DoLE issues 2024 holiday pay rules
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [DECEMBER 15-21]
- COURT OF TAX APPEALS CASES
- SUPREME COURT CASES
- TAX & BUSINESS-RELATED NEWS [DECEMBER 15-21]
- DoLE issues 2024 holiday pay rules
- Alternergy gives up wind contract
- Maritime schools appeal for last-minute changes on Magna Carta
- CTA rejects BPO firm’s P13-M tax refund claim
- Korea suffers OECD’s highest old-age poverty rate
- GSIS plunks P1.45B into Vince Perez’s renewables firm
- DOLE urges WFH amid rising COVID-19 cases
- Cabinet appointment spurs Gokongwei group reshuffle
- Lucio Co latest tycoon to join renewables race
- BPI enters 2024 with bank takeover
- Solon questions high Meralco rates: ‘If cooperatives can, why can’t you?’
- The Catholic Church now allows preserving of a fragment of a deceased’s cremated ashes
- Mandaue BPLO chief to businesses: Sell only what’s allowed in biz permit to avoid sanctions
- Makati’s skyline soars: Historic real estate deal hits P1.6 million/sqm
- Reviving PT&T: Old telco player is back to battle tech giants
- New Year brings wage increases in Metro Manila, Caraga
- Millennium Challenge makes way back to PH
- Singapore restricts remittances to China after US$10 million in funds frozen
- Approved Dalton Pass alternative road will connect Cagayan Valley, CAR by 2031
- SC affirms ruling lifting sequestration of Cojuanco Baguio property
- SEC orders Superbreakthrough Enterprises to cease operations
- ‘SEC can’t use retained funds for staff insurance’
- US drive-thru operated by ‘AI’ is discovered to be run by people from countries like the Philippines
- SC affirms dismissal of accountant over ‘paluwagan’
- Philippines drops foreign ownership case against Nobel laureate Maria Ressa
- Revitalizing finances: Marcos admin targets P120.5 billion revenue boost with eight new taxes in 2024
- Cordova toll bridge extension to break ground in mid-2024
2. CTA CASES ON CIVIL LIABILITY ASSOCIATED IN CRIMINAL CASES & CTA JURISDICTION ON THE DOF DECISION
EVEN IF THE GUILT OF THE ACCUSED HAS NOT BEEN SATISFACTORILY ESTABLISHED, HE IS NOT NECESSARILY EXEMPT FROM CIVIL LIABILITY FOR TAXES WHICH MAY ONLY BE PROVED BY PREPONDERANCE OF EVIDENCE
Accused Rizaldy Goloran Chua was charged for violation of Section 255 of the 1997 Tax Code, as amended, for failure to supply correct and accurate information in his Income Tax Returns (ITR). The Accused argued that the Plaintiff failed to prove that his non-declaration of income in his ITRs relative to his gold sales with the Bangko Sentral ng Pilipinas was willful or with design to evade or defeat his income tax obligations. In ruling, the Court emphasized that the burden of proof in criminal prosecutions lies with the Prosecution to establish the guilt of the Accused beyond reasonable doubt. In this case, the Court found that the Plaintiff failed to prove the willful failure by the Accused to supply correct and accurate information in the Annual ITRs filed for the specified taxable years, creating reasonable doubt as to his guilt. Therefore, the Court concluded that the Plaintiff failed to discharge the burden of proving all the essential elements of the crime attributed to the Accused, leading to his acquittal. Furthermore, citing the recent case of People vs. Mendez, it contained two doctrines, one of which was that the obligation of the taxpayer to pay the tax is not a civil liability arising from the crime that could be extinguished by his acquittal in the criminal charge. In the interest of justice, the CTA reopened the case for the reception of evidence for the Accused on the civil aspect of the case. Consequently, the Accused was ACQUITTED of the offenses charged against him for failure of the Plaintiff to prove beyond reasonable doubt. [PEOPLE OF THE PHILIPPINES VS. RIZALDY GOLORAN CHUA, CTA CRIMINAL CASE NO. O-792 & O-793, NOVEMBER 30, 2023]
COURT OF TAX APPEALS HAS JURISDICTION OVER THE DEPARTMENT OF FINANCE DECISION
Petitioner Midtown Printing Co., Inc. filed a Petition for Review praying that the earlier BIR Ruling denying its request for confirmation that the printing of yearbooks is exempted from Value-Added Tax (VAT) for lack of legal basis, be set aside and declared invalid and void. Petitioner challenged the dismissal by the Secretary of Finance (SOF) of its Request for Review of BIR Ruling issued by the Respondent Commissioner of Internal Revenue (CIR) based on purely technical grounds. It argued that the Court of Tax Appeals (CTA) has jurisdiction over the Petition under its inherent power and expanded jurisdiction. On the other hand, the Respondent contended that the Court has no jurisdiction, and assuming without conceding that the CTA has jurisdiction, the Petition deserves no merit because the assailed BIR Ruling is valid and not contrary to