BIR rolls out EOPT taxpayer’s classification in ORUS
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [MAY 15-20]
- BIR ANNOUNCES THE AVAILABILITY OF THE TAXPAYER’S CLASSIFICATION INQUIRY FUNCTIONALITY IN THE ORUS
- DOF OPINION ON ITS JURISDICTION ON BIR DISPUTED ASSESSMENT
- DOJ LEGAL OPINION ON DUAL CITIZENSHIP CITING PHILIPPINE-SPAIN TREATY
- CTA CASE ON PRESCRIPTION OF TAX CRIME
I. TAX & BUSINESS-RELATED NEWS [MAY 15-20]
1. Palace declares special holidays
2. Luzon educators raise concern over entry of foreign schools
3. DOF moves to plug excise tax leakages
4. DOE wants power plants to have enough time to rest
5. MVP, Leviste in P5 billion bailout of Roxas firm
6. Megawide erases losses amid flurry of projects
7. SMC eyes building express hotel near NAIA Terminal 2
8. BSP wants stricter policies vs erring bank personnel
9. Medical professionals ‘not entirely prohibited’ from selling medical products, says FDA
10. Pagcor issues 40 licenses to rebranded POGOs
11. Red-tagged NGO cries foul after bank accounts frozen
12. IPOPHL issues blocking request vs piracy site YTS
13. BoC standardizes Customs fees, charges
14. House OKs Condominium Act
15. Marcos orders pre-border invoicing to speed up inspection of imported goods
16. Government to relocate 4 provincial airports
17. Aklan power rate hike seen to hurt Boracay
18. EcoWonder Park breaks ground in Calamba, Laguna
19. Tax appeals court clears ex-CJ Sereno
20. LWUA takes over CDO water district, to install interim board
21. DTI urges Qatar Cool to do business in PH
22. Singapore firm picks Apeco for a 25-MW solar farm
23. Tariff exemptions granted to e-bikes, other e-vehicles
24. Three Japanese carmakers eye joint software development
25. DOF proposes sale of SCTEX shares to SSS, GSIS
26. South Korean shipbuilder to lease part of Philippine Subic Bay shipyard
27. DLSU Offers Full PhD Scholarship With Monthly Allowance
28. Fashion brand Esprit files for bankruptcy for its European business
II. BIR ANNOUNCES THE AVAILABILITY OF THE TAXPAYER’S CLASSIFICATION INQUIRY
FUNCTIONALITY IN THE ORUS
Revenue Memorandum Circular (RMC) No. 62-2024 issued on May 16, 2024, announces the availability of the taxpayer’s classification inquiry functionality in the Online Registration Update System (ORUS).
It may be recalled that under the Ease of Paying Taxes Law as implemented by Revenue Regulations (RR) 8-2024 and 6-2024, there will now be the classification of taxpayers and the imposition of reduced interest and penalty rates for micro and small taxpayers. Specifically, for classification purposes, new registrants shall initially be classified based on its declaration in the Registration Forms starting from the year they registered and shall remain as such unless reclassified while existing taxpayers shall be notified by the BIR of their classification or reclassification.
Taxpayers registered in 2022 and prior years shall be classified based on gross sales for the taxable year 2022. For taxpayers registered in 2022 and prior years but without any submitted information on their gross sales for the taxable year 2022, and taxpayers registered in 2023 or in 2024 before the effectivity of the Regulations (i.e., April 27, 2024), shall initially be classified as MICRO, except VAT-registered taxpayers, who shall be classified as SMALL.
