TAX & BUSINESS-RELATED NEWS [JANUARY 16-17] SUPREME COURT CASE DIGEST ON PETITION FOR DECLARATORY RELIEF AS A WAY OF QUESTIONING BIR ASSESSMENT TAX & BUSINESS-RELATED NEWS [JANUARY 14-15] COURT OF TAX APPEALS CASES DIGEST TAX & BUSINESS-RELATED NEWS [JANUARY 10-13]
| 1. TAX & BUSINESS-RELATED NEWS [JANUARY 16-17] | | New Veterans Bank law takes effect Jan. 21 Angkas backs freeze of MoveIt-Grab, says motorcycle taxi pilot on 'tail-end' World's 10 richest men doubled wealth during Covid – report DTI probes unlicensed sellers of COVID-19 test kits DoE sees thinning of Visayas power supply House OKs on final reading bill expanding tertiary education subsidy coverage New law declares Carcar City a heritage zone Online financial fraud cost consumers P540-M in 2021, BSP says Mober backs IKEA's goal of delivering 100% electric vehicles by 2030 House passes 19 bills weeks before adjournment for 2022 polls Court affirms Ombudsman's disqualification ruling vs Pichay Global jobs recovery delayed by pandemic uncertainty, Omicron, ILO says Taiwanese firm sees legal battle with lessee House OKs bill regulating cooperative banks Leyte town maintains 50-year mining ban WESM operator sees power rate spikes DOLE, PGH team up for management of PH's first OFW hospital Some LGUs not ready for devolved government services, says economist PH’s first digital banks to operate soon DENR turns over P111.8M projects in Nueva Vizcaya
| 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. | New Veterans Bank law takes effect Jan. 21 [The Manila Times, January 17, 2022] President Rodrigo Duterte signed into law a measure that revised the Philippine Veterans Bank charter to include post-World War II veterans and soldiers as shareholders while maintaining priority for World War II veterans and their immediate heirs. Angkas backs freeze of MoveIt-Grab, says motorcycle taxi pilot on 'tail-end' [ABS-CBN News, January 17, 2022] Angkas on Monday said Monday it supports the government's decision to suspend the collaboration between its rivals MoveIt and Grab, saying there should be no disruptions in the ongoing pilot run for motorcycle taxis. World's 10 richest men doubled wealth during Covid – report [The Manila Times, January 17, 2022] Forbes listed the world's 10 richest men as: Tesla and SpaceX chief Elon Musk, Amazon's Jeff Bezos, Google founders Larry Page and Sergey Brin, Facebook's Mark Zuckerberg, former Microsoft CEOs Bill Gates and Steve Ballmer, former Oracle CEO Larry Ellison, US investor Warren Buffet and the head of the French luxury group LVMH, Bernard Arnault. DTI probes unlicensed sellers of COVID-19 test kits [ABS-CBN News, January 17, 2022] The Department of Trade and Industry on Monday said it is investigating unlicensed sellers and resellers of COVID-19 test kits especially those operating online. DoE sees thinning of Visayas power supply [The Manila Times, January 17, 2022] A potential Yellow Alert from the absence of high-voltage direct current (HVDC) transmission link from Luzon is being anticipated the Visayas as a worst-case scenario in 2022, the election season, the Department of Energy (DoE) said yesterday. House OKs on final reading bill expanding tertiary education subsidy coverage [ABS-CBN News, January 17, 2022] The bill aims to allow more underprivileged and academically competent students to enroll in private higher education institutions (HEIs) and technical-vocational institutions, and benefit from the TES through the voucher system. New law declares Carcar City a heritage zone [The Manila Times, January 17, 2022] Signed by the Chief Executive on January 14, 2022, Republic Act 11644 ensures "the promotion and preservation of the cultural and historical landmarks that highlight the uniqueness and beauty" of the city. Online financial fraud cost consumers P540-M in 2021, BSP says [ABS-CBN News, January 17, 2022] From 2020-2021, there were 42,456 complaints from victims of phishing, identity theft, malware attacks, and other types of fraud targetting people in online financial transactions, the BSP said. Mober backs IKEA's goal of delivering 100% electric vehicles by 2030 [Manila Bulletin, January 17, 2022] Mober, a Filipino tech-logistics business, has reaffirmed their commitment to reducing carbon emissions by partnering with IKEA, a home furnishings retailer, for last-mile electric vehicle delivery. House passes 19 bills weeks before adjournment for 2022 polls [ABS-CBN News, January 17, 2022] The House of Representatives on Monday passed several legislative measures, few weeks before Congress adjourns for the election period. Court affirms Ombudsman's disqualification ruling vs Pichay [The Manila Times, January 17, 2022] The case of Pichay arose from the purchase by the Local Water Utilities Administration (LWUA) of about 445,377 shares of Express Savings Bank Inc. (ESBI), which equates to his 60 percent voting stock amounting to P80 million. Global jobs recovery delayed by pandemic uncertainty, Omicron, ILO says [ABS-CBN News, January 17, 2022] The global job market will taker longer to recover than previously thought, with unemployment levels set to remain above pre-COVID-19 levels until at least 2023 due to uncertainty about the pandemic's course and duration, the International Labour Organization said in a report on Monday. Taiwanese firm sees legal battle with lessee [The Manila Times, January 17, 