BIR REVISES THE INVENTORY LIST SUBMISSION TO INCLUDE THE SOFT COPY AS STORED IN A FLASH DRIVE

Other Relevant Tax Updates:

  1. TAX & BUSINESS-RELATED NEWS [JANUARY 17-23]
  2. BIR REVISES THE INVENTORY LIST SUBMISSION TO INCLUDE THE SOFT COPY AS STORED IN A USB FLASH DRIVE
  3. BIR IMPLEMENTS THE 10% DISCOUNT & VAT EXEMPTION ENTITLEMENTS OF SOLO PARENTS UNDER THE EXPANDED SOLO PARENTS WELFARE ACT
  4. BIR RULING ON PAGCOR LICENSEE’S EXTENT OF TAX INCENTIVES
  5. CTA CASES ON ACQUITTAL OF MARIA RESSA OF RAPPLER & JURISDICTION OF CTA OVER EXECUTIVE BRANCH EXERCISE OF MINISTERIAL DUTY

1. TAX & BUSINESS-RELATED NEWS [JANUARY 17-23]

  1. Bangko Sentral hikes ceiling for credit card fees to 3 percent
  2. SteelAsia, BaoSteel forge deal to build P 108-B facility
  3. Manila Water signs P200 million loan with BPI for Bulakan Water
  4. Former ICTSI finance chief joins Prime Infra board
  5. Asialink teams up with e-commerce giants
  6. BSP to review credit card rate ceiling every 6 months
  7. LLEX construction set in March
  8. 1st LTO-registered electric motorbike arrives in Cebu
  9. Bayad and PitakaMo relaunches partnership
  10. 2Go Group introduces multi-temperature vans
  11. SC orders Lazada: Reinstate illegally dismissed riders, provide backwages
  12. RCBC asks US court to junk Bank of Bangladesh suit
  13. Global tech care firm expands in Clark, hiring over 700
  14. Cash-on-delivery makes comeback as payment method of choice
  15. Manila Bay casino developer misses interest payments on debts
  16. Cheese in the trap: Salceda eyes higher taxes on private jets, pricey bags
  17. Tulfo names big-time oil smugglers
  18. Marcos OKs temporary zero-tariff policy for e-vehicles, spare parts
  19. Jinggoy seeks more protection for employers vs ‘criminal-minded’ maids
  20. PHINMA Education says to support poor students by pursuing distance learning
  21. P’sinan-N. Vizcaya border row stunts tourism site’s development
  22. Tulfo files bill to turn some holidays into long weekends

 

Bangko Sentral hikes ceiling for credit card fees to 3 percent [ABS-CBN News, January 23, 2023]

“The policy aligns the credit card interest rate ceiling with developments in the macro economy and cushions the impact of inflationary pressure on banks’/credit card issuers’ ability to provide quality credit card services to their clients,” BSP Governor Felipe Medalla said.

https://news.abs-cbn.com/business/01/23/23/bsp-hikes-ceiling-on-credit-card-fees-to-3-percent

SteelAsia, BaoSteel forge deal to build P 108-B facility [Inquirer Mobile, January 23, 2023]

SteelAsia Manufacturing Corp. said it had entered into an agreement with the world’s largest steel producer, China’s BaoSteel Group, to build a P108-billion integrated steel facility in the Philippines, expanding further its capacity to produce materials used in infrastructure and heavy construction.

https://inqm.news/stxd

Manila Water signs P200 million loan with BPI for Bulakan Water [ABS-CBN News, January 23, 2023]

Razon’s Prime Metroline Holdings Inc’s Trident Water Company Holdings earlier acquired 51 percent voting interest in Manila Water Co.

https://news.abs-cbn.com/business/01/23/23/manila-water-signs-p200-million-loan-with-bpi-for-bulakan-water

Former ICTSI finance chief joins Prime Infra board [BusinessWorld, January 23, 2023]

PRIME Infrastructure Capital, Inc. (Prime Infra) announced that Martin O’Neil, former chief financial officer of International Container Terminal Services, Inc. (ICTSI), has joined its board of directors.

