BPI says working to ‘reverse’ duplicate transactions amid complaints
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [DECEMBER 27-JANUARY 4]
- TAX REMINDER ON THE REDUCED INDIVIDUAL INCOME TAX RATES EFFECTIVE JANUARY 1, 2023, PURSUANT TO THE 2ND TRANCHE OF TRAIN LAW
- BIR CLARIFIES THE EFFECTS OF FAILURE TO SUBMIT THE TIN OF COOPERATIVE MEMBERS WITHIN THE SIX-MONTH GRACE PERIOD FROM THE ISSUANCE OF THE CERTIFICATE OF TAX EXEMPTION
- BIR EXTENDS THE ACCEPTANCE OF MANUALLY ISSUED CETI AS AN ATTACHMENT TO AITR
- SUPREME COURT CASE ON RE-ASSIGNMENT OF BIR EXAMINERS
- DEPARTMENT OF JUSTICE OPINION ON REAL PROPERTY TAX EXEMPTION OF ELECTRIC COOPERATIVES
1. TAX & BUSINESS-RELATED NEWS [DECEMBER 27-JANUARY 4]
- Converge obtains license to provide connectivity services in Singapore
- Razon creates Malampaya brainstorming council as gas depletion nears
- BPI says working to ‘reverse’ duplicate transactions amid complaints
- JobStreet identifies in-demand skills for jobseekers in 2023
- PEZA to accept more transfer applications to BOI until mid-January
- GT Capital says AXA Philippines, Charter Ping An merger formally approved by SEC
- SPNEC targets to complete land conversion this year
- Google alleges India antitrust body copied parts of EU order on Android abuse
- Peza approves creation of 29 more ecozones
- Marcos suspends PhilHealth contribution hike as financial relief to Filipinos
- South Korea fines Tesla $2.2M for alleged false advertising
- El Nido Resorts taps Ayala unit for safe handling of waste
- Canada bans most foreigners from buying homes
- China Bank, union enter into 5-year CBA
- No ‘mo mojos? Shakey’s clarifies mojos shortage
- Russia risks causing new-year IT worker flight with remote working law
- URC brands among most favored in PH
- TRAIN Law windfall: Half-month salary ‘bonus’ awaits Pinoys in January
- Filinvest REIT plans to acquire eight more buildings
- Hershey sued in US over metal in dark chocolate claim
- BIR readies charges vs 57 grocery stores selling illegal cigarettes in Central Luzon
- GSIS members’ dependents to get school subsidy
- PhilHealth to follow SC order but insists execs’ benefits are above-board
- Marikina sari-sari stores, eateries get tax relief
- Sad farewell: Beloved Metro Manila restaurants that closed down in 2022
- Makati city hall employees to receive cash, rice incentives
- Cheapest cars in the Philippines
- PLDT denies ‘engaging’ US law firms to prevent lawsuits amid capex debacle
- Philippine SEC warns against unlicensed crypto exchanges amid FTX collapse
- ‘MVP on PLDT budget mess: We’re not hiding anything, not playing with the truth’
Converge obtains license to provide connectivity services in Singapore [Manila Bulletin, January 4, 2023]
Through the said license, Converge will have the right to provide international connectivity services in Singapore including Ethernet-International Private Line (E-IPL) service, Dedicated Internet Access (DIA) service, Carrier Ethernet Network service, Internet Protocol Virtual Private Network (IP-VPN) services using Multiprotocol Label Switching (MPLS), and sale and resale of submarine cable capacities.
https://mb.com.ph/2023/01/04/converge-obtains-license-to-provide-connectivity-services-in-singapore/
Razon creates Malampaya brainstorming council as gas depletion nears [Inquirer Mobile, January 4, 2023]
“By 2025-2026, gas exports will reach near technical minimum before new gas can be sourced,” it added.
BPI says working to ‘reverse’ duplicate transactions amid complaints [The Philippine Star, January 4, 2023]
Distressed BPI consumers trooped to Twitter on Wednesday morning to air their grievances. Social media users complained that they were debited twice for recent purchases, some claimed to have lost money in their bank accounts ranging from as low as P3,000 to six figures.
