SIXTEENTH CONGRESS OF THE ) 220cT 2014
REPUBLIC OF THE PHILIPPINES ) 1S fy}
Second Regular Session ) k
HOUSE OF REPRESENTATIVES ;
H.No,__ 543

Introduced by Representative Teodorico T. Haresco, Jr.

EXPLANATORY NOTE

Article II, Section 20 of the 1987 Philippine Constitution states that “the State
recognizes the indispensable role of the private sector, encourages private enterprise, and
provides incentives to needed investments.”

One of the core transformational shifts proposed by the United Nations Post-2015
Development Agenda is to “Leave No One Behind”. This “Walang Iwanan’” call makes it
imperative that the private sector consciously consider the Millennium Development Goals
(MDGs) in the conceptualization and implementation of their programs to align it with the
Policies and programs set by government to ensure the MDGs are achieved.

The MDGs set in the United Nations Millennium Summit in 2000 prescribe and
measure eight goals that establish and advance the basis for sustained social and
economic development especially in the grassroots level. However, according to the 5th
Philippine Progress Report on the MDGs launched on August 20, 2014, the Philippines has
a good chance of meeting only half of the 8 MDGs. The government particularly failed to
substantially reduce poverty incidence (Goal 1), recording 25.2% as of 2012 versus the
target of 17.2% by 2015. It is also not expected to achieve the targets set for universal
education for all (Goal 2), improvement of maternal health care (Goal 4), and gender
equality and empowerment of women (Goal 5).

Thus, there is an imperative need for the government to harness the resources and
Support of the private sector, through the latter's Corporate Social Responsibility Fund.
According to the World Bank, Corporate Social Responsibility (CSR) is defined as ‘the
commitment of business to behave ethically and to contribute to sustainable economic
development by working with all relevant stakeholders to improve their lives in ways thal are
good for business, the sustainable development agenda, and society at large”

With this public-private partnership, the country’s chances of achieving the Post-
2015 MDG Development Agenda will likely be improved. Hence, the passage of this bill is

earnestly sought.
—_—_
Veo b Pe.
TEODORICO T. HAR , JR.

Representative


i

SIXTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES. )
Second Regular Session )

HOUSE OE REERERE HYVES

Introduced by Representative Teodorico T. Haresco, Jr.

ANACT
ENJOINING THE PRIVATE SECTOR TO JOIN THE “WALANG IWANAN” OR “LEAVE
NO ONE BEHIND” PROGRAM OF THE GOVERNMENT THROUGH THEIR CORPORATE
SOCIAL RESPONSIBILITY (CSR) PROGRAMS TO ACHIEVE THE MILLENNIUM
DEVELOPMENT GOALS BY 2015 AND BEYOND, PROVIDING A TAX EXEMPTION
INCENTIVE FOR THE PURPOSE

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1. Title. - This Act shall be known and cited as the "Walang Iwanan Act of
2014"

Sec, 2. Declaration of Policy. - The State recognizes the Millennium Declaration of
2000, containing eight (8) goals, as the development agenda to ensure that the
impact of the country’s economic development reaches even the poorest of the poor.
It also recognizes that one of the core transformational shifts proposed in the United
Nations Post-2015 Development Agenda is to “Leave No One Behind” or “Walang
|wanan’ in the national lingo. Toward this end, the State shall harness the resources
and support of the private sector, through the latter’s Corporate Social Responsibility
Fund, to improve the country's chances of achieving the Post-2015 MDG

Development Agenda.

Sec. 3. Establishment of the CSR for MDG Program. — There is hereby
established the “Leave No One Behind” or “Walang Iwanan” Program whereby the
private sector is enjoined to set aside or direct its corporate social responsibility
(CSR) funds to projects that are synchronized with the government's programs to
achieve its MDG commitments.


Sec. 4. CSR for MDG Certification and Coordinating Council. - A Certification
and Coordinating Council is hereby created to coordinate, monitor and certify the
private corporations that donate gifts (cash and in kind) to MDG implementing
agencies or directly adopt projects aimed towards the attainment of the country's
Post 2015 MDGs, The Council shall be composed seven (7) members, as follows:
the Director General of the NEDA as Chairperson; the Secretary of the Department
of Social Welfare and Development, the Secretary of Finance, the Secretary of
Health and three (3) representatives from the private sector belonging to the League
of Corporate Foundation, Philippine Business for Social Progress and from the
national federation of SMEs. The private sector members of the Council shall be
appointed by the President of the Philippines. The NEDA, as the lead agency
monitoring the country’s MDG activities, shall provide secretariat support to the
Council.

Sec. 5, Tax Exemptions. - The provisions as of any general or special law to the
contrary notwithstanding gifts and donations of all kind and cost of projects under the
“Leave No One Behind” or “Walang Iwanan” Program upon the certification of the
Council, shall be:

a. exempt from the donor's tax;

b. considered as allowable deductions from the gross income of the donor, in
accordance with the provisions of the National Internal Revenue Code of
1997, as amended: Provided, that the allowable deductions shall be
equivalent to one hundred fifty percent (150%) of the value of such
donation: Provided, moreover, that valuation of assistance other than
money shall be based on the acquisition cost of the property or project.
Such valuation shall take into consideration the depreciated value of the
property in case said project has been used;

Sec. 6, Implementing rules and regulations. - Within six months following
approval, the Council created herein, in consultation with the DSWD, DOF / BIR,
DOH and private sector representatives, shall prepare the implanting rules and
regulations to implement this act.


Sec. 7. Separability Clause. - In the event that any provision of this Act is declared
unconstitutional, the validity of the other provisions shall not be affected by such declaration.

Sec. 8. Repealing Clause. — All laws, decrees, orders, rules and regulations or
parts thereof inconsistent with this Act are hereby repealed or modified accordingly.

Sec. 9. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in two (2) national papers of general circulation
Approved,