Long list of VAT exemptions under review

  1. TAX & BUSINESS-RELATED NEWS [JUNE 20-30
  2. BIR PRESCRIBES THE MANDATORY REQUIREMENTS, GUIDELINES & PROCEDURES IN THE PROCESSING OF VAT REFUND
  3. BIR CIRCULARIZES THE NEWLY ENLISTED & DELISTED WITHHOLDING AGENTS
  4. BIR REVERTS THE RATES OF PERCENTAGE TAX, MCIT & PROPRIETARY TAX OF SCHOOLS & HOSPITALS
  5. DOJ LEGAL OPINION ON THE JURISDICTION OF FDA VS. BAI
  6. SUPREME COURT CASES

1. TAX & BUSINESS-RELATED NEWS [JUNE 20-30

  1. Holcim Philippines eyes delisting from stock exchange
  2. Long list of VAT exemptions under review
  3. Baguio urged to tax tourists for water use
  4. UBS to cut 35,000 jobs after Credit Suisse rescue: report
  5. BIR chief recognized for good governance
  6. Grab confirms layoffs in PH business
  7. South Korea starts accepting e-Group Visa applications from PH
  8. TRO vs Razon–led firm and CENECO denied
  9. Pryce to start building air separation facility
  10. BSP bans 6 money service firms
  11. BIR simplifies VAT refunds
  12. BIR starts probe into 2022 ITRs amid goal to hit P2.6T collection target this year
  13. SEC launches new services in digitalization push
  14. Zubiri signs enrolled Maharlika, estate tax bills
  15. PRC: No law provision on temporary license for nursing graduates
  16. SEC files complaint vs PetroMobil for alleged Ponzi scheme
  17. House bill seeks ‘junior citizens’ discount for persons 12 years old and below
  18. Did You Know? Filipinos Can Visit Several Other Countries with a Japan Visa
  19. BIR files cases vs buyers, firms linked to ghost receipts, P17.9-B tax liabilities
  20. Proposed rules on SEC FARMS
  21. SEC fines NOW Corp. P1M over ‘misleading’ info; firm to seek reconsideration
  22. 20 Luzon power distributors may face penalties
  23. 48 Luzon power distributors seek cost adjustments —ERC
  24. Singapore’s Grab cuts 1,000 jobs to stay competitive
  25. Tax hike on junk food, sweetened beverages to be sought this year —DBM
  26. BingoPlus Foundation partners with ‘one of the most trusted foundations’
  27. BSP launches coin deposit machines
  28. 28. 6 companies, 32 others face ‘abusive collection’ raps before DOJ

2. BIR PRESCRIBES THE MANDATORY REQUIREMENTS, GUIDELINES, AND PROCEDURES IN THE PROCESSING OF VAT REFUND

Revenue Memorandum Order (RMO) No. 23-2023, issued on June 23, 2023, provides the updated guidelines and prescribes the mandatory documentary requirements and procedures in the processing and grant of Value-Added Tax (VAT) credit/refund claims except those under the authority and jurisdiction of the legal group under Section 112, 204(C) and 229 of the 1997 Tax Code, as amended, in line with the latest developments on VAT introduced by Republic Act (R.A.) No. 10963 or the Tax Reform for Acceleration and Inclusion or TRAIN Law and R.A. No. 11534, also known as Corporate Recovery and Tax Incentives for Enterprises Act or the CREATE Act.

 

Highlights include the reduction of the number of documentary requirements and non-submission of soft copies of the sales invoices or official receipts in support of purchases and sales of goods or services. Instead, taxpayer claimants availing themselves of the VAT refund are only required to submit the original copies of the said documents.

3. BIR CIRCULARIZES THE NEWLY ENLISTED & DELISTED WITHHOLDING AGENTS

Revenue Memorandum Circular (RMC) No. 70-2023, issued on June 22, 2023, circularizes the additional list of withholding agents for inclusion to and deletion from the existing list of withholding agents required to deduct and remit either the 1% or 2% Creditable Withholding Tax (CWT) from the regular income payments to their local suppliers of goods and services, respectively, pursuant to Revenue Regulations (RR) No. 31-2020. The obligation to deduct and remit shall commence or cease effective July 1, 2023. Any taxpayer not found in the published list is not required to deduct and remit the 1% or 2% CWT.

