House passes CPD law amendments to ease professional license renewals
- TAX & BUSINESS-RELATED NEWS [MAY 15-23]
- BIR ANNOUNCES THE AVAILABILITY OF THE REVISED BIR FORM 2550Q JANUARY 2023 VERSION
- BIR CLARIFIES THE NEW POLICIES & GUIDELINES ON THE ISSUANCE & VALIDITY OF TIN CARDS & CERTIFICATE OF REGISTRATION
- BIR RENAMES RDO NO. 21C-CLARK FREEPORT ZONE TO RDO NO. 21C-CLARK FREEPORT & SPECIAL ECONOMIC ZONE (CFEZ)
- FIRB ADVISORY ON THE NEW GUIDELINES FOR REPORTORIAL COMPLIANCE OF CDA & CDA-REGISTERED COOPERATIVES
- CTA CASES ON THE AVAILMENT OF TAX AMNESTY & FAILURE TO SUBMIT PROTEST LETTER ON BIR ASSESSMENT
1. TAX & BUSINESS-RELATED NEWS [MAY 15-23]
- Maynilad, Manila Water can’t pass income taxes to consumers: SC
- BIR revokes CPA accreditation over fake receipts syndicate
- Meta fined $1.3 billion for violating European data privacy rules
- State-of-the-art facility opens in Carmelray Industrial Park 1
- NBI files P50 billion tax scam Rap vs Esports CEO
- Condo developer in Manila’s ‘heritage zone’ says it has permits
- Gov’t to extend CARS program by 5 years
- Senate panel OKs bill extending estate tax amnesty
- DOJ: Gov’t lost P50 billion to ‘fake receipt’ scam
- PSE suspends Phoenix, DFNN, four others
- $1-B data hub breaks ground in QC
- Nueva Ecija LGU pushes P3-B hydro-power project
- Wyeth Nutrition says no lockout of Laguna factory workers
- BIR: Proposed 1% withholding tax on online sellers ‘not a new tax’
- Marcos signs law amending AFP officers’ retirement age, maximum tenure
- Jollibee Group drops PHO24 but eyes expansion in Vietnam
- BIR allows monthly VAT filing and payment, but Lumagui cautions against abuse
18. House passes CPD law amendments to ease professional license renewals
2. BIR ANNOUNCES THE AVAILABILITY OF THE REVISED BIR FORM 2550Q JANUARY 2023 VERSION
It may be recalled that the TRAIN Law the filing of returns and payment of VAT from monthly to quarterly effective January 1, 2023. Likewise, the amortization of the input VAT on capital goods shall only be allowed until December 31, 2021. Further, beginning January 1, 2021, the VAT withholding system shall shift from final to a creditable system.
The revised BIR Form 2550Q is already available on the BIR website. However, it is not yet available in the Electronic Filing and Payment System (eFPS) and Electronic Bureau of Internal Revenue Forms (eBIRForms). Thus, eFPS/eBIRForms filers shall continue to use BIR Form 2550Q in eFPS and Offline eBIRForms Package v7.9.4 in filing and paying the VAT payable/due.
3. BIR CLARIFIES THE NEW POLICIES & GUIDELINES ON THE ISSUANCE & VALIDITY OF TIN CARDS & CERTIFICATE OF REGISTRATION
Revenue Memorandum Circular (RMC) No. 58-2023, issued on May 19, 2023, clarifies the policies and guidelines on the issuance and validity of Tax Identification Number (TIN) Card and Certificate of Registration (COR).
Highlights include the validity of the old TIN card (yellow orange) and old template of COR (yellow-orange), instances when the new TIN card (color green) shall be issued, guidelines and documentary requirements for the issuance of the TIN card and a new template for COR using the Online Registration and Update System (ORUS).
4. BIR RENAMES RDO NO. 21C-CLARK FREEPORT ZONE TO RDO NO. 21C-CLARK FREEPORT & SPECIAL ECONOMIC ZONE (CFEZ)
Revenue Administrative Order (RAO) No. 1-2023, issued on April 27, 2023, renames Revenue District Office (RDO) No. 21C-Clark Freeport Zone to RDO No. 21C-Clark Freeport and Special Economic Zone (CFEZ). This is to eliminate the possible confusion on the territorial jurisdiction of RDO No. 21C which covers not only the Clark Freeport Zone but consist of the CFEZ.
