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Freedom from past tax burdens — a work in progress

As we are celebrating Philippine Independence this month, I can recall several kinds of freedom. For Filipinos, June 12 is a commemoration of our freedom from being ruled by another nation. Another type of freedom is for young upon reaching the legal age, at which point they can make their own choices. Freedom can also be viewed in the context of moving on from a failed relationship. For the taxpayers’ perspective, freedom would mean liberation from tax burden; and it is fitting to mention that, early this year, a law was passed to set free the taxpayers from the past tax deficiencies.

As we know, in February, Republic Act No. 11213 (RA 11213) or the Tax Amnesty Act was signed into law. The law specifically includes provisions for amnesty covering estate tax and tax delinquencies. Subsequently, the Department of Finance, with the recommendation of the Bureau of Internal Revenue (BIR), issued Revenue Regulations (RR) No. 4-2019 and RR No. 6-2019 providing for the guidelines on the processing of applications for amnesty on tax delinquencies and on estate tax, respectively.

Under RR No. 4-2019, the covered “Delinquent Account” was defined as pertaining to a tax due from a taxpayer arising from the audit of the BIR, which had been issued Assessment Notices that have become final and executory due to the instances enumerated in the said RR. In defining the words “Delinquent Account”, all persons, whether natural or juridical, with internal revenue tax liabilities covering the taxable year 2017 and prior years, may avail of Amnesty on Tax Delinquencies within one year from the effectivity of RR No. 4-2019 or until April 24, 2020.

RR No. 4-2019 also provides that the tax delinquency of those who avail of the tax amnesty on delinquencies under these regulations, upon full compliance with all the conditions, shall be considered settled. In addition, the criminal case in connection therewith and its corresponding civil or administrative case, if applicable, shall be terminated. Moreover, the taxpayer shall be immune from all suits or actions relating to the internal revenue taxes for taxable years that are subject of the tax amnesty availed of. Yes, freedom indeed!

On the other hand, just recently, RR No. 6-2019 was issued to implement the estate tax amnesty. The RR covers the estate of the decedent/s who died on or before Dec. 31, 2017, with or without assessments duly issued therefor, whose estate tax/es have remain unpaid or have accrued as of Dec. 31, 2017.

Under RR No. 6-2019, taxpayers are given two years from the effectivity of the RR, or until June 15, 2021, to file the Estate Tax Amnesty Return (ETAR), or BIR Form No. 2118-EA in triplicate, at the Revenue District Office (RDO) having jurisdiction over the last residence of the decedent. If the decedent has no legal residence in the Philippines, the return shall be filed with RDO 039 — South Quezon City. The amnesty rate is 6%, which is equal to the new estate tax rate.

Similar to RR No. 4-2019, RR No. 6-2019 likewise provided immunity and privileges for availing of an estate tax amnesty. Estates covered by estate tax amnesty, which have fully complied with all the conditions set forth therein, including the payment of estate tax amnesty, shall be immune from the payment of all estate taxes as well as any increments and additions thereto, arising from the failure to pay any and all estate taxes for taxable year 2017 and prior years, and from all appurtenant civil, criminal and administrative cases, and penalties under the 1997 Tax Code, as amended.

Both RR No. 4-2019 and RR No. 6-2019 provide that the availment of the corresponding tax amnesty under the said regulations do not imply any admission of criminal, civil, or administrative liability on the part of the availing taxpayer/estate.

Clearly, the above regulations would set the taxpayers free from the burdens of past tax deficiencies, to the extent covered by the regulations.

How about the freedom from the past tax liabilities other than the tax delinquencies and estate tax?

As we may recall, portions of RA 11213 dealing with the General Tax Amnesty (GTA) were vetoed due to concerns related to bank secrecy rules, among others. The GTA was supposed to cover all national internal revenue taxes such as but not limited to, income tax, withholding tax, capital gains tax, donor’s tax, value-added tax, other percentage taxes, excise tax, and documentary stamp tax collected by the BIR and, including value-added tax and excise taxes collected by the Bureau of Customs (BoC), for taxable year 2017 and prior years.

As the GTA was excluded, a call to Congress was made to pass another version of the GTA that, the taxpayers hope, is approved soon. According to news reports, a new bill for GTA is already on its way.

Certainly, having the benefits and privileges of a tax amnesty would free the taxpayers from past tax burdens. Further, it would also help the State raise additional tax revenue while clearing out the BIR’s dockets.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Ma. Jessica A. Guevarra is an associate of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

San Miguel seeks to shape up as it forges ahead of campaign

By Michael Angelo S. Murillo
Senior Reporter

DOWN to their last six games in the elimination round of the Philippine Basketball Association Commissioner’s Cup, the San Miguel Beermen look to make the most of it and put themselves a situation to advance to the next round.

Sporting a 2-3 record, currently outside of the playoff picture, the Philippine Cup champions Beermen seek to turn things around and play at a level they are accustomed to.

They did their cause a favor when they won over the Alaska Aces, 119-107, on June 21, avoiding falling deeper in the race.

