CALABARZON workers to receive pay hike
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [AUGUST 13-19]
- COURT OF TAX APPEALS CASES
- DEPARTMENT OF FINANCE OPINION
I. TAX & BUSINESS-RELATED NEWS [AUGUST 13-19]
- SC fines Divina over lawyers’ trips; lawyer to appeal ruling
- Chinalco mulling $2 billion stake in Philippine gold and copper mine, Bloomberg News reports
- Philippines starts shipping raw sugar to US
- Cebu’s TopLine files IPO, eyes November listing
- US wants Bautista’s $1.2 million property forfeited
- PH seen struggling with shortage of accountants
- DTI to simplify procedure for consumer complaints
- Select PAGIBIG Fund offices to open on Saturdays
- DMCI Homes-Marubeni joint venture sales hit P4 billion
- MacroAsia bottom line rockets 122% to P849 million
- SEC approves DITO’s P4.2 billion stock offer
- Marcos hopes consulting firm McKinsey to help in PH economic transformation
- BIR files tax evasion complaint vs Guo and others
- PLDT eyes new investor for data center arm, aborts talks with NTT
- Amid graft rap vs Vico Sotto, Converge says no tax discount from Pasig
- Marcos OKs franchise bid of LEYECO II
- Sulit Ba Ang HMO? Parents Share Top Health Insurance For Families
- Avon owner files for bankruptcy after wave of talc cancer claims
- US SEC sues over alleged $650 million global crypto fraud
- BSP issues rules on merchant payment acceptance
II. CTA CASES
FAILURE TO GIVE DUE CONSIDERATION TO THE ARGUMENTS & EVIDENCE SUBMITTED IN THE PETITIONER’S REPLY & PROTEST VIOLATES THEIR RIGHT TO DUE PROCESS, RENDERING THE ASSESSMENTS VOID
Petitioner Bio-Resource Power Generation Corporation filed a Petition for Review praying for the cancelation of the assessment issued by the Respondent Commissioner of Internal Revenue (CIR). Petitioner argued that its right to due process was violated when the Respondent completely disregarded the pieces of evidence submitted in its Reply to the Preliminary Assessment Notice (PAN). On the other hand, the Respondent asserted that the assessments clearly state the factual and legal bases and were made in accordance with prevailing laws and rules. In ruling, citing the Avon case, when the Respondent rejects the explanations, specific reasons and supporting facts must be provided, and these must be included in the record. Merely stating that the Petitioner failed to introduce sufficient evidence is overly general and fails to provide specific reasons for rejecting the Petitioner’s arguments. There is a clear inaction and omission to give due consideration to the arguments and evidence submitted which constitute deplorable transgressions of Petitioner’s right to due process and shall render the assessment void. Consequently, the Petition was GRANTED, and the assessment was CANCELLED. [BIO-RESOURCE POWER GENERATION CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10372, JULY 30, 2024]
[INTERNAL REVENUE TAXES MUST BE ASSESSED WITHIN THREE YEARS FROM THE FILING DEADLINE OR THE LATE FILING DATE] [MOA WITHOUT THE SIGNATURE OF CIR OR REVENUE REGIONAL DIRECTOR IS INVALID TO AUTHORIZE EXAMINATION] [TAXPAYER HAS 15 DAYS TO RESPOND FROM THE DATE OF RECEIPT OF THE PAN, NOT FROM WHEN IT WAS MAILED]
Petitioner Travel Warehouse Inc. filed a Petition for Review praying for the cancelation of the assessment issued by the Respondent Commissioner of Internal Revenue (CIR). The Petitioner contended that the right to assess has prescribed and that issuing the Final Assessment Notice (FAN) before the expiration of the 15-day period to reply on the Preliminary Assessment Notice (PAN) violated due process. On the other hand, the Respondent countered that since the PAN was mailed on October 4, 2018, the 15-day response period expired on October 19, 2018. In ruling, Section 203 of the Tax Code mandates that the government assess internal revenue taxes within three (3) years of the filing deadline or the late filing date. Thus, an assessment notice issued after this period is invalid. Furthermore, the Revenue Officer lacked authority, as the MOA, signed only by the Revenue District Officer, was insufficient to validly authorize the examination. In addition, citing Section 3.1.1 of Revenue Regulation (RR) No. 18-2013, the taxpayer has 15 days to respond from the date of receiving the PAN, not from the date it was mailed by the BIR. The Respondent failed to wait for the expiration of the 15-day period and deprived the Petitioner of its right to due process. Consequently, the Petition was GRANTED, and the assessment was CANCELLED. [TRAVEL WAREHOUSE INC VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10098, JULY 12, 2024]