5. FIRB ADVISORY ON THE NEW GUIDELINES FOR REPORTORIAL COMPLIANCE OF CDA & CDA-REGISTERED COOPERATIVES
Fiscal Incentives Review Board (FIRB) Advisory No. 007-2023, dated April 24, 2023, prescribes new guidelines for the submission of reportorial requirements for cooperatives registered with the Cooperative Development Authority (CDA) under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act as implemented by the Department of Finance and Department of Trade and Industry Joint Administrative Order (DOF-DTI JAO) No. 001-2023.
Highlights include:
- Reports for the taxable years 2022 or prior should use older templates/reports specified in previous JAOs and Circulars.
- Reports for the taxable year 2023 onwards should use new templates/reports from JAO No. 001-2023, with specific submission deadlines.
- Cooperatives availing incentives must submit an Annual Tax Incentives and Benefits Report to the CDA by May 15 of the following year, providing detailed information on the availed tax incentives.
- The CDA must submit a Consolidated Incentives and Benefits report to the FIRB in a machine-readable format by June 14 of the following year.
- All submissions to the FIRB should be sent to firbmeg@ntrc.gov.ph, on or before the set deadline.
6. CTA CASES ON THE AVAILMENT OF TAX AMNESTY & FAILURE TO SUBMIT PROTEST LETTER ON BIR ASSESSMENT
[ABUNDANCE OF PROCEDURAL & SUBSTANTIVE REASONS ARE FATAL TO THE CASE] [TAXPAYERS’ NUMEROUS VIOLATIONS OF THE RULES ONLY SHOW THEIR CONSCIOUS DISREGARD OF THE PROCEDURES]
Petitioner Reitoh Cold Storage Inc., et. al. filed a Petition for Review by way of Mandamus praying that the Court mandate the Respondent Bureau of Internal Revenue (BIR) to issue the Certificate of Tax Delinquencies/Tax Liabilities (CTD) and Acceptance Payment Form (APF) in favor of the Petitioners so that they may be deemed to have fully complied with all the conditions set forth in the Tax Amnesty Act. According to the Petitioners, the denial of the requests for the issuance of the Notice of Issuance of Authority to Cancel Assessment (NIATCA) in their favor after they filed their Tax Amnesty Returns and APFs and paid the amnesty taxes is a decision of the Commissioner of Internal Revenue (CIR) arising under the Tax Code and its related laws; hence, the CTA is the proper court for the filing of a Petition for Review. On the other hand, the Respondent countered that the Court has no jurisdiction over the Petition, praying that the alleged decision denying the application for tax amnesty be reversed. In ruling, the Court held that it has jurisdiction over Petitions for Certiorari, Prohibition, and/or Mandamus. However, the Petitioners failed to file the Petition on time and the Petition has been rendered moot and academic by the expiration of the period for the availment of Tax Amnesty on Delinquencies. The Petitioners also failed to satisfy the essential requisites of a Petition for Mandamus. First, Petitioners should have proved a clear legal right to the issuance of the CTDS and duly endorsed APFs. Second, the Respondent has the duty to perform the act because the same is mandated by law. Third, the Petitioners failed to prove that the Respondent neglected to perform any ministerial duty. Fourth, the issuance of CTDs, APFs, and NIATCAs is a discretionary function of the Respondent, not a ministerial one. Fifth, the Petitioners have other plain, speedy, and adequate remedies in the ordinary course of law. Likewise, they failed to satisfy the essential requisites of a Petition for Certiorari. Nonetheless, even if the Court ignores Petitioners’ non-compliance with the essential and formal requisites, the Petition still fails for having been filed out of time and for being moot and academic. Consequently, the Petition was DISMISSED. [REITOH COLD STORAGE INC., WE LEAD GROUP HOLDINGS, INC., ELENCE MARINE & INDUSTRIAL CORPORATION, MBPS CABLING CORPORATION, GARUDA CONSTRUCTION CORPORATION, BCP DERMATOLOGICAL CORPORATION, AUDIO VIDEO SOLUTIONS CORPORATION, DUNAMIS IMPORT-EXPORT PHILS. INC., ALEN V. DRAGON CORPORATION, MEDEV MEDICAL DEVICES CORPORATION, CHRYSALIS CONSTRUCTION & TRADING CORPORATION, PAPISS INC., ICON REEFER CORPORATION, JRT CONSTRUCTION & TRADING CORPORATION, DATALINK SOLUTIONS TECHNOLOGY & CONSULTANCY INC., ABBE TECHNOLOGY SOLUTIONS INC. EXEQUIEL BALANLAY ADORA, KEN N RIE TRANSPORT INC., R2B2 REALTY & DEVELOPMENT CORPORATION, G2K CORPORATION, MAXX ENERGIE VENTURES CORPORATION & POWERSOURCE PHILIPPINES, INC. VS. BUREAU OF INTERNAL REVENUE, CTA CASE NO. 10420, APRIL 19, 2023]
