What Are the Top Schools in the Philippines in 2024?
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [MARCH 14-21]
- BIR ANNOUNCES THE AVAILABILITY OF TIN INQUIRY THROUGH EMAIL
- BIR ANNOUNCES THE AVAILABILITY OF BIR FORM 1701 IN THE EFPS
- BIR ISSUES A TAX ADVISORY ON THE REGISTRATION & SUBMISSION OF SWORN DECLARATIONS BY ONLINE SELLERS ON OR BEFORE APRIL 15, 2024
- BIR RULINGS ON DISTURBANCE COMPENSATION & RENEWABLE ENERGY
- COURT OF TAX APPEALS CASES
I. TAX & BUSINESS-RELATED NEWS [MARCH 14-21]
1. HMOs incur higher P4.3 billion losses in 2023
2. IT-BPM firms deemed best places to work in Philippines
3. Senate flags 19K ‘ghost students’ of senior high school voucher program
4. Bill banning power distribution utilities from owning power plants filed
5. For $300M, Razon settles row with ex-Solaire manager
6. SEC scores another victory vs erring lending firms
7. Leviste becomes largest shareholder of Roxas and Co
8. Unilever is cutting jobs and splitting off its ice cream unit
9. BIR eyes P325 billion from excise taxes
10. EEI to create holding firm for future ‘potential’ businesses
11. Baguio is richest city outside Metro Manila in 2022: PSA
12. CA orders Antonio Gonzalez’s Mondragon to pay P113 million to Sy-blings’ BDO
13. Marcos signs Philippine Salt Industry Development Act
14. SG-based hotel operator teams up with 56-year-old Malate hotel
15. Korea Tourism Organization-Manila highlight visa-free entry programs, transit tours
16. DoF refines Package 4 of tax reforms
17. SC Voids Contract for Being Grossly Disadvantageous to Seafarer
18. Prime Energy: $69.9-M drilling contract for Malampaya Phase 4 awarded to London-based Noble
19. What Are the Top Schools in the Philippines in 2024?
20. Walang pasok: March 22 declared special non-working day in Cavite
II. BIR ANNOUNCES THE AVAILABILITY OF TIN INQUIRY THROUGH EMAIL
Revenue Memorandum Circular (RMC) No. 37-2024 issued on March 14, 2024, announces the availability of Tax Identification Number (TIN) Inquiry through an electronic mail at tin.inquiry@bir.gov.ph.
III. BIR ANNOUNCES THE AVAILABILITY OF BIR FORM 1701 IN THE EFPS
Revenue Memorandum Circular (RMC) No. 39-2024 dated March 14, 2024, announces the availability of BIR Form No. 1701 in the Electronic Filing and Payment System (eFPS). The form shall be filed on or before April 15 of each year covering income for the preceding taxable year. eFPS filers who are mandated and required to file the said return shall use the eFPS facility effective immediately. For those who already filed their BIR Form 1701 need not refile the return in the eFPS.
IV. BIR ISSUES A TAX ADVISORY ON THE REGISTRATION & SUBMISSION OF SWORN DECLARATIONS BY ONLINE SELLERS ON OR BEFORE APRIL 15, 2024
In a Tax Reminder dated March 6, 2024, the BIR has reminded taxpayers who are engaged in sale of goods and services in electronic marketplaces to register their business and submit their Sworn Declaration to their respective Revenue District Office (RDO) on or before April 15, 2024, following Annex A of Revenue Memorandum Circular (RMC) No. 8-2024. In case of non-submission of the said declaration regardless of the actual total income or gross remittance, the imposition of withholding tax (1% of ½ of the gross remittances) shall automatically be deducted by the e-marketplace operator and Digital Financial Services Providers (DFSP) from the gross remittances of the sellers/merchants. The BIR-received declaration shall be submitted to the e-marketplace operator or DFSP should the gross remittances exceed Php 500,000 at any time during the taxable year.