PEZA to accept more transfer applications to BOI until mid-January [Inquirer Mobile, January 4, 2023]
The Philippine Economic Zone Authority (Peza) on Tuesday said it would still accept applications from business process outsourcing (BPO) firms that want to transfer to the Board of Investments (BOI), extending the period of submission until around the middle of this month.
GT Capital says AXA Philippines, Charter Ping An merger formally approved by SEC [ABS-CBN News, January 4, 2023]
“Since we offer different types of insurance that cater to the varied protection needs of our customers, it will be much more convenient for our customers to find solutions for their insurance needs under the single AXA brand,” AXA Philippines President and CEO Bernardo Serrano Lopez said.
https://news.abs-cbn.com/business/01/04/23/sec-oks-axa-philippines-charter-ping-an-merger-gt-capital
SPNEC targets to complete land conversion this year [Inquirer Mobile, January 4, 2023]
So far, SPNEC said it has already fully secured the majority of its target land in preparation for converting these properties in Nueva Ecija and Bulacan for industrial use.
Google alleges India antitrust body copied parts of EU order on Android abuse [Reuters, January 4, 2023]
The Competition Commission of India (CCI) in October fined Alphabet Inc’s Google GOOGL.O $161 million for exploiting its dominant position in markets such as online search and the Android app store, and asked it to change restrictions imposed on smartphone makers related to pre-installing apps.
JobStreet identifies in-demand skills for jobseekers in 2023 [Manila Bulletin, January 4, 2023]
In a statement, JobStreet by SEEK said these skills are digital literacy, adaptability, interpersonal skills, multi-tasking efficiency, and time management.
Peza approves creation of 29 more ecozones [Inquirer Mobile, January 3, 2023]
Peza has established 421 ecozones since its inception in 1995, now housing 4,346 locator firms or projects, most of which are export-oriented. Of this number, 300 are IT parks and centers, 78 are manufacturing ecozones, 23 are agro-industrial ecozones, 17 are tourism ecozones and three are medical tourism ecozones.
Marcos suspends PhilHealth contribution hike as financial relief to Filipinos [ABS-CBN News, January 3, 2023]
In a joint statement released Monday night, the Department of Health and PhilHealth said they already received the President’s memorandum.
South Korea fines Tesla $2.2M for alleged false advertising [ABS-CBN News, January 3, 2023]
South Korea’s antitrust regulator said Tuesday it will fine Tesla 2.85 billion won ($2.2 million) for neglecting to inform customers that the driving range of its electric vehicles could be halved in cold weather.
El Nido Resorts taps Ayala unit for safe handling of waste [Inquirer Mobile, January 2, 2023]
AC Logistics, through subsidiary Integrated Waste Management Inc. (IWMI), is one of the leading waste management companies in the country, currently serving 40 percent of medical establishments in Metro Manila.
Canada bans most foreigners from buying homes [GMA News Online, January 2, 2023]
The temporary two-year measure was proposed by Prime Minister Justin Trudeau during the 2021 election campaign when soaring prices put home ownership beyond the reach of many Canadians.
China Bank, union enter into 5-year CBA [Inquirer Mobile, January 2, 2023]
The agreement, the lender’s 27th CBA in its 102-year-old history, was signed between China Bank and the China Banking Corp. Employees Association (CBCEA) last Dec. 7 after two and a half months of negotiations.
No ‘mo mojos? Shakey’s clarifies mojos shortage [Rappler, January 2, 2023]
Because the absence of the pizza chain’s beloved potato snack is due to “global supply constraints,” Shakey’s said that they have been – and will continue to be – serving mojo-flavored fries as a substitute. It’s your typical crispy French fries, heavily coated in a similar blend of spices and flavorings.