2022] Chailease Group, with a market capitalization of $11 billion and assets of more than $21 billion, said it has overwhelming documentary evidence to prove CAPP Industries Inc. of Christopher Pastrana was not the owner of the subject helicopter but was instead a lessee. House OKs bill regulating cooperative banks [ABS-CBN News, January 17, 2022] According to its congressional fact sheet, HB 9541 provides for the establishment, management, and regulation of cooperative banks under the supervision of the Bangko Sentral ng Pilipinas as primary regulator, conformably with the provisions of the General Banking Law of 2000. Settlement of disputes vital to rail projects [The Manila Times, January 17, 2022] Settlement of legal disputes and acquisition of road-right-of-way were cited as the key factors for the realization and continued progress of the major ongoing rail projects by the government, the Department of Transportation (DoTr) said over the weekend. Leyte town maintains 50-year mining ban [The Manila Times, January 17, 2022] ABUYOG, Leyte: This coastal municipality in the fifth district of Leyte is opposed to the entry of all forms of mining. WESM operator sees power rate spikes [Manila Bulletin, January 16, 2022] Filipino consumers may need to brace for higher electric bills next month as prices in the Wholesale Electricity Spot Market (WESM) were ticking up when system operator National Grid Corp. of the Philippines (NGCP) declared a two-day “yellow alert” in the Luzon grid recently. DOLE, PGH team up for management of PH's first OFW hospital [ABS-CBN News, January 16, 2022] In a statement, the DOLE said it recently signed a memorandum of understanding (MOU) with the PGH to oversee the hospital, which is being built in San Fernando, Pampanga. Some LGUs not ready for devolved government services, says economist [Philippine Star, January 16, 2022] The architects of the devolution system transferring basic state services and facilities from the national government to the local government units (LGUs) may have the best of intentions, but the move could be fraught with serious oversights and end up with undesired results. PH’s first digital banks to operate soon [Manila Bulletin, January 16, 2022] These are Overseas Filipino Bank of Land Bank of the Philippines and its license was approved last March 25, 2021. Tonik Bank of Singapore and UNObank of Singapore’s licenses were approved last June 3 while UnionDigital of Union Bank of the Philippines got its license last July 15. The last two digital bank licenses were given to GOtyme of Robinsons Bank Corp. on Aug. 12, and Maya Bank, owned by PayMaya of PLDT Inc. on Sept. 16. DENR turns over P111.8M projects in Nueva Vizcaya [The Manila Times, January 16, 2022] BAYOMBONG, Nueva Vizcaya: At least P111.8 million worth of infrastructure projects under the Forestland Management Project (FMP) of the Department of Environment and Natural Resources (DENR) in Region 2 were turned over in separate ceremonies to five local government units in the province. | 2. SC CASE DIGEST ON PETITION FOR DECLARATORY RELIEF AS A AWAY OF QUESTIONING BIR ASSESSMENT | PETITION FOR DECLARATORY RELIEF IS NOT PROPER TO QUESTION ASSESSMENT Respondent Standard Insurance Co., Inc. filed a Motion for Reconsideration of the earlier Decision which granted the Petition for Review on Certiorari of Petitioner Commissioner of Internal Revenue (CIR), which sought the reversal of the earlier Decision of the Regional Trial Court (RTC). The RTC decision granted Respondent’s Petition for Declaratory Relief. Respondent alleged that the RTC has jurisdiction to take cognizance of Respondent’s action for declaratory relief and that the latter has fully satisfied the essential requisites of a Petition for Declaratory Relief (Petition). In ruling, the Court discussed that the said action must comply with the following requisites: (1) the subject matter of the controversy must be a deed, will, contract or other written instrument, statute, executive order or regulation, or ordinance; (2) the terms of said documents and the validity thereof are doubtful and require judicial construction; (3) there must have been no breach of the documents in question; (4) there must be an actual justiciable controversy or the “ripening seeds” of one between persons whose interests are adverse; (5) the issue must be ripe for judicial determination; and (6) adequate relief is not available through other means or other forms of action or proceeding. After review of the records, the Court found no reason to disturb the finding that the RTC should have dismissed Respondent’s Petition for failure to comply with the above third, fourth, fifth, and sixth requisites. In connection with the third requisite, Respondent had already received assessments from the BIR for deficiency documentary stamp taxes (DST) when it filed its Petition. In view thereof, the RTC should have already dismissed Respondent's Petition for lack of jurisdiction. Anent the fourth and fifth requisites, Respondent's Petition does not present a justiciable controversy ripe for judicial determination. Respondent's Petition failed to demonstrate that Respondent's legal rights are subject of an imminent or threatened violation that should be prevented by the declaratory relief sought; the apprehension that its business may be rendered technically insolvent in view