There are 37 large cooperatives existing in the region including two cooperative banks based in CAR that were registered and being monitored by CDA Central Office. Out of the 39 large cooperatives, three emerged as billionaires, two of which are based in provinces (Tabuk MPC and ADTEMPCO) while the other one is located in the City of Baguio (BBCCC). Based on the growth trend, the BSU MPC became a billionaire last 2017 and can be considered to be one of the region’s fast growing cooperative having attained a billionaire status in the span of 18 years. Most of the billionaire cooperatives have existing satellite or branches with ADTEMPCO having the most number that are sparsely located in different provinces and City of CAR and Region I.
Further, the conduct of Inter-partnership Program, linkages with local government units, line agencies, training providers and external auditors and established cooperative development offices/councils provided avenues to campaign for massive submission of reportorial requirements.
Monitoring of tax exemption based on reports submitted indicated an increase of 12.11% compliance in terms of securing tax exemption from 2015 to 2017. Some possible factors of the increase is the fact that the number of compliant cooperatives increased not to mention that most of the certificate of tax exemption were issued in 2010-2011 that expired 5 years after its issuance.
The SEU and Registration Section closely coordinated with other sections for the immediate issuance of COC to newly registered cooperatives that resulted in a 100% COC issued to newly registered cooperatives in 2017. These cooperatives were encouraged to secure BIR Certificate of Registration and apply for CTE just after registration. Another strategy was the conduct of Tax Forum in different parts of the region wherein BIR employees take part in discussing tax exemption privileges of cooperatives with cooperative officers, members and staff as participants. In addition, some local government units require the presentation of Certificate of Tax Exemption as proof of entitlement to the payment of business permits.
The number of inspected cooperatives increased by .4% from 622 inspected cooperatives in 2016 to 626 inspected cooperatives in 2017. The 100% inspection of cooperatives in 2017 indicate the willingness of CDS IIs to persevere and focus on inspection given that other functions like registration of new cooperatives, amendments, collection of and processing of reportorial requirements were delegated to personnel assigned at the regional office.
Further, data reveal declining figures on the number of findings gathered as the results are acted upon by cooperatives. The sustained conduct of follow-up inspection contributed to the favorable results as indicated by the 890 remaining findings out of the 3,317 gathered findings in 2016. This indicates the willingness of cooperative officers and management staff to comply in the elimination of findings in their respective cooperatives.
Willingness of some cooperative leaders to attend trainings could have broadened their horizons and improved the management of cooperatives. Also, technical assistance rendered both at the regional and field level might have encouraged officers and staff to perform their respective tasks. In the effort of CDA-CAR to reach out to all those concerned, the major findings collated by the SEU were presented in one forum sponsored by Municipal Government of La Trinidad.