BIR CUSTOMS COLLECTIONS EXCEED JANUARY-AUGUST TARGET: FINANCE DEPARTMENT + DOLE OUT OF FUNDS TO HELP FORMAL WORKERS WEATHER PANDEMIC + DOF BIR IMPLEMENT VOLUNTARY ASSESSMENT TO SETTLE 2018 TAX DEFICIENCIES

Other Relevant Tax Updates:

  • Supreme Court (SC) Cases Digest
  • Court of Tax Appeals (CTA) Case Digest On Full-Blown 6-Month Vat Audit Assessment
  • Bureau of Internal Revenue (BIR) Rulings Digest
  • Tax and Business-Related News [September 5-13]
 
 

I. SC CASES DIGEST

SC UPHELD THE IMPOSITION OF SURCHARGE FOR ONE-DAY LATE FILING

Petitioner Qatar Airways Company with Limited Liability filed a Petition for Review on Certiorari seeking reversal of the CTA En Banc’s earlier decision denying its Petition for Review and holding it liable to the assessment issued by the Respondent Commissioner of Internal Revenue in the amount of Php 7,385,209.00.  The assessment arose from the Respondent’s imposition of surcharge as a result of one-day late filing of Petitioner’s tax return. Petitioner argued that the imposition of surcharge was unjust and excessive as it had no intention to evade the filing and payment of its Quarterly Income Tax. In ruling, the Court held that the surcharge was neither unjust nor excessive. The Court relied on the CTA findings that there was no advise on eFPS unavailability, thus, belated filing due to technical problem is not a situation too bleak so as to render Petitioner completely without recourse. Hence, as correctly observed by the CTA, Petitioner would not incur delay in the filing of its ITR if it filed the same before the deadline and not on the last day of filing. Also, the Petitioner’s averment that it had difficulty in interpreting the correct Gross Philippine Billings computation for income tax purposes is of no moment. Petitioner could have filed a tentative quarterly income tax return if it was still unsure with the figures to avoid delay and paying surcharge. Thereafter, it could modify, change, or amend the tentative return already filed if warranted. Based on the foregoing, the Decision and Resolution of the CTA En Banc were AFFIRMED. [QATAR AIRWAYS COMPANY WITH LIMITED LIABILITY VS. COMMISSIONER OF INTERNAL REVENUE, G.R. NO. 238914, JUNE 8, 2020]

 [CIR COULD HAVE INFORMED THE TAXPAYER ON ITS FAILURE, IF TAXPAYER INDEED FAILED TO SUBMIT COMPLETE DOCUMENTS IN SUPPORT OF ITS CLAIM FOR REFUND] [NON-SUBMISSION OF ALL DOCUMENTS ON REFUND AT THE ADMINISTRATIVE LEVEL IS NOT FATAL TO TAXPAYER’S JUDICIAL CLAIM FOR REFUND]

Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review on Certiorari seeking reversal of the CTA En Banc’s earlier Decision and Resolution partially granting the claim for tax refund/credit of Respondent’s Chevron Holdings, Inc. relative to its unutilized input VAT attributable to zero-rated sales for the taxable year 2009. Petitioner maintained that Respondent’s Petition with the CTA Division was prematurely filed since the 120-day period did not even commence to run for failure to submit complete documents to support its claim. On the other hand, Respondent argued that the Petitioner did not notify it of the need to submit additional supporting documents to substantiate its claim and stressed that absent such, notification, the documents submitted are deemed complete and sufficient. In ruling, the Court cited the landmark case of Pilipinas Total Gas, Inc. vs. CIR which states that there is nothing in Section 112 of the Tax Code, Revenue Regulations (RR) No. 3-88 or Revenue Memorandum Order (RMO) No. 53-98 that requires submission of the complete documents enumerated in RMO No. 53-98 for a grant of a refund or credit of input VAT. Hence, submission of all documents is not fatal to its judicial claim for refund. Moreover, the Petitioner should have taken a positive step in apprising the Respondent of the completeness and adequacy of its documents considering their particular relevance in reckoning the 120-day period. Consequently, the Petition was DENIED. [COMMISSIONER OF INTERNAL REVENUE VS. CHEVRON HOLDINGS, INC. (FORMERLY CALTEX LIMITED), G.R. NO. 233301, FEBRUARY 27, 2020]

