SEC SETS THE DEADLINE FOR THE SUBMISSION OF 2022 AFS & GIS THROUGH eFAST
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [DECEMBER 5-15]
- SEC SETS THE DEADLINE FOR THE SUBMISSION OF 2022 AFS & GIS THROUGH eFAST
- BIR SUSPENDS ALL AUDIT & OTHER FIELD OPERATIONS EFFECTIVE DECEMBER 16, 2022
- BIR ANNOUNCES THE AVAILABILITY OF ONLINE REGISTRATION & UPDATE SYSTEM (ORUS)
- CTA CASE ON THE SITUS OF LOCAL BUSINESS TAX
- BIR RULING ON TAXABILITY OF BACKWAGES & AWARDED INTEREST OF ILLEGALLY DISMISSED EMPLOYEE
1. TAX & BUSINESS-RELATED NEWS [DECEMBER 5-15]
- Bangko Sentral to review 2 percent per month credit card interest ceiling as rates rise
- Marcos orders creation of advisory board with int’l shipowners to address PH seafaring issues
- BIR vows to study Marcos Jr. estate tax case
- BIR files cases against illegal Vape sellers
- Lopez firm buys unit of US healthcare provider
- Cisco to train 6.7 million Asia-Pacific students in technology skills
- Bill allowing students with unpaid school fees to take exams gets House nod
- Yamaha Motor reels from semiconductor shortage, says Koike
- Malampaya consortium: There’s no refusal to sell gas to Ilijan power plant
- Mitsubishi has now exported 5 million vehicles out of Thailand
- Globe closes P9.5-billion sale of towers to Frontier Tower Associates
- SEC flags 2 illegal investment schemes in Mindanao
- Binance’s Alleged Crypto Audit Failed, Not Even Its Auditor Would Vouch For It
- 2 BIR employees arrested for P3 million extortion
- One unit per floor: Andrew Tan to build plush 47-storey condo in BGC
- Depositor loses P1 million in bank account
- Twitter to delete 1.5 billion accounts, announces Elon Musk
- Employers appeal for deferment of SSS, PhilHealth contribution hike
- PAL to launch Manila-Perth route in March 2023
- Pampanga governor is Converge FiberXer’s new team manager
- DTI Sec. Pascual tells PEZA Director General to answer employee complaints
- Pampanga biz group asks NLEx Corp. to redesign third viaduct
- SMC in top 200 of Forbes ‘World’s Best Employers’ list
- Trump Organization convicted of tax fraud in New York
- Cost of convenience: Edu Manzano finds BDO’s P25 fee for online fund transfers too high
- PH eyes to overtake Vietnam, Indonesia FDIs
- Jollibee in talks to sell a stake in Vietnam’s Highlands Coffee —sources
- From 60 to 56: Senator wants lower age to be considered ‘senior citizen’
- Ricky Razon-led Apex expands mining operations in Davao de Oro
- Lance Gokongwei to step down as president, CEO of Cebu Pacific after 25 years; to replace retiring uncle James Go as chairman
Bangko Sentral to review 2 percent per month credit card interest ceiling as rates rise [ABS-CBN News, December 15, 2022]
The BSP in November kept the monthly ceiling for credit card interest rates and other fees at 2 percent. But Medalla said this may need to be adjusted in light of recent hikes in the central bank’s rates.
https://news.abs-cbn.com/business/12/15/22/credit-card-fee-hike-bsp-to-review-ceiling-as-rates-rise
Marcos orders creation of advisory board with int’l shipowners to address PH seafaring issues [Manila Bulletin, December 13, 2022]
The move is also part of the government’s efforts to comply with the European Maritime Safety Agency (EMSA) standards after the EU flagged the Philippines for deficiencies in local seafarer training and education earlier this year.
BIR vows to study Marcos Jr. estate tax case [Inquirer.Net, December 13, 2022]
The Bureau of Internal Revenue (BIR) will study the estate tax case of the family of President Ferdinand “Bongbong” Marcos Jr., the bureau’s commissioner Romeo Lumagui Jr. said on Thursday.
https://newsinfo.inquirer.net/1704791/bir-vows-to-study-marcos-estate-tax-case
BIR files cases against illegal Vape sellers [Manila Bulletin, December 13, 2022]
The criminal complaints came as a result of a previous raid, wherein Lumagui personally led a specialized team to inspect the onsite and online business operations of the accused in Binondo.
https://mb.com.ph/2022/12/13/bir-files-cases-against-illegal-vape-sellers/
Lopez firm buys unit of US healthcare provider [BusinessWorld, December 12, 2022]
LOPEZ-LED First Philippine Holdings Corp. (FPH) has signed an agreement to acquire the local subsidiary of Medical Services of America, Inc. (MSA) as part of its expansion plans in the healthcare industry.
