Meralco to refund P16 billion to consumers
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [OCTOBER 23-30]
- BIR EXTENDS THE DEADLINE FOR THE FILING OF TAX RETURNS FOR TAXPAYERS COURT OF TAX APPEALS CASES
- COURT OF TAX APPEALS CASES
I. TAX & BUSINESS-RELATED NEWS [OCTOBER 23-30]
- Meralco to refund P16 billion to consumers
- Marcos wants flexible payment options on electricity bills
- DA to invest P2 billion to perk up Philippines coffee output
- Region VI minimum wage earners, kasambahays to receive higher pay starting November
- Cordillera workers to receive pay hike
- Court approves Tupperware’s sale to lenders
- SC issues TRO vs transfer of PhilHealth funds to National Treasury
- Romualdez firm eyes MVP Group’s radio assets
- BCDA still finalizing plans to re-develop Market! Market!
- Marcos picks news BCDA board chairman
- DTI eyeing November launch of Alibaba-inspired B2B platform
- San Miguel unit takes over operations of Sual power plant
- Phinma all set for up to P1 billion SRO next month
- PH, US, Japan agree vs ‘economic coercion’
- DOJ tells DepEd: PEAC is still a private entity
- LTO defers new rules, fines for unregistered sale of used vehicles
- Angeles court junks Tarlac landfill operator’s bid to extend contract
- Marcos expected to sign CREATE MORE bill on Nov. 11 – Escudero
- Reuse, repair, recycle: Uniqlo offers embroidery services to promote circular fashion
- Visa-free countries, boutique hotels among top Asian travel trends
- New Ayala hotel brand in the works
II. BIR EXTENDS THE DEADLINE FOR THE FILING OF TAX RETURNS FOR TAXPAYERS AFFECTED BY TYPHOON “KRISTINE”
Revenue Memorandum Circular (RMC) No. 119-2024, dated October 25, 2024, extends the deadline for the filing of tax returns, payment of taxes due, and submission of required documents originally due on October 25, 2024, to October 31, 2024. The extension was made due to the bad weather condition caused by Typhoon “Kristne”, thus, resulting in the suspension of government work in Luzon on October 23, 24, and 25, 2024. The circular clarifies the covered returns, reports, and BIR offices.
III. COURT OF TAX APPEALS CASES
FOR PURPOSES OF SITUS OF LOCAL BUSINESS TAX, FINANCIAL INSTITUTIONS RECORDING THEIR SALES AT THEIR BRANCH OR SALES OUTLET MUST PAY TAXES TO THE MUNICIPALITY WHERE THE OUTLET IS LOCATED
Petitioner Toyota Financial Services Philippines Corporation filed a Petition for Review seeking the reversal of the Davao City Regional Trial Court (RTC)’s decision sustaining the Respondent City Treasurer of Davao’s assessment for alleged deficiency taxes and fees for years 2009 to 2018. The Petitioner argued that the RTC incorrectly relied on the definition of “doing business” under Republic Act (R.A.) No. 7042, which applies only to foreign entities, not financial institutions governed by the General Banking Act. The Petitioner asserted that the Local Government Code (LGC) should apply, defining “doing business” as engaging in trade or commercial activity regularly with a view to profit. It claimed that it was not doing business in Davao since it is only operating a lending desk in Davao and actively soliciting clients at the Toyota dealership. Additionally, the LGC and Revenue Code of Davao state that the situs of Local Business Tax (LBT) is based on the place where sales are made and recorded, which was in Makati City. On the other hand, the Respondent countered that the Petitioner is liable for tax assessments under the Revenue Code of Davao City, which defines “doing business” to include “the solicitation of orders.” In ruling, the Court held that the RTC erred in applying R.A. No. 7042 pointing that Sec. 131(d) of the LGC should apply. The Petitioner is engaged in business, noting that it admitted to operating a “lending desk” and accepting loan applications to earn profits. However, it should not pay the assessed taxes since Davao City is not the situs of the taxes payable. Sec 150 of the LGC states that for tax collection, financial institutions and businesses must record sales at their branch or sales outlet, with taxes paid to the municipality where the outlet is located. If there is no outlet, the sale is recorded at the principal office, and taxes are paid to that municipality. As loan applications do not fall under these definitions, neither do they fall under the coverage of transactions. In this case, sales will be recorded and paid at the principal office in Makati City, where loan applications are processed and approved. Moreover, the Revenue Code of Davao states that the city or municipality listed in the Articles of Incorporation (AOI) or registration papers as the official address or said principal office is considered the situs for tax purposes. Consequently, the Petition was GRANTED resulting in the cancellation of the assessment. [TOYOTA FINANCIAL SERVICES PHILIPPINES CORPORATION VS. CITY OF DAVAO & ERWIN P. ALPARAQUE, IN HIS CAPACITY AS THE ACTING CITY TREASURER OF THE CITY OF DAVAO, CTA AC NO. 280, OCTOBER 15, 2024]
