TAX & BUSINESS-RELATED NEWS [FEBRUARY 7-13]
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [FEBRUARY 7-13]
- CTA CASES
- BSP orders closure of rural bank in Zambales
- Globe says first batch of Gogoro Smartscooters, smart batteries arrive in PH
- Stock trading in GCash begins with crucial test run
- PSE probes 3 foreign brokerage firms over PLDT fiasco
- Indian fintech firm sees PH market growth potential
- PH-Japan firms sign deal for consortium to explore renewable energy projects: AboitizPower
- Gokongwei digital bank taps customer base of Cebu Pacific
- Megaworld Corp. says seven of its buildings are certified for healthiness
- Lawmaker wants Mandarin taught in schools
- Cement maker enters Cebu, Visayas market
- Filipino chocolatier earns golden ticket to EU market
- Breaking: Paxos facing SEC lawsuit over Binance USD — Report
- DOTr awards P37-b rail deal to Mitsubishi
- Delivery riders want waiver of monthly entry fee to Clark Freeport
- SM buys JCentre Mall
- BSP official says POGO third party auditor submitted spurious bank documents—Gatchalian
- After 160 years, Ateneo basic education starts shift to full co-ed
- New Seda hotel to replace old InterCon hotel in Makati
- PLDT, MVP slapped with U.S. class action lawsuits
- HYBE buys stocks of SM Entertainment founder to become largest shareholder
- Peza aims to open up to 3 new ecozones in 2023
- SEC removes 33 online lending apps in Google Play Store
- Ricky Razon-led Malampaya consortium remits $13B to gov’t
- Int’l cruise ships due in Boracay this year
- Nickel Asia unit fined for loading nickel ore export without papers
- PH ranks high in ASEAN 2022 cars, motorcycle sales
- PMA wins case over 28-hectare property
- BPI faces P135 million fine from SEC
BSP orders closure of rural bank in Zambales [Philippine Daily Inquirer, February 13, 2023]
The Monetary Board ordered Rural Bank of San Marcelino in Zambales to stop doing business and be placed under liquidation, the second bank to receive such an order so far this year.
https://business.inquirer.net/386320/bsp-orders-closure-of-rural-bank-in-zambales
Globe says first batch of Gogoro Smartscooters, smart batteries arrive in PH [ABS-CBN News, February 13, 2023]
Smartscooters users can easily swap depleted batteries for fully charged ones in seconds, which can be found in GoStations.
Stock trading in GCash begins with crucial test run [Philippine Daily Inquirer, February 13, 2023]
GCash, the mobile wallet owned by the Ayala Group’s Globe Telecom and Chinese payments giant Ant Group, secured the go-signal from the Securities and Exchange Commission (SEC) to begin in-app testing for the GStocks PH feature.
https://business.inquirer.net/386264/stock-trading-in-gcash-begins-with-crucial-test-run
PSE probes 3 foreign brokerage firms over PLDT fiasco [The Philippine Star, February 13, 2023]
The Philippine Stock Exchange, through the Capital Markets Integrity Corp. (CIMC), is investigating at least three foreign brokerage houses to determine if there was insider trading prior to telco giant PLDT’s disclosure of its budget overrun last year.
Indian fintech firm sees PH market growth potential [Philippine Daily Inquirer, February 13, 2023]
Financial technology firm Intellect Design Arena expects the Philippine market for digital financial services and solutions to continue growing this year, amid rising demand from local financial institutions and the untapped potential of the unbanked sector.
https://business.inquirer.net/386308/indian-fintech-firm-sees-ph-market-growth-potential
PH-Japan firms sign deal for consortium to explore renewable energy projects: AboitizPower [ABS-CBN News, February 13, 2023]
On Feb. 10, AboitizPower Chairman signed the MOU with Kawasaki Heavy Industries Ltd Senior Managing Executive Officer and President of Energy Solution and Marine Engineering Tatsuya Watanabe, IKS Co Ltd President Takashi Imai and Amber Kinetics CEO Edgar Chua, the company told the stock exchange.