Alex Cabagnot took charge for San Miguel in the win, scoring 31 points to lead five Beermen in double figures. He also dished out six assists.

Import Charles Rhodes had 23 points and 11 rebounds. Marcio Lassiter also had 23 markers to go along with seven dimes.

Arwind Santos came up big as well for the Beermen with 15 points while reigning league most valuable player June Mar Fajardo had 14 points and nine boards.

For San Miguel coach Leo Austria, the win over Alaska was something they badly needed considering the kind of start they have had in the midseason PBA tournament.

“This was a very important game for us because we don’t want to be left behind at the bottom. [It was a] scary game at the start because we didn’t have a good start. As much as possible we want to have a good start but Alaska left us early,” said Mr. Austria post-match.

“I’m so happy the players played with a sense of urgency and we were able to recover and at the first half, we were able to get a lead of 24 points. The good thing with this game is I was able to use a lot of players and this could give us some confidence for the bench players,” he added.

Incidentally, the Beermen did not finish the game with starting guard Chris Ross who came down with a calf injury.

Mr. Austria said he expects the players to pick up from the Alaska victory and further shape up as the eliminations wind up.

“I think offensively, it’s not a problem for us. Our problem is our defense, we just allow our opponents to score a lot since our first game in the tournament. Some more than 100 and today, against Alaska, we allowed more than a hundred again. While a win is win, we still have to do a good job limiting our opponents,” he said.

Mr. Austria said he is confident of them making it to the playoffs although at 2-3 they are taking it a step at a time.

“Everything is possible. It’s too early for us because even though we are down 2-3, we still have six games left and what we are after is to win our last six games so that we can end up at number 3 or 4, or maybe 2,” he said.

“But right now, we just want to get into the top 6. One game at a time. What we’re thinking right now is our next game which is Magnolia — whom we think is really a contender in this conference,” added Mr. Austria, referring to the Magnolia Hotshots Pambansang Manok, whom the Beermen will face in their game on Wednesday at the Smart Araneta Coliseum.

Ceres out to do better in 2nd leg of AFC Cup ASEAN zone semis

By Michael Angelo S. Murillo
Senior Reporter

HELD to a 1-1 draw in the first leg of the two-legged AFC Cup ASEAN Zone semifinals last week, Ceres-Negros FC is out to do better and get the job done against Hanoi FC in the return match today in Vietnam.

The “Busmen” said they were satisfied with their performance on June 18 in the first leg at the Panaad Park and Football Stadium but admitted they could have done better than being held to a draw.

Both teams had their chances early in the match but the count would stand at nil-nil by the halftime break.

The tie was broken in the 57th minute when tournament scoring leader Bienvenido Maranon gave Ceres the go-ahead goal, 1-0, heading the ball off a cross from teammate Stephan Schrock.

But Hanoi would not stay down for long, scrambling to get back the point it gave.

The levelling goal came 10 minutes later with midfielder Pape Omar Faye finding the bottom of the net after being set up by Pham Thanh Luong.

The two squads battled it out the rest of the way, looking to get another point to hand them the win but none would come as time expired, leaving the teams settling for the draw.

For Ceres veteran OJ Porteria, a go-getting mindset is very important for them heading into the second leg, especially since they are playing away at the Hang Day Stadium in Hanoi.

He said they must capitalize on every opportunity they have if they are to advance to the next round of the competition.

“We know that we can create chances, so when the time comes we have to make them count. As always we must stay compact and not give them any time to play their game. If we can defend well and put the chances away, I think we can beat them,” Mr. Porteria was quoted as saying by the official AFC Cup Website.

Ceres coach Risto Vidakovic, for his part, admitted the draw in the first leg made all the more difficult their task is. But he nonetheless believes in his team’s abilities to make things happen in the second leg.

“Everything is still open. They (Hanoi) are a strong team and are playing at a high level. We have to match them,” the Ceres coach said.

The winner between the Ceres-Hanoi semifinal pairing will take on the victor of the zonal semifinals between Becamex Binh Duong of Vietnam and PSM Makassar of Indonesia.

The second leg of Ceres versus Hanoi is set for 8 p.m. and will be shown live over ESPB 5PLUS AND ESPN 5 YouTube channel.

Government, public sector kick off support for athletes, para athletes in first-ever unity walk

THE Philippine Olympic Committee (POC) and the Philippine Paralympic Committee (PPC) joined forces Saturday, June 22 at the College of Science Oval in UP Diliman to stage a unity event among various sports sectors to prepare for the coming Southeast Asian Games later this year and the ASEAN Para Games in 2020.

Billed as Olympic Day and Lakad Para Atleta 2019, the event witnessed for the first time ever, a unity walk of abled body athletes walking side by side with para athletes to give life to the event theme, “Unity and Transformation Through Sports.” The event was highlighted by a torch relay that featured five pairs of Olympians and Paralympians traversing the 500-meter oval, symbolizing inclusiveness and equality for all.

The torch relay culminated in a cauldron lighting ceremony followed by the Lakad Para Atleta Legacy Walk participated in by athletes and non-athletes, including a huge group from Citi Philippines as key supporter of PPC and the Paralympic movement. After the walk, the Philippine Olympians Association turned over seedlings to the University of the Philippines to express their advocacy that sports can be used for the betterment of the environment.

