Subject: WEEKLY TAX UPDATES [FEB 6] DOJ clears Bren Esports founder of falsification charges

WEEKLY TAX UPDATES

FEBRUARY 6

  1. TAX & BUSINESS-RELATED NEWS [JANUARY 30-FEBRUARY 6]

  2. BIR CLARIFIES THE TREATMENT OF FOREIGN CURRENCY TRANSACTIONS FOR FINANCIAL REPORTING & INTERNAL REVENUE TAX PURPOSES

  3. BIR CLARIFIES THE TAX TREATMENT OF LEASE ACCOUNTING UNDER PFRS & TAX CODE

  4. SUPREME COURT DECISION ON FALSE RETURN & 10-YEAR PRESCRIPTIVE PERIOD

1. TAX & BUSINESS-RELATED NEWS [JANUARY 30-FEBRUARY 6]

1. Brunei to outsource IPOPHL patent services

2. PNP wants property owners liable for tenants’ crimes

3. PhilHealth to give higher benefit packages effective Feb. 14

4. Groups urge, caution Recto on wealth tax

5. Canada extends ban on foreign ownership of housing by two years

6. Salceda files bill to amend Electric Vehicle Industry Development law

7. From P9 million to P1.6 billion in ghost receipts: BIR jacks up tax liability of Dioceldo Sy’s Ever Bilena

8. New rules on Service Charge Law out

9. DOLE: Wages of domestic workers in Calabarzon to increase by P1,000

10. Depths of rental crises in Australia revealed: Sydney landlord hikes rent by $1,200 a week on school teacher tenant and his two housemates

11. ‘Content creation’ now among Tesda courses

12. After the CNN Philippines Shutdown, TV5 Takes Over Channel 9

13. ICTSI sells subsidiary, settles labor dispute

14. Duck farming in Central Luzon gets big boost

15. Taguig partners with DOST – PTRI for textile livelihood project

16. DOJ clears Bren Esports founder of falsification charges

17. 3 Northern Luzon cities named ‘ASEAN Clean Tourist Cities’

18. Recto to SEC: Help enhance tax collection

19. May trauma na? Villar scraps bond sale as demand disappoints

20. Manny Pangilinan’s movie gambles: After ‘GomBurZa’ win, it’s PH’s first esports film ‘Good Game’

21. Mining firm’s planned expansion threatens Benguet village

22. Cebu sticks with Razon’s Manila Water for supply

23. Did you know? Harvard University is offering 143 online courses for free

DISCLAIMER!

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.

Brunei to outsource IPOPHL patent services [The Philippine Star, February 6, 2024]

Under the agreement, IPOPHL’s Bureau of Patents will also accept re-examination, provide opinions in response to an opposition over an amendment to a patent and extend capacity-building activities to help BruIPO adopt international best practices in patent search and examination.


PNP wants property owners liable for tenants’ crimes [The Philippine Star, February 5, 2024]

In an interview over dzBB, PNP-ACG cyber response unit chief Col. Jay Guillermo highlighted the challenges faced by law enforcement when investigating illegal activities in rented spaces, particularly those involving love scams and cybercrimes.

 

PhilHealth to give higher benefit packages effective Feb. 14 [Philippine Daily Inquirer, February 5, 2024]

Under PhilHealth Circular No. 2024-001, signed on Jan. 29 by its president and CEO Emmanuel Ledesma Jr., PhilHealth adopted an inflation adjustment factor of 30 percent for existing case rates to account for price changes over the past decade.

 

Groups urge, caution Recto on wealth tax [The Philippine Star, February 5, 2024]

Finance Secretary Ralph Recto should consider taxing the wealthy if he is hell-bent on widening the country’s fiscal space, but such a move may boomerang and cost him his political goals, if any, yet again.


Canada extends ban on foreign ownership of housing by two years [Inquirer.Net, February 5, 2024]

Canada on Sunday announced a two-year extension to a ban on foreign ownership of Canadian housing, saying the step was aimed at addressing worries about Canadians being priced out of housing markets in cities and towns across the country.

 

Salceda files bill to amend Electric Vehicle Industry Development law [The Manila Times, February 5, 2024]

House Bill 9573 will revamp the tax and duty system of electric vehicles (EVs) and will redefine EVs to include two-wheeled vehicles.

 

From P9 million to P1.6 billion in ghost receipts: BIR jacks up tax liability of Dioceldo Sy’s Ever Bilena [Bilyonaryo, February 4, 2024]

BIR Commissioner Romeo “Jun” Lumagui said that following a comprehensive investigation, the agency’s Run After Fake Transactions (RAFT) task force uncovered approximately P1.6 billion in total liability by Ever Bilena.

