FIRB sets policy on non-income related tax incentives
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [JULY 5-10]
- DEPARTMENT OF JUSTICE LEGAL OPINIONS
- COURT OF TAX APPEALS CASE
I. TAX & BUSINESS-RELATED NEWS [JULY 5-10]
- New rules on preliminary probe, inquest proceedings signed
- South Korea Samsung union declares ‘indefinite’ strike
- CHR fears displacement as P80-M ‘Mega-City’ rises in Ormoc
- More Power launches control center
- First Gen vying for 797-MW Laguna hydropower complex
- Honda to end production at Thai plant
- Megawide, DoubleDragon start construction of Hotel 101 in Quezon City
- Dali grocery chain ordered to stop sale of suspected rip off products
- Vietnamese fertilizer producer urged to invest in PH
- PH game developers earn $9.20M in Sweden
- Aboitiz opens largest feed mill in Yunnan
- Marcos tasks DTI to elevate PH steel industry roadmap
- SC: P90.7-M benefits for PNCC execs illegal
- Govt eyes early completion of key Luzon railway project
- PPA sees completion of 14 flagship projects until 2028
- 42 million people possibly affected by 2023 PhilHealth data breach
- More Credit Card Holders Now Eligible For Simplified Korean Visa
- More people are leaving Metro Manila. Here’s why
- Major companies, university eye to invest in Danao City in 3-5 years
- Marcos creates special economic zone in Victoria, Tarlac
- Philippines, 4 Asian countries to link instant payment systems
- Lanao Norte, Misamis Occ now linked by bridge
- FIRB sets policy on non-income related tax incentives
- NFA is exempt from real property tax — SC
- UE parking rule draws flak from netizens
II. DOJ LEGAL OPINIONS
DOJ OPINION ON LEGAL FRAMEWORK ON GRANTING PRIVILEGES & IMMUNITIES TO THE LOSS & DAMAGE FUND BOARD
The Department of Finance (DoF) and the Department of Environment and Natural Resources (DENR) are requesting guidance relative to the proposed Philippines’ bid to host the Loss and Damage Fund (LDF or Fund) Board. As represented, the first LDF Board meeting was held in Abu Dhabi, United Arab Emirates, wherein the terms of Reference (TOR) for the selection of the host country were adopted by the Board. In this regard, the DoF and DENR seek the DOJ’s opinion and recommendation on whether national legislation or a treaty is the proper form of granting the Privileges and Immunities of the Board. In reply, the privileges and immunities extended to the UN, its agencies and their officials and staff are generally only those provided by the 1946 Convention on the Privileges and Immunities of the UN (1946 Convention) and the 1947 Convention on the Privileges and Immunities of the Specialized Agencies of the UN 1947 Convention, to which the Philippines is both a State Party thereto. The LDF Board, however, is not among the specialized agencies listed under the 1947 Convention. If it is the intention of the Philippine government that the LDF Board shall have a status “similar to that of a specialized agency,” pursuant to Articles 57 and 63 of the 1947 Convention, the DOJ suggests that this should be clearly stated under Article 3, Legal Status of the draft HCA. Further, the Philippines may be able to confer privileges and immunities to the Board, its fund, assets and other property, provided that there be an enabling legislation, or in the absence thereof, an international agreement or treaty, which will provide the legal basis for the grant of said privileges and immunities. This is in line with the principle of pacta sunt servanda, where the Philippines is bound to comply in good faith with our international obligations and commitments, particularly that provided for in the 1946 Convention on the Privileges and immunities of the Specialized Agencies. [DEPARTMENT OF JUSTICE LEGAL OPINION NO. 24, SERIES OF 2024, JUNE 11, 2024]
BANGSAMORO LOCAL GOVERNMENT CODE PROVIDES FOR THE POWER OF GENERAL SUPERVISION OF THE BANGSAMORO GOVERNMENT OVER ITS CONSTITUENT LGUs
Deputy Secretary of Legal Affairs of the Office of the President is requesting an opinion on the constitutionality of Sections 28 and 29 of the Bangsamoro Autonomy Act No. 49 or the Bangsamoro Local Governance Code (BLGC) which empowers the Chief Minister (CM) of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to exercise general supervision over Local Government Units (LGUs) within the region. The issue was prompted by the position paper submitted by the Department of Interior and Local Government (DILG) contending that the said sections of the BLGC infringes on the President’s constitutional power of general supervision over local governments. DILG posits that that Section 4, Article X of the Constitution grants the power of general supervision over local governments to the President, that the intent of the law (Republic Act (RA) No. 11054) is to reserve supervisory power over local governments to the President, and that the Secretary of the DILG is the President’s alter ego with respect to LGUs. In reply, the constitutionality of the BLGC, including Sections 28 and 29 thereof, is assailed in the Petition for Certiorari and Prohibition filed before the Supreme Court docketed as G.R. No. 271894 dated 26 February 2024. Petitioners therein seek to declare the BLGC unconstitutional for violation of the 1987 Constitution, RA No. 7160, RA No. 11054, and other laws. The DOJ deferred the rendition of the requested opinion since the matter is sub judice or pending litigation in court, to do so would be improper but also impractical, since the ruling of the DOJ has no binding effect upon the courts. The Secretary of Justice has desisted from ruling and is not inclined to adopt such course of action as it may amount to undue interference in the performance of the functions of the courts. [DEPARTMENT OF JUSTICE LEGAL OPINION 23 SERIES OF 2024, JUNE 5, 2024
