Bicam approves CREATE MORE bill
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [SEPTEMBER 9-16]
- COURT OF TAX APPEALS CASE
I. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 9-16]
- Minimum wage hike approved in Calabarzon, Central Visayas
- Here’s why employers can’t force you to come to work during flooding
- Bill on lower optional retirement age for gov’t workers passes 2nd reading
- Lacoste loses ‘battle of crocs’
- SC orders Cebu governor to settle bank debt
- Senate OKs bill on college degrees based on work experience
- Tolentino raises concern over Sulu’s fiscal problem after exclusion from BARMM
- Ex-DOF exec convicted anew for tax credit scam
- BI approves rules for refunding offloaded passengers
- DoT introduces Muslim-friendly cove in Boracay
- Biz group bucks another wage hike in West Visayas
- NEPC presents 5-year devt plan in Negros
- 38 years since historic ‘sipat,’ Cordillera still awaits autonomy
- Chinese steelmaker invests $1B for plant in Sarangani
- 12 Philippine companies among world’s best 1,000
- TeaM Energy, Mariwasa expand solar partnership in Batangas
- China Raises Retirement Age for the First Time Since the 1950s
- OECD-developed tax cooperation convention comes into force in Philippines
- Pay P236-M back taxes, court tells BGC operator
- E-gaming could draw P20 billion, but regulation lapses noted
- Alice Guo only paid estimated P20,000 in taxes prior to mayoral post — senator
- BSP stands firm on liquidity requirements
- Palm oil industry stakeholders optimistic on growth prospects
- Mandaue ranks 2nd in nat’l fiscal awards
- Lucio Co seals takeover of 2nd power plant in Nueva Vizcaya
- Bangsamoro gov’t to buy 80% of Islamic bank from DBP
- SMC eyes more mega farms to boost Philippines poultry production
- Bicam approves CREATE MORE bill
- DLSU Patents Innovative Method to Recycle Paper Cups Into Liquid Dispenser Tips
- Unregistered online businesses may be suspended: BIR
II. CTA CASE
[THE TITLE “FORMAL LETTER OF DEMAND” IS A CLEAR REQUIREMENT FOR PAYMENT] [DUE PROCESS REQUIRES BIR TO CONSIDER THE TAXPAYER’S DEFENSES & PROVIDE A WRITTEN EXPLANATION OF THE LAW & FACTS BEHIND THE ASSESSMENT, OR ELSE THE ASSESSMENT IS VOID]
Petitioner Altimax Broadcasting Co. Inc. filed a Petition for Review praying for the reversal and the setting aside of Final Decision on Disputed Assessment (FDDA) on its alleged deficiency income tax issued by the Respondent Commissioner of Internal Revenue (CIR). Petitioner asserts that the Respondent’s Formal Letter of Demand (FLD) and FDDA are legally deficient, as they lack a clear tax demand, fail to specify the factual and legal basis for the assessment, and do not provide reasons for denying the Petitioner’s defenses or conducting a proper quality audit. In ruling, the Court held that the title “Formal Letter of Demand” clearly indicates a demand, and the phrases “requested to pay” or “requested to settle” do not diminish its clear requirement for payment of deficiency tax. Citing the Supreme Court landmark case of Avon, due process requires the Bureau of Internal Revenue to consider the taxpayer’s defenses and evidence. The taxpayers shall be informed in writing of the law and the facts on which the assessment is made; otherwise, the assessment shall be void. Consequently, the Petition was GRANTED, and the FLD/FAN issued was CANCELLED and SET ASIDE. [ALTIMAX BROADCASTING CO. INC. VS CIR, CTA CASE NO. 10687, AUGUST 21, 2024]
Minimum wage hike approved in Calabarzon, Central Visayas [The Philippine Star, September 16, 2024]
In Calabarzon, the minimum wage increase ranges from P21 to P75 per day, while the minimum wage increase for Central Visayas is set at P33 to P43 per day.
Here’s why employers can’t force you to come to work during flooding [interaksyon, September 16, 2024]
According to the Department of Labor and Employment (DOLE), employees who fail or refuse to work due to imminent danger from weather disturbances cannot be subject to administrative sanctions.
Bill on lower optional retirement age for gov’t workers passes 2nd reading [Cebu Daily News, September 16, 2024]
“In accordance with this, we in the Committee agree that government workers who have served for 15 years and have reached 56 years old can be given the freedom to choose optional retirement, with old-age pension benefits while they are living,” she added.
