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Indonesia deficit to be plugged with produce, auto parts exports

THE Department of Trade and Industry (DTI) is looking into narrowing the trade deficit with Indonesia by exporting more agricultural commodities and car parts.

“President Rodrigo (R.) Duterte is pushing for the Philippines to narrow its trade imbalance with Indonesia. Thus we hope that openness from both countries will result in a mutually beneficial trade relationship between the two countries,” Trade Secretary Ramon M. Lopez said in a statement.

Mr. Lopez discussed trade opportunities with his counterpart, Minister of Trade Enggartiasto Lukita, on the sidelines of the ASEAN Summit. They agreed to follow-up meetings in Indonesia by August or September.

In 2018, Indonesia was the Philippines’ ninth largest trading partner, with exports to the Philippines worth $6.4 billion. The Philippines’ exports to Indonesia totaled $866.2 million.

Indonesia expressed a willingness to import more shallots, bananas, and alcoholic beverages from the Philippines. Indonesian company PT Mayora Indah Tbk, a food company that makes the Kopiko brand of instant coffee, started importing desiccated coconut from the Philippines in April.

Mr. Lopez also proposed to Indonesia exports of auto parts from the Philippines for the Toyota Fortuner SUV, which is manufactured in Indonesia and is one of its top vehicle imports, as well.

The Philippines is also hoping to export the Mitsubishi Mirage G4 and Toyota Vios small cars to Indonesia when the country becomes the regional production center for these vehicles.

The two also discussed special safeguards (SSG) on coffee imports to the Philippines, as ordered by the Department of Agriculture via Department Order No. 6. It cited increased imports of Kopiko instant coffee, affecting domestic coffee manufacturers. — Vincent Mariel P. Galang

DTI launches capacity-building program for Iloilo MSMEs

Department of Trade and Industry (DTI) logo

THE DEPARTMENT of Trade and Industry (DTI) in Iloilo said it launched a capacity-building program for small entrepreneurs at the barangay level.

The Negosyo Serbisyo sa Barangay, which primarily aims to spread awareness of various DTI programs and activities, hopes to benefit 87 barangays from the 17 fourth- and fifth-class municipalities in Iloilo province, according to DTI Provincial Director for Iloilo Ermelinda P. Pollentes.

She added that the DTI plans to cover all 87 barangays by November.

DTI’s Industry Development Division Senior Trade and Industry Development Specialist and Negosyo Center Account Officer Mutya D. Eusores said the DTI is targeting about 100 participants per gathering.

“It’s a half-day event gathering at least 100 residents in a particular barangay. It will be an information education campaign on the services of Negosyo Centers and development partners,” Ms. Eusores said.

Ms. Eusores said the activity will help existing as well as potential micro and small enterprises develop their ventures.

“We will be inviting representatives from other agencies and institutions like microfinance institutions who provide services for SMEs. They can expect consultancy services for those who want to start their businesses and awareness on how they can level up their products and services,” she said.

Ms. Pollentes said it is important to bring DTI’s programs at the community level to encourage more entrepreneurs.

“We go to the barangays because we want them to become entrepreneurs. We want to create an entrepreneurial revolution because that’s the only way we can compete with our neighboring countries. Our (DTI) secretary wanted us to reach more people in the grassroots,” she said. — Emme Rose S. Santiagudo

New Clark City golf, hotel project to undergo Swiss challenge

THE Bases Conversion and Development Authority (BCDA) said it will initiate a Swiss challenge this week for a golf and mountain resort project in New Clark City, BCDA President and CEO Vivencio B. Dizon said.

“There are other new developments in the leisure and tourism area; in fact you will probably be seeing an advertisement for a Swiss challenge in the coming days for a luxury mountain resort,” Mr. Dizon said during the Makati Business Club Annual Meeting on Monday.

Mr. Dizon told BusinessWorld that the 400-hectare project in New Clark City will be a “P12 billion plus investment.”

A Swiss challenge kicks in on unsolicited projects put forward by an original proponent. The proponent’s bid is subject to challenge by third parties, which the proponent has the right to match.

According to Mr. Dizon, the project’s original proponents are the French hospitality company AccorHotels, South Korea’s Widus International Leisure, Inc., and Singapore hotel chain The Banyan Tree among others.

“We will be publishing the Swiss Challenge documents in the next couple of days for anyone interested to challenge that proposal,” Mr. Dizon said during the annual meeting.

The development of New Clark City in Central Luzon is positioned as a smart city with the potential to host alternative government offices and decongest Metro Manila.

Ongoing projects at Phase 1 of the 9,500-hectare New Clark City include the 200-hectare National Government Administrative Center (NGAC) being built by AlloyMTD Philippines, and two private-sector led projects: the 288-hectare mixed-used industrial park by Filinvest Land, Inc. and a 500-hectare industrial park by China Gezhouba Group Co. Ltd.

The completion of the first 60 hectares of the NGAC is targeted for the end of August while the facilities will be tested in September.

Phase 1 of the project involves the construction of a sports complex which will be the venue for the Southeast Asian Games between Nov. 30 and Dec. 11. — Katrina T. Mina

NPO found to have outsourced printing jobs without valid contracts

THE Commission on Audit (CoA) said the National Printing Office (NPO) conducted unauthorized transactions last year amounting to P121 million, and improperly recorded outsourced printing agreements as equipment leases.

According to CoA’s audit report for 2018, NPO continued to engage private printers to augment its printing capacity limitations without valid contracts.

“The Production Report disclosed that in 2018, NPO accepted from procuring entities and accomplished 249 work orders for the printing of accountable forms under “Leasing” amounting to P121,691,215.37.

However, based on records, NPO did not have any valid Lease or Rental Agreement for 2018 nor did it conduct public bidding for the lease of printing equipment; thus, the work orders under “Leasing” amounting to P121,691,215.37 were illegal,” CoA said in the report.

The state auditors noted that the equipment lease agreements of NPO with private printers had expired by September 30, 2017.

Further, CoA said NPO continued to subcontract printing services while entering them into the books as leases.

“NPO paid 12 private printers in 2018 for the alleged rental fee of leased printing equipment in the total amount of P120,927,408.00, although documents show that the amount paid was (equivalent) to the production cost; therefore, it was a subcontract,” CoA said in the report.

CoA recommended that NPO “enter into a valid Equipment Lease Agreement through competitive bidding in accordance with the IRR of RA No. 9184, and strictly implement its provisions.”

CoA also recommended that NPO issue waivers in case it cannot accommodate any printing requirements.

“[The Management should] issue a certification/waiver in cases where NPO cannot accommodate the printing requirements of requisitioning agencies due to time constraints and/or equipment limitations,” CoA said. — Vince Angelo C. Ferreras

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