of the continued enforcement of the taxes under Sections 108 and 184 of the Tax Code appear to be merely conjectural and anticipatory. Moreover, Respondent's adequate remedy upon receipt of the Final Decision on Disputed Assessment for the DST deficiency was to file an Appeal in due course with the CTA instead of resorting to a Petition for Declaratory Relief with the RTC. Thus, the sixth requisite is likewise absent. Consequently, the Motion for Reconsideration was DENIED with FINALITY for lack of merit. [COMMISSIONER OF INTERNAL REVENUE VS. STANDARD INSURANCE COMPANY, INC., G.R. NO. 219340, DATED APRIL 28, 2021, UPLOADED SEPTEMBER 21, 2021] | 3. TAX & BUSINESS-RELATED NEWS [JANUARY 14-15] | | China suspends 26 more air routes, 4 from US, over COVID-19 infections Ifugao BIR official found dead in office Canon to cut production at Zhuhai factory, with full shutdown in southern China looming Security Bank gets top marks for pandemic services Netflix raises monthly subscription prices in US, Canada UnionBank drops ‘clickable’ links in anticybercrime drive Sin tax coalition urges Duterte to veto vape bill Iberdrola brings wind power expertise to PH House panel OKs bill regulating online banking, e-wallet Bag designed by BTS' V sets record for fastest to sell out BSP limits basic deposit accounts to one per client Fully Booked announces permanent closure of 3 Metro Manila branches Citi to Sell Southeast Asian Assets in $3.6 Billion Deal SC dismisses case vs ex-SBMA exec after nearly 10 years Cebu Landmasters posts P16.5-B record reservation sales 2 Pinays enter Forbes’ 50 over 50 Asia list DOF cites inclusive financial system a Duterte legacy 1.7 million state workers to receive pay hike
| 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. | China suspends 26 more air routes, 4 from US, over COVID-19 infections [ABS-CBN News, January 15, 2022] The suspensions, which take effect from the week of January 24, include two flights apiece operated by American Airlines and Delta Air Lines. The two carriers' last flights to land in China respectively carried seven and nine passengers who tested positive, the Chinese aviation authority said. Ifugao BIR official found dead in office [The Manila Times, January 15, 2022] A revenue district officer of the Bureau of Internal Revenue (BIR) Lagawe Branch was found lifeless inside his office late Thursday afternoon. Canon to cut production at Zhuhai factory, with full shutdown in southern China looming [ABS-CBN News, January 15, 2022] Japanese optical product maker Canon will close part of its Zhuhai factory in southern China, with a full shutdown of the 32-year plant being considered, due to shrinking demand in the digital camera market and continued fallout from the coronavirus. Security Bank gets top marks for pandemic services [Inquirer Mobile, January 15, 2022] Security Bank is the “most recommended” transaction bank as well as the “most helpful” in the Philippines during this COVID-19 pandemic, consumer rating and survey site BankQuality said. Netflix raises monthly subscription prices in US, Canada [ABS-CBN News, January 15, 2022] LOS ANGELES—Netflix Inc has raised its monthly subscription price by $1 to $2 per month in the United States depending on the plan, the company said on Friday, to help pay for new programming to compete in the crowded streaming TV market. UnionBank drops ‘clickable’ links in anticybercrime drive [Philippine Daily Inquirer, January 15, 2022] Citing the need to curb phishing, smishing and other online fraud, Aboitiz-led Union Bank of the Philippines (UnionBank) has announced that it would do away with “clickable” website links in its promotions and communication materials to the public. Sin tax coalition urges Duterte to veto vape bill [The Manila Times, January 15, 2022] SIXTY civil society organizations under the Sin Tax Coalition have called on President Rodrigo Duterte to veto an "anti-youth" and "anti-health" legislation legalizing the sale of electronic vaporizers or vapes and heated tobacco products. Iberdrola brings wind power expertise to PH [Inquirer Mobile, January 15, 2022] Iberdrola, the world’s second-biggest producer of wind power, has forged a partnership with local project developer Triconti Windkraft Group to develop an offshore wind project in the Philippines. House panel OKs bill regulating online banking, e-wallet [The Philippine Star, January 15, 2022] The committee on banks and financial intermediaries has approved in principle the substitute to House Bill No. 9615 filed by panel chair and Quirino Rep. Junie Cua, HB 10141 filed by Camarines Sur Rep. LRay Villafuerte, and HB 10412 by Magdalo party-list Rep. Manuel Cabochan III. Bag designed by BTS' V sets record for fastest to sell out [ABS-CBN News, January 14, 2022] BTS has demonstrated on numerous occasions that its influence goes beyond music and performances. BSP limits basic deposit accounts to one per client [Business World, January 14, 2022] THE BANGKO SENTRAL ng Pilipinas (BSP) directed lenders to limit basic deposit accounts (BDA) to one per depositor, urging clients to consider other products better suited for their needs. Fully Booked announces permanent closure of 3 Metro Manila branches [Inquirer.Net, January 14, 2022] MANILA, Philippines — Fully Booked has announced the permanent closure of three of its branches in Metro Manila. Citi to Sell Southeast