TAX & BUSINESS-RELATED NEWS [APRIL 25-26] SUPREME COURT CASES DIGEST TAX & BUSINESS-RELATED NEWS [APRIL 19-24] BIR CLARIFIES THE FILING & PAYMENT OF FRANCHISE TAX RETURN FOR PAGCOR LICENSEES BIR PARTLY AMENDS RMC 24-2022 TO ALIGN WITH THE PROVISIONS OF CREATE LAW
| 1. TAX & BUSINESS-RELATED NEWS [APRIL 25-26] | | PH ripe for more investments from United States, says envoy Twitter CEO tells employees company is in the dark over future under Musk SM shopping malls seen moving closer to prepandemic vibrancy Phishing attempts in PH dropped in ’21, says Kaspersky MREIT pledges value appreciation beyond dividends PAL’s door-to-door cargo delivery coming in next 2 months Concern over slowing remittances growth rising Power Beacon earmarks P3.9B for renewables Duterte administration obtains 22 WB loans amounting to $7.5 B PH among ADB, WB top borrowers in 2021 Cerberus shipyard to benefit PH Gov’t to slash prices of 5 smuggled luxury cars at another auction bid Villar group plans 3 IPOs in 2022 IPOPHL urges youth to reject digital piracy New arrest order vs 'Yanson 4' out PNB bids out foreclosed Manila land to ICTSI for P3.7B
| We saw these tax and business-related news on various news sites, and we thought you should see them. DMD is not responsible for the content of these news, and anything written thereon does not necessarily reflect DMD views or opinions. | PH ripe for more investments from United States, says envoy [Inquirer Mobile, April 26, 2022] The Philippines is ripe for more foreign direct investments from the United States, after the Duterte administration passed economic reforms that essentially made it easier for foreigners to do business here, an envoy said. Twitter CEO tells employees company is in the dark over future under Musk [Inquirer.Net, April 26, 2022] Twitter Chief Executive Parag Agrawal told employees on Monday that the future of the social media firm is uncertain after the deal to be taken private under billionaire Elon Musk closes. SM shopping malls seen moving closer to prepandemic vibrancy [Inquirer Mobile, April 26, 2022] SM Prime’s revenues and profit in 2021 were higher than the previous year. However, these were still down by 30.4 percent and 42.8 percent, respectively, from levels in 2019—the year before the COVID-19 pandemic. Phishing attempts in PH dropped in ’21, says Kaspersky [Inquirer Mobile, April 26, 2022] The Philippines was the most hit by phishing attacks last year in Southeast Asia, according to cybersecurity firm Kaspersky, although to a lesser degree than in 2020. MREIT pledges value appreciation beyond dividends [Inquirer Mobile, April 26, 2022] “We firmly believe that the benefit to MREIT investors goes beyond the dividend that they will get as we target to deliver a total return of at least 10 percent per annum over the next three years,” Tan said in a statement on Monday. PAL’s door-to-door cargo delivery coming in next 2 months [Inquirer Mobile, April 26, 2022] Flag carrier Philippine Airlines (PAL) will soon land on the doorsteps of its customers with the launch of last-mile cargo delivery services, a segment that has been growing due to the e-commerce boom during the pandemic. Concern over slowing remittances growth rising [Inquirer Mobile, April 26, 2022] “Remittances in the Philippines disappointed in February, with growth slowing to 1.3 percent year-over-year, from 2.5 percent in January. Not only was the result off the mark against the 3.6-percent consensus, but it also represented the weakest print in over a year,” Pantheon Macroeconomics chief emerging Asia economist Miguel Chanco noted in a report Monday. Power Beacon earmarks P3.9B for renewables [Inquirer Mobile, April 25, 2022] Energy firm Power Beacon Renewable Solutions Inc. is setting aside P3.9 billion to undertake various solar and hydro projects in Luzon. Duterte administration obtains 22 WB loans amounting to $7.5 B [Manila Bulletin, April 25, 2022] The Duterte administration has sealed 22 loan agreements with the World Bank Group (WBG) in the past five-years, bulk of which were used to help finance to country’s war chest against the Covid-19 pandemic, the Department of Finance (DOF) reported. PH among ADB, WB top borrowers in 2021 [Inquirer Mobile, April 25, 2022] The Asian Development Bank (ADB) extended to the Philippines — its host-country — a total of $2.79 billion in financial assistance last year, the fifth biggest among its member-countries. Cerberus shipyard to benefit PH [The Manila Times, April 25, 2022] AMERICAN firm Cerberus Frontier's takeover of the former Hanjin shipyard in Subic, Zambales will benefit all stakeholders as it will retain and create more jobs and serve the requirements of both the military and the private sector, Finance