III. DOF OPINION ON ITS JURISDICTION ON BIR DISPUTED ASSESSMENT
DOF HAS NO JURISDICTION ON DISPUTED ASSESSMENT
B Village Homeowners Association (“B” Homeowners) is requesting the Department of Finance to reverse and set aside the Decision of the Commissioner of Internal Revenue (CIR) and to recall the Warrant of Distraint and/or Levy (WDL) and Garnishment (WOG) issued to them. In reply, the DOF dismissed the request for lack of merit and jurisdiction over the subject matter. Citing Section 4 of the 1997 Tax Code, as amended, on the power of the Commissioner to interpret tax laws and to decide tax cases, the first (1st) paragraph of the law gives authority to the Secretary of Finance the power to review the CIR’s interpretation of the Tax Code and other tax laws, while the second (2nd) paragraph clearly provides that the disputed assessments, among others, are subject to the exclusive appellate jurisdiction of the Court of Tax Appeals (CTA). Since the subject Appeal involves a final decision of the CIR on a disputed assessment, the DOF lacks jurisdiction to take cognizance thereof and thus, cannot rule on the merits of the case as the same falls under the exclusive appellate jurisdiction of the CTA. Under Republic Act (R.A.) No. 9282, which expands the jurisdiction of the CTA, the CTA shall exercise exclusive appellate jurisdiction to review, on appeal, decisions of 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. The reliance of B Homeowners on the DOF ruling in favor of the Dasmarinas Village Association Inc. (DVAI) was misplaced. The DOF took cognizance of DVAI’s appeal (BIR Ruling No. OT-206-2021) as it was within the power of review of the DOF under Section 4 of the Tax Code. Such authority is limited to the interpretation of the provisions of the Tax Code and other tax laws and does not extend to decisions of the CIR rendered in assessment disputes as in this case. [DEPARTMENT OF FINANCE OPINION NO. 001.2024, MAY 2, 2024]
IV. DOJ LEGAL OPINION ON DUAL CITIZENSHIP CITING PHILIPPINE-SPAIN TREATY
FILIPINO CITIZEN DOES NOT LOSE HIS PHILIPPINE CITIZENSHIP UPON ACQUISITION OF THE SPANISH CITIZENSHIP PROVIDED THAT THE SAME IS EMBODIED IN A TREATY BETWEEN THE PHILIPPINES & SPAIN
The Department of Foreign Affairs (DFA) is seeking an opinion on the draft Agreement on Dual Nationality (“The Agreement”) between the Philippines and Spain. The main objective of the proposed Agreement is to establish a more accessible and efficient procedure by streamlining the process for individuals from both countries to retain citizenship of the other. Under the Agreement, natural-born Filipinos would be considered by the Philippine government as not having lost their Philippine citizenship and, therefore, not required to apply for Retention/Reacquisition of Philippine citizenship under Republic Act (R.A.) 9225, or the Citizenship Retention and Re-acquisition Act of 2003, upon acquisition of Spanish citizenship naturalization or by virtue of marriage to a Spanish citizen. In reply, a natural-born Filipino citizen does not lose or forfeit his Philippine citizenship, as long as: (1) the citizenship acquired is one of the Iberian and any friendly democratic Ibero-American countries or from the United Kingdom; (2) the law of said country grants the same privilege to its citizens; and (3) there is a treaty between the Philippines and the foreign country from which citizenship is acquired. Spain is one of such Iberian country, and its law expressly recognizes that Spaniards de origen who acquire Philippine citizenship will not lose their Spanish nationality. Further, the second paragraph of Article 24(2) of the Spanish Civil Code provides that “acquisition of the nationality of Latin American countries, Andorra, the Philippines, Equatorial Guinea, or Portugal shall not be sufficient to cause the loss of Spanish nationality by birth. An issue, however, is the third element for the non-forfeiture of Philippine citizenship is wanting, which is the treaty between the Philippines and Spain, which makes the provision not yet fully operational. The only way in which a Filipino would retain his citizenship, even if naturalized as a Spanish citizen is, by virtue of R.A. No. 9225, which allows natural-born Filipino citizens, who lost their Philippine citizenship through naturalization in a foreign country, to expeditiously reacquire/retain Philippine citizenship by taking of an oath of allegiance to the Republic of the Philippines. The Supreme Court held that R.A. 9225 amends (Commonwealth Act (CA) 63 by doing away with the provision in the old law which takes away Philippine citizenship from natural-born Filipinos who become naturalized citizens of other countries and allowing dual citizenship and provides for the procedure of re-acquiring and retaining Philippine citizenship. The DOJ, however, is still viewing this ruling as an exception. The DOJ is of the opinion that Section 1 of CA 63 remains and can exist in harmony the ruling of the Supreme Court, the ruling only provides that naturalization in another country is no longer recognized as a manner which Philippine citizenship is lost, as the latter could be retained/reacquired, pursuant to R.A. No. 9225. [DEPARTMENT OF JUSTICE LEGAL OPINION NO. 19, SERIES OF 2024, APRIL 30, 2024]
