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e-Invoicing: Time to get ready!

One of the major changes introduced in the TRAIN law was mandatory e-invoicing. Under the law, taxpayers engaged in the export of goods and services, e-commerce, and those considered Large Taxpayers, are required to issue electronic invoices/receipts and to report their sales data to the Bureau of Internal Revenue (BIR) at the point of sale within five years from the effectivity of the TRAIN law, i.e., on or before Jan. 1, 2023. This measure is contingent on the establishment of a system capable of storing and processing the required data.

Though perhaps unfamiliar to many taxpayers, the concept of e-invoicing is not new in the country or elsewhere around the world. Many developed countries had long before incorporated e-invoicing in their reportorial and tax compliance requirements.

In our country, the Electronic Commerce Act, passed in 2000, recognizes electronic documents as functional equivalents of paper documents and grants them the same legal effects as paper documents. Electronic invoices, therefore, are functional equivalents of paper invoices and should be acceptable for the purpose of evidencing sale transactions.

In 2002, the BIR acknowledged the acceptability of e-invoicing when it issued Revenue Memorandum Order (RMO) 29-02. As a directive, the RMO required taxpayers utilizing the e-invoicing system to apply for a complete Computerized Accounting System (CAS) which should be capable of generating hard copies of the invoices anytime. Subsequent to this, Revenue Memorandum Circular (RMC) 71-03 was issued where the BIR defined as well as what constitutes an e-invoice. Under the circular, e-invoicing is a “system developed and maintained by the e-Buyer or e-seller, or both, in issuing an invoice electronically through the Internet. Pursuant to these regulations, taxpayers who wish to employ an electronic invoicing system are required to secure a Permit to Adopt CAS from the BIR.

Notwithstanding these regulations and statutory issuances, e-invoicing remains underutilized in the country not only by local businesses but also by multinationals which have long adopted these systems in their offices overseas.

One of the main reasons why the Philippines has lagged far behind other countries in implementing e-invoicing is the government’s continued reliance on physical documentation or usage of hard copies. For instance, in the case of VAT refunds, the BIR continues to stamp the invoices as proof of the claims for refund; and in tax audits, BIR examiners rely only on printed copies to examine the taxpayer’s compliance with tax rules and regulations. Hand in hand with these practices that focus on physical records, policies and procedures on proper handling of and reliance upon fully digitized records and systems remain inadequate.

However, as digital literacy becomes the norm, given the undeniable advantages of using fully digitalized systems, the BIR has identified the development of the e-invoicing system as part of its Strategic Plan for 2019-2023. The shift to mandatory e-invoicing demonstrates the government’s willingness to embrace and to implement digital transformation in tax administration.

Spearheading the government’s new-found commitment towards digitalization, Finance Secretary Carlos G. Dominguez III cited South Korea’s electronic invoicing program as the best model on which to base the government’s own program. Since 2011, South Korea has been implementing its mandatory electronic tax invoice system for all corporate and certain individual taxpayers. To issue and transmit invoices, a taxpayer may use an Application System Provider set up at the taxpayer’s expense. As an alternative, the South Korean government provides and maintains a web application that taxpayers can use for free to issue and to email e-tax invoices to their customers.

Those who do not have online access have the option either to use the automatic response system (ARS) by telephone or to visit their local tax office for the issue of electronic e-invoices. All tax invoices are then required to be transmitted to the tax authorities immediately after issuance. Under the South Korean program, the taxpayers’ diverse circumstances are clearly considered by providing several options of invoicing that would facilitate efficient implementation in their respective businesses.

Elsewhere in the ASEAN region, Indonesia, Malaysia, and Brunei have implemented e-invoicing systems. In the case of Thailand, a regulation was passed in 2012, allowing some companies to issue electronic tax invoices.

Guided by best practices in e-invoicing, the BIR started studying South Korea’s electronic invoicing system as early as January 2018. According to reports, the government is expected to receive a grant from the Korea International Cooperation Agency (KOICA) to fund the initial phase of the invoicing project, which includes pilot testing. The BIR is also working hand-in-hand with KOICA to conduct feasibility studies for the project. More recently, during the presentation at the Philippine Day Forum in Washington, a Department of Finance official confirmed the pilot testing in 2020 of e-receipts among 100 taxpayers selected by the BIR, as a precursor to its mandatory implementation.

Like any transformation, birth pains and complications are expected. Based on other countries’ experiences, critical issues need to be addressed before e-invoicing becomes fully operational and practical. For instance, will the government provide for a centralized system? Is there a need to engage third-party e-invoice solutions providers, and must they be certified? Will there be extensive training (both in scope and span) to educate the public? How will e-invoicing be harmonized with existing policies and procedures?

On the part of taxpayers, it will also be a challenge to discard processes that have already been in place for years and to learn new ones. Moreover, replacing or updating company in-house systems would entail hefty investments in money and time to ensure its effective operation.

Also, the reliability and security of the e-invoicing system are critical. In fact, cyber security and data privacy are specifically mentioned in the TRAIN law as important compliance points for the system. To build a user-friendly, reliable, and secure electronic system, the BIR and the IT system providers must cooperate to address perceived risks of a system malfunction, glitches, or data privacy intrusion. Since the government has initiated the process, taxpayers should be looking into this and preparing the means and process on how they would be able to assist and comply. Overcoming the challenges would be best achieved through close cooperation among the government, the taxpayers, and their representatives.

The next few years will probably be a test of patience and determination for both the taxpayers and the government in achieving effective e-invoicing in the Philippines. Regardless of anticipated challenges, the move towards digitalization is worth the effort in realizing efficiency in tax administration, reducing costs, and simplifying tax compliance.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Mary Jean C. Balboa is a Director at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of PricewaterhouseCoopers global network.

mary.jean.c.balboa@pwc.com

Developing an entrepreneurial mindset

A national conference on health dubbed “Tech-Care: Revolution, Evolution and Innovations in Health Care” was recently organized by the Our Lady of Fatima University (OLFU) in Valuenzela City. It was organized by the indefatigable dean of the College of Nursing, Dr. Maria Luisa Uayan, who is a friend way back from our graduate school days and she asked me to give a talk on entrepreneurship. At first, I was taken aback because entrepreneurship and the health professions are not usually mutually exclusive. She then told me that in the latest Commission on Higher Education Memorandum Order for the Bachelor of Nursing program that the teaching of entrepreneurship is embedded in the program and is even a specific learning outcome that states “apply entrepreneurial skills in the delivery of nursing care.”