Secretary Carlos Dominguez 3rd said. Gov’t to slash prices of 5 smuggled luxury cars at another auction bid [Inquirer Mobile, April 25, 2022] The five used cars included a 2008 Ferrari Scuderia 430, which now has a minimum floor price of P11.6 million or more than half lower than the previous P23.2-million floor and also a 2001 Porsche Boxster, which the BTr, the BOC and Landbank will sell for at least P898,981.08, down from P1.79 million previously. Villar group plans 3 IPOs in 2022 [BusinessWorld, April 25, 2022] THE Villar group is targeting three initial public offerings (IPOs) this year, with its real estate investment trust (REIT), coffee shop business, and power company, its top official said. IPOPHL urges youth to reject digital piracy [Inquirer Mobile, April 25, 2022] The Intellectual Property Office of the Philippines (IPOPHL) wants the youth to reject digital piracy, as a 2021 survey pointed to how this demographic is most likely to illegally download content, more than any other age group. New arrest order vs 'Yanson 4' out [The Manila Times, April 25, 2022] A REGIONAL trial court (RTC) in Bacolod City has instructed law enforcers to arrest four Yanson siblings for qualified theft in connection with the loss last August 2019 of company properties and assets owned by Vallacar Transit Inc. (VTI), a firm under the Yanson Group of Bus Companies. PNB bids out foreclosed Manila land to ICTSI for P3.7B [Inquirer Mobile, April 25, 2022] The land was an industrial lot and building within the Manila Harbour Centre Industrial zone in Tondo, Manila. It had a minimum bid price of P3.2 billion or P100,000 per square meter. | 2. SUPREME COURT CASES DIGEST ON RDO's AUTHORITY TO ISSUE FINAL DECISION ON DISPUTED ASSESSMENT, JUDICIAL CLAIM ON INPUT VAT REFUND & SSS COVERAGE OVER RELIGIOUS MINISTERS | [JUDICIAL CLAIMS FILED DURING THE WINDOW PERIOD FROM 10 DECEMBER 2003 TO 6 OCTOBER 2010, NEED NOT WAIT FOR THE EXHAUSTION OF THE 120-DAY PERIOD] [NO PREMATURE FILING PURSUANT TO 120+30 DAY RULE] Petitioner Harte-Hanks Philippines, Inc. filed a Petition for Review on Certiorari seeking reversal of the CTA’s earlier decision affirming Respondent Commissioner of Internal Revenue’s Motion to Dismiss on the ground of premature filing. Petitioner argued that the premature filing of the judicial claim for refund is not jurisdictional but merely constitutes failure to state a cause of action. Earlier, on June 29, 2010, Petitioner filed a Petition for Review with the CTA, praying for the refund representing excess input value-added tax (VAT) attributable to zero-rated sales. In ruling, the general rule under Section 112(C) of the Tax Code, as explained in Aichi case, is clear, plain, and unequivocal. The observance of the 120 and 30-day periods is crucial in filing a judicial appeal before the CTA. However, there is an exception to this general rule. BIR Ruling No. DA-489-03, a general interpretative rule, expressly states that the taxpayer-claimant need not wait for the lapse of the 120-day period before it could seek judicial relief with the CTA. The Court emphasized that, although Petitioner did not actually invoke BIR Ruling No. DA-489-03 in any of its pleadings to justify the timeliness of its judicial claim with the CTA, the BIR Ruling applies to all taxpayers who filed their judicial claims within the window period of December 10, 2003 to October 6, 2010, or from the time of its issuance up to its reversal in the Aichi case. The CTA, therefore, has jurisdiction over the judicial claim filed by Petitioner. Thus, the Petition was GRANTED. [HARTE-HANKS PHILIPPINES, INC., G.R. NO. 205189, MARCH 7, 2022, UPLOADED APRIL 18, 2022] [RDO IS NOT AUTHORIZED TO ISSUE FDDA] [VOID FDDA IS CONSIDERED INACTION BY THE CIR THAT IS APPEALABLE TO THE CTA] Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review on Certiorari assailing the Court of Tax Appeals (CTA) En Banc’s Decision and Resolution affirming the CTA Division’s Decision and Resolution that reduced the deficiency tax liability of Respondent Tyco Information Solutions Corporation. Petitioner averred that the CTA has no jurisdiction to review the letter of Revenue District Officer (RDO) Dumayas, hence, it should have dismissed outright the Respondent’s Petition. In ruling, the Court found an error in the CTA when it ruled that RDO Dumayas was clothed with authority to issue the final decision of the BIR in disputed assessments to be appealed to the CTA. Consistent with Revenue Administrative Order No. 10-00, RDO Dumayas was merely authorized to conduct factual verification of Respondent’s protest and thereafter, submit a report on the result of the investigation to the Regional Office. No authority was given to RDO Dumayas to issue the final