V. CTA CASE ON PRESCRIPTION OF TAX CRIME
CRIMINAL CASES ARE BASICALLY IMPRESCRIPTIBLE. HOWEVER, VIOLATIONS SHALL NEVERTHELESS PRESCRIBE IF MORE THAN FIVE (5) YEARS HAVE LAPSED FROM THE TIME OF THE COMMISSION OF THE OFFSENSE, IF KNOWN, UP TO THE DATE OF FILING OF THE INFORMATION BEFORE THE COURT
Petitioner People of the Philippines filed a Petition for Review assailing the earlier Resolutions of the CTA 1st Division dismissing the case instituted against the Respondents Star Asset Management NPL, Inc. Mark S. Frondoso and Joseph Ryan R. Sycip. The case arose from the alleged willful failure to pay tax under Sections 253, 255, and 256 of the 1997 Tax Code, as amended. To counter, the Respondents argued that the Petition should be dismissed outright as prescription in filing the Information has already set in. Accordingly, the five-year prescriptive period provided under Section 281 of the 1997 Tax Code, as amended, has already set in on February 13, 2022. Thus, the Information filed on December 6, 2022 was already late. In ruling, the Court held that the offense charged had already prescribed when the Information was filed citing Section 281 of the 1997 Tax Code, as amended, which provides that all violations of any provision of the Code shall prescribe after five (5) years. Prescription shall begin to run from the day of the commission of the violation of the law, and if the same be not known at the time, from the discovery thereof and the institution of judicial proceedings for its investigation and punishment. The foregoing provision presents two (2) modes for the commencement of the period of prescription: (1) from the day of the commission of the violation of the law; or (2) when the day of the commission is unknown, from the discovery of the commission and the institution of judicial proceedings for its investigation and punishment. Citing the case of Lim and Revenue Memorandum Circular (RMC) No. 101-90, Petitioner had five (5) years counted from February 13, 2017, or until February 13, 2022, to file the Information in Court. The Information dated March 9, 2022, was filed with this Court only on December 6, 2022. Consequently, the offense charged had already prescribed when the Information was filed, thus, the Petition was DISMISSED on the ground of prescription. [PEOPLE OF THE PHILIPPINES VS. STAR ASSET MANAGEMENT NPL, INC., MARK S. FRONDO & JOSEPH RYAN R. SYCIP, CTA EN BANC CRIMINAL CASE 129, APRIL 22, 2024]
Palace declares special holidays [The Philippine Star, May 20, 2024]
The declaration of special holidays in the cities of Malabon and Escalante were specified in Proclamations 548 and
549, both signed by Executive Secretary Lucas Bersamin on May 15. Meanwhile, the Palace also declared June 6 a
special non-working day in Bamban, Tarlac for the celebration of Bamban Day
Source: https://www.philstar.com/nation/2024/05/20/2356397/palace-declares-special-holidays
Luzon educators raise concern over entry of foreign schools [Philippine Daily Inquirer, May 20, 2024]
Luzon educators expressed reservations about easing constitutional restrictions on foreign investments in Filipino education because of the specter of small and medium-sized schools being displaced by elite schools from abroad.
Source: https://newsinfo.inquirer.net/1942247/luzon-educators-raise-concern-over-entry-of-foreign-schools
DOF moves to plug excise tax leakages [The Philippine Star, May 20, 2024]
During the Economic Journalists Association of the Philippines-San Miguel Corp. Business Journalism Seminar here, Finance Undersecretary and chief economist Domini Velasquez said the government is zeroing in on the leakages in terms of excise taxes especially on tobacco and alcohol products.
Source: https://www.philstar.com/business/2024/05/20/2356354/dof-moves-plug-excise-tax-leakages
DOE wants power plants to have enough time to rest [Philippine Daily Inquirer, May 20, 2024]
Resolution No. 10, which the Energy Regulatory Commission (ERC) issued in 2020, prescribed the allowable number of outage days depending on the type of power plant.
Source: https://business.inquirer.net/459609/doe-wants-power-plants-to-have-enough-time-to-rest
MVP, Leviste in P5 billion bailout of Roxas firm [The Philippine Star, May 20, 2024]
Leviste said Countryside’s investment would help RHI service debt to avoid bankruptcy, increase tax revenues of the municipality of Nasugbu and create more and better jobs for the benefit of local farmers and former sugar industry workers.