 II. CTA CASE DIGEST ON FULL-BLOWN 6-MONTH VAT AUDIT ASSESSMENT

Petitioner Pag-Asa Steel Works, Inc. filed a Petition for Review seeking the cancellation of the 6-month VAT assessment issued by the Respondent Commissioner of Internal Revenue covering the period January 1 to June 30, 2014. Several issues were raised such as the disallowance of sales discount for failure to substantiate, disallowance of zero-rated sales for failure to provide proof of client’s entitlements, imposition of VAT on hauling income in the absence of proof that the same is purely reimbursement of cost, imposition of VAT on debit memo as well as offsetting arrangement on receivables and payables to establish arm’s lenght, and disallowance of input tax due to invoicing defects. In ruling, the Court held that while the assessment issues are valid for failure of the Petitioner to refute the assessment findings of the Respondent, the deficiency VAT assessment should be cancelled considering that there is sufficient input VAT for the 1st and 2nd quarters of 2014 to cover the VAT due for the same periods. Thus, the Petition was PARTIALLY GRANTED and the assessments for deficiency VAT were UPHELD WITH MODIFICATION. Nevertheless, Petitioner has no deficiency VAT liability and even incurred VAT overpayment amounting to Php 217,420,492.45. [PAG-ASA STEEL WORKS, INC. VS. BUREAU OF INTERNAL REVENUE, COMMISSIONER OF INTERNAL REVENUE, ASSISTANT COMMISSIONER TERESITA M. ANGELES, CTA CASE NO. 9506, SEPTEMBER 2, 2020]

 III. BIR RULINGS DIGEST

  • Tax benefits of adopt-a-school program
  • Denied ruling  of irrigation companydue to payment of honorarium to its board of trustees
  • 30% threshold breachedand payment of honorarium resulting in denial of tax exemption application
  • 3-years to operate before acting on application for issuance of Certificate Of Tax Exemption (CTE)
  • Qualification of scientific entityto be tax exempt
  • A charitable institution is denied of tax exemption due to its disposition of funds
  • Denial of ruling due to payment of salary
  • Denial of tax exemption due to payment of honorarium
  • Indication of minimal allowances disqualify a schoolfrom the claim of cte
  • Denial of tax exemptiondue to payment of salary
  • Specialty contractors are subject to 2% creditable withholding tax (cwt) and not to 15%
  • Extent of exemption of homeowners’ association
  • Renewable Energy (RE) developeris subject to vat zero-rating on local purchases needed for development, construction and installation of plant facilities and the whole process of exploring and developing RE sources up to its conversion into power
  • Land development of proposed market site is not a socialized housing, thus, subject to vat; tax exemption is limited to project contractorswith a view to reduce the cost of housing units for the benefit of the underprivileged and homeless
  • Securities and Exchange Commission (SEC) registration showing that an entity is a non-stock non-profit corporation does not completely exempt an institution from taxes

TAX BENEFITS OF ADOPT-A-SCHOOL PROGRAM

P Co. is seeking a donor’s tax exemption and deductibility of the donation made to a public school pursuant to Republic Act (R.A.) No. 8525 or the “Adopt-A-School Act of 1998.”  In reply, donations to the Government, its agencies or political subdivisions are deductible in full and R.A. No. 8525 provides an additional 50% deduction from the gross income of the adopting entity. However, donations not in accordance with the National Priority Plan are subject to limited deductibility or deductions to an amount not exceeding 10% in the case of an individual and 5% in the case of a corporation of the taxpayer’s taxable net income as computed without the benefit of this deduction. Moreover, donations to the Government, or any entity created by any of its agencies which is not conducted for profit is exempt from tax. Perusal of the documents showed that P Co. is compliant with the requirements set forth under Section 3 of Revenue Regulations (RR) No. 10-2003 and the Adopt-A-School Program is considered a Priority Project in the National Priority Plan of the Government on that year. Thus, P Co. qualifies for donor’s tax exemption and availment of 150% deduction of the donation from its gross income. [BIR RULING NO. 256-2020, MAY 22, 2020]