Gokongwei digital bank taps customer base of Cebu Pacific [Philippine Daily Inquirer, February 13, 2023]
The Gokongwei-backed GoTyme Bank said it was able to muster at least 250,000 users in the Philippines since it started last year as it eyes a more rapid expansion this year through relevant tie-ups.
https://business.inquirer.net/386310/gokongwei-digital-bank-taps-customer-base-of-cebu-pacific
Megaworld Corp. says seven of its buildings are certified for healthiness [BusinessWorld, February 13, 2023]
LISTED developer Megaworld Corp. said it now has seven buildings certified for their resiliency, safety and healthiness as issued by accreditor Healthy by Design Building Institute (HDBI).
Lawmaker wants Mandarin taught in schools [Philippine Daily Inquirer, February 13, 2023]
House Minority Leader Marcelino Libanan wants the Chinese language of Mandarin taught in the schools nationwide.
https://newsinfo.inquirer.net/1728912/lawmaker-wants-mandarin-taught-in-schools
Cement maker enters Cebu, Visayas market [SunStar Cebu, February 13, 2023]
A NEW player in the cement industry, Century Peak Cement Manufacturing Corp. (CPCMC), announced the start of its operations, distributing cement to its clients in the Visayas.
https://www.sunstar.com.ph/article/1953356/cebu/business/cement-maker-enters-cebu-visayas-market
Filipino chocolatier earns golden ticket to EU market [Philippine Daily Inquirer, February 12, 2023]
Thanks to the EU’s Generalized Scheme of Preferences (GSP+) that removes import duties from products of developing countries, Auro was able to competitively price its products vis-à-vis other brands.
https://business.inquirer.net/386198/pinoy-chocolatier-earns-golden-ticket-to-eu-market
Breaking: Paxos facing SEC lawsuit over Binance USD — Report [Cointelegraph, February 12, 2023]
Paxos is the owner and issuer of BUSD, a U.S. Dollar-collateralized stablecoin that has been around since the firm struck a partnership with Binance in September 2019. It is the third-largest stablecoin, with a market cap currently exceeding $16 billion.
https://cointelegraph.com/news/stablecoin-issuer-paxos-to-face-sec-lawsuit-over-binance-usd-report
Power coops ordered to explain irregular procurement process [The Philippine Star, February 12, 2023]
The National Electrification Administration (NEA) has issued show cause orders to an aggregation of electric cooperatives (ECs) for their apparent failure to observe rules on transparency.
DOTr awards P37-b rail deal to Mitsubishi [Manilastandard.net, February 12, 2023]
The Department of Transportation awarded a P37-billion contract to Japan’s Mitsubishi Corp. for the electrical and mechanical systems and track works of the Malolos-Clark Railway Project and the North-South Railway Project.
Delivery riders want waiver of monthly entry fee to Clark Freeport [The Philippine Star, February 12, 2023]
In a statement, Foodpanda sa Pampanga, Angeles/Clark/Mambalacat-FFW said the fee would affect thousands of delivery riders for app-based services Foodpanda, Grab, Lalamove and Toktok. The fees, announced on February 6, will be collected starting February 13.
SM buys JCentre Mall [SunStar Cebu, February 12, 2023]
RETAIL giant SM is now the new owner and operator of JCentre Mall, a commercial development in Mandaue City.
https://www.sunstar.com.ph/article/1953276/cebu/business/sm-buys-jcentre-mall
BSP official says POGO third party auditor submitted spurious bank documents—Gatchalian [Manila Bulletin, February 10, 2023]
Gatchalian said this was relayed to him by BSP Governor Felipe Medalla in a letter to his office saying that an affiliate of Soleil Chartered Bank has disowned any bank certification issued in favor of Global ComRCI.