Source: https://www.philstar.com/business/2024/05/20/2356369/mvp-leviste-p5-billion-bailout-roxas-firm
Megawide erases losses amid flurry of projects [Philippine Daily Inquirer, May 20, 2024]
Megawide Construction Corp. posted a rebound in the first quarter as construction activities, such as the solar projects of sister company Citicore Power Corp., picked up.
Source: https://business.inquirer.net/459643/megawide-erases-losses-amid-flurry-of-projects
SMC eyes building express hotel near NAIA Terminal 2 [The Philippine Star, May 20, 2024]
He said that the north wing of Terminal 2 will be extended towards the Philippine Village Hotel and Nayong Pilipino area.
BSP wants stricter policies vs erring bank personnel [The Philippine Star, May 20, 2024]
The Bangko Sentral ng Pilipinas (BSP) is looking to require its supervised financial institutions to have a policy in determining the process and criteria on when to file legal cases against erring personnel, including dismissed directors, officers and employees.
Medical professionals ‘not entirely prohibited’ from selling medical products, says FDA [Manila Bulletin, May 20, 2024]
The Food and Drug Administration (FDA) on Monday, May 20 clarified that medical professionals selling medical products are “not entirely prohibited,” but they need to be licensed by the agency.
Pagcor issues 40 licenses to rebranded POGOs [The Philippine Star, May 20, 2024]
State gaming regulator and operator Philippine Amusement and Gaming Corp. (PAGCOR) has issued a total of 40 licenses to so-called offshore gaming operators – previously referred to as Philippine offshore gaming operators or POGOs – which it has now termed as internet gaming licensees (IGL).
Source: https://newsinfo.inquirer.net/1942097/red-tagged-ngo-cries-foul-after-bank-accounts-frozen
Red-tagged NGO cries foul after bank accounts frozen [Philippine Daily Inquirer, May 19, 2024]
Jazmin Jerusalem, executive director of the Leyte Center for Development (LCDe) based in Palo town, Leyte, said the NGO would contest the sanctions imposed by the AMLC, which stemmed from the military’s accusation linking the group to the communist insurgency.
IPOPHL issues blocking request vs piracy site YTS [GMA News Online, May 19, 2024]
The IP Rights Enforcement Office (IEO) of IPOPHL found that these 11 sites engaged in piracy or copyright infringement, which violates Section 216 of the Intellectual Property Code of the Philippines and the Rules on Voluntary Administrative Site Blocking.
BoC standardizes Customs fees, charges [Manila Bulletin, May 17, 2024]
Under Customs Administrative Order (CAO) No. 02-2024, all stakeholders, including shipping lines, airlines, importers, and customs brokers, will now be subject to standardized service fees, dues, and charges.
Source: https://mb.com.ph/2024/5/17/boc-set-to-enforces-standardized-customs-fees-charges#google_vignette
House OKs Condominium Act [The Philippine Star, May 19, 2024]
As part of its key provisions, it reduces the voting requirement for the dissolution of a condominium corporation from 70 percent to a simple majority for projects that have been condemned or expropriated or projects that are no longer viable.
Source: https://www.philstar.com/headlines/2024/05/19/2356170/house-oks-condominium-act
Marcos orders pre-border invoicing to speed up inspection of imported goods [Inquirer.Net, May 19, 2024]
These are phase one for agricultural products; phase two for non-agricultural goods with health and safety issues; and phase three for other goods with misdeclaration to avoid duties and taxes.
Government to relocate 4 provincial airports [The Philippine Star, May 19, 2024]
Transportation Secretary Jaime Bautista confirmed that the airports in Dumaguete, Masbate, Siargao and Zamboanga would be relocated.
Source: https://qa.philstar.com/nation/2024/05/19/2356231/government-relocate-4-provincial-airports
Aklan power rate hike seen to hurt Boracay [Philippine Daily Inquirer, May 18, 2024]
The Aklan Electric Cooperative (Akelco) announced plans to raise its rates by P5 per kilowatt hour (kWh) in the province, including Boracay Island, in May, just a month after the power cooperative implemented an increase of P1.49/kWh.
