Marcos signs ‘ease of paying taxes’ law
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [JANUARY 3-8]
- BIR REDEFINES THE AREAS OF JURISDICTION OF RDO NO. 50-SOUTH MAKATI & RDO NO. 44-TAGUIG CITY-PATEROS
- SUPREME COURT CASE ON PROFITEERING
- CTA CASES ON LGU TAXING JURISDICTION & BIR APPLICATION OF 10-YEAR PRESCRIPTIVE PERIOD TO ASSESS
- TAX & BUSINESS-RELATED NEWS [JANUARY 3-8]
- Consunji dreams of Japanese hot spring, villas in 40-ha Laguna estate
- HMOs to face fines for unsound business acts
- Australia sets new rules for dairy exporters
- Marcos signs ‘ease of paying taxes’ law
- Netizens react to CPA lawyer’s Starbucks experience: From drama to termination
- Labor group backs hike in Pag-IBIG contributions
- Northern Mindanao workers get P33 wage hike
- SEC files complaint vs Eton Trading
- House of Investments sells EEI stake
- Chemrez welcomes DOE decision on biodiesel blend
- Mixed reactions as Malaysia’s shoppers pay new sales tax on overseas goods bought online
- Marikina Court enjoins TAPE Inc., GMA from using ‘Eat Bulaga’ trademark
- Over P1 trillion projects get tax perks under CREATE
- BSP to amend policy on return of ‘bounced’ checks
- 630 out of 1,637 LGUS Towns, cities push automation for ease of doing business
- Yanson Group reiterates commitment to reliable public transport
- Power reserves may soon be purchased on the spot
- Manila Water terminates Pangasinan bulk water project
- Yuchengco buys Tarlac property to prepare for expansion
- Supermarket wars: Robina Gokongwei-Pe channels her inner Sun Tzu to ward off DALI’s disruption, hooks up with emerging discounter O!Save
- GSIS eyes new ‘game changer’ housing program for government employees
- CTA orders Pagcor to pay P117-M deficiency income tax
- Late business taxpayers to incur 25% surcharge
- Top 10 visitors to the Philippines by nationality
2. BIR REDEFINES THE AREAS OF JURISDICTION OF RDO NO. 50-SOUTH MAKATI & RDO NO. 44-TAGUIG CITY-PATEROS
Revenue Administrative Order (RAO) No. 1-2024 issued on January 5, 2024, redefines the areas of jurisdiction of Revenue District Office (RDO) No. 50-South Makati City and RDO No. 44-Taguig City in view of the December 1, 2021 Supreme Court (SC) decision on the disputed territorial jurisdiction between Taguig City and Makati City.
3. SUPREME COURT CASE ON PROFITEERING
CONSTITUTIONALITY OF PROFITEERING DEFINITION UNDER THE PRICE ACT
Petitioner Universal Corporation filed a Petition for Review on Certiorari assailing the Regional Trial Court (RTC)’s earlier Decision, which denied the Petition for Declaratory Relief for failing to show the invalidity of the laws and executive issuances. The Petitioner was accused of selling flour at a price deemed too high, and the Public Respondent Department of Trade and Industry (DTI) issued a Preliminary Order to reduce the selling price. The Petitioner argued that the definition of profiteering under the Price Act was void for vagueness, as it lacked standards and guidelines to determine a commodity’s “true worth” or a price grossly in excess of it. Likewise, penalizing profiteering without sufficiently defining what constitutes it violated one’s right to be informed of the nature and cause of an accusation against them. In ruling, the Supreme Court (SC) ruled that the definition of profiteering under the Price Act is constitutional. It held that the law provides a standard for determining profiteering, and the lack of mathematical exactitude in the definition does not render it vague. The purpose of the law is to protect consumers from unscrupulous business practices and that the definition of profiteering is sufficient to guide business conduct. Consequently, the Petition was DENIED, and the constitutionality of the Price Act was UPHELD. [UNIVERSAL ROBINA CORPORATION VS. DTI, THE DTI SECRETARY & THE DIRECTOR FOR DTI’S BUREAU OF TRADE REGULATIONS & CONSUMER PROTECTION, G.R. NO. 203353, FEBRUARY 14, 2023, UPLOADED NOVEMBER 17, 2023]
4. CTA CASES ON LGU TAXING JURISDICTION & BIR APPLICATION OF 10-YEAR PRESCRIPTIVE PERIOD TO ASSESS
[BY WAY OF A LIMITATION, A PROVINCE CANNOT IMPOSE A TAX ON BUSINESS ENJOYING A FRANCHISE OPERATING WITHIN THE TERRITORIAL JURISDICTION OF ANY CITY LOCATED WITHIN THE PROVINCE] [SINCE THE SITUS OF TAXATION IS THE PLACE WHERE THE PRIVILEGE IS EXERCISED, THE CITY IN WHICH THE FRANCHISE HOLDER HAS ITS PRINCIPAL OFFICE & EXERCISES THE SAID PRIVILEGE HAS THE POWER TO IMPOSE FRANCHISE TAX ON THE LATTER’S GROSS RECEIPTS, EVEN WHEN THE SOURCE THEREOF IS BEYOND OR OUTSIDE THE TERRITORIAL LIMITS OF THE SAID CITY]
