PH sold 24.9 tonnes of gold in H1 2024; part of strategy, says BSP
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [SEPTEMBER 16-26]
- BIR CLARIFIES THE TAXABILITY OF MEDICAL ALLOWANCE FOR QUALIFIED GOVERNMENT EMPLOYEES
- COURT OF TAX APPEALS CASES
I. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 16-26]
- FDA creates task force to enhance medical devices regulation
- Marcos signs agri economic sabotage bill into law
- Lemon Law not exclusive remedy to new but defective vehicles, says SC
- PH gov’t to sell Semirara shares, Mile Long, other assets
- PH sold 24.9 tonnes of gold in H1 2024; part of strategy, says BSP
- First Pacific sees Maya turning profitable this year
- Delayed priority measure on PH seafarers’ charter signed into law
- SEC: Another amnesty set for delinquent firms
- Lopez group building retail center at Batangas ecozone
- Hotels still sprouting in Boracay, but it’s no longer developers’ fave
- Honda mulls e-motorcycle production
- Armscor eyes new manufacturing plant in Rizal in next 2 years
- Malacañang announces new appointees to various gov’t agencies
- Bishops declare ‘climate emergency’ in South Cotabato, Sarangani
- Gwen: HSBC loan private, unrelated to government
- DOF touts to Singapore firms perks under Create More bill
- Oil firm sounds alarm on investment scam using its brand
- US court OKs PLDT’s settlement of lawsuits; to pay $3M
- Graft complaint filed vs. BCDA, CDC, DENR execs over closure of Tarlac landfill
- Maynilad unit upgrades Legazpi water treatment plant
- Davao solar rooftop project gets BOI perks
- BIR cuts floor price for cigarettes, vape products
- DA seeks foreign funding in agri sector investments
- BSP to revise rules on selection of external auditors
- SEC tightens beneficial ownership policies
- Tupperware Brands files for bankruptcy
- Government urged to assist online sellers in BIR registration
- NGO launches waste management initiative to combat plastic pollution
- Lawyer suspended for notarizing document while signatory was abroad
- Pimentel opposes bill outlining VAT refund for tourists
II. BIR CLARIFIES THE TAXABILITY OF MEDICAL ALLOWANCE FOR QUALIFIED GOVERNMENT EMPLOYEES
Revenue Memorandum Circular (RMC) No. 107-2024 issued on September 16, 2024, clarifies the taxability of medical allowance for qualified government civilian personnel. The premium payments made to Health Maintenance Organization (HMO) providers pursuant to EO No. 64, series of 2024, are exempt from income tax and consequently, to withholding tax pursuant to Section 2.78. I(A)(3) of RR No. 2-98, as amended However, medical benefits exceeding Php 10,000, classified as “other benefits,” are subject to the Php 90,000 13th month pay tax-exempt ceiling. Any amount that exceeds this threshold shall be subject to income tax and the corresponding withholding tax on compensation.
III. COURT OF TAX APPEALS CASES
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[WHAT DETERMINES THE JURISDICTION OF THE COURT IS THE NATURE OF THE ACTION PLEADED AS APPEARING FROM THE ALLEGATIONS IN THE COMPLAINT] [THE CLAIM IS CONSIDERED CAPABLE OF PECUNIARY ESTIMATION IF IT IS PRIMARILY FOR THE RECOVERY OF A SUM OF MONEY & WHETHER JURISDICTION IS IN THE MUNICIPAL OR REGIONAL COURTS WOULD DEPEND ON THE AMOUNT OF THE CLAIM] [THE JURISDICTION TO DECIDE APPEALS UNDER SECTION 195 OF THE LGC DEPENDS ON THE AMOUNT OF LOCAL TAXES, FEES, OR CHARGES SUBJECT OF THE NOTICE OF ASSESSMENT ISSUED BY THE LOCAL TREASURER]
Petitioner Tricor Management & Development Corporation filed a Petition for Review praying that a judgment be rendered setting aside the assailed orders of the Regional Trial Court (RTC), Branch 19 of Cebu City, one of which is the dismissal of the Petitioner’s complaint on the jurisdictional ground. The Petitioner argued that the RTC has jurisdiction over the case as the sole issue is the propriety of the deficiency tax assessment, irrespective of the tax assessed, and thus, the action is one incapable of pecuniary estimation. On the other hand, respondents Cebu City Government and Office of The City Treasurer asserted that contrary to the Petitioner’s protest, the instant action is capable of pecuniary estimation because the principal relief sought is an appeal from the assessment for the payment of additional business taxes and charges, including surcharge, interest and penalty for taxable year (TY) 2020. In ruling, the Court cited the Supreme Court ruling in China Banking Corporation vs. City Treasurer of Manila, citing the case of Luz R. Yamane