CITIRA SAGA + SEC RAISES RED FAG ON REVIVAL OF KAPA + HOUSE APPROVED ON 3RD & FINAL READING CITIRA BILL + CABINET TEAM TO STUDY PROPOSED SHIFT TO GROSS TAXATION
Relevant Highlights:
- BIR MEDIA RELEASES
- BIR REVISED REGULATIONS ON THE COVERAGE OF BASIC COMMODITIES COVERED BY PERSONS WITH DISABILITY (PWD) DISCOUNT
- TAX & BUSINESS-RELATED NEWS [SEPTEMBER 13-17]
I. BIR MEDIA RELEASES
- BIR filed a criminal complaint with the DOJ against the corporate secretary of Kapa Community Ministry International, Inc. (KAPA), for willful attempt to evade tax and failure to file tax return for the previous years which leads to the discovery of undeclared sources of income.
- BIR Region No. 9B filed 3 separate criminal complaints with the DOJ against companies together with their responsible officers for failure to pay corresponding taxes and to file returns despite the notices and demands.
- BIR launched a new taxpayer payment facility utilizing the PESONet-enabled digital bills payment service that enables those taxpayers with account in Bangko Sentral Financial Institutions (BSFIs) to pay their taxes online through LandBank Link Biz Portal. This will be initially accessible to RCBC depositors and soon to depositors of other PESONet participating BSFIs.
- BIR Manila filed three (3) separate criminal complaints with the DOJ against delinquent respondents for willful failure to pay corresponding taxes and to file returns despite the number of demands.
- BIR Manila filed two separate criminal complaints with the DOJ against respondent corporations, together with their responsible officers for willful attempt to evade or defeat the payment of WTC, VAT and EWT. Filing of eFPS returns without corresponding payments are considered as prima facie evidence of tax evasion and is criminally punishable.
- BIR Manila filed a criminal complaint with the DOJ against a corporation together with the responsible officers for willful attempt to evade and deliberate failure to supply correct and accurate information on its Annual Income Tax and Quarterly VAT and deliberate failure to pay Improperly Accumulated Earnings Tax.
- BIR padlocked famous bakeshop in Naga City and its branches pursuant to the Oplan Kandado for failure to comply with the requirements under the VAT law.
II. BIR REVISED REGULATIONS ON THE COVERAGE OF BASIC COMMODITIES COVERED BY PWD DISCOUNT
Revenue Regulations No. 7-2019, with released date on August 27, 2019, amends the coverage of basic commodities covered by PWD discount.
III. TAX & BUSINESS-RELATED NEWS [SEPTEMBER 13-17]
- POGOs dominate office demand
- CITIRA saga
- Chinese firm in Ortigas points to Ceza license in denying its operations illegal
- POGO workers get bigger salaries than call center employees
- SEC issues cease-and-desist orders vs 19 lending apps
- Pogo sector overtakes IT-BPO in office space use
- Kawit proposes own POGO City
- Government to start crackdown on delinquent POGOs
- PEZA investment pledges expand 7% in Jan-Aug
- SEC raises red flag on revival of KAPA
- Labor alliance pushes for new panel to regulate POGOs
- Dominguez to SSS: Deliver higher investment returns to meet growing pension needs
- Tariff agency reviews extension of dumping duty on Turkish flour
- South Korea’s tax burden to grow next year amid concerns
- Cabinet team to study proposed shift to gross taxation
- House OKs CITIRA bill
- PEZA head: I’m not ‘sensationalizing’ Citira
POGOs dominate office demand [Manila Times, September 17, 2019]
The Philippine offshore gaming operators (POGOs) industry has dominated the country’s office demand in the first nine months of the year despite political headwinds facing the sector, Leechiu Property Consultants (LPC) said on Monday.
Source: https://www.manilatimes.net/2019/09/17/business/business-top/pogos-dominate-office-demand/617569/
CITIRA saga [Philippine Star, September 17, 2019]
The CITIRA bill’s forerunner, the Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO) bill, also passed third and final reading at the Lower House during the previous 17th Congress, but unfortunately got lost in translation on the Senate floor.
Source: https://www.philstar.com/business/2019/09/17/1952377/citira-saga
Chinese firm in Ortigas points to Ceza license in denying its operations illegal [Philippine Daily Inquirer, September 17, 2019]
The Chinese firm raided by authorities for allegedly operating illegally, including serving as an unlicensed gaming operator, insisted that its activities were legal and licensed by the Cagayan Economic Zone Authority (Ceza) although it was holding office in Ortigas, a business district in Pasig City.
Source: https://business.inquirer.net/279152/chinese-firm-in-ortigas-points-to-ceza-license-in-denying-its-operations-illegal#ixzz5zmgyhTA9
POGO workers get bigger salaries than call center employees [Philippine Star, September 17, 2019]
Workers in online casinos in the Philippines received higher salaries than those employed in call centers.
