ACCUSED ACQUITTED DUE TO DEFENSE OF INSANITY AFTER FAILURE TO FILE ITR BUT CTA HELD CIVILLY LIABLE FOR PHP 8.5 MILLION ASSESSMENT + BIR EXPECTS TAX AMNESTY TO BOOST 2019 COLLECTIONS
Other Relevant Tax Updates:
- TAX & BUSINESS-RELATED NEWS [AUGUST 26-SEPTEMBER 2]
- SEC EXPANDS INDUSTRIES ELIGIBLE FOR ONE-DAY COMPANY REGISTRATION
- BIR FURTHER AMENDS POLICIES, GUIDELINES & PROCEDURES FOR BIR AUDIT PROGRAM
- CTA CASES
I.TAX & BUSINESS-RELATED NEWS [AUGUST 26-SEPTEMBER 2]
- Proposed Philippine tax amnesty could include all internal revenue taxes from 2024 back to 2007
- Cagas debunks P180-B flood control projects in Davao del Sur
- SEC plans revised REIT rules by Q4
- MG Samidan on P5B deals despite just 250K paid-up capital: We’ve been around
- Comelec finds 31 possible contractors linked to 2022 campaign donations
- Palace declares special non-working days for 3 areas in September, 2025
- Online sellers have until end of September to secure Trustmark certification — DTI
- Cusi charged over Malampaya deal
- Mining executive affirms Joseph Sy’s Filipino citizenship
- Laguna gov orders demolition of P 68-M university building over defects
- BSP extends moratorium on granting new crypto, virtual asset provider licenses indefinitely
- Ayala Land secures P12.87B green loan from IFC
- City and Land to be delisted post merger
- Candidates for Ombudsman open to review strict rules on SALN disclosures
- Road built along waterway worsens floods in Las Piñas — lawmaker
- Ajinomoto to spend P9.1 billion for new factory in Tarlac
- BIR begins work on tax fraud audit of flood contractors
- ‘Sakit’: Anne Curtis reacts to viral spiel of Jessica Soho on flood control project report
- Filipino maid, Singaporean employer fined for illegal part-time work arrangement
- COA orders special audit of BARMM’s payments worth P2.2B for learning materials
- SMIC expands renewables business with geothermal power
- Veteran banker Stephen CuUnjieng joins Maharlika board
- PPA waives P219M in fees to benefit travelers
- Baron Geisler reveals botched deal with contractor linked to politician
- Supreme Court reorganizes body handling disciplinary cases in judiciary
- Cebu City flooding: Upland developer open to gov’t review
- CA: CSC has no power over President’s men
- Supreme Court censures Marikina judge over parking dispute with PAO lawyer
- ABG unit to supply concrete to Nickel Asia’s Isabela port
- PropertyGuru Awards highlight sustainability
II. SEC EXPANDS INDUSTRIES ELIGIBLE FOR ONE-DAY COMPANY REGISTRATION
In a Press Release dated August 27, 2025, the SEC has announced the expansion of industries eligible for its One Day Submission and Electronic Registration of Companies (OneSEC) Zuper Easy Registration Online facility from 33 to 81. This move led to a nearly 300% increase in registrations in July 2025. OneSEC, part of the eSPARC system launched in 2021, enables companies to register in as fast as one minute and 14 seconds. Eligible entities include one-person corporations and regular corporations with up to 15 incorporators. To support Micro, Small, and Medium Enterprises (MSMEs), the SEC also offers a 20% discount on registration fees and up to 50% discount on filing fees for those tapping the capital market. In addition, the SEC has implemented strict processing timelines under a “deemed approved” policy. These initiatives aim to improve the ease of doing business and to encourage entrepreneurship in the country.
III. BIR FURTHER AMENDS POLICIES, GUIDELINES & PROCEDURES FOR BIR AUDIT PROGRAM
Revenue Memorandum Order (RMO) No. 36-2025, issued on August 18, 2025, further amends RMO No. 6-2023, prescribing the updated and consolidated policies, guidelines, and procedures for the BIR audit program.
