The legal basis for requiring candidates and parties to submit "full, true and itemized" statements of contributions and expenditures (SOCEs) in relation to their electoral campaigns is found in Section 107 of the OEC, and punishable as an election offense under Section 262 of the OEC. While this has been repealed by Section 39 of RA 7166 and consequently decriminalized and is no longer an election offense, Section 14 of RA 7166 still requires the filing of SOCEs:
"Section 14. Statement of Contributions and Expenditures: Effect of Failure to File Statement. - Every candidate and treasurer of the political party shall, within thirty (30) days after the day of the election, file in duplicate with the offices of the Commission the full, true and itemized statement of all contributions and expenditures in connection with the election.
No person elected to any public office shall enter upon the duties of his office until he has filed the statement of contributions and expenditures herein required.
The same prohibition shall apply if the political party which nominated the winning candidate fails to file the statement required herein within the period prescribed by this Act.
Except candidates for elective barangay office, failure to file the statements or reports in connection with electoral contributions and expenditures as required herein shall constitute an administrative offense for which the offenders shall be liable to pay an administrative fine ranging from One thousand pesos (P1,000.00) to Thirty thousand pesos (P30,000.00), in the discretion of the Commission.
The fine shall be paid within thirty (30) days from receipt of notice of such failure; otherwise, it shall be enforceable by a writ of execution issued by the Commission against the properties of the offender.
It shall be the duty of every city, or municipal election registrar to advise in writing, by personal delivery or registered mail, within five (5) days from the date of election all candidates residing in his jurisdiction to comply with their obligation to file their statements of contributions and expenditures.
For the commission of a second or subsequent offense under this section, the administrative fine shall be from Two thousand pesos (P2,000.00) to Sixty thousand pesos (P60,000.00), in the discretion of the Commission. In addition, the offender shall be subject to perpetual disqualification to hold public office."
Regardless of the results of the elections, or even if the candidates or parties concerned did not receive any contribution or make any expenditure, they should still submit their SOCEs reflecting such fact. (See Pilar vs. COMELEC, G.R. No. 115245, 11 July 1995)
Source: Campaign Finance Office (CFO)