Lacoste loses ‘battle of crocs’ [InquirerPlus, September 16, 2024]
“The Court holds that there are pronounced differences between Lacoste’s and Crocodile’s marks, [which make] them distinguishable from one another,” the high tribunal said in the decision dated Nov. 6, 2023, but made public on Sept. 10.
https://plus.inquirer.net/news/lacoste-loses-battle-of-crocs/
SC orders Cebu governor to settle bank debt [The Philippine Star, September 16, 2024]
The case dates back to 1996, when Garcia took out a loan amounting to $900,000 from the HSBC to purchase a light transit barge for her company GGC Enterprises.
https://qa.philstar.com/nation/2024/09/16/2385574/sc-orders-cebu-governor-settle-bank-debt
Senate OKs bill on college degrees based on work experience [GMA News Online, September 16, 2024]
Senator Joel Villanueva, who defended the measure, said its intent “is to allow and empower persons who had to start working immediately, to be able to have their working experiences and prior learnings recognized and given equivalent credits for tertiary education.”
Tolentino raises concern over Sulu’s fiscal problem after exclusion from BARMM [Manila Bulletin, September 16, 2024]
Acknowledging the national government’s lack of anticipation of the high court’s ruling that the province of Sulu is not part of the BARMM, Tolentino said the consequence is the difficulty of funding BARMM offices in the detached province.
Ex-DOF exec convicted anew for tax credit scam [The Philippine Star, September 15, 2024]
The cases stemmed from the DOF’s issuance of five tax credit certificates (TCCs) worth P19.76 million to Filstar from 1995 to 1996 even if the company was allegedly not qualified for tax incentives.
https://qa.philstar.com/headlines/2024/09/15/2385353/ex-dof-exec-convicted-anew-tax-credit-scam
BI approves rules for refunding offloaded passengers [The Philippine Star, September 15, 2024]
The agency’s Joint Memorandum Circular No. 2024-001 that “outlines the reimbursement process has already been signed by the BI and the Department of Justice Secretary Jesus Crispin Remulla,” according to BI officer-in-charge Joel Anthony Viado.
DoT introduces Muslim-friendly cove in Boracay [The Manila Times, September 14, 2024]
Patterned after other existing Muslim-friendly beaches in tourism destinations such as the Maldives and Thailand, the Marhaba Cove spanned around 850 square meters and was envisioned as a special-use area for Muslim travelers and families, taking into consideration Islamic laws.
Biz group bucks another wage hike in West Visayas [Philippine Daily Inquirer, September 14, 2024]
The Metro Bacolod Chamber of Commerce and Industry (MBCCI) is against any wage increase for private sector employees, saying it could worsen the economic struggles in Western Visayas.
https://newsinfo.inquirer.net/1983081/biz-group-bucks-another-wage-hike-in-west-visayas
NEPC presents 5-year devt plan in Negros [The Manila Times, September 14, 2024]
The Negros Electric Power Corp. (NEPC) announced its plans to increase its capacity, upgrade primary and secondary lines to reduce system loss, and improve the system reliability, while also seeking to implement digitization initiatives.
https://www.manilatimes.net/2024/09/14/regions/nepc-presents-5-year-devt-plan-in-negros/1971407
38 years since historic ‘sipat,’ Cordillera still awaits autonomy [InquirerPlus, September 14, 2024]
Section 15, Article X of the 1987 Constitution pushes for the creation of autonomous regions for the Cordillera and Muslim Mindanao where Filipinos share “common and distinctive historical and cultural heritage, economic and social structures.” Only Muslim Mindanao has fulfilled that mandate with the 2010 Autonomous Region of Muslim Mindanao, and the expanded Bangsamoro Autonomous Region of Muslim Mindanao of 2019.
https://plus.inquirer.net/news/38-years-since-historic-sipat-cordillera-still-awaits-autonomy/
Chinese steelmaker invests $1B for plant in Sarangani [Philippine Daily Inquirer, September 14, 2024]
According to its Facebook page, Pisi will be the first 2 million metric ton per annum (mtpa) integrated steel mill in the Philippines. The plant will be at the Peza-approved Kamanga Agro-Industrial Economic Zone at Barangay Kamanga, Maasim.
https://newsinfo.inquirer.net/1983112/chinese-steelmaker-invests-1b-for-plant-in-sarangani
12 Philippine companies among world’s best 1,000 [Manila Standard, September 13, 2024]
This makes the Philippines the top Southeast Asian country with the most companies on the list, surpassing Singapore with 11, Indonesia with five, and Thailand and Malaysia with four each.
TeaM Energy, Mariwasa expand solar partnership in Batangas [BusinessWorld, September 13, 2024]
TEAM Philippines Energy Corp. (TPEC), the retail electricity arm of TeaM Energy Corp., has energized a 1.3-megawatt (MW) solar photovoltaic rooftop system for a tile manufacturing plant in Sto. Tomas, Batangas.
China Raises Retirement Age for the First Time Since the 1950s [The New York Times, September 13, 2024]
This is the first time China has raised its retirement age since the 1950s. It will be phased in gradually, starting on Jan. 1, 2025. The retirement age for men, previously 60, will increase in increments of several months before finally reaching 63 by 2040. The retirement age for women in white-collar jobs, previously 55, will rise to 58. Women in blue-collar jobs, who previously could retire at 50, will have to work until 55.
https://www.nytimes.com/2024/09/13/world/asia/china-retirement-age.html
OECD-developed tax cooperation convention comes into force in Philippines [The Philippine Star, September 13, 2024]
This came after the Senate passed a resolution concurring with the ratification of the Philippines’ participation in the Convention on Mutual Administrative Assistance in Tax Matters (MAAC).