decision. Accordingly, the letter from RDO Dumayas stating that the same is the BIR’s final decision on Respondent’s protest, hence, Respondent should appeal to the CTA within 30 days from receipt to prevent the assessment from becoming final and executory, is void for lack of authority. It is not a valid final decision of the CIR or his duly authorized representative subject for review by the CTA. Nonetheless, the CTA has authority to evaluate the assessment issued against Respondent as the void letter is tantamount to inaction by the CIR or his duly authorized representative in disputed assessments, which is appealable to the CTA. The Court emphasized that a void final decision on a disputed assessment means that as if no decision was rendered by the CIR or his duly authorized representative. Thus, the CTA would still have jurisdiction to review the tax assessment as the CTA is conferred with authority to review not only decisions but also inactions of the CIR in disputed assessments. Corollary, the CTA did not commit any reversible error in taking cognizance of Respondent’s Petition. Hence, the Petition was DENIED. [COMMISSIONER OF INTERNAL REVENUE VS. TYCO INFORMATION SOLUTIONS CORPORATION, G.R. NO. 241422-23, NOVEMBER 11, 2021, UPLOADED APRIL 4, 2022] [AN EMPLOYER-EMPLOYEE RELATIONSHIP MAY EXIST BETWEEN A RELIGIOUS ORGANIZATION & ITS MINISTERS] [SSS LAW ALSO COVERS RELIGIOUS ORGANIZATION] Petitioner The Salvation Army filed a Petition for Review on Certiorari seeking for the cancellation of the earlier Decision of Court of Appeals (CA). Petitioner argued that CA committed a serious error of law in affirming the ruling of the Social Security System (SSS), denying the request for retroactive conversion of the coverage status of Salvation Army officers (religious ministers) from employee members to non-employee members. In ruling, the provisions of the Labor Code and its Implementing Rules and Regulations encompass religious institutions. The nature of these associations does not bar the formation of an employer-employee relationship. Republic Act (R.A.) No. 1161 or the Social Security Law, as amended by R.A. No. 8282 provides that the "coverage in the SSS shall be compulsory upon all employees not over sixty years of age and their employers.” In denying the Petition, the Court held that the term "employer" as used in the Social Security Law is "sufficiently comprehensive enough as to include religious and charitable institutions or entities not organized for profit" particularly as they are not included in the list of exceptions expressly stated under the same law. The Court recognized in another case that an employer-employee relationship may exist between a religious organization and its ministers, judged on the basis of the institution's bylaws and other surrounding circumstances in relation to the four-fold test, namely: (a) selection and engagement of the employee; (b) payment of wages; (c) power of dismissal; and (d) power to control. Upon examination, the Court found that an employer-employee relationship exists between the Petitioner and its ministers. Moreover, the coverage of a religious institution, such as Petitioner, in the SSS does not violate the non-establishment clause of the Constitution. Consequently, the Petition was DENIED, and the earlier Decision and Resolution were AFFIRMED. [THE SALVATION ARMY VS. SOCIAL SECURITY SYSTEM, G.R. NO. 230095, SEPTEMBER 15, 2021, UPLOADED APRIL 1, 2022] | 3. TAX & BUSINESS-RELATED NEWS [APRIL 19-24] | | Person filmed burning banknote faces criminal complaints: BSP Shanghai economy slows as COVID hits industry, retail 6 bus firms face disfranchisement PSALM narrows outstanding financial obligations Highest paying banks: BPI grabs top spot from Metrobank, UBP leapfrogs BDO to No. 3; PNB still bottom Peza pays P 898M in dividends to national gov’t PH, India to sign agreement on customs matters; Locsin visits New Delhi Vaccination, int’l tourism to boost Solaire casinos World's largest vaccine maker halts AstraZeneca jab production Megawide banks on revenge travel to hasten comeback Revitalised Angkor Wat brings hope for Cambodia tourism recovery Robinsons Land transfers P5.9B Ortigas building to REIT firm Google fined over Ukraine videos BPOs in PEZA: What fiscal incentives do they get? Students urged to get PhilHealth insurance coverage 61% of PH consumers access piracy sites – study Palo Alto Networks’ Unit 42 releases 2022 Ransomeware Threat report Next admin should avoid more debt—DOF Dead SSS members’ legal spouses urged to file benefits claims online BSP publishes memorandum for cyber fraud and attacks on retail electronic payments and financial services Making a killing from ABS-CBN’s death: Felipe Gozon, other GMA directors more than triple their perks to P252M during two-year pandemic