EXPANDED GOVERNMENT ASSISTANCE TO STUDENTS & TEACHERS IN PRIVATE SCHOOLS ACT DID NOT AMEND THE EXISTING LAW BUT EXPANDED THE COVERAGE TO INCLUDE POST-SECONDARY VOCATIONAL & TECHNICAL EDUCATION & HIGHER EDUCATION
Congressman R is requesting a legal opinion on whether the Republic Act (R.A.) No. 6728 has been repealed by R.A. No. 8545. This legal opinion was requested in connection with drafting a substitute bill further amending RA No. 8545, known as the “Expanded Government Assistance to Students and Teachers in Private Schools Act (EGASTPE),” which took effect in 1998. It was stated that Section 1 thereof indicates that it is merely amending R.A. No. 6728, known as the “Government Assistance to Students and Teachers in Private Education Act (GASTPE),” the way it presented the provisions essentially omitted all sections of the previous legislation. Stated further, upon comparative examination of the two laws, it becomes apparent that they share similar provisions with nuanced differences, leading a reader to infer that the subsequent law might have repealed the preceding legislation. In reply, R.A. No. 8545 did not repeal R.A. 6728. R.A. No. 8545 explicitly repealed Presidential Decree (P.D.) No’s. 932 and 1371 only. Citing a Jurisprudence by the Supreme Court in Mecano v. Commission on Audit, “The question of whether a particular law has been repealed or not by a subsequent law is a matter of legislative intent. The lawmakers may expressly repeal a law by repealing a provision that expressly and specifically cites the particular law or laws, and portions thereof, that are intended to be repealed. A declaration in a statute, usually in its repealing clause, that a particular law, identified by its number or title, is repealed is an express repeal; all others are implied repeals. R.A. No. 6728 and R.A. No. 8545 were not inconsistent with each other, leading to the conclusion of an implied repeal of R.A. No. 6728. Further, the legislative intent of R.A. No. 8545 is to merely expand the coverage of R.A. No. 6728. RA No. 6728 was enacted to provide government assistance to students and teachers in private basic elementary and secondary education. With the amendments made by R.A. No. 8545, the coverage of government assistance was expanded even to post-secondary vocational and technical education and higher education and provided salary subsidies to teachers in private high schools. Moreover, R.A. No. 8545 added new provisions, deleted one, and renumbered some, but the principles of RA No. 6728 remain. [DEPARTMENT OF JUSTICE LEGAL OPINION NO. 22, SERIES OF 2024, MAY 16, 2024]
III. CTA CASE
FAILURE TO APPEAL WITHIN THE SET PERIOD PREVENTS THE COURT FROM GAINING JURISDICTION OVER THE CASE
Petitioner Quadfoods Corporation filed a Petition for Review with an Urgent Motion for Suspension of Collection of Tax and a Motion to Dispense with the Payment of Bond, seeking to have the deficiency tax assessment issued by the Respondent Commissioner of Internal Revenue (CIR) declared null and void. The Petitioner claims that they are not liable for the alleged assessment contained in the Final Decision on Disputed Assessment (FDDA). In ruling, the Court held that the Petitioner must file an appeal within thirty (30) days from the receipt of the FDDA. The Petitioner can choose to appeal either to the Court of Tax Appeals (CTA) or request a reconsideration to the CIR if the FDDA is issued by the CIR’s authorized representative. If the CIR has already issued an FDDA, the Petitioner must appeal to the CTA within thirty (30) days from the receipt of the CIR’s decision. Petitioner’s records show that the FDDA was received on January 29, 2019. However, the Petitioner claims it received the FDDA on January 28, 2019. Counting thirty (30) days from these dates, the deadline to file the Appeal was either February 27, 2019, or February 28, 2019. Unfortunately, the Petition was filed late on December 9, 2020, more than a year after the appeal period had lapsed. Consequently, the Court did not acquire jurisdiction over the case. Hence, the instant Petition was DISMISSED. [QUADFOODS CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10419, JUNE 6, 2024]
New rules on preliminary probe, inquest proceedings signed [GMA News Online, July 10, 2024]
Vasquez also reiterated that the standard of proof was raised from probable cause to prima facie evidence with reasonable certainty of conviction.