Asian Assets in $3.6 Billion Deal [Bloomberg, January 14, 2022] Citigroup Inc. agreed to sell consumer-banking businesses in Indonesia, Malaysia, Thailand and Vietnam to United Overseas Bank Ltd. for about S$4.9 billion ($3.6 billion) as Chief Executive Officer Jane Fraser continues her push to simplify the New York-based bank. SC dismisses case vs ex-SBMA exec after nearly 10 years [Inquirer.Net, January 14, 2022] The First Division of the Supreme Court declared as invalid the 90-day suspension slapped against Stefani Saño, former Subic Bay Metropolitan Authority official, nearly a decade ago. Cebu Landmasters posts P16.5-B record reservation sales [BusinessWorld, January 14, 2022] CEBU Landmasters, Inc. (CLI) recorded a 16% increase in reservation sales to P16.5 billion last year, the real estate developer said on Thursday, describing the figure as “record-breaking” coming from P14.25 billion a year earlier. 2 Pinays enter Forbes’ 50 over 50 Asia list [The Philippine Star, January 14, 2022] Joining the list of age-defying list of 50 women are Converge president and co-founder Maria Grace Uy and Nobel Peace Prize laureate and Rappler CEO Maria Ressa. DOF cites inclusive financial system a Duterte legacy [Manila Bulletin, January 14, 2022] Finance Secretary Carlos Dominguez III has cited the initiatives of the Capital Market Development Council (CMDC) to make the Philippine financial system “broad-based and inclusive” as among the lasting legacies of the body under the Duterte administration. 1.7 million state workers to receive pay hike [The Philippine Star, January 14, 2022] About 1.7 million government workers, from the President down to the lowest levels in the remotest barangays, will receive higher pay when the new Salary Standardization Law takes effect starting this month. | 4. CTA CASES DIGEST ON RE-ASSIGNMENT OF BIR EXAMINER, VOID ASSESSMENT FOR FAILURE OF THE BIR TO ADDRESS REPLY TO PAN, CTA JURISDICTION ON INTER-GOVERNMENT DISPUTES & PROOF TO ESTABLISH ZERO-RATING CLIENTS | [REASSIGNMENT OR TRANSFER OF CASES TO ANOTHER RO REQUIRES THE ISSUANCE OF AN LOA] [A MOA IS A MERE NOTICE OF REASSIGNMENT AND NOT A PROOF OF AUTHORITY TO CONDUCT AN EXAMINATION AND ASSESSMENT] Petitioner Hard Rock Café (Makati City) Inc. filed a Petition for Review seeking cancellation of the assessment issued by Respondent Commissioner of Internal Revenue (CIR) covering the year 2014. Petitioner elevated the case to this Court following the expiration of the 180-day period within which the Respondent could act upon its preceding request for reinvestigation. It is well-settled that the authority granted to Revenue Officers (ROs) to conduct audit and examine taxpayer’s books is a continuing requirement and any gap in authorization will violate the taxpayer’s right to due process. Such authority emanates from a Letter of Authority (LOA) issued by the CIR or his duly authorized representative. In the instant case, the authority of the RO and the Group Supervisor (GS) reassigned to Petitioner merely came from a Memorandum of Assignment (MOA) issued by a Revenue District Officer (RDO). Revenue Memorandum Order (RMO) No. 43-90 mandates the issuance of a new LOA in cases of reassignment or transfer of examination to another RO. Moreover, in the case of CIR v. McDonald’s Philippines Realty Corporation the Supreme Court highlighted the difference between an MOA and LOA. The former being a notice of the fact of reassignment and transfer of cases, and the latter being the proof of existence of authority to conduct an examination and assessment. A mere MOA signed by the RDO does not and cannot confer proper authority to the RO and GS reassigned to the case of Petitioner. As such, their investigation and subsequent assessment of Petitioner’s tax deficiency could not be given any effect. It was further reiterated that the absence of an LOA results in the nullity of the assessment or examination due to violation of the taxpayer’s right to due process. Consequently, the Petition was GRANTED, and the assessment issued against Petitioner was CANCELLED AND SET ASIDE. [HARD ROCK CAFÉ (MAKATI CITY) INC., VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9945, DECEMBER 10, 2021] [TAXPAYER MUST BE INFORMED IN WRITING OF THE LAW AND FACTS ON WHICH THE ASSESSMENT IS MADE] [CIR’S REJECTION OF TAXPAYER’S EXPLANATION MUST BE REASONABLE, BACKED WITH FACTS, AND COMMUNICATED] Petitioner Bac-Man Geothermal, Inc. filed a Petition for Review seeking cancellation of the assessment issued by the Respondent Commissioner of Internal Revenue (CIR) covering taxable year 2013. Several issues were raised but the case was ultimately decided based on the compliance with due process requirements in the issuance of the assessment. Section 228 of the 1997 Tax Code, as amended, and Revenue Regulations (RR) No. 12-99, as amended, require that taxpayer be informed in writing of the law and facts on which the assessment is made. The Court found the Preliminary Assessment Notice (PAN) compliant with aforecited provisions. However, the Formal Letter of Demand (FLD) and the Final Decision on Disputed Assessment (FDDA) were mere reproduction of the wordings of the PAN, differing only in the computation of the interest, and neither referred to the Petitioner’s reply nor addressed its arguments therein. Albeit the Revenue Officers (RO) preparing memoranda indicating the