New wage set for Central Luzon
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [OCTOBER 4-10]
- DEPARTMENT OF JUSTICE LEGAL OPINION ON PWDs
- COURT OF TAX APPEALS CASES
I. TAX & BUSINESS-RELATED NEWS [OCTOBER 4-10]
- Palace suspends gov’t work, classes in Manila, Pasay on Oct 14-15
- 7-Eleven owner confirms new takeover offer from Couche-Tard
- BPI gets Bangko Sentral nod on selling stake in GoTyme
- SC sides with majority owners in Gloria Maris trademark case
- UP Manila seeks partners to commercialize ampalaya pill for diabetes
- Capas court extends TRO vs. CDC, BCDA over Kalangitan landfill closure
- Tinga wants Taguig ordinance invalidated
- Banks trim real estate exposure
- How UP mathematicians detect potential stock market crashes
- Heart Evangelista brings in over $5M estimated media value after 15 Paris Fashion Week shows
- Privacy concerns emerge as ride-hailing drivers post passengers’ pics, info
- Mall owners contest Dagupan mayoral race
- Marcos signs law to revitalize country’s defense industry
- Push for wealth tax resurfaces
- P250B worth of hotel projects to be added to PHL inventory in coming years
- Refined sugar imports plunge to 66,325 MT
- New SEC guidelines seen to power up energy sector
- Cebu Pacific buys out Ayala airline for P1.75 billion
- Global investment firm injects P2.52B into Phinma education arm
- Converge’s Dennis Uy seeks takeover of PH’s air traffic system
- Solo parents now entitled to free PhilHealth coverage
- Hontiveros: Joint venture for 2025 poll system violated procurement laws
- LIST: 6 Philippine hotels make it in the Michelin Guide
- New wage set for Central Luzon
- Aboitz firm gets 4th economic zone
- SC affirms RTC jurisdiction over wills probated abroad
- Marcos appoints new Ombudsman special prosecutor, other officials
- DOH gets complaints vs Valenzuela hospital for detaining patients’ kin
- Napocor arrears might cause brownouts, says Catanduanes utility
- IT-BPM firms urge repeal of cross-border taxes
II. DOJ OPINION
PWD EXPRESS OR PRIORITY LANES APPLY TO ALL ESTABLISHMENTS & TRANSACTIONS, NOT JUST FOR ESSENTIAL GOODS OR SERVICES
The National Council on Disability Affairs (NCDA) is requesting an opinion on whether implementation of express lanes or priority for Persons with Disabilities (PWDs), specifically, on whether the same only applies to necessities and not leisure; and whether establishments may bypass express lanes or priority for PWDs for limited-quantity items. The NCDA is of the position that the express lane or priority for PWDs is a privilege, not a right, and should not infringe on the rights of others, as doing so could result in unequal treatment for able-bodied individuals, conflicting with the Equal Protection Clause. In reply, the Department of Justice (DOJ) referred to Section 10 of the Implementing Rules and Regulations (IRR) of R.A. No. 10754, or the Magna Carta for PWD, which mandates that express lanes or priority for PWDs must be provided in all commercial and government establishments, without exception. If express lanes are not available, PWDs should be given priority in all transactions. The use of the word “all” in the law is comprehensive and applies to all establishments and transactions, regardless of the type of goods or services offered. Furthermore, the Supreme Court has emphasized that the Equal Protection Clause allows for valid classifications, such as those for PWDs, which have a rational basis and are not arbitrary. This special treatment for PWDs is justified by the law’s purpose of promoting their rehabilitation, self-development, and self-reliance. Thus, Congress may enact laws that provide different treatment to PWDs, which meets the requirements of Equal Protection. [DEPARTMENT OF JUSTICE OPINION NO. 42 SERIES OF 2024, SEPTEMBER 19, 2024]
III. CTA CASES DIGEST
[INDIVIDUALS NOT LISTED AMONG THE TAXPAYER’S EMPLOYEES ARE CONSIDERED UNAUTHORIZED REPRESENTATIVES OF THE TAXPAYER] [DUE PROCESS WAS VIOLATED WHEN THE BIR FAILED TO FULLY INFORM THE TAXPAYER OF THE LEGAL & FACTUAL BASIS FOR THE ASSESSMENT, RENDERING THE ASSESSMENT NULL & VOID]