[FAILURE OF THE TAXPAYER TO FILE A PROTEST LETTER ON FAN WILL RESULT IN A DEMANDABLE ASSESSMENT] [A VALID ADMINISTRATIVE PROTEST TO THE FINAL ASSESSMENT MUST BE FILED WITHIN THIRTY (30) DAYS FROM RECEIPT THEREOF]
Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review assailing the Court in Division’s earlier Decision which invalidated the CIR’s Final Notice Before Seizure (FNBS), Preliminary Assessment Notice (PAN), and Final Assessment Notices and Formal Letter of Demand (FAN/FLD) issued to the Respondent Four Seas Trading Corporation. The Petitioner maintained that as Respondent failed to protest the FAN within the reglementary period, the assessment had become final, executory and demandable. Being so, the Court in Division has no jurisdiction over the case. On the other hand, the Respondent whined that it never had the opportunity to administratively protest the final assessment as it failed to receive any of the assessment documents from the BIR. In ruling, the Court found that the Respondent requested copies of the FAN from the BIR, which were received on August 1, 2018. It had every opportunity to administratively protest the same with the BIR. Yet it failed to do so. Hence, the Petition was GRANTED. [COMMISSIONER OF INTERNAL REVENUE VS. FOUR SEAS TRADING CORPORATION, CTA EN BANC CASE NO. 2507, APRIL 5, 2023]
Maynilad, Manila Water can’t pass income taxes to consumers: SC [ABS-CBN News, May 23, 2023]
Under their concession agreements, Maynilad and Manila Water are allowed to recover PH business taxes. But SC pointed out that income taxes are not business taxes. These must be shouldered by the income earner, not passed on to consumers.
BIR revokes CPA accreditation over fake receipts syndicate [Philippine News Agency, May 22, 2023]
The BIR ramped up efforts to stop the tax-evading scheme of sales and use of ghost receipts.
https://www.pna.gov.ph/articles/1201941
Meta fined $1.3 billion for violating European data privacy rules [ABC News, May 22, 2023]
The fine amounts to the largest ever imposed under GDPR, which has been enforced since May 2018. Regulators said data transfers made by Meta between the United States and European Union had failed to comply with “standard contractual clauses” in place since July 2020.
https://abcnews.go.com/US/meta-fined-13-billion-violating-european-data-privacy/story?id=99500818
State-of-the-art facility opens in Carmelray Industrial Park 1 [The Manila Times, May 21, 2023]
Sercomm Philippines is a world-class professional networking equipment manufacturing site aiming to become Sercomm’s regional hub to serve North America and Southeast Asia markets, providing a one-stop integrated service of R&D design, manufacturing and quality assurance. With a more than P2.5 billion investment, the manufacturing center is expected to attract local talent and create job opportunities, with an expected total employment of 5,000 employees.
NBI files P50 billion tax scam Rap vs Esports CEO [PhilStar Global, May 20, 2023]
According to the NBI, Chong’s “fraudster company” created “dummy corporations” that serve as “ghost suppliers” to client companies that use the services of Brenterprise to fake receipts.
Condo developer in Manila’s ‘heritage zone’ says it has permits [GMA News Online, May 20, 2023]
According to a report on “24 Oras,” Suntrust issued the remarks in response to the petition of several residents in the area who are calling for a stop to the residential project.
Gov’t to extend CARS program by 5 years [Inquirer Mobile, May 20, 2023]
The government-established private sector advisory body said that President Marcos has approved the extension of the Comprehensive Automotive Resurgence Strategy (CARS) program, paving the way for another five years for the incentives program aimed at revitalizing the local automotive industry.