4. BIR REVERTS THE RATES OF PERCENTAGE TAX, MCIT & PROPRIETARY TAX OF SCHOOLS & HOSPITALS

Revenue Memorandum Circular (RMC) No. 69-2023, issued on June 20, 2023, reverts the rate of Percentage Tax, Minimum Corporate Income Tax (MCIT), and Regular Corporate Income Tax of proprietary educational institutions and not for profit hospitals, pursuant to Republic Act (R.A.) No. 11534, otherwise known as the “Corporate Recovery and Tax Incentives for Enterprises Act.”

5. DOJ LEGAL OPINION ON THE JURISDICTION OF FDA VS. BAI

FDA HAS REGULATORY JURISDICTION OVER VETERINARY DRUG PRODUCTS & ESTABLISHMENTS

The Department of Health (DOH) is requesting an opinion on the regulatory jurisdiction of the Food and Drug Administration (FDA) under the DOH and the Bureau of Animal Industry (BAI) of the Department of Agriculture (DA) over veterinary drug products. In reply, the DOJ advised that BAI has no regulatory jurisdiction over veterinary drug products and establishments. The authority to regulate veterinary drug products and establishments fall within the purview of the FDA. BAI’s primary mandate is to ensure food sufficiency by formulating programs to develop, and prescribing standards for quality in the manufacture, importation, labelling, advertising, distribution, and sale of livestock, poultry, and allied industries. The BAI’s regulatory authority covers the animal industry including the production, processing, preservation, and marketing of animals, products and by-products for human food security as distinguished from the pharmaceutical/health industry that develop and produce veterinary drugs for animal health and human food safety which properly falls under the regulatory authority of the FDA. [DEPARTMENT OF JUSTICE OPINION NO. 15 SERIES OF 2023, MAY 5, 2023]

6. SUPREME COURT CASES

[WARRANT OF DISTRAINT AND/OR LEVY IS THE ADVERSE DECISION APPEALABLE TO THE CTA & NOT THE FDDA] [WHERE THE BIR CONDUCTS AN AUDIT WITHOUT A VALID LOA, OR IN EXCESS OF THE AUTHORITY DULY PROVIDED THEREFOR, THE RESULTING ASSESSMENT SHALL BE VOID AND INEFFECTUAL]

Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review on Certiorari assailing the earlier Decision and Resolution of CTA En Banc affirming the Decision which declared the Final Assessment Notice (FAN) and the Warrant of Distraint or Levy (WDL) issued against the Respondent Manila Medical Services, Inc. for being null and void. Petitioner maintained that the Final Decision on Disputed Assessment (FDDA) should be the adverse decision appealable to the CTA and not the WDL. However, the Respondent denied that it received the said FDDA. In ruling, even assuming that the FDDA was really received by Respondent, the same would still be void for failure to comply with the requirements. The alleged FDDA merely informed the Respondent of its supposed tax liabilities without any basis. Hence, the Court ruled that the WDL is the adverse decision appealable to the CTA and not the FDDA. Moreover, Petitioner argued that what the Letter of Authority (LOA) authorizes is the conduct of an audit against a taxpayer by the BIR’s revenue officers (ROs), but the Court disagreed. It held that an LOA is the authority given to the appropriate RO assigned to perform assessment functions. Contrary to Petitioner’s argument, if the ROs that were previously indicated in an LOA were reassigned or transferred to another case and as such, a new RO will handle the case that was previously assigned to them, the issuance of a new LOA in favor of the new handling RO is required. Therefore, without the new LOA, the new RO was not authorized to conduct the examination and assessment of the tax liabilities of Respondent. Consequently, the Petition was DENIED[COMMISSIONER OF INTERNAL REVENUE VS. MANILA MEDICAL SERVICES, INC. (MANILA DOCTORS HOSPITAL), G.R. NO. 255473, FEBRUARY 13, 2023, UPLOADED APRIL 24, 2023]