https://www.bworldonline.com/corporate/2023/01/23/500100/former-ictsi-finance-chief-joins-prime-infra-board/

Asialink teams up with e-commerce giants [Manila Bulletin, January 23, 2023]

Asialink Finance Corp., one of the Philippines’ fastest-growing finance companies, has partnered with e-commerce giants Lazada and Shopee to give its clients an easier way to make loan payments.

https://mb.com.ph/2023/01/23/asialink-teams-up-with-e-commerce-giants/

BSP to review credit card rate ceiling every 6 months [Manila Bulletin, January 22, 2023]

The Bangko Sentral ng Pilipinas (BSP) will review the interest rate ceiling on credit card transactions every six months to monitor and assess if cardholders are coping with the increased payments on their credit card balances.

https://mb.com.ph/2023/01/22/bsp-to-review-credit-card-rate-ceiling-every-6-months/

LLEX construction set in March [SunStar Cebu, January 22, 2023]

THE construction of the P24.8-billion Lapu-Lapu Expressway (LLEX), also known as the skyway project, is expected to begin in March this year.

https://www.sunstar.com.ph/article/1951490/cebu/local-news/llex-construction-set-in-march

1st LTO-registered electric motorbike arrives in Cebu [SunStar, January 22, 2023]

A new year means a new opportunity for Mikh Manglapus, owner of VMOTO Super Soco, as he extends his innovation of advanced motorbikes by launching his newest branch on Jan. 13 at Unit 1, Dona Carmen Bldg., Banilad, Cebu City.

https://ph.news.yahoo.com/1st-lto-registered-electric-motorbike-183600113.html

Bayad and PitakaMo relaunches partnership [Manila Bulletin, January 22, 2023]

CIS Bayad Center Inc. (Bayad), the largest multi-channel payment platform in the Philippines relaunches partnership with PitakaMo IT Solutions and Marketing Corporation (PitakaMo), a digital payment service provider of its franchisor brand AllEn One Grocery and Payment Center (AllEn One).

https://mb.com.ph/2023/01/22/bayad-and-pitakamo-relaunches-partnership/

2Go Group introduces multi-temperature vans [Manilastandard.net, January 22, 2023]

Each mixed temperature reefer van has a length of 20 feet and will be used for its less than container load reefer service. 2GO’s subsidiary 2GO Special Containers and Value-Added Services Inc. will manage the multi-temperature reefer vans.

https://manilastandard.net/business/corporate/314298447/2go-group-introduces-multi-temperature-vans.html

SC orders Lazada: Reinstate illegally dismissed riders, provide backwages [The Philippine Star, January 21, 2023]

In a statement released Friday, the SC explained why they ruled in favor of the petitioners maintaining that the employer bears the burden to prove that the person whose service it pays for is an “independent contractor” rather than a regular employee with or without fixed terms.

https://www.philstar.com/headlines/2023/01/21/2239219/sc-orders-lazada-reinstate-illegally-dismissed-riders-provide-backwages

RCBC asks US court to junk Bank of Bangladesh suit [Inquirer Mobile, January 21, 2023]

The US Court, in a decision released on Jan. 14, ruled in favor of the Bangladesh central bank and confirmed its jurisdiction over RCBC and the individual defendants in the case, which was filed in May 2020.

https://inqm.news/stxr

Global tech care firm expands in Clark, hiring over 700 [Manila Bulletin, January 21, 2023]

Global tech care company Asurion announced it will open a new site in Clark, its fifth in the Philippines, and is looking to hire more than 700 talented team members.

https://mb.com.ph/2023/01/21/global-tech-care-firm-expands-in-clark-hiring-over-700/

Cash-on-delivery makes comeback as payment method of choice [Inquirer Mobile, January 21, 2023]

Enstack CEO and co-founder Macy Castillo, in a briefing on Friday in Taguig, raised the need for entrepreneurs to offer multiple payment methods—including cash-on-delivery (COD) schemes and digital payments through e-wallets and direct debit—to cater to the preferences of customers.