As we were discussing the contents of my presentation, I asked her if I should talk about the basics of how to start one’s own business, from the Negosyo Centers of the Department of Trade and Industry to the intricacies of the Barangay Micro Business Enterprises Act, when these information are readily available on various platforms and media. We then went back to the nursing learning outcome of being able to apply entrepreneurial skills in the delivery of not only nursing but in the vast field of health care and its varied professions. Thus, for this presentation entrepreneurial skills which are not taught or even previously discussed in the health field was coupled with the importance of having an entrepreneurial mindset. A mindset that would not only create start-ups but also corporate and intra-entrepreneurship that can be practiced at work and with one’s self.

Having an entrepreneurial mindset has not always been at the top of mind among health care practitioners and professionals. In a field that is dominated by precision, procedures, and perfection there is simply no room for failure. A simple mistake can lead to fatalities and a wrong direction can bring chaos. How can someone from the health professions then have an entrepreneurial mindset? A mindset that is not only about starting one’s own business but having the passion and perseverance to pursue opportunities that go above and beyond the call of health care duty.

An entrepreneurial mindset according to the Network for Teaching Entrepreneurship (NFTE) prepares everyone for “a mindset that equips them to recognize opportunity, take initiative, and innovate in the face of challenges”. The current challenges being faced within our workplace whether it be in the field of health or otherwise entails a framework that are considered “tools for life.” NFTE has provided eight dimensions in the development an entrepreneurial mindset and these are: initiative and self-reliance, flexibility and adaptability, communication and collaboration, creativity and innovation, critical thinking and problem solving, future orientation, opportunity recognition, and comfort with risk . Unsurprisingly a lot of these tools and techniques, such as complex problem solving, critical thinking and creativity, are also much-needed skills for the 21st century according to the World Economic Forum.

These “tools for life” must be within a growth mindset as espoused by Carol Dweck in her book titled “Mindset: The New Psychology of Success.” This mindset as opposed with a fixed mindset sees failure as an opportunity for growth and it believes “that abilities and understanding can be developed”. People in whatever field can “get smarter, more intelligent and more talented through putting in time and effort.” Lifelong learning is a must and a minimum in developing an entrepreneurial growth mindset. The ability to empathize in the development of creative and innovative products and services not only for profits but for the common good is essential in developing entrepreneurial skills through an entrepreneurial mindset. In the end, entrepreneurship goes beyond creating and starting new businesses but it also encompasses a mindset that is useful not only to the health professions but in every industry and most importantly our personal lives.

 

Brian C. Gozun is dean of the Ramon V. del Rosario College of Business, De La Salle University Manila. He invites other fields (not only nursing and the health sciences) to embrace an entrepreneurial mindset. The college through its professors and research and training centers can actively engage with other schools and institutions in the development of entrepreneurial skills.

Warm, cold calling

A WEEK before last Christmas I was in the middle of a training session in Mumbai, India when my silent phone lit up with an incoming call. During the break I noted that it was from an unknown number from the Philippines. Instead of asking an impolite “Who is this please?” I sent an SMS saying, “I am in the middle of a meeting — how can I help?”

“You can help me buy a cocktail dress,” came back a prompt reply. This time, since I didn’t recognize the incoming number I responded with an irritated, “Who is this please?” “Pamela,” came back a quick response. Thinking this was someone from my family or friends, I responded with, “Right. A Hahaha, and a Hohoho to you too!”

But over the next few days the conversation stayed on my mind. Given that I am all salt-and-pepper haired and thinking that most all of my close friends are also adding a lot of salt to their hair, such kind of cheeky humor is not our thing anymore. Besides, most all my friends are from the academe, from the human capital development field and they are pretty cautious about their choice of humor. Pranks such as this one are just not their thing. Oh, okay, they are not my thing too! I let things lay low hoping to catch the prankster once I got back home to the Philippines.

A few days ago, back home in the Philippines, I called the number and, boy, was I ever so angry! It turned out that it was a cold call from someone trying to sell me telephone services. I curtly asked the person to never call my number again and also complained to my service provider of the incident. They claimed that these people were neither their employees nor their agents but individuals that purchase prepaid SIM cards and sell such services. I understand their position but I continue to be mad. I have been at the receiving end of such cold calls from several large businesses in banking, insurance, properties, etc., I understand the need of such large organizations to constantly market and sell but I don’t understand why they cannot practice permission marketing, ethical sales or simple, plain, common sense courtesy. Their agents and representative call up and start yakking away about their promotions, their packages, their pitches without considering the fact that I might be in the middle of another conversation, in the middle of driving or in the middle of a bloody bungee jump! Yep, we salt-and-pepper haired people can still jump even though we are required to surrender all our loose parts like toupées, dentures and pace-makers before we jump.

So, pumpkins, if your life and work requires that you call up and connect with a hundred prospects every day, may I offer you some suggestions which will make call recipients like me happy and probably get you a lot of good business which you desperately need.

• Send your prospects a note, an e-mail, a message stating your name, job and product seeking permission to call. Be polite, don’t plug or propose. Just state your service, seek permission and in the permission state the benefit that will occur for the recipient should she accept the call.

Surely, this will increase the number of people you will have to reach out to and you may also have increased rejections but this definitely qualifies a potential customer and makes the rest of the sales process easier.

• If straight cold calling is the thing you need to do then start with, “Hi! My name is Pamela Pumpkins. I am from Don’Tel Telecoms. Can you take a three minute call if it’ll help you save a thousand pesos on your monthly phone bill?”

The permission and the “What’s in it for them,” is important in this opening because most people are in a rush to achieve and do more in a given day, in a given life.

• Only continue if you hear a “Yeah, okay!” or a “Sure!” Follow through with, “Thank you, I hope you are not in the middle of a meeting, a sky-dive or something similar, Mr. Mandhyan?”