Russia risks causing new-year IT worker flight with remote working law [Inquirer Mobile, January 2, 2023]
Russia’s buffetted IT sector risks losing more workers in the new year because of planned legislation on remote working, as authorities try to lure back some of the tens of thousands who have gone abroad without prompting them to cut ties completely.
URC brands among most favored in PH [Inquirer Mobile, December 31, 2022]
Among the company’s top ranked brands were Great Taste instant coffee, Piattos potato chips and Nissin instant noodles.
TRAIN Law windfall: Half-month salary ‘bonus’ awaits Pinoys in January [Manila Bulletin, December 31, 2022]
“A 13.5th month bonus” was how Salceda described this additional income, which will stem from the cuts to personal income tax (PIT) rates in 2023 via TRAIN.
Filinvest REIT plans to acquire eight more buildings [Inquirer Mobile, December 31, 2022]
The buildings would increase its GLA to 494,865 sq m, which was 64 percent bigger compared to its portfolio when it went public in August 2021.
Hershey sued in US over metal in dark chocolate claim [BBC, December 30, 2022]
The lawsuit brought by Christopher Lazazzaro alleges the firm misled consumers by failing to disclose the quantities of lead and cadmium in three dark chocolate bars.
BIR readies charges vs 57 grocery stores selling illegal cigarettes in Central Luzon [Inquirer.Net, December 30, 2022]
Authorities escalated further what they dubbed as the “last quarter storm” trade enforcement against the sale of illegal cigarettes in Central Luzon provinces, zeroing mostly on public market wholesale stores.
GSIS members’ dependents to get school subsidy [Inquirer Mobile, December 29, 2022]
The GSIS provides such benefit, worth P10,000 each, to qualified dependents of members through the GSIS Educational Subsidy Program. The 209-page list of recipients for academic year 2022-2023 may be accessed through the GSIS website.
PhilHealth to follow SC order but insists execs’ benefits are above-board [Inquirer.Net, December 29, 2022]
PhilHealth Executive Vice President Eli Dino Santos in a statement on Thursday, assured the public that PhilHealth has complied with the Commission on Audit (COA) decision to disallow P83.06 million in educational assistance and birthday gift benefits given to the state-insurer’s officials and employees in 2014.
Marikina sari-sari stores, eateries get tax relief [Manila Bulletin, December 29, 2022]
The Marikina City local government announced on Wednesday, Dec. 28, that it has approved an ordinance exempting sari-sari store and carinderia owners from paying their business permits and business tax next year to help them cope with the effects of the ongoing Covid-19 pandemic.
Sad farewell: Beloved Metro Manila restaurants that closed down in 2022 [Rappler, December 29, 2022]
Gone too soon! Which names are you the most sad to see go?
Makati city hall employees to receive cash, rice incentives [Manila Bulletin, December 29, 2022]
Over 8,000 Makati city hall employees will receive up to P20,000 cash as Service Recognition Incentive (SRI) after the city council approved ordinances for its immediate funding, the city government announced Thursday, Dec. 29.
Cheapest cars in the Philippines [TopGear Philippines, December 28, 2022]
These are some of the most affordable cars in the Philippines.
PLDT denies ‘engaging’ US law firms to prevent lawsuits amid capex debacle [The Philippine Star, December 28, 2022]
PLDT issued the statement after local media reported that several shareholder rights law firms in the US have launched separate investigations into the 23% slump in the price of PLDT’s American Depositary Receipts on December 19, or after the company disclosed its P48-billion budget “overruns”.
Philippine SEC warns against unlicensed crypto exchanges amid FTX collapse [Cointelegraph, December 27, 2022]
The Securities and Exchange Commission (SEC) in the Philippines issued an advisory to the public against using unregistered cryptocurrency exchanges operating within the country. Within the warning, the SEC did not directly mention the FTX exchange but said that the warning considers “the recent collapse of a large international cryptocurrency exchange.”
‘MVP on PLDT budget mess: We’re not hiding anything, not playing with the truth’ [The Philippine Star, December 27, 2022]
Tycoon Manuel V. Pangilinan appeared calm as he led his executives when they faced analysts and fund managers last week at Dusit Thani Manila to explain why PLDT Inc., the listed telco giant he chairs, incurred a P48-billion budget overrun.