Cisco to train 6.7 million Asia-Pacific students in technology skills [Philippine Daily Inquirer, December 12, 2022]
Announced at the Cisco Live Melbourne conference on Thursday, the training program will be done through the 25-year-old Cisco Networking Academy, one of the world’s longest running skills-to-jobs initiative of its kind, offering technology education through public-private partnerships alongside workforce development.
Bill allowing students with unpaid school fees to take exams gets House nod [Manila Bulletin, December 12, 2022]
With 237 votes, the lower chamber passed House Bill (HB) No. 6483, or “An Act Allowing College Students with Unpaid Tuition and Other School Fees to Take the Periodic and Final Examinations on Good Cause and Justifiable Grounds.”
Yamaha Motor reels from semiconductor shortage, says Koike [BusinessWorld, December 12, 2022]
Hiroshi Koike, Yamaha Motor Philippines president, said that the company’s sales for 2022 are around 20% of pre-pandemic levels due to the lack of semiconductors used in assembling the motorcycles.
Malampaya consortium: There’s no refusal to sell gas to Ilijan power plant [Philippine Daily Inquirer, December 12, 2022]
“The consortium strongly refutes SPPC’s (South Premiere Power Corp.) claim and maintains that there is no refusal to sell to Ilijan because there is no legal means by which the sale of gas to the plant could be made,” they said in a statement.
Mitsubishi has now exported 5 million vehicles out of Thailand [TopGear Philippines, December 12, 2022]
While the Japanese carmaker has been producing cars in Thailand as far back as 1992, it was only in the past decade that exports really began to take off. Mitsubishi Motors Thailand hit one million exports in 2007, and proceeded to reach its second-million, third-million, and fourth-million exports in 2013, 2016, and 2019, respectively.
https://www.dmdcpa.com.ph/roundcube/?_task=logout&_token=lmbjllfnzWvOk1315e1d3CkuvhUIzl8x
Globe closes P9.5-billion sale of towers to Frontier Tower Associates [GMA News Online, December 12, 2022]
Ayala-led Globe Telecom Inc. on Monday said it closed the sale of 750 towers to Frontier Tower Associates Philippines Inc. for P9.5 billion, with proceeds to be used for its debt servicing requirements in 2023.
SEC flags 2 illegal investment schemes in Mindanao [Inquirer Mindanao, December 11, 2022]
The SEC Davao Extension Office (SEC-DEO) confirmed that both the OTCJKE (also known as OTC Automated Trading Platform and JKE International Limited) and the A Power (also known as APower Pro, A Power PH, APower Power Bank, APower Power Bank Sharing Solution OPC) are illegally soliciting investments from the public.
https://business.inquirer.net/377412/sec-flags-2-illegal-investment-schemes-in-mindanao
Binance’s Alleged Crypto Audit Failed, Not Even Its Auditor Would Vouch For It [Mish Talk, December 11, 2022]
Binance says an audit shows proof of reserves of customer funds. But its auditor will not vouch for the reserves nor the methodology demanded by Binance.
2 BIR employees arrested for P3 million extortion [The Philippine Star, December 10, 2022]
Two Bureau of Internal Revenue (BIR) employees and two alleged accomplices were caught in a sting in Caloocan City on Tuesday for allegedly extorting P3 million from a business owner.
https://www.philstar.com/nation/2022/12/10/2229765/2-bir-employees-arrested-p3-million-extortion
One unit per floor: Andrew Tan to build plush 47-storey condo in BGC [Bilyonaryo, December 10, 2022]
The project, One Forbes Town, will have one unit per floor with over 500 square meters of space and a breathtaking view of the Manila Golf Club greens and Makati’s skyline.
Depositor loses P1 million in bank account [GMA News Online, December 10, 2022]
According to John Consulta’s report on “24 Oras”, Flordelina Chan said she received numerous messages on one-time passwords on October 26 and October 27.
Twitter to delete 1.5 billion accounts, announces Elon Musk [Geo News, December 9, 2022]
Taking to Twitter, the billionaire said: “Twitter will soon start freeing the name space of 1.5 billion accounts.”
https://www.geo.tv/latest/457569-twitter-to-delete-15-billion-accounts-announces-elon-musk
Employers appeal for deferment of SSS, PhilHealth contribution hike [GMA News Online, December 9, 2022]
The increase favors most SSS members, but some employers, such as the Employers Confederation of the Philippines (ECOP), are asking for its postponement.