Petitioner Local Government Unit (LGU) of Camarines Sur filed a Petition for Review assailing the Regional Trial Court (RTC)’s earlier Decision declaring the Respondent LGU-Naga City as the sole LGU entitled to the Respondent Camarines Sur II Electric Cooperative, Inc. (CASURECO II)’s local Franchise Tax. The Petitioner argued that it is the rightful LGU entitled to the Franchise Tax due from the Respondent CASURECO II over the nine (9) municipalities within its jurisdiction. On the other hand, the Respondents countered that the Respondent LGU-Naga City has the sole authority to assess and collect the tax based on gross receipts earned within the entire coverage area of the Respondent CASURECO II. In ruling, the Court emphasizes the authority of LGUs to impose and collect taxes, fees, and charges, subject to the guidelines and limitations provided by Congress. It interprets and applies the provisions of the Local Government Code (LGC), particularly Sections 137 and 151, in light of the City of Iriga case. The Court concluded that the Respondent LGU-Naga City where the Respondent CASURECO II’s principal office is located, has the authority to assess and collect the Franchise Tax based on gross receipts earned within the entire coverage area of the Respondent CASURECO II, including the nine (9) municipalities, despite being within the territorial jurisdiction of the Petitioner. Consequently, the Petition was DENIED. [THE LOCAL GOVERNMENT UNIT OF CAMARINES SUR VS. CAMARINES SUR II ELECTRIC COOPERATIVE, INC. (CASURECO II) & THE LOCAL GOVERNMENT UNIT OF NAGA CITY, CTA AC NO. 264, DECEMBER 19, 2023]
[ALLEGATIONS OF FALSITY OR FRAUD IN THE FILING OF TAX RETURNS MUST BE PROVEN TO EXIST BY CLEAR & CONVINCING EVIDENCE & CANNOT BE JUSTIFIED BY MERE SPECULATION] [THE FRAUD OR FALSITY CONTEMPLATED BY LAW IS ACTUAL & NOT CONSTRUCTIVE IN NATURE] [IN ORDER TO STAND THE TEST OF JUDICIAL SCRUTINY, THE ASSESSMENT MUST BE BASED ON ACTUAL FACTS] [THE PRESUMPTION OF THE CORRECTNESS OF AN ASSESSMENT, BEING A MERE PRESUMPTION, CANNOT BE MADE TO REST ON ANOTHER PRESUMPTION]
Petitioner Ricky Tan Tangan filed a Petition for Review seeking the cancellation of the assessments and the Warrant of Distraint and Levy (WDL) issued by the Respondent Commissioner of Internal Revenue (CIR). The Petitioner argued that the subject assessments are void since there are based on unverified third-party information (TPI) and issued beyond the three (3)-year ordinary prescriptive period for assessment. On the other hand, the Respondent countered that there was no denial of due process as the Petitioner himself admitted to receiving both the Final Assessment Notice (FAN) and the subsequent WDL issued. Likewise, the ten (10)-year prescriptive period should apply since the Petitioner’s Income Tax Returns (ITR) for the Calendar Year 2012 was a fraudulent return on account of his failure to declare sales or receipts in an amount exceeding 30% of that declared per returns. In ruling, the Respondent failed to convince the Court that the Petitioner indeed filed a fraudulent tax return; thus, the extraordinary prescriptive period of ten (10) years cannot be applied. Nevertheless, even assuming, for the sake of argument, that the period to assess the Petitioner was extended beyond the ordinary three (3)-year prescriptive period, the assessments are still void for being presumptions since they are based on unverified data. In assessment proceedings, if there arises TPI discrepancies, the taxpayer is required to submit schedules and reconciliations to substantiate his or her claims with a Sworn Statement to attest the veracity and authenticity of the schedules and documents presented or submitted. On the other hand, the BIR is mandated to obtain Sworn Statements from TPI sources to attest the veracity of the data provided, which the BIR failed to do. Hence, the Petition was GRANTED, and the assessments were declared VOID. Consequently, the WDL was CANCELLED. [RICKY TAN TANGAN VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10150, OCTOBER 19, 2023]
Consunji dreams of Japanese hot spring, villas in 40-ha Laguna estate [Inquirer Mobile, January 8, 2024]
The power, mining, infrastructure and construction giant is currently in the planning stage for the Los Baños, Laguna project, which will rise near a forested mountainside overlooking Laguna de Bay, according to DMCI chair and CEO Isidro Consunji.