Highlights include the mandatory cases covered by the electronic Letter of Authority (eLA), which include various situations that require closer scrutiny by the BIR. These involve taxpayers with VAT returns showing erroneous input tax carry-over, those with Mission Orders (MOs) where preliminary findings reveal at least a 30% understatement of sales, and cases of non-compliance with tax obligations identified through the Spontaneous Exchange of Information. It also covers policy cases and industry issues directly directed by the Commissioner.
Additionally, the order introduces amendments to streamline the issuance of Tax Clearance Certificates of Liabilities (TCL) for taxpayers who are either retiring from business or undergoing corporate reorganizations such as mergers, consolidations, split-ups, spin-offs, and similar transactions, all of which are subject to mandatory audit.
IV. CTA CASES
A TAX VERIFICATION NOTICE (TVN) IS NEITHER EQUIVALENT TO NOR A SUBSTITUTE FOR A LETTER OF AUTHORITY
The Petitioner, Commissioner of Internal Revenue, filed a Petition for Review, assailing to set aside the Resolutions issued by the Court of Tax Appeals (CTA)-Third Division, which granted the Respondent’s, St. Paul Hospital Cavite Inc., Motion for Summary Judgment on the BIR’s Final Decision on Disputed Assessment (FDDA) and denying the Petitioner’s Motion for Reconsideration. The Petitioner argues that the issue regarding the absence of a Letter of Authority (LOA) warrants a full-blown trial and that the absence of an LOA is inconsequential, as a Tax Verification Notice (TVN) was issued as its equivalent. On the other hand, the Respondent counters that granting the Motion for Summary Judgment is proper, as the absence of LOA has already been established and the examination of Revenue Officer (RO) Ordiz was authorized only by a TVN. In ruling, the Court found that there was no genuine issue as to the fact of the lack of an LOA, which justified the Court’s decision to grant the Motion for Summary Judgment. Based on the affidavit of the witness and the answer of the RO, it was confirmed that no LOA was issued, and the examination was authorized only by a TVN issued by the RDO. The Court finds that the disposition on the matter of absence of an LOA is already sufficient to conclude the case, rendering all issues raised by the Respondent irrelevant. Consequently, a bull-blown trial is not necessary. In addition, the Court held that a TVN is not equivalent to an LOA. It reiterated that the examination of a taxpayer may only be done by the issuance of an LOA. There must be a grant of authority, in the form of an LOA, before any RO can conduct an examination or assessment. The TVN issued is not an equivalent and cannot be a substitute for an LOA to authorize the examination. There being no LOA to authorize the examination, the resulting deficiency assessment is declared VOID. Thus, the Petition is DENIED. [COMMISSIONER OF INTERNAL REVENUE VS ST. PAUL HOSPITAL CAVITE, INC., CTA EN BANC NO. 2880, AUGUST 15, 2025]
BEFORE FILING A CASE WITH THE COURT QUESTIONING THE CONSTITUTIONALITY OF AN ADMINISTRATIVE ISSUANCE, ALL ADMINISTRATIVE REMEDIES MUST FIRST BE EXHAUSTED
The Petitioner, Nestle Philippines, Inc., filed a Petition for Certiorari, Prohibition, and Mandamus, seeking to nullify Revenue Memorandum Circular (RMC) No. 112-2023 and the Bureau of Internal Revenue (BIR) Letter, which sought to implement said RMC against them. The Petitioner argues that both the RMC and the Letter, which relies on it, are void. It asserts that the Respondent, Commissioner of Internal Revenue (CIR), acted with grave abuse of discretion in seeking to assess and collect Sweetened Beverage Tax (SBT) on its Milo products, notwithstanding its classification from the Food and Drug Administration (FDA) as “flavored fluid milk drinks,” which are exempt from SBT. On the other hand, the Respondent asserts that the Court lacks jurisdiction over the case since the Petitioner failed to exhaust administrative remedies before resorting to judicial action. The Respondent also claimed that it is the BIR, not the FDA, which has the authority