Petitioner Toasterlever Inc. filed a Petition for Review praying for the cancellation of the assessments and the Warrant of Distraint and Levy (WDL) issued by the Respondent Commissioner of Internal Revenue (CIR). Petitioner claims it did not receive the Notice for Informal Conference (NIC), Preliminary Assessment Notice (PAN), or Final Assessment Notice (FAN), as these were received by individuals who were not authorized representatives or employees of the Petitioner. The Petitioner argued that its explanations and supporting documents were rejected by the Respondent without justification, as reflected in the identical content of the PAN and FAN. On the other hand, the Respondent asserted that the Petition was filed beyond the 30-day period from receipt of the WDL. Likewise, due process was followed in serving the Letter of Authority (LOA), NIC, PAN, and FAN to registered employees of the Petitioner, as evidenced by the Affidavit of Service. In ruling, the time for filing and service of pleadings during the period is suspended and resumed after seven (7) calendar days counted from the first day of the physical reopening of the court in accordance with the Supreme Court Administrative Circular No. 83-2021. Since the court reopened on October 20, 2021, the Petition for Review filed on October 27, 2021, is considered timely. In addition, Section 3.1.6 of Revenue Regulations (RR) No. 18-2013 states that notices may be served personally to the party, and if personal service is impractical due to the party’s absence at their registered address, notice may be served by substituted service to their clerk or another person having charge. The Court agrees that the notices were received by individuals who are not authorized representatives of the Petitioner, as they are not listed among the Petitioner’s employees. Moreover, citing the case of Avon Products Manufacturing, Inc. vs. CIR, the Court declared the FAN/FLD null and void due to the BIR’s complete disregard for due process when it failed to fully inform the taxpayer of the legal and factual basis for the assessment, despite the latter’s defenses and submission of supporting documents pursuant to Section 228 of the Tax Code. Like the Avon case, there was no discussion in the FLD about the Respondent’s findings and the reasons for rejecting the Petitioner’s refutations and explanations against the PAN. Thus, the Petitioner was left unaware of how the Respondent or his authorized representative appreciated its explanations or defenses. Applying the ruling in Avon, there is no question that the Respondent’s disregard of the due process standards, and his failure to sufficiently inform the Petitioner of the reasons for his conclusions, render the subject assessment, null and void. Hence, the Petition was GRANTED, and the assessments were declared VOID. Consequently, the WDL was CANCELLED. [TOASTERLEVER, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10646, SEPTEMBER 23, 2024]
[PROOF OF ACTUAL REMITTANCE TO THE BIR OF THE TAXES WITHHELD IS NOT INDISPENSABLE IN CLAIMS FOR REFUND OR ISSUANCE OF TAX CREDIT CERTIFICATE] [BY SELECTING “TO BE REFUNDED” IN THE ANNUAL ITR & CARRYING OVER ONLY THE PRIOR YEAR’S EXCESS CREDITS, THE CLAIMED CWT MAY BE ELIGIBLE FOR A REFUND]
Petitioner Global Energy Supply Corporation filed a Petition for Review seeking a refund of alleged unutilized and excess creditable withholding tax (CWT). The Petitioner asserts that the refund claim was filed within the two-year prescriptive period, supported by Certificates of Creditable Withholding Tax (CWT) and that the income and CWT were reported in its 2019 Income Tax Returns (ITR) without being carried over to subsequent periods. On the other hand, the Respondent Commissioner of Internal Revenue (CIR) argues that the Petitioner failed to provide evidence linking CWT to declared income in the ITR, did not prove tax remittance, and did not comply with Revenue Memorandum Order (RMO) No. 52-98 and Revenue Regulations (RR) No. 2-2006, rendering the refund claim invalid and unsubstantiated. In ruling, the Court held that the proof of actual remittance to the BIR of the taxes withheld is not indispensable in claims for refund. In addition, considering