[PAYMENT OF FEES FOR THE ISSUANCE OF BUSINESS PERMITS IS REGULATORY IN NATURE UNDER THE LOCAL GOVERNMENT UNIT’S POLICE POWER] [BUSINESS PERMIT FEE IS NOT A TAX FOR REVENUE GENERATION] [TAX-EXEMPT ENTITIES CANNOT CLAIM TO BE EXEMPTED FROM PAYING FEES FOR BUSINESS PERMITS]

Petitioners Bases Conversion and Development Authority and John Hay Management Corporation filed a Petition for Review on Certiorari assailing the earlier Decision and Order of the Regional Trial Court upholding an Administrative Order requiring establishments within the John Hay Special Economic Zone (JHSEZ) to secure business permits and pay the corresponding fees to continue their business operations. Petitioners argued that the issuance of business permits is “primarily revenue-raising” since before it can be issued, establishments must pay the applicable fees based on their gross receipts for the fiscal year. Petitioners insisted that establishments in JHSEZ have preferential tax treatment under the law. Respondent City Government of Baguio countered that the business permit fees were regulatory in nature since their main purpose is to regulate trade for efficient and effective governance, and for the promotion of the general welfare. In ruling, the Court clarified that business taxes are regulatory in nature, since they are essentially fees paid for the exercise of a privilege. While the power to impose business taxes is rooted in a local government unit’s power to generate its own sources of revenue, the imposition itself is in the exercise of its police power. The Court held that the mayor’s permit fee is not a tax that establishments within JHSEZ are exempt from paying. No statute authorizes Petitioner to issue permits or regulate businesses inside the JHSEZ. Without an express grant by law, Respondent’s police power prevails. Thus, locators within JHSEZ not duly registered with the Philippine Economic Zone Authority are liable to pay business permit fees to Respondent. Consequently, the Petition was DENIED[BASES CONVERSION & DEVELOPMENT AUTHORITY & JOHN HAY MANAGEMENT CORPORATION VS. CITY GOVERNMENT OF BAGUIO CITY, G.R. NO. 192694, FEBRUARY 22, 2023, UPLOADED APRIL 24, 2023]

[THE CLOSURE OF AMA BANK IS UNWARRANTED AS IT IS NOT BASED ON THE GROUNDS PROVIDED BY LAW] [AMA BANK IS NOT AN AILING BANK]

Petitioners Philippine Deposit Insurance Corporation (PDIC) and Bangko Sentral ng Pilipinas (BSP) filed their Petitions for Review on Certiorari seeking to reverse and set aside the earlier Court of Appeals (CA)’ Decision. BSP asserted that it did not gravely abuse its discretion in issuing Monetary Board (MB) Resolution No. 1705.D because it relied on substantial evidence consisting of empirical data and verifiable information in deciding to close AMA Bank. BSP also contended that factual findings of administrative bodies charged with their specific field of expertise, such as BSP is in the realm of banking regulation, are afforded great weight by the courts, and are deemed conclusive. Meanwhile, PDIC questioned the CA’s grant of certiorari and prohibition against it, arguing that it did not exercise judicial or quasi-judicial functions when it implemented MB Resolution No. 1705.D. In ruling, the power and authority of the MB to close banks is an exercise of police power, which is subject to judicial inquiry. There is no doubt that MB has the authority to forbid a bank from doing business and place it under receivership. However, BSP failed to sufficiently establish the existence of any grounds that would warrant the closure of AMA Bank and its being placed under receivership. AMA Bank has not announced its closure, nor has it been dormant for at least 60 days. No depositors complained of any difficulty in withdrawing their deposits, nor creditors claimed any default in the payment of their credit. The records are also bereft of any finding of insufficiency of realizable assets to meet AMA Bank’s liabilities. There being no valid grounds that would justify AMA Bank’s closure, the inevitable conclusion is that MB Resolution No. 1705.D. is void. Consequently, PDIC’s Letter, which was issued to implement the same is likewise void. Accordingly, the Petitions were both DENIED[PHILIPPINE DEPOSIT INSURANCE CORPORATION (PDIC) VS. MA FE BALCEDA SINORO & THE MAJORITY STOCKHOLDERS OF AMA RURAL BANK OF MANDALUYONG, INC., G.R. NO. 253411, & BANGKO SENTRAL NG PILIPINAS VS. MA FE BALCEDA SINORO & THE MAJORITY STOCKHOLDERS OF AMA RURAL BANK OF MANDALUYONG, INC., G.R. NO. 253270, MARCH 1, 2023, UPLOADED MARCH 31, 2023]

