The newly approved “FREE LEGAL ASSISTANCE ACT OF 2010” gives lawyers and law firms tax incentives when they render free legal services to poor clients. (See my previous entry in this blog on the same issue).
Republic Act No. 9999 or the “Free Legal Assistance Act of 2010” sought to encourage lawyers to provide pro bono services to clients who can't afford to hire lawyers.
The new law grants participating lawyers or law firms "tax deduction of up to 10 percent of their gross income."
The exclusionary clause of the new law provides that "the actual free legal services herein contemplated shall be exclusive of the minimum sixty-hour mandatory legal aid services rendered to indigent litigants as required under the Rule on Mandatory Legal Aid Service (MLAS) for Practicing Lawyers, under BAR Matter No. 2012, issued by the Supreme Court."
To avail of the tax incentives, lawyers and law firms may apply for certification from the Supreme Court, the Department of Justice (DoJ) and the Public Attorney's Office (PAO) on rendering free legal services to the poor.
The full text of the law has not been published as of today.
I doubt if Filipino lawyers and law firms would avail themselves of the tax benefit under the new law because availment by the Bar of the provisions of the new law is purely voluntary and discretionary on its part. There is no compulsion.
My prediction is that, most probably, what would happen is that lawyers would simply comply with the Supreme Court circular on mandatory legal aid service (MLAS) under B.M. No. 2012 (whose implementation has been suspended since last year) for fear of suspension of their individual Bar licenses, which is the very same disciplinary sanction against lawyers who fail to complete 36 hours of mandatory continuing legal education (MCLE) lectures every three (3) years under B.M. No. 850 of the Court.
The detailed MLAS implementing rules have not been issued yet by the Court as of now for failure of the board of governors of the Integrated Bar of the Philippines (IBP) to submit to the Court its proposed draft thereof for the consideration and approval of the Court.
See:
http://ph.news.yahoo.com/mb/20100224/tph-gma-oks-perks-for-lawyers-rendering-020e1c8.html