Exhibitions and participative activities followed in arnis, skateboarding, athletics, karate, underwater hockey, petanque and parasports like Braille Chess, Wheelchair Racing, Wheelchair Basketball and Para Athletics entertained attendees. A Body Combat session conducted by Fitness First turned the event into a sports fair.

“We are overwhelmed by the show of support from our partners in the government and private sectors, especially Citi Philippines. This is a big push for our national athletes who will be competing for the country in the upcoming SEA Games this November and the ASEAN Para Games in January 2020!,” said PPC President Michael Barredo.

For his part, Citi Philippines CEO Aftab Ahmed said that by supporting the event, Citi Philippines is expressing its corporate commitment. “Para Athletes are truly an inspiration as they overcome the odds to achieve and excel with courage and determination. Today is an opportunity for us to become advocates of their cause, so that we can break down the perceptions around disability and push for inclusion and equality for all.”

Olympic Day is an annual global event of the Olympic Movement that promotes the sharing of the Olympic Ideals, its Olympic Day pillars of Move, Learn, and Discover and the Olympic values of Excellence, Friendship, and Respect. The event was introduced in 1948 to commemorate the birth of the modern Olympic Games in June 1894 at the Sorbonne in Paris.

Around 3,000 people from all walks of life registered for the event.

Jomary Torres confident of ending skid in KL event

JOMARY “The Zamboanginian Fighter” Torres is highly-determined to get back to the winner’s circle at ONE: Masters of Destiny on July 12 against Malaysian hometown hero Jihin “Shadow Cat” Radzuan.

Victory has evaded Torres as of recent, with the Filipina having dropped three straight to Priscilla Hertati Lumban Gaol, Mei Yamaguchi, and Lin Heqin. But instead of sulking in defeat, “The Zamboanginian Fighter” has chosen to take each experience as a lesson. As such, Torres feels well-prepared to face Radzuan, even in front of her fans at the Axiata Arena in Kuala Lumpur.

“It will be a good fight. Jihin is a good fighter,” Torres said.

Torres’ resolve will be out to the test against “Shadow Cat.” Radzuan began her mixed martial arts stint on fire, finding success through her first four professional bouts until she ran into Team Lakay’s Gina Iniong.

Despite Radzuan’s immense talent however, Torres believes that her hard work and trust in her team will result in an upset in Radzuan’s hometown.

Four Filipinos part of Asia-Pacific team to Jr. NBA Global Championship in Florida

FOUR Filipinos will be part of the team from Asia-Pacific that will see action at the Jr. NBA Global Championship in Orlando, Florida, in August.

Camille Nolasco, Heinz Gabriel Demisana, Sebastian Reyes and Lionel Matthew Rubico were chosen as representatives of the region after the Jr. NBA Asia-Pacific Selection Camp from June 15 to 16 in Jakarta, Indonesia.

Among the outstanding campers in this year’s edition of the Jr. NBA Philippines program, the four young Filipinos will join other participants from the region in representing Asia-Pacific in the Global Championship, a youth basketball tournament for the top 13- and 14-year-old boys and girls teams from around the world that will be held from Aug. 6-11 at ESPN Wide World of Sports Complex at Walt Disney World near Orlando.

The players were selected during the two-day camp in Indonesia where they were engaged to execute technical and tactical skills and develop teamwork among players of varying languages and cultural backgrounds.

“Basketball has given me many opportunities with one of them being able to play in the Jr. NBA program. I’m very proud to join the Asia-Pacific team competing in the Jr. NBA Global Championship,” said Demisana after learning of his selection.

“I’m excited for the competition in the United States because it will be a lot harder than in Asia. Representing the Philippines is a big deal for myself because not all kids have an opportunity to play for their country,” Reyes, for his part, said.

Joining Demisana, Reyes and Rubico in the boys’ roster are Joshua Dent (Australia), Tan Zi Sheng Jayson (Singapore), Email Ajmal Bin Jamil (Malaysia), Brian Leonard (Indonesia), Eishin Naito (Japan), Dontae Nance (New Zealand) and Tikun Sriphrawiang (Thailand).

With Nolasco in the girls’ roster are Supawadee Aupatum (Thailand), Angelica Jenifer Candra (Indonesia), Reina Fukuo (Japan), Summah Hanson (Australia), Chon Pui Khee (Malaysia), Phun Trang Linh (Vietnam), Vanissa Renata Siregar (Indonesia), Lily Taulelei (New Zealand) and Iris Yuen (Singapore).

The Jr. NBA Philippines program, where Nolasco, Demisana, Reyes and Rubico came from, has been staged in the country for 12 years now and is presented by Alaska. — Michael Angelo S. Murillo

Green Archers United moves up the standings

PHILIPPINES Football League newbie Green Archers United FC climbed up the standings of Season 3 after getting three full points off a 3-0 victory over Philippine Air Force FC in league action on Sunday at the Biñan Football Stadium in Laguna.

