Marcos declares special non-working days in 5 areas
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [SEPTEMBER 26-OCTOBER 3]
- COURT OF TAX APPEALS CASES
I. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 26-OCTOBER 3]
- Quezon City launches bid for UNESCO ‘Creative City of Film’
- Salmon Group wants to boost Rural Bank of Sta. Rosa’s capital to P1.2-B by 2025
- Davao electric coop grilled over alleged power woes
- Presidential adviser warns of ‘3rd wave of war’ in Sulu after exclusion from BARMM
- 397-hectare Villar City land folded into Golden MV Holdings
- Bill seeking franchise for Elon Musk’s Starlink filed in Senate
- BIR: It’s up to digital services firms to raise prices after VAT law signing
- Chemrez sees ramped up orders amid higher coconut blend in diesel
- Foreign-owned shipping service in PH eyed to boost opportunities for Filipino seafarers
- New wage order takes effect today in Region VII
- SC: DPWH must pay firm P5.36M for rehab work
- Malacañang proclaims 19-ha new ecozone in Cavite
- BSP working to scrap inter-bank transaction fees
- Morbidity study being readied among HMOs for rate assessment
- South Korea’s Hanjin secures P16-B Cebu port project
- Sunlight Air to resume Manila-Coron flights with P688 promo fares
- PEZA: Indian firm planning to set up PH facilty
- PH banks fail to meet mandated lending to MSMEs, again
- Altenergy eyeing DoE green energy auctions
- DoubleDragon taps JPMorgan for Hotel101 expansion
- Marcos: Tarlac battery plant makes PH ‘player’ in global clean energy storage
- GSIS eyes DOF stake in Semirara
- Disinformation on Masungi a paid, coordinated attack – BBC report
- Marcos declares special non-working days in 5 areas
- ‘Dream come true’ as P8-B bridge spans Panguil Bay
- SC: Employer’s Insulting Words, Hostile Behavior Toward an Employee Constitute Constructive Dismissal
- Metro Pacific Health seals expansion in Agusan del Sur
- US, Japan, Korea commit P1.6 B to improve BARMM’s health services
- DOF readies tax administration plan for Bangsamoro government
- QC approves 2-year tax exemptions for new medium, large businesses
II. COURT OF TAX APPEALS CASES
INVALIDATION OF TAX ASSESSMENTS DUE TO LACK OF PROPER AUTHORITY
Petitioner Central Luzon Drug Corporation filed a Petition for Review seeking the cancellation of the assessment issued by the Respondent Commissioner of Internal Revenue (CIR). The Petitioner claimed that the assessments were invalid as the Revenue Officers (ROs) who conducted the audit were not properly authorized by a valid Letter of Authority (LOA) and that the audit was performed based on a mere Memorandum of Assignment (MOA), and not a valid LOA, following the reassignment of ROs. Moreover, the tax assessments were null and void due to the absence of a valid LOA authorizing the ROs to conduct the audit, as the law requires. The Petitioner relied on the jurisprudence established in Commissioner of Internal Revenue v. McDonald’s Philippines Realty Corp., which mandates an LOA for an audit. On the contrary, the Respondent argued that a LOA is unnecessary for ROs from Large Taxpayer Services (LTS) as their authority comes directly from the CIR’s organic powers under Section 6(a) of the National Internal Revenue Code (NIRC). The CIR also contended that an MOA is sufficient for reassigning ROs under Revenue Memorandum Order (RMO) No. 62-2010. In ruling, the Court held that the assessments were invalid. LOA is essential for conducting an audit, even when ROs are from the LTS. The MOA issued did not fulfill the legal requirement for authorizing an audit, making the tax assessments void. Consequently, the Court GRANTED resulting in the cancellation of the assessment. [CENTRAL LUZON DRUG CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10045, SEPTEMBER 10, 2024]
[A CORPORATION MUST INDICATE ITS INTENT TO REQUEST A TAX REFUND OR CLAIM A TAX CREDIT BY SELECTING THE APPROPRIATE OPTION IN THE ITR] [PROOF OF ACTUAL REMITTANCE OF TAXES TO THE BIR IS NOT INDISPENSABLE IN A CLAIM FOR REFUND OF EXCESS CWT]
Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review seeking partial reversal of the earlier Decision and Resolution of the Court in Division, granting the refund of the unutilized Creditable Withholding Tax (CWT) of the Respondent AZ Contracting System Service. The Petitioner insisted that the Respondent failed to prove that there was an erroneous or illegal assessment of taxes against it. Likewise, the Respondent failed to provide sufficient documents to prove the income claimed was declared in the Annual Income Tax Returns (ITR) and did not show evidence of actual remittance of withheld taxes to the BIR. On the other hand, the Respondent countered that the Petition should be denied because it merely repeats allegations already resolved in the previous Decision and Resolution. Additionally, the Respondent has partly demonstrated that the income subject to withholding taxes was declared as part of the gross income, and the documents outlined in Revenue Memorandum Order (RMO) No. 53-98 serve only as audit guidelines, not as mandatory requirements for supporting a tax credit or refund claim. In ruling, the Court held that proof of actual remittance is not required to claim a refund for unutilized tax credits, and the Petitioner cannot invoke the Respondent’s alleged non-compliance with RMO No. 53-98 as grounds to deny the tax refund or credit claim. Consequently, the Petition was DENIED for lack of merit. [CIR vs. AZ CONTRACTING SYSTEM SERVICE, CTA EB NO. 2757, AUGUST 30, 2024]
TAX EVASION CASE SHOULD BE DISMISSED IF THE PROSECUTION FAILS TO FILE IT WITHIN PRESCRIPTIVE PERIOD
Plaintiff-Appellant, the People of the Philippines, filed a Petition for Review against the Accused-Appellee, Ziegfried Loo Tian, challenging the dismissal of a case for violating Section 254 of the National Internal Revenue Code (NIRC) of 1997. The Accused was charged with attempting to evade payment of Value-Added Tax (VAT) for the second quarter of 2010. The Court dismissed the case on the grounds of prescription in December 2022, and the Plaintiff-Appellant’s Motion for Reconsideration (MR) was denied in March 2023. The Plaintiff-Appellant argued that the prescription had not set in, claiming that the discovery of the violation and the institution of judicial proceedings interrupted the prescriptive period. They also asserted that the Accused willfully attempted to evade VAT. In response, the Accused-Appellee argued that the government’s right to prosecute had prescribed under the NIRC’s five-year limitation, and that the delay in filing violated his right to a speedy disposition. In ruling, the Court held that the Plaintiff-Appellant’s MR was filed late, making the initial decision final and executory. Moreover, even if the Motion had been timely filed, the right to prosecute had prescribed, as the Information was filed in 2022, more than five (5) years after discovering the violation in 2012. Consequently, the Court DENIED the Petition and AFFIRMED the dismissal of the case. [PEOPLE OF THE PH VS ZIEGFRIED LOO TIAN, CTA EN BANC CRIMINAL CASE NO.118, AUGUST 29, 2024]
Quezon City launches bid for UNESCO ‘Creative City of Film’ [The Philippine Star, October 3, 2024]
UNESCO’s City of Film is part of the wider Creative Cities Network, which seeks to promote cooperation among cities recognized through various creative films.
Salmon Group wants to boost Rural Bank of Sta. Rosa’s capital to P1.2-B by 2025 [GMA News Online, October 3, 2024]
Financial services provider Salmon Group Ltd. on Thursday announced plans to infuse fresh investments into the Rural Bank of Sta. Rosa (Laguna) Inc., as it aims to bring the bank’s total capital to P1.2 billion by the end of 2025.
Davao electric coop grilled over alleged power woes [The Manila Times, October 3, 2024]
During a recent hearing of the panel, Nordeco expressed its disapproval of a bill that would expand the franchise of Davao Light and Power Co. to its coverage area, which involves 16 municipalities and two cities in Davao del Oro and Davao del Norte.
Presidential adviser warns of ‘3rd wave of war’ in Sulu after exclusion from BARMM [The Manila Times, October 2, 2024]
Presidential Adviser on Muslim Affairs Almarim Centi Tillah on Wednesday criticized the Supreme Court over its ruling that excluded Sulu from the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and warned that this could trigger “a third wave of war” in the province.
397-hectare Villar City land folded into Golden MV Holdings [Philippine Daily Inquirer, October 2, 2024]
Golden MV Holdings Inc., a real estate firm engaged in landbanking and developing estates led by Manuel Villar, has scored plots of land nearly six times the size of the Mall of Asia complex in a P5.2-billion deal meant to develop the company’s land bank within the Villar City “megalopolis.”
https://business.inquirer.net/483123/397-hectare-villar-city-land-folded-into-golden-mv-holdings
Bill seeking franchise for Elon Musk’s Starlink filed in Senate [GMA News Online, October 2, 2024]
Citing Republic Act 3846 or the Radio Control Act, Poe explained that gateway earth stations qualify as “radio stations” which requires legislative franchise.