to determine the taxability of products. They further contend that Milo product is not a milk product and therefore should be subject to SBT. In ruling, the Court held that the issuance of the BIR letter was an exercise of its quasi-legislative powers to interpret the Tax Code. It further states that questioning the interpretation made by the CIR in RMC No. 112-23 and in the BIR letter constitutes a direct challenge to the constitutionality or validity of RMC No. 112-23. While the CTA has jurisdiction to determine the validity of a BIR issuance, the Court cannot exercise jurisdiction over the case for failure of the Petitioner to exhaust administrative remedies. The Court clarified that for a Petition for Certiorari, Prohibition, or Mandamus to prosper, it must be shown that there is no other plain, speedy, and adequate remedy in the ordinary course of law available for the petitioner. Thus, prior recourse must first be made to the Secretary of Finance before resorting to the CTA. Thus, the Petition is DENIED for lack of jurisdiction. [NESTLE PHILIPPINES, INC. VS COMMISSIONER OF INTERNAL REVENUE & THE OIC-ASSISTANT COMMISSIONER LARGE TAXPAYER SERVICES, CTA CASE NO. SCA-0016, AUGUST 7, 2025]
Proposed Philippine tax amnesty could include all internal revenue taxes from 2024 back to 2007 [The Manila Times, September 2, 2025]
She clarified that the reference to 2007 was linked to the country’s last general tax amnesty, which was enacted under Republic Act (RA) 9480 during the administration of then-president Gloria Macapagal-Arroyo. That measure covered taxes due in 2005 and prior years.
Cagas debunks P180-B flood control projects in Davao del Sur [Inquirer.Net, September 2, 2025]
Davao del Sur Rep. John Tracy Cagas corrected reports that his province has been allocated P180 billion for flood control projects.
https://newsinfo.inquirer.net/2103218/solon-debunks-p180-b-flood-works-in-davao-sur
SEC plans revised REIT rules by Q4 [BusinessWorld, September 2, 2025]
In July, the corporate regulator said it was planning to revise real estate investment trust (REIT) rules to help strengthen the Philippine capital market by expanding eligible assets, lengthening the reinvestment period, and attracting broader participation.
https://www.bworldonline.com/editors-picks/2025/09/02/695177/sec-plans-revised-reit-rules-by-q4/
MG Samidan on P5B deals despite just 250K paid-up capital: We’ve been around [Inquirer.Net, September 1, 2025]
The president of MG Samidan Construction, a contractor in flood control projects, has explained that their firm has been in existence since 1991, making it possible for them to bag billions worth of government deals, contrary to initial claims that they are a new firm.
Comelec finds 31 possible contractors linked to 2022 campaign donations [The Philippine Star, September 1, 2025]
While the poll body has identified candidates who may have benefited from government contractor donations, Garcia said they still need to verify with the Department of Public Works and Highways (DPWH) whether the 31 contractors discovered so far held active contracts at the time of their contributions in the 2022 elections.
Palace declares special non-working days for 3 areas in September, 2025 [GMA News Online, August 31, 2025]
Malacañang has declared special non-working days in three areas for the month of September, in celebration of their cityhood anniversaries and charter days.
Online sellers have until end of September to secure Trustmark certification — DTI [GMA News Online, August 31, 2025]
The Department of Trade and Industry (DTI) has given online sellers until the end of September, 2025 to have their products checked and registered for the E-Commerce Philippine Trustmark, a seal that certifies that goods sold online have passed quality and safety checks.
https://www.gmanetwork.com/news/money/economy/957541/online-selling-dti-trustmark/story/
Cusi charged over Malampaya deal [The Manila Times, August 31, 2025]
The deal involved the selling of a 45-percent stake of Chevron Malampaya to UC Malampaya Philippines Pte. Ltd., a company owned by alleged Duterte crony Dennis Ang Uy.