 DENIED RULING  OF IRRIGATION COMPANY DUE TO PAYMENT OF HONORARIUM TO ITS BOARD OF TRUSTEES

E Inc. is seeking a CTE enjoyed by non-stock, non-profit corporation or association under Section 30 (J) of the Tax Code. In reply, to avail of the tax exemption under Section 30, the entity’s earnings or assets shall not inure to the benefit of its trustees, organizers, members or any specific person. Perusal of the Association’s By-Laws showed that its Board of Trustees is entitled to honorarium. Thus, E Co. does not qualify for exemption under Section 30 (J), and, therefore, it is treated as an ordinary corporation subject to 30% income tax rate. [BIR RULING NO. 251-2020, MAY 22, 2020]

 30% THRESHOLD BREACHED AND PAYMENT OF HONORARIUM RESULTING IN DENIAL OF TAX EXEMPTION APPLICATION

N Co. is seeking a CTE enjoyed by non-stock, non-profit corporation or association under Section 30 (E) of the Tax Code. In reply, to avail of the tax exemption under Section 30 (E), Revenue Memorandum Circular (RMC) No. 51-2014 clarifies that the entity’s earnings or assets shall not inure to the benefit of its trustees, organizers, members or any specific person. Perusal of the submitted documents showed that N Co. pays honorarium to its Board of Trustees. Moreover, more than 50% of the operating income of the corporation was used for administrative expenses. Thus, N Co. does not qualify for exemption under Section 30 (E), and, therefore, it is treated as an ordinary corporation subject to 30% income tax rate. [BIR RULING NO. 240-2020, MAY 21, 2020]

 3-YEARS TO OPERATE BEFORE ACTING ON APPLICATION FOR ISSUANCE OF CTE

J Co. is seeking a CTE enjoyed by non-stock, non-profit corporation or association under Section 30 (E) of the Tax Code. In reply, BIR cannot issue yet a CTE to J Co. for it has to prove its entitlement to income tax exemption after three (3) years of operations. [BIR RULING 239-2020, MAY 21, 2020]

 QUALIFICATION OF SCIENTIFIC ENTITY TO BE TAX EXEMPT

U Co. is seeking a CTE enjoyed by non-stock, non-profit corporation or association under Section 30 (E) and (G) of the Tax Code. In reply, to avail of the tax exemption under Section 30 (E) and (G), organization and operation of the scientific institution must be devoted “exclusively” for scientific purposes. Perusal of the submitted documents showed that its revenues are being utilized for salaries, meals and lodging, travel and transportation, and survey contracting expense, and not devoted or used altogether to the scientific purposes and promotion of general welfare. Thus, U Co. does not qualify for exemption under Section 30 (E) and (G), and, therefore, it is treated as an ordinary corporation subject to regular corporate income tax. [BIR RULING NO. 236-2020, MAY 21, 2020]

 A CHARITABLE INSTITUTION IS DENIED OF TAX EXEMPTION DUE TO ITS DISPOSITION OF FUNDS

R Co. is requesting issuance of CTE enjoyed by non-stock, non-profit corporation, association or organization under Section 30 (E) of the Tax Code. After perusal of its submitted documents, BIR noted that the primary purpose of the corporation is to fund and make contributions to other institution. Also, most of its income comes from fund-raising and used to fund tournaments and concerts in return for profits. Thus, R Co. does not qualify for exemption under Section 30 (E), and, therefore it is liable for income taxes impose by the same law. [BIR RULING NO. 242-2020, MAY 21, 2002]