 

 

Holcim Philippines eyes delisting from stock exchange [The Philippine Star, June 30, 2023]

Holcim Philippines, Inc. is looking to delist from the Philippine Stock Exchange after Holderfin B.V., a major shareholder in the cement maker, bought out shares owned by Sumitomo Osaka Cement Co.

https://www.philstar.com/business/2023/06/29/2277457/holcim-philippines-eyes-delisting-stock-exchange

Long list of VAT exemptions under review [The Philippine Star, June 29, 2023]

The Department of Finance (DOF) is revisiting the implementation of the value-added tax (VAT) system as the government can no longer afford additional VAT exemptions in order to maximize potential revenues.

https://www.philstar.com/headlines/2023/06/29/2277319/long-list-vat-exemptions-under-review-

Baguio urged to tax tourists for water use [Philippine Daily Inquirer, June 28, 2023]

Collecting taxes from tourists and transients for the water they consume may help finance new rainwater-harvesting projects that can augment the city’s dwindling water supply, Salvador Royeca, general manager of the Baguio Water District (BWD),  said on Monday.

https://newsinfo.inquirer.net/1794048/baguio-govt-urged-to-tax-tourists-for-water-use

Diokno defends sugar import liberalization amid plan to raise sugary drinks tax [GMA News Online, June 28, 2023]

The Department of Finance is proposing to increase the beverage tax rate under the Tax Reform for Acceleration and Inclusion (TRAIN) Law to P12 per liter regardless of the type of sweetener used.

https://www.gmanetwork.com/news/money/economy/874226/diokno-defends-sugar-import-liberalization-amid-plan-to-raise-sugary-drinks-tax/story/

 

UBS to cut 35,000 jobs after Credit Suisse rescue: report [ABS-CBN News, June 28, 2023]

Swiss banking group UBS plans to cut 35,000 jobs at Credit Suisse — more than half its workforce — as part of the emergency rescue takeover of its rival in March, according to a report by Bloomberg News on Tuesday.

https://news.abs-cbn.com/business/06/28/23/ubs-to-cut-35000-jobs-after-credit-suisse-rescue-report

 

BIR chief recognized for good governance [The Manila Times, June 27, 2023]

THE Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. has been recognized for good governance through efficient revenue and tax collection by Kaya Natin! Movement for Good Governance and Ethical Leadership

https://www.manilatimes.net/2023/06/27/news/national/bir-chief-recognized-for-good-governance/1897994

 

Grab confirms layoffs in PH business [Philippine Daily Inquirer, June 27, 2023]

Grab CEO Anthony Tan last week said a thousand employees were let go to improve cost efficiency. The restructuring program came after the company continued to register losses during the first quarter.

https://business.inquirer.net/407278/grab-confirms-layoffs-in-ph-business

 

South Korea starts accepting e-Group Visa applications from PH [Manila Bulletin, June 27, 2023]

It said that “e-Group Visa may be applied through accredited travel agencies for group of at least 3 members from company incentive tour group, educational tour group of below collegiate level, and regular tour group, who plan to enter and exit with same vessel, flight, or other same scheduled means of transportation.”

https://mb.com.ph/2023/6/27/south-korea-starts-accepting-e-group-visa-applications-from-ph

 

TRO vs Razon–led firm and CENECO denied [The Philippine Star, June 26, 2023]

A Bacolod regional trial court has denied a petition to stop the proposed joint venture agreement between the Central Negros Electric Cooperative (CENECO) and Primelectric Holdings Inc., an affiliate of Enrique Razon-led MORE Electric and Power Corp.

https://www.philstar.com/business/2023/06/26/2276504/tro-vs-razonled-firm-and-ceneco-denied

 

Pryce to start building air separation facility [The Manila Times, June 26, 2023]

INDUSTRIAL firm Pryce Corp. will soon begin construction of an air separation plant for its oxygen business, which when completed is expected to boost profit margins in the coming years.