| We saw these tax and business-related news on various news sites, and we thought you should see them. DMD is not responsible for the content of these news, and anything written thereon does not necessarily reflect DMD views or opinions. | Person filmed burning banknote faces criminal complaints: BSP [ABS-CBN News, April 24, 2022] The Bangko Sentral ng Pilipinas (BSP) and the Philippine National Police (PNP) have filed a criminal complaint against a person who was caught on video burning a banknote, the central bank said Sunday. Shanghai economy slows as COVID hits industry, retail [Inquirer Mobile, April 24, 2022] The economy of Shanghai, China’s most populous city, slowed in the first quarter from the end of 2021, hurt by rare declines in industrial output and retail sales that were hammered by the country’s most serious COVID outbreak. 6 bus firms face disfranchisement [Philippine Daily Inquirer, April 23, 2022] Maria Kristina Cassion, executive director of LTFRB, said the show cause orders had already been received by Victory Liner Inc., Bataan Transit Bus Co. Inc., Five Star Bus Co. Inc., First North Luzon Transit Inc. and Maria De Leon Transit. PSALM narrows outstanding financial obligations [Inquirer Mobile, April 23, 2022] The state-run Power Sector Assets and Liabilities Management Corp. (PSALM) has reduced its financial obligations by P182.8 billion so far during the Duterte administration, the Department of Finance (DOF) said on Friday. Highest paying banks: BPI grabs top spot from Metrobank, UBP leapfrogs BDO to No. 3; PNB still bottom [Bilyonaryo, April 23, 2022] BPI president and CEO Teddy Limcaoco and four other top execs received P261 million in salaries and bonuses in 2021, up three percent from P254 million the previous year. Peza pays P 898M in dividends to national gov’t [Inquirer Mobile, April 23, 2022] The Philippine Economic Zone Authority (Peza) said it turned over more than P898 million worth of dividends to the national government in 2021, as the investment promotion agency continues to remit half of its income, as required by law. PH, India to sign agreement on customs matters; Locsin visits New Delhi [Manila Bulletin, April 23, 2022] According to the DFA, the two foreign ministers are expected to discuss follow-up actions on various areas of cooperation, particularly on defense, maritime, health, and trade and investments. They will likewise exchange views on regional and international developments. Vaccination, int’l tourism to boost Solaire casinos [Inquirer Mobile, April 23, 2022] Ports and gaming tycoon Enrique Razon Jr. is banking on higher vaccination rates and looser international travel restrictions to bring his casino business back in the black. World's largest vaccine maker halts AstraZeneca jab production [Manila Bulletin, April 23, 2022] The world’s largest vaccine maker, the Serum Institute of India, has halted production of the locally made version of the AstraZeneca Covid-19 vaccine due to falling demand, its chief executive said Friday. Megawide banks on revenge travel to hasten comeback [Inquirer Mobile, April 23, 2022] Citing International Air Transport Association data, Megawide executive director for infrastructure development Louie Ferrer said MCIA would also benefit from the anticipated revenge spending as global air travel was seen to reach 80 percent to 90 percent of prepandemic levels until next year. Revitalised Angkor Wat brings hope for Cambodia tourism recovery [Manila Bulletin, April 22, 2022] Hopes are high that the temple complex, recently revitalised from repair work, will spearhead a recovery in tourism after the Southeast Asian nation began re-opening to travellers last November. Robinsons Land transfers P5.9B Ortigas building to REIT firm [Inquirer Mobile, April 22, 2022] RL Commercial REIT Inc. is taking over the P5.9 billion Robinsons Cyberscape Gamma building in the Ortigas business district, which would boost its portfolio and dividend payout to investors. Google fined over Ukraine videos [The Manila Times, April 22, 2022] A Moscow court on Thursday slapped a series of small fines on Google for failing to take down contentious YouTube videos about Russia's invasion of Ukraine. BPOs in PEZA: What fiscal incentives do they get? [Yugatech, April 22, 2022] Among the most cited laws governing the framework for BPO firms operating in PEZA would be Republic Act No. 7844 (Export Development Act), Republic Act No. 7916 (Special Economic Zone Act), and Republic Act No. 11534 (CREATE Act). The following would attempt to summarize some of the incentives BPOs may have to let go if they choose to move away from ecozones. Students urged to get