BIR axes 26 employees, suspends 2 for violations
- TAX & BUSINESS-RELATED NEWS [JUNE 12-19]
- BIR AMENDS RR NO. 13-2010 ON LATE/OUT-OF-DISTRICT FILING OF TAX RETURNS
- BIR FURTHER CLARIFIES IMPORTED GOODS THAT WILL NO LONGER REQUIRE AN AUTHORITY TO RELEASE IMPORTED GOODS BY THE BIR PRIOR TO THE RELEASE BY THE BOC
- SEC LEGAL OPINION ON SECONDARY LICENSE OF COMPANY ENGAGED IN LENDING ACTIVITY
- COURT OF TAX APPEALS CASES ON PRIOR YEAR’S EXCESS TAX CREDITS & FEES IMPOSED BY LGU
1. TAX & BUSINESS-RELATED NEWS [JUNE 12-19]
- Bill seeking return to June-March school year filed in House
- Metro Pacific eyes Cebu expressway, Bohol bridge
- Solon files bill to reduce tax on coal, electricity and petroleum products
- BIR warns public vs illegal TIN card sellers
- PhilHealth’s transfer bid to OP for ‘more efficient’ healthcare management —Herbosa
- PH exporters to benefit from new UK trading scheme: envoy
- BSP slaps P1-M fine to BPI over Family bank merger
- Welcome back! Makati Shangri-La reopens doors in August
- Record-Breaking 29 Philippine Universities Shine in THE Impact Rankings
- PDIC to refund eligible depositors of closed bank in Pangasinan
- Which professions are the most at risk of being replaced by artificial intelligence?
- VAT refund for foreigner tourists to help PH reach pre-pandemic numbers —DOT
- Aboitiz unit introduces mule accounts detection
- BSP to issue rules on handling EFT disputes
- GSIS offers condonation program to help recoup P45B overdue loans
- Bloomberry ordered to pay P49M in deficiency documentary stamp tax
- BIR axes 26 employees, suspends 2 for violations
- Senate probe into unregistered, unauthorized online lending platforms sought
- Taguig asks SC to issue show cause order vs Makati over ‘troubling’ land row claims
- Max’s Group announces key leadership change
- CA affirms dismissal of P30-million lawsuit over Two Serendra blast
2. BIR AMENDS RR NO. 13-2010 ON LATE/OUT-OF-DISTRICT FILING OF TAX RETURNS
Revenue Regulations (RR) No. 6-2023, issued on June 13, 2023, amends certain provisions of RR No. 13-2010 regarding Late/Out-of-District Filing of Tax Returns. Specifically, the amendment provides the imposition of a penalty of 25% of the tax due to out-of-district returns or wrong venue filing of returns, unless otherwise authorized by the Commissioner and in case there is pronouncement through a revenue issuance/bank bulletin allowing a taxpayer to file and pay a return, anywhere outside the BIR jurisdiction. On acceptance of late returns, Authorized Agent Banks (AABs) or Revenue Collection Officer (RCO) may accept a late return that has been stamped with the qualifier “LATE FILING” or “LATE FILING, INCREMENTS NOT PAID” subject to the BIR’s later imposition of penalties, upon retrieval of returns.
It may be recalled that under RR No. 13-2010, the BIR shall not accept late and out-of-district returns. Otherwise, the corresponding filings shall be imposed with penalties.
3. BIR FURTHER CLARIFIES IMPORTED GOODS THAT WILL NO LONGER REQUIRE AN AUTHORITY TO RELEASE IMPORTED GOODS BY THE BIR PRIOR TO THE RELEASE BY THE BOC
Revenue Memorandum Circular (RMC) No. 68-2023, issued on June 13, 2023, further expands the coverage of non-issuance of “Authority to Release Imported Goods (ATRIG)” to importers of goods covered by Value-Added Tax (VAT) exemption under Section 109(1)(B) of the 1997 Tax Code, as amended.