[CONSPIRACY IS NOT PRESUMED; THERE IS CONSPIRACY WHEN TWO OR MORE PERSONS COME TO AN AGREEMENT CONCERNING THE COMMISSION OF A FELONY & DECIDE TO COMMIT IT] [A CTA CRIMINAL CASE ACQUITTING THE ACCUSED FOR FAILURE OF THE PROSECUTION TO DISCHARGE ITS BURDEN TO PROVE BEYOND REASONABLE DOUBT THAT ACCUSED VIOLATED SECTION 254 OF THE TAX CODE] [A DEFECTIVE NOTARIZATION WILL STRIP THE DOCUMENT OF ITS PUBLIC CHARACTER & REDUCE IT TO A PRIVATE INSTRUMENT]
Accused Alman Gayatin, Andy Chua, Jimmy Chua and a certain John Doe were charged for violation of Section 254 of the Tax Code of 1997 for willfully evading or defeating any tax due without lawful cause and despite repeated demands to pay the Excise Tax for their cigarette products. Accused Gayatin, for his part, argued that he cannot be held liable since he was neither the owner nor the possessor of the alleged illegal products found in the Alter Trade Property. He further contended that the search and entry of the police officers without a valid search warrant is void and unlawful, thus, all things, goods, or items seized or obtained during the said illegal search are considered fruits of a poisonous tree and are inadmissible in any proceedings. The Plaintiff, on the other hand, claimed that the Accused employed an unscrupulous scheme to evade or defeat the payment of Excise Tax on cigarettes by operating surreptitiously. Additionally, there was no document to prove the existence of a Lease Contract except the forged documents, which the Accused presented as an after-thought to escape criminal liabilities. In ruling, the Court cited the Supreme Court case of CIR vs. The Estate of Benigno P. Toda, Jr. wherein tax evasion connotes the integration of three (3) factors: (1) the end to be achieved, i.e., the payment of less than that known by the taxpayer to be legally due, or the non-payment of tax when it is shown that a tax is due; (2) an accompanying state of mind which is described as being evil, in bad faith, willful, or deliberate and not accidental; and, (3) a course of action or failure of action which is unlawful. In the case at bar, the Prosecution offered no evidence to prove that Accused Gayatin conspired with the other Accused and acted as principal by indispensable cooperation. It bears stressing that conspiracy must be proven beyond reasonable doubt and is never presumed. Further, the Court finds that there is no clear nexus between the Accused Gayatin and the excisable goods found in his property. Logically, without proof that Accused Gayatin possessed the excisable goods, it cannot be said that he is liable to pay the Excise Tax due thereon. Moreover, it can hardly be said that Accused is attempting to evade or defeat the Excise Tax imposed considering that he has actively participated in the assessment by presenting evidence to support his claim. Thus, Accused Alman Gayatin was ACQUITTED of the crime charged. Further, the case was ARCHIVED, pending the arrest of the Accused Andy Chua, Jimmy Chua and John Doe. [PEOPLE OF THE PHILIPPINES VS. ALMAN GAY A TIN, ANDY CHUA, JIMMY CHUA & JOHN DOE, CTA CRIM NO. O-684, SEPTEMBER 24, 2024]
[IF GENERATION OF REVENUE IS THE PRIMARY PURPOSE & REGULATION IS MERELY INCIDENTAL, THE IMPOSITION IS A TAX; BUT IF REGULATION IS THE PRIMARY PURPOSE, THE FACT THAT REVENUE IS INCIDENTALLY RAISED DOES NOT MAKE THE IMPOSITION A TAX] [BARANGAY MAY ONLY IMPOSE FEES & CHARGES, WHICH SHOULD NOT BE BASED ON THE CAPITAL INVESTMENT OR GROSS SALES OR RECEIPTS OF THE TAXPAYER] [LGC AUTHORIZES THE BARANGAY TO LEVY OTHER FEES & CHARGES ON PLACES OF RECREATION WHICH CHARGE ADMISSION FEES; HOWEVER, SUCH FEE OR CHARGE MAY NOT BE BASED ON GROSS SALES OR RECEIPTS]