Getting a brace from Marvin Angeles (70’ and 78’) and a goal from Ronnie Aguisanda (84’), GAU (3-1-1) raced to its third win in the tournament and 10 points, good for solo second place, behind undefeated league-leader Kaya FC-Iloilo (4-0-0) with 12 points.

The loss, meanwhile, extended the woes of Philippine Air Force in the PFL as it dropped to a 0-1-4 record, bottom-scraping in the seven-team field.

The “Airmen” only has one point to show for their efforts so far, from a draw against Mendiola FC 1991.

GAU returns to action on July 3 against defending champion Ceres-Negros FC, which is currently in PFL break to compete in the AFC Cup.

Air Force, meanwhile, plays Kaya on June 30. — Michael Angelo S. Murillo

2019 Asian Championship

Asian Continental Chess Championship
Xingtai, China
June 7-15, 2019

Final Top Standings

1. Grandmaster (GM) Le Quang Liem VIE 2694, 7.0/9

2-5. GM Murali Karthikeyan IND 2593, GM SP Sethuraman IND 2613, GM SL Narayanan IND 2603, GM Rinat Jumabayev KAZ 2625, 6.5/9

6-11. GM Alireza Firouzja IRI 2682, GM Abhijeet Gupta IND 2606, GM Vidit Santosh Gujrathi IND 2707, GM Lu Shanglei CHN 2624, GM Lalith Babu MR IND 2571, GM Nihal Sarin IND 2606, 6.0/9

12-19. GM NR Vignesh IND 2459, GM Aravindh Chithambaram Vr IND 2598, GM Nguyen Ngoc Truong son VIE 2639, GM Arjun Ergasi IND 2526, GM Baskaran Adhiban IND 2676, GM Sandipan Chanda IND 2511, IM Dai Changren CHN 2480, GM Deep Sengupta IND 2559, 5.5/9

No. of Participants: 74

Time Control: 90 minutes for the first 40 moves, then 30 minutes play-to-finish with 30 seconds added to your clock after every move from move 1.

Vietnamese GM Le Quang Liem won the Asian Continental Championship by beating the leader S. P. Sethuraman of India in the last round to clinch first place in Xingtai, a city in the province of Hebei, Northern China (“bei” is Chinese for North. Beijing is “Northern Capital,” Hebei is “North of the River,” etcetera).

Liem put in his usual finishing kick with 4.5/5 and overcome a slow start. His overall score of 7/9 was an impressive performance rating of 2783. By the way, many of our readers have asked me what a performance rating is and how it is calculated. Well, it is a hypothetical rating that you have performed at for a single tournament, as opposed to your actual FIDE rating which takes into consideration your performance in other tournaments. A rough calculation is to get the average of your opponent’s ratings with an adjustment based on the score of the game. For each win, you add your opponent’s rating + 400, a draw is just your opponent’s rating, and a loss is your opponent’s rating — 400.

But I digress.

The top 5 players were to qualify for the Khanty-Mansiysk World Cup to hold in Sept. this year. Le Quang Liem though had previously qualified from the 2018 Asian Continental (c’mon, you should know this — it was held in Makati last December) and likewise GM Rinat Jumabayev also qualified earlier by winning the Zone 3.4 Championship (basically, the Muslim Republics of the former Soviet Union: Uzbekistan, Kazakhstan, Tajikistan, and Kyrgyzstan), so all the top 7 finishers will represent Asia in the World Cup: This is the all-GM cast of Le Quang Liem, Murali Karthikeyan, SP Sethuraman, SL Narayanan, Rinat Jumabayev, Alireza Firouzja and Abhijeet Gupta. As you can see, with four qualifiers from the Asian Continental’s five slots, India dominated the competition. Strangely enough, their two top seeds GM Vidit Gujrathi (also the only 2700+ player in the event) and GM Baskaran Adhiban, both did not qualify.

Also strangely enough, although they were the host country, China did not send a strong contingent to the competition. The only one among their top players to participate was former World Junior Champion GM Lu Shanglei who finished in 9th place.

The Philippines did not do so well. We sent six players (GM Eugene Torre, GM John Paul Gomez, GM Darwin Laylo, IM Paulo Bersamina, IM Jan Emmanuel Garcia and IM Daniel Quizon) and the highest-placed was Darwin with 5/9, only good enough for 27th place. We will have more to say about this on Thursday.

Firouzja, Alireza (2682) — Karthikeyan, Murali (2593) [E90]
Asian Continental-ch Open 2019 XingTai (5.1), 11.06.2019

1.d4 Nf6 2.c4 g6 3.Nc3 Bg7 4.e4 d6 5.h3

The Makogonov Variation.

5…0–0 6.Be3 c5

More common is 6…e5 7.d5 Na6.

