TAX & BUSINESS-RELATED NEWS [MAY 21-23] BIR CIRCULARIZES THE JOINT GUIDELINES ON THE BENEFITS & PRIVILEGES OF THE SENIOR CITIZENS & PERSONS WITH DISABILITIES ON THEIR ONLINE PURCHASES & PHONE CALLS/SMS TAX & BUSINESS-RELATED NEWS [MAY 16-20] CTA CASES DIGEST ON THE TAXABILITY OF SEPARATION PAY & DISCRETIONARY POWER OF THE BIR TO COMPROMISE
| 1. TAX & BUSINESS-RELATED NEWS [MAY 21-23] | | Senate passes bill on lifetime validity of birth, death, marriage certificates Upson International files for IPO, first IT retailer in equity market Boying Remulla tapped as next Justice secretary Manufacturers to introduce airless tires BIR files new tax evasion case vs celebrity doc Why NLEX, CAVITEX toll rates were raised Saving face: Dominguez, Dulay order soon-to-retire Pagulayan to stop audit of Andrew Tan’s Megaworld DILG orders clampdown vs e-sabong sites still operating amid Duterte’s kill order Creation of nuclear power regulatory agency urged NWPC approves wage hikes in Regions 2, 4B, 12 Transport coop on Novaliches-Cubao route gives free ride Ex-Aquino Cabinet Arsenio Balisacan is Marcos Jr.’s NEDA chief Marcos reviewing South Korea recommendations on nuclear plant revival US CDC opens new country office in Philippines BIR fails to hit Q1 revenue target
| 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. | Senate passes bill on lifetime validity of birth, death, marriage certificates [Philstar Global, May 23, 2022] Voting 23-0 with no abstentions, senators approved Senate Bill No. 2450 which provides for the permanent validity of birth, death and marriage certificates issued, signed, certified or authenticated by the Philippine Statistics Authority and its predecessor, the National Statistics Office. DENR cancels ECC of reclamation project in Coron [Philippine Daily Inquirer, May 23, 2022] Joe Amil Salino, regional director of the DENR-EMB in Mimaropa (Mindoro, Marinduque, Romblon and Palawan), directed the provincial government of Palawan, the proponent of the Coron Bay Development Project (CBDP), to immediately suspend all of its reclamation activities in the town. Upson International files for IPO, first IT retailer in equity market [Rappler, May 23, 2022] Upson International Corporation, which owns Octagon Computer Superstore, Micro Valley, and Gadget King, is seeking to raise P4.88 billion to build more outlets. Boying Remulla tapped as next Justice secretary [ABS-CBN News, May 23, 2022] "He has a great many years of experience in government, and not known to many, he is absolutely a very, very good lawyer," the incoming President said in a separate press briefing. Ex-Aquino Cabinet Arsenio Balisacan is Marcos Jr.’s NEDA chief [Inquirer.Net, May 23, 2022] Presumptive president Ferdinand “Bongbong” Marcos Jr. is considering economist Arsenio Balisacan to return to the National Economic and Development Authority (NEDA). Balisacan was NEDA chief during the administration of President Benigno S. Aquino III. Marcos reviewing South Korea recommendations on nuclear plant revival [ABS-CBN News, May 23, 2022] Presumptive President Ferdinand "Bongbong" Marcos Jr. on Monday said he was looking into reviving the mothballed nuclear power plant built during his late father's dictatorship. Manufacturers to introduce airless tires [Manila Times, May 23, 2022] Airless tires that never go flat or need to be inflated: It's a decades-long dream that manufacturers hope to turn into a reality soon, but for truck drivers first. US CDC opens new country office in Philippines [Philstar, May 23, 2022] The US Centers for Disease Control and Prevention (CDC) opened this month a new country office in the Philippines to advance increased health security in Asia, the US Embassy in Manila said. BIR files new tax evasion case vs celebrity doc [Philippine Daily Inquirer, May 22, 2022] In a statement on Friday, the BIR said Weigh Less Center Co. and its partners, doctors Joel and Oscar Mendez were among the eight taxpayers facing tax evasion cases before the Department of Justice (DOJ). Why NLEX, CAVITEX toll rates were raised [ABS-CBN News, May 21, 2022] Toll Regulatory Board spokesperson Julius Corpuz said the toll increase could be attributed to NLEX's petition in 2016 and the expressways' improvements in the past few years. Saving face: Dominguez, Dulay order soon-to-retire Pagulayan to stop audit of Andrew Tan’s Megaworld [Bilyonaryo, May 21, 2022] Finance Secretary Carlos Dominguez and BIR Commissioner Caesar Dulay issued separate orders suspending the Revenue Special Orders (SROs) and Operation Memorandum (OP) that authorized Pagulayan and other BIR officials to form task forces and conduct special audits of real estate developers, multi-level marketing (MLM) companies, Philippine Offshore Gaming Operators (POGO), and electronic sabong (e-Sabong) kingpins. DILG orders clampdown vs e-sabong sites still operating amid Duterte’s kill order [ABS-CBN News, May 21, 2022] Interior Secretary Eduardo Año has ordered the PNP Anti-Cybercrime Group and PNP units across the country to go after unregulated online cockfighting sites. Creation of nuclear power regulatory agency urged [Manila Bulletin, May 21, 2022] The next administration of presumptive President Ferdinand Marcos Jr. is being urged to issue an executive order (EO) creating a regulatory agency that will oversee nuclear power development in the Philippines. NWPC approves wage hikes in Regions 2, 4B, 12 [ABS-CBN News, May 21, 2022] The National Wages Productivity Commission (NWPC) on Friday approved the wage hikes issued by the Regional Tripartite Wages and Productivity Boards in Regions 2, 4B, and 12, the Department of Labor and Employment (DOLE) said. Transport coop on Novaliches-Cubao route gives free ride [Philippine News Agency, May 21, 2022] The Land Transportation Franchising and Regulatory Board (LTFRB) has authorized the Novaliches-based Speed Wheelers Transport Corp. (SWTC) to deploy 10 of its 36 air-conditioned, electronic, and environment-friendly jeepneys or mini-buses to ply the Novaliches-Cubao-Farmers Market (Quezon City) route. BIR fails to hit Q1 revenue target [GMA News Online, May 21, 2022] According to the DOF, collections of the BIR in the first quarter stood at P485.4 billion, P47.2 billion or 8.9% lower than the Development Budget Coordination Committee’s (DBCC) P532.6 billion. | 2. BIR CIRCULARIZES THE JOINT GUIDELINES ON THE BENEFITS & PRIVILEGES OF THE SENIOR CITIZENS & PERSONS WITH DISABILITIES ON THEIR ONLINE PURCHASES & PHONE CALLS/SMS | Revenue Memorandum Circular No. 71-2022, issued on May 18, 2022, circularizes the Joint Memorandum Circular No. 1-2022 entitled “Guidelines on the Provision of the Mandatory Statutory Benefits and Privileges of the Senior Citizens and Persons with Disabilities on their Purchases Through Online (E-Commerce) and Phone Call/SMS”. 1. A Senior Citizen (SC) or a Person with Disability (PWD) shall be entitled to the 20% discount and 12% Value-Added Tax (VAT) exemption of their purchase of goods and services; and 5% special discount for basic necessities and prime commodities for their exclusive use and enjoyment. 2. In the purchase of goods and services which are the subject of promotional discount, the SC or the PWD can avail of the establishment’s offered discount or the 20% discount with VAT exemption or the 5% special discount, whichever is higher/more favorable and applicable. 3. In cases wherein the buyer or customer is both SC and PWD, he shall be entitled only to a single 20% discount, with VAT exemption, or 5% special discount whichever is applicable under his valid SC ID or PWD ID. 4. Drugs identified as “essential” and “not essential” shall be considered as “Basic Necessities” and “Prime Commodities”, respectively. However, for purposes of determining the rightful statutory discount, the SC or PWD shall be granted the flat discount of 20%. 5. The total amount of offline and online purchase of SCs and PWDs per calendar week shall not exceed the amount of Php 1,300 without carry-over of the unused amount, unless otherwise increased, provided that the purchase of medicine shall no longer be limited by the Php 1,300 ceiling. 6. The SC must present his SC Identification Card (ID) issued by the Office of the Senior Citizens Affairs (OSCA) in the city or municipality where the senior citizen resides, or any government-issued ID, which reflects the name, picture, date of birth and nationality of the senior citizen. 7. The PWD must present the PWD ID issued by the Persons with Disability Affairs Office (PDAO) or the City/Municipal Social Welfare and Development Office (C/MSWDO) of the place where the person with disability resides, or the NCDA. 8. If a purchaser is both a SC and a PWD, the purchaser shall only be allowed to avail either the discount for SCs or the discount for PWDs, and he shall present the relevant ID. 9. If the purchaser is a child with disability, the parents have the full authority to purchase the product for their child and must only present the ID as required. 