https://inqm.news/stxn

Manila Bay casino developer misses interest payments on debts [Inquirer Mobile, January 21, 2023]

Suntrust Resort Holdings Inc., owned by Hong Kong-listed LET Group Holdings (formerly Suncity Group Holdings), said in a Philippine Stock Exchange filing that it failed to pay interest on the P5.6-billion bonds issued to affiliate Summit Ascent Investments Ltd. on Dec. 30, 2020.

https://inqm.news/stxv

Cheese in the trap: Salceda eyes higher taxes on private jets, pricey bags [ABS-CBN News, January 20, 2023]

Albay 2nd District Rep. Joey Salceda warned imposing a wealth tax would only scare off potential investors including billionaires who are already living in the Philippines.

https://news.abs-cbn.com/news/01/20/23/salceda-eyes-higher-taxes-on-private-jets-pricey-bags

Tulfo names big-time oil smugglers [Manila Bulletin, January 19, 2023]

He praised the Bureau of Internal Revenue (BIR) hierarchy for suspending its cooperation with the BOC in the fuel marking program when it learned that the integrity of their joint operation with BOC was questioned.

https://mb.com.ph/2023/01/19/tulfo-names-big-time-oil-smugglers/

Marcos OKs temporary zero-tariff policy for e-vehicles, spare parts [Manila Bulletin, January 19, 2023]

Under the EO, import duty rates on electric vehicles, parts, and components under Republic Act (RA) No. 10863 or the Customs Modernization Act are temporarily modified to zero for a period of five years.

https://mb.com.ph/2023/01/19/marcos-oks-temporary-zero-tariff-policy-for-e-vehicles-spare-parts/

Jinggoy seeks more protection for employers vs ‘criminal-minded’ maids [ABS-CBN News, January 18, 2023]

In revisiting the “Batas Kasambahay,” which was signed into law in 2013, Estrada introduced provisions in his Senate Bill No. 456 to establish “greater responsibility and accountability” on private employment agencies (PEA) as safeguard to employers and their families from domestic workers with “criminal minds.”

https://news.abs-cbn.com/news/01/18/23/jinggoy-seeks-more-protection-for-employers-vs-criminal-minded-maids

PHINMA Education says to support poor students by pursuing distance learning [ABS-CBN News, January 18, 2023]

PHINMA Education Philippines Country Head Christopher Tan said on Wednesday the institution would not go back to full face-to-face learning to help poor students.

https://news.abs-cbn.com/video/business/01/18/23/phinma-education-says-to-pursue-distance-learning-for-poor-students

P’sinan-N. Vizcaya border row stunts tourism site’s development [Philippine News Agency, January 17, 2023]

SAN NICOLAS, Pangasinan – The mountain village of Malico is drawing more tourists for its cold weather, mountain range view, waterfalls, and sometimes a sea of clouds — plus its historical value in World War II — making the unresolved decade-long dispute over the ownership between Pangasinan and Nueva Vizcaya to resurface anew.

https://www.pna.gov.ph/articles/1192945

Tulfo files bill to turn some holidays into long weekends [ABS-CBN News, January 17, 2023]

To recall, holiday economics was a practice under the administration of former President Gloria Macapagal-Arroyo, which moved regular and special holidays to the nearest Monday to boost domestic tourism.

https://news.abs-cbn.com/news/01/17/23/senator-wants-to-turn-some-holidays-into-long-weekends

2. BIR REVISES THE INVENTORY LIST SUBMISSION TO INCLUDE THE SOFT COPY AS STORED IN A USB FLASH DRIVE

Revenue Memorandum Circular (RMC) No. 8-2023, issued on January 20, 2023, revises the format on the submission of the Inventory List pursuant to RMC No. 57-2015. As prescribed, the inventory list shall now be submitted in soft copies using the format shown in the Annex, stored/saved on a DVD-R or Universal Storage Bus (USB) Flash drive, together with a notarized certification.