 DENIAL OF RULING DUE TO PAYMENT OF SALARY

B Co. is seeking a CTE enjoyed by non-stock, non-profit corporation or association under Section 30 (E) of the Tax Code. In reply, to avail of the tax exemption under Section 30 (E), Revenue Memorandum Circular (RMC) No. 51-2014 clarifies that the the entity’s earnings or assets shall not inure to the benefit of its trustees, organizers, members or any specific person. Perusal of the documents showed that the Board of Trustees is entitled to compensation/salaries. Thus, B Co. does not qualify for exemption under Section 30 (E), and, therefore, it is treated as an ordinary corporation subject to 30% income tax rate. [BIR RULING NO. 241-2020, MAY 21, 2020]

 DENIAL OF TAX EXEMPTION DUE TO PAYMENT OF HONORARIUM

C Co. is seeking a CTE enjoyed by non-stock, non-profit corporation or association under Section 30 (H) of the Tax Code. In reply, to avail of the tax exemption under Section 30 (H), Revenue Memorandum Circular (RMC) No. 51-2014 clarifies that the entity’s earnings or assets shall not inure to the benefit of its trustees, organizers, members or any specific person. Perusal of the submitted documents showed that its Board of Trustees is entitled to honorarium. Thus, C Co. does not qualify for exemption under Section 30 (H), and, therefore, it is treated as an ordinary corporation subject to 30% income tax rate. [BIR RULING NO. 234-2020, MAY 19, 2020]

 INDICATION OF MINIMAL ALLOWANCES DISQUALIFY A SCHOOL FROM THE CLAIM OF CTE

T Co. is seeking a CTE enjoyed by non-stock, non-profit corporation or association under Section 30 (H) of the Tax Code. In reply, to avail of the tax exemption under Section 30 (H), the entity’s earnings or assets shall not inure to the benefit of its trustees, organizers, members or any specific person. Perusal of the submitted documents showed that the trustees, officers, and faculty members serving in missionary capacity are entitled to minimal allowances to defray their transportation and necessities as the circumstances call. Thus, T Co. does not qualify for exemption under Section 30 (H), and, therefore, it is treated as a proprietary educational institution subject to 10% preferential rate. [BIR RULING NO. 233-2020, MAY 19, 2020]

 DENIAL OF TAX EXEMPTION DUE TO PAYMENT OF SALARY

M Co. is seeking a CTE enjoyed by non-stock, non-profit corporation or association under Section 30 (H) of the Tax Code. In reply, to avail of the tax exemption under Section 30 (H), Revenue Memorandum Circular (RMC) No. 51-2014 clarifies that the entity’s earnings or assets shall not inure to the benefit of its trustees, organizers, members or any specific person. Perusal of the submitted documents showed that its Board of Trustees is entitled to compensation or fixed salary for their services. Thus, M Co. does not qualify for exemption under Section 30 (H), and, therefore, it is treated as an ordinary corporation liable for income taxes. [BIR RULING NO. 232-2020, MAY 19, 2020]

SPECIALTY CONTRACTORS ARE SUBJECT TO 2% CWT AND NOT TO 15%

C Co., a construction project specialist and a Philippine Branch of a Denmark-based company, is seeking confirmation whether the professional fees received from its clients are subject to CWT at the rate of 2%, as payment to specialty contractor. In reply, Section 3 of Revenue Regulations (RR) No. 6-2001 defines the term “Specialty Contractor” as “Those whose operations pertain to the performance of construction work requiring special skill and whose contracting business involves the use of specialized building trades or crafts”. Gross payments to such persons are subject to 2% CWT. In BIR Ruling No. 006-03, BIR confirmed that an independent firm of quantity surveyors, cost engineers and construction cost specialist, is considered a specialty contractor notwithstanding the fact that it does not perform actual construction work. The independent firm renders quantity surveying services in building and other civil works projects including, but not limited to, initial design, tendering procedures and contract analysis and report, construction progress financial statement preparation, advisory contract administration, valuation of construction work in progress and cost and material supervision in each and every work phase of construction, which services pertain to the performance of construction work requiring special skill. Since C Co. is engaged in construction management, consultancy and general contracting services and carrying any activities in conjunction with and related to any of the services above-mentioned, it is considered a specialty contractor, and income payments thereon are subject to CWT at the rate of 2%. [BIR RULING NO. 224-2020, MARCH 13, 2020]