https://www.manilatimes.net/2025/08/31/news/national/cusi-charged-over-malampaya-deal/2176288
Mining executive affirms Joseph Sy’s Filipino citizenship [Inquirer Mindanao, August 30, 2025]
In an interview, lawyer Dante Bravo, president of Global Ferronickel Holdings Inc. (FNI), which operates Platinum Group Metals Corp. (PGMC) in Claver, Surigao del Norte, stood firm in asserting that Sy is a Filipino citizen.
https://newsinfo.inquirer.net/2102318/mining-executive-affirms-joseph-sys-filipino-citizenship
Laguna gov orders demolition of P 68-M university building over defects [Philippine Daily Inquirer, August 29, 2025]
Laguna Gov. Sol Aragones has ordered the demolition of a P68-million building at a provincial government-run university in Santa Cruz town after serious structural defects were discovered, posing risks to the safety of more than 7,000 students.
BSP extends moratorium on granting new crypto, virtual asset provider licenses indefinitely [GMA News Online, August 29, 2025]
Cryptocurrency exchanges or virtual asset service providers (VASPs) planning to enter the Philippines will have to wait indefinitely before they can secure a license to operate in the country.
Ayala Land secures P12.87B green loan from IFC [The Manila Times, August 29, 2025]
The loan will be used for the development of Greenbelt 1 in Makati and Ayala Malls Evo City in Cavite, two large-scale commercial projects with an estimated gross leasable area of 89,000-square meters (sqm).
Go files bill on financing program for MSEs [The Manila Times, August 29, 2025]
Go said that once enacted, the “Pondo sa Pagbabago at Pag-Asenso Fund,” or the P3 Fund would be a better alternative to the so-called “5-6” money lending system used by small entrepreneurs and small business owners.
City and Land to be delisted post merger [The Philippine Star, August 29, 2025]
City and Land Developers Inc. will be delisted in the Philippine Stock Exchange (PSE) as part of its planned merger with Cityland Development Corp. (CDC).
https://www.philstar.com/business/2025/08/29/2468777/city-and-land-be-delisted-post-merger
Candidates for Ombudsman open to review strict rules on SALN disclosures [ABS-CBN News, August 28, 2025]
The Judicial and Bar Council started its public interviews for the replacement of retired Ombudsman Samuel Martires with Aguinaldo as the first candidate to be interviewed.
Road built along waterway worsens floods in Las Piñas — lawmaker [GMA News Online, August 28, 2025]
Roads were not supposed to be constructed alongside the river. It was intended for just cleaning the river, but look at what my predecessors did. It’s very clear that there is a conflict of interest because all the constructed roads lead to the properties of the Villars. At the end of this road is a mall owned by the Villar family.
Ajinomoto to spend P9.1 billion for new factory in Tarlac [ABS-CBN News, August 28, 2025]
In a statement, Ajinomoto said the factory will be built in TARI Estate, an industrial-anchored mixed-use development owned by Aboitiz InfraCapital Economic Estates.
BIR begins work on tax fraud audit of flood contractors [BusinessWorld, August 28, 2025]
In explaining how the tax fraud audit will go, Mr. Lumagui said it will examine underreported revenues, inflated costs, use of fake invoices, and asset declarations.
‘Sakit’: Anne Curtis reacts to viral spiel of Jessica Soho on flood control project report [interasksyon, August 28, 2025]
On Sunday, August 24, Soho delivered the spiel in a special report tackling the corruption behind the flood control projects: “Hindi pala baha ang magpapalubog sa ating bayan. Kundi, kasakiman,” that later on trended on social media.
Filipino maid, Singaporean employer fined for illegal part-time work arrangement [The Philippine Star, August 27, 2025]
Under Singaporean law, employing a foreign worker without a valid work pass carries a penalty of up to 12 months in jail and a fine between 5,000 SGD and 30,000 SGD (P1.3 million). For foreign workers, taking on unauthorized employment can result in up to two years’ jail, a fine of up to 20,000 SGD (P89,000), or both.