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DOWNLOAD ANNEX A-C

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3. BIR IMPLEMENTS THE 10% DISCOUNT & VAT EXEMPTION ENTITLEMENTS OF SOLO PARENTS UNDER THE EXPANDED SOLO PARENTS WELFARE ACT

Revenue Regulations (RR) No. 1-2023, issued on January 18, 2023, implements the 10% discount and the Value-Added Tax (VAT) exemption under Republic Act (R.A.) No. 11861 or the “Expanded Solo Parents Welfare Act.” Highlights include the qualification, extent of the 10% discount and VAT exemption, manner of availment, and administrative requirements on the part of the seller to avail of the tax incentives.

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4. BIR RULING ON PAGCOR LICENSEE’S EXTENT OF TAX INCENTIVES

RESORT CASINO PAGCOR LICENSEE IS SUBJECT TO THE 5% FRANCHISE TAX & 0% VAT ON LOCAL PURCHASES RELATED TO ITS DEVELOPMENT, CONSTRUCTION & OPERATION

D Co., a licensee of the Philippine Amusement and Gaming Corporation (PAGCOR), is seeking confirmation that all domestic purchases of goods and services and importations of equipment, paraphernalia, construction materials, professional services for the sole and exclusive use for the casino operation shall not be subject to 12% VAT. In reply, since D Co. is a licensee of PAGCOR to undertake the development and construction of a casino resort and to establish and operate the Casino, the exemption from taxes, fees, and charges enjoyed by PAGCOR is extended to D Co. pursuant to Presidential Decree (P.D.) No. 1869, as amended. Therefore, the income derived by D Co. from its operation of D Resort and Casino is subject only to the 5% Franchise Tax and shall be exempted from the 25% corporate income tax and, consequently, to the withholding tax. However, any income that may be realized from related services or such services not falling under its gaming operations shall be subject to the 25% corporate income tax. Also, all domestic sales of goods and services by VAT-registered persons to D Co. directly related to its gaming operations shall be subject to 0% VAT rate. Lastly, all importations made by D Co. directly related to its gaming operations shall not be subject to the 12% VAT on the ground of its exemption from all taxes pursuant to P.D. No. 1869. However, D Co.’s importation and sales of goods and services related to its non-gaming operations shall be subject to VAT and other applicable taxes. [BIR RULING NO. 442-2022, DECEMBER 27, 2022]

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5. CTA CASES ON ACQUITTAL OF MARIA RESSA OF RAPPLER & JURISDICTION OF CTA OVER EXECUTIVE BRANCH EXERCISE OF MINISTERIAL DUTY

[A DEFICIENCY TAX ASSESSMENT IS NOT NECESSARY BEFORE A CRIMINAL CASE MAY BE FILED] [HOLDING COMPANIES, ASIDE FROM MERELY HOLDING THE STOCK OF ANOTHER CORPORATION OR CORPORATIONS, MAY ENGAGE IN INVESTMENT/FINANCIAL ACTIVITIES FOR THEIR SUBSIDIARY/IES] [PHILIPPINE DEPOSITARY RECEIPTS ARE NOT STATEMENTS NOR ARE THEY CERTIFICATES OF OWNERSHIP OF A CORPORATION]

