SEC EXTENDS THE DEADLINE FOR THE FILING OF THE 2023 AFS
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [FEBRUARY 28-MARCH 6]
- SEC EXTENDS THE DEADLINE FOR THE FILING OF THE 2023 AFS
- SUPREME COURT CASES ON REAL PROPERTY TAX & INPUT VAT REFUND
- COURT OF TAX APPEALS CASES ON VAT EXEMPTION OF CONDOMINIUM ASSOCIATION DUES, 30-DAY PERIOD TO SERVE THE LOA & CUSTOMS CASE
1. TAX & BUSINESS-RELATED NEWS [FEBRUARY 28-MARCH 6]
- SM Investments to spend P5.5 billion to delist shipper 2GO
- Government raises contribution ceiling to retirement fund PERA
- Fake Ikea transactions in PH rising; cases hit 700
- Mitsubishi awarded P110.4 billion contract for North-South Railway Project
- MicroSourcing continues its growth with two new service delivery centers in Metro Manila
- DA, Nestlé ink deal to boost local Robusta output
- Friends again? Smart reopens Makati HQ after reaching ‘compromise’ with Abby Binay on P3.2B franchise tax
- Samgyupsalamat disowns 2 Makati stores with same name
- Work starts on phase two of Manila-Cavitex link
- Romy Jalosjos reportedly plans to kick out Tony Tuviera, Tito, Vic, Joey from ‘Eat Bulaga’
- D&L says P 10-B Batangas plant sets up ‘next leg of growth’
- Landbank-DBP merger in the works
- COA audits P427.67-M subsidy to Northern Samar power provider
- Maya to offer 10% p.a. interest this March 7
- Cebu’s IT-BPM group seeks DTI’s help to solve importation woes
- 80% of Baguio’s buildings have no permits
- Lazada to invest in ‘hundreds’ of delivery hubs all over Philippines
- Most PH job seekers now prefer hybrid, remote work setup
- Marcos: Mega’s Batangas plant to contribute in achieving 10% growth in agribiz investments
- Elon Musk’s Starlink at Pico de Loro Beach and Country Club: A first in Southeast Asia
- BCDA eyes tapping New Clark City’s potentials for C. Luzon dev’t
SM Investments to spend P5.5 billion to delist shipper 2GO [Philippine Star, March 6, 2023]
SM took over 2GO after Dennis Uy, the previous owner who is an ally of former President Rodrigo Duterte, sold his controlling stake in the company for P6.6 billion in 2021 to shield his empire’s balance sheet from bigger losses at the height of the pandemic.
Government raises contribution ceiling to retirement fund PERA [The Philippine Star, March 6, 2023]
The government boosted the threshold, effectively doubling, what Filipinos could contribute to Personal Equity and Retirement Account (PERA), a voluntary retirement savings program.
https://www.philstar.com/business/2023/03/06/2249692/government-raises-contribution-ceiling-retirement-fund-pera
Fake Ikea transactions in PH rising; cases hit 700 [Philippine Daily Inquirer, March 4, 2023]
Catherine Egagamao, customer contact center manager of Ikea Philippines, who has dealt with many of the complaints, said purchases included luggage, e-scooters, treadmills and laptops.
https://business.inquirer.net/389316/fake-ikea-transactions-in-ph-rising-cases-hit-700
Mitsubishi awarded P110.4 billion contract for North-South Railway Project [Bilyonaryo, March 4, 2023]
Transportation Secretary Jaime Bautista confirmed that the Malolos, Bulacan to Clark, Pampanga section of the project would be operational in 2026.
MicroSourcing continues its growth with two new service delivery centers in Metro Manila [Manila Bulletin, March 4, 2023]
MicroSourcing, the pioneer and largest offshore provider of managed services in the Philippines, held groundbreaking ceremonies for their two newest service delivery centers in Aseana City and Bonifacio Global City (BGC) on January 27 and February 3, respectively. With this addition, the company now has a total of twelve centers nationwide.
DA, Nestlé ink deal to boost local Robusta output [Inquirer Mobile, March 4, 2023]
In a statement on Friday, Nestlé Philippines said the agreement involves the implementation of the Mindanao Robusta Coffee Project, which aims to scale up Robusta coffee output to 1,000 kilograms/hectare by 2027.
Friends again? Smart reopens Makati HQ after reaching ‘compromise’ with Abby Binay on P3.2B franchise tax [Bilyonaryo, March 3, 2023]
The Court of Tax Appeals had upheld a Makati court’s decision, which compelled the Salim-controlled franchise to open its books for audit by Mayor Abby Binay, leading to the resolution of the dispute.