SEC issues cease-and-desist orders vs 19 lending apps [Philippine Daily Inquirer, September 17, 2019]
More online lending companies may soon face government scrutiny after the Securities and Exchange Commission (SEC) on Monday said it had issued cease-and-desist orders against 19 online lending applications.
Source: https://business.inquirer.net/279116/sec-issues-cease-and-desist-orders-vs-19-lending-apps#ixzz5zlLCmniH
Pogo sector overtakes IT-BPO in office space use [Philippine Daily Inquirer, September 17, 2019]
The fast-growing Philippine offshore gaming operator (Pogo) industry has overtaken the information technology-business process outsourcing (IT-BPO) industry as the biggest market for new office space in Metro Manila and could contribute as much as $11.6 billion to the economy this year.
Source: https://business.inquirer.net/279100/pogo-sector-overtakes-it-bpo-in-office-space-use#ixzz5zlM385Rm
Kawit proposes own POGO City [Philippine Star, September 16, 2019]
The local government of Kawit, Cavite is proposing to put up a 70-hectare offshore gaming hub to take advantage of the booming industry worldwide.
Source: https://www.philstar.com/business/2019/09/16/1952041/kawit-proposes-own-pogo-city
Government to start crackdown on delinquent POGOs [Philippine Star, September 16, 2019]
Government authorities will shut down the operations of offshore gaming firms and their service providers who refuse to pay withholding taxes to the Bureau of Internal Revenue (BIR), according to the Department of Finance.
Source: https://www.philstar.com/business/2019/09/16/1952056/government-start-crackdown-delinquent-pogos
PEZA investment pledges expand 7% in Jan-Aug [Manila Times, September 16, 2019]
Investment pledges registered by the Philippine Economic Zone Authority (PEZA) grew by 7.90 percent to P83.52 billion in January to August from P77.40 billion last year on the back of higher investments from local firms.
SEC raises red flag on revival of KAPA [Philippine Star, September 16, 2019]
The Securities and Exchange Commission (SEC), the corporate regulator, has raised the red flag on the supposed revival of the Kapa-Community Ministry International (KAPA).
Source: https://www.philstar.com/business/2019/09/16/1952053/sec-raises-red-flag-revival-kapa
Labor alliance pushes for new panel to regulate POGOs [Philippine Star, September 16, 2019]
Labor alliance Trade Union Congress of the Philippines is urging government to create a coordinating body to manage and regulate the offshore gambling sector in the Philippines as it foresees more Chinese workers coming to the country after Cambodia banned online gaming.
Source: https://www.philstar.com/headlines/2019/09/16/1952324/labor-alliance-pushes-new-panel-regulate-pogos
Dominguez to SSS: Deliver higher investment returns to meet growing pension needs [Philippine Daily Inquirer, September 15, 2019]
The Social Security System (SSS) should strengthen its financial standing by improving the quality and performance of its investments, and to use modern digital tools to reduce overhead expenses and better serve its members.
Source: https://business.inquirer.net/278841/dominguez-to-sss-deliver-higher-investment-returns-to-meet-growing-pension-needs#ixzz5zlHTHueO
Tariff agency reviews extension of dumping duty on Turkish flour [Philippine Star, September 15, 2019]
The Tariff Commission (TC) is reviewing whether the anti-dumping duty on Turkish flour should be extended for five years as requested by local flour millers.
Source: https://www.philstar.com/business/2019/09/15/1951786/tariff-agency-reviews-extension-dumping-duty-turkish-flour#tGd10V7L2Za0l0T8.99
South Korea’s tax burden to grow next year amid concerns [Philippine Daily Inquirer, September 15, 2019]
The data comes amid growing concerns about a heavy tax burden, despite the government’s expansionist fiscal operations, including efforts to change the tax system.
Source: https://business.inquirer.net/279024/south-koreas-tax-burden-to-grow-next-year-amid-concerns#ixzz5zlMU548W
Cabinet team to study proposed shift to gross taxation [Philippine Daily Inquirer, September 14, 2019]
The head of the government’s economic team said on Friday that the top legal and economic minds of the administration would study the idea raised by President Duterte to shift the corporate taxation model to one based on firms’ gross revenues rather than the existing mode of basing it on net taxable income.
Source: https://business.inquirer.net/278982/cabinet-team-to-study-proposed-shift-to-gross-taxation#ixzz5zlHBJhF2
House OKs CITIRA bill [Philippine Star, September 14, 2019]
The House of Representatives yesterday approved on third and final reading a bill reducing the 30 percent income tax on thousands of corporations to 20 percent over 10 years starting next year.
Source: https://www.philstar.com/business/2019/09/14/1951553/house-oks-citira-bill
PEZA head: I’m not ‘sensationalizing’ Citira [Manila Times, September 14, 2019]
THE chief of the Philippine Economic Zone Authority (PEZA) on Friday denied Trade Secretary Ramon Lopez’s accusation that she was sensationalizing House Bill 4157, or the “Corporate Income Tax and Incentives Rationalization Act” (Citira).
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