Senate panel OKs bill extending estate tax amnesty [ABS-CBN News, May 19, 2023]
The Senate Committee on Ways and Means on Friday passed the proposal to extend the estate tax amnesty until 2025.
https://news.abs-cbn.com/business/05/19/23/senate-panel-oks-bill-extending-estate-tax-amnesty
DOJ: Gov’t lost P50 billion to ‘fake receipt’ scam [GMA News Online, May 19, 2023]
Remulla also said a businessman is one of the alleged incorporators of the firm involved in the production of the fake documents.
PSE suspends Phoenix, DFNN, four others [Inquirer Mobile, May 19, 2023]
Davao-based tycoon Dennis Uy’s fuel retailer Phoenix Petroleum Philippines Inc. and businessman Ramon Garcia Jr.’s DFNN were among six companies suspended on Thursday from trading by the Philippine Stock Exchange (PSE) for failing to submit their 2022 annual report by the extended deadline.
DOF: P2.5 billion tax collection if estate tax amnesty extended [GMA News Online, May 19, 2023]
“We collected P4.8 billion until June 14, 2021 [during the first extension], collected P2.5 billion until March 2023. Since we were able to collect P2.5 billion during the last extension, Mr. Chair, we probably will be able to collect P2.5 billion which is the similar amount generated during the last extension,” Napao told lawmakers.
$1-B data hub breaks ground in QC [Inquirer Mobile, May 19, 2023]
The Ayala Group and its joint venture partner, Singapore-based ST Telemedia Global Data Centers (STT GDC), are spending about $1 billion to build a 124-megawatt (MW) data center in Quezon City, as the conglomerate takes on the growing hyperscaler market in the age of heightened digitalization.
Nueva Ecija LGU pushes P3-B hydro-power project [The Manila Times, May 19, 2023]
Cabiao Mayor Ramil Rivera, in an interview with reporters here on Wednesday, said National Irrigation Administration (NIA) chief Eduardo Eddie Guillen had told him in a meeting that he would push for the project’s inclusion in the 2024 national budget.
Wyeth Nutrition says no lockout of Laguna factory workers [The Philippine Star, May 19, 2023]
Wyeth Nutrition said Friday it did not implement a lockout, reiterating the company respect employees’ rights despite the nutrition giant sending 140 workers into unemployment as a result of ongoing restructuring efforts.
BIR: Proposed 1% withholding tax on online sellers ‘not a new tax’ [GMA News Online, May 18, 2023]
“The proposal is a creditable withholding tax. So it’s not really a new tax. It’s just a mode of collecting,” BIR Commissioner Romeo Lumagui Jr. told reporters at the sidelines of The Economist Impact’s Global Anti-Illicit Trade Summit in Taguig City on Thursday.
Marcos signs law amending AFP officers’ retirement age, maximum tenure [Manila Bulletin, May 18, 2023]
Under the new law, those in the grades of Second Lieutenant/Ensign (O-1) to Lieutenant General/Vice Admiral (O-9) are compulsorily retired at age 57 or upon accumulation of 30 years of satisfactory active duty, whichever comes later.
https://mb.com.ph/2023/5/18/marcos-signs-law-amending-afp-officers-retirement-age-maximum-tenure
Jollibee Group drops PHO24 but eyes expansion in Vietnam [ABS-CBN News, May 17, 2023]
The Philippines’ largest restaurant operator earlier said it previously had a franchise agreement for the operation of PHO24 in the Philippines, which is now terminated.
https://news.abs-cbn.com/business/05/17/23/jollibee-group-drops-pho24-but-eyes-expansion-in-vietnam
BIR allows monthly VAT filing and payment, but Lumagui cautions against abuse [Bilyonaryo, May 16, 2023]
“The BIR is a fair agency. Taxpayers now have the option of monthly VAT filing and payment. But do not take advantage of our leniency by using fake transactions in your VAT returns. Our National Task Force – Run After Fake Transactions will audit your business. I will make sure that criminal charges will be pressed against you,” Lumagui said.
House passes CPD law amendments to ease professional license renewals [Rappler, May 15, 2023]
The House in the 19th Congress approved a proposal seeking to amend the Continuing Professional Development (CPD) Act of 2016, a law which critics said made the renewal of professionals’ licenses impractical.
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