This is bound to generate laughter and laughter will endear you to them. It will grease the rest of the conversation and the ride to the ultimate close will become smoother. Be a bit cautious and hone up your intuiting skills before you induce humor. Generate laughter only after you assess the voice across to be informal, friendly. If not then speak in even and polite tone.

• In the next, given three minutes, make sure you get to the point right away. This is the pitch! This is something that you must know inside-out and with clarity, with conviction and with absolute knowledge that your offer is for the benefit of the client. Make sure it is not a push to increase your sale but a pull for them to benefit themselves with your increased sales as a by-product. Do not lie! Do not overstate the benefits and commit to something you cannot deliver.

• At the end of the three minute conversation whether you have invited the client to the next level successfully or not, CONTINUE being polite and proper. Listen well and stay connected to their feelings about the proposal.

If you have won yourself a client then take the next steps; follow through the paperwork and after a period of time send a thank you note.

If you haven’t won yourself a client then seek permission to be able to get back to them at some future date with other proposals. Send them a thank you note for having heard you out.

Selling is a subtle process. It takes a lot of diagnosing customer needs, building rapport, understanding needs and finding solutions that will serve your clients well. Cold calling is the first touch and this is just one of the many approaches to cold calling. It is an approach that doesn’t run chills down the spines of your potential customers. It is cold calling that is warm, careful and polite. It is for the benefit of the client and it is not just a task that fills up your day. It is subtle and genuinely caring. It is what we, in the Philippines, call the “malasakit” way.

Huh, now where’d my toupée go?

 

Raju Mandhyan is an author, coach and speaker.

www.mandhyan.com

Fighting fire with fire

More than a year ago, I took a position in favor of taxing “vaping” or the use of electronic cigarettes, in addition to raising taxes on regular cigarettes and other tobacco products. Since then, some initiatives were started in Congress to regulate and tax the vaping industry. However, no actual regulation materialized by the time Congress adjourned for the May 2019 elections.

There is still a bit of time for legislators to consider the bills on vaping, as Congress resumes and then ends on June 7. Also, still up for consideration are proposals to raise “sin” taxes, or taxes on so-called “sin” products like regular cigarettes and tobacco. It is a short runway for solons, but the present Congress should consider the long-term positive impact of these bills.

Worse case, a new Congress opens in July. These initiatives can be resurrected by then, allowing a fresh start. Interested parties may are also allowed more time to campaign and advocate for or against the initiatives. Both the Health and Finance departments are pushing to address the negative effects particularly of smoking, and in turn, allow the government to raise revenues.

In this connection, please allow me to share with you some thoughts on the matter from former Finance Secretary Gary Teves, who continues to advocate the promotion of public health through the regulation of cigarette and tobacco sale and use via taxation, with some inputs from advocacy group Action for Economic Reform (AER).

Gary, or GBT to some of his colleagues, noted that to date, four laws are being implemented in relation to cigarette and tobacco use: Sin Tax Law of 2012 (RA 10351); Graphic Health Warnings Law of 2014 (RA 10643); Nationwide Smoking ban in 2017 (EO No. 26); and, TRAIN Law of 2017 (RA 10963), which raised cigarette taxes. However, there is still no law regulating “vaping.”

GBT also noted that the Sin Tax Law of 2012, in particular, helped bring down smoking prevalence among Filipino adults from 29% in 2012 to 22.7% in 2015, and that there are now four million fewer smokers — and at least 40,000 smoking-related deaths averted — since 2013. I am uncertain where he sourced his data, however, I reckon they come from reliable sources.

He also shared that the healthcare cost, productivity losses, and premature death losses from the top four tobacco-related diseases — lung cancer, chronic obstructive pulmonary disease (COPD), coronary artery disease (CAD), and cardiovascular disease (CVD) — reached an estimated P210 billion in 2015.

In terms of benefits, GBT noted, raising taxes on cigarettes helped raise the total health budget to P106 billion in 2017, of which P71.2 billion came from the incremental sin tax revenue earmarked for health. Most of the money went into improving Philhealth benefits, and raising sin taxes again now can also help fund the RA 11223 or Universal Health Care (UHC) Law.

The thing is, for taxation to remain effective as a regulatory tool for smoking, sin taxes will have to be raised progressively, as incomes rise. Otherwise, gains can be lost. In fact, while higher taxes helped bring down smoking prevalence to 22.7% in 2015 from 29% in 2012, it has again gone up slightly to 23% in 2018. We need to address this, as I believe the trend should be downward, always.

GBT also cited statistics that as of 2016, the Philippines has the second highest number of adult smokers in Southeast Asia at 16.5 million, next to Indonesia’s 65.1 million. And this brings me to the point that maybe we should now consider and promote other ways to curb smoking, in addition to raising taxes. This is where technology can help.

There have been many arguments for and against vaping or the use of electronic nicotine delivery devices in the last few years, and at this point, more independent scientific studies and research papers published on the topic can help regulators and policymakers decide on the most suitable approach to regulating particularly vaping or the use of e-cigarettes.

I believe in bringing vaping into the taxation fold, and that with proper regulation, the government might be in a better position to regulate its use and safeguard public health. Moreover, regulating vaping can add revenues to government coffers. Vaping also provides an alternative to smoking, and can thus address the slight rise in smoking prevalence in 2018.

Such an approach may be controversial, but I think it is worth the try. Beating cigarette smoking by promoting alternatives to it is using fire to fight fire. For those intending to quit, available alternatives to cigarettes — that replaces the source of nicotine — include medicine, patches, gums, inhalers, nasal sprays, and lozenges.

To date, electronic nicotine delivery systems like e-cigarettes have also become a viable alternative. I believe we should now look into this option, to further reduce smoking prevalence, as long as (1) vaping or the use of e-cigarettes are regulated by the government; (2) they are taxed; (3) that enough scientific studies will provide that people die not from nicotine but from the tar from cigarette smoking; (4) that enough scientific studies can prove that e-cigarettes are effective, safe, and viable therapy for nicotine replacement.

Some industries should be incentivized to initiate wellness programs that include smoking cessation therapies. In Baguio City, for example, city officials were quoted as saying that seven out of 10 BPO workers were smokers. Also, smoking prevalence in the city was about 34%, they said, compared to the national average of 23%.