BIR: It’s up to digital services firms to raise prices after VAT law signing [Inquirer.Net, October 2, 2024]
This law mandates a quarterly tax on foreign DSPs such as video streaming platforms, mobile applications, online advertising spaces, search engine services, and social networks, among others.
Chemrez sees ramped up orders amid higher coconut blend in diesel [GMA News Online, October 2, 2024]
Chemrez Technologies Inc., a wholly owned unit of specialty chemicals and foods ingredients maker D&L Industries, is boosting the operations of its coco-diesel plant in Batangas amid increased orders following the government’s order to increase the coco methyl ester (CME) blend in biodiesel.
Foreign-owned shipping service in PH eyed to boost opportunities for Filipino seafarers [interaksyon, October 2, 2024]
CNC’s Luzon Visayas Mindanao Express (LVMX) would support the establishment of new maritime routes and connect major sea ports in the country.
New wage order takes effect today in Region VII [Cebu Daily News, October 2, 2024]
Wage Order No. ROVII-2, published on September 16, 2024, provides for an increase of P33 to P43 per day in Region VII, including the Negros Island Region (NIR).
https://cebudailynews.inquirer.net/598278/new-wage-order-takes-effect-today-in-region-vii
SC: DPWH must pay firm P5.36M for rehab work [Philippine Daily Inquirer, October 1, 2024]
The case was based on the construction firm’s complaint over two contracts it entered into with the DPWH: one for the rehabilitation of the Gumain-Porac Division Channel for P2.7 million and another for the Abacan River cut-off channel in Manggahan Sto. Rosario, Mexico, Pampanga, worth P8.17 million.
https://newsinfo.inquirer.net/1988523/sc-dpwh-must-pay-firm-p5-36m-for-rehab-work
Malacañang proclaims 19-ha new ecozone in Cavite [Philippine Daily Inquirer, September 30, 2024]
The Philippine Economic Zone Authority (Peza) said on Monday that President Marcos had signed last month Proclamation Nos. 669 and 677, which formalize the expansion of the existing Gateway Business Park and creation of the National Development Company Industrial Estate in Cavite.
https://business.inquirer.net/482988/malacanang-proclaims-19-ha-new-ecozone-in-cavite
BSP working to scrap inter-bank transaction fees [GMA News Online, September 30, 2024]
The Bangko Sentral ng Pilipinas is now working with banks to scrap interbank transaction fees, as he said the reserve requirement ratio (RRR) could be reduced to 0% during the term of BSP governor Eli Remolona Jr., the central bank chief said on Monday.
Morbidity study being readied among HMOs for rate assessment [The Philippine Star, September 30, 2024]
A morbidity study among health maintenance organizations (HMOs) and insurance firms is underway in a bid to update the pricing and valuation of various financial products.
South Korea’s Hanjin secures P16-B Cebu port project [Philippine Daily Inquirer, September 30, 2024]
The Cebu port is set to rise on a 25-hectare reclaimed area in Brgy. Tayud, Consolacion. The project includes a berthing facility with a 500-meter quay wall length that can accommodate two 2,000 twenty-foot equivalent unit vessels; operating facilities and structures for containers; an access road and bridge; and a dredged waterway and turning basin.
https://business.inquirer.net/482784/south-koreas-hanjin-secures-p16-b-cebu-port-project
Sunlight Air to resume Manila-Coron flights with P688 promo fares [GMA News Online, September 30, 2024]
In an advisory, the carrier said it will restart its Manila-Busuanga route on October 27, 2024, which will operate daily between the Ninoy Aquino International Airport (NAIA) and the Francisco B. Reyes Airport in Busuanga.
PEZA: Indian firm planning to set up PH facilty [The Manila Times, September 30, 2024]
INDIAN pharmaceutical firm Aurobindo Pharma Ltd. plans to establish a facility in the Philippines to manufacture generic pharmaceuticals and active pharmaceutical ingredients (APIs), the Philippine Economic Zone Authority (PEZA) said last week.