 EXTENT OF EXEMPTION OF HOMEOWNERS’ ASSOCIATION

S Homeowners’ Inc., a non-stock and non-profit residential homeowners’ association, is seeking a ruling on the extent of its tax exemption. As represented, it is a duly registered Homeowners Association with the Housing and Land Use Regulatory Board; that its financial statements show the delivery of basic community services defined under Section 3 (d) of Republic Act (R.A.) No. 9904; and that the Local Government Unit covering the jurisdiction of the Homeowners Association has issued a Certificate that it lacks the resources to provide these services to the Association. In ruling, the income derived from association dues, membership fees,  and charges collected in a purely reimbursable and rentals of facilities is exempt from income tax, VAT or percentage tax, whichever is applicable. Provided, that such income and dues shall be used for the cleanliness, safety, security and other basic services needed by the members, including the maintenance of the facilities of their respective subdivisions or villages. However, it shall be subject to the applicable internal revenue taxes on its other income from trade, business or other activities. [BIR RULING NO. 220-2020, MARCH 12, 2020]

 RE DEVELOPER IS SUBJECT TO VAT ZERO-RATING ON LOCAL PURCHASES NEEDED FOR DEVELOPMENT, CONSTRUCTION AND INSTALLATION OF PLANT FACILITIES AND THE WHOLE PROCESS OF EXPLORING AND DEVELOPING RE SOURCES UP TO ITS CONVERSION INTO POWER

E Co., primarily engaged in the exploration, development, generation and sale of energy from renewable sources such as geothermal energy, is seeking confirmation whether it is entitled to VAT zero-rating on its purchases of local supply of goods, properties and services needed for the development, construction and installation of its various plant facilities and the whole process of exploring and developing renewable energy sources up to its conversion into power, including but not limited to the services performed by subcontractors and/or contractors. In ruling, BIR noted that E Co. is a Department of Energy (DOE)-registered Renewable Energy (RE) Developer and Board of Investment-registered entity. Thus, its suppliers of goods and services should not pass on 12% VAT to the Company’s purchases of goods and services that will be used in the development, construction and installation of its various plant facilities and the whole process of exploring and developing renewable energy sources up to its conversion into power, including but not limited to the services performed by subcontractors and/or contractors pursuant to Sec. 15 of Republic Act (R.A.) No. 9513, otherwise known as the “Renewable Energy Act of 2008”. Likewise, the grant of VAT zero-rating shall be subject to post audit verification by the BIR whether the purchases goods/services were indeed utilized in the development, construction and installation of power plant facilities. [BIR RULING NO. 218-2020, MARCH 12, 2020]

 [LAND DEVELOPMENT OF PROPOSED MARKET SITE IS NOT A SOCIALIZED HOUSING, THUS, SUBJECT TO VAT] [TAX EXEMPTION IS LIMITED TO PROJECT CONTRACTORS WITH A VIEW TO REDUCE THE COST OF HOUSING UNITS FOR THE BENEFIT OF THE UNDERPRIVILEGED AND HOMELESS]

C Co., a project contractor engaged by the National Housing Authority (NHA) to undertake Land Development of Proposed Market Site pursuant to Republic Act (R.A.) No. 7279, is requesting for exemption from the payment of VAT. In reply, although it is NHA certified as a socialized housing project and considered one of the basic needs for socialized housing project, the Land Development of Proposed Market Site, is nevertheless outside the definition of a “socialized housing” in relation to the tax incentives for the private sector under Section 20 of R.A. No. 7279. Thus, BIR denied the exemption from payment of VAT. [BIR RULING NO. 212-2020, MARCH 11, 2020]