It may be recalled that under RMC No. 112-2021, the BIR requires that an ATRIG shall be secured from the BIR for feed, feed ingredients, and fertilizers before the release of these imported goods by the Bureau of Customs (BOC).
As clarified, the certificate secured from the Bureau of Animal Industry (BAI), Fertilizer and Pesticides Authority (FPA), or other concerned regulatory government agencies shall be directly presented to the BOC to effect the release of the imported goods.
4. SEC LEGAL OPINION ON SECONDARY LICENSE OF COMPANY ENGAGED IN LENDING ACTIVITY
LENDING ACTIVITY SHOULD SECURE A SECONDARY LICENSE TO OPERATE
G Co. is requesting an opinion on whether the intended business activity using the online platform called “Earned Wage Access (EWA)” constitutes a lending activity that requires obtaining a Certificate of Authority to Operate as a Lending Company. In reply, the Commission referred to Article 1933 of the Civil Code of the Philippines and the Supreme Court case of Santiago vs. Spouses, G.R. No. 228356, dated March 9, 2020, which provides that by the contract of loan, one of the parties delivers to another money upon the condition that the same amount of the same kind and quality shall be paid. The elements of a loan are: (1) one of the parties (creditor) delivers money or another consumable thing to another; (2) a person who receives the money or consumable thing (debtor) acquires ownership thereof; and (3) the debtor is bound to pay to the creditor an equal amount of the same kind and quality. Similarly, Section 7 of Republic Act (RA) No. 9474 or the Lending Company Regulation Act of 2007 (LCRA) recognizes that a lending company, as a creditor, may grant loans in such amounts and reasonable interest rates and charges as may be agreed upon between the lending company and the debtor. Consequently, the elements of business activity fall within the definition of a loan under the Civil Code of the Philippines. Moreover, the financial service limited only to those employees registered does not exempt or remove the activity from the lending or granting loans. Hence, usage of EWA requires a secondary license from the Commission. [SEC OFFICE OF THE GENERAL COUNSEL LEGAL OPINION NO. 23-08, MAY 9, 2023]
5. CTA CASES ON PRIOR YEAR’S EXCESS TAX CREDITS & FEES IMPOSED BY LGU
FAILURE TO PROVE PRIOR YEAR EXCESS CREDITS IS FATAL IN THE CLAIM OF A REFUND
Petitioner Aecom Philippines Inc. filed a Petition for Review seeking the reversal of the CTA 1st Division’s earlier Decision and Resolution. The Petitioner mainly argued that the Court in Division erred in ruling that the Petitioner failed to prove that its income payments were declared as part of the gross income reported in its Annual Income Tax Returns (ITR). In ruling, the Court denied the Petition since the Petitioner still failed to show the total breakdown of the total income as declared in its amended annual ITR. Consequently, the Court cannot verify whether the gross income payments on which the subject Creditable Withholding Taxes (CWT) were made certainly formed part of the gross income. Thus, the Court En Banc finds no compelling reason to disturb the findings of the Court in Division in the Assailed Decision and Resolution. [AECOM PHILIPPINES, INC. VS COMMISSIONER OF INTERNAL REVENUE, CTA CASE EN BANC CASE NO. 2653, JUNE 7, 2023]
ENVIRONMENTAL FEE IS NOT A TAX, THUS, CTA HAS NO JURISDICTION
Petitioner Dole Philippines, Inc.-Stanfilco Division filed a Petition for Review assailing the CTA 2nd Division’s earlier Decision and Resolution. The Petitioner mainly argued that the CTA 2nd Division erred in ruling that it has no jurisdiction over the subject matter of the case. In ruling, the Court resolved that the CTA is a Court of Special Jurisdiction and can only take cognizance of matters that are clearly within its jurisdiction. Here, the Court has exclusive jurisdiction to review local tax cases originally resolved by the Regional Trial Court (RTC). Considering that the Environmental Tax under the Watershed Code of Davao City is not in the nature of a local tax, the Court in Division correctly dismissed the Petition for lack of jurisdiction. Thus, the Court renders the discussion of other issues raised by the Petitioner unnecessary. Consequently, the Petition was DENIED for lack of merit. [DOLE PHILIPPINES, INC.-STANFILCO DIVISION VS. THE SANGGUNIANG PANLUNGSOD OF THE CITY OF DAVAO & THE HON. SARA Z. DUTERTE-CARPIO & BELLA LINDA N. TANJILI, IN THEIR RESPECTIVE CAPACITIES AS MAYOR & TREASURER OF THE CITY OF DAVAO, CTA EN BANC CASE NO. 2461, MAY 12, 2023]
Bill seeking return to June-March school year filed in House [GMA News Online, June 19, 2023]
A bill reverting the school calendar to June to March starting the school year 2024 to 2025 was filed in the House of Representatives amid the struggle to hold classes in the heat of the summer season.