Samgyupsalamat disowns 2 Makati stores with same name [Interaksyon, March 3, 2023]
“Notice to the public. This is to inform the public that Samgyupsalamat Ayala Circuit Branch and Makati Cinema Square Branch are not connected with the Samgyupsalamat brand and system,” the restaurant’s management said.
Work starts on phase two of Manila-Cavitex link [Inquirer Mobile, March 3, 2023]
The 1.9-kilometer (km) Cavitex-C5 Link Segment 2 is a lane expressway that will link Cavitex R-1 (Coastal Road) from the Parañaque toll plaza to Sucat via the R-1 interchange. This is expected to reduce travel time between Sucat Road and Cavitex R-1 by 10 minutes.
Romy Jalosjos reportedly plans to kick out Tony Tuviera, Tito, Vic, Joey from ‘Eat Bulaga’ [The Philippine Star, March 3, 2023]
Former Congressman Romy Jalosjos is reportedly seeking to take control of Television and Production Exponents (TAPE) from his business partner Tony Tuviera and the show’s original hosts Tito Sotto, Vic Sotto and Joey de Leon.
D&L says P 10-B Batangas plant sets up ‘next leg of growth’ [Inquirer Mobile, March 3, 2023]
“With D&L’s vertically-integrated plant in Batangas, the company’s goal is to bring home the higher value-added processing of coconut oil, and in the process significantly reduce the total carbon footprint of its entire supply chain,” D&L said.
Landbank-DBP merger in the works [Philippine Daily Inquirer, March 3, 2023]
One of the sources said the merger of the two banks had been laid out during the term of the late President Benigno Aquino III, but was not implemented because the executive order (EO) came out late. The succeeding President, Rodrigo Duterte, was not keen on enforcing the EO signed by Aquino but instead merged Landbank and UCPB, the source noted.
https://business.inquirer.net/389164/landbank-dbp-merger-in-the-works
COA audits P427.67-M subsidy to Northern Samar power provider [Inquirer Visayas, March 3, 2023]
COA will look into the cost of materials, labor, and contracts as well as whether or not the projects were implemented in accordance with the specifications and prescribed timelines, and if Norsamelco’s monitoring system is also in place and operational.
https://newsinfo.inquirer.net/1738018/coa-audits-p427-67-m-subsidy-to-northern-samar-power-provider
Maya to offer 10% p.a. interest this March 7 [Yugatech, March 2, 2023]
To encourage more Filipinos to save and use digital transactions, Maya announced an update to its mission-led savings promo. Starting March 7, 2023, customers can boost their Maya savings with up to 10% p.a. daily interest rate the more they do wallet transactions.
https://www.yugatech.com/news/maya-to-offer-10-p-a-interest-this-march-7/
Cebu’s IT-BPM group seeks DTI’s help to solve importation woes [SunStar Cebu, March 2, 2023]
CIB.O explained that to take advantage of similar tax incentives for shipments, RBEs will need to file a tax-exempt indorsement (TEI) for every shipment at Department of Finance-Revenue in Manila but by the time the TEI is issued, the shipment/transfer of goods to Cebu are already tagged as “abandoned” by the Bureau of Customs (BOC).
80% of Baguio’s buildings have no permits [Rappler, March 2, 2023]
Data from Baguio’s Buildings and Architecture Office (CBAO) showed that approximately 80% of the city’s structures – roughly 96,000 of 120,000 structures – have no valid permits, leaving only around 24,000 structures, with proper paperwork.
https://www.rappler.com/nation/luzon/baguio-city-buildings-no-permits/
Lazada to invest in ‘hundreds’ of delivery hubs all over Philippines [GMA News Online, March 2, 2023]
At a media roundtable in Taguig City on Thursday, Lazada Philippines CEO Carlos Barrera said that the e-commerce platform is launching a “faster delivery” campaign this year as the company celebrates its 11th year.
Most PH job seekers now prefer hybrid, remote work setup [Philippine Daily Inquirer, March 2, 2023]
The online recruitment platform JobStreet found that the majority of Filipinos now prefer hybrid or remote work setups, highlighting what today’s job seekers are looking for and what employers should consider when looking for talents.
https://newsinfo.inquirer.net/1737214/most-ph-job-seekers-now-prefer-hybrid-work-setup
Marcos: Mega’s Batangas plant to contribute in achieving 10% growth in agribiz investments [GMA News Online, March 1, 2023]
STO. TOMAS, Batangas — President Ferdinand Marcos Jr. on Wednesday inaugurated food canning giant Mega Global Corp.’s third manufacturing plant here.