Counseling and guidance as well as providing nicotine replacement therapies such as gums and patches can work, but I believe that vaping or the use of electronics-based therapies — under proper government regulation — might be more effective in curbing cigarette smoking among BPO workers. In this line, perhaps smoking cessation therapies can be covered by public and private health insurance.

The way this can work, companies can acquire electronic vaping devices in bulk and at a discount, and distribute these for free to smoking employees. Of course, there will be conditions to such, including quitting cigarettes over an agreed period of time. The cost of purchase can be booked under an employee wellness program, which can be designed to become tax deductible, or can be subsidized by health insurance.

The objective, of course, is to curb smoking prevalence, and to promote employee health. By curbing smoking, we also curb smoking-related illnesses and smoking-related deaths. Doing so can also minimize the health insurance costs related to smoking. More important, by investing in smoking cessation programs, companies protect their most important assets — their workers. And of course, healthy workers are healthy taxpayers.

 

Marvin A. Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council.

matort@yahoo.com

Starting on time

IT’S THE DIFFERENT interpretations of time and the meaning of punctuality and tardiness, along with the social stigma, if any, attached to either one, that account for asymmetrical expectations with different cultures. While time for developed economies is numerical and inflexible, Filipino time is determined by ritual, and thus ruled by an accepted ambiguity. Time is not considered a precious resource that needs to be conserved and wisely managed, since there’s too much of it available to most.

There are Filipino conventions that apply based on venue, occasion, and habits.

Some cocktail parties for honoring the winners of an election or a fund-raiser against human trafficking, may state a time in the invitation, say 6 p.m. But the invitee (including the guest speaker) routinely adds at least an hour before showing up. Those who mean exactly what they say will need to state both the beginning and end of the event — the function room must be vacated for a midnight event by 8:30 p.m. Those straggling in after that time will have to gate-crash the midnight group.

An office meeting to review pitches of service providers, set at 8:30 a.m. is expected to start on time and woe to the straggler who pops in thirty minutes later with wet hair and a lame excuse about traffic accidents — a motorcycle cut me off.

Venues provide clues to time expectations. A dinner at a restaurant starts on time. The straggler is bound to be given just a dessert by a surly waitress. (You missed the Peking Duck.) One that is hosted at a person’s home starts later than stated. Showing up on time for dinner at a residence is bound to discombobulate the hostess in her hair curlers supervising the florists on where the potted carnations should go, as the band is setting up.

With this game of “reciprocal expectations,” it is impractical to take the designated time on any invitation literally without considering the flexibility dictated by unwritten social rules. Being on the dot can be considered a faux pas for a book launch. (The books aren’t even here yet.)

Event planners now insert a new timeline for “registration” an hour before the event, so the latecomers straggle in on time. This fools very few people who still compute based on the real time of the event.

The early guest finds he has to kill time somewhere else. This chore of wasting time by having a Dead Sea salt scrub and massage may result in actually being late, even by the host’s definition, not to mention smelling like fish for dinner. Reading a book offers some flexibility as the time can be easily adjusted by a bookmark. Thankfully e-books allow one to read from his phone which is a lot better than lugging along a Jeffrey Archer book.

If the event itself is running very late, say a movie premier, which can be over an hour behind (add another hour for being too early), the prospect of simply drifting away to the mall before the host pops up can be tempting. Why not just skip the movie after signing in at the reception desk with an audible sigh — I must have gotten the wrong invitation? It is small revenge (although not clear how effective) against the unpunctual organizers.

Those who ignore the rituals of time are bound to be in a snit. They may avoid social events altogether as expected arrivals get too confusing. Absence anyway seems less socially offensive than being punctual. A tardy guest receives no censure at all. Even when all are having coffee and cakes as the party favors are being distributed, the late arrival is at least greeted with feigned enthusiasm — we thought you got lost.

It’s not that Filipinos are incapable of being on time. Theater latecomers are deliciously punished by being allowed entry only at a suitable break, maybe intermission halfway through the musical. They are made to wait outside while the washrooms have no queue.

Anyway, the socially confident don’t bother to look at their watches. Those who arrive too early find it a form of isometric exercise to rotate their wrists to glance at the time. These strange time-watchers also leave early — often slipping away without fuss and disappearing into the night. Often their exit is hardly noticed, except by the latecomers whom they meet on their way out — leaving so soon?

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

Northport sails to 3-0 record with win vs TNT

By Michael Angelo S. Murillo, Senior Reporter

THE NORTHPORT Batang Pier sailed to third win in as many games in the Philippine Basketball Association Commissioner’s Cup after beating the TNT KaTropa, 110-86, on Wednesday at the Mall of Asia Arena.

Using a strong effort in the final 16 minutes of the contest that their opponents failed to match, the Batang Pier created enough distance to use as leverage in the end to book the win while sending the KaTropa (2-1) to their first defeat in the midseason PBA tournament.

On the lead of import Terrence Jones and local stalwarts Roger Pogoy and Jayson Castro, the KaTropa would take control much of the opening half but not without challenge from the Batang Pier.

TNT was up, 28-25, at the end of the first quarter before seeing the gap narrowed by Northport by halftime, 44-43.

The nip-and-tuck nature of the contest continued in the third frame, with the teams fighting to a 58-57 count, in favor of TNT, by the 6:02 mark of the quarter.

Mr. Pogoy then led the KaTropa to a 7-5 run after to give his team more breathing space, 65-62, with four minutes remaining.

But the Batang Pier were to sprint to flurry of a finish in the third led by Stanley Pringle, Garvo Lanete and Mo Tautuaa, outscoring the KaTropa, 15-0, to build a 12-point cushion, 77-65, heading into the fourth period.

Carrying much momentum, Northport opened the final canto smoking hot with rookie Robert Bolick making his presence felt.

The Batang Pier outscored the KaTropa, 18-10, in the first six minutes of the quarter to build a 20-point lead, 95-75.

TNT tried to regain some lost ground after but Northport had answers for its every attempt.

The lead was at 24 points, 106-82, with two minutes to go and the Batang Pier cruised to the win from there.

Mr. Pringle had 22 points in his first game back for Northport from injury.