V. BIR RULINGS ON DISTURBANCE COMPENSATION & RENEWABLE ENERGY
DISTURBANCE COMPENSATION RECEIVED BY ASSIGNEE AS A RESULT OF EXTINGUISHMENT OF TENANCY RELATIONSHIP BECAUSE OF RECLASSIFICATION OF AGRICULTURAL LAND INTO NON-AGRICULTURAL LAND IS EXEMPT FROM CGT & DST
Certain individuals are seeking requests for exemption from the payment of Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) on the Deeds of Assignment executed by them over a portion of land conveyed as Disturbance Compensation under the Republic Act (R.A.) No. 3844, otherwise known as the “Agricultural Land Reform Code,” as amended. In reply, the transfer of real property by way of Disturbance Compensation is exempt from CGT and DST pursuant to R.A. No. 6657, otherwise known as the “Comprehensive Agrarian Reform Law of 1988.” Moreover, R.A. No. 3844 allows Disturbance Compensation to the tenant as a result of the extinguishment of the tenancy relationship by reason of the reclassification or conversion of the agricultural land into non-agricultural land. However, documents submitted failed to prove that the disturbance compensation received by the assignees was a result of the extinguishment of tenancy relationship because of the reclassification or conversion of the agricultural land into residential, commercial, industrial or some other urban purposes. Hence, the transfer of the subject parcel of land in favor of the assignees is subject to CGT and DST. [BIR RULING NO. OT-005-2024, JANUARY 18, 2024]
DELIVERY OF CARBON EMISSION CREDITS ARE EXEMPT FROM TAX UNDER THE RENEWABLE ENERGY LAW
E Co. is requesting confirmation that its assignment to the Japanese Government of its carbon credits in the form of Joint Crediting Mechanism (JCM) Program credits in exchange for cash, constitute a sale of carbon emission credit, the proceeds of which are exempt from any and all taxes pursuant to the Republic Act (R.A.) No. 9513, otherwise known as the “Renewable Energy Act of 2008.” In reply, the fiscal incentives provided under R.A. No. 9513 are also stated in the Revenue Regulations (RR) No. 7-2022. A perusal of the Agreement shows that the elements of a Contract of Sale are present in the case at bar. Given that the delivery of carbon emission credits under the JCM Program to the Japanese Government, for tax purposes, partakes the nature of a sale, as contemplated under R.A. No. 9513 and RR No. 7-2022, the proceeds received by E Co. relating to such sale (or the funding received from the Japanese Government) is exempt from any and all taxes under the existing laws, rules and regulations. [BIR RULING NO. OT-107-2023, DECEMBER 18, 2023]
VI. COURT OF TAX APPEALS CASES
IN THE ABSENCE OF AN APPEALABLE DECISION FROM THE CIR, CTA HAS NO AUTHORITY TO VALIDLY ACQUIRE JURISDICTION OVER THE PETITION FOR REVIEW
Petitioner Bayugan Farmers Millers Multi-Purpose Cooperative filed a Petition for Review as a result of the alleged inaction of the Respondent, Commissioner in Internal Revenue (CIR) on its Appeal/Request for Reconsideration of the Final Decision on Disputed Assessment (FDDA) holding it liable to deficiency tax assessment. The assessment arose from the Respondent’s imposition of tax assessments on the Petitioner’s income from gas pump operation allegedly considered as unrelated activities. The Petitioner claims that the gas pump operation is an integral component of its primary business. As one operating a multi-purpose cooperative involved in activities such as rice and corn milling, trading, agriculture, and industrial production, fuel is an important, if not indispensable, requirement to the main business of milling, trading, and agricultural and industrial production. Likewise, its net surplus from cooperative operations is not profit but rather excess payments from members for borrowed loans. Further, Article 85 of the Republic Act (R.A.) No. 9520, or the Cooperative Code of 2008 does not specify the source of the net surplus, interpreting the non-taxability of surplus to apply to all income, whether