10. On the purchase of group meals, the basis of the 20% discount shall be on the amount corresponding to the combination of the most expensive and biggest single serving meal with beverage served in a quick service restaurant, is deemed flexible and is adjusted accordingly by food establishments to estimate a single food purchase for an individual SC and PWD. 11. For purchases made through the internet or online platform, the SC or PWD must, prior to placement of order, declare to the online platform/merchant that he is a SC or a PWD. 12. Upon delivery of the goods/orders or performance of the service purchased through the online platform, the SC or the PWD or his duly authorized representative shall present the original copy of the SC or the PWD proof of entitlement which was attached during the confirmation of his orders, together with the authorization letter, if applicable, otherwise, the full amount of the goods/orders or services will be charged. 13. The same rules apply to purchases made through the telephone or mobile phone call. 14. The business establishments shall have the right to act on any abuse, misrepresentations, falsification, or any other acts contrary to law on the availment of the SC or PWD discount by blocking or suspending the account or name of the erring person. 15. Any individual or business establishment who fails or refuses to observe the statutory discount afforded to SCs and PWDs may be held liable for the penalties provided by law. | 3. TAX & BUSINESS-RELATED NEWS [MAY 16-20] | | China condemns Canada's 'groundless' Huawei 5G ban An off-grid Starlink user achieves 'infinite WiFi' with 300 watts of solar Duterte signs 23 more laws, including new franchises, creation of LTO offices 19th Congress to replace ‘Bayanihan’ laws with ‘BBM’ stimulus bill, defer barangay polls BSP hikes interest rates to 2.25% in bid to tame rising inflation Former law dean eyed for a Cabinet post BOC-Port of Cebu seizes cylinders of refrigerants containing trifluoromethane Globe, ABS-CBN launch interactive TV channel Church, environmental groups urge South Cotabato gov’t to veto ordinance lifting open-pit mining ban GT Capital exceeded prepandemic earnings in Q1 BIR sets up task force for BPO compliance with on-site work order DOLE: Minimum daily wage increase in Ilocos, Cagayan Valley, Caraga regions approved Robust residential sales pulled up CLI profit by 14% as of March Emperador 2022 capex at P 3B for international expansion PSE clears P9.2-B IPO of Villar REIT Chelsea Q1 net loss widened to P 415.64M on surge in expenses College grads ill-prepared for some IT-BPO jobs, says survey Duterte inks law extending validity of firearms licenses Sale of Udenna stake in Malampaya 'alarming'
| 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 condemns Canada's 'groundless' Huawei 5G ban [ABS-CBN News, May 20, 2022] China on Friday hit out at Ottawa for blocking Chinese telecoms giants Huawei and ZTE from Canadian 5G networks, describing the ban as "groundless" ban and based on spurious security risks. An off-grid Starlink user achieves 'infinite WiFi' with 300 watts of solar [Interesting Engineering, May 19, 2022] The Starlink customer, Steve Birch, who works in facility management, is powering SpaceX's internet service completely off-grid. The service, which has recently gained significant public attention for its role in the Ukraine conflict, allows users to access the internet almost anywhere — and Birch is taking that concept to its limits. Duterte signs 23 more laws, including new franchises, creation of LTO offices [Inquirer.Net, May 19, 2022] In his last months in office, outgoing President Rodrigo Duterte has signed into law 23 more measures that include the granting of franchises and the establishment of the Land Transportation Office (LTO) regular offices in some parts of the country. 19th Congress to replace ‘Bayanihan’ laws with ‘BBM’ stimulus bill, defer barangay polls [Inquirer.Net, May 19, 2022] The 19th Congress is eyeing to pass a stimulus bill titled “Bayan Bangon Muli (BBM)” as well as reschedule the barangay elections set this December in order to save P8 billion which could be used to fight the pandemic. BSP hikes interest rates to 2.25% in bid to tame rising inflation [CNN, May 19, 2022] BSP Governor Benjamin Diokno announced Thursday the Monetary Board's decision to hike rates by 25 basis points (bps) effective Friday, May 20. Overnight lending rate was bumped up to 1.75% and deposit rate to 2.75%. Former law dean eyed for a Cabinet post [The Manila Times, May 