law. Likewise, the supposed irregularities cited by the Petitioner in the issuance of the BIR Ruling do not constitute excusable negligence that would warrant a relaxation of the mandatory and jurisdictional rules on appeal. In ruling, the CTA held that it has jurisdiction over the decisions of the SOF. To leave undetermined the mode of appeal from the SOF would be an injustice to taxpayers prejudiced by his adverse rulings. However, the Court ruled that the SOF properly dismissed the Petitioner’s Request for Review of BIR Ruling for being time-barred. While the Petitioner alleged circumstances which, accordingly, warrant the relaxation of the procedural rules and the resolution of the case on the merits, it failed to present evidence to prove the same. Consequently, the Petition was DENIED. [MIDTOWN PRINTING CO., INC. VS. SECRETARY OF THE DEPARTMENT OF FINANCE & COMMISSIONER OF INTERNAL REVENUE, CTA CASE NO. 10055, NOVEMBER 23, 2023]
3. SUPREME COURT CASES ON SSS REMITTANCE & VALIDITY OF LOCAL ORDINANCE
REMITTANCE OF SOCIAL SECURITY CONTRIBUTIONS ARE STATUTORY OBLIGATIONS OF EVERY EMPLOYER
Petitioner Philippine Telegraph & Telephone Corporation filed a Petition for Review on Certiorari praying the reversal of the earlier Decision and Resolution of the Court of Appeals, which affirmed the Resolution of the Respondent Social Security System (SSS) requiring the Petitioner to pay its outstanding salary/calamity loan delinquency with penalties. Petitioner argued that it was not liable for the delinquent payments and that Respondent erred in computing its existing liability since it failed to consider the amount paid or deducted from its employees’ retirement pay representing their salary calamity loans. Further, it was under rehabilitation and that the payment of the delinquent salary/calamity loan amortizations would prejudice its Rehabilitation Plan. In ruling, the Court held that the Petitioner cannot shirk from its statutory obligation to pay the delinquent salary/calamity loan amortizations of its employees. The Court noted that the Rehabilitation Court approved the Rehabilitation Plan and ordered the Petitioner to settle its delinquent salary/calamity loan amortizations. Petitioner’s defense of payment remains unproven. Moreover, the Respondent’s Order to pay does not grant the Respondent undue preference as a creditor. Consequently, the Petition was DENIED for lack of merit. The total amount due shall be subject to a legal interest of 6% per annum reckoned from the finality of the Court’s ruling until full satisfaction. [PHILIPPINE TELEGRAPH & TELEPHONE CORPORATION VS. SOCIAL SECURITY SYSTEM, G.R. NO. 252592, AUGUST 31, 2022, UPLOADED AUGUST 10, 2023]
[LOCAL ORDINANCES, HOWEVER LAUDABLE THEIR OBJECTIVES MIGHT BE, SHOULD NOT CONTRAVENE STATE-ENACTED LEGISLATION] [LOCAL GOVERNMENT UNITS MERELY DERIVE THEIR POWER FROM THE STATE LEGISLATURE; AS SUCH, THEY CANNOT REGULATE ACTIVITIES ALREADY ALLOWED BY STATUTE]
Petitioner City of Batangas filed a Petition for Review on Certiorari assailing the earlier Decision and Resolution of the Court of Appeals declaring Ordinance No. 3, Series of 2001, which sought to regulate water usage by industrial and commercial establishments, enacted by the Sangguniang Panlungsod of the City of Batangas unconstitutional for want of necessity, lack of public hearing, and violation of due process. Petitioner contended that the Ordinance was enacted for the general welfare of its constituents and was within the scope of the City’s regulatory and taxation powers. On the other hand, Respondents First Gas and FGP maintained that the Petitioner arrogated unto itself the power to prohibit the utilization of water, a function exclusive to the National Water Resources Board. Likewise, the power of the City Mayor to issue a cease-and-desist order upon mere knowledge of a violation of the Ordinance violated businesses’ right to notice and hearing. In ruling, the Court held in favor of the Respondents. Local ordinances, no matter how laudable their objectives, cannot contravene State-enacted legislation. With no proof that the enactment of the Ordinance was with prior approval of the National Water Resources Board, the said Ordinance is void for contravening a statute. Under the Water Code, the appropriation, utilization, conservation, and protection of our country’s water resources is under the jurisdiction of the National Water Resources Board. Consequently, the Petition was DENIED. [CITY OF BATANGAS VS. JG SUMMIT PETROCHEMICAL CORPORATION & FIRST GAS POWER CORPORATION, G.R. NO. 190266-67, MARCH 15, 2023, UPLOADED AUGUST 8, 2023]
DoLE issues 2024 holiday pay rules [The Manila Times, December 21, 2023]
Labor Secretary Bienvenido Laguesma released Labor Advisory 27, Series of 2023, calling on employers to comply with general labor standards.