HMOs to face fines for unsound business acts [The Philippine Star, January 8, 2024]
Specifically, HMOs can be penalized for misrepresenting to clients and members the true nature or terms and conditions of a certain product, particularly on benefits, limitations, affiliated hospitals, covered illnesses, and membership fees, among others.
https://www.philstar.com/business/2024/01/08/2324130/hmos-face-fines-unsound-business-acts
Australia sets new rules for dairy exporters [Philippine Daily Inquirer, January 8, 2024]
In an advisory, the DTI said Australia in November last year revised its import regulations for dairy. Products that have less than 10 percent dairy content no longer need approval from the Australian Department of Agriculture, Fisheries, and Forestry.
https://business.inquirer.net/439977/australia-sets-new-rules-for-dairy-exporters
Marcos signs ‘ease of paying taxes’ law [The Manila Times, January 7, 2024]
Enacted on January 5, Republic Act 11976, also known as “Ease of Paying Taxes Act,” is expected to significantly contribute in the achievement of the government’s 8-Point Socioeconomic Agenda through improved revenue collection.
https://www.manilatimes.net/2024/01/07/news/marcos-signs-ease-of-paying-taxes-law/1927100
Netizens react to CPA lawyer’s Starbucks experience: From drama to termination [Bilyonaryo, January 6, 2024]
On Christmas day, a Starbucks branch at Okada Manila became the center of a controversy when a CPA lawyer shared his encounter with a discourteous cleaner at the establishment.
Labor group backs hike in Pag-IBIG contributions [The Philippine Star, January 6, 2024]
The Trade Union Congress of the Philippines (TUCP) said in a letter to Pag-IBIG that it supports the plan to increase the mandatory monthly savings rate of members starting this month.
https://www.philstar.com/business/2024/01/06/2323687/labor-group-backs-hike-pag-ibig-contributions
Northern Mindanao workers get P33 wage hike [Philippine Daily Inquirer, January 6, 2024]
Through Wage Order No. RX-22, the Regional Tripartite Wages and Productivity Board (RTWPB) mandated a wage hike of P23 starting Jan. 11, and another P10 on July 1.If fully implemented by July 1, workers in the agriculture sector in major localities will earn P426 a day, and P411 in other areas. Those in the nonagriculture sector in major localities will get P438 a day, and P423 in other areas.
https://newsinfo.inquirer.net/1884596/n-mindanao-workers-get-p33-wage-hike
SEC files complaint vs Eton Trading [The Philippine Star, January 6, 2024]
The Securities and Exchange Commission (SEC) has filed a criminal complaint against Eton Phil Non-Specialized Wholesale Trading, which offers the public a monthly profit of up to 50 percent in what may possibly be another Ponzi scam.
https://www.philstar.com/business/2024/01/06/2323680/sec-files-complaint-vs-eton-trading
House of Investments sells EEI stake [The Manila Times, January 6, 2024]
INVESTMENT holding and management firm House of Investments on Friday said it had unloaded a 4.5-percent stake in subsidiary EEI Corp. to Shenton Resources Pte. Ltd., a company operating under Singaporean laws.
Chemrez welcomes DOE decision on biodiesel blend [The Philippine Star, January 6 2024]
Chemrez is the country’s largest biodiesel manufacturer and is the country’s earliest advocate of harnessing the power of coconut oil to make higher value added and sustainable chemicals, collectively called oleochemicals.
https://www.philstar.com/business/2024/01/06/2323685/chemrez-welcomes-doe-decision-biodiesel-blend
Mixed reactions as Malaysia’s shoppers pay new sales tax on overseas goods bought online [The Straits Times, January 5, 2024]
KUALA LUMPUR – Malaysia’s new sales tax on items bought online from overseas merchants has drawn mixed reactions, with local sellers saying they welcomed the fairer competition while others raised concerns that the higher prices would burden poorer Malaysians.
