Palace issues proclamations declaring special holidays
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [FEBRUARY 14-23]
- SEC LEGAL OPINIONS ON IMPROPERLY ACCUMULATED EARNINGS TAX & 40% FOREIGN EQUITY LIMITATION IN THE FORMAL EDUCATION SYSTEM
- SUPREME COURT DECISION ON THE CONSTITUTIONALITY OF TRAIN LAW
- TAX & BUSINESS-RELATED NEWS [FEBRUARY14-23]
- SEC launches online portal for corporate amendments
- PLDT enters into $3-million settlement over US class action suit
- ChatGPT experiences unprecedented meltdown, generates alarming and nonsensical responses
- Citicore breaks ground for Negros solar project
- Sky Cable, PLDT deal not pushing through
- JTI named top employer in Philippines for 3rd straight year
- SEC suspends corporate registration of almost 118,000 companies
- BGC-type business district eyed in Pampanga with new highway project
- SC: Spouses who married SSS pensioners after date of disability can be beneficiaries
- SEC upholds fines vs. NOW Corp.
- SC’s ruling final: Estate of Disini to pay damages to gov’t for mothballed Bataan Nuclear Power Plant
- Suspension of PhilHealth contributions sought for minimum wage earners
- Palace issues proclamations declaring special holidays
- NYCB stock rout prompts US bank regulators to conduct health check
- Eased forex rules to take effect this year
- Pay hike for Davao Region workers, kasambahay approved– DOLE
- ‘No video, no refund policy’ is illegal, DTI says
- GCash gets BSP nod to enter Europe, ME
- LIST: 10 most expensive subdivisions in Metro Manila
2. SEC LEGAL OPINIONS ON IMPROPERLY ACCUMULATED EARNINGS TAX & 40% FOREIGN EQUITY LIMITATION IN THE FORMAL EDUCATION SYSTEM
% FOREIGN EQUITY LIMITATION DOES NOT APPLY TO SHORT-TERM HIGH-LEVEL SKILLS DEVELOPMENT THAT DO NOT FORM PART OF THE FORMAL EDUCATION SYSTEM
A Japanese Foreign Corporation (JFC) is requesting an opinion on whether Executive Order (E.O.) No. 175 (12th Foreign Investment Negative List-FINL) applies to its proposed educational institution offering non-degree certification courses. Specifically, JFC wants to know if it qualifies under the category of “short-term high-level skills development” in the FINL, allowing 99% ownership. Referring to a Technical Education and Skills Development Authority (TESDA) Memorandum, if a corporation wishes to engage in the business of providing technical vocational education or training programs, it follows that being an educational institution, it must comply with the 60%-40% Filipino-Foreign equity requirement, subject to limitation and exceptions prescribed by law. However, with the recent passage of the 12th FINL, the determination of whether the TESDA Memorandum is still consistent with the definition of “short-term high-level skills development that do not form part of the formal education system” under the 12th FINL rests with TESDA and not with the SEC. As a matter of policy, the SEC shall refrain from rendering opinion on queries that involve interpretation of administrative rules and issuances of other government agencies. Thus, if the proposed corporation falls within the ambit of the exception stated in the 12th FINL, then, “the ownership, management, and operations of the proposed corporation can be undertaken or 99% owned by JFC since in this case, no nationality restriction would apply. Otherwise, JFC cannot. [SEC OFFICE OF THE GENERAL COUNSEL LEGAL OPINION NO. 24-01, JANUARY 2, 2024]
[THE IMPOSITION OF THE IAET AS REPEALED IS SEPARATE & DISTINCT FROM THE PROHIBITION TO RETAIN PROFITS UNDER RCCP] [THERE MUST BE A CLEAR SHOWING THAT THE INTENT IN ENACTING THE NEW LAW WAS TO ABROGATE THE OLD ONE]
- Co. is requesting an opinion on the following: (1) whether the repeal of Section 29 of the National Internal Revenue Code (NIRC) has an effect on SEC Memorandum Circular (MC) No. 11, Series of 2008 or the guidelines for the determination of retained earnings available for dividend declaration; and (2) whether the SEC still imposes fines and other penalties on corporations retaining surplus profits in excess of 100% of their paid in capital stock. In reply, the Commission cited the case of Antonio Mecano vs. Commission on Audit, which the court laid down the rule on implied repeal and provides that where a statute of a later date clearly reveals an intention on the part of the legislature to abrogate a prior act on the subject, that intention must be given effect. Otherwise, at least, as a rule, the later act is to be construed as a continuation of, and not a substitute for, the first act and will continue so far as the two acts are the same from the time of the first enactment. In this case, the imposition of Improperly Accumulated Earnings Tax (IAET), which was deleted under the “Corporate Recovery and Tax Incentives for Enterprises Act” or “CREATE Law” is distinct and separate from the prohibition to retain profits under Section 42 of the Revised Corporation Code of the Philippines (RCCP). Therefore, the repeal of Section 29 of the NIRC has no effect on the prohibition under SEC MC No. 22 of 2008 because the latter is not based on the NIRC. As to the 2nd query, considering Section 42 of the RCCP and by, extension, SEC MC No. 11 of 2008 are not yet repealed, the SEC is in the affirmative and may still impose penalties for violation of the foregoing subject to due notice and hearing as provided in Section 158 of the RCCP.[SEC OFFICE OF THE GENERAL COUNSEL LEGAL OPINION NO. 23-14, OCTOBER 2, 2023]
