The tax exemption granted under the law is not automatic since they are required to secure confirmatory rulings or certificates of tax exemption from the Bureau of Internal Revenue (BIR). The tax exemption privileges are not absolute since it does not cover all types of income and activities.
Because of these these laws, rules and regulations, churches organized and existing under the laws of the Republic of the Philippines are required to file an annual return with the BIR and with the Securities and Exchange Commission (SEC), attaching therein their financial reports that are prepared in accordance with the Generally Accepted Accounting Principles (GAAP).
Church accounting can be daunting task and many small churches struggle with it. More often than not, a member of the church with little or no accounting knowledge is drafted into the church treasurer or church financial secretary position. They may have some business accounting experience, but may not have any specific training in church accounting. The membership expects them to "handle" or "take care" of the church finances appropriately even though they have made very little provision for educating or training on the issues specific to church accounting.
May I remind you of what the LORD Jesus Christ said on Matthew 17:24-27 when the collectors of the two-drachma temple tax came and asked Peter, "Doesn't your teacher pay the temple tax?" And Jesus said to Peter, "But so that we may not cause offense, go to the lake and throw out your line. Take the first fish you catch; open its mouth and you will find a four-drachma coin. Take it and give it to them for my tax and yours."
Almost all churches that I visited are focused in providing training in the aspect of spirituality to their members but had not provided training about the issue of accounting, compliance, and taxation to the church leaders. So that we may not cause offense to the government agencies, I suggest that church leaders in the Philippines must take this issue into their considerations.
I agree sir! but how can you enforce a Church accounting and auditing within a small Church if the leaders are not related to accounting and finance? I propose that a knowledgeable individual must instruct the Church leaders (small or large) because I saw it as an opportunity for some who handles the financial gain of the Church to commit fraudulent acts just because no one is in supervision or no standard was there to forbid them in doing so. and if there is one who is knowledgeable in financial statements, they are more likely to perform fraudulent acts as no one knows about it.
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