from related or unrelated business activities. The argument extends to the claim that its surplus does not constitute realized gain. On the other hand, the Respondent counters that the Income and Value-Added Tax (VAT) assessments have factual and legal bases. The sale of fuel at the gasoline pumping station was not part of their registered activities until February 12, 2015, when the Amended Articles of Cooperation were approved by the Cooperative Development Authority (CDA) Consequently, taxation can be applied to this business line. In ruling, the Court held that it has no jurisdiction over the instant petition. Citing Section 7(a)(1) and (2) of R.A. No. 1125 as amended by R.A. 9282, inaction by the CIR in cases involving disputed assessments, refunds of internal revenue taxes, fees, or other charges, penalties in relation thereto, or other matters arising under the Tax Code or other laws administered by the BIR, where the Tax Code provides a specific period for action, in which case the inaction shall be deemed a denial. However, there is only one (1) “180-day period” of inaction to speak of, which shall be counted from the date of filing of the protest and not from the date of filing of administrative appeal. Section 228 of the 1997 Tax Code, as amended, and Section 3.1.4 of Revenue Regulations (RR) No. 12-1999, do not provide that a fresh 180-day period is granted to the CIR to act on an administrative appeal. Therefore, without a decision from the CIR that can be appealed, this Court lacks jurisdiction over the Petition. The Petitioner’s only option is to wait for the Respondent’s final decision on its administrative appeal and then appeal it to the Court within 30 days of receiving it. Hence, the Petition was DISMISSED for lack of jurisdiction. [BAYUGAN FARMERS MILLERS MULTI-PURPOSE COOPERATIVE VS. COMMISSIONER OF INTERNAL REVENUE & ATTY. NASSER A. TANGGOR-OIC REGIONAL DIRECTOR, REVENUE REGION NO. 17, CTA CASE NO. 9928, MARCH 7, 2024]
FAILURE TO COMPLY WITH THE INVOICING REQUIREMENTS FOR ZERO-RATED SALES PRECLUDES THE ENTITLEMENT TO A REFUND
Petitioner Schaeffler Philippines Inc. filed a Petition for Review seeking a refund of the amount of unutilized input Value-Added Tax (VAT) attributable to its zero-rated sales for the first (1st) quarter of calendar year (CY) 2018. The Petitioner argued that the Respondent Commissioner of Internal Revenue (CIR)’s disallowance of exhibit evidence of Philippine Economic Zone Authority (PEZA) Certifications proving its sales to ecozone entities as qualified zero-rated sales are devoid of any factual or legal basis. It argued that these exhibits sufficiently establish the status of these entities as enterprises duly registered with the PEZA, and sales to these entities are treated as export sales subject to 0% VAT. On the other hand, the Respondent claimed that the Petitioner failed to substantiate that it sold goods to PEZA-registered entities considering that the Court had denied admission in evidence of Exhibits “P-22” to “P-26” representing the PEZA-issued certifications since they are mere photocopies. Additionally, the Petitioner has failed to comply with the requisites before secondary evidence is allowed in lieu of the originals. In ruling, the Court held that all of the Petitioner’s alleged zero-rated sales, evidenced by VAT invoices, do not bear the term “zero-rated sale” written or printed prominently on the face of the VAT invoices. Section 113 (B)(2)(c) of the 1997 Tax Code, as amended, provides that the term “zero-rated sale” shall be written or printed prominently on the invoice or receipt for sales that are subject to 0% VAT. Consequently, the Petition was DENIED. [COMMISSIONER OF INTERNAL REVENUE VS. SCHAEFFLER PHILIPPINES INC., CTA CASE NO. 10358, FEBRUARY 15, 2024]
THE ABSENCE OF THE CIR’S DISCLOSURE OF THE LAWS & FACTS JUSTIFYING THE REJECTION OF THE LETTER OF PROTEST CONSTITUTES A VIOLATION OF DUE PROCESS RIGHTS, RENDERING THE ASSESSMENT VOID
Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review seeking the reversal of the earlier Decision and Resolution declaring that the subject assessment issued against the Respondent Atlas Precision Environment Corporation as void due to its failure to comply with the due process requirements. The Petitioner argued that there was no violation of the Respondent’s due process and that the Special Third Division erred in the cancellation of the assessment. On the other hand, the Respondent claimed that the assessment issued against it was patently arbitrary and capricious when the Petitioner failed to issue a valid Final Assessment Notice (FAN) containing the necessary laws and facts upon which the denial of its letter protest was made. In ruling, Section 228 of the 1997 Tax Code, as amended, and Section 3 of Revenue Regulations (RR) No. 12-99, as amended, both mandate the Petitioner to inform the taxpayer in writing of the law and facts on which the assessment is made, otherwise, the assessment shall be void. Moreover, failure to provide the Respondent with the necessary laws, facts, and explanations of the grounds for rejecting its protest constitutes a violation of the Respondent’s right to due process. Consequently, the Petition was DENIED, and the assailed Decision and Resolution were AFFIRMED. [COMMISSIONER OF INTERNAL REVENUE, VS. ATLAS PRECISION ENVIRONMENT CORPORATION, CTA CASE NO.2686, FEBRUARY 13, 2024]
HMOs incur higher P4.3 billion losses in 2023 [The Philippine Star, March 21, 2024]
The health maintenance organization (HMO) industry suffered a bigger net loss of P4.3 billion in 2023, marking the second straight year of a weak bottomline, as benefits and claims by its members soared.
https://www.philstar.com/business/2024/03/21/2342019/hmos-incur-higher-p43-billion-losses-2023
IT-BPM firms deemed best places to work in Philippines [The Philippine Star, March 21, 2024]
Synchrony Global Services Philippines, a subsidiary company that manages Synchrony’s call center operations and select back office support, once again placed first in Great Place to Work’s list of Best Workplaces in the Philippines in the large category or those with 1,000 or more employees.
Senate flags 19K ‘ghost students’ of senior high school voucher program [GMA News Online, March 20, 2024]
Over 19,000 “ghost students” or undocumented beneficiaries of the voucher program under the Expanded Government Assistance to Students and Teachers in Private Education Act (E-GASTPE) were disclosed at the Senate on Wednesday.
Bill banning power distribution utilities from owning power plants filed [GMA News Online, March 20, 2024]
House Deputy Minority Leader France Castro of ACT Teachers party-list, House Assistant Minority Leader Arlene Brosas of Gabriela party-list and Kabataan party-list made the proposal under House Bill 8079, saying the said prohibition will address a loophole in the 20-year old Electric Power Industry Reform Act which allows such “cross ownership” of power distribution firms that also own power generation companies.
For $300M, Razon settles row with ex-Solaire manager [Philippine Daily Inquirer, March 20, 2024]
After a decade-long legal battle, Bloomberry Resorts Corp. has ended its dispute with casino management firm Global Gaming Philippines LLC (GGAM), a former management firm of Solaire Resorts & Casino, via a $300-million (P16.8-billion) settlement.
https://business.inquirer.net/451051/for-300m-razon-settles-row-with-ex-solaire-manager
SEC scores another victory vs erring lending firms [The Philippine Star, March 20, 2024]
The SEC said it secured the conviction of six officers of Manak Pur Lohara Lending Corp. for falsifying documents in support of the lending company’s registration with the commission.
Leviste becomes largest shareholder of Roxas and Co [The Philippine Star, March 20, 2024]
Solar energy trailblazer Leandro Leviste has acquired shares in listed Roxas and Co. Inc. (RCI), making him its largest individual shareholder with shares equivalent to 7.55 percent of the company.