Elon Musk’s Starlink at Pico de Loro Beach and Country Club: A first in Southeast Asia [Manila Bulletin, March 1, 2023]
Elon Musk’s Starlink was launched at Pico de Loro Beach and Country Club (PDLBCC) recently, the first in Southeast Asia!
BCDA eyes tapping New Clark City’s potentials for C. Luzon dev’t [Philippine News Agency, February 28, 2023]
As of end-2022, investments committed by private and government locators in New Clark City have reached PHP95.51 billion while actual investments infused have already hit PHP14.59 billion.
https://www.pna.gov.ph/articles/1196272
2. SEC EXTENDS THE DEADLINE FOR THE FILING OF THE 2023 AFS
SEC Memorandum Circular (MC) No. 1, Series of 2023, dated March 1, 2023, extends the deadline for the filing of the 2023 Annual Financial Statements (AFS), thereby revising in part the earlier circular issued (i.e., MC No. 9, Series of 2022) to provide sufficient time for external auditors to complete their statutory audits.
3. SC CASES ON REAL PROPERTY TAX & INPUT VAT REFUND
[REAL PROPERTIES USED FOR GOVERNMENTAL FUNCTIONS ARE EXEMPT FROM REAL PROPERTY TAX] [CTA HAS EXCLUSIVE APPELLATE JURISDICTION OVER LOCAL TAX CASES DECIDED BY THE RTC]
Petitioners, City Government of Pagadian, its City Treasurer, and its City Assessor, filed a Petition for Review on Certiorari assailing the Court of Appeals (CA) earlier Decision and Resolution affirming the ruling of the Regional Trial Court (RTC) which declared the Respondent National Food Authority (NFA) a government instrumentality whose real properties used in governmental functions are exempt from payment of Real Property Tax (RPT). In ruling, the Court held that Rule 45 of the Rules of Court provides that the decisions of the RTC, in these cases, shall be appealable before the Court of Tax Appeals (CTA), and the latter’s decisions are appealable before this court through a Petition for Review on Certiorari. Filing an appeal before the wrong court, which acted without jurisdiction to take cognizance of the same (i.e., the NFA whose real properties used in governmental functions are exempt from payment of RPT), has become final and executory. Consequently, the Petition was DENIED, and the CA’s earlier Decision and Resolution were VOID. [CITY GOVERNMENT OF PAGADIAN, CITY TREASURER & CITY ASSESSOR OF PAGADIAN CITY VS. NATIONAL FOOD AUTHORITY, G.R. NO. 261464, AUGUST 31, 2022, UPLOADED JANUARY 16, 2023]
INPUT TAX DOES NOT REQUIRE DIRECT ATTRIBUTABILITY TO BE CREDITABLE OR REFUNDABLE
Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review on Certiorari to reverse and set aside the CTA’s earlier Decision and Resolution granting the issuance of a Tax Credit Certificate (TCC) of the Respondent Taganito HPAL Nickel Corporation on its unutilized input taxes for the taxable year 2013. Petitioner argued that the Respondent failed to determine which creditable input taxes are attributable to its zero-rated sales citing Section 112 (A) of the 1997 Tax Code, as amended. In ruling, the Court held that the law does not require direct attributability for an input tax to be creditable or refundable. However, it is required that the creditable input tax should be attributable to the zero-rated or effectively zero-rated sales. Consequently, the factual findings and conclusions of the CTA are deemed final and conclusive. Thus, the Petition was DENIED, and the Decision and Resolution were AFFIRMED. [COMMISSIONER OF INTERNAL REVENUE VS. TAGANITO HPAL NICKEL CORPORATION, G.R. NO. 259024, SEPTEMBER 28, 2022, UPLOADED JANUARY 16, 2023]
4. CTA CASES ON VAT EXEMPTION OF CONDOMINIUM ASSOCIATION DUES, 30-DAY PERIOD TO SERVE THE LOA & CUSTOMS CASE
[CONDOMINIUM ASSOCIATION DUES ARE NOT SUBJECT TO VAT] [COLLECTION OF ASSOCIATION DUES DOES NOT REDOUND TO THE BENEFIT OF CONDOMINIUM CORPORATION] [TO CLAIM FOR REFUND OF ERRONEOUSLY PAID TAX, THERE MUST BE CONVINCING PROOF OF ACTUAL PAYMENT]
