BIR reminds candidates to declare unused campaign funds
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [MAY 6-12]
- SEC ISSUES AN ADVISORY ON eAMEND SYSTEM UPDATE
- CTA CASES
I. TAX & BUSINESS-RELATED NEWS [MAY 6-12]
- Recto does not expect DSPs to pass VAT on to consumers
- SC: Photocopies may carry same legal weight as originals
- Hospitals bat for tax perks, lower import tariffs
- Market-based pricing for fund transfers pushed
- CLuzon expressway Phase 1 starts in July – DPWH
- Unilab plans to transform Laguna campus into ecozone
- DOT celebrates inclusion of 5 more PH hotels in Michelin Guide list
- LT Group bets big on Eton
- BIR reminds candidates to declare unused campaign funds
- Philippine Airlines is Asia Pacific’s ‘most on-time’ airline—report
- Australian firm connects 1K Filipino workers with overseas employers
- Unionbank and Atram seal merger of trust units
- PSE, IBP offer free legal aid to investors
- CSC amends rules to allow junior, senior high grads to enter gov’t
- SC: No presumption of proper mail delivery when opposed by strong evidence
- SC stops closure of Mindanao university’s law school
- PHL starts construction of 50th dealership, eyes year-end opening
- ARTA: 131 LGUs to be charged for not streamlining gov’t processes
- Another plea vs seafarers’ bond rule filed at SC
- BDO Network Bank converts into thrift bank
II.SEC ISSUES AN ADVISORY ON eAMEND SYSTEM UPDATE
In an SEC Advisory posted on May 2, 2025, the SEC has announced that starting May 5, 2025, its Electronic Application for Modification of Entity Data (eAMEND) will begin accepting applications for the increase of authorized capital stock of domestic stock corporations through the “Regular Application” module. As a result, domestic stock corporations will be able to amend their Articles of Incorporation to increase authorized capital stock through the eAMEND portal. However, applications for an increase of authorized capital stock when filed with other complex applications such as, but not limited to, decrease of authorized capital stock, merger, reclassification/ declassification/conversion of shares, and/or change in par value shall be processed under the old process with the Financial Analysis and Audit Division (FAAD) designated e-mail address.
III. CTA CASES
[CTA HAS JURISDICTION TO REVIEW DECISIONS OF THE CIR ON OTHER MATTERS ARISING FROM THE TAX CODE, WHICH INCLUDES THE BIR’S EXERCISE OF AUTHORITY TO COLLECT TAXES THROUGH DISTRAINT, LEVY, OR GARNISHMENT] [THE LATE FILING OF AN APPEAL DIVESTS THE COURT IN DIVISION OF THE JURISDICTION TO RESOLVE THE CASE]
Petitioner AGM Ventures Enterprises filed a Petition for Review seeking to overturn the Decision of CTA 2nd Division, which dismissed the case for lack of jurisdiction. The Petitioner argued that the issuance of Warrant of Distraint and/or Levy (WDL) and Warrant of Garnishment (WOG) is premature and unlawful, having been issued pending resolution of the administrative appeal or determination of the final tax liability filed before the Respondent Commissioner of Internal Revenue (CIR). In ruling, the Court held that the CTA 2nd Division has jurisdiction to review the actions or decisions of the CIR or his duly authorized representative over matters arising from the Tax Code. This includes the BIR’s authority to collect national taxes, which may be made by means of distraint and/or levy of property, and garnishment of bank accounts. Thus, the Petitioner could have validly challenged the issuance of WDL and WOG via appeal with the CTA 2nd Division. However, the law also provides that such an appeal must be filed within 30 days from receipt of the WDL and WOG. In this case, the Petitioner received the WDL and WOG on March 10, 2023, but did not appeal until April 28, 2023, which is beyond the prescriptive period to appeal. Thus, the appeal was belatedly filed, divesting the CTA 2nd Division of the authority to entertain the case. Consequently, the dismissal of the case was proper, and the Petition was DENIED. [AGM VENTURES ENTERPRISES, INC. VS COMMISSIONER OF INTERNAL REVENUE, CTA EN BANC CASE NO. 2829, APRIL 24, 2025]