7.Nf3

Alternatives:

7.d5 leads to a Benoni type position 7…e6 8.Nf3 exd5 9.exd5 Re8 10.Bd3 and here GM Morozevich specializes in 10…Rxe3+!? 11.fxe3 Qe7 12.0–0 Nbd7 13.Qd2 b6 14.Rae1 Ba6 15.b3 Ne5 16.Nxe5 Qxe5 17.Nd1 Re8 18.Rf3 Qe7 19.Ref1 Rf8 20.Kh1 Nd7 21.Be2 Ne5 22.R3f2 Bc8 23.e4 h5 Black has full compensation for the exchange. Postny, E. (2615)-Morozevich, A. (2656) St. Petersburg 2018 1/2 49;

7.dxc5 Qa5 8.Bd3 (8.cxd6? Nxe4 9.dxe7 Bxc3+ 10.bxc3 Qxc3+ 11.Bd2 Nxd2 12.exf8Q+ Kxf8 13.Qc1 Qa5 14.Qxd2 Qe5+ 15.Be2 Qxa1+ Black has a big developmental edge) 8…dxc5 9.e5 Nfd7 10.f4 Rd8 this position is probably equal chances, but many players do not like the looseness of White’s position. 0–1 (84) Romero Holmes, A. (2514)-Guseinov, G. (2552) Mallorca 2004 0–1 84.

7…Qa5 8.Nd2

Alternatives are 8.Bd3 and 8.Qd2.

8…cxd4 9.Nb3 <D>

POSITION AFTER 9.NB3

Now everybody gets a surprise.

9…Qxc3+!

Karthikeyan played this move after 20 minutes of thought so he might have come up with this idea over the board. Aside from the tactics of the move there is also the courage needed to sacrifice the queen in an important tournament like a Continental Championship, which is a qualifier for the next step in the world championship. I remember the huge misgivings I have to battle just to give up a piece in a weekend Executives tournament, and my opponent in that case would be a fellow executive and not an almost-2700 GM known for his tactical ability!

10.bxc3 dxe3 11.f3

The pawn on e3 turns out to be a thorn on White’s side. Maybe he should have played something like 11.Qc2.

11…Nh5

Threatening …Ng3 and …Bxc3+

12.Qc1 Bh6 13.g4 Nf4 14.Kd1 Ne6

Black can try to cash in with 14…Nd3 15.Bxd3 e2+ 16.Kxe2 Bxc1 17.Rhxc1 Na6 with equal material and a slight edge, but obviously Black didn’t sacrifice his queen to get a “slight edge.”

15.Kc2 Nc6 16.h4 Bf4 17.Qd1

Black was threatening …d3–d2. LGM Firouzja could have also played 17.Be2 but he had a regrouping in mind. 17.Qd1 vacates c1 for his knight to relocate to either e2 or d3.

17…Ne5 18.Nc1 Bd7

If White now moves Nd3 or Ne2 Black will win the queen with …Ba4+

19.a4 Rac8 20.Ne2

White misses a tactical point here. Better would have been 20.Nd3 because then Black is forced to exchange a pair of knights. 20…Bh6? loses a piece to 21.Nxe5 the bishop on d7 is undefended.

20…Bh6 21.g5 Bg7 22.Bh3 Nxf3 23.Qd3 Ne5 24.Qxe3 Nxc4

Now the c-file is half-open and Black can put pressure on c3.

25.Qf2

White doesn’t have time for 25.Qxa7 Bc6 26.Ng3 Ra8 27.Qf2 Bxa4+ 28.Kd3 Nc5+! either forces mate or wins a lot of material.

25…Rc5 26.Rhb1 Bc6 27.Bg2 f5

Black’s last piece gets into the action and it is now only a matter of time before he overwhelms White’s position.

28.gxf6 Bxf6 29.Rf1 Bxc3! 30.Qxc5

Firouzja decides to give up his queen to try to survive into the endgame.

30…Nxc5 31.Rxf8+ Kxf8 32.Kxc3 Ne5 33.a5 Nxe4+

Black already has four pawns for the exchange. Too much!

34.Bxe4 Bxe4 35.Nd4 Bd5 36.Nb5 a6 37.Nc7 Bc6 38.Rf1+ Kg7 39.Ne6+ Kh6 40.Rf8 Kh5 41.Rh8 h6 42.Rh7 Kxh4 43.Rxh6+ Kg4 44.Nd4 Kg5 45.Rh2 Bd5 46.Re2 Kf4 47.Rf2+ Nf3 48.Re2 e5 49.Nc2 Be4 50.Ne3 d5 51.Kb4 Nd4 52.Re1 Kf3 0–1

By the way, I should mention that Karthikeyan is a Tamil, and they have a different naming convention — Tamils have no concept of a “family” name. Murali Karthikeyan is one among many GMs who are Tamil, especially those from Chennai (formerly Madras) — among the most notable of whom are Viswanathan Anand, Krishnan Sasikiran, Sethuraman Panayappan (usually shortened to SP) Sethuraman and Baskaran Adhiban. First comes the father’s name and then comes the given name. We should therefore refer to them by their given names of Karthikeyan, Anand, Sasikiran, Sethuraman and Adhiban.

Frederic Friedel of “Chessbase” fame wrote a long article several years ago on chessplayers’ names. He clarified:

If you are a stranger and want to show respect call him Mr. Anand;

If you are a friend or in informal circumstances (in a gym or at a chess tournament) call him Anand;

Never call him Mr. Viswanathan. That would be simply silly — an unexpected mention of his father.