Metro Pacific eyes Cebu expressway, Bohol bridge [The Philippine Star, June 19, 2023]
The builder and operator of the Cebu-Cordova Link Expressway (CCLEX) will pursue its plans to vie for the P94.07-billion Metro Cebu Expressway (MCE) and P90-billion Cebu-Bohol Bridge.
https://www.philstar.com/business/2023/06/19/2274780/metro-pacific-eyes-cebu-expressway-bohol-bridge
Solon files bill to reduce tax on coal, electricity and petroleum products [GMA News Online, June 19, 2023]
“It seeks to mitigate the effects of the imposition of VAT and the increased excise taxes on petroleum products and coal that are too much of a burden on the consumers and businesses as we recover from the effects of COVID-19 and rising inflation,” Villafuerte said.
BIR warns public vs illegal TIN card sellers [ABS-CBN News, June 19, 2023]
Lumagui said the BIR’s Client Support Service met with representatives of Shopee and Lazada last May 31 to request for immediate removal of advertisements and posts offering TIN ID assistance.
https://news.abs-cbn.com/business/06/19/23/bir-warns-public-vs-illegal-tin-card-sellers
PhilHealth’s transfer bid to OP for ‘more efficient’ healthcare management —Herbosa [GMA News Online, June 19, 2023]
It was on May 16 when former DOH officer-in-charge Maria Rosario Vergeire announced that PhilHealth suggested transferring its administrative supervision from the DOH to the Office of the President.
PH exporters to benefit from new UK trading scheme: envoy [ABS-CBN News, June 19, 2023]
Philippine exporters can save as much as P1.4 billion annually under the UK’s new Developing Countries Trading Scheme (DCTS) which takes effect on June 19.
https://news.abs-cbn.com/business/06/19/23/ph-exporters-to-benefit-from-new-uk-trading-scheme-envoy
BSP slaps P1-M fine to BPI over Family bank merger [The Philippine Star, June 15, 2023]
The Bangko Sentral ng Pilipinas slapped a P1 million fine on the Bank of the Philippine Islands for the disposal of treasury shares that came as a result of its merger with BPI Family Savings Bank.
Welcome back! Makati Shangri-La reopens doors in August [Rappler, June 15, 2023]
Makati Shangri-La was first opened to the public in April 1993, following the success of EDSA Shangri-La, which opened in 1992 and is the Shangri-La Group’s first hotel in the Philippines. More hotels have been established since then, including the Shangri-La Mactan Resort and Spa, Shangri-La Boracay Resort and Spa, Jen Manila by Shangri-La, and Shangri-La at The Fort.
https://www.rappler.com/life-and-style/travel/makati-shangrila-hotel-reopening-august-2023/
Record-Breaking 29 Philippine Universities Shine in THE Impact Rankings [Good News Pilipinas, June 15, 2023]
The Times Higher Education (THE) Impact Rankings for 2023 brought monumental recognition to the Philippines as a record number of 29 universities from the archipelago have been included in the prestigious list. The Impact Rankings are unique as they gauge higher education institutions (HEIs) on their contribution towards achieving the United Nations Sustainable Development Goals (SDGs).