2. TAX REMINDER ON THE REDUCED INDIVIDUAL INCOME TAX RATES EFFECTIVE JANUARY 1, 2023, PURSUANT TO THE 2ND TRANCHE OF TRAIN LAW
It may be recalled that Revenue Regulations (RR) No. 8-2018, issued on February 20, 2018, implements the amended provisions on Individual Income Tax pursuant to Republic Act No. 10963 (Tax Reform for Acceleration and Inclusion or TRAIN Law).
Starting January 1, 2023, those with annual taxable income below P 250,000 are still exempt from paying personal Income Tax, while the rest of taxpayers, except those with taxable income of more than P 8 Million, will have lower tax rates ranging from 15% to 30% by 2023.
3. BIR CLARIFIES THE EFFECTS OF FAILURE TO SUBMIT THE TIN OF COOPERATIVE MEMBERS WITHIN THE SIX-MONTH GRACE PERIOD FROM THE ISSUANCE OF THE CERTIFICATE OF TAX EXEMPTION
Revenue Memorandum Circular (RMC) No. 158-2022, issued on December 27, 2022, clarifies the effect of the non-submission of a Cooperative of the Tax Identification Number (TIN) of its members within six (6) months from the issuance of its Certificate of Tax Exemption (CTE).
Highlights include the following:
a. Imposition of penalties of Php 1,000 per member without TIN, provided the aggregate amount shall not exceed Php 25,000 for the 1st offense, suspension of CTE until compliance for the 2nd offense, while a revocation and prohibition to apply for renewal of CTE for a period of three (3) years from the date of revocation for the 3rd offense.
b. Justifiable circumstances that will prevent the imposition of penalties such as delisted inactive members and force majeure.
c. All cooperatives which have been issued CTE despite non-submission of the active members’ TIN are still required to submit their respective TINs within the 6-month grace period unless the non-submission falls within justifiable reasons as above-mentioned.
d. For CTE renewal application, the Cooperatives are required to complete and submit the TIN of their active members.
4. BIR EXTENDS THE ACCEPTANCE OF MANUALLY ISSUED CETI AS AN ATTACHMENT TO AITR
Revenue Memorandum Circular (RMC) No. 155-2022, issued on December 27, 2022, further extends the acceptance of manually issued Certificate of Entitlement to Tax Incentives (CETI) under R.A. No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act as an attachment to the 2022 Annual Income Tax Return (AITR) to be filed by Registered Business Enterprises (RBEs) as proof of their entitlement to Income Tax incentives, until such time that a system-generated CETI can be issued thru the Fiscal Incentives Registration and Monitoring System (FIRMS) account being administered by the Fiscal Incentives and Review Board. It may be recalled that under the CREATE Law, CETI is a requirement for all RBEs to avail of the Income Tax Holiday or preferential rate granted by law.