Source: https://newsinfo.inquirer.net/1941781/aklan-power-rate-hike-seen-to-hurt-boracay
EcoWonder Park breaks ground in Calamba, Laguna [Philippine Graphics, May 18, 2024]
An interactive farm by The Holy Carabao School where visitors can learn about agriculture through guided tours and fun activities . . .a Sky Walk with 17-meter-high ropes designed by Kristallturm. . . Calle Bistro with its delicious food and unforgettable dining experiences.
Source: https://philippinesgraphic.com.ph/2024/05/18/ecowonder-park-breaks-ground-in-calamba-laguna/
Tax appeals court clears ex-CJ Sereno [Manila Standard, May 18, 2024]
The CTA said that while the BIR’s review of Sereno’s book of tax records was valid and necessary, the Formal Letter of Demand (FLD) and Final Assessment Notice (FAN), which inform the taxpayer of tax deficiencies, were made “void” because they stand in violation of the former Chief Justice’s right to due process.
Source: https://manilastandard.net/news/314448232/tax-appeals-court-clears-ex-cj-sereno.html
LWUA takes over CDO water district, to install interim board [Philippine News Agency, May 17, 2024]
Pangilinan owns the majority share of the Cagayan de Oro Bulk Water Inc. (COBI), a subsidiary of Metro Pacific Water Investments Corp. (Metro Pac), which cut off the city’s water supply by 40 percent due to an alleged unpaid PHP479 million balance by the city government.
Source: https://www.pna.gov.ph/articles/1224997
DTI urges Qatar Cool to do business in PH [Manila Bulletin, May 17, 2024]
DTI Secretary Alfredo Pascual met with officials from Qatar district cooling system (DCS) provider Qatar Cool and food brand Baladna to discuss potential partnerships during the Qatar Economic Forum (QEF) on May 16.
Source: https://mb.com.ph/2024/5/17/dti-eyes-qatar-investments-for-cooling-systems-dairy-factory
Singapore firm picks Apeco for a 25-MW solar farm [Philippine Daily Inquirer, May 17, 2024]
The Aurora Pacific Economic Zone (Apeco) said it was partnering with a Singapore-based firm to put up a renewable energy facility inside its 13,000-hectare enclave in the central Luzon province.
Source: https://business.inquirer.net/459239/singapore-firm-picks-apeco-for-a-25-mw-solar-farm
Tariff exemptions granted to e-bikes, other e-vehicles [The Manila Times, May 17, 2024]
“Executive Order No. 12 is designed to stimulate the electric vehicle (EV) market in the country, support the transition to emerging technologies, reduce our transport system’s reliance on fossil fuels, and reduce greenhouse gas emissions attributed to road transport,” Socioeconomic Planning Secretary Arsenio Balisacan said in the statement.
Three Japanese carmakers eye joint software development [Inquirer.Net, May 17, 2024]
Toyota Motor Corp., Honda Motor Co., and Nissan Motor Co. are considering working together on the development of in-car software, The Yomiuri Shimbun has learned.
Source: https://business.inquirer.net/459249/three-japanese-carmakers-eye-joint-software-development
DOF proposes sale of SCTEX shares to SSS, GSIS [The Manila Times, May 16, 2024]
Finance Undersecretary for Privatization and Corporate Affairs group Catherine Fong in a Viber message said that if the BCDA sells its shares, the DOF prefers it to be offered to the pension funds.
Source: https://www.pna.gov.ph/articles/1224905
South Korean shipbuilder to lease part of Philippine Subic Bay shipyard [interaksyon, May 16, 2024]
U.S. private equity firm Cerberus Capital Management said it has agreed to lease part of its Philippine shipyard in Subic Bay to HD Korea Shipbuilding and Offshore Engineering, which plans to build a facility there to manufacture offshore wind platforms.
DLSU Offers Full PhD Scholarship With Monthly Allowance [Spot, May 15, 2024]
Under this initiative, students will receive full tuition coverage and a monthly stipend of P35,000 over four academic years, in addition to a full waiver of miscellaneous fees.
Fashion brand Esprit files for bankruptcy for its European business [Reuters, May 15, 2024]
Esprit Europe GmbH and six other German companies of the fashion group will file for insolvency under self-administration on Wednesday, the company said, as Hong Kong-listed apparel group Esprit Holdings’ (0330.HK), opens new tab seeks to restructure its European business.
Source: https://www.reuters.com/business/retail-consumer/fashion-brand-esprit-files-bankruptcy-its-european-business-2024-05-15/
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