vs. BA Lepanto Condominium Corporation, which provides that that with the enactment of Republic Act (R.A.) No. 9282, the authority of the RTC to exercise either original or appellate jurisdiction over local tax cases depends on the amount of the claim. Considering that the total amount of local business taxes, fees, and charges subject of the Letter of Assessment (Final Demand) dated October 5, 2022, issued by the Petitioner to the Respondents for TY 2020 does not exceed the jurisdictional threshold of two million (Php 2,000,000) for RTCs, the RTC of Cebu City, Branch 19 did not err in ruling that it has no jurisdiction to take cognizance of the appeal filed by the Petitioner. Thus, the Petition was DENIED for lack of merit. [TRICOR MANAGEMENT & DEVELOPMENT CORPORATION VS. CEBU CITY GOVERNMENT AND OFFICE OF THE CITY TREASURER, CTA AC NO. 299, AUGUST 22, 2024]
[THE CLASSIFICATION IS NOT LIMITED TO EXISTING CONDITIONS & APPLIES EQUALLY TO ALL MEMBERS OF THE SAME CLASS OF NON-LIFE INSURANCE] [LIFE INSURANCE & NON-LIFE INSURANCE DIFFER SIGNIFICANTLY, WARRANTING DISTINCT TAXATION] [FINDING NO VIOLATION OF EQUAL PROTECTION OR TAX UNIFORMITY, THE COURT SEES NO REASON TO HALT THE IMPLEMENTATION OF THE PROVISIONS]
Petitioner Standard Insurance Co. Inc. filed a Petition for Certiorari assailing the constitutionality of imposition of 12% Value-Added Tax (VAT) and 12.5% Documentary Stamp Tax (DST) on non-life insurance premiums. The Petitioner argued that constitutional challenges require: (a) an actual case or controversy; (b) standing to challenge; (c) timely raising of the issue; and (d) constitutionality as the central issue. The Petitioner asserted that provisions violate constitutional rights to equal protection and uniform taxation due to changed circumstances, warranting the application of “relative unconstitutionality.” On the other hand, the Respondent insisted that the Petitioner failed to meet the requirements for judicial review, as there is no actual case or controversy, and the issue of constitutionality is not the central matter of the case. In ruling, the Petition has satisfied the requisites for judicial review. Furthermore, equal protection is not violated by a law with reasonable classification, which must: (1) have substantial distinction; (2) relate to the law’s purpose; (3) not be limited to current conditions; and (4) apply equally within the same class. The components of life insurance substantially differ from those of non-life insurance. The Premium Tax on insurance policies consists of a taxable savings portion, disadvantaging them compared to bank savings, where only interest income is taxed. Reducing the Premium Tax would help address this unequal tax treatment. Absent a clear breach of the Constitution showing that the classification between life and non-life insurance was unreasonable, capricious, or unfounded, the Court finds no reason to impede the continued implementation of the assailed provisions. Consequently, the Petition was DENIED for lack of merit. [STANDARD INSURANCE CO INC VS. CIR CTA CASE NO. SCA-0009, AUGUST 22, 2024]
FDA creates task force to enhance medical devices regulation [GMA News Online, September 26, 2024]
The Task Force Obsidian was established to help stakeholders identify the proper classification of medical devices submitted for FDA approval, including items such as stethoscopes, surgical scissors, syringes, ventilators, surgical masks, and gloves.
Marcos signs agri economic sabotage bill into law [GMA News Online, September 26, 2024]
Under the new law, agricultural hoarding will be considered economic sabotage if a person or combination of persons is in possession of stocks of agricultural and fishery products in excess of 30% of their normal inventory level two weeks after the declaration of an abnormal situation, an emergency, or a state of calamity.
Lemon Law not exclusive remedy to new but defective vehicles, says SC [GMA News Online, September 25, 2024]
In a 15-page decision, the High Court found that consumers may avail remedies under the Philippine Lemon Law, the Consumer Act, or any other applicable law for their defective vehicles.
PH gov’t to sell Semirara shares, Mile Long, other assets [GMA News Online, September 25, 2024]
Among the government assets for disposal were the Star City property, shares in Semirara Mining Corporation, Mile Long Building, shares in United Coconut Chemicals Inc., Elorde Sports, and Tourism Development Corp., and condominium units in the Atrium compound in Makati City.