South Korea Samsung union declares ‘indefinite’ strike [The Philippine Star, July 10, 2024]
Samsung Electronics managed to avoid having its employees unionise for almost 50 years — sometimes adopting ferocious tactics, according to critics — while rising to become the world’s largest smartphone and semiconductor manufacturer.
CHR fears displacement as P80-M ‘Mega-City’ rises in Ormoc [Inquirer.Net, July 10, 2024]
The Commission on Human Rights (CHR) has urged the local government of Ormoc and the Premium Land Corporation to engage “in a genuine and transparent dialogue” with communities affected by the company’s P80 million eco-park and township development project in the city.
https://newsinfo.inquirer.net/1959590/chr-fears-displacement-as-p80-m-mega-city-rises-in-ormoc
More Power launches control center [Business Mirror, July 10, 2024]
Iloilo City—More Electric and Power Corp. (More Power) has unveiled its new control center as part of its P115-million Simple Historical Code and Data Acquisition (SCADA) Project.
https://businessmirror.com.ph/2024/07/10/more-power-launches-control-center/
First Gen vying for 797-MW Laguna hydropower complex [The Philippine Star, July 10, 2024]
The hydropower plant is currently under a 25-year build-rehabilitate-operate-transfer and power purchase agreement between CBK Power Co. Ltd. and the National Power Corp. The contract will expire in February 2026.
Honda to end production at Thai plant [The Manila Times, July 10, 2024]
The move highlights the tougher conditions Japan’s second-biggest automaker faces in the Southeast Asian nation as Chinese brands aggressively seek to gain market share in Thailand and consumer demand for electric vehicles (EVs) grows.
Megawide, DoubleDragon start construction of Hotel 101 in Quezon City [BusinessWorld, July 10, 2024]
The leisure hotel will have a total of 702 units and will sit on a 2,547-square-meter property within the Bridgetowne Estate in Libis, Quezon City, Megawide said in a statement on Tuesday.
Dali grocery chain ordered to stop sale of suspected rip off products [Philippine Daily Inquirer, July 9, 2024]
The case stems from the Dali selling Kulina catsup and chili sauce, and Rajah Puro vinegar and soy sauce in packaging confusingly similar to Nutri-Asia’s popular household brands UFC and Datu Puti products.
Vietnamese fertilizer producer urged to invest in PH [Philippine Daily Inquirer, July 9, 2024]
Binh Dien has decades of experience in producing fertilizer in its home soil. It has several factories with a combined capacity of 1 million metric tons, supplying 30 percent of Vietnam’s fertilizer requirements.
https://business.inquirer.net/467773/vietnamese-fertilizer-producer-urged-to-invest-in-ph
PH game developers earn $9.20M in Sweden [Department of Trade & Industry, July 9, 2024]
Renowned as Europe’s top game developer conference connecting game developers, publishers, and investors, Nordic Game provided a valuable opportunity for the Philippine studios to forge partnerships and explore new business avenues. The significant sales achieved underscore the growing global recognition of the Philippines as a hub for game development.
Aboitiz opens largest feed mill in Yunnan [Philippine Daily Inquirer, July 9, 2024]
In a statement, Pilmico and Gold Coin Group said the facility, powered by the latest equipment and technology, has a capacity of 150,000 metric tons (MT) but is also designed for expansion to a maximum of 500,000 MT. The plant will cater to more species, including swine, poultry, aqua and other ruminants.
https://business.inquirer.net/467698/aboitiz-opens-largest-feed-mill-in-yunnan
Marcos tasks DTI to elevate PH steel industry roadmap [GMA News Online, July 9, 2024]
President Ferdinand ”Bongbong” Marcos Jr on Tuesday directed the Department of Trade and Industry (DTI) to update the country’s Iron and Steel Roadmap to ensure its continued stability.