 

New rules on Service Charge Law out [The Manila Times, February 4, 2024]

THE Department of Labor and Employment (DoLE) has issued the implementing rules and regulations (IRR) of Republic Act (RA) 11360, or the "Service Charge Law," that provides for the full and equal distribution of service charges among workers of hotels, restaurants and other establishments.

 

DOLE: Wages of domestic workers in Calabarzon to increase by P1,000 [Inquirer.Net, February 3, 2024]

omestic workers in Region 4A or Calabarzon are set to enjoy a wage increase after the Department of Labor and Employment (DOLE) announced on Saturday that it issued a salary increase order on January 22.

 

Depths of rental crises in Australia revealed: Sydney landlord hikes rent by $1,200 a week on school teacher tenant and his two housemates [MailOnline, February 3, 2024]

Over the last year, the median rental listing price had ballooned by 11.5 per cent to $580 per week, fuelled by limited demand.

 

‘Content creation’ now among Tesda courses [Philippine Daily Inquirer, February 3, 2024]

The Technical Education and Skills Development Authority (Tesda) has added “content creation” to its list of courses that vocational training centers can adopt and offer, in response to the emergence of online platforms as a lucrative source of income.


After the CNN Philippines Shutdown, TV5 Takes Over Channel 9 [Esquire Philippines, February 3, 2024]

MediaQuest Holdings, which operates TV5, collaborates with Radio Philippines Network Inc. The two made the launch of RPTV official in a recent press announcement. RPTV on Channel 9 on free television will now be dedicated to sports, news, and entertainment. The said firm also owns Radyo5, One News, One Sports, One PH, Sari-Sari Channel, and The Varsity Channel, among others.

 

ICTSI sells subsidiary, settles labor dispute [The Manila Times, February 3, 2024]

INTERNATIONAL Container Terminal Services Inc. (ICTSI) has completed the sale of its 80.19-percent stake in PT ICTSI Jasa Prima Tbk, its listed subsidiary in Indonesia, to PT Sarana Kelola Investa, for a consideration of $2 million.

 

Duck farming in Central Luzon gets big boost [The Manila Times, February 3, 2024]

ITIK PINAS — a genetically superior breeder duck developed in a project conducted by the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development of the Department of Science and Technology — got a big boost in time when demand for duck products and eggs is growing.

 

Taguig partners with DOST – PTRI for textile livelihood project [Inquirer.Net, February 2, 2024]

Taguig City has partnered with the Department of Science and Technology – Philippine Textile Research Institute (DOST-PTRI) for a livelihood program for city residents.

 

DOJ clears Bren Esports founder of falsification charges [Spin.Ph, February 1, 2024]

Concerning the charge of printing fraudulent receipts or sales invoices under the National Internal Revenue Code (NIRC), the prosecutors said there is no authorization from the Bureau of Internal Revenue (BIR) Commissioner to file a case.

 

3 Northern Luzon cities named ‘ASEAN Clean Tourist Cities’ [The Philippine Star, February 1, 2024]

Baguio City in Benguet, Ilagan City in Isabela and Tabuk City in Kalinga were bestowed the Clean Tourist City awards during the Association of Southeast Asian Nations (ASEAN) Tourism Standard Awards in Vientiane, Laos last week.

 

Recto to SEC: Help enhance tax collection [The Manila Times, February 1, 2024]

In a statement on Wednesday, the SEC said Recto "specifically urged" the commission to collaborate with tax authorities to streamline data sharing between the two agencies, in line with efforts to "enhance tax collection efficiency."

 

May trauma na? Villar scraps bond sale as demand disappoints [Bilyonaryo, January 31, 2024]

The anemic appetite was also attributed to past negative experiences when Villar’s C&P Homes defaulted on $150 million worth of floating rate notes in 1999. The peso’s devaluation and a cash crunch compelled the former senator to reorganize his extensive property empire.

 

Manny Pangilinan’s movie gambles: After ‘GomBurZa’ win, it’s PH’s first esports film ‘Good Game’ [Rappler, January 31, 2024]

A week after opening in cinemas, MQuest Ventures and Mediaworks' movie, GG, falters at the box-office. As of Thursday, February 1, only a few cinemas were showing the Philippines’ first full-length esports movie.

 

Mining firm’s planned expansion threatens Benguet village [Rappler, January 31, 2024]

Myline Sabiano, a member of the Ampucao barangay council, became emotional as she shared the concerns of Dalicno residents about Itogon-Suyoc Resources, Incorporated’s plan to expand its Sangilo mines operation during their audience with Itogon mayor Bernard Waclin on January 29.

 

Cebu sticks with Razon’s Manila Water for supply [Inquirer Mobile, January 31, 2024]

Razon-led Manila Water Co. Inc. will finally provide supply for the Metropolitan Cebu Water District (MCWD), this time through Manila Water Philippine Ventures Inc. (MWPV), two months after the cancellation of a previous contract executed by another subsidiary.