https://www.manilatimes.net/2023/06/26/business/corporate-news/pryce-to-start-building-air-separation-facility/1897816

 

BSP bans 6 money service firms [Manila Bulletin, June 26, 2023]

The Bangko Sentral ng Pilipinas (BSP) has disqualified six firms from registering with the BSP as money service businesses (MSBs) after they were caught operating without a license.

https://mb.com.ph/2023/6/26/bsp-bans-6-money-service-firms

 

BIR simplifies VAT refunds [The Philippine Star, June 25, 2023]

“We hope that with this, taxpayers will realize that the BIR is now a service-oriented agency, not merely a goal-oriented one. We will continue to look for ways that will make the Philippines a haven for businesses and investments,” he said.

https://www.philstar.com/business/2023/06/25/2276295/bir-simplifies-vat-refunds

 

BIR starts probe into 2022 ITRs amid goal to hit P2.6T collection target this year [Manila Bulletin, June 22, 2023]

BIR Commissioner Romeo D. Lumagui, Jr. said he had already instructed regional directors across the country to begin serving Letters of Authority (LAs) to both individual and business taxpayers.

https://mb.com.ph/2023/6/22/bir-starts-probe-into-2022-it-rs-amid-goal-to-hit-p2-6-t-this-year

 

SEC launches new services in digitalization push [ABS-CBN News, June 22, 2023]

SEC’s new services include its Check App 2.0, SEC Universal Registration Environment (SECURE), Electronic SEC Education, Analysis, and Research Computing Hub (eSEARCH), and Electronic Registry Application for Market Participants (eRAMP).

https://news.abs-cbn.com/business/06/22/23/sec-launches-new-e-services

 

Zubiri signs enrolled Maharlika, estate tax bills [The Philippine Star, June 22, 2023]

Aside from the MIF, Zubiri also signed the Estate Tax Amnesty Extension. Under the bill, the period of availing of estate tax amnesty is extended by two years to June 2025. First extended from 2021 to 2023, this is the second extension of amnesty.

https://www.philstar.com/headlines/2023/06/22/2275633/zubiri-signs-enrolled-maharlika-estate-tax-bills-

 

PRC: No law provision on temporary license for nursing graduates [ABS-CBN News, June 22, 2023]

PRC Commissioner Jose Cueto Jr. said section 21 of Republic Act 9173 or the Philippine Nursing Act only gives temporary license or permits to licensed nurses from foreign countries.

https://news.abs-cbn.com/news/06/22/23/prc-no-law-provision-on-temporary-license-for-nursing-graduates

 

SEC files complaint vs PetroMobil for alleged Ponzi scheme [Rappler, June 21, 2023]

PetroMobil promised returns of as much as P100,000 for every P400,000 – a typical Ponzi scheme, according to the Securities and Exchange Commission

https://www.rappler.com/business/sec-files-complaint-petromobil-alleged-ponzi-scheme-june-2023/

 

House bill seeks ‘junior citizens’ discount for persons 12 years old and below [GMA News Online, June 21, 2023]

If senior citizens are afforded benefits and privileges, a member of the House of Representatives believes that “junior citizens” or those zero to 12 years old should also be entitled to the same.

https://www.gmanetwork.com/news/topstories/nation/873536/house-bill-seeks-junior-citizens-discount-for-persons-12-years-old-and-below/story/

 

Did You Know? Filipinos Can Visit Several Other Countries with a Japan Visa [Preview, June 21, 2023]

Passport holders with a valid visa for Japan and other states in the Organization for Economic Co-operation and Development (OECD) are exempted from visa requirements.

https://www.preview.ph/culture/countries-to-visit-with-japan-visa-filipinos-a00398-20230620?ref=home_featured_1

 

BIR files cases vs buyers, firms linked to ghost receipts, P17.9-B tax liabilities [ABS-CBN News, June 21, 2023]

The Bureau of Internal Revenue on Wednesday said it filed criminal cases against corporate officers, accounting firms, and accountants involved in fake or ghost receipts.

https://news.abs-cbn.com/business/06/21/23/bir-files-cases-vs-buyers-firms-linked-to-ghost-receipts-p179-b-tax-liabilities

 