DECIDING ON THE VALIDITY OF THE WARRANT OF DISTRAINT AND/OR LEVY REQUIRES THE COURT TO LOOK INTO THE VALIDITY OF THE ASSESSMENT ON WHICH IT IS FOUNDED
Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review seeking to reverse the decision of the CTA Special First (1st) Division. The Petitioner argued that the CTA 1st Division lacked jurisdiction, citing the Respondent Julio R. De Quinto’s failure to file an administrative protest to the Final Assessment Notice (FAN)/Formal Letter of Demand (FLD) prior to elevating the matter to the CTA. Failure to file a valid protest against the FAN/FLD within 30 days from receipt renders it undisputed, final, executory and demandable. Likewise, it argued that assailing the validity of Warrant of Distraint and/or Levy (WDL) is not covered by the “other matters” provision in Republic Act (R.A.) No. 1125, or An Act Creating the CTA, for purposes of acquiring jurisdiction. On the other hand, the Respondent countered that the issue on jurisdiction is only being raised for the first time on appeal and maintained that the FAN/FLD was not personally served to him, thereby violating his right to due process. In ruling, the CTA En Banc held that the Petition was not timely filed. It emphasized that the timely filing of a Motion for Reconsideration (MR) or New Trial before the CTA Division is a prerequisite to an appeal to the CTA En Banc, and failure to comply is a ground for dismissal. The Court noted that the 15-day reglementary period to file an appeal is reckoned from the date of service to the Office of the Solicitor General (OSG), which received the denial of the MR on October 31, 2023. Accordingly, the Motion for Extension of Time to File Petition for Review, filed on November 21, 2023, was beyond the prescribed period. On the issue of jurisdiction over the WDL, the Court held that CTA is not confined to appellate review of CIR decisions. It also has jurisdiction over “other matters” in relation to the Tax Code. Thus, the CTA Division properly exercised jurisdiction over the case involving the validity of the WDL. Moreover, it states that to rule on the validity of the WDL, it had to rule on the legality of the assessments on which it is based, which were found to be based on mere presumptions and lack factual basis. Consequently, the Petition was DENIED. [COMMISSIONER OF INTERNAL REVENUE VS JULIO R. DE QUINTO, CTA EN BANC CASE NO. 2830, APRIL 22, 2025]
[AN ASSESSMENT PURSUANT TO AN INVESTIGATION BY A REVENUE OFFICER CONDUCTED WITHOUT THE AUTHORITY GRANTED THROUGH A LETTER OF AUTHORITY (LOA) IS NULL & VOID] [AN ASSESSMENT MUST BE BASED ON ACTUAL FACTS & NOT ON PRESUMPTIONS, NO MATTER HOW LOGICAL IT MAY BE]
Petitioner Commissioner of Internal Revenue (CIR) filed a Petition for Review Ad Cautelam, assailing the decision of the Court of Tax Appeals (CTA) First (1st) Division which declared the deficiency tax assessment issued against the Respondent Ermilo Tan Ng Hua as void. The Petitioner alleged that the assessment is valid and that the Respondent’s right to due process was not violated. He maintains that the assessment is presumed correct and made in good faith, and thus, the collection of taxes should not be enjoined, especially since the Respondent still has the option to appeal. On the other hand, the Respondent argued that he did not receive a Letter of Authority (LOA) in relation to the assessment; instead, a Letter Notice (LN) was issued, which he received concurrently with the Preliminary Assessment Notice (PAN). He claimed that due to the absence of a valid LOA, the Petitioner lacked the legal authority to conduct an audit. He further argued that the assessment had no factual or legal basis, as it was merely based on a comparison of data provided by the supplier against the Respondent’s tax returns, leading to a presumption that there were unreported sales and purchases. In ruling, the CTA En Banc held