PDIC to refund eligible depositors of closed bank in Pangasinan [Philippine News Agency, June 14, 2023]
The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) prohibited Bangko Pangasinan-A Rural Bank from doing business in the Philippines through a resolution dated June 1, 2023, which also directed the PDIC, as the receiver, to proceed with the takeover and liquidation of the bank.
https://www.pna.gov.ph/articles/1203534
Which professions are the most at risk of being replaced by artificial intelligence? [The Daily Digest, June 14, 2023]
Artificial intelligence and, more specifically, ChatGPT, have become a recurring topic of conversation. Unsurprisingly, it is a real revolution in all areas but especially in the workplace, presenting a new scenario for both employers and workers.
VAT refund for foreigner tourists to help PH reach pre-pandemic numbers —DOT [GMA News Online, June 14, 2023]
Senator Sherwin Gatchalian, who presided over the hearing, asked the DOT to provide a study on the possible effects of the VAT refund scheme on the number of tourists that will come into the Philippines.
Aboitiz unit introduces mule accounts detection [The Manila Times, June 14, 2023]
ABOITIZ Data Innovation (ADI), the data science and artificial intelligence arm of the Aboitiz Group, is partnering with sister firm Union Bank of the Philippines to introduce mule accounts detection to counter financial crimes.
BSP to issue rules on handling EFT disputes [Manila Bulletin, June 14, 2023]
The Bangko Sentral Pilipines (BSP) is proposing a set of guidelines in the settlement of disputes involving electronic fund transfers (EFTs) with the increased adoption of digital or e-payments in the country.
https://mb.com.ph/2023/6/14/bsp-to-issue-rules-on-handling-eft-disputes
GSIS offers condonation program to help recoup P45B overdue loans [ABS-CBN News, June 13, 2023]
Government Service Insurance System (GSIS) President and General Manager Jose Arnulfo “Wick” Veloso said on Tuesday the agency is offering a condonation program and has intensified collection efforts to recover P45-billion overdue loans from its members.
Bloomberry ordered to pay P49M in deficiency documentary stamp tax [GMA News Online, June 13, 2023]
The Court of Tax Appeals has ordered Bloomberry Resorts Corporation, operator of Solaire Resort Entertainment City, to pay P49 million worth of deficiency documentary stamp tax (DST), including surcharges and interest, over the loans and advances it gave its non-resident foreign affiliate companies.
BIR axes 26 employees, suspends 2 for violations [ABS-CBN News, June 13, 2023]
“As we transform the BIR into an institution of integrity and excellence, we have removed 26 and suspended 2 erring employees. Keep in mind that you have no business working for the BIR if you fail to meet our standards for Integrity and Professionalism,” BIR Commissioner Romeo Lumagui said.
https://news.abs-cbn.com/business/06/13/23/bir-axes-26-employees-suspends-2-for-violations
Senate probe into unregistered, unauthorized online lending platforms sought [GMA News Online, June 13, 2023]
Villanueva filed proposed Senate Resolution 641 amid reports of harassment and intimidation by online lending platform collecting agents of individuals who were unable to pay their loans on time.
Taguig asks SC to issue show cause order vs Makati over ‘troubling’ land row claims [The Philippine Star, June 13, 2023]
Taguig Mayor Lani Cayetano filed before the high court an urgent manifestation and motion asking it to investigate the “disturbing claims” made by Binay on the land dispute, which was already resolved by the Supreme Court.
Max’s Group announces key leadership change [GMA News Online, June 13, 2023]
According to MGI, its chief executive officer, Robert Ramon Trota, will also serve as president, replacing Fermin, whose resignation will take effect on August 31, 2023.
CA affirms dismissal of P30-million lawsuit over Two Serendra blast [Rappler, June 12, 2023]
The petitioner, Marianne Cayton, and her legal counsel fail to show up during the pre-trial.
https://www.rappler.com/nation/metro-manila/court-of-appeals-dismissal-lawsuit-two-serendra-blast/
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