 SEC REGISTRATION SHOWING THAT AN ENTITY IS A NON-STOCK NON-PROFIT CORPORATION DOES NOT COMPLETELY EXEMPT AN INSTITUTION FROM TAXES

I Co., a non-stock, non-profit corporation or association organized and operated exclusively for charitable purposes, is seeking the issuance of a Certificate of Tax Exemption. In ruling, both the organization and operations of a charitable institution must be devoted exclusively for charitable purposes. Any profits obtained as an incident to its operations must be devoted to the charitable object which it is intended to achieve. Being registered as a non-stock and non-profit corporation does not, for this reason alone, completely exempt an institution from tax. Given the foregoing, I Co. does not qualify as a charitable corporation within the contemplation of Section 30 of the 1997 Tax Code, and that its request for exemption is denied for lack of factual and legal basis. [BIR RULING NO. S30E-2029-2020, MARCH 10, 2020]

 IV.TAX AND BUSINESS-RELATED NEWS [SEPTEMBER 5-13]

  • BIR, Customs collections exceed January-August target: finance dep’t
  • Pandemic seen to ‘temporarily slow’ government’s gains in reducing poverty: NEDA
  • Virus lockdowns drive ‘exponential growth’ in online banking: Security Bank
  • Longer list of ‘Build, Build, Build’ projects OKd
  • NTC orders recall of frequencies, channels assigned to ABS-CBN
  • PH reserves could breach $100 billion as gold rises: Bangko Sentral
  • Finance department expects P2.71T tax collection in 2021 as economy reopens further
  • GCash expects P1 trillion in transactions by year-end as pandemic alters financial behavior
  • More gov’t agencies, LGUs to accept payments via PayMaya
  • PH economic recovery rests on 2021 budget, ‘set of measures’ to aid businesses
  • DOF chief pushes for 2021 budget’s ‘swift’ passage as Senate begins tackling P4.5T spending bill
  • BSP to issue its own debt papers starting Sept. 18
  • DOLE out of funds to help formal workers weather pandemic
  • Online business name registration soars during quarantine period: DTI
  • BSP says Filipinos financially ill-prepared for retirement, offers ‘Digital Pera’
  • House OKs San Miguel Corp franchise to build, operate new Bulacan airport
  • ‘Data privacy’ must be observed in social media monitoring of quarantine violations: NPC
  • DOF, BIR implement ‘voluntary assessment’ to settle 2018 tax deficiencies
  • Mall landlords, tenants face off in Australia as foot traffic plunges amid COVID-19 pandemic
  • Businesses frequented by migrant workers in Singapore’s Chinatown, Little India badly hit by COVID-19

BIR, Customs collections exceed January-August target: finance dep’t [ABS-CBN News, September 13, 2020]

Tax collections by the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) for the first 8 months of the year exceeded government’s target despite the impact of the COVID-19 pandemic on the economy, the Department of Finance said Sunday.

Source: https://news.abs-cbn.com/business/09/13/20/bir-customs-collections-exceed-january-august-target-finance-dept

Pandemic seen to ‘temporarily slow’ government’s gains in reducing poverty: NEDA [ABS-CBN News, September 11, 2020]

The coronavirus pandemic may temporarily disrupt the “significant” gains achieved by the government in terms of poverty reduction, Acting Socioeconomic Planning Secretary Karl Chua said Friday.

Source: https://news.abs-cbn.com/business/09/11/20/pandemic-seen-to-temporarily-slow-governments-gains-in-reducing-poverty-neda

 Virus lockdowns drive ‘exponential growth’ in online banking: Security Bank [ABS-CBN News, September 11, 2020]

Security Bank said Friday it saw an “exponential” increase in online banking transactions in the last few months due to the lockdowns imposed to stem the spread of COVID-19.