that the Petitioner opted for a refund by marking the box corresponding to the option “To be refunded” in its Annual ITR for the Taxable Year (TY) 2019, and carried over only the amount of the prior year’s excess credits in its Quarterly ITR for the first quarter of TY 2020 and 2020 Annual ITR, the claimed CWT for TY 2019 may be a proper subject of a claim for credit or refund, pursuant to Section 76 of the Tax Code. Furthermore, the Petitioner’s administrative and judicial claims were filed within the two-year prescriptive period from the 2019 Annual ITR filing, with withholding established through the submission of the relevant BIR Forms 2307. However, out of the total CWT previously determined to be properly supported by BIR Forms 2307, only a portion corresponding to the income payments verified to be included in the Petitioner’s taxable gross income in its 2019 Annual ITR should be granted. Consequently, the Petition was PARTIALLY GRANTED. [GLOBAL ENERGY SUPPLY CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10871, SEPTEMBER 20, 2024]
Palace suspends gov’t work, classes in Manila, Pasay on Oct 14-15 [Inquirer.Net, October 10, 2024]
Work in government offices and classes at all levels in the cities of Manila and Pasay were ordered suspended on October 14 and 15, in time for the opening of the Asia-Pacific Ministerial Conference on Disaster Risk Reduction (APMCDRR), Malacañang said on Thursday.
https://newsinfo.inquirer.net/1991529/palace-suspends-govt-work-classes-in-manila-pasay-on-oct-14-15
7-Eleven owner confirms new takeover offer from Couche-Tard [The Philippine Star, October 10, 2024]
The Japanese owner of 7-Eleven said on Wednesday it had received a “revised” takeover offer from Canadian rival Alimentation Couche-Tard after rejecting an initial bid worth around $40 billion.
BPI gets Bangko Sentral nod on selling stake in GoTyme [ABS-CBN News, October 10, 2024]
BPI said the sale is intended to address any potential conflict of interest created by the significant overlap in and similarity of product offerings of GoTyme Bank and BPI.
SC sides with majority owners in Gloria Maris trademark case [GMA News Online, October 9, 2024]
“It was bad faith on Lim’s part to reap the fruits of the goodwill built by the Gloria Maris brand when he registered the subject marks in his own name. Obviously, it was the corporation as a whole that built and established the brand,” the SC said in the decision penned by Associate Justice Maria Filomena Singh.
UP Manila seeks partners to commercialize ampalaya pill for diabetes [ABS-CBN News, October 9, 2024]
UP Manila’s Institute of Herbal Medicine (IHM) announced last week the development of its “game changer” ampalaya tablet that completed Phase 3 clinical trials and was proven to lower blood sugar levels.
Capas court extends TRO vs. CDC, BCDA over Kalangitan landfill closure [GMA News Online, October 9, 2024]
The court enjoined employees of the CDC or BCDA from forcibly ejecting the MCWM or any of its officers, employees, or representatives from taking over by force or performing any acts leading to a forcible takeover of the Kalangitan landfill.
Tinga wants Taguig ordinance invalidated [The Philippine Star, October 9, 2024]
While Tinga supports the transfer of the embo barangays, he maintained that increasing the number of councilors requires an amendment to the city’s charter, a power vested solely on Congress.
https://qa.philstar.com/nation/2024/10/09/2391109/tinga-wants-taguig-ordinance-invalidated
Banks trim real estate exposure [Philippine Daily Inquirer, October 9, 2024]
Banks’ exposure to the local property sector declined in the second quarter but the proportion of soured home loans remained elevated amid a high-interest rate environment.
https://business.inquirer.net/484055/banks-trim-real-estate-exposure
How UP mathematicians detect potential stock market crashes [GMA News Online, October 8, 2024]
Topological data analysis (TDA), which finds patterns in large datasets, was utilized by Ela Mae Riñon and Dr. Rachelle Sambayan of the UP Diliman College of Science Institute of Mathematics to predict when the stock market was about to crash.