PH sold 24.9 tonnes of gold in H1 2024; part of strategy, says BSP [GMA News Online, September 24, 2024]
“The BSP took advantage of the higher prices of gold in the market and generated additional income without compromising the primary objectives for holding gold, which are insurance and safety,” the central bank said in an emailed statement.
First Pacific sees Maya turning profitable this year [The Philippine Star, September 24, 2024]
Hong Kong-based investment holding firm First Pacific Co. Ltd., a company led by business titan Manuel V. Pangilinan, is seeing a profitable year for fintech platform Maya.
https://www.philstar.com/business/2024/09/24/2387433/first-pacific-sees-maya-turning-profitable-year
Delayed priority measure on PH seafarers’ charter signed into law [Philippine Daily Inquirer, September 24, 2024]
The President last year certified this measure as urgent after more than 50,000 Filipino seafarers working in European vessels almost lost their jobs because of their repeated failure to pass the standards set by European maritime authorities.
SEC: Another amnesty set for delinquent firms [The Philippine Star September 23, 2024]
The SEC said corporations that incurred fines and penalties for the late or non-filing of their annual financial statements (AFS), general information sheets (GIS) as well as for noncompliance with the requirement of designating and submitting official and alternative mobile phone numbers and email addresses for their transactions, can get back their good standing for only P20,000 under the Enhanced Compliance Incentive Plan (ECIP).
https://www.philstar.com/business/2024/09/23/2387188/sec-another-amnesty-set-delinquent-firms
Lopez group building retail center at Batangas ecozone [Philippine Daily Inquirer, September 23, 2024]
The company held on Sept. 10 a groundbreaking ceremony for the FPIP Plaza, which the firm said would house various retail establishments, restaurants, service centers, corporate offices and government offices.
https://business.inquirer.net/481741/lopez-group-building-retail-center-at-batangas-ecozone
Hotels still sprouting in Boracay, but it’s no longer developers’ fave [Philippine Daily Inquirer, September 23, 2024]
In its Philippine Hotel Pipeline Report, real estate brokerage firm Leechiu Property Consultants observed a “diverse range” of locations for upcoming accommodation developments in the country, cornering a total of P250 billion in investments in the next five years.
Honda mulls e-motorcycle production [The Philippine Star, September 23, 2024]
Motorcycle manufacturer Honda Philippines Inc. may consider producing electric motorcycles locally if the government will provide incentives, according to a company official.
https://www.philstar.com/business/2024/09/23/2387180/honda-mulls-e-motorcycle-production
Armscor eyes new manufacturing plant in Rizal in next 2 years [Philippine Daily Inquirer, September 23, 2024]
Local firearms manufacturer Armscor Global Defense Inc. (AGDI) said it has plans to establish a new manufacturing facility in Rizal possibly in the next two years.
https://business.inquirer.net/481828/armscor-eyeing-new-manufacturing-plant-in-rizal-in-next-2-years
Malacañang announces new appointees to various gov’t agencies [GMA News Online, September 23, 2024]
President Ferdinand Marcos Jr. on Monday announced the latest appointees to various posts in different government agencies.
Bishops declare ‘climate emergency’ in South Cotabato, Sarangani [Philippine Daily Inquirer, September 23, 2024]
The Diocese of Marbel covers the provinces of South Cotabato (including the mining towns of Tampakan and Lake Sebu) and Sarangani, and the cities of Koronadal and General Santos.
https://newsinfo.inquirer.net/1985837/bishops-declare-climate-emergency-in-south-cotabato-sarangani
Gwen: HSBC loan private, unrelated to government [SunStar Cebu, September 20, 2024]
AFTER returning from a two-week international trip, Cebu Gov. Gwendolyn Garcia addressed the ongoing controversy regarding her debt with Hong Kong Shanghai Banking Corp. (HSBC), as she reiterated that the issue pertains to her as a private individual and an entrepreneur and not her role as governor.
https://www.sunstar.com.ph/cebu/guv-hsbc-loan-private-unrelated-to-govt
DOF touts to Singapore firms perks under Create More bill [Philippine Daily Inquirer, September 20, 2024]
The finance chief said that the amendments that come with the bill, which is expected to become law within the year, will enhance both fiscal and nonfiscal incentives, resolve key investor concerns and respond to emerging global developments.
https://business.inquirer.net/481127/dof-touts-to-singapore-firms-perks-under-create-more-bill
Oil firm sounds alarm on investment scam using its brand [interaksyon, September 20, 2024]
Shell Philippines on Thursday, September 19, raised awareness about a website impersonating them with the name “shellsss.com.