Marikina Court enjoins TAPE Inc., GMA from using ‘Eat Bulaga’ trademark [GMA News Online, January 5, 2024]
According to a press release from the camp of Tito Sotto, Vic Sotto, and Joey De Leon, the RTC found in a decision dated December 22, 2023 that De Leon created the trademark “Eat Bulaga,” having found that TAPE failed to categorically deny De Leon’s claim that he was the one who formulated it.
Over P1 trillion projects get tax perks under CREATE [The Philippine Star, January 5, 2024]
Broken down, the bulk or 80 percent of the investment capital worth P817 billion was approved by the Cabinet-level Fiscal Incentives Review Board (FIRB).
BSP to amend policy on return of ‘bounced’ checks [GMA News Online, January 5, 2024]
With this, the central bank said it is revising the current policy to allow banks to return high-value, not sufficiently funded (NSF), and defective checks “as early as the day these are deposited.”
Palace declares special holidays in provinces [The Philippine Star, January 4, 2024]
Malacañang has declared special holidays in various parts of the country to celebrate local events and festivals, under proclamations signed by Executive Secretary Lucas Bersamin by authority of President Marcos.
https://www.philstar.com/nation/2024/01/04/2323243/palace-declares-special-holidays-provinces
630 out of 1,637 LGUS Towns, cities push automation for ease of doing business [Inquirer Mobile, January 4, 2024]
Nineteen local government units (LGUs) across the country, including several major cities, have been confirmed to have established their respective automated, electronic business one-stop shops (eBoss), the Anti-red Tape Authority (Arta) said on Wednesday.
Yanson Group reiterates commitment to reliable public transport [The Manila Times, January 4, 2024]
AMID a challenging year, the Yanson Group of Bus Companies (YGBC) remained committed to providing Filipinos with reliable public transportation, said the newly reelected chairman and president of Vallacar Transit Inc. (VTI), Leo Rey Yanson, during VTI’s recent stockholders’ meeting.
Power reserves may soon be purchased on the spot [Inquirer Mobile, January 4, 2024]
The Independent Electricity Market Operator of the Philippines (Iemop) has begun the integration of the power reserve market into the Wholesale Electricity Spot Market (WESM) to ensure stable supply for households even when demand spikes.Iemop on Wednesday said the pilot stage was being done in preparation for full commercial operations on Jan. 26.
Manila Water terminates Pangasinan bulk water project [The Philippine Star, January 4, 2024]
In a disclosure to the Philippine Stock Exchange yesterday, Manila Water said that the CA was deemed terminated “due to non-fulfillment of conditions precedent by PGP.”
Yuchengco buys Tarlac property to prepare for expansion [Inquirer Mobile, January 4, 2024]
The listed holding firm said its subsidiary, real estate developer Tarlac Terra Ventures Inc., purchased a 184-hectare (ha) property at Central Techno Park in Luisita Industrial Park.
Supermarket wars: Robina Gokongwei-Pe channels her inner Sun Tzu to ward off DALI’s disruption, hooks up with emerging discounter O!Save [Bilyonaryo, January 4, 2024]
While DALI focused on ramping up in Metro Manila and the south, O!SAVE aimed for expansion north of Manila, capitalizing on DALI’s momentum.
GSIS eyes new ‘game changer’ housing program for government employees [ABS-CBN News, January 3, 2024]
“We are putting together a housing program for government employees, and this is something that will be game changer ‘cause there’s no downpayment that we’re going to ask from them,” he said.
https://news.abs-cbn.com/video/business/01/03/24/gsis-eyes-no-downpayment-housing-for-govt-employees
CTA orders Pagcor to pay P117-M deficiency income tax [Philippine News Agency, January 3, 2024]
The tax court, in its 22-page ruling dated Dec. 22 and written by Associate Justice Lanee S. Cui-David, also ordered Pagcor to pay delinquency interest pursuant to a 2017 Supreme Court ruling which remanded the case back to the CTA for determination of the final amount to be paid by the firm.
https://www.pna.gov.ph/articles/1216286
Late business taxpayers to incur 25% surcharge [Cebu Daily News, January 3, 2024]
A 25 percent surcharge on the total amount due is applied as one of the penalties if business owners in Cebu City pay beyond the deadline, said City Treasurer Mare Vae Reyes.
https://cebudailynews.inquirer.net/548951/late-business-taxpayers-to-incur-25-surcharge
Top 10 visitors to the Philippines by nationality [Gulf News, January 3, 2024]
Top visitors to the Philippines by nationality January 1 to Dec. 12, 2023
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