3. SUPREME COURT DECISION ON THE CONSTITUTIONALITY OF TRAIN LAW
[CONSTITUTIONALITY OF THE TRAIN LAW] [EXCISE TAX PROVISIONS OF THE TRAIN ACT MAY NOT BE STRUCK DOWN FOR BEING REGRESSIVE] [A PROGRESSIVE TAX SYSTEM DID NOT PROHIBIT REGRESSIVE TAXES]
Petitioners, including legislators and consumer groups, filed Petitions for Certiorari under Rule 65 seeking to strike down the Republic Act (R.A.) No. 10963, or the “Tax Reform for Acceleration and Inclusion” (TRAIN) Act, which amended R.A. No. 8424, or the National Internal Revenue Code of 1997, for having been passed by Congress and signed by President Duterte in violation of the 1987 Constitution and the Internal Rules of the House of Representatives. Petitioners argued that the law was unconstitutionally passed due to a lack of quorum and violated the equal protection clause. Also, the taxes imposed by the law are regressive and burden low-income families. On the other hand, the Respondents, including President Duterte and government officials, countered that the law was validly enacted and necessary for the government’s programs. In ruling, the Court held that it has jurisdiction over the case, and that the law was validly enacted. The determination of a quorum is an internal matter of the House and should be left to its discretion. Likewise, Section 48 of the TRAIN Act is not a “prohibited rider.” Further, while the Petitioners presented statistics and surveys to advance their cause, none are truly determinative of the cumulative effects of the TRAIN Act on low-income households. The TRAIN Act’s impact on low-income households was considered during its formulation and the Court noted that measures such as unconditional cash transfers and social welfare programs were implemented to mitigate the economic burden on marginalized families. A mere allegation of arbitrariness was insufficient; instead, persuasive proof of an unconstitutional aspect was required. On the excise tax provisions on diesel, coal, LPG, and kerosene, it cannot also be considered in isolation and must be read in conjunction with the other provisions of the law. The Constitution does not really prohibit the imposition of indirect taxes which, like VAT, are regressive. The Court concluded that the TRAIN Act does not violate the due process clause, equal protection clause, or Section 28(1) Article VI of the Constitution. Consequently, the Petitions were DISMISSED. [ACT TEACHERS REP. ANTONIO TINIO, BAYAN MUNA REP. PARTY-LIST REP. CARLOS ISAGANI ZARATE & ANAKPAWIS REP. PARTY-LIST ARIEL “KA AYIK” CASILAO VS. PRESIDENT RODRIGO ROA DUTERTE, HOUSE OF REPRESENTATIVES SPEAKER PANTALEON ALVAREZ, DEPUTY SPEAKER RANEO ABU, MAJORITY LEADER RODOLFO FARINAS & DEPUTY MAJORITY LEADER REP. ARTHUR DEFENSOR, JR., G.R. NO. 236118 & 236295, JANUARY 24, 2023, UPLOADED DECEMBER 13, 2023]
SEC launches online portal for corporate amendments [The Philippine Star, February 23, 2024]
The SEC said applications for amendments to a corporation’s articles of incorporation and by-laws can be made through the Electronic Application for Modification of Entity Data (eAMEND) portal starting today.
https://www.philstar.com/business/2024/02/23/2335360/sec-launches-online-portal-corporate-amendments
PLDT enters into $3-million settlement over US class action suit [GMA News Online, February 22, 2024]
In February last year, two individuals —Sophia Olsson and Kevin Douglas— filed separate motions against current and former officials of PLDT in a US court, alleging they incurred losses following PLDT’s disclosure of the budget overrun, calling on the court to award them reasonable costs and expenses incurred in the legal action.
ChatGPT experiences unprecedented meltdown, generates alarming and nonsensical responses [Inquirer.Net, February 22, 2024]
ChatGPT, the widely-used artificial intelligence language model developed by OpenAI, has undergone a bizarre malfunction, causing users to receive incoherent and alarming messages. Users have reported receiving responses that range from gibberish to nonsensical ramblings, raising concerns about the reliability and stability of the AI tool.