19, 2022] A former law school dean here is reportedly being considered for a Cabinet post, according to sources from the inner circle of President-elect Ferdinand Marcos Jr. Lawyer Edgar Avila, former dean of the College of Law at Saint Louis University, is reportedly being considered for either Secretary of Justice or Solicitor General under the Marcos administration. BOC-Port of Cebu seizes cylinders of refrigerants containing trifluoromethane [Cebu Daily News, May 19, 2022] In a statement released on Wednesday, May 18, the BOC Port of Cebu said the importation of trifluoromethane, an alternative to ozone-depleting substance, is not covered with pre-shipment importation clearance before it entered the country. Globe, ABS-CBN launch interactive TV channel [The Philippine Star, May 19, 2022] The Globe Group and ABS-CBN will start airing next week the country’s first multiscreen and real-time interactive TV channel called PIE (Pinoy Interactive Entertainment). Church, environmental groups urge South Cotabato gov’t to veto ordinance lifting open-pit mining ban [Manila Bulletin, May 19, 2022] South Cotabato residents numbering to more than one thousand joined the Diocese of Marbel and environmental groups in a protest rally calling on Governor Reynaldo Tamayo Jr. to veto the new ordinance allowing the conduct of open-pit mining in the province. GT Capital exceeded prepandemic earnings in Q1 [Inquirer Mobile, May 18, 2022] Ty family-led conglomerate GT Capital Holdings Inc. exceeded prepandemic core earnings in the first quarter given the strong recovery of its businesses, led by Metropolitan Bank & Trust Co. and Toyota Motor Philippines (TMP). BIR sets up task force for BPO compliance with on-site work order [ABS-CBN News, May 18, 2022] The Bureau of Internal Revenue has created a task force to monitor the compliance of incentivized registered businesses in the IT Business Process Management (IT-BPM) sector, especially with the on-site work rules, the Finance Department said Wednesday. DOLE: Minimum daily wage increase in Ilocos, Cagayan Valley, Caraga regions approved [Manila Bulletin, May 18, 2022] Workers in three more regions will have an additional take home pay soon after the Regional Tripartite Wages and Productivity Boards (RTWPBs) of Ilocos Region, Cagayan Valley and CARAGA region approved the minimum wage increase petitions in the areas, the Department of Labor and Employment (DOLE) announced on Wednesday, May 18. Robust residential sales pulled up CLI profit by 14% as of March [Inquirer Mobile, May 17, 2022] Soberano family-led Cebu Landmasters Inc., (CLI) a fast-growing property developer focused on Visayas and Mindanao, said first quarter 2022 profits jumped 14 percent to P811 million due to the “stellar performance” of its residential and other business segments. Emperador 2022 capex at P 3B for international expansion [Inquirer Mobile, May 17, 2022] The world’s biggest brandy producer and owner of overseas brands such as Fundador and Whyte and Mackay said on Monday spending this year would hit P3 billion versus P1.74 billion in 2021. PSE clears P9.2-B IPO of Villar REIT [Inquirer Mobile, May 17, 2022] Billionaire Manuel Villar Jr.’s VistaREIT Inc. (VREIT) is set to launch its P9.2-billion initial public offering (IPO) at the end of the month after bagging the approval of the Philippine Stock Exchange (PSE) on Monday. Chelsea Q1 net loss widened to P 415.64M on surge in expenses [Inquirer Mobile, May 17, 2022] Chelsea Logistics and Infrastructure Holdings Corp. saw its first quarter net loss widen to P415.64 million from P218.07 million year-on-year despite its passenger and freight businesses registering robust growth. College grads ill-prepared for some IT-BPO jobs, says survey [Inquirer Mobile, May 17, 2022] Initial findings of a survey showed that a number of college graduates are not prepared enough for jobs in certain subsectors of the growing business process outsourcing industry, according to the Board of Investments (BOI), an urgent problem that should be addressed by both the private sector and the academe. Duterte inks law extending validity of firearms licenses [Philippine News Agency, May 17, 2022] Republic Act (RA) No. 11766, signed by Duterte on May 6, extends the validity of the license to possess firearms and ammunition from two years to five or 10 years, amending RA 10591 or the Comprehensive Firearms and Ammunition Regulation Act. Sale of Udenna stake in Malampaya 'alarming' [The Manila Times, May 16, 2022] SEN. Sherwin