So, there.

 

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

bobby@cpamd.net

Happy Murray

When Andy Murray announced his impending retirement from tennis in early January, there was ample reason to lament the loss of a player who made significant strides on and off the court. If there was universal disappointment in his departure, it underscored the degree of respect for his competitiveness with a racket in hand and his status as an ambassador for the sport. He wasn’t perfect, but if he had fits under pressure, he directed it mostly to himself in an outward reflection of his demanding nature; he knew the extent of his talent, and lashed out demonstratively when he couldn’t translate potential to practice.

Murray would go on to compete in the Australian Open that month, but he lasted all of one round. Considering the pain he was in, he had no business burning rubber, let alone putting up a gallant five-set effort. It appeared to be a fitting valedictory for a three-time Grand Slam champion and five-time major runner-up who found his spirit willing but his flesh decidedly weak. In his post-match presser, he spoke of the possibility of going under the knife anew to address extreme pain in his hip — not to resume his career, but, really, just to improve his quality of life.

January still hadn’t turned over when Murray had his hip “resurfaced,” a surgical process involving the placement of a metal cap at the top of his femur. He didn’t know what fate awaited him, but he was in high spirits right after, perhaps cognizant of the name it shared with the birthplace of his sport and the wonders it had done to doubles specialist Bob Bryan. And he was right to be optimistic; his intense discomfort disappeared, and recovery was quick. In fact, he felt so good that he signed up for a doubles stint with Feliciano Lopez at the Queen’s Club Championships last week. He had a modest goal: subject his body to the rigors of competition and see if it could hold up.

As things turned out, Murray didn’t just survive the tournament. He won it with Lopez. Never mind that he was rusty and newly convalesced from surgery. Forget that they were in a quarter of the draw that had them facing top seeds Juan Sebastian Cabal and Robert Farah in their opener. They improved every step of the way, and, en route to the title, likewise upended third seeds Henri Kontinen and John Peers in the Round of Four and fellow finalists Rajeev Ram and Joe Salisbury. As he noted in the aftermath, “I’m happy with playing tennis and training, and having no pain anymore.”

For Murray, “happy” is exactly what he felt, and why the victory “is more special than a lot of the singles tournaments that I’ve won for a lot of different reasons.” Indeed, he played with his usual fire, but likewise freely, smiling between points and sharing light moments with Lopez. And he so enjoyed his experience that he’s continuing with doubles. Up next is an appearance in the Eastbourne International with Marcelo Melo, and then in Wimbledon with Pierre-Hughes Herbert.

Clearly, Murray’s angling for higher objectives, especially at the All England Lawn Tennis and Croquet Club. He’s bound to be a crowd darling in his favorite haunt, and in the hunt with a career Grand Slam doubles winner. The ultimate goal, to be sure, is to return to singles competition, but he isn’t in a hurry. And if he doesn’t get to do so, it won’t be any skin off his back. He’s right where he wants to be: having fun and in control of his life.

 

Anthony L. Cuaycong has been writing the Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

Exploration ban must stay until collision solved

By Arjay L. Balinbin, Reporter

IT IS not the right time yet for President Rodrigo R. Duterte to lift the moratorium on exploration and drilling works at the Recto Bank or Service Contract (SC) 72 in the West Philippine Sea, analysts said on Monday, noting that the government should settle first the June 9 collision incident in the area.

“For one, if you lift the moratorium and with this incident, it’s like adding insult to the injury,” Law and Business professor Antonio A. Ligon of De La Salle University (DLSU), who has also been conducting lectures on South China Sea issues, said in a phone interview.

He added that government should continue to enforce the moratorium until the incident involving suspected Chinese militia posing as fishermen who rammed and sank an anchored Filipino fishing boat is “settled appropriately.”

“The President can [lift] that as Chief Executive but it’s not the right time until we are clearly settled on this Recto Bank incident issue,” he said.

“If you are going to lift it, you are giving mixed signals, and that might complicate what’s happening,” he added.

On Sunday last week, Department of Energy (DoE) Undersecretary Felix William B. Fuentebella said in a phone message that the request for the lifting of the moratorium was submitted to the Office of the President last February.

Presidential Spokesperson Salvador S. Panelo told BusinessWorld in an ambush interview that the President has yet to act on the request.

In a phone interview on Monday last week, Jesus T. Tamang, DoE’s director for energy policy and planning bureau, said there have been “bilateral discussions” between China and the Philippines on how to proceed with activities in the disputed areas in the West Philippine Sea.

“There is really that bilateral discussion with the Philippines and China,” he said.

Asked whose voice will likely dominate the decision on the proposed lifting of the moratorium, he said: “Sa atin (Ours). Ang DoE ang sumisilip ng mga (It’s the DoE that reviews) government contracts, so it’s going to be our representatives doon sa (there at the) bilateral consultation.”

He added that the recent Recto Bank incident is still “hot,” so the government is taking it “one step at a time.”

Also sought for comment, Renato C. De Castro, a professor of International Studies at DLSU, said in a phone interview on Monday that the President is unlikely to lift the moratorium at this point.