After 160 years, Ateneo basic education starts shift to full co-ed [Rappler, February 10, 2023]
In what it called a “milestone decision,” the Ateneo de Manila University (ADMU) approved the full implementation of a co-education scheme, accepting learners across any gender in its basic education program, or from kinder to senior high school.
https://www.rappler.com/nation/ateneo-transitions-basic-education-fully-co-ed-program-2023/
New Seda hotel to replace old InterCon hotel in Makati [The Philippine Star, February 10, 2023]
Filipino hotel chain Seda recently announced that by 2024, the flagship Seda One Ayala at the EDSA gateway to the Makati financial district is expected to open at the former site of the InterContinental Manila.
PLDT, MVP slapped with U.S. class action lawsuits [Philippine Daily Inquirer, February 10, 2023]
Olsson and the other investors—who purchased PLDT securities between Jan. 1, 2019 and Dec. 19, 2022, referred to as the class period or time when the alleged crime transpired—are represented by The Rosen Law Firm, P.A.
https://business.inquirer.net/385817/pldt-mvp-slapped-with-us-class-action-suits
HYBE buys stocks of SM Entertainment founder to become largest shareholder [Manila Bulletin, February 10, 2023]
HYBE, the parent Korean entertainment company of K-pop stars BTS, Seventeen, ENHYPEN and Tomorrow X Together, will become the largest shareholder of SM Entertainment, which manages EXO, NCT and Aespa.
Peza aims to open up to 3 new ecozones in 2023 [Philippine Daily Inquirer, February 10, 2023]
Of these, 13 are IT (Information technology) parks and centers, 12 are manufacturing zones, 2 are tourism zones, 1 agro-industrial parks, and 1 mixed-use ecozones.
https://business.inquirer.net/385945/peza-aims-to-open-up-to-3-new-ecozones-in-2023
SEC removes 33 online lending apps in Google Play Store [The Philippine Star, February 9, 2023]
In a statement on Thursday, the regulator said Google Philippines assisted them in removing these OLPs from circulation. The SEC said Google implemented a new policy requiring developers of personal lending apps, targetted towards users in the country, to submit a Personal Loan App Declaration before they could publish their apps within the platform’s app store.
Ricky Razon-led Malampaya consortium remits $13B to gov’t [Bilyonaryo, February 9, 2023]
The Malampaya project is one of the country’s most important power assets, as it produces natural gas for power plants in Batangas City that account for around 20 percent of the Philippines’ total electricity requirements.
Int’l cruise ships due in Boracay this year [Manila Bulletin, February 8, 2023]
The Department of Tourism-Region 6 (Western Visayas) has released an initial list of these ships confirmed to stop in the country’s most popular beach destination.
https://mb.com.ph/2023/02/08/intl-cruise-ships-due-in-boracay-this-year/
Nickel Asia unit fined for loading nickel ore export without papers [The Philippine Star, February 8, 2023]
Rio Tuba Nickel Mining Corp. announced it had paid penalties to the national government for loading nickel ores onto a carrier ship without the necessary documents.
PH ranks high in ASEAN 2022 cars, motorcycle sales [Manila Bulletin, February 8, 2023]
The Philippines ranked third most vibrant automotive market in ASEAN in 2022 after Malaysia and Vietnam as overall regional car sales grew 22.7 percent at par with the 23.9 percent growth in the region’s motor vehicle production.
https://mb.com.ph/2023/02/08/ph-ranks-high-in-asean-2022-cars-motorcycle-sales/
PMA wins case over 28-hectare property [The Philippine Star, February 7, 2023]
It also cited a Supreme Court ruling in 2019, stating that the NCIP does not have any legal power to reclassify lands that were previously included as part of the Baguio Townsite Reservation, as provided under Section 78 of Republic Act 8371 or the Indigenous Peoples’ Rights Act of 1997.
https://www.philstar.com/nation/2023/02/07/2243090/pma-wins-case-over-28-hectare-property
BPI faces P135 million fine from SEC [The Philippine Star, February 7, 2023]
Bank of the Philippine Islands (BPI) is facing a P135-million fine from the Securities and Exchange Commission (SEC) for failing to secure regulatory confirmation for its stock purchase and option plan conducted almost a decade ago.