Alternergy gives up wind contract [The Manila Times, December 21, 2023]
RENEWABLE energy firm Alternergy Holdings Corp. on Wednesday said that its subsidiary had decided to return its wind energy service contract (WESC) covering the Calavite Passage offshore wind project to the Department of Energy (DoE).
Maritime schools appeal for last-minute changes on Magna Carta [The Manila Times, December 21, 2023]
Considering the enormous cost of acquiring a training ship, not to mention its maintenance, these provisions put an untold burden on MHEIs. Not only that, PAMI said the Magna Carta has gone beyond its mandate of serving as the enabling law of MLC 2006 since it tries to merge two international conventions that regulate seafarers worldwide.
CTA rejects BPO firm’s P13-M tax refund claim [Philippine News Agency, December 20, 2023]
The firm had registered with the Philippine Economic Zone Authority (PEZA) as an information technology (IT) enterprise with numerous sites throughout the country. However, its branch in Puerto Princesa City, Palawan is registered with the Bureau of Internal Revenue (BIR) merely as a “facility” but not registered with PEZA which would have entitled it to tax breaks as its location is not a PEZA site.
Korea suffers OECD’s highest old-age poverty rate [The Korea Times, December 20, 2023]
In particular, senior citizens in Korea had low disposable income, although their employment rates were higher than most OECD member nations.
GSIS plunks P1.45B into Vince Perez’s renewables firm [Inquirer Mobile, December 20, 2023]
The company led by former Energy Secretary Vicente Perez Jr. announced last month that GSIS had subscribed to 100 million of Alternergy’s preferred shares at P14.50 per share under a private placement.
DOLE urges WFH amid rising COVID-19 cases [The Philippine Star, December 20, 2023]
He further stressed that there is an existing Telecommuting Law that both employers and workers can agree to adopt.
Cabinet appointment spurs Gokongwei group reshuffle [The Philippine Star, December 20, 2023]
The Gokongwei Group will soon name a new president and CEO for Robinsons Land Corp. to succeed Frederick Go, who has been appointed secretary of the newly created Office of the Special Assistant to the President for Investment and Economic Affairs.
Lucio Co latest tycoon to join renewables race [Inquirer Mobile, December 20, 2023]
Billionaire Lucio Co is the latest tycoon to enter the renewable energy race as his holding company, Cosco Capital, announced on Tuesday the acquisition of the 8-megawatt Catuiran hydropower project in Oriental Mindoro.
BPI enters 2024 with bank takeover [Philippine Daily Inquirer, December 20, 2023]
BPI earlier said it will issue 314 million shares, equivalent to a roughly 6-percent stake, to Gokongwei-led JG Summit Holdings and Robinsons Retail Holdings to acquire the latter’s Robinsons Bank.
Solon questions high Meralco rates: ‘If cooperatives can, why can’t you?’ [Inquirer.Net, December 20, 2023]
De Jesus said some of the cooperatives with low rates are Pelco II in Pampanga, Casureco I in Camarines Sur, Surseco I in Surigao del Sur, and Neeco I in Nueva Ecija, which are charging P6.50 to P8 per kWh.
The Catholic Church now allows preserving of a fragment of a deceased’s cremated ashes [Inquirer.Net, December 19, 2023]
Families in Catholicism are now allowed to take a few ashes from their departed and cremated loved ones and put them in a sentimental place for them, instead of a sacred place like a church or cemetery, the Vatican said on December 12, Tuesday, as they alleviate the rules in cremation.
Mandaue BPLO chief to businesses: Sell only what’s allowed in biz permit to avoid sanctions [Cebu Daily News, December 19, 2023]
Atty. August Lizer Malate, the BPLO head, said that as per their experience in the past years, several businesses have the tendency to deviate from what they are authorized to sell to take advantage of the Christmas season and the Sinulog festival in January 2024.