Petitioner SM Prime Holdings, Inc. filed a Petition for Review praying for the cancellation of the Assessment Notice issued by the Respondent Barangay 350, Zone 35, District III, City of Manila, which demanded the payment of Amusement Fee in connection with the operation of SM City San Lazaro’s cinema theaters for the year 2018. The Petitioner argued that based on the text of the Barangay Revenue Code, the purpose of the Amusement Fee was to raise revenues rather than to regulate the operation of places of recreation. Further, it asserted that while imposing taxes on places for recreation is outside respondent Barangay 350 authority, the Amusement Fee constituted double taxation and completely replicated the Amusement Taxes that were being imposed by the City of Manila. On the other hand, the Respondent countered that it is only proper that it be allowed by the court to collect the Petitioner the accurate and proper Amusement Fee to defray what has been appropriate for the calendar year, so as not to jeopardize its operation and services to its constituency. In ruling, under Section 152(a) of the Local Government Code (LGC), the barangay is authorized to impose taxes but only on stores or retailers with fixed business establishments with gross sales or receipts of the preceding calendar year of Php 50,000 or less, in the case of cities; and Php 30,000 or less, in the case of municipalities, at a rate not exceeding 1% on such gross sales or receipts. Undeniably, Petitioner, a cinema theater owner/operator, is not a store or retailer with fixed establishment, contemplated under Section 152(a) of the LGC, which may be taxed on its gross sales or receipts as sought by Section 13 of the Barangay Revenue Code. Plainly, the Respondent is not authorized to impose a tax on amusement/recreation establishments. It may only impose fees and charges, which should not be based on capital investment or gross sales or receipts of the taxpayer. In sum, since the subject Amusement Fee, which is veritably a tax, is beyond the authority of Respondent to impose, any exaction based thereon is invalid. Consequently, Section 13 of the Barangay Revenue Code is patently ultra vires. Thus, the Petition was GRANTED and the Assessment Notice demanding payment of amusement fee was CANCELLED. [SM PRIME HOLDINGS, INC. VS. BARANGAY 350, ZONE 35, DISTRICT III, CITY OF MANILA, CTA AC NO. 278, SEPTEMBER 20, 2024]
Meralco to refund P16 billion to consumers [The Philippine Star, October 30, 2024]
He said the refund represents the difference between the actual weighted average price and the maximum average price, or the highest allowable costs that can be charged to consumers.
https://qa.philstar.com/business/2024/10/30/2396211/meralco-refund-p16-billion-consumers
Marcos wants flexible payment options on electricity bills [Inquirer Plus, October 30, 2024]
President Marcos on Tuesday ordered the Energy Regulatory Commission (ERC) to study possible flexible payment options for consumers’ electricity bills in 161 areas placed under a state of calamity.
https://plus.inquirer.net/news/marcos-wants-flexible-payment-options-on-electricity-bills/
DA to invest P2 billion to perk up Philippines coffee output [The Philippine Star, October 30, 2024]
Agriculture Secretary Francisco Tiu Laurel Jr. said the Department of Agriculture is committed to hiking the country’s coffee self-sufficiency currently standing at a measly 10 percent of the total annual demand.
Region VI minimum wage earners, kasambahays to receive higher pay starting November [GMA News Online, October 30, 2024]
The Regional Tripartite Wages and Productivity Board (RTWPB) VI has approved a P33-P40 wage hike for minimum wage earners, increasing the daily wage rates to P485-P513 in the non-agriculture sector and P480 in the agriculture sector in Western Visayas.
https://www.gmanetwork.com/news/topstories/regions/925395/region-vi-minimum-wage-hike/story/
Cordillera workers to receive pay hike [The Philippine Star, October 30, 2024]
Minimum wage earners in the Cordilleras are expected to receive a higher take-home pay as the Regional Tripartite Wages and Productivity Board (RTWPB) will conduct a public hearing on a salary increase petition today.
https://qa.philstar.com/nation/2024/10/30/2396252/cordillera-workers-receive-pay-hike
Court approves Tupperware’s sale to lenders [Yahoo Finance, October 30, 2024]
A U.S. bankruptcy judge approved a sale of Tupperware Brands on Tuesday, paving the way for the iconic food storage company to soon exit Chapter 11 protection and continue offering its products while undergoing a hoped-for revitalization.
https://finance.yahoo.com/news/court-approves-tupperwares-sale-lenders-230648193.html
SC issues TRO vs transfer of PhilHealth funds to National Treasury [Inquirer.Net, October 29, 2024]
Asked if this means the PhilHealth funds already transferred will be returned to the agency, Ting responded in the negative.
https://newsinfo.inquirer.net/1998896/sc-issues-tro-vs-transfer-of-philhealth-funds
Romualdez firm eyes MVP Group’s radio assets [The Philippine Star, October 29, 2024]
Nation Broadcasting Corp. (NBC) yesterday said it is in talks with Philippine Collective Media Corp. (PCMC) for the sale of its radio assets, subject to regulatory approval.