Proposed rules on SEC FARMS [The Manila Times, June 21, 2023]

ON June 15, 2023, the Securities and Exchange Commission (SEC) issued a draft memorandum circular (MC) and, at the same time, requested the public to comment on the proposed simplified registration statement form and procedures under the Securing and Expanding Capital for Farms and Agribusiness Related Modernization Schemes (SEC FARMS).

https://www.manilatimes.net/2023/06/21/business/top-business/proposed-rules-on-sec-farms/1897058

 

SEC fines NOW Corp. P1M over ‘misleading’ info; firm to seek reconsideration [GMA News Online, June 21, 2023]

According to SEC, the case stemmed from NOW’s November 2021 disclosure that it has no knowledge on the details of the motion supposedly filed by the National Telecommunications Commission before the Supreme Court against NOW Telecom Company Inc. since it is not party to the case.

https://www.gmanetwork.com/news/money/companies/873574/sec-fines-now-p1m-over-misleading-info-firm-to-seek-reconsideration/story/

 

20 Luzon power distributors may face penalties [The Philippine Star, June 21, 2023]

In a statement yesterday, the ERC said 20 Luzon power distribution utilities (DUs) have yet to submit their applications for automatic cost adjustment and true-up mechanisms even as the deadline lapsed.

https://www.philstar.com/business/2023/06/21/2275308/20-luzon-power-distributors-may-face-penalties

 

48 Luzon power distributors seek cost adjustments —ERC [GMA News Online, June 21, 2023]

The said resolution contains the revised rules governing the automatic cost adjustment and true-up mechanisms for DUs which aim for more transparent collection of pass-through costs or charges starting 2023.

https://www.gmanetwork.com/news/money/economy/873614/48-luzon-power-distributors-seek-cost-adjustments-erc/story/

 

Singapore’s Grab cuts 1,000 jobs to stay competitive [interaksyon, June 21, 2023]

“Change has never been this fast. Technology such as generative AI (artificial intelligence) is evolving at breakneck speed. The cost of capital has gone up, directly impacting the competitive landscape,” Tan said in the letter.

https://interaksyon.philstar.com/business/2023/06/21/254043/singapores-grab-cuts-1000-jobs-to-stay-competitive/

 

Tax hike on junk food, sweetened beverages to be sought this year —DBM [GMA News Online, June 21, 2023]

“Under the proposed tax program, the DOF plans to impose a P10 per 100 grams or P10 per 100 milliliters tax on pre-packaged foods lacking nutritional value, including confectioneries, snacks, desserts, and frozen confectioneries, that exceed the DOH’s specified thresholds for fat, salt, and sugar content,” Diokno said.

https://www.gmanetwork.com/news/money/economy/873575/tax-hike-on-junk-food-sweetened-beverages-to-be-sought-this-year-dbm/story/

 

BingoPlus Foundation partners with ‘one of the most trusted foundations’ [The Manila Times, June 21, 2023]

“The TV5 family is growing, and we are very happy that this is the right time for BingoPlus Foundation to join Alagang Kapatid Foundation in our 11th year of operation. It is a great thing for us that we are collaborating with them. We are very fortunate because now we can be very hopeful with our future projects knowing that we have BingoPlus Foundation behind us, rallying us, behind our projects,” Silvestre said.

https://www.manilatimes.net/2023/06/21/public-square/bingoplus-foundation-partners-with-one-of-the-most-trusted-foundations/1896993

 

BSP launches coin deposit machines [GMA News Online, June 20, 2023]

The Bangko Sentral ng Pilipinas (BSP) and its partner retailers on Tuesday officially launched three coin deposit machines (CoDM), with six more set to be deployed in the next few days, in a bid to encourage the public to make use of their idle coins.

https://www.gmanetwork.com/news/money/economy/873463/bsp-launches-coin-deposit-machines/story/

 

6 companies, 32 others face ‘abusive collection’ raps before DOJ [ABS-CBN News, June 20, 2023]

Financial service providers are barred, under the Financial Products and Services Consumer Protection Act (RA 11765), from employing abusive collection or debt recovery practices against their financial consumers.

https://news.abs-cbn.com/news/06/20/23/6-companies-32-individuals-face-abusive-collection-raps