Millennium Challenge makes way back to PH [Inquirer Mobile, December 19, 2023]
Created in 2004, MCC provides time-limited grants and assistance to countries that meet rigorous standards for good governance, fighting corruption and respecting democratic rights—which are measured using a scorecard.
Singapore restricts remittances to China after US$10 million in funds frozen [South China Morning Post, December 19, 2023]
Remittance companies have been directed by the Monetary Authority of Singapore to use only bank and card channels when transferring money to China
Approved Dalton Pass alternative road will connect Cagayan Valley, CAR by 2031 [Rappler, December 19, 2023]
The proposed project will serve as an alternative road to Dalton Pass, decongesting it while also connecting San Jose, Nueva Ecija, and Aritao, Nueva Vizcaya. It will be made up of a four-lane 23.5-kilometer road with a twin-tube long-distance tunnel and 10 bridges.
SC affirms ruling lifting sequestration of Cojuanco Baguio property [GMA News Online December 18, 2023]
The Sandiganbayan, for its part, held that the property should not be considered ill-gotten wealth as the transfer certificate title showed that it was acquired by the couple in December 1955, before the term of the late President Ferdinand Marcos Sr.
Makati’s skyline soars: Historic real estate deal hits P1.6 million/sqm [Bilyonaryo, December 18, 2023]
In a groundbreaking development, the Makati Central Business District (CBD) saw a record-high sale of P1.5-P1.6 million per square meter in the third quarter of 2023. This historic transaction involved a 1,200-square meter property along Paseo de Roxas, across from the Ayala Triangle, with a total value ranging from P1.8 billion to P1.92 billion.
Reviving PT&T: Old telco player is back to battle tech giants [Rappler, December 18, 2023]
Remember Pocketbell? PT&T is aiming to bring back its glory days in the telco space and is set to ask the PSE to lift its trading suspension.
New Year brings wage increases in Metro Manila, Caraga [Philippine Daily Inquirer, December 17, 2023]
The Federation of Free Workers (FFW) welcomed the recent wage adjustments, but it pressed Congress to pass bills setting a P150 across-the-board wage hike.
SEC orders Superbreakthrough Enterprises to cease operations [GMA News Online, December 17, 2023]
According to the SEC, 1UP Time has been selling and offering products and investment packages through social media platforms, which the corporate regulator found to be “heavily dependent” on recruitment and the entry of new investors.
‘SEC can’t use retained funds for staff insurance’ [The Manila Times, December 17, 2023]
THE Supreme Court has disallowed the use of the retained income of the Securities and Exchange Commission (SEC) to pay for the health care insurance premiums of its personnel.
US drive-thru operated by ‘AI’ is discovered to be run by people from countries like the Philippines [Inquirer.Net, December 15, 2023]
An AI-operated drive-thru system that is used in fast-food chains Checkers and Carl’s Jr., isn’t the perfectly autonomous tech it’s set to be. In a report made by Bloomberg, it was revealed that AI relies on a backbone of outsourced laborers who constantly have to get involved so that they can take the customer’s orders correctly.
SC affirms dismissal of accountant over ‘paluwagan’ [ABS-CBN News, December 15, 2023]
“We again emphasize that for a managerial employee, it is sufficient that the employer has a reason to believe that they have breach their employer’s trust to justify their dismissal,” the SC said in the resolution signed by Division Clerk of Court Teresita Tuazon.
Philippines drops foreign ownership case against Nobel laureate Maria Ressa [Independent, December 15, 2023]
On Tuesday, the Department of Justice dropped a charge that alleged that Ressa violated federal law by allowing foreign ownership of Rappler with the investment provided in 2015 by an American philanthropic investment fund.
Revitalizing finances: Marcos admin targets P120.5 billion revenue boost with eight new taxes in 2024 [Bilyonaryo, December 15, 2023]
The BIR is set to collect taxes on value-added services from digital service providers, passive income, financial intermediary taxation (PIFITA), excise tax on single-use plastics, excise tax on sweetened beverages and junk food, and the mining fiscal regime.
Cordova toll bridge extension to break ground in mid-2024 [Inquirer Mobile, December 15, 2023]
A unit of Metro Pacific Tollways Corp. (MPTC) is targeting to start construction of the extension segment of the Cebu-Cordova Link Expressway (CCLEx) to Cebu City roads next year in a bid to further spur vehicle volume.