Source: https://news.abs-cbn.com/business/09/11/20/virus-lockdowns-drive-exponential-growth-in-online-banking-security-bank

Longer list of ‘Build, Build, Build’ projects OKd [Philippine Daily Inquirer, September 11, 2020]

President Duterte has given the go-ahead to the longer list of 104 projects worth P4.1 trillion in the “Build, Build, Build” pipeline.

Source: https://business.inquirer.net/307048/longer-list-of-build-build-build-projects-okd#ixzz6XujenKbS

NTC orders recall of frequencies, channels assigned to ABS-CBN [ABS-CBN News, September 10, 2020]

Another blow to ABS-CBN Corp. as the Philippine telecommunications commission orders the recall of all frequencies and channels assigned to the network. 

Source: https://news.abs-cbn.com/video/business/09/10/20/ntc-orders-recall-of-frequencies-channels-assigned-to-abs-cbn

 PH reserves could breach $100 billion as gold rises: Bangko Sentral [ABS-CBN News, September 10, 2020]

The Bangko Sentral ng Pilipinas (BSP) said Thursday that the country’s gross international reserves could hit more than $100 billion this year as the price of gold continues to rise. 

Source: https://news.abs-cbn.com/business/09/10/20/ph-reserves-could-breach-100-billion-as-gold-rises-bangko-sentral

 Finance department expects P2.71T tax collection in 2021 as economy reopens further [ABS-CBN News, September 10, 2020]

 Finance Secretary Carlos Dominguez on Thursday said the government expects to collect some P2.71 trillion in taxes in 2021 as the Philippines continues to ease economic restrictions linked to the COVID-19 pandemic.

Source: https://news.abs-cbn.com/business/09/10/20/finance-department-expects-p271t-tax-collection-in-2021-as-economy-reopens-further

GCash expects P1 trillion in transactions by year-end as pandemic alters financial behaviour [ABS-CBN News, September 10, 2020]

Mobile wallet provider GCash said Thursday it expects to handle at least P1 trillion in transactions by the end of the year as the COVID-19 pandemic alters consumer and financial behaviors.

Source: https://news.abs-cbn.com/business/09/10/20/gcash-expects-p1-trillion-in-transactions-by-year-end-as-pandemic-alters-financial-behavior

More gov’t agencies, LGUs to accept payments via PayMaya [ABS-CBN News, September 10, 2020]

More government offices will now accept online payments for transactions, PayMaya said Thursday, as it partnered with several agencies to boost cashless and contactless transactions.

Source: https://news.abs-cbn.com/business/09/10/20/more-govt-agencies-lgus-to-accept-payments-via-paymaya

PH economic recovery rests on 2021 budget, ‘set of measures’ to aid businesses [ABS-CBN News, September 10, 2020]

Economic recovery from the COVID-19 pandemic rests not just on the 2021 budget but also the swift passage of other measures meant to assist struggling businesses, Finance Asec. Tony Lambino said Thursday.

Source: https://news.abs-cbn.com/business/09/10/20/ph-economic-recovery-rests-on-2021-budget-set-of-measures-to-aid-businesses

DOF chief pushes for 2021 budget’s ‘swift’ passage as Senate begins tackling P4.5T spending bill [ABS-CBN News, September 9, 2020]

Finance Secretary Carlos Dominguez on Wednesday urged the Senate to “swiftly” pass the P4.5-trillion 2021 budget and at least 3 bills to enable the government to revive the Philippine economy stunted by the COVID-19 crisis.

Source: https://news.abs-cbn.com/business/09/09/20/dof-chief-pushes-for-2021-budgets-swift-passage-as-senate-begins-tackling-p45t-spending-bill

BSP to issue its own debt papers starting Sept. 18 [Philippine Daily Inquirer, September 9, 2020]

The central bank will start issuing its own debt instruments starting next week in a move that officials said would allow the monetary regulator to better manage the amount of cash circulating in the local financial system.