Unilever is cutting jobs and splitting off its ice cream unit [BBC, March 19, 2024]
Marmite and Dove soap-owner Unilever is to cut about 7,500 jobs worldwide, as part of an extensive three-year cost-saving plan.
https://www.bbc.com/news/business-68595206
BIR eyes P325 billion from excise taxes [The Philippine Star, March 19, 2024]
Excisable products include alcohol, tobacco, petroleum and minerals, among others.
https://www.philstar.com/business/2024/03/19/2341516/bir-eyes-p325-billion-excise-taxes
EEI to create holding firm for future ‘potential’ businesses [Philippine Daily Inquirer, March 19, 2024]
Listed construction company EEI Corp. will soon launch a new holding firm meant to acquire and hold interests in “various potential businesses” as the company looks to explore other ventures.
https://business.inquirer.net/450875/eei-to-create-holding-firm-for-future-potential-businesses
Baguio is richest city outside Metro Manila in 2022: PSA [ABS-CBN News, March 18, 2024]
In the PSA’s Provincial Product Accounts, it was shown that Baguio City had the highest per capita gross domestic product (GDP) among the provinces and highly urbanized cities in the Philippines that year.
CA orders Antonio Gonzalez’s Mondragon to pay P113 million to Sy-blings’ BDO [Bilyonaryo.com, March 18, 2024]
In a February 28, 2024 decision, the CA’s Third Division denied Mondragon’s appeal and said BDO was able to establish Mondragon’s debt and Gonzalez’ obligation arising from the suretyship agreement.
Marcos signs Philippine Salt Industry Development Act [Inquirer.Net, March 17, 2024]
President Ferdinand “Bongbong” R. Marcos Jr. has signed Republic Act No. 11985, or the Philippine Salt Industry Development Act which seeks to provide adequate support to salt farmers to boost and strengthen the country’s salt industry.
SG-based hotel operator teams up with 56-year-old Malate hotel [Philippine Daily Inquirer, March 17, 2024]
Koko Global Hospitality Group (KGH), a hotel operator backed by Singapore-based venture builder REAPRA, has expanded its footprint in the Philippines by clinching a partnership deal to manage the 100-room Tropicana Suites Residences in Malate, Manila.
https://business.inquirer.net/450696/sg-based-hotel-operator-teams-up-with-56-year-old-malate-hotel
Korea Tourism Organization-Manila highlight visa-free entry programs, transit tours [The Philippine Star, March 16, 2024]
The Manila Office of the Korea Tourism Organization (KTO) is promoting programs for tourists and transiting passengers to South Korea, including visa-free entry and free transit tours.
DoF refines Package 4 of tax reforms [The Manila Times, March 15, 2024]
The DoF announced that interest income tax will be standardized at 20 percent in 2024, while royalties will adhere to the current tax code until 2027, before being reduced to 15 percent in 2028.
SC Voids Contract for Being Grossly Disadvantageous to Seafarer [Supreme Court, March 15, 2024]
The Supreme Court has voided a litigation financing agreement between a seafarer and a consultancy firm for being grossly disadvantageous to the seafarer.
https://sc.judiciary.gov.ph/sc-voids-contract-for-being-grossly-disadvantageous-to-seafarer/
Prime Energy: $69.9-M drilling contract for Malampaya Phase 4 awarded to London-based Noble [GMA News Online, March 15, 2024]
In a statement, Prime Energy said Noble secured the $69.9-million contract for the use of the London-based contractor’s “Noble Viking” to drill two deepwater development wells in the Camago and Malampaya East fields, as well as a third exploration well, Bagong Pagasa, approximately 15 kilometers north of Malampaya.
What Are the Top Schools in the Philippines in 2024? [Esquire Philippines, March 14, 2024]
The website analyzed data from 14,131 universities in 183 countries, encompassing 44,909,300 scientific publications and 1,237,541,960 citations. For this list, the organization took on data from 500,000 citations from more or less 58,000 academic papers published by 229 Philippines universities. Other factors that affected the standings were non-academic activities and the strength of 1,093 alumni from each school.
Walang pasok: March 22 declared special non-working day in Cavite [Manila Bulletin, March 14, 2024]
Proclamation No. 492, uploaded in the Official Gazette on March 12, stated that the holiday is meant to give Caviteños an opportunity to participate in activities to honor the first President of the Philippine Republic.
https://mb.com.ph/2024/3/14/walang-pasok-march-22-declared-special-non-working-day-in-cavite
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