consumer groups called on the Bureau of Internal Revenue to hold accountable for donor’s tax several anti-vaping NGOs that received millions from US billionaires for more than a decade, and appealed to the agency to do a lifestyle check on the people behind these NGOs to see if they are paying the right taxes.

The call came following an explosive research published by Coalition of Asia Pacific Tobacco Harm Reduction Advocates on at least seven local NGOs receiving grants from American billionaires Michael Bloomberg and Bill Gates to lobby for a ban on vaping in the country.

“You only see a few personalities with no actual physical offices, yet they receive millions of dollars from abroad. Where does the money go to?” said Anton Israel, president of Nicotine Consumers Union of the Philippines.

“These people are lobbying to ban the only scientifically proven less harmful alternative to cigarettes. Makes you really think. Are they really promoting public health or simply in it for the funds?” said Israel. “This is a highly deplorable, unpatriotic, and inhumane act. I hope their conscience will let them sleep at night.”

Vaper Ako spokesman Joaqui Gallardo said: “What we know is that donations are taxed by the government. Have these groups paid donors’ taxes? The Bureau of Internal Revenue should look into this, too.”

“They want the Senate to junk the vape bill. Do they want the vaping industry to go underground? Do they want the one million Filipino vapers to go back to smoking?” he added.

“Nicotine is addicting. So, if you are hooked, how else can you stop smoking? Millions around the world have made the switch to these less harmful products. Yet these NGOs present smokers only with two options: Quit or die. What about those who want to quit but are really having difficulty?” Gallardo said.

Israel said, “it is disheartening to know that some local NGOs allowed themselves to be used by Bloomberg to ban vaping and openly attack Congress for trying to promote tobacco-harm reduction.”

Rep. Estrellita Suansing, in a hearing conducted by the House Committee on Good Government and Public Accountability on June 9, 2021, noted that between 2007 and 2013, total grants by Bloomberg Philanthropies to government agencies and NGOs in the country reached $6.29 million.

“That’s a big amount, equivalent to more than P300 million in the seven-year period or over P40 million a year, disbursed by Bloomberg Philanthropies to local agencies and organizations, without full disclosure and transparency,” said Israel.

The House committee report showed that recipients of the Bloomberg grants in the seven-year period included government agencies such as the Food and Drug Administration, Department of Health’s Health Policy Development and Planning Bureau and National Center for Health Promotion — why is Ped Xing not surprised here?), Metro Manila Development Authority, and the Civil Service Commission as well as several NGOs.

Among the NGOs, the Framework Convention on Tobacco Control Alliance Philippines alone received a total of $1.3 million or about P65 million in Bloomberg grants from 2007 to 2012, and it used the money to lobby for various ordinances and laws.

“This is too much money going to an organization used by a foreign charity to promote the latter’s anti-vaping agenda in the Philippines,” said Gallardo.

Other NGOs which served as conduits of Bloomberg funds between 2007 and 2013 were Center for Development-Manila (received $545,165 from 2007 to 2012) Action for Economic Reforms (received $405,306 from 2011 to 2013), Acts Inc. (received $158,405 in 2010), Health Justice Foundation Inc. (received $633,804 from 2009 to 2013) and New Vois Association of the Philippines (received $139,537 from 2012 to 2013), according to documents presented to the House Committee on Good Government and Public Accountability.

The House of Representatives earlier approved on final reading a bill that recognizes THR as a public health strategy by regulating the use of non-combustible alternatives to cigarettes such as vapes and heated tobacco products.

The Senate is set to pass its own version of the bill, but the anti-vaping NGOs which accepted grants from Bloomberg launched an information campaign against the bill.

Gallardo said the Senate should investigate the findings of CAPHRA’s research on the local NGOs as they continue to receive grants beyond 2007 to 2013, the period covered by documents presented to the House hearing.

“The same NGOs are now lobbying to stop the Senate from passing its own version of the bill that seeks to provide Filipino smokers with less harmful alternatives to combustible cigarettes. We have a million vapers and users of smoke-free nicotine products who may be forced to return to smoking if we are deprived of better alternatives,” Gallardo said.

The research paper, prepared by CAPHRA Philippines representative Clarisse Virgino, noted that Bloomberg’s lobby money included at least eight grants since 2010 to HealthJustice Philippines; at least six grants since 2011 to Action for Economic Reforms; at least 10 grants since 2009 to Framework Convention on Tobacco Control Alliance Philippines; at least two grants since 2017 to Action on Smoking & Health Philippines; at least two grants since 2018 to Philippine Legislators’ Committee on Population and Development; at least three grants since 2018 to Social Watch Philippines; and at least five grants since 2014 to New Vois Association of the Philippines.

The research paper showed that several billionaire-backed charitable organizations and pharmaceutical companies spent hundreds of millions of US dollars to force an anti-vaping agenda onto unsuspecting countries, including the Philippines, Australia, Malaysia and Pakistan.

“These foundations dismiss compelling international scientific evidence and apply bullying tactics to unduly influence the public health policies of sovereign nations. While many independent Asia-Pacific countries are delivering progressive and successful tobacco harm reduction policies and programs, big money and influence – mostly American – are conspiring to demonize their work,” the research paper stated.

“The billionaires are tied to the charities with links to the pharmaceutical companies, which in turn are tied to the billionaires. Most alarmingly, they don’t reveal these ties as money changes hands, and their talking points are unwittingly parroted by government officials. Those who express opposing viewpoints are often publicly bullied into submission,” the research revealed.

Citing a Public Health England independent report, Virgino insisted that vaping is more effective than nicotine replacement therapy in helping people stop smoking. PHE, in fact, advises smokers to switch to vaping to help them quit.

A group of Filipino legislators recently called for the adoption of national policies prohibiting government agencies from receiving foreign grants without transparency and accountability.

Recognizing the need for strict policies to ensure “foreign donors” do not interfere in internal policymaking, the House Committee on Good Government and Public Accountability asked the Commission on Audit to conduct a full audit on the money received by the Philippine Food and Drug Administration from the Bloomberg Initiative to draft policies regulating vaping in the country.

The committee also recommended the review of the FDA Act on the receipt of grants and donations from local and international sources, as well as the law’s implementing rules and regulations to reflect the realities that a grant may influence the grantee.

Behold God’s glory and seek His mercy.

Pause, ponder, act, and pray, people.

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