https://qa.philstar.com/business/2024/10/29/2395942/romualdez-firm-eyes-mvp-groups-radio-assets
BCDA still finalizing plans to re-develop Market! Market! [Philippine Daily Inquirer, October 29, 2024]
The Bases Conversion and Development Authority (BCDA) is still firming up its plans for its Taguig property where the Market! Market! shopping mall is located, with the decision still hanging whether the store will continue to operate or if the land will instead be re-developed into an entirely new mixed commercial and residential property.
https://business.inquirer.net/487336/bcda-still-finalizing-plans-to-re-develop-market-market
Marcos picks news BCDA board chairman [The Manila Times, October 29, 2024]
As a lawyer, Paredes specialized in banking and corporate finance, corporate law, infrastructure, telecommunications, mergers and acquisitions, taxation, immigration and law and employment, real property law and litigation.
https://www.manilatimes.net/2024/10/29/news/marcos-picks-news-bcda-board-chairman/1992969
DTI eyeing November launch of Alibaba-inspired B2B platform [Inquirer.net, October 29, 2024]
The head of the Department of Trade and Industry (DTI) on Monday said they will launch by the end of next month their recently announced business-to-business platform, a venue that will provide local entrepreneurs easier and wider access to wholesale trading.
https://business.inquirer.net/487214/dti-eyeing-november-launch-of-alibaba-inspired-b2b-platform
San Miguel unit takes over operations of Sual power plant [The Philippine Star, October 28, 2024]
“We completed last Oct. 25 the turnover of the Sual power station to Napocor and PSALM. For the past year, there has been close coordination with Napocor, PSALM and SPI to ensure a seamless transition process,” Team Energy officer-in-charge Mitsuhiro Kojima said.
Phinma all set for up to P1 billion SRO next month [The Philippine Star, October 28, 2024]
Phinma said it would use proceeds from the SRO to support initiatives of its construction materials group, particularly Phinma Solar’s Green Energy Auction Program projects and Philcement’s modern cement manufacturing plant in Davao del Norte.
https://qa.philstar.com/business/2024/10/28/2395689/phinma-all-set-p1-billion-sro-next-month
PH, US, Japan agree vs ‘economic coercion’ [Inquirer Plus, October 27, 2024]
The discussion revolved around building each other’s economic resilience independently to counter “economic coercion” done by other countries.
https://plus.inquirer.net/news/ph-us-japan-agree-vs-economic-coercion/
DOJ tells DepEd: PEAC is still a private entity [Inquirer.net, October 27, 2024]
“After a careful review of relevant laws and jurisprudence, we reiterate our position that PEAC is a private entity. Executive Order (EO) No. 1561, series of 1968, as amended by EO No. 150, series of 1994, constituted as an irrevocable trust fund, the Fund for Assistance to Private Education (FAPE),” Vasquez said in a letter.
https://newsinfo.inquirer.net/1998017/doj-tells-deped-peac-is-still-a-private-entity
LTO defers new rules, fines for unregistered sale of used vehicles [The Philippine Star, October 25, 2024]
The Land Transportation Office (LTO) has suspended its policy imposing a fine of P20,000 on motorists who fail to process the transfer of registration of second-hand vehicles within 20 days from sale.
https://www.philstar.com/nation/2024/10/25/2395084/lto-suspends-rule-transfer-vehicle-ownership
Angeles court junks Tarlac landfill operator’s bid to extend contract [Philippine Daily Inquirer, October 25, 2024]
The court supported CDC and BCDA’s argument that MCWMC’s action for reformation should have been filed within 10 years of the contract’s signing on Oct. 6, 1999. As the action had expired by Oct. 6, 2009, the court dismissed the claims.
Marcos expected to sign CREATE MORE bill on Nov. 11 – Escudero [GMA News Online, October 24, 2024]
Escudero said that he is 90% sure the bicam version would be approved, with 10% room for any last-minute adjustments the President might think necessary.
New Ayala hotel brand in the works [The Philippine Star, October 24, 2024]
“Plans are underway here at Ayala Land Hospitality as we explore expanding our current portfolio of brands and services,” the company said.
https://www.philstar.com/business/2024/10/24/2394741/new-ayala-hotel-brand-works
Reuse, repair, recycle: Uniqlo offers embroidery services to promote circular fashion [interaksyon, October 24, 2024]
The clothing apparel introduced services, such as repair and customizations. It also opened donations through the Re.Uniqlo Studio.
Visa-free countries, boutique hotels among top Asian travel trends [The Philippine Star, October 23, 2024]
All three panelists agreed that travel demand in the Asia-Pacific region is recovering but it is still below the global average, with only Japan and Vietnam reaching 100% pre-pandemic inbound arrival levels.
Recent Comments