III. DOF OPINION
DOF HAS NO JURISDICTION ON DISPUTED ASSESSMENT
Mr. A is requesting the Department of Finance (DOF) to review the earlier denied decision of the Commissioner of Internal Revenue (CIR) on the excise tax refund. In reply, the DOF dismissed the appeal on the ground of lack of jurisdiction over the subject matter. Citing Section 4 of the 1997 Tax Code, the first (1st) paragraph states that the Secretary of Finance has the authority to review the CIR’s interpretation of the NIRC and other tax laws, while the second (2nd) paragraph clearly provides that refund of internal revenue taxes, fees, or other charges, among others, are subject to the exclusive appellate jurisdiction of the Court of Tax Appeals (CTA). Furthermore, Section 7 of Republic Act No. 9282 provides in part that the CTA shall exercise exclusive appellate jurisdiction to review by 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 DOF lacks the authority to consider the appeal because it concerns a final decision made by the CIR on a disputed assessment, consequently, it is unable to decide regarding the case’s merits, as the CTA holds exclusive appellate jurisdiction over it. [DEPARTMENT OF FINANCE OPINION NO. 004-2024, JULY 8, 2024]
SC fines Divina over lawyers’ trips; lawyer to appeal ruling [GMA News Online, August 19, 2024]
The Supreme Court has found Atty. Nilo Divina guilty of misconduct for sponsoring the trips of the officers of the Integrated Bar of the Philippines-Central Luzon.
Chinalco mulling $2 billion stake in Philippine gold and copper mine, Bloomberg News reports [interaksyon, August 19, 2024]
Aluminum Corporation of China (Chinalco) 601600.SS is said to eye a stake worth $2 billion in Indophil Resources Phils., in a bid to gain access to what could be Philippines‘ largest gold and copper mine, Bloomberg News reported on Friday.
Philippines starts shipping raw sugar to US [The Manila Times, August 19, 2024]
THE Sugar Regulatory Administration (SRA) announced on Sunday the start of loading for the shipment of 25,300 metric tons (MT) of raw sugar to fulfill the country’s sugar allocation quota to the United States as provided in Sugar Order (SO) 3.
Cebu’s TopLine files IPO, eyes November listing [GMA News Online, August 19, 2024]
“With our accelerating growth in recent years in the fuel sector of the Visayas region, we are poised for the company’s historic milestone of listing on the PSE,” TopLine Chairman, President, and Chief Executive Officer Eugene Erik Lim said in a separate statement.
US wants Bautista’s $1.2 million property forfeited [The Philippine Star, August 17, 2024]
United States authorities are seeking the forfeiture of a $1.2-million property in San Francisco, California believed to have been purchased by former Commission on Elections (Comelec) chairman Andres Bautista using bribe money he allegedly received from election technology provider Smartmatic.
PH seen struggling with shortage of accountants [Philippine Daily Inquirer, August 17, 2024]
Marvin Galang, co-founder of financial mobile app built for freelancers called Beppo, said on Friday that they found alarming the results of a survey showing that there is a 41-percent decline in student enrolment in local accounting programs.
https://business.inquirer.net/475199/ph-seen-struggling-with-shortage-of-accountants
DTI to simplify procedure for consumer complaints [Philippine Daily Inquirer, August 17, 2024]
Citing the changing trends brought about by recent technological advances, such as the rise in online shopping and digital marketing, the DTI sees the need to amend the procedural rules.
https://business.inquirer.net/475388/dti-to-simplify-procedure-for-consumer-complaints
Select PAGIBIG Fund offices to open on Saturdays [GMA News Online, August 16, 2024]
The Home Development Mutual Fund or PAGIBIG Fund released a list of regional and satellite branches that would be open on Saturdays.