Petitioner Pacific Plaza Condominium Corporation filed a Petition for Review praying for the refund or credit of its erroneously paid Value-Added Tax (VAT) against the Respondent Commissioner of Internal Revenue (CIR). Petitioner argued that the condominium dues it collected from its members are not subject to VAT. On the other hand, the Respondent countered that the gross receipts of condominium corporations, including association dues, membership fees, and other assessments/charges are subject to VAT. Likewise, the Respondent also insisted that the Petitioner failed to sufficiently prove and demonstrate that the subject taxes were erroneously or illegally collected. In ruling, the Court held that the condominium association dues collected by the Petitioner from its members are not subject to VAT. Association dues do not involve a sale, barter, or exchange of goods or properties, or sale of service; hence, they are not subject to VAT. However, the Petitioner failed to prove payment to the BIR of the amount claimed for refund. A perusal of the evidence showed that the Petitioner has no excess over the output VAT that could be refunded. Since there is no excess payment that may be the subject of a claim for a refund or credit, the Petitioner’s claim must be denied. Consequently, the Petition was DENIED. [PACIFIC PLAZA CONDOMINIUM CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10199, FEBRUARY 10, 2023]
[SERVICE OF THE LOA TO AN UNAUTHORIZED PERSON RENDERS THE ASSESSMENT VOID] [SERVICE OF THE LOA TO THE TAXPAYER BEYOND 30 DAYS FROM ITS ISSUANCE RENDERS THE SUBJECT LOA & THE RESULTING ASSESSMENTS VOID]
Petitioner Goldxtreme Trading Co. filed a Petition for Review seeking cancellation of the assessment issued by the Respondent Commissioner of Internal Revenue (CIR). Petitioner argued that the service of the second Letter of Authority (LOA) is invalid considering that the LOA was served to a certain Nins De Guzman (Ms. De Guzman) not under the employ of the Petitioner. According to the Petitioner, when the second LOA was subsequently served, such LOA has long expired. On the other hand, the Respondent argued that the Petitioner has already admitted receipt of the LOA. In ruling, the Court held that an LOA must be served or presented to the taxpayer within 30 days from the date of issuance; otherwise, it becomes null and void, unless revalidated. Here, the Petitioner’s Managing Partner explicitly denied receipt of the second LOA addressed to him. Records revealed that the Petitioner was informed and provided with a copy of the second LOA only 69 days after its issuance. Upon verification from the Post Office, it was learned that the mail matter containing the second LOA was delivered and received by Ms. De Guzman, who was neither an employee nor an authorized representative of the Petitioner. Hence, the Court finds the receipt of the second LOA by Ms. De Guzman an invalid service. Moreover, the subsequent service of the same LOA to the Petitioner on October 26, 2018, or 69 days after the date of its issuance, was likewise invalid, for failure to observe the 30-day mandatory period. Consequently, the Petition was GRANTED, and the Respondent’s letter of denial was REVERSED. Accordingly, the deficiency tax assessments were CANCELLED and SET ASIDE. [GOLDEXTREME TRADING COMPANY VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10129, FEBRUARY 7, 2023]
THE EXERCISE OF THE COURT’S JURISDICTION TO RULE ON THE DECISIONS OF THE COMMISSIONER OF CUSTOMS IS CONDITIONED ON THE TIMELINESS OF THE FILING OF THE APPEAL
Petitioner Adelc Trading/Ryan Dominique Tanjutco filed a Petition for Review praying for the reversal of the earlier Resolution of the Court in Division dismissing the case for lack of jurisdiction. Here, Petitioner only filed its Petition for Review with the Court on July 8, 2019. Petitioner reasoned that it could not file its Petition for Review earlier since its Letter for Reconsideration dated January 8, 2018, has not been resolved when it received on January 17, 2018, the physical copy of the Respondent Commissioner of Bureau of Customs’ August 26, 2016, Decision. Petitioner instead reckoned the 30-day period from June 6, 2019, when it received the Respondent’s Resolution denying the Petitioner’s Letter for Reconsideration. In ruling, the Court finds the reasoning of Petitioner unavailing. Moreover, the filing of a Motion for Reconsideration is not an available remedy in seizure proceedings. Even assuming that a motion for reconsideration was available to the Petitioner, the Court in Division has already ruled that the appeal was filed out of time. The 30-day reglementary period should be counted from the receipt of the 2016 Decision via e-mail on February 28, 2017, and the Motion for Reconsideration merely suspended the counting of the reglementary period. Consequently, the Petition was DENIED. [ADELC TRADING/RYAN DOMINIQUE L. TANJUTCO VS. THE HONORABLE REY LEONARDO B. GUERRERO, IN HIS CAPACITY AS COMMISSIONER OF THE BUREAU OF CUSTOMS, CTA EN BANC CASE NO. 2469, FEBRUARY 2, 2023]
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