reasons for rejection of the Petitioner’s arguments, Respondent did not communicate these reasons. In ruling, Court cited the case of CIR vs. Avon Products Manufacturing, Inc. that although not obliged to accept the taxpayer’s explanations, the former must provide facts backing the rejection. Considering the following, the Petition was GRANTED, FLD was CANCELLED and WITHDRAWN, and FDDA was SET ASIDE. [BAC-MAN GEOTHERMAL, INC. VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9728, NOVEMBER 18, 2021] [CTA HAS JURISDICTION OVER CASES INVOLVING CONTROVERSIES AMONG GOVERNMENT AGENCIES AND OFFICES] [REQUIRED AFFIRMENT VOTE OF AT LEAST FIVE (5) MEMBERS OF THE COURT EN BANC TO GRANT THE PETITION] Petitioner Department of Energy (DOE), represented by Secretary Alfonso Cusi, filed a Petition for Review seeking reversal of the Court’s earlier decision ruling that the Court of Tax Appeals (CTA) has no jurisdiction over the present case, which involved a purely intra-governmental dispute. Petitioner argued that under Rule 8 of the Revised Rules of the CTA, a party adversely affected by a decision or ruling of the Commissioner of Internal Revenue (CIR) (Respondent in this case) on disputed assessments may appeal to the CTA by Petition for Review within thirty (30) days upon receipt of a copy of such decision or ruling, hence, CTA must assume jurisdiction. In ruling, the Court held that it has jurisdiction over the case even if the parties are both government agencies. The contention of the Court in Division that PSALM case is applicable is without merit. Here, the principle of stare decisis is inapplicable to the present case for the fact and issues are not similar with PSALM case. Moreover, following the ejusdem generis rule on statutory construction, disputes that should be referred to administrative arbitration must relate to the interpretation and application of statutes, contracts or agreements, or any other cases of similar nature. Hence, it becomes clear that the instant case does not fall within the scope of Presidential Decree 242 since the original Petition for Review does not involve the interpretation of statute, contract, or agreement but an issue questioning the correctness of the tax collection proceedings instituted by Respondent against Petitioner, which is certainly within the jurisdiction of the CTA. It is also worthy to point out that the Supreme Court has consistently recognized the CTA's jurisdiction over cases involving controversies among government agencies and offices. However, in the deliberation, only three (3) out of at least five (5) required affirmative vote concurred with the opinion of the Ponente that the Petition should be granted and be remanded to the Court in Division. Therefore, Petition was DENIED. [DEPARTMENT OF ENERGY, REPRESENTED BY SECRETARY ALFONSO G. CUSI VS. COMMISSIONER OF INTERNAL, CTA EN BANC CASE NO. 2241, NOVEMBER 4, 2021] TO ESTABLISH A CLIENT’S NRFC STATUS, THERE MUST BE SUFFICIENT PROOF OF BOTH COMPONENTS—THAT THEY ARE FOREIGN CORPORATIONS AND THEY ARE NOT DOING BUSINESS IN THE PHILIPPINES Petitioner AIG Shared Services Corporation (Philippines) filed a Petition for Review seeking refund or issuance of a tax credit certificate (TCC) for its unutilized input value-added tax (VAT) arising from its domestic purchases of goods and services, purchases of capital goods, and purchases of services rendered by non-residents attributable to its zero-rated sales in the aggregate amount of Php 42,368,282.79. Scrutiny of pertinent documents related to Petitioner’s zero-rated sales resulted in partial disallowance of the same due to various reasons. As previously ruled by the Court of Tax Appeals (CTA), a Certificate of Non-Recognition issued by the Securities and Exchange Commission (SEC) and an authenticated Articles of Association and/or Certificates of Registration/Good Standing/Incorporation are sufficient proof to establish the Non-resident Foreign Corporation (NRFC) status of an entity. However, a number of its clients could not be considered as NRFCs for some of them had arguable faithful reproductions of the original documents, while some lacked one of the two requirements, hence, disallowed. Likewise, there were significant differences in the names reflected in the pertinent SEC Certificates of Non-Registration, foreign registration documents, and official receipts issued to some clients. Consequently, the corresponding sales were also disallowed and deducted from Petitioner’s valid zero-rated sales. Lastly, an unreported zero-rated sales amounting to Php 143,379,351.23 was further disallowed—a portion of which was not traceable to the Certificates of Inward Remittances, while the rest were not proven to be non-trade receipts which were third party obligations to its clients that Petitioner paid in advance, rather, these are charges incurred by Petitioner’s own employees for the benefit of its foreign clients. Consequently, after considering the foregoing disallowance along with non-compliance on invoicing requirements on some sources of input VAT claim, the entitlement was REDUCED to Php 12,812,480.60. [AIG SHARED SERVICES CORPORATION (PHILIPPINES) VS. COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 9879, OCTOBER 26, 2021 | 5. TAX & BUSINESS-RELATED NEWS [JANUARY 10-13] | | Dennis A. Uy-led Dito CME not worried over Duterte exit Philex completes Boyongan mine study Omicron ‘overreaction?’ Airline ticket sales see sharp drop, IATA says Duterte OKs law renaming Roosevelt Avenue after FPJ Microsoft hires key Apple engineer to design server chips: Bloomberg News 'Survivorship benefits' for prosecutors' kin guaranteed in new law RFM says sales up 7% to nearly P17 billion, net income ‘flattish’ Brazil-based VW Truck & Bus enter Asia via PH DBM to agencies: Don’t duplicate devolved LGU functions in 2023 budget pitch Rita’s Italian Ice to permanently close Philippine stores PPA implements safety seal certification in ports Canadian province seeks to tax the unvaxxed as Omicron hits SMC delays return to office plan for workers Citi to exit consumer banking in Mexico Stricter requirements for maritime schools Robinsons Retail opens 900th drugstore, more store openings 'lined up' this year BSP: Printing of banknotes illegal E-cars account for over 20pct of China’s new vehicle sales, reaching goal ahead of sched LGU borrowings reached new high of P 96.7B in ’21 Kim Kardashian, Floyd Mayweather sued over promotion of crypto token Virata-Yuchengco group’s Sangley airport offer OKayed Thailand to introduce $9 visitor fee from April Customs red tape hobbling Filipina entrepreneurs Seiko's new limited edition watch is inspired by PH sunrise PH told to drop plexiglass barriers Islamic Studies expert: Law criminalizing child marriage violates Muslim customs PH jumps to 9th place in global IP office ranking Transco tests use of power lines for high-speed internet to connect public schools Grab barred from entering PH motorcyle taxi segment PhilHealth says it owes hospitals over P25 billion, plans to settle it in 6 months CHED: Phase 2 of limited face-to-face classes can start January 31 in Alert 3 areas SPNEC plans asset for share swap Meta delays office reopening, mandates booster shots for returning workers Preneed sales jumped 47.5% in end-Sept 2021 Japan extends entry ban on non-resident foreigners till end-Feb Lloyd Laboratories gets BOI approval NFT sales hit $25 billion in 2021, but growth shows signs of slowing QC lifts mandatory use of face shields – except under Alert Level 5 Natural disasters in 2021 highlights huge insurance gap in Asia-Pacific: reinsurer NLEX Corp. unveils expansion plans for 2022 Citi to sack unvaccinated staff at the end of the month SEC approves Investree crowdfunding license Marcoleta vows Senate probe on ABS-CBN, sister company if he wins
| 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. | Dennis A. Uy-led Dito CME not worried over Duterte exit [Inquirer Mobile, January 13, 2022] One of the prevailing worries was the ability of Dito Telecommunity, a venture between Uy and state-run China Telecom, to finance its $5-billion budget to complete its nationwide network. Philex completes Boyongan mine study [The Manila Times, January 13, 2022] PHILEX Mining Corp. on Wednesday announced the completion of the In-Phase Mine Plan feasibility study and an updated mineable reserve estimate for the Boyongan deposit. Omicron ‘overreaction?’ Airline ticket sales see sharp drop, IATA says [ABS-CBN News, January 13, 2022] Airline ticket sales have fallen sharply since the end of 2021, the International Air Transport Association (IATA) said Wednesday, blaming governments for having "overreacted" to the omicron COVID variant by closing borders. Duterte OKs law renaming Roosevelt Avenue after FPJ [The Manila Times, January 13, 2022] President Rodrigo Duterte has signed into law a bill renaming Roosevelt Avenue in Quezon City after the late Filipino actor Fernando Poe Jr. (FPJ). Microsoft hires key Apple engineer to design server chips: Bloomberg News [ABS-CBN News, January 13, 2022] Microsoft Corp hired a key Apple Inc engineer to design its own chips for its servers, Bloomberg News reported, citing people with knowledge of the matter. 'Survivorship benefits' for prosecutors' kin guaranteed in new law [ABS-CBN News, January 13, 2022] Republic Act 11643 provides that the surviving legitimate spouse and dependent children of a deceased prosecutor will be entitled to receive all the retirement benefits that he or she was already receiving or entitled to receive. RFM says sales up 7% to nearly P17 billion, net income ‘flattish’ [BusinessWorld, January 13, 2022] “RFM is looking into more dividend payments, perhaps quarterly instead of twice a year and also targeting about 5% dividend yield. RFM paid out 60% of its net income in the previous year but we will revisit in late 2022 if we can further improve our payout, given the cash accumulation and performance of the brands,” Mr. Concepcion said in the disclosure. Brazil-based VW Truck & Bus enter Asia via PH [The Manila Times, January 13, 2022] THE MAN Automotive Concessionaires Corp., more known as MACC, has partnered with VW Truck and Bus based in Brazil, which will pave the way for the commercial vehicles under the brand to be marketed in the Philippines and Asia. DBM to agencies: Don’t duplicate devolved LGU functions in 2023 budget pitch [Inquirer Mobile, January 13, 2022] With the implementation of the Supreme Court’s Mandanas-Garcia ruling in full swing, Canda reminded national government agencies to “focus on policy and standards development for service delivery, provision of technical assistance, monitoring, and performance assessment of the LGUs.” Rita’s Italian Ice to permanently close Philippine