Mr. Bolick had 21 points while import Prince Ibeh had 18 points, 20 rebounds and three blocks.

Troy Rosario, meanwhile, paced TNT with 22 points followed by Mr. Pogoy with 19.

Mr. Jones ended up with only 17 points, considerably below his tournament average of 42 points.

“I really don’t know what to say. We played near perfect basketball. Our defense was there and our offense was clicking. I’m happy for the team with this win,” said winning coach Pido Jarencio in the postgame press conference.

Northport next plays on June 1 against the defending champions Barangay Ginebra San Miguel Kings (1-1) while TNT returns on June 2 versus the Phoenix Pulse Fuel Masters.

Osaka flirts with early exit as top players struggle at French Open

PARIS — Naomi Osaka’s quest for a third consecutive Grand Slam title almost came to an abrupt end on Tuesday as a number of top players struggled to book their spots in the second round of the French Open.

On a windy and chilly day at Roland Garros, world number one Osaka, who won the US and the Australian Opens, lost the opening set to love against Slovakian Anna Karolina Schmiedlova before rallying back for a 0-6 7-6(4) 6-1 victory.

Defending champion Simona Halep, Osaka’s potential semi-final opponent, lost her way in the second set against Australian Ajla Tomljanovic in a 6-2 3-6 6-1 victory on a windswept Court Philippe Chatrier.

In the men’s draw, German fifth seed Alexander Zverev was also pegged back during his match against Australian John Millman and needed five sets to progress after winning the first two.

Last year’s semi-finalist Juan Martin Del Potro also huffed and puffed into round two with a four-set win against Nicolas Jarry of Chile.

Victoria Azarenka avoided the fate of fellow former world number ones Angelique Kerber and Caroline Wozniacki, who were knocked out in the first round, when she beat 2017 champion Jelena Ostapenko in straight sets.

Osaka had the biggest scare, however, as spots of rain and swirling winds disrupted her game with the Japanese failing to put a mark on the scoreboard in the first set.

Schmiedlova twice served for the match, only for Osaka to raise her game and force the contest into a decisive third set during which her variety of shots and power proved too much to handle for the world number 90.

Croatia’s Ivo Karlovic became the oldest man to win a match at the French Open for 46 years as he beat Spain’s fellow veteran Feliciano Lopez in the first round.

Karlovic, who turned 40 in February, won a match featuring players with a combined age of 77 — the oldest in a Grand Slam in the professional era. He became the oldest male player to win a Grand Slam match since Ken Rosewall, aged 44, did so at the 1978 Australian Open.

AZARENKA HANDS OSTAPENKO ANOTHER FIRST-ROUND EXIT
Jelena Ostapenko suffered her second successive first-round loss at the French Open since winning the 2017 title as she was beaten by former world number one Victoria Azarenka on Tuesday.

Considering the calibre of her opponent, a 6-4 7-6(4) loss was not as demoralizing as last year’s defeat by Ukraine’s Kateryna Kozlova.

But it continued a steep decline for the 21-year-old who also fell in round one at the Australian Open and has managed back-to-back wins just once in 2019.

The match statistics made grim reading for Ostapenko with 60 unforced errors to Azarenka’s 19.

Two years after she held the world’s media captive after a stunning final victory over Simona Halep, the world number 39 was asked just one English question for.

While the Latvian looks to arrest the slide, two-times Australian Open champion Azarenka is heading in the right direction having risen back into the top 50 after giving birth to son Leo in December 2016.

Despite all her experience it was the 29-year-old Belarussian who began the match in charitable fashion, opening with two double faults before watching two Ostapenko backhands flash by her.

She broke back in the next game but dropped serve for the third time in a topsy-turvy set to trail 4-3.

Ostapenko double-faulted four times in the next game to hand back the advantage, then twice more at 5-6 to surrender a scrappy opener.

She continued to mix flashing winners with unforced errors in the second, leading 4-2 but allowing Azarenka back in.

Ostapenko served for the set at 6-5 and led 30-0 only to offer up more free points to her grateful opponent.

In the tiebreak Azarenka brought up match point with a thumping forehand winner and another Ostapenko misfire ended the contest.

Azarenka, a semi-finalist in 2013, will now face world number one Naomi Osaka in another blockbuster clash.— Reuters

PSC Chairman Ramirez reconsiders, accepts SEA Games CDM role

PSC CHAIRMAN BUTCH RAMIREZ — PHILIPPINE SPORTS COMMISSION

PHILIPPINE Sports Commission Chairman Butch Ramirez will be the chef de mission (CDM) of the country to the 2019 Southeast Asian Games after all. This, after he reconsidered his previous decision to decline the offer.

In a joint press conference with Philippine Olympic Committee President Ricky Vargas on Wednesday at the conference room of the PSC, Mr. Ramirez said he came to a decision to reconsider after humbly declining the offer the previous day.

Citing the importance of “national interest” in the hosting of the biennial sporting meet and commitment to the duties of being a sports leader, Mr. Ramirez is stepping on the plate.

“Yesterday (Tuesday), I declined the offer to be Chef de Mission of Team Philippines for the upcoming 30th Southeast Asian Games, which we host in five months. I declined for many reasons, two topmost of these are that I see no need to have a title to help the team, being already involved as the Chairman of the government’s sports agency and, delicadeza,” Mr. Ramirez said as he accepted the post of CDM.

“I am in constant communication with my superiors in Malacañang, continually monitoring and assessing the sports landscape of the country. Last night, I was given firm instructions which I shall carry out, knowing beyond any doubt that national interest is primary concern of government, and should be of all,” he added.

Mr. Ramirez went on to express his support for the POC as it continues the work in preparing for the SEA Games which the country is hosting this year from Nov. 30 to Dec. 13.

“I do this for the interest of unity. Through this, I express my solid support to the Philippine Olympic Committee and the Philippine Southeast Asian Games Organizing Committee. We must stand as one,” the PSC chair said.

Adding, “I do this in the interest of protecting our national commitment. While we all have our own interests, we are duty-bound to prioritize national interest above all.”

For his part, POC’s Vargas expressed his gratitude to Mr. Ramirez for reconsidering.