PhilHealth insurance coverage [The Manila Times, April 22, 2022] SEN. Christopher Lawrence "Bong" Go called on the government to make it simpler for college students to attend face-to-face classes, as he urged students to take advantage of Philippine Health Insurance Corp.'s (PhilHealth) insurance coverage, which is granted under Republic Act 11223 or the Universal Health Care Law. 61% of PH consumers access piracy sites – study [Manila Bulletin, April 21, 2022] The number of consumers in the Philippines that are accessing piracy sites for movies has grown to 61 percent from only 49 percent, according to a study. Palo Alto Networks’ Unit 42 releases 2022 Ransomeware Threat report [Manila Bulletin, April 21, 2022] Ransomware payments hit new records in 2021 as cybercriminals increasingly turned to Dark Web “leak sites” where they pressured victims to pay up by threatening to release sensitive data, according to research released today from Unit 42 by Palo Alto Networks. Next admin should avoid more debt—DOF [Manila Bulletin, April 21, 2022] Dominguez pronouncement comes after the DOF revealed that it would take up to 40-years to payoff all the additional foreign debt, amounting to at least P1.3 trillion, incurred by the Duterte administration since 2020. Dead SSS members’ legal spouses urged to file benefits claims online [Philippine Daily Inquirer, April 20, 2022] Legal spouses of Social Security System (SSS) members who passed away now need to file death benefits claims online, the state-run pension fund said. BSP publishes memorandum for cyber fraud and attacks on retail electronic payments and financial services [Manila Bulletin, April 20, 2022] To counter these attacks, the Bangko Sentral ng Pilipinas (BSP) has published their Memorandum No. M-2022-015, with the subject: Recommended Control Measures Against Cyber Fraud and Attacks on Retail Electronic Payments and Financial Services. Making a killing from ABS-CBN’s death: Felipe Gozon, other GMA directors more than triple their perks to P252M during two-year pandemic [Bilyonaryo, April 19, 2022] Based on its charter, the GMA board are allowed to allocate for themselves up to 2.5 percent of the media giant’s net profits of which one percent would be distributed share and share alike among the nine directors and the balance of 1.5 percent to be divided equally among members of the executive committee (made up of GMA owners Gozon, president and COO Gilberto Duavit Jr. and Joel Marcelo Jimenez). | 4. BIR CLARIFIES THE FILING & PAYMENT OF FRANCHISE TAX RETURN FOR PAGCOR LICENSEES | Revenue Memorandum Circular (RMC) No. 52-2022, issued on April 22, 2022, clarifies the filing and payment date of the franchise tax and its corresponding return for Philippine Amusement and Gaming Corporation (PAGCOR) Licensees. It may be recalled that under RMC No. 32-2022, the BIR has clarified that the 5% franchise tax is directly payable to the BIR, and that the Licensee shall remit the franchise tax to the BIR using BIR Form 2553 indicating the Alphanumeric Tax Code (ATC) OT 010. As further clarified, the said BIR Form shall be filed and the corresponding franchise tax shall be paid within 25 days after the end of each taxable quarter. | 5. BIR PARTLY AMENDS RMC 24-2022 TO ALIGN WITH THE PROVISIONS OF CREATE LAW | Revenue Memorandum Circular (RMC) No. 49-2022, issued on April 20, 2022, amends pertinent portion of the Q & A in RMC No. 24-2022 to align them with the provisions of Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act and its Implementing Rules and Regulations (IRR). a. Work-around procedures, as a result of the deferment of Revenue Regulations (RR) No. 9-2021 related to the imposition of 12% VAT on certain transactions previously subjected to 0% VAT, also applies to other affected taxpayers and not limited to sales to registered export enterprises and domestic market enterprises (DMEs) within Ecozones and Freeport Zones. b. Qualifications on the entitlements of registered non-export locators (prior to CREATE Law) or domestic market enterprises (DMEs as introduced in CREATE Law) located in Ecozones and Freeport Zones shall be dependent on their date of registration, whether prior to or during the effectivity of the CREATE Law. c. Work-around procedures for existing registered export enterprises transitioning from Income Tax Holiday (ITH) to 5% Special Corporate Income Tax (SCIT) but remained as VAT-registered. d. Clarifications on prior approval from the BIR by local suppliers of goods and services of registered export enterprises in order to qualify for VAT zero-rating. | DOWNLOAD OUR PAST EDITIONS & FULL TEXT OF REFERENCES https://weeklytaxupdates.getresponsesite.com/ | |
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