stores [ABS-CBN News, January 12, 2022] “We’re sorry to say that we have reached the end of our journey here, and will be closing our doors permanently on January 15, 2022. Thank you so much for all the memories,” it said. PPA implements safety seal certification in ports [The Manila Times, January 12, 2022] PPA General Manager Jay Daniel Santiago said PPA Administrative Order 10-2021 aims to assure the public that the establishments are safe for use. Canadian province seeks to tax the unvaxxed as Omicron hits [ABS-CBN News, January 12, 2022] MONTREAL - The Canadian province of Quebec, struggling to control the Omicron variant, will impose a new health tax in the coming weeks on those who are not vaccinated against Covid-19. SMC delays return to office plan for workers [The Manila Times, January 12, 2022] In a statement on Tuesday, SMC chief Ramon Ang said they are encouraging employees to work from home unless required by operations as they continue to monitor the pandemic situation. Citi to exit consumer banking in Mexico [ABS-CBN News, January 12, 2022] The New York-based bank plans to cease operations in Mexico in consumer, small business and middle-market customers, but will maintain an institutional client business in the country to provide financial advisory and private banking services. Stricter requirements for maritime schools [The Manila Times, January 12, 2022] To address the shortcomings earlier identified by the European Maritime Safety Agency (EMSA) in maritime education and training in the country, education and maritime authorities proposed stricter requirements for maritime schools. Robinsons Retail opens 900th drugstore, more store openings 'lined up' this year [ABS-CBN News, January 12, 2022] The newest Southstar Drug opened in Sta. Cruz, Laguna last Jan. 10 as part of Robinsons' strategic expansion in underpenetrated areas in Luzon, the Gokongwei-led group told the stock exchange. BSP: Printing of banknotes illegal [The Manila Times, January 12, 2022] According to BSP Circular 829, Series of 2014, reproducing the image of any legal tender Philippine currency banknotes, or any part of one, whether in black and white, color, or a combination of colors, without authority or license from the central bank is punishable by five to 10 years in prison. E-cars account for over 20pct of China’s new vehicle sales, reaching goal ahead of sched [ABS-CBN News, January 12, 2022] The government had hoped new-energy vehicles (NEVs) - which comprise pure electric, plug-in hybrid and fuel-cell cars - would account for 20 per cent of the country's total vehicle sales by 2025, according to the Made in China 2025 industrial strategy published in 2015. LGU borrowings reached new high of P 96.7B in ’21 [Inquirer Mobile, January 12, 2022] Local governments’ borrowings reached a new high of P96.7 billion in 2021, a year before the next national elections and their bigger budget allocations alongside more, devolved functions. Kim Kardashian, Floyd Mayweather sued over promotion of crypto token [ABS-CBN News, January 12, 2022] The lawsuit, filed Jan. 7 in Los Angeles federal court, claims the celebrities touted tokens sold by EthereumMax, or EMAX, in order to boost its price and make themselves a profit "at the expense of their followers and investors." Virata-Yuchengco group’s Sangley airport offer Okayed [Inquirer Mobile, January 12, 2022] The Cavite government has accepted an offer from a Virata and Yuchengco-led consortium to build a new international airport in Sangley Point in Manila Bay, paving the way for final negotiations and a competitive bidding process. Thailand to introduce $9 visitor fee from April [ABS-CBN News, January 12, 2022] The new 300 baht ($9) charge will be incorporated into airfares, government spokesman Thanakorn Wangboonkongchana said in a statement. Customs red tape hobbling Filipina entrepreneurs [Inquirer Mobile, January 12, 2022] While women entrepreneurs in the Philippines are supported by policies conducive to doing business, bottlenecks like bureaucratic red tape still hampered many women traders from pushing beyond the country’s borders, according to the World Bank. Seiko's new limited edition watch is inspired by PH sunrise [ABS-CBN News, January 12, 2022] Seiko is starting the year strong with the launch of its second Philippine limited edition Prospex watch, which is inspired by the country's sunrise. PH told to drop plexiglass barriers [Philippine Daily Inquirer, January 12, 2022] Instead of face shields and plexiglass barriers, the Philippines should rely more on protective masks and proper ventilation, and even going outdoors, a leading American aerosol scientist said. Islamic Studies expert: Law criminalizing child marriage violates Muslim customs [ABS-CBN News, January 12, 2022] Wadi said that the new law could've recognized or given exception to traditional Muslim laws, as not all culture is negative. PH jumps to 9th place in global IP office ranking [Manila Bulletin, January 11, 2022] The Intellectual Property Office of the Philippines (IPOPHL) jumped to 9th place in the World Trademark Review’s (WTR) 2021 IP (intellectual property) Office Innovation Ranking from 24th in the previous year, making the Philippines the only developing country to have an IP office in the top 10 out of 60 offices ranked worldwide. Transco tests use of power lines for high speed