“I know it was not an easy decision. I thank Butch Ramirez for his sacrifice in accepting the role of chef de mission to the SEA Games,” Mr. Vargas said.

The offer for Mr. Ramirez to be CDM came on the heels of a surprising and sweeping organizational change in the POC by Mr. Vargas on Monday in their general assembly with national sports association members, where several key officials were removed from their posts.

Among those stripped of their posts was Monsour Del Rosario of taekwondo as CDM for Team Philippines in the 2019 SEA Games.

Also removed were Robert Bachmann (squash) as chairman of the membership committee, Peping Cojuangco (equestrian) as chairman of the constitution and bylaws, and Joey Romasanta as CDM to the 2020 Olympic Games in Tokyo.

Mr. Vargas said the decision was arrived at as he had lost trust and confidence in the aforementioned officials for what he said were their continuous efforts to undermine his leadership and move for reforms as well as his integrity.

Mr. Vargas replaced Mr. Cojuangco as POC president in February last year.

Messrs. Ramirez and Vargas were joined in the press conference yesterday by POC officials Ed Picson and Karen Caballero. — Michael Angelo S. Murillo

Thirdy Ravena named Basketball Player of the Year

NAMED as the Basketball Player of the Year in the recently held Collegiate Press Corps Awards, Ateneo de Manila University’s Thirdy Ravena said the latest accolade only serves to inspire him to be better come next season where he will play his final year with the Blue Eagles.

A key component in Ateneo’s back-to-back championships, Ravena joined now-pros Mac Belo, Jeron Teng, Robert Bolick, and his brother Kiefer, as winners of the coveted award.

“It’s a great feeling to be recognized, especially for an award like this. All the hard work paid off. But in all honesty, I owe this all to my teammates, also the hardworking coaching staff of our team. We’ve come this far because of them,” said Ravena after receiving his award in ceremonies held at the Amelie Hotel Manila.

“This is only serves to inspire me more. As they say, nothing beats exiting college as a winner. I really want to take full advantage of my collegiate career. Hopefully we get to be in a position to compete for the title once again,” he added even as he said he was dedicating the award to his family, friends and supporters who have been part of his journey.

Apart from winning basketball player of the year, Ravena was also part of the All-Collegiate Team, along with San Beda’s Bolick, Perpetual Help’s Prince Eze, and the University of the Philippines’ Bright Akhuetie and Paul Desiderio.

For the first time as well in the history of the Awards, volleyball stars were feted with University of Santo Tomas’ Sisi Rondina and Arellano University’s Regine Arocha sharing honors for volleyball players of the year.

Rondina was recognized following a spectacular final year in beach and indoor volleyball in the University Athletic Association of the Philippines.

She won most valuable player awards in beach and indoor volleyball and took the Golden Tigresses to within one win away from claiming another UAAP title in nine years.

Arocha, for her part, was a key player in Arellano’s back-to-back National Collegiate Athletic Association titles. She also won finals MVP.

Other awardees were the five peat-winning National University women’s basketball team (Award of Excellence), UP men’s basketball team (Special citation for its Cinderella run in Season 81), San Beda’s Boyet Fernandez and Tab Baldwin as coaches of the year for the NCAA and UAAP, Ateneo’s Angelo Kouame and San Beda’s Javee Mocon (Pivotal Players) and Lyceum’s CJ Perez and Adamson’s Sean Manganti (Impact Players).

The annual Collegiate Press Corps Awards was hosted by the Collegiate Press Corps, made up of print and online media covering the UAAP and NCAA.

It was presented by SportsVision and supported by Chooks-to-Go, Amelie Hotel Manila, Rain or Shine, NorthPort, World Balance, Arellano University and AXA Team Eds. — Michael Angelo S. Murillo

Cincinnati Reds’ Derek Dietrich hits three homers

LOS ANGELES — Derek Dietrich had a career-high three home runs and drove in six to lead the Cincinnati Reds to an 11-6 win against the visiting Pittsburgh Pirates on Tuesday night. Dietrich blasted two-run homers in the fourth, fifth and seventh innings.

The run support was more than enough for Cincinnati starter Lucas Sims in his season debut. Sims, who was recalled from Triple-A Louisville earlier in the day, was working on a shutout before giving up a grand slam to Kevin Newman in the eighth.

Sims went 7 1/3 innings, the longest outing of the season by a Cincinnati starter, allowing four runs and six hits, striking out nine and walking one.

Tucker Barnhart drove in three runs, Jose Iglesias had two hits and scored twice, and Jose Peraza homered for the Reds. Elias Diaz had two hits for the Pirates, including a two-run double in the ninth inning, and Starling Marte also had two hits.

ANGELS 6, A’S 4
Shohei Ohtani lined a two-out, two-run single to break a ninth-inning tie, allowing visiting Los Angeles to snap Oakland’s 10-game winning streak.

A two-out single by Tommy La Stella, a walk to Mike Trout and a wild pitch put two Angels in scoring position in the ninth. Ohtani then smacked his difference-making hit to right field, sending Los Angeles to its third win in four games.

The loss was the Athletics’ first since May 14 and came despite home runs by Marcus Semien, Ramon Laureano and Matt Olson.

INDIANS 7, RED SOX 5
Jordan Luplow hit a two-run double to complete a five-run, ninth-inning rally as Cleveland stunned host Boston.

The Indians trailed 5-2 entering the frame and appeared headed to their eighth loss in their last nine games before Roberto Perez greeted Red Sox reliever Ryan Brasier with a solo home run. After Jake Bauers walked, Greg Allen roped a two-run homer to right to knot the score.

Travis Lakins (0-1) took over for the Red Sox and hit the first man he faced before walking two more to load the bases for Luplow, who crushed a ball that just eluded Mookie Betts in right for the game-winning hit.

RAYS 3, BLUE JAYS 1
Avisail Garcia hit an inside-the-park homer, Austin Meadows also homered, five Tampa Bay pitchers combined on a six-hitter, and the Rays defeated Toronto in St. Petersburg, Fla.