that the assessment is void for violation of the Respondent’s right to due process. Assessment without authority granted through the LOA is null and void. The Court emphasized that the audit process normally begins with the issuance of the LOA, which gives notice to the taxpayer that it is under investigation for a possible tax assessment. It authorizes the Revenue Officer (RO) to examine, verify, and scrutinize a taxpayer’s books and records. Without an LOA, the RO is bereft of authority to examine a taxpayer, and a notice through an LN is insufficient. In addition, an assessment must be grounded on concrete facts supported by credible evidence. An assessment must be based on actual facts and not on presumptions, no matter how logical they may be. Due to the absence of a valid LOA and a factual basis, the assessment was declared VOID, and the Petition for Review Ad Cautelam is DENIED for lack of merit. [COMMISSIONER OF INTERNAL REVENUE VS ERMILO TAN NG HUA, CTA EN BANC CASE NO. 2734, APRIL 14, 2025]
Recto does not expect DSPs to pass VAT on to consumers [BusinessWorld, May 12, 2025]
FINANCE Secretary Ralph G. Recto said digital service providers (DSPs) are likely to absorb the new value-added tax (VAT) on digital services, instead of passing the cost on to consumers.
SC: Photocopies may carry same legal weight as originals [The Manila Times, May 11, 2025]
PHOTOCOPIES and digital duplicates of official documents may now carry the same legal weight as originals — provided their authenticity isn’t questioned — according to a Supreme Court ruling that upheld a murder conviction based on a photocopied death certificate.
https://www.manilatimes.net/2025/05/11/news/national/sc-photocopies-may-carry-same-legal-weight-as-originals/2110584
Hospitals bat for tax perks, lower import tariffs [BusinessWorld. May 11, 2025]
“The government is providing incentives for the tourism industry, so why not healthcare?” Private Hospitals Association of the Philippines, Inc. President Jose Rene de Grano told BusinessWorld.
Market-based pricing for fund transfers pushed [The Philippine Star, May 11, 2025]
The new pricing scheme for fund transfers should not arise from agreements and fixing among supervised financial institutions as cost analysis will be validated by the Bangko Sentral ng Pilipinas (BSP).
https://www.philstar.com/business/2025/05/11/2442083/market-based-pricing-fund-transfers-pushed
CLuzon expressway Phase 1 starts in July – DPWH [The Manila Times, May 10, 2025]
THE Department of Public Works and Highways (DPWH) said it expects to start operations of the Central Luzon Link Expressway (CLLEX) Phase 1, connecting Subic-Clark-Tarlac Expressway (SCTEX) in Tarlac City and Maharlika Highway in Cabanatuan City, Nueva Ecija, by July 2025.
Unilab plans to transform Laguna campus into ecozone [Philippine Daily Inquirer, May 10, 2025]
Local pharmaceutical giant United Laboratories Inc. (Unilab) is looking to convert its Laguna campus into a designated pharmaceutical economic zone. This is a move seen boosting the local drug manufacturing industry.
https://business.inquirer.net/524770/unilab-plans-to-transform-laguna-campus-into-ecozone
DOT celebrates inclusion of 5 more PH hotels in Michelin Guide list [ABS-CBN News, May 10, 2025]
To those looking for hotels to stay in, the Department of Tourism on Saturday has announced five more local hotels that made it to Michelin Guide recommendation list, pushing the total of recognized properties to 11.
LT Group bets big on Eton [Philippine Daily Inquirer, May 10, 2025]
In a regulatory filing on Friday, the conglomerate said it had infused P2.52 billion into Eton Properties Philippines Inc. and another P1 billion into Eton City Inc. (ECI).
https://business.inquirer.net/524768/lt-group-bets-big-on-eton
BIR reminds candidates to declare unused campaign funds [The Philippine Star, May 9, 2025]
After the election, candidates are mandated to file their statement of contributions and expenditures with the Commission on Elections (Comelec).