PH banks fail to meet mandated lending to MSMEs, again [Philippine Daily Inquirer, September 30, 2024]
Rural and cooperative banks continued to do the heavy lifting in extending loans to micro, small and medium enterprises (MSMEs), as the entire Philippine banking industry failed again to meet its lending quota for the industry deemed as the backbone of the economy.
https://business.inquirer.net/482779/ph-banks-fail-to-meet-mandated-lending-to-msmes-again
Altenergy eyeing DoE green energy auctions [The Manila Times, September 30, 2024]
Magbanua said Alternergy had the assets to participate in the third round, referring to the company’s 174.4-megawatt (MW) Kiangan run-of-river hydro project in Ifugao, whose first phase is expected to come online by 2026.
DoubleDragon taps JPMorgan for Hotel101 expansion [The Philippine Star, September 30, 2024]
DoubleDragon Corp., the listed developer chaired by Edgar “Injap” Sia II, has tapped financial powerhouse JPMorgan for the global expansion of its Hotel101 brand.
https://www.philstar.com/business/2024/09/30/2389082/doubledragon-taps-jpmorgan-hotel101-expansion
Marcos: Tarlac battery plant makes PH ‘player’ in global clean energy storage [GMA News Online, September 30, 2024]
In New Clark City, Tarlac, Marcos led the inauguration of StB Giga Factory, which is dubbed as the Philippines’ first manufacturing plant for advanced Lithium Iron Phosphate (LFP) batteries.
GSIS eyes DOF stake in Semirara [The Philippine Star, September 30, 2024]
State-run Government Service Insurance System (GSIS) could end up buying the Department of Finance (DOF)’s stake in Consunji-led Semirara Mining and Power Corp. (SMPC).
https://www.philstar.com/business/2024/09/30/2388882/gsis-eyes-dof-stake-semirara
Disinformation on Masungi a paid, coordinated attack – BBC report [The Philippine Star, September 30, 2024]
BBC journalist Marc Silva uncovered around 100 Facebook accounts exhibiting troll-like behavior, actively working to tarnish the reputation Masungi Georeserve Foundation, the nonprofit that conserves the eco-tourism site. The accounts also simultaneously laud the Department of Environment and Natural Resources.
Marcos declares special non-working days in 5 areas [GMA News Online, September 29, 2024]
The holiday declarations were signed by Executive Secretary Lucas Bersamin, according to a media release from the Presidential Communications Office on Sunday.
‘Dream come true’ as P8-B bridge spans Panguil Bay [Philippine Daily Inquirer, September 28, 2024]
By reducing travel time between Tubod town in Lanao del Norte and Tangub City in Misamis Occidental from over two hours to just seven minutes, the bridge is expected to spur business growth in the northern and central Mindanao regions.
https://newsinfo.inquirer.net/1987762/dream-come-true-as-p8-b-bridge-spans-panguil-bay
SC: Employer’s Insulting Words, Hostile Behavior Toward an Employee Constitute Constructive Dismissal [Supreme Court, September 27, 2024]
The Supreme Court ruled in favor of Bartolome. It emphasized that actions demonstrating extreme dislike and hostile behavior, such as demotion, uttering insulting words, and apathetic behavior toward an employee, constitute constructive illegal dismissal when such actions cause the employment conditions to be so unbearable that there is no other choice but to resign.
Metro Pacific Health seals expansion in Agusan del Sur [The Philippine Star, September 27, 2024]
Metro Pacific Health Corp. (MPH), the healthcare arm of conglomerate Metro Pacific Investments Corp., has sealed its expansion in Agusan del Sur with the completion of its acquisition of San Francisco Doctors Hospital.
US, Japan, Korea commit P1.6 B to improve BARMM’s health services [Manila Bulletin, September 27, 2024]
The US Agency for International Development (USAID), the Japan International Cooperation Agency (JICA) and the Korea International Cooperation Agency (KOICA) have joined hands in a bid to advance Universal Health Care in the region.
https://mb.com.ph/2024/09/27/us-japan-korea-health-partnership
DOF readies tax administration plan for Bangsamoro government [Inquirer Business, September 26, 2024]
The tax administration transition plan addresses the shift of tax administration duties from the Bureau of Internal Revenue (BIR) to the Bangsamoro Revenue Office. It includes sharing the BIR’s registration and other pertinent systems in anticipation of the Bangsamoro Revenue Code’s enactment.
https://business.inquirer.net/482192/dof-readies-tax-administration-plan-for-bangsamoro-government
QC approves 2-year tax exemptions for new medium, large businesses [Inquirer.Net, September 26, 2024]
Under the ordinance, new medium and large enterprises with an asset size of above Php 15 million excluding land value, may apply for a two-year exemption from business tax, amusement tax, franchise tax, and real property tax on registered land and new buildings constructed within two years from registration.
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