BIR: Tax deductions on donations require proof

In the season of giving, the Bureau of Internal Revenue (BIR) reminds tax deduction claimants that donations made to accredited non-stock, non-profit corporations have to be accompanied by pieces of evidence or proofs.

BIR reiterates¬†its power to examine books of accounts and other pertinent records for purposes of ascertaining tax compliance, including tax deductions. To be exact, the NIRC provides: “[a]ny provision of existing general or special law to the contrary notwithstanding, the books of accounts and other pertinent records of tax-exempt organizations or grantees of tax incentives shall be subject to examination by the Bureau of Internal Revenue for purposes of ascertaining compliance with the conditions under which they have been granted tax exemptions or tax incentives, and their tax liability, if any” (Paragraph 2, Sec. 235 cf. Sec. 34 [H] [4], NIRC). Continue reading here.