https://www.philstar.com/business/2023/02/07/2243028/bpi-faces-p135-million-fine-sec
2. CTA CASES
ACCUSED’S FAILURE TO PAY THE DEFICIENCY INCOME TAX ASSESSED IN A VOID FORMAL LETTER OF DEMAND & ASSESSMENT NOTICES DOES NOT GIVE RISE TO ANY CRIMINAL OR CIVIL LIABILITY ON THE PART OF THE ACCUSED
Accused Rodolfo Quezon Reyes, the Proprietor of Celia’s Handbag, was charged with violation of Section 255 of the 1997 Tax Code, as amended, for the alleged refusal and failure to pay basic deficiency income tax. The Accused argued that he never received the Preliminary Assessment Notice (PAN), Formal Letter of Demand (FLD), and Assessment Notices (ANs). In ruling, examination of the PAN, FLD, and ANs shows that said notices were received by a certain Cristina E. Ellosa. With the Accused’s admission that Ellosa is his employee, there was a valid substituted service. The Accused cannot then feign ignorance that he was not able to receive the assessment notices when substituted service was made upon his employee. Notwithstanding the substituted service of the PAN, FLD, and ANs, the assessment is void for being issued beyond the 3-year prescriptive period. Also, assuming that the FLD was issued within the prescriptive period, the assessment is still void as the FLD and ANs bear no due date for payment. As the assessment is void for being issued beyond the prescriptive period and without a due date for payment in violation of the Accused’s right to due process of law, there was no reason to adjudge the Accused liable to pay deficiency income tax pursuant to the void FLD and ANs. Consequently, the Accused was ACQUITTED of the crime of violation of Section 255 of the 1997 Tax Code, as amended, for failure of the Prosecution to prove his guilt beyond reasonable doubt, without any civil liability. [PEOPLE OF THE PHILIPPINES VS. THE PROPRIETOR OF CELIA’S HANDBAG, RODOLFO QUEZON REYES, CTA CRIMINAL CASE NO. O-859, JANUARY 18, 2023]
INCOME DERIVED FROM THE JUNKET AGREEMENT WITH PAGCOR COVERED BY FRANCHISE TAX IS INCOME FROM GAMING OPERATIONS, THUS, EXEMPT FROM CORPORATE INCOME TAX
Petitioner Prime Investment Korea, Inc. filed a Petition for Review seeking the reversal of the earlier Decision and Resolution. Petitioner prayed that it be declared not liable for corporate income tax on revenues derived from its junket gaming operations and order the Respondent Commissioner of Internal Revenue to refund or issue a Tax Credit Certificate (TCC) in favor of the Petitioner for the erroneously or excessively paid corporate income tax on a junket and e-junket gaming revenues. In ruling, a perusal of the Junket Agreement showed that it allows the Petitioner to engage in casino gaming operations as Philippine Amusement and Gaming Corporation (PAGCOR)’s agent-an activity that is exempt from corporate income tax. The Junket Agreement provides that the Petitioner shall shoulder the 5% Franchise Tax due on the gross winnings on the Junket Gaming Rooms and shall remit the Franchise Tax to the PAGCOR for remittance to the BIR. Hence, the Court was convinced that the Petitioner’s income from the operation of the casino pursuant to the Junket Agreements are not subject to the corporate income tax as these are classified as “income derived from gaming operations” pursuant to Section 13(2) of the Philippine Gaming Corporation Charter. Meanwhile, the Petitioner’s payment of monthly Minimum Guaranteed Fee to PAGCOR, in exchange for PAGCOR’s grant of authority, forms part of PAGCOR’s “income from the operation of other related services” which is subject to corporate income tax. Consequently, the Petition was GRANTED, and the case was REMANDED to the Court in Division for the determination of the refundable amount. [PRIME INVESTMENT KOREA, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA EB. NO. 2483, JANUARY 9, 2023]
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