 

Did you know? Harvard University is offering 143 online courses for free [The Philippine Star, January 30, 2024]

They are classified into three difficulty levels—introductory, intermediate, and advance—with 12 subject areas including arts and design, business, computer science, data science, education and teaching, health and medicine, humanities, theology, mathematics, programming, science, and social sciences.

2. BIR CLARIFIES THE TREATMENT OF FOREIGN CURRENCY TRANSACTIONS FOR FINANCIAL REPORTING & INTERNAL REVENUE TAX PURPOSES

Revenue Memorandum Circular (RMC) No. 12-2024 issued on January 22, 2024, clarifies the difference between the treatment of foreign exchange (forex) gains/losses recognized in the financial statements prepared under the Philippine Financial Reporting Standards (PFRS)/Philippine Accounting Standards (PAS) and the forex gains/losses recognized as income or allowable deductions for income tax purposes pursuant to 1997 Tax Code, as amended, and related revenue issuances.

3. BIR CLARIFIES THE TAX TREATMENT OF LEASE ACCOUNTING UNDER PFRS & TAX CODE

Revenue Memorandum Circular (RMC) No. 11-2024 issued on January 22, 2024, clarifies the tax treatment of lease accounting by lessees under Philippine Financial Reporting Standard (PFRS) 16 in relation to the provisions of Sections 34(A), 34(K), 106, 108, 179, 194 of the 1997 Tax Code, as amended, and Revenue Regulations (RR) No. 19-86, as amended, and RR No. 02-98, as amended.

4. SUPREME COURT DECISION ON FALSE RETURN & 10-YEAR PRESCRIPTIVE PERIOD

[A FALSE RETURN, FOR THE PURPOSE OF INVOKING THE 10-YEAR PRESCRIPTIVE PERIOD, MUST BE INTENTIONAL & DONE WITH THE INTENT TO EVADE TAX] [THE LAW ON PRESCRIPTION SHOULD BE LIBERALLY INTERPRETED IN FAVOR OF TAXPAYERS & EXCEPTIONS TO THE STATUTE OF LIMITATIONS SHOULD BE STRICTLY CONSTRUED] [THE BURDEN OF PROVING THE FILING OF A FALSE RETURN WITH INTENT TO EVADE TAX RESTS UPON THE BIR]

Petitioner McDonald’s Philippines Realty Corporation filed a Petition for Review on Certiorari under Rule 45 assailing the Court of Tax Appeals (CTA) En Banc’s earlier Decision and Resolution which upheld with modifications the Final Decision on Disputed Assessment of Respondent Commissioner of Internal Revenue (CIR). The Petitioner argued that Respondent’s right to assess had already prescribed and that the CTA En Banc erred in applying the extraordinary 10-year assessment period. On the other hand, the Respondent countered that its right to assess did not prescribe because prima facie evidence exists that the Value-Added Tax (VAT) returns in question are false returns. In ruling, the Court held that CTA En Banc was not justified in applying the 10-year assessment period. The Court emphasized that the 10-year period should not be applied automatically and that the tax authorities have the burden of proving the existence of falsity or fraud. The Court also emphasized importance of due process in tax assessments, including the communication of the basis for extending the assessment period and the avoidance of contradictory positions by the tax authorities. The Court explained that for the 10-year assessment period to apply, the tax authorities must prove that the taxpayer filed a false return with intent to evade tax. Mere errors or inaccuracies in a return, without intent to evade tax, do not constitute a false return. The Court abandoned its previous strict interpretation of a false return as any deviation from the truth, whether intentional or not. Since the Formal Letter Demand (FLD) and/or Final Assessment Notice (FAN) was issued beyond the basic three (3)-year period and the Respondent’s invocation of the extraordinary 10-year assessment period is unavailing, the Court held that the VAT assessments have prescribed. Thus, it is no longer necessary to discuss the correctness of the VAT assessment. Hence, the Petition was GRANTED, and the earlier Decision and Resolution of CTA En Banc were REVERSED and SET ASIDE. [MCDONALD’S PHILIPPINES REALTY CORPORATION VS. COMMISSIONER OF INTERNAL REVENUE, G.R. NO. 247737, AUGUST 8, 2023, UPLOADED DECEMBER 5, 2023]

DOWNLOAD OUR PAST EDITIONS & FULL TEXT OF REFERENCES

https://weeklytaxupdates.getresponsesite.com/


Powered by:
GetResponse

    This is an online snapshot of a newsletter created by the owner of WEEKLY TAX UPDATES (7F Don Jacinto Building, Dela Rosa corner Salcedo Sts, 1200 Legaspi Village, Makati City, Philippines) and sent via GetResponse on 2024-02-06. Report abuse