Ryne Stanek, employed as an opener for the 15th time this season, allowed only a hit and a walk in his two scoreless innings. He struck out one. Ryan Yarbrough (4-1) took over in the third inning and held Toronto to two hits and a walk while striking out one in 3 2/3 shutout innings. — Reuters

Early exit

Caroline Wozniacki didn’t exactly have a good runup to the French Open. In fact, her groundwork for the second major tournament of the year was snagged by a spate of injuries that, among other things, compelled her to retire at the Madrid and Italian Opens. Still, she remained confident in her capacity to at least live up to her standing as the 13th seed. Even as she failed to do better than reach the quarterfinals twice in 11 previous stints at Roland Garros, she believed that all her hard work would pay off; if nothing else, it’s how and why she claimed the Australian Open last year.

At first glance, Wozniacki’s predilection for precision appears well suited for the French Open. More an immovable object than an irresistible force, she makes up with doggedness her relative lack of pace. In hindsight, however, red clay has shown the opposite; the slower surface has allowed opponents to keep rallies going, but with more — and, often, far more — power. And for all her relentlessness, it has proven to be a handicap too large to offset. Which, in a nutshell, was why she found herself crashing out in the first round the other day.

Significantly, Wozniacki looked good early on in her opener at Court Philippe Chatrier — so good, to be sure, that she handed unseeded Veronika Kudermetova a bagel in the first set. And then, for some reason, she lost momentum quickly; she made a whopping 18 unforced errors and could do no better than win three games apiece in the second and third sets. She was wistful in the aftermath, unsure of the causes of her mediocre output. “Definitely not the best match I’ve ever played,” she deadpanned. “You work hard, and you want to see results.”

Wozniacki will keep trying, of course. She doesn’t know what giving up — or even tempering her own expectations — means, never mind that she suffers from rheumatoid arthritis. As she noted in her post-mortem, “I just have to try and stay positive. Obviously, it’s not as easy to stay positive when things aren’t going your way. But I think that’s when you really need to.” Indeed. She’s a grinder, steadfast and self-assured, and quick to find motivation in setbacks. She’ll be back, and it’s simply a matter of when.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Sicilian assault

 

Ivory Coast Rapid
Abidjan, Ivory Coast
May 8-10, 2019

Final Standings

1. Magnus Carlsen NOR 2861, 7.5/9

2. Hikaru Nakamura USA 2761, 6.0/9

3-4. Wesley So USA 2754, Maxime Vachier-Lagrave FRA 2780, 5.5/9

5. Ding Liren CHN 2805, 5.0/9

6. Wei Yi CHN 2736, 4.5/9

7-8. Veselin Topalov BUL 2740, Sergey Karjakin RUS 2752, 3.0/9

9-10. Bassem Amin EGY 2704, Ian Nepomniachtchi RUS 2773, 2.5/9

Time Control: 25 minutes play-to-finish with 10 seconds added to your clock after every move

Ivory Coast Blitz
Abidjan, Ivory Coast
May 11-12, 2019

Final Standings

1. Maxime Vachier-Lagrave FRA 2780, 12.0/18

2. Magnus Carlsen NOR 2861, 11.5/18

3. Hikaru Nakamura USA 2761, 11.0/18

4. Ian Nepomniachtchi RUS 2773, 10.5/18

5. Sergey Karjakin RUS 2752, 9.5/18

6-7. Wesley So USA 2754, Ding Liren CHN 2805, 8.5/18

8. Wei Yi CHN 2736, 7.5/18

9-10. Veselin Topalov BUL 2740, Bassem Amin EGY 2704, 5.5/18

Time Control: Five minutes play-to-finish with three seconds added to your clock after every move

Combined Standings
(Rapid points are counted double)

Final Standings

1. Magnus Carlsen, 26.5/36 ($37,500)

2-3. Hikaru Nakamura, Maxime Vachier-Lagrave, 23/36 ($22,500 each)

4. Wesley So, 19.5/36 ($15,000)

5. Ding Liren, 18.5/36 ($12,500)

6. Wei Yi, 16.5/36 ($10,000)

7-8. Ian Nepomniachtchi, Sergey Karjakin, 15.5/36 ($7,500 each)

9. Veselin Topalov, 11.5/36 ($7,500)

10. Bassem Amin, 10.5/36 ($7,500)

The 2019 edition of the Grand Chess Tour features a total of eight tournaments in the circuit with five in Rapid/Blitz format and three in Classical Chess. The calendar is as follows:

Ivory Cost Rapid & Blitz

May 6-13, 2019

Croatia Classical

June 24-July 9, 2019

Paris Rapid & Blitz

July 26-August 2, 2019

St. Louis Rapid & Blitz

August 8-15, 2019

Sinquefield Cup Classical

August 15-30, 2019

Superbet (Bucharest, Romania) Rapid & Blitz

Nov. 4-11, 2019

Tata Steel India Rapid & Blitz

Nov. 20-27, 2019

London Grand Chess Tour Finals Nov. 30-Dec. 10, 2019

The tour kicked off with the Rapid/Blitz Tournament in Ivory Coast, and Magnus Carlsen continued his good form with five wins and four draws for 7.5/9 in the Rapid portion. In the Blitz section he slowed down a bit and in fact lost two games to Vachier-Lagrave but still finished a close second to MVL. Overall, in the combined standings (rapid section games are counted double), it was Magnus with 26.5/36, 3.5 points ahead of Nakamura and Vachier-Lagrave who were tied for second. Wesley So was in 4th place.

Ever since his London world championship match against Caruana last year Magnus has been playing a lot of Sicilians with Black with great success. Here in the Ivory Coast he took it one step further — he responded 1…c5 100% of the time facing 1.e4.

In the Blitz portion of the event he played nine games with Black in 6 of which his opponent played 1.e4. There were 2 Sicilian Alapins (you know, 1.e4 c5 2.Nf3 Nc6 3.c3) of which he won one, 1 Sicilian Rossolimo (1.e4 c5 2.Nf3 Nc6 3.Bb5), drawn, and 3 Sveshnikov Sicilians, and here he also won one. Total is a pretty impressive two wins and four draws against elite opposition.

In the Rapid section it was even more impressive. He played four games with Black, got to play the Sicilian in all four, and won all of them. A 100% score! Let me show you some of his games.