Gatchalian is worried about the country's power situation amid reports that businessman Dennis Uy of Udenna Corp. plans to sell his stake in the Malampaya deepwater gas-to-power project. | 4. CTA CASES DIGEST ON THE TAXABILITY OF SEPARATION PAY & DISCRETIONARY POWER OF THE BIR TO COMPROMISE | [THE DISCRETIONARY POWER OF THE CIR TO ENTER INTO COMPROMISES CANNOT BE SUPERIOR OVER THE POWER OF JUDICIAL REVIEW BY THE COURTS] [FOR THE COURT TO ACQUIRE JURISDICTION, AN ASSESSMENT MUST FIRST BE DISPUTED BY THE TAXPAYER & RULED UPON BY THE CIR TO WARRANT A DECISION FROM WHICH A PETITION FOR REVIEW MAY BE TAKEN TO THE COURT] Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review seeking reversal of the CTA 1st Division’s earlier Decision and Resolution. Petitioner claimed that the CTA in Division erred in assuming jurisdiction over the present case. Petitioner posited that he has the discretion to approve or disapprove an application for compromise. On the other hand, Respondent New Farmers Plaza, Inc. countered that CTA 1st Division correctly assumed jurisdiction and correctly provided the corresponding relief in the exercise of its “other matters” jurisdiction. In ruling, the Court agreed with Respondent’s submission. Those controversies over which the CIR had exercised his quasi-judicial functions of his power to decide disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in relation to those that involved the CIR’s exercise of quasi-legislative powers are included in the “other matters” jurisdiction. Correspondingly, the denial of offers of compromise squarely falls under the “other matters”. Hence, the Court has jurisdiction to take cognizance of the Notice of Denial issued by the Petitioner on the Respondent’s Offer of Compromise concerning the latter’s deficiency tax assessments. On the claim of the Petitioner that the deficiency assessment he issued to Respondent is valid and is not violative of due process, this time, the Court agreed with the Petitioner’s position. Here, it was never disputed, and, in fact, Respondent readily admitted in its Petition that when it received the Formal Letter of Demand, it did not file any protest. Consequently, the deficiency tax assessments against Respondent had long attained finality and cannot be questioned on appeal. The Court will only acquire jurisdiction over “disputed assessments” if there is due compliance with the procedure. Thus, the Petition was GRANTED, and the case was REMANDED to the CTA in Division for the determination of the validity of the Notice of Denial of Respondent’s Offer of Compromise. [COMMISSIONER OF INTERNAL REVENUE VS. NEW FARMERS PLAZA, INC., CTA EN BANC CASE NO. 2290, MAY 6, 2022] FOR SEPARATION BENEFITS DUE TO REDUNDANCY TO REMAIN TAX-EXEMPT, THE BENEFICIARY MUST PROVE THE FACT OF REDUNDANCY BY SUBMITTING THE REPORTORIAL REQUIREMENTS Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review seeking reversal of the Court 3rd Division's Decision granting the refund in favor of the Respondent Ma. Jethra B. Pascual pertaining to the erroneous/overpayment of withholding tax on compensation imposed on her retirement pay, as a consequence of her involuntary separation from Deutsche Bank. Petitioner argued that Respondent failed to establish the fact of redundancy due to her non-compliance with the documentary requirements pursuant to Revenue Memorandum Order (RMO) No. 66-2016. Likewise, the submission of the requirements listed under said RMO was necessary for a successful claim for refund. Further, the Respondent is not entitled to a refund of the claimed taxes withheld given her admission to receiving her "retirement pay" pursuant to Deutsche Bank's AG Manila Branch Employees' Retirement Plan. In ruling, the Court held that the obligation to submit such documentary requirements is imposed on the employer. The Respondent cannot be expected to submit such requirements. Likewise, RMO No. 66-2016 does not have any retroactive effect. The Respondent's benefit under the Retirement Plan despite its erroneous designation as "retirement pay" is not taxable since she received the same as a consequence of redundancy and not due to her retirement. Consequently, the Petition was DENIED, and the earlier Decision and Resolution were AFFIRMED. [COMMISSIONER OF INTERNAL REVENUE VS. MA. JETHRA B. PASCUAL, CTA EN BANC CASE NO. 2400, MAY 5, 2022] | DOWNLOAD OUR PAST EDITIONS & FULL TEXT OF REFERENCES https://weeklytaxupdates.getresponsesite.com/ | |
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