5. SUPREME COURT CASE ON RE-ASSIGNMENT OF BIR EXAMINERS
[REASSIGNMENT OF AUDIT TO A NEW RO MUST BE MADE THROUGH A VALID NEW LOA AS SIGNED BY THE CIR HIMSELF OR BY HIS AUTHORIZED REPRESENTATIVE, OTHERWISE, IT WILL RENDER THE ASSESSMENT NULL & VOID] [VALID REASSIGNMENT OF A TAX INVESTIGATION TO A DIFFERENT RO WILL NOT IMPEDE THE COLLECTION OF TAXES] [A NEW LOA FOR VALID REASSIGNMENT CAN BE RECONCILED WITH THE “ONE LOA PER TAXABLE YEAR” RULE]
Petitioner Republic of the Philippines filed a Petition for Review on Certiorari assailing the Court of Tax Appeals (CTA) En Banc’s earlier Decision and Resolution canceling the assessment issued to the Respondent Robiegie Corporation. In an earlier Decision, the CTA cited the case of Commissioner of Internal Revenue vs. McDonald’s Philippines Realty Corp. which provides that the reassignment of a new Revenue Officer (RO) to continue the audit without a separate or amended Letter of Authority (LOA) will violate the taxpayer’s right to due process and, therefore, null and void. In ruling, Supreme Court held that the Petitioner’s assertion that an LOA is not an “authorization letter” of the ROs but a mere notice of investigation to the taxpayer is erroneous and blatantly contrary to the text of the law. Sections 6(A) and 13 of the 1997 Tax Code, as amended, provides that ROs may only examine taxpayers, in the course of carrying out, in conformance to, or agreement with, or according to, a validly issued LOA which must be issued and signed either by the Regional Directors, Deputy Commissioners, Commissioner, or his duly authorized representative. Contrary to the Petitioner’s position, issuance of a new LOA as a requisite for a valid reassignment of audit to a new RO will not impede the collection of taxes. As Petitioner reasoned that such reassignment is effected through a Memorandum Referral since only one (1) LOA per taxable year can be issued to a taxpayer, the Court submits that a new LOA for valid reassignment can be reconciled with the “one LOA per taxable year” rule under Revenue Memorandum Order (RMO) No. 8-2006 which authorizes the issuance of duplicate LOAs, subject to the CIR’s discretion to determine which LOA shall prevail. Simply, the CIR or his duly authorized representatives may issue a new LOA to the newly assigned RO, and such LOA can be made to prevail over the LOA issued to the previous investigating officer. In the instant case, the Petitioner failed on the requirement that reassignment of RO must be made pursuant to an LOA as signed and issued by the CIR or his duly authorized representative. Hence, the said new RO had no authority to investigate the Respondent. Thus, the Court resolved to DENY the Petition. [REPUBLIC OF THE PHILIPPINES VS. ROBIEGIE CORPORATION, G.R NO. 260261, OCTOBER 3, 2022, UPLOADED DECEMBER 7, 2022]
6. DEPARTMENT OF JUSTICE LEGAL OPINION ON REAL PROPERTY TAX EXEMPTION OF ELECTRIC COOPERATIVES
EXEMPTION FROM RPT OF NEA & CDA ELECTRIC COOPERATIVES
Secretary of Department of Energy and the Representatives of PHILRECA and APEC Party-Lists request to revisit DOJ Opinion No. 55, Series of 2014, relative to the tax exemption afforded to electric cooperatives (ECs) by virtue of Republic Act (RA) No. 10531 or the “National Electrification Administration Reform Act of 2013” (NEA Law). It was argued that an interpretation in the said Opinion requiring ECs to first register with the Cooperative Development Authority (CDA) before they can avail of the preferential rights will render nugatory the Section 13 as well as Section 18(c) of NEA Law’s Implementing Rules and Regulations and in contrast to the policy of NEA Law. Section 13 of the said law merely requires ECs to comply with NEA’s “financial and operational standards” for them to avail the preferential rights granted to cooperatives under the Local Government Code (LGC), among others. In reply, the lawmakers would not have added Section 13 of the NEA Law, specifically the provision therein that made reference to the LGC, for no reason. Had they intended to make prior registration with the CDA a prerequisite to the availment of the preferential rights under the LGC, they would have simply stated so. Without stating any further qualifications clearly shows their intention to extend these preferential rights to ECs. To rule otherwise will render Section 13 meaningless. Hence, all electric cooperatives, whether non-stock cooperative under NEA, stock cooperative under the CDA, or stock corporation registered under the Securities and Exchange Commission (SEC) pursuant to the Corporation Code, may avail of the preferential rights granted under the LGC without the need of prior registration with the CDA, as long as compliant with the financial and operational standards set by the NEA, as clearly stated in RA No. 10531. Consequently, Opinion No. 55, series of 2014, was REVERSED. [DEPARTMENT OF JUSTICE OPINION NO. 31, SERIES OF 2022, DECEMBER 13, 2022]
Recent Comments