COA orders special audit of BARMM’s payments worth P2.2B for learning materials [GMA News Online, August 27, 2025]
In the letter, COA Chairperson Gamaliel Cordoba said the commission conducted an initial review of the payments following the filing of two complaints against Minister Mohagher Iqbal of the Ministry of Basic, Higher and Technical Education (MBHTE).
SMIC expands renewables business with geothermal power [Philippine Daily Inquirer, August 27, 2025]
The parent firm of the SM Group said on Tuesday that it has begun exploring new growth streams, particularly in the wind sector. However, no further details were provided on this plan when asked.
https://business.inquirer.net/543408/smic-expands-renewables-biz-with-geothermal-power
Veteran banker Stephen CuUnjieng joins Maharlika board [BusinessWorld, August 27, 2025]
“The Maharlika Investment Fund operates on a different timeline than most investment vehicles; its primary duty is to cultivate long-term, intergenerational wealth for the Philippines. Mr. CuUnjieng’s appointment is a testament to our commitment to that prudent, long-view approach,” he said in a Viber message.
PPA waives P219M in fees to benefit travelers [The Manila Times, August 27, 2025]
The policy grants full fee exemptions to students, senior citizens, persons with disability (PWDs), uniformed personnel, and Medal of Valor awardees with their first-degree dependents. It was introduced under PPA Administrative Order 04-2019, replacing the previous 20-percent discount in all PPA-owned terminals.
Baron Geisler reveals botched deal with contractor linked to politician [Inquirer.Net, August 26, 2025]
Amid the issue on alleged anomalous flood control projects involving several contractors, Baron Geisler was reminded of an abandoned project he claimed to have entrusted to a certain contractor which, he said, is linked to a “big time politician.”
Supreme Court reorganizes body handling disciplinary cases in judiciary [Inquirer.Net, August 26, 2025]
The Supreme Court has reorganized the body handling administrative disciplinary cases in the judiciary, replacing the five-member Judicial Integrity Board (JIB) with the Judicial Integrity Office (JIO), to be led by a single judicial integrity officer.
https://newsinfo.inquirer.net/2100697/sc-reorganizes-body-handling-disciplinary-cases-in-judiciary
Cebu City flooding: Upland developer open to gov’t review [Cebu Daily News, August 26, 2025]
Engineer Slater Young, Chief Strategic Officer of the developer, said they are ready to make adjustments amid mounting concerns that upland construction is worsening the Cebu City problem.
https://cebudailynews.inquirer.net/653987/cebu-city-flooding-upland-developer-open-to-govt-review
CA: CSC has no power over President’s men [Philippine Daily Inquirer, August 26, 2025]
In its decision, the appellate court said the CSC properly ruled that Alviar, being a career executive service official, should have filed his appeal before the Office of the President.
https://newsinfo.inquirer.net/2100267/ca-csc-has-no-power-over-presidents-men
Supreme Court censures Marikina judge over parking dispute with PAO lawyer [The Manila Times, August 26, 2025]
In a 14-page July 2025 decision, a copy of which was obtained by The Manila Times, the high tribunal censured Judge Rey P. Inciong of Regional Trial Court’s Branch 263 and told him more circumspect in the performance of his duties as a magistrate of the court.
ABG unit to supply concrete to Nickel Asia’s Isabela port [Philippine Daily Inquirer, August 26, 2025]
CSC was contracted to provide 750 concrete tetrapods to Dinapigue Mining Corp. (DMC) for the development of a port facility at Nickel Asia’s mine in Isabela province.
https://business.inquirer.net/543201/abg-unit-to-supply-concrete-to-nickel-asias-isabela-port
PropertyGuru Awards highlight sustainability [The Manila Times, August 26, 2025]
SUSTAINABILITY and development across strategic locations in Luzon, Visayas and Mindanao set the standards for property excellence during the 13th PropertyGuru Philippines Property Awards held on Aug. 15. About 30 of the nearly 70 awards given during the ceremony went to sustainably driven developers from across the archipelago.
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