Source: https://business.inquirer.net/306947/bsp-to-issue-its-own-debt-papers-starting-sept-18#ixzz6XukmzAD6 

 DOLE out of funds to help formal workers weather pandemic [ABS-CBN News, September 8, 2020]

Labor Secretary Silvestre Bello III said Tuesday his agency only had funds to help informal workers cope with the coronavirus pandemic, and none for formal workers. 

Source: https://news.abs-cbn.com/video/business/09/08/20/dole-out-of-funds-to-help-formal-workers-weather-pandemic

 Online business name registration soars during quarantine period: DTI [ABS-CBN News, September 8, 2020]

Business name registration for online businesses surged during the quarantine period compared to January to March as the pandemic hastened digital adoption in government transactions, the Department of Trade and Industry said Tuesday.

Source: https://news.abs-cbn.com/business/09/08/20/online-business-name-registration-soars-during-quarantine-period-dti

 BSP says Filipinos financially ill-prepared for retirement, offers ‘Digital Pera’ [Philippine Daily Inquirer, September 8, 2020]

The central bank on Tuesday (Sept. 8) urged Filipinos to take advantage of an “underutilized” law to fatten their pension programs, noting that Philippine citizens were among the most poorly prepared in the region for the financial challenges of retirement.

Source: https://business.inquirer.net/306888/bsp-says-filipinos-financially-ill-prepared-for-retirement-offers-digital-pera#ixzz6XukZBvJG

 House OKs San Miguel Corp franchise to build, operate new Bulacan airport [ABS-CBN News, September 7, 2020]

The House of Representatives on Monday approved on third and final reading a measure granting San Miguel Corp a franchise to construct a new airport in Bulacan and an adjacent airport city, some 30 kilometers north of Metro Manila.

Source: https://news.abs-cbn.com/business/09/07/20/house-oks-san-miguel-corp-franchise-to-build-operate-new-bulacan-airport

 ‘Data privacy’ must be observed in social media monitoring of quarantine violations: NPC [ABS-CBN News, September 7, 2020]

The Philippine National Police must consider data privacy rights in its plan to monitor social media for quarantine violations, the country’s Privacy Commissioner said Monday.

Source: https://news.abs-cbn.com/business/09/07/20/data-privacy-must-be-observed-in-social-media-monitoring-of-quarantine-violations-npc

DOF, BIR implement ‘voluntary assessment’ to settle 2018 tax deficiencies [ABS-CBN News, September 7, 2020]

Taxpayers who have liabilities will be able to settle them without going through an audit, the Department of Finance said Monday as it announced a program that it said provides an easier way to settle tax deficiencies. 

Source: https://news.abs-cbn.com/business/09/07/20/dof-bir-implement-voluntary-assessment-to-settle-2018-tax-deficiencies

Mall landlords, tenants face off in Australia as foot traffic plunges amid COVID-19 pandemic [Philippine Daily Inquirer, September 7, 2020]

Australia’s first American-style shopping mall opened in 1957 – a sprawling, 26-store centre in Brisbane that attracted 15,000 people on its opening day.

Source: https://business.inquirer.net/306814/mall-landlords-tenants-face-off-in-australia-as-foot-traffic-plunges-amid-covid-19-pandemic

Businesses frequented by migrant workers in Singapore’s Chinatown, Little India badly hit by COVID-19 [Philippine Daily Inquirer, September 6, 2020]

Even while retail activity appears to be slowly recovering as the economy reopens, businesses previously frequented by migrant workers in areas like Chinatown and Little India continue to bleed, with workers choosing to shop and eat closer to where they stay instead, causing shops in central areas to shutter as a result.

Source: https://business.inquirer.net/306746/businesses-frequented-by-migrant-workers-in-singapores-chinatown-little-india-badly-hit-by-covid-19#ixzz6XulpVYYO 

If you wish to get a copy of the complete texts of the above issuances, send us an email thru taxseminars@dmdcpa.com.ph.