US court OKs PLDT’s settlement of lawsuits; to pay $3M [Philippine Daily Inquirer, September 19, 2024]
To recall, the lawsuits were filed by disgruntled investors who claimed financial losses stemming from PLDT’s P48-budget overrun in 2022.
https://business.inquirer.net/480876/us-court-oks-pldts-settlement-of-lawsuits-to-pay-3m
Graft complaint filed vs. BCDA, CDC, DENR execs over closure of Tarlac landfill [GMA News Online, September 19, 2024]
“Simply put, acting in conspiracy with one another, public respondents disregarded the sanctity of the lease between CDC and complainant MCWMC over the 100-hectare area which is the site of the Kalangitan Landfill and have performed overt acts to realize their sinister design of unlawfully evicting MCMW from the leased area to favor certain companies also engaged in waste management,” the complaint read.
Maynilad unit upgrades Legazpi water treatment plant [The Philippine Star, September 19, 2024]
Philippine Hydro Inc. (PhilHydro), a wholly owned subsidiary of Maynilad Water Services Inc., spent P50 million to upgrade its Legazpi City Water Treatment Plant in Albay, which produces potable water supply for some 22,000 households in the area.
Davao solar rooftop project gets BOI perks [Philippine Daily Inquirer, September 19, 2024]
The BOI said the Nakashin Davao International Inc.’s P26-million solar photovoltaic rooftop system project at the firm’s manufacturing facility was covered under tier 1 of the 2022 Strategic Investment Priority Plan (SIPP).
https://business.inquirer.net/480946/davao-solar-rooftop-project-gets-boi-perks
BIR cuts floor price for cigarettes, vape products [The Philippine Star, September 19, 2024]
Floor price is the minimum retail price set by the BIR taking into account the sum of the products’ excise tax, value-added tax (VAT) and reasonable production cost.
https://www.philstar.com/business/2024/09/19/2386241/bir-cuts-floor-price-cigarettes-vape-products
DA seeks foreign funding in agri sector investments [GMA News Online, September 19, 2024]
Tiu Laurel said the DA recognizes that the government has limited resources to undertake major projects such as seaports, roads and bridges, and irrigation that are needed to modernize agriculture and improve the income of farmers and fishermen.
BSP to revise rules on selection of external auditors [The Philippine Star, September 18, 2024]
Lead partners and the engagement quality control reviewers of audit firms should be included in the list of selected external auditors as well. They will also be subject to the same requirements of the BSP.
https://www.philstar.com/business/2024/09/18/2385984/bsp-revise-rules-selection-external-auditors
SEC tightens beneficial ownership policies [The Philippine Star, September 18, 2024]
Among the initiatives in the past years are workshop and discussions focusing on the use cases of beneficial ownership information in preventing and investigating corruption as well on the use of beneficial ownership data in public procurement and enhancing tax integrity.
https://www.philstar.com/business/2024/09/18/2385980/sec-tightens-beneficial-ownership-policies
Tupperware Brands files for bankruptcy [The Manila Times, September 18, 2024]
Tupperware Brands Inc and some of its subsidiaries filed for Chapter 11 bankruptcy protection on Tuesday, the food container firm said in a statement.
Government urged to assist online sellers in BIR registration [The Philippine Star, September 17, 2024]
Nick Conti, convenor of Click party-list and CEO of think tank Capstone-Intel Corp., said the BIR should also address concerns of online traders of red tape and unhelpful BIR employees in their field offices while they launch aggressive measures to enforce registration regulations for online enterprises.
NGO launches waste management initiative to combat plastic pollution [interaksyon, September 17, 2024]
Non-profit organization PCX Markets created a multi-pronged solution called “credits,” encouraging private sector investment in waste management infrastructure to battle global plastic pollution.
Lawyer suspended for notarizing document while signatory was abroad [The Philippine Star, September 16, 2024]
The Supreme Court on Monday, September 16 said it suspended a lawyer after he forged his client’s signature and notarized a special power or attorney despite his client being out of the country.
Pimentel opposes bill outlining VAT refund for tourists [Inquire.net, September 16, 2024]
It was Senate Minority Leader Aquilino “Koko” Pimentel III who expressed his opposition to Senate Bill No. 2415 under Committee Report No. 106, noting that the measure lacks “assurance that it would surely boost the economy.”
https://newsinfo.inquirer.net/1983858/pimentel-opposes-bill-outlining-vat-refund-for-tourists
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