internet to connect public schools [ABS-CBN News, January 11, 2022] The National Transmission Corp has been testing an emerging technology that would allow the use of existing power lines to help provide high speed internet to public schools, the Department of Finance said. Grab barred from entering PH motorcyle taxi segment [Inquirer Mobile, January 11, 2022] Grab Philippines has been barred from entering the motorcycle taxi business after the government’s motorcycle taxi technical working group (TWG) told it to permanently dissolve its partnership with Move It, months after it was suspended. PhilHealth says it owes hospitals over P25 billion, plans to settle it in 6 months [ABS-CBN News, January 11, 2022] Dante Gierran said the company hopes to pay the claims in 6 months, following plans by some hospitals to sever ties with the state insurer over the matter. Such a plan, a so-called "PhilHealth holiday", was suspended December 29. CHED: Phase 2 of limited face-to-face classes can start January 31 in Alert 3 areas [ABS-CBN News, January 11, 2022] "Application to CHED is not a requirement for the conduct of the limited face-to-face classes. HEIs intending to hold limited face-to-face classes during the COVID-19 pandemic must be willing to assume the responsibilities for the reopening of their campuses based on their capability to comply with the health and safety protocols, to retrofit their facilities, and to get the support of their stakeholders," the commission said. SPNEC plans asset for share swap [The Philippine Star, January 11, 2022] Solar Philippines Nueva Ecija Corp. (SPNEC), the newly listed solar developer, will do an asset-per-share swap with Solar Philippines to set the stage for future expansion and growth. Meta delays office reopening, mandates booster shots for returning workers [ABS-CBN News, January 11, 2022] For employees who opt to work from office, the reopening date has been delayed to March 28 from the earlier plan of Jan. 31, the tech giant said. Preneed sales jumped 47.5% in end-Sept 2021 [Inquirer Mobile, January 11, 2022] The latest Insurance Commission (IC) data on Monday showed the 12 licensed pre-need players posted a total net income of P369.2 million during the first nine months of last year. In 2020, the sector recorded an end-September net loss amounting to P2.3 billion. Japan extends entry ban on non-resident foreigners till end-Feb [ABS-CBN News, January 11, 2022] The ban has been in place since Nov. 30 after the country confirmed its first case of the highly transmissible Omicron variant of the coronavirus. Lloyd Laboratories gets BOI approval [The Manila Times, January 11, 2022] THE Board of Investments (BOI) on Monday said it has cleared the application of Lloyd Laboratories Inc. to be the domestic producer of Molnupiravir, an oral therapy for Covid-19 patients. NFT sales hit $25 billion in 2021, but growth shows signs of slowing [ABS-CBN News, January 11, 2022] LONDON—From cartoon apes to video clips, sales of NFTs reached some $25 billion in 2021 as the speculative crypto asset exploded in popularity, data from market tracker DappRadar showed, although there were signs of growth slowing towards the end of the year. QC lifts mandatory use of face shields – except under Alert Level 5 [Inquirer.Net, January 11, 2022] The mandatory use of face shields was lifted through Ordinance No. 3079, S-2022, approved on Jan. 6, 2022. Natural disasters in 2021 highlights huge insurance gap in Asia-Pacific: reinsurer [ABS-CBN News, January 11, 2022] Natural disasters caused economic losses of US$280 billion globally in 2021, making it the second-costliest year on record, according to Munich Re, the world’s largest reinsurer. NLEX Corp. unveils expansion plans for 2022 [BusinessWorld, January 10, 2022] NLEX Corp. plans to start this year the construction of a two-kilometer expressway section between the existing Mindanao Avenue toll plaza and Quirino Highway in Novaliches, Quezon City, the company’s top official said. Citi to sack unvaccinated staff at the end of the month [Finextra, January 10, 2022] Citigroup staff in the United States who have not been vaccinated against Covid-19 by January 14 will be placed on unpaid leave and fired at the end of the month unless they are granted an exemption, according to a company memo seen by Reuters. SEC approves Investree crowdfunding license [The Manila Times, January 10, 2022] A joint venture between Gotianun-led Filinvest Development Corp. and Investree Singapore Pte. Ltd., Investree Philippines is the first crowdfunding intermediary and funding portal registered with the SEC after the Rules and Regulations Covering Crowdfunding (CF Rules) took effect in July 2019. Marcoleta vows Senate probe on ABS-CBN, sister company if he wins [Manila Bulletin, January 10, 2022] Owners of former network giant ABS-CBN face a congressional inquiry in connection with the operations of its digital service firm Big Dipper, but that is if Deputy Speaker and Sagip Partylist Rep. Rodante Marcoleta succeeds in his Senate bid. | Thank you and best regards, WILLIE B. SANTIAGO Lawyer & Certified Public Accountant Tax & Corporate Services Division TL : (+632) 8 894-5892 Loc. 703 Website: www.dmdcpa.com.ph Don Jacinto Building De la Rosa corner Salcedo Streets Legaspi Village, Makati City 1229 Philippines | |
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