Heart Evangelista brings in over $5M estimated media value after 15 Paris Fashion Week shows [The Philippine Star, October 8, 2024]
Among brands, Lefty said the top earners in terms of EMV were Dior, Yves Saint Laurent, Chanel, Louis Vuitton, and Miu Miu, a majority of those attended by Heart.
Privacy concerns emerge as ride-hailing drivers post passengers’ pics, info [interaskyson, October 8, 2024]
The Redditor said they were looking for customer reviews about inDrive to determine if the transport network vehicle service (TNVS) is reliable when they saw those social media posts.
Mall owners contest Dagupan mayoral race [The Manila Times, October 8, 2024]
Lim owns the Magic Group of Companies, which operates malls and supermarkets in Pangasinan and La Union province while Fernandez owns the CSI Group of Companies, also an operator of malls in the province.
https://www.manilatimes.net/2024/10/08/regions/mall-owners-contest-dagupan-mayoral-race/1980063
Marcos signs law to revitalize country’s defense industry [interaksyon, October 8, 2024]
To promote and encourage investments in the country’s defense technology and production, the new self-reliant defense law will offer fiscal incentives ranging from tax breaks and government-backed financing, Marcos said.
Push for wealth tax resurfaces [The Philippine Star, October 8, 2024]
The proposal to tax the wealthy population has resurfaced again after the government imposed a value-added tax (VAT) on foreign digital service providers which would hit Filipino consumers anew.
https://www.philstar.com/business/2024/10/08/2390832/push-wealth-tax-resurfaces
P250B worth of hotel projects to be added to PHL inventory in coming years [GMA News Online, October 8, 2024]
According to LPC, more than half or 54% of the national pipeline keys will be built by the top 10 hotel developers, led by DoubleDragon Corp. with 4,324 keys; followed by Megaworld Hotels and Resorts with 3,889 keys; and Hann Philippines Inc. with 2,850 keys.
Refined sugar imports plunge to 66,325 MT [The Manila Times, October 8, 2024]
IMPORTED refined sugar dramatically dropped to 66,325 metric tons (MT) from the 730,430 MT a year earlier, as raw sugar stocks from 2023 remain at a comfortable level, according to data from the Foreign Agricultural Service of the United States Department of Agriculture (FAS-USDA) in Manila.
New SEC guidelines seen to power up energy sector [The Philippine Star, October 8, 2024]
SEC Commissioner Javey Paul Francisco said the commission, as the national regulatory agency mandated to regulate the capital market, is “bringing a potent source of financing closer to energy companies” through regulations such as the Securing and Expanding Capital for PowerGen Operators and Wholesale Electricity and Retail Services (SEC POWERS).
https://www.philstar.com/business/2024/10/08/2390826/new-sec-guidelines-seen-power-energy-sector
Cebu Pacific buys out Ayala airline for P1.75 billion [The Philippine Star, October 7, 2024]
Although Cebu Pacific is taking over AirSWIFT, ALI Capital will remain owner and operator of the Lio Airport in El Nido.
Global investment firm injects P2.52B into Phinma education arm [Philippine Daily Inquirer, October 7, 2024]
At the same time, Phinma said funds managed by KKR would buy all the shares currently held by Asian Development Bank, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. and Kaisenvest II in Phinma Education. These companies will no longer hold any shares after the transactions.
https://business.inquirer.net/483773/global-investment-firm-injects-p2-52b-into-phinma-education-arm
Converge’s Dennis Uy seeks takeover of PH’s air traffic system [GMA News Online, October 7, 2024]
In a chance interview with reporters at Cebu Pacific’s Gala last week, Transportation Secretary Jaime Bautista said that Uy’s ComClark Network and Technology Corp. (ComClark) has submitted an unsolicited proposal, through the Private Public Partnership (PPP) Center, to take over the operations of the country’s communications, navigation, surveillance/air traffic management system (CNS/ATM).