Karjakin, Sergey (2773) — Carlsen, Magnus (2867) [B30]
Ivory Coast Rapid Abidjan (4.2), 09.05.2019

1.e4 c5 2.Nf3 Nc6 3.Nc3

Last Thursday we discussed the Svidler-Carlsen game from Grenke where the GM from St. Petersburg avoided the Sveshnikov with 3.Nc3, same thing that Karjakin does here. The games are quite similar.

3…e5 4.Bc4 Be7 5.d3 d6 6.Nd2

Same as in the Svidler game. The knight wants to go to e3 via f1.

6…Nf6 7.Nf1 Nd7

This knight goes to b6 to destroy the powerful white bishop on c4. There are two ways to meet this threat. Either 8.Nd5 to destroy the Black knight when it gets to b6, or 8.a3 to give his bishop a retreat square to safe haven. Svidler chooses the first plan, Karjakin goes for the second.

8.a3

[8.Nd5 Nb6 9.Nxb6 axb6 10.c3 was how the game last Thursday went. Carlsen mated White in 33 moves. Svidler, P. (2737)-Carlsen, M. (2845) Karlsruhe/Baden Baden 2019]

8…Nb6 9.Ba2 0–0 10.Ne3 Be6 11.Ncd5 Bg5

With Black’s pawns on c5, d6 and e5 this bishop does not have much scope so it is a good idea to exchange it for another piece, preferably his counterpart dark-squared bishop.

12.0–0 Bxe3

Since he cannot exchange his bishop for its opposite number on c1 Carlsen decides to undermine the white’s knight’s outpost on d5.

13.fxe3

[13.Bxe3 Bxd5 14.exd5 Ne7 15.c4 is ok for Black. He will continue with …f7–f5 and then go for a kingside assault. Smirnov,V (2411)-Zhigalko,S (2316) Minsk 2002 1/2 33]

13…Ne7 14.c4 f5 15.Bd2 Bxd5 16.exd5 Nd7 17.b4 b6 18.Bb3 Ng6 19.Ba4 Qe7 20.Bc6 Rad8 21.Qa4 Nf6 22.bxc5

What is wrong with capturing the “free” pawn on f5? You will see why next move when Karjakin really does take it.

22…bxc5 23.Rxf5? e4 24.Qc2 Ng4 25.Raf1 Rxf5 26.Rxf5 Qh4

27.h3 Nxe3! 28.Bxe3 Qe1+ 29.Kh2 Qxe3 30.dxe4 Nf4

Black will follow-up with either …Ne2 (targeting g3) or …Rb8 and penetration down the b-file.

31.Qb2 Qxe4 32.Bd7?

Setting a trap, hoping for 32…Rxd7 33.Qb8+ followed by checkmate.

32…g6!

Karjakin loses a crucial piece.

33.Rf6 Nd3 34.Qc3

[34.Qb7 Qe5+]

34…Rxd7 35.Re6 Qf4+ 0–1

Wei, Yi (2737) — Carlsen, Magnus (2867) [B22]
Ivory Coast Rapid Abidjan (9.1), 10.05.2019

1.e4 c5 2.Nf3 Nc6 3.c3 Qa5!?

You read from your beginner’s books that you shouldn’t bring the queen out early because the queen can easily be chased by pawns and minor pieces in the opening. Every time your opponent develops a piece with tempo while you have to move the queen, you fall one tempo behind. That’s very dangerous in the opening.

As I have been continuously preaching that is a fallacy, especially in the faster time controls. Bring your queen out early but choose the circumstances, don’t let it get pushed around by your opponent’s pieces, and more often than not you will be able to get a king attack going on.

By the way, playing …Qa5 in response to the Sicilian used to be a specialty of former junior standout Robert Arellano. Wonder how he is doing now?

4.Na3 e6 5.Nc4 Qd8 6.d4 d5 7.exd5 exd5 8.Nce5 Bd6 9.Be3 c4 10.b3 cxb3 11.axb3 Nge7 12.Bd3 Bf5 13.0–0 0–0 14.Bf4 Bxe5 15.Nxe5 Nxe5 16.Bxf5 N5g6 17.Bg5 Qc7 18.Bxg6 Nxg6 19.Qf3 Qd7 20.Ra5 b5 21.Rfa1 h6 22.Bd2 Rfe8 23.Qd3 a6!

Black’s offbeat 3rd move made Wei Yi use up a lot of time, something he did not have a lot of this being a Rapid game. Anyway, now he shouldn’t have accepted the “free” pawn on a6.

24.Rxa6?! Rxa6 25.Rxa6 Nf4! 26.Qf3

[26.Bxf4 Re1+]

26…Qf5! 27.Ra1 Ne2+ 28.Kf1 Qc2 29.Qxe2?

Wei Yi thought that giving up his queenside pawns with 29.Be3 Nxc3 30.g3 Qxb3 is an easy win for Black and decides to gamble a little, giving up his queen for rook and knight. In reality after 31.Ra7! things are not so simple for Black.

29…Rxe2 30.Kxe2 Qe4+ 31.Kf1

Wei Yi now tries to build a fortress which hopefully Black cannot penetrate. Magnus Carlsen once said he doesn’t believe in fortresses and he now goes on to prove it.

31…Qc2 32.Ke2 Qxb3 33.Rc1 Qc4+ 34.Ke3 Qc7 35.f4 Qe7+ 36.Kf2 Qe4 37.Re1 Qd3 38.Re2 f6 39.Ke1 Kf7 40.Re3 Qb1+ 41.Kf2 h5

Yes, that’s the way to break fortresses. Make the war be on two fronts, don’t concentrate on only one.

42.h3 h4 43.Be1 Kg6 44.Rf3 Kf5 45.Ke2 Qe4+ 46.Kf1 b4 47.cxb4 Qxd4 48.Bxh4 Qc4+ 49.Kg1 Qxb4 50.Kf1 Qc4+ 51.Kg1 Qe2 52.Bf2 d4 53.Bxd4 Qd1+ 54.Kh2 Qxd4 55.Rf1 g6 56.Rf3 Qd2 57.Rf1 Ke4 58.Rf3 Qe2 59.Rg3 Qh5 60.Rg4 Ke3 0–1

 

Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas (UST) for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net