Weightlifter and Olympic gold medalist Hidilyn Diaz need not declare in her income tax return all the gifts she received after winning in the 2020 Summer Olympics held in Tokyo.
“The Bureau of Internal Revenue has resolved it. They are donations subject only to 6-percent donors’ tax, payable by the donor,” Finance Secretary Carlos Dominguez III told journalists in a Viber message yesterday.
This as various companies have pledged multimillion pesos worth of gifts, in cash and in kind, to Diaz, who gave the country its first Olympic gold medal.
Asked if he thinks that other athletes would be encouraged to give their best if the government does not slap any tax on these gifts, Dominguez said “No, I don’t.”
Dominguez is also not amenable to proposed measures in Congress that exempts Diaz from paying taxes on these gifts.
“All Philippine citizens and residents have an obligation to share in the cost of the provision of public goods to society,” he said.
Meanwhile, Dominguez said one of the donors who provided rewards to Diaz has cited the Tax Reform for Acceleration and Inclusion law as another reason for the outpouring of support for the weightlifter.
Based on the message of the unidentified donor, which Dominguez shared to journalists, imposition of “lower and very reasonable” donors’ tax under the Train law has encouraged companies to incentivize Diaz’ feat.
“Without Train, it would be impossible for all donors to give so much. She would not have been showered with so many gifts. That’s why we see unprecedented generosity from the community this time because of a reasonable donor tax,” the donor said.*PNA