“I don’t think the President will even consider that. The only way we can have a joint exploitation of resources at the Reed Bank is through [a] joint development [agreement],” he said.

He added, “I don’t think that will happen knowing the policy of the President. He will never dare challenge China. Once you lift it, you are challenging China’s nine-dash line [claim]. I don’t think the President has the courage or the inclination [to do that].”

On entering into a joint development deal with China, Mr. De Castro said: “Of course, the joint development [deal] with China has caveat. Before you enter into a joint development [deal] with China, you have to accept China’s indisputable claim to the South China Sea.”

He said the lifting of the moratorium will only come after both countries enter into that agreement.

Katulad ‘yan ng nangyari sa (That is the same as what happened in) Scarborough Shoal. China allowed us to fish pero (but) with the caveat, China [saying] that ‘Oh we are giving you the permission to fish.’ So once they give you a permission, it means they own it,” he explained.

Last year, Mr. Duterte described the possible joint exploration with China in the West Philippine Sea as “co-ownership.”

The DoE placed SC 72 under force majeure in 2015 because the contract site falls within the area that was, at that time, the subject of an arbitration process between the Philippines and China.

The Permanent Court of Arbitration in The Hague in the Netherlands ruled in 2016 that the Recto Bank lies within the Philippines’ exclusive economic zone (EEZ) as defined under the United Nations Convention on the Law of the Sea (UNCLOS).

CHINA HAS REFUSED TO RECOGNIZE THIS RULING.
On whether the President’s “soft” approach to the June 9 Recto Bank incident issue would have any impact on his satisfaction ratings, Polytechnic University of the Philippines (PUP) Sociology professor Louie C. Montemar said via chat: “I think it would, only initially, make a dent on his satisfaction ratings. With the economy in a ‘goldilocks’ zone as BSP (Bangko Sentral ng Pilipinas) Chief (Benjamin E.) Diokno puts it, I think the President can slide through all these again.”

SENATE
Meanwhile, Senate President Vicente C. Sotto III on Monday said the sinking of the Philippine fishing boat may have been an accident, but the failure of the Chinese vessel’s crew to help the Filipinos has to be investigated.

Mr. Sotto said determining whether the light of the Philippine fishing boat was on during the incident is crucial.

“Critical in this boat sinking is did the anchored Philippine banca have a white masthead light on. If it did the collision was deliberate. If it didn’t it could be accidental,” Mr. Sotto told reporters over phone message on Monday.

Upon consultation with an expert from the Philippine Coast Guard, however, Mr. Sotto learned it is likely the crewmen of the Chinese vessel did not see the fishing boat until it was near.

“There is no way we can verify whether the mast light was lighted or not. This is a small fishing boat and normally they don’t display it specially in areas where there is no maritime traffic,” Mr. Sotto said.

“The FB (Gem-Ver) was hit slightly on the astern (rear part) and intentional ramming would be thru the side. Also, it was the boom of the Chinese boat that hit the mast of the Filipino FB which could mean that the Chinese only saw the FB when it was near and tried to do a hard left or hard right with its engines on full astern thus the damage is minimal.”

The senator, however, clarified that while this could be the case, the abandonment of the Filipino fishermen is an issue they still have to face.

“The opinion sent to me by a Coast Guard expert does not preclude the fact that the Chinese vessel left and run. That is the issue that should be addressed by those heartless fishermen in the vessel,” he said.

Senate Minority Leader Franklin M. Drilon, for his part, recommended that an independent body be created by the President to probe the incident.

“Instead of a joint panel we should create an independent probe body, similar to what was formed in the past during the time of president Gloria Macapagal-Arroyo, if you recall the Feliciano commission was created to look into the Oakwood incident,” Mr. Drilon told reporters in a chance interview Monday.

“Similarly, such body should be created by the President and give that probe body jurisdiction to make recommendations, inquire into the Recto Bank incident and submit the report to congress, submit the report to the President.”

FISHERMEN
In a related development, the Bureau of Fisheries and Aquatic Resources (BFAR) said the fiberglass boats distributed to the fishermen of FB Gem-Ver is functional but can also be used for fishing within municipal waters.

“That’s an 18 horsepower engine. Ang kailangan lang i-volt mo ng maigi. Umandar na (You just have to volt it properly then it will function properly),” BFAR National Director Eduardo B. Gongona told reporters on the side of an event in Quezon City.

He said that while the fishermen cannot go out yet to their traditional fishing grounds as their boat is being repaired, “they should fish first using that fiberglass boat na pang (for) municipal waters.”

The 12 units of fiberglass fishing boats were given to them under the FB Pagbabago Program of the bureau, which includes engines and gears, and life jackets.

In total, 15,000 units have been distributed to fishermen since the launch of the program in 2016.

“This program is in response to the requests from poor fishermen all over the country for sturdy fishing boats they could use for fishing in the municipal waters,” Agriculture Secretary Emmanuel F. Piñol said in a social media post.

These boats can go up to 15 kilometers from the coast if the water is calm.