DMCI Homes-Marubeni joint venture sales hit P4 billion [GMA News Online, August 16, 2024]
The sales booked by the joint venture of DMCI Homes and Marubeni Corp., The Valeron Tower, hit P4 billion six months after its launch in January.
MacroAsia bottom line rockets 122% to P849 million [Philippine Daily Inquirer, August 15, 2024]
Listed aviation-support provider MacroAsia Corp.’s consolidate net income in the first half surged by 122 percent to P849.1 million from P382.2 million in the same period last year, driven by growth in its revenue and contributions from its associates.
https://business.inquirer.net/474954/macroasia-bottom-line-rockets-122-to-p849-million
SEC approves DITO’s P4.2 billion stock offer [Manila Bulletin, August 15, 2024]
In its meeting on August 15, the Commission En Banc resolved to render effective DITO’s registration statement covering a total of 1.95 billion common shares priced at P1.00 to P2.15 per share, subject to the company’s compliance with certain remaining requirements.
https://mb.com.ph/2024/8/15/sec-approves-dito-s-p4-2-billion-stock-offer
Marcos hopes consulting firm McKinsey to help in PH economic transformation [GMA News Online, August 15, 2024]
McKinsey & Company is a global management consulting firm that usually advises to the world’s leading businesses, governments, and institutions.
https://www.gmanetwork.com/news/topstories/nation/917164/marcos-mckinsey-amp-company/story/
Calabarzon workers to receive pay hike [The Philippine Star, August 14, 2024]
Minimum wage earners in Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) are expected to receive an increase in their daily take-home pay starting next month.
https://qa.philstar.com/nation/2024/08/14/2377646/calabarzon-workers-receive-pay-hike
BIR files tax evasion complaint vs Guo and others [Inquirer.Net, August 14, 2024]
In an interview, Lumagui said the criminal complaint follows Guo’s admission that she transferred her shares in Baofu to Uy. The investigation also showed that no Capital Gains Tax (CGT) and Documentary Stamp Tax (DST) returns were filed and paid in relation to this transfer.
https://business.inquirer.net/474757/bir-on-filing-of-tax-evasion-complaint-vs-guo-others
PLDT eyes new investor for data center arm, aborts talks with NTT [Philippine Daily Inquirer, August 14, 2024]
PLDT Inc. is no longer pursuing talks with Japan’s Nippon Telegraph and Telephone Corp. (NTT) to sell up to 49 percent of its data center business, according to company chair Manuel V. Pangilinan.
Amid graft rap vs Vico Sotto, Converge says no tax discount from Pasig [GMA News Online, August 14, 2024]
The complaint claimed that the P3.67-million business tax dues included surcharge and interest due to Converge’s under-declaration of the extent of its operations, particularly the number of its employees and the size of its office space.
Marcos OKs franchise bid of LEYECO II [GMA News Online, August 14, 2024]
President Ferdinand ”Bongbong” Marcos Jr. has approved the franchise bid of Leyte II Electric Cooperative (LEYECO II) which aims to ensure the power supply in parts of Leyte.
https://www.gmanetwork.com/news/money/companies/917038/marcos-oks-franchise-bid-of-leyeco-ii/story/
Sulit Ba Ang HMO? Parents Share Top Health Insurance For Families [smartparenting, August 13, 2024]
Here are the top HMO choices of the Smart Parenting Village moms and dads for their families:
Avon owner files for bankruptcy after wave of talc cancer claims [Yahoo Finance, August 13, 2024]
Avon has filed for bankruptcy after being hit with a flurry of claims alleging talcum powder in its products causes cancer.
US SEC sues over alleged $650 million global crypto fraud [Reuters, August 13, 2024]
The U.S. Securities and Exchange Commission on Monday sued the cryptocurrency company NovaTech and its married co-founders, saying they fraudulently raised over $650 million from more than 200,000 investors worldwide, including many Haitian-Americans.
BSP issues rules on merchant payment acceptance [GMA News Online, August 13, 2024]
The central bank said the framework “aims to establish standards and best practices to safeguard customer funds and protect merchants’ rights when dealing with operators of payment systems (OPS) engaged in MPAA.”
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