“If candidates fail to do this, there will be penalties and it can be considered as tax evasion if proven,” Lumagui said. “This is separate from the Comelec, which could also be a ground for disqualification.”
Philippine Airlines is Asia Pacific’s ‘most on-time’ airline—report [The Philippine Star, May 9, 2025]
Based on the April 2025 On-Time Performance Report, the airline ranked first in the top ten punctual airlines in the Asia-Pacific region. It is also the only Philippine carrier to achieve a placement.
Australian firm connects 1K Filipino workers with overseas employers [Philippine News Agency, May 9, 2025]
WrkPod, Inc., an Australian company based in the Philippines, is celebrating a major milestone for having generated 1,000 full-time jobs for Filipino professionals hired by international employers.
https://www.pna.gov.ph/articles/1249815
Unionbank and Atram seal merger of trust units [Philippine Daily Inquirer, May 9, 2025]
In a regulatory filing, Aboitiz-led bank UnionBank said the Bangko Sentral ng Pilipinas had given its go signal for the merger of UnionBank Investment Management and Trust Corp. (UBIMTC) and Atram Trust Corp.
https://business.inquirer.net/524575/unionbank-and-atram-seal-merger-of-trust-units
PSE, IBP offer free legal aid to investors [Philippine Daily Inquirer, May 9, 2025]
The traditional legal aid will be provided to stock market investors endorsed by PSE to IBP, who qualify based on IBP’s means and merit test for free legal assistance.
https://business.inquirer.net/524504/free-legal-aid-offered-to-investors
CSC amends rules to allow junior, senior high grads to enter gov’t [Philippine Daily Inquirer, May 9, 2025]
The Civil Service Commission (CSC) has amended its rules on education qualifications to allow junior and senior high school graduates to enter government service.
SC: No presumption of proper mail delivery when opposed by strong evidence [GMA News Online, May 8, 2025]
The SC said mere presentation of a registry return receipt is not enough to prove proper service and must be accompanied by a postmaster’s affidavit confirming when, how, and to whom the delivery was made.
SC stops closure of Mindanao university’s law school [Philippine Daily Inquirer, May 7, 2025]
The Supreme Court issued on Tuesday a temporary restraining order (TRO) barring the Legal Education Board (LEB) from enforcing its resolutions prohibiting the Mindanao State University (MSU) College of Law from opening its law programs on its Tawi-Tawi, Sulu and Maguindanao campuses while also revoking its accreditation and ordering its closure effective academic year 2025-2026.
https://newsinfo.inquirer.net/2058871/sc-stops-closure-of-mindanao-universitys-law-school
Isuzu PHL starts construction of 50th dealership, eyes year-end opening [BusinessWorld, May 7, 2025]
As of March, IPC ranked sixth in total automotive sales in the country, accounting for 4,371 units, or 3.73% of the industry total, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association.
ARTA: 131 LGUs to be charged for not streamlining gov’t processes [GMA News Online, May 6, 2025]
In a Palace press briefing, ARTA Director General Ernesto Perez said more than 400 LGUs were asked to explain why they did not comply with President Ferdinand ”Bongbong” Marcos Jr.’s directive to streamline government processes.
Another plea vs seafarers’ bond rule filed at SC [The Philippine Star, May 6, 2025]
“We questioned the law for practically lowering the amount of compensation for injuries suffered by seafarers and by requiring seafarers to post a bond in order to access compensation already awarded to them by the NLRC (National Labor Relations Commission),” Colmenares said in a statement.
https://www.philstar.com/headlines/2025/05/06/2441037/another-plea-vs-seafarers-bond-rule-filed-sc
BDO Network Bank converts into thrift bank [Philippine Daily Inquirer, May 6, 2025]
BDO Network Bank president Jesus Antonio Itchon confirmed to the Inquirer in October their plans to enter the thrift banking space and officially compete with market leader Philippine Savings Bank.
https://business.inquirer.net/523944/bdo-network-bank-converts-into-thrift-bank
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