Citicore breaks ground for Negros solar project [The Philippine Star, February 22, 2024]
The Citicore Solar Negros Occidental 2 to be put up in Barangay Eustaquio Lopez, Silay City covers a land area of 69 hectares and can be expanded into a total gross installed capacity of 100 MWp.
https://www.philstar.com/business/2024/02/22/2335078/citicore-breaks-ground-negros-solar-project
Sky Cable, PLDT deal not pushing through [ABS-CBN News, February 22, 2024]
Sky Cable had earlier told its customers that it will transition into a dedicated internet service provider pursuant to the closing conditions of the PLDT-Sky Cable acquisition deal.
https://news.abs-cbn.com/business/2024/2/22/sky-cable-pldt-deal-not-pushing-through-816
JTI named top employer in Philippines for 3rd straight year [The Philippine Star, February 22, 2024]
JTI ensures that its employees and their families have the best-in-class support thanks to the likes of its progressive family leave policy, enabling eligible employees across the country to benefit from 20 weeks fully paid leave when welcoming a child, regardless of their gender, sexual orientation or the way they become parents.
SEC suspends corporate registration of almost 118,000 companies [ABS-CBN News, February 21, 2024]
The suspension order follows the conclusion of the SEC Amnesty Program, which gave non-compliant and suspended or revoked corporations a chance to recover their good standing by paying the reduced fees.
BGC-type business district eyed in Pampanga with new highway project [GMA News Online, February 21, 2024]
The 20-kilometer Airport to New Clark City Access Road (ANAR) project is expected to reduce travel time between Clark International Airport and New Clark City from one hour to 20 minutes. It will also be toll-free.
SC: Spouses who married SSS pensioners after date of disability can be beneficiaries [ABS-CBN News, February 21, 2024]
The Supreme Court stressed that the SSS provision was discriminatory against spouses who married pensioners after the latter qualified for their pension.
SEC upholds fines vs. NOW Corp. [GMA News Online, February 21, 2024]
The SEC fined NOW Corp. and Velarde for supposed misleading disclosures. According to the SEC, the case stemmed from NOW Corp.’s November 2021 disclosure that it has no knowledge on the details of the motion supposedly filed by the National Telecommunications Commission (NTC) before the Supreme Court against NOW Telecom Company Inc. since it is not party to the case.
https://www.gmanetwork.com/news/money/companies/898219/sec-upholds-fines-vs-now-corp/story/
SC’s ruling final: Estate of Disini to pay damages to gov’t for mothballed Bataan Nuclear Power Plant [Manila Bulletin, February 21, 2024]
The Supreme Court (SC) has affirmed with finality its 2021 decision that ordered the estate of the late businessman Herminio T. Disini, founder of the Herdis Group of Companies, to pay the government damages for the $2.3 billion mothballed Bataan Nuclear Power Plant (BNPP) in Morong, Bataan.
Suspension of PhilHealth contributions sought for minimum wage earners [The Philippine Star, February 21, 2024]
In House Resolution No. 1595, Marikina 2nd District Rep. Stella Luz Quimbo said that suspending the premium payment of minimum wage non-agriculture workers in the National Capital Region, for instance, would result in additional P400 increase in their daily salary.
Palace issues proclamations declaring special holidays [The Philippine Star, February 20, 2024]
Malacañang has issued proclamations declaring special non-working holidays in various parts of the country, mostly to commemorate their founding and cityhood anniversaries.
NYCB stock rout prompts US bank regulators to conduct health check [Inquirer.Net, February 20, 2024]
NEW YORK/WASHINGTON —U.S. banking regulators have been asking regional lenders whether they faced any fallout from the problems at New York Community Bancorp, several sources said, in a sign that worries about the health of the sector persist.
Eased forex rules to take effect this year [The Philippine Star, February 20, 2024]
Under the draft circular, the BSP plans to waive the charge on the registration of foreign, foreign currency loans, inward investments and other foreign exchange transactions.
https://www.philstar.com/business/2024/02/20/2334575/eased-forex-rules-take-effect-year
Pay hike for Davao Region workers, kasambahay approved—DOLE [Manila Bulletin, February 19, 2024]
Wage Order No. RB XI-22 dated Feb. 13, called for a P19 wage increase for minimum wage earners and another P19 starting Sept. 1.
https://mb.com.ph/2024/02/19/pay-hike-for-davao-region-workers-kasambahay-approved-dole
‘No video, no refund policy’ is illegal, DTI says [GMA News Online, February 17, 2024]
Online retailers utilize the “no video, no refund” policy so that customers will record themselves when they accept and open their orders. If the item turns out to be defective, only those with videos will be considered for a replacement or refund.
GCash gets BSP nod to enter Europe, ME [The Philippine Star, February 17, 2024]
As planned, GCash is headed to countries where thousands of OFWs are based, hoping to serve their financial needs, from as simple as buying load to as complex as remitting money.
https://www.philstar.com/business/2024/02/17/2333880/gcash-gets-bsp-nod-enter-europe-me
LIST: 10 most expensive subdivisions in Metro Manila [Manila Bulletin, February 14, 2024]
According to data from Lamudi, a leading real estate platform in the Philippines, here are the top 10 most expensive subdivisions in Metro Manila for the year 2024:
https://mb.com.ph/%202024/2/14/list-metro-manila-most-expensive-subdivisions
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