PAL to launch Manila-Perth route in March 2023 [Philippine Daily Inquirer, December 9, 2022]
Philippine Airlines (PAL) is linking Manila and Perth for the first time beginning March 27 next year, expanding the flag carrier’s presence in the Australian continent.
https://business.inquirer.net/377068/pal-to-launch-manila-perth-route-in-march-2023
Pampanga governor is Converge FiberXer’s new team manager [Philippine Daily Inquirer, December 8, 2022]
Pampanga Gov. Dennis Pineda has confirmed that he has accepted to help Converge FiberXers as team manager for the third conference of the Philippine Basketball Association’s (PBA) 47th season.
https://sports.inquirer.net/489281/pampanga-governor-is-converge-fiberxers-new-team-manager
DTI Sec. Pascual tells PEZA Director General to answer employee complaints [ABS-CBN News, December 8, 2022]
Panga allegedly terminated several contractual employees, put permanent employees under floating status, and demoted several long time employees of the agency which was against civil service rules.
Pampanga biz group asks NLEx Corp. to redesign third viaduct [Philippine Daily Inquirer, December 8, 2022]
Called the first and second viaducts or bridges over portions of Candaba and San Simon towns in Pampanga, the north- and south-bound lanes have been undergoing repairs since July 2022.
https://newsinfo.inquirer.net/1703031/pampanga-biz-group-asks-nlex-corp-to-redesign-third-viaduct
SMC in top 200 of Forbes ‘World’s Best Employers’ list [Manila Bulletin, December 7, 2022]
Diversified conglomerate San Miguel Corporation (SMC) was named Forbes Magazine’s annual list of the World’s Best Employers which includes 800 firms from some 57 countries.
https://mb.com.ph/2022/12/07/smc-in-top-200-of-forbes-worlds-best-employers-list/
Trump Organization convicted of tax fraud in New York [ABS-CBN News, December 7, 2022]
The Trump Organization and separate entity the Trump Payroll Corp were found guilty on all counts, marking the first time the companies had ever been convicted of crimes.
https://news.abs-cbn.com/overseas/12/07/22/trump-organization-convicted-of-tax-fraud-in-new-york
Cost of convenience: Edu Manzano finds BDO’s P25 fee for online fund transfers too high [Bilyonaryo, December 7, 2022]
Will the Bangko Sentral ng Pilipinas move to cap the fund transfer fees to lessen the financial burden on banks’ clients?
PH eyes to overtake Vietnam, Indonesia FDIs [Manila Bulletin, December 7, 2022]
The Board of Investments (BOI) has set a fighting target to overtake Vietnam in terms of foreign direct investment (FDI) inflows by 2024 and Indonesia by 2026, around midterm of President Ferdinand Marcos Jr.’s administration.
https://mb.com.ph/2022/12/07/ph-eyes-to-overtake-vietnam-indonesia-fdis/
Jollibee in talks to sell a stake in Vietnam’s Highlands Coffee —sources [Interaksyon, December 7, 2022]
Jollibee initially bought a small stake in Highlands Coffee a decade ago and then took a controlling interest. Highlands Coffee, which was established in 1999, began as a coffee products packager in Hanoi and has since grown to become a chain with more than 500 stores in Vietnam and the Philippines.
From 60 to 56: Senator wants lower age to be considered ‘senior citizen’ [ABS-CBN News, December 6, 2022]
Revilla’s Senate Bill No. 1573 would amend Republic Act No. 7432, which defines senior citizens as Philippine residents at least 60 years old.
https://news.abs-cbn.com/news/12/06/22/senator-wants-to-lower-age-of-senior-citizens
Ricky Razon-led Apex expands mining operations in Davao de Oro [Bilyonaryo, December 5, 2022]
Ultra bilyonaryo Ricky Razon’s Apex Mining is poised to expand its mining operations in Maco, Davao de Oro with the acquisition of a mining firm with interests there.
Lance Gokongwei to step down as president, CEO of Cebu Pacific after 25 years; to replace retiring uncle James Go as chairman [Bilyonaryo, December 5, 2022]
The Aeronautical Engineering graduate from Manchester University had previously worked with British Airways and EasyJet in the UK; and he was CEO of Viva Aerobus in Mexico, Spanair in Spain, Viva Air in Colombia and Al Maha in Saudi Arabia.
2. SEC SETS THE DEADLINE FOR THE SUBMISSION OF 2022 AFS & GIS THROUGH eFAST
SEC Memorandum Circular 9, Series of 2022, dated December 6, 2022, sets the deadlines for the filing and submission of the 2022 Audited Financial Statements (AFS) and General Information Sheet (GIS) of corporations through the Electronic Filing and Submission Tool (eFAST). All reports shall be submitted online through eFAST. Likewise, any problem encountered on the enrolment and submission as well as other reports that are not yet accepted through eFAST shall be submitted through ictdsubmission@sec.gov.ph and dedicated e-mail address posted at https://www.sec.gov.ph/contact-us/, respectively. Further, no over the counter, mail, or courier under the SEC Express Nationwide Submission shall no longer be accepted.