Pay P236-M back taxes, court tells BGC operator [Philippine Daily Inquirer, September 13, 2024]
The Court of Tax Appeals (CTA) has directed Fort Bonifacio Development Corp. (FBDC), operator of Bonifacio Global City (BGC), to pay P235.96 million in income tax and value-added tax (VAT) due more than a decade ago.
https://newsinfo.inquirer.net/1982789/pay-p236-m-back-taxes-court-tells-bgc-operator
E-gaming could draw P20 billion, but regulation lapses noted [BusinessMirror, September 13, 2024]
Gatchalian conceded there are still big “lapses in regulation” in e-gaming. “For example, it’s so easy to open an account for e-gaming. Even if you give a fake name, as we’ve seen in the last hearing; you can also give a fake age. You’re 16 but you can say you’re 21.”
Alice Guo only paid estimated P20,000 in taxes prior to mayoral post — senator [The Philippine Star, September 12, 2024]
Gatchalian, who chairs the Senate Committee on Ways and Means, flagged the large amount of money that was deposited from Guo’s bank account from 2017 to 2024, which accumulated to a total of P1.9 billion.
BSP stands firm on liquidity requirements [Philippine Daily Inquirer, September 12, 2024]
The BSP said maintaining the 20 percent minimum liquidity ratio (MLR) of thrift banks is “appropriate” as this ensures that smaller lenders have enough cash to withstand potential stress events while continuing to meet the funding needs of their clients.
https://business.inquirer.net/479712/bsp-stands-firm-on-liquidity-requirements
Palm oil industry stakeholders optimistic on growth prospects [The Philippine Star, September 12, 2024]
At the recently concluded National Palm Oil Congress in Davao City, Ares Merchants Philippines Inc. (AMPI), a leading supplier of vegetable oils, noted significant improvements in local palm oil production and indicated the possibility of further growth.
Mandaue ranks 2nd in nat’l fiscal awards [SunStar Cebu, September 12, 2024]
SEVENTY-FIVE percent of Man-daue City’s total revenue, amounting to P3.3 billion in 2022 was generated locally, with only P1.1 billion, or 30 percent, coming from the national tax allotment (NTA).
https://www.sunstar.com.ph/cebu/mandaue-ranks-2nd-in-natl-fiscal-awards
Lucio Co seals takeover of 2nd power plant in Nueva Vizcaya [Philippine Daily Inquirer, September 11, 2024]
Cosco Capital Inc., Co’s listed supermarket, liquor and property holding company, bought all 9.18 million shares in Matuno River Development Corp. (MRDC) for P111.16 each.
https://business.inquirer.net/479475/lucio-co-seals-takeover-of-2nd-power-plant-in-nueva-vizcaya
Bangsamoro gov’t to buy 80% of Islamic bank from DBP [Philippine Daily Inquirer, September 10, 2024]
The Bangsamoro government plans to buy 80 percent of Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP) from the Development Bank of the Philippines (DBP), citing its goal to promote financial inclusion and accelerate socioeconomic development in the region.
https://business.inquirer.net/479214/bangsamoro-govt-to-buy-80-of-islamic-bank-from-dbp
SMC eyes more mega farms to boost Philippines poultry production [The Philippine Star, September 10, 2024]
Ang said the company is set to open a mega farm in Quezon to be followed by another in Bataan.
Bicam approves CREATE MORE bill [Philippine News Agency, September 10, 2024]
House ways and means committee chair Joey Salceda said the Senate adopted the lower chamber’s proposals to apply the 20 percent rate on corporate income tax (CIT) to both CREATE-era and CREATE MORE-availing enterprises, permit local government units (LGUs) to set the registered business enterprise (RBE) local tax lower than 2 percent, and grant tax refunds to petroleum suppliers for all tax-exempt entities.
https://www.pna.gov.ph/articles/1233062
DLSU Patents Innovative Method to Recycle Paper Cups Into Liquid Dispenser Tips [Good News Pilipinas, September 10, 2024]
The patent, granted on June 27, 2023, will remain in effect for 17 years, until May 7, 2040. The invention, a rollable pipette tip material, was created by Dr. Jose Isagani Janairo of the Department of Biology and Brandon Cyril Lira, a part-time faculty member from the Department of Chemistry.
Unregistered online businesses may be suspended: BIR [ABS-CBN News, September 9, 2024]
In a statement, the BIR said their Revenue Regulations No. 15-2024 states that business operations may be suspended through the issuance of a closure or take-down order.
https://news.abs-cbn.com/business/2024/9/9/unregistered-online-businesses-may-be-suspended-bir-906
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