Accused Rappler Holdings Corporation (RHC) and Maria Ressa were charged for violations of Sections 254 and 255 of the 1997 Tax Code, as amended. Plaintiff People of the Philippines alleged that the Accused’s willful failure to report RHC’s trading income in its Annual Income Tax Returns (AITR) and its sales receipts in their quarterly Value-Added Tax (VAT) returns, constitute essential elements of the crimes described in Sections 254 and 255 of the 1997 Tax Code, as amended. Plaintiff theorized that Accused RHC is a “dealer in securities” when it made several purchases of Rappler, Inc.’s shares and resold the same through the issuance of Philippine Depositary Receipts (PDRs) in favor of foreign buyers. The Accused countered that it does not hold itself out to the public as a dealer in securities. Likewise, it is registered with the Securities and Exchange Commission (SEC) as a holding company which is reflected in its primary purpose. Further, the Revenue Officers did not conduct a formal investigation and failed to comply with the requirements under Revenue Memorandum Order No. 27-2010 and 24-2008, thereby violating the Accused’s due process rights. In ruling, the Court held that there is no requirement for the precise computation and assessment of the tax before there can be a criminal prosecution. Thus, the Accused’s right to due process was not violated, notwithstanding the absence of valid tax assessments or even when the said tax assessments were issued and the same were not received by the taxpayer. As to the substantial aspect, the Court ruled that the Accused RHC is not a dealer in securities. The evidence shows that the Accused RHC was not habitually or regularly engaged in the purchase and resale of securities. The issuance of the PDRs by RHC was done pursuant to a legitimate business purpose (i.e., to raise capital for its subsidiary, which is consistent with one of the purposes of RHC as a holding company). RHC did not earn any trading income from the issuance of PDRs to foreign entities. The process whereby the PDRs were issued to foreign entities reveals that it did not involve a sale of shares of stock but were investment transactions. Having determined, the non-taxability of the issuance of PDRs to foreign entities, the Court concluded that the elements of the crime charged were not present. Consequently, the Accused RHC and Maria Ressa were ACQUITTED for failure of the Prosecution to prove their guilt beyond reasonable doubt. [PEOPLE OF THE PHILIPPINES VS. RAPPLER HOLDINGS CORPORATION/MARIA A. RESSA, CTA CRIMINAL CASE NOS. O-679 TO O-682, JANUARY 18, 2023]

[A CASE QUESTIONING AN EXERCISE OF MINISTERIAL ACT THROUGH A DEPARTMENT ORDER SHOULD BE DISMISSED DUE TO LACK OF JURISDICTION] [IN FILING AN APPEAL BEFORE CTA, IT IS ESSENTIAL THAT THE APPEALED ACTION HAS BEEN DONE IN THE EXERCISE OF JUDICIAL OR QUASI-JUDICIAL POWERS]

Petitioner Ecossential Foods Corporation filed an Amended Petition for Review seeking nullification of Department Order (DO) No. 06, Series of 2018, issued by the Respondent Secretary of the Department of Agriculture. Petitioner claimed that the Court has jurisdiction over the present controversy based on Section 29 of Republic Act No. 8800, or the Safeguard Measures Act. It also argued that in imposing the Special Safeguard (SSG), DO No. 06 transgressed the provisions of the General Agreement on Tariffs and Trade of 1994 (GATT), ASEAN Trade in Goods Agreement (ATIGA), and Common Effective Preferential Tariff (CEPT) Scheme. The Philippines, being a party to the ATIGA, its import of coffee products from Indonesia (another member of the ASEAN) is subject to a 9% preferential rate on import duties. On the other hand, the Respondent maintained that DO No. 06 is a valid and legal enactment because the Respondent Secretary has the authority to impose SSG under Section 29 of RA No. 8800. In ruling, the Court finds that it has no jurisdiction. The law limits the scope of the CTA’s jurisdiction only to “decisions” rendered by the Respondent Secretary. Here, DO No. 06 is not a decision or ruling but a form of subordinate legislation (or, at the very least, a ministerial act of the Respondent Secretary). Since DO No. 06 is neither a decision nor ruling as contemplated by the statute, any action or decision on the merits that the CTA will make, in this case, would be void for lack of jurisdiction. Consequently, the Amended Petition was DISMISSED[ECOSSENTIAL FOODS CORPORATION VS. HON. EMMANUEL F. PINOL, IN HIS CAPACITY AS SECRETARY OF THE DEPARTMENT OF AGRICULTURE & COMMISSIONER REY LEONARDO GUERRERO, IN HIS CAPACITY AS THE COMMISSIONER OF THE BUREAU OF CUSTOMS, CTA CASE NO. 9929, DECEMBER 1, 2022