SC: P90.7-M benefits for PNCC execs illegal [Philippine Daily Inquirer, July 9, 2024]
The Supreme Court noted that “obvious warning signs” such as the losses incurred by the PNCC as late as 2009 should have cautioned the petitioners about the illegality of their gratuity benefits, considering they were board members at that time.
https://newsinfo.inquirer.net/1959181/sc-p90-7-m-benefits-for-pncc-execs-illegal
Govt eyes early completion of key Luzon railway project [The Manila Times, July 9, 2024]
THE Subic-Clark-Manila-Batangas rail project in the Luzon Economic Corridor is expected to be completed within a few years, contingent upon securing the necessary right of way, a government economic manager said.
PPA sees completion of 14 flagship projects until 2028 [Business Mirror, July 9, 2024]
The PPA’s infrastructure plan includes a range of projects across the Luzon, Visayas, and Mindanao clusters. All 14 flagship projects are expected to be completed within the term of President Marcos.
https://businessmirror.com.ph/2024/07/09/ppa-sees-completion-of-14-flagship-projects-until-2028/
42 million people possibly affected by 2023 PhilHealth data breach [ABS-CBN News, July 8, 2024]
The records of around 42 million individuals are possibly affected by the 2023 data breach on Philippine Health Insurance Corporation (PhilHealth), according to the National Privacy Commission (NPC).
More Credit Card Holders Now Eligible For Simplified Korean Visa [Cosmopolitan, July 8, 2024]
The Embassy of the Republic of Korea has just made it easier for you to process your visa. Starting July 22, 2024, to December 31, 2024, the visa application process is being simplified for credit card holders from BPI, RCBC, and Metrobank, on top of the existing policy for BDO cardholders.
More people are leaving Metro Manila. Here’s why [Inquirer, July 8, 2024]
“Remote work is now on an exponential trajectory and growing fast. With its growth, thousands of destinations, from tiny surf villages to cosmopolitan megacities, are now competing to attract remote workers,” Nomad List said.
https://newsinfo.inquirer.net/1958948/more-people-are-leaving-metro-manila-heres-why
Major companies, university eye to invest in Danao City in 3-5 years [Cebu Daily News, July 7, 2024]
Danao City Mayor Thomas “Mix” Durano outlined the city’s achievements in his first State of the City Address (SOCA) on Friday at the Civic Center, where he bannered the city’s goal to become a livable city by 2028.
Marcos creates special economic zone in Victoria, Tarlac [GMA News Online, July 7, 2024]
Based on Proclamation No. 623 signed by Executive Secretary Lucas Bersamin on July 4, the 297,719-square meter property will be known as the Victoria Industrial Park.
Philippines, 4 Asian countries to link instant payment systems [The Philippine Star, July 7, 2024]
The BSP, the Bank for International Settlements (BIS) and four other Asian central banks will now work on the next stage of connecting their instant payment systems (IPS) seamlessly.
Lanao Norte, Misamis Occ now linked by bridge [Inquirer Mindanao, July 6, 2024]
At 11 a.m. on Thursday, the last concrete mix was poured to complete the full expanse of the Panguil Bay Bridge that connects this capital town of Lanao del Norte province and Tangub City in Misamis Occidental province.
https://newsinfo.inquirer.net/1958358/lanao-norte-misamis-occ-now-linked-by-bridge
FIRB sets policy on non-income related tax incentives [The Philippine Star, July 6, 2024]
In its latest resolution, the FIRB said there is a need to issue a policy on the duration of non-income tax-based incentives to guide various investment promotion agencies (IPAs) in granting tax perks to projects under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
NFA is exempt from real property tax — SC [GMA News Online, July 5, 2024]
In a 40-page decision promulgated in May, the SC En Banc granted a petition and declared void the notices of delinquency issued by the Tagum City Treasurer against the NFA amounting to P2.6 million in real property taxes.
UE parking rule draws flak from netizens [Inquirer.Net, July 5, 2024]
The University of the East (UE) is gaining jeers from netizens, who frown on the school’s parking policy that comes with an annual fee but not with a guaranteed space.
https://newsinfo.inquirer.net/1958239/ue-parking-rule-draws-flak-from-netizens
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