3. BIR SUSPENDS ALL AUDIT & OTHER FIELD OPERATIONS EFFECTIVE DECEMBER 16, 2022
Revenue Memorandum Order (RMO) No. 55-2022, issued on December 15, 2022, suspends all audit and other field operations for the period December 16, 2022, to January 8, 2023. No written orders to audit and investigate shall be issued except on prescribing cases on or before April 15, 2023, tax evasion, processing and verification of one-time transactions, taxpayers retiring from business, monitoring of privilege stores or tiangge, warrants, and seizure orders, among others. Taxpayers are encouraged to pay voluntarily without the need of the BIR approval. employer account enrolment to facilitate issuance of TIN of employees, and registration of books of accounts.
4. BIR ANNOUNCES THE AVAILABILITY OF ONLINE REGISTRATION & UPDATE SYSTEM (ORUS)
Revenue Memorandum Circular (RMC) No. 152-2022, issued on December 12, 2022, circularizes the availability of Online Registration and Update System (ORUS), a web-based system that gives taxpayers a convenient and alternative facility for end-to-end process of registration such as issuance of Tax Identification Number for foreign individuals, registration of business and issuance of Certificate of Registration and Authority to Print,
5. CTA CASE ON THE SITUS OF LOCAL BUSINESS TAX
[BUSINESS TAXES ARE DUE IN THE CITY WHERE THE TRADE OR COMMERCIAL ACTIVITIES ARE CONDUCTED] [IN ORDER FOR A CITY TO VALIDLY IMPOSE LOCAL BUSINESS TAX, THE SITUS (I.E., PRINCIPAL PLACE OF BUSINESS OR BRANCH AND SALES OFFICE) THEREOF MUST BE IN THAT CITY]
Petitioner Lazada E-Services Philippines, Inc. filed a Petition for Review against Respondents, City of Makati and City Treasurer of Makati, praying that the Regional Trial Court’s earlier Decision and Resolution be reversed. Petitioner argued that there is no legal basis to support the ruling of the Court a quo that the Petitioner continued to be liable for the Local Business Tax (LBT) to Makati City until the filing of its application for retirement of business. Petitioner asserted that after the transfer of its principal office to Taguig City in 2016, it only maintained an administrative office in Makati, which did not record any sales transactions nor issue receipts or invoices. Thus, Respondents have no authority to impose LBT for years 2016 and 2017. In ruling, contrary to the ruling of the Court a quo, the authority of local government units to impose LBT for 2016 and 2017 is not dependent on the procedural requirement of filing an application for retirement of business but is conditioned on the business transactions conducted within their territorial jurisdiction. However, the Petitioner failed to prove that the operations in its Makati office were limited to non-revenue generating activities. Hence, the LBT assessments issued to Petitioner were sustained except for the year 2016, which was cancelled for lack of sufficient factual basis. Consequently, the Petition was PARTIALLY GRANTED. The earlier Decision and Order were AFFIRMED with MODIFICATION. [LAZADA E-SERVICES PHILIPPINES, INC. VS. CITY OF MAKATI, CITY TREASURER OF MAKATI, CTA AC NO. 261, NOVEMBER 23, 2022]
6. BIR RULING ON THE TAXABILITY OF BACKWAGES & AWARDED INTEREST OF ILLEGALLY DISMISSED EMPLOYEE
P, a retired and illegally terminated employee of N Co., is requesting clarification on the tax rate applicable to the backwages and the amount representing unpaid salaries and interest income accumulated in relation to the award of backwages. In ruling, backwages and the amount representing unpaid salaries are remuneration for services which are subject to income tax, and consequently, to the withholding tax on wages. However, the illegally dismissed employee is accorded special treatment i.e., he is allowed to allocate or spread his backwages, allowances, and benefits through the years he was dismissed from service, having been denied payment of his wages when they were due because of circumstances not of his own making and, therefore, beyond his control. Thus, in computing the net income tax of P, the amount deducted and withheld for the taxable years P was illegally dismissed from service by N Co. shall be allowed as a credit against the tax imposed. Moreover, P is likewise allowed to deduct personal and additional exemptions during the years P was illegally dismissed. On interest income, while accumulated in relation to the award of backwages, the same cannot be considered as compensation because the remuneration is not for services rendered. Nevertheless, the interest income in question shall still be subject to income tax. [BIR RULING NO. 411-2022, OCTOBER 7, 2022]
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