Critics of the program say this is not really helpful to fisherfolk.

Mr. Gongona defended that their aim is to provide livelihood assistance.

He added that the bureau has been working on the installation of transponders in fishing vessels to detect them when they are out at sea. By end of the year, BFAR targets to have distributed 5,000 units. — with Charmaine A. Tadalan and Vincent Mariel P. Galang

PSE index inches higher ahead of US-China talks

By Arra B. Francia, Senior Reporter

THE MAIN INDEX eked out gains on Monday as investors remained cautious ahead of Washington and Beijing’s discussions on their trade relations.

The benchmark Philippine Stock Exchange index (PSEi) added 0.06% or 5.11 points to close at 8,060.58. In contrast, the broader all-shares index slumped 0.1% or 5.27 points to 4,922.54.

“Today our market traded in green amid hopes of a US-China trade deal or at least preliminary agreements between the two that would lead to one in the upcoming G20 summit,” Philstocks Financial, Inc. Research Associate Japhet Louis O. Tantiangco said in a text message on Monday.

US President Donald J. Trump and Chinese President Xi Jinping are scheduled to meet during the G20 summit in Japan by the end of the month, where they are expected to come up with a deal that would resolve their trade dispute.

Mr. Trump earlier said officials from both sides will meet prior to the G20 summit.

“There was profit-taking however in the final minutes which left the local bourse with thin gains for the day. This shows that most investors are still uncertain with the ongoing geopolitical tensions abroad which is why they chose to book gains as early as possible rather than hold their positions,” Mr. Tantiangco added.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez also attributed the PSEi’s movement to anticipation of a trade deal.

“A lack of immediate catalysts continue to dampen excitement for the PSEi — with investors possibly still looking to the G20 summit by month’s end on some news for the trade war,” Mr. Perez said in an e-mail.

Sectoral indices were equally split between gainers and losers. Those in positive territory were led by property which advanced 0.89% or 38.86 points to 4,363.42. Mining and oil rose 0.76% or 55.95 points to 7,360.05, while services firmed up 0.24% or 4.20 points to 1,708.15.

Meanwhile, financials dropped 0.59% or 10.53 points to 1,746.33, followed by holding firms which tumbled 0.31% or 24.07 points to 7,669.23. Industrials slipped 0.07% or 8.55 points to 11,841.44.

Turnover stood at P9.05 billion after some 3.39 billion issues switched hands, slightly lower than the previous session’s P9.36 billion.

Foreign investors were in net buying mode at P18.57 million, snapping a three-day net selling streak capped by Friday’s P143.98-million outflow.

Decliners outpaced advancers, 98 to 88, while 50 names were unchanged.

Meanwhile, international markets ended lower last Friday due to heightened tensions between the US and Iran. The Dow Jones Industrial Average shed 0.13% or 34.04 points to 26,719.13. The S&P 500 index lost 0.13% or 3.72 points to 2,950.46, while the Nasdaq Composite index went down 0.24% or 19.63 points to 8,031.71.

Peso climbs to new one-year high

THE PESO strengthened further against the dollar to hit a fresh one-year high on market optimism ahead of the trade negotiations between the United States and China.

The local unit closed at P51.39 versus the greenback on Monday, 18 centavos stronger than its P51.57-per-dollar finish last Friday.

This was the peso’s best showing in more than a year or since it closed at P51.31 against the dollar on Feb. 8, 2018.

The peso opened Monday’s session at P51.45 per dollar. Its intraday high stood at P51.55 versus the greenback, while it closed at its worst showing for the day.

Volume thinned to $732 million from the $1.17 billion that changed hands the previous session.

“The peso appreciated on market optimism ahead of the G20 Summit wherein President (Donald J.) Trump and Xi (Jinping) are anticipated to discuss trade matters,” a trader said in an e-mail.

Leaders of the world’s two largest economies are set to meet on the sidelines of the G20 Summit in Osaka, Japan later this week.

The meeting of Mr. Trump and Mr. Xi raises hopes that Washington and Beijing will reach a truce after their relations soured again after imposing tit-for-tat tariffs against each other’s imports.

Both China and the United States should make compromises in trade talks, Chinese Vice Commerce Minister Wang Shouwen said on Monday, ahead of a much anticipated meeting between the Chinese and US presidents at this week’s G20 summit in Japan.

Both the Chinese and US teams are making preparations for the Xi-Trump meeting, Assistant Foreign Minister Zhang Jun told the same briefing on Monday.

“We are seeing somehow risk on sentiment in emerging markets since the trade tension is affecting the big countries only,” another trader said.

The trader added that the peso strengthened after the dollar traded weaker over the weekend, dragged by the weaker-than-expected US manufacturing data.

Data company IHS Markit said US manufacturing managers index declined to 50.1 in early June, falling from the 50.5 reading in May and the 50.4 expected by the market.

“With that weak data, it fuelled the case of a rate cut from the US Federal Reserve in July,” the second trader said.

For today, the first trader expects the peso to trade between P51.30 and P51.60, while the other gave a P51.30-P51.50 range. — K.A.N. Vidal with Reuters