Solo parents now entitled to free PhilHealth coverage [The Philippine Star, October 7, 2024]
In Circular 2024-0020, PhilHealth said the Expanded Solo Parents Welfare Act or Republic Act 11861 provides for automatic inclusion of solo parents and their children to the National Health Insurance Program.
Hontiveros: Joint venture for 2025 poll system violated procurement laws [GMA News Online, October 7, 2024]
Hontiveros made the statement as she reiterated that St. Timothy Construction Corporation (STCC), the firm that backed out from the Miru Systems-led joint venture, has links to a company that was supposedly blacklisted by the Department of Public Works and Highways.
LIST: 6 Philippine hotels make it in the Michelin Guide [The Philippine Star, October 7, 2024]
This year, six distinguished establishments from the Philippines have earned a coveted spot on this prestigious list, offering discerning travelers a curated selection of accommodations that embody luxury and exceptional service.
https://philstarlife.com/living/691506-list-6-philippine-hotels-make-michelin-guide?page=2
New wage set for Central Luzon [The Philippine Star, October 6, 2024]
Wage Order RBIII-25 mandates a P50 to P66 increase in the daily minimum wage of workers in private establishments in the region.
https://qa.philstar.com/nation/2024/10/06/2390526/new-wage-set-central-luzon
Aboitz firm gets 4th economic zone [Philippine Daily Inquirer, October 6, 2024]
Proclamation No. 701 created a new economic zone in Barangay Lourdes, Tarlac City, to be known as Tari Estate, upon the recommendation of the Philippine Economic Zone Authority.
https://newsinfo.inquirer.net/1990222/aboitz-firm-gets-4th-economic-zone
SC affirms RTC jurisdiction over wills probated abroad [The Philippine Star, October 6, 2024]
The Supreme Court (SC) has clarified the jurisdiction of regional trial courts over wills validated in foreign countries, ruling that RTCs have the authority to handle reprobate proceedings involving foreign probated wills.
Marcos appoints new Ombudsman special prosecutor, other officials [GMA News Online, October 5, 2024]
President Ferdinand Marcos Jr. has appointed a new Special Prosecutor of the Office of the Ombudsman, the independent government body tasked with prosecuting graft cases against high government officials.
DOH gets complaints vs Valenzuela hospital for detaining patients’ kin [Philippine Daily Inquirer, October 5, 2024]
The Department of Health (DOH) on Friday said it had acknowledged four complaints of unlawful detention of relatives of patients with outstanding bills at a private hospital in Valenzuela City.
Napocor arrears might cause brownouts, says Catanduanes utility [Philippine Daily Inquirer, October 5, 2024]
Sunwest Water and Electric Co., Inc. (Suweco) is scaling down its operations due to an issue involving alleged “overdue” payment of the National Power Corp. (Napocor), a development that could trigger rotational brownouts in Catanduanes.
https://business.inquirer.net/483476/napocor-arrears-might-cause-brownouts-says-catanduanes-utility
IT-BPM firms urge repeal of cross-border taxes [Philippine Daily Inquirer, October 4, 2024]
IT & Business Process Association of the Philippines, Inc. (IBPAP) chief operating officer Celeste Ilagan said they are “very concerned” about Revenue Memorandum Circular (RMC) 5-2024, which the Bureau of Internal Revenue (BIR) released in January, as it mandates a 25 percent withholding tax and 12 percent value-added tax (VAT) on business entities providing cross-border services.
https://business.inquirer.net/483432/it-bpm-firms-urge-repeal-of-cross-border-taxes
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