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Local fuel prices at highest increase this year

OIL COMPANIES will impose this week the biggest price increase for gasoline products so far this year at P1.60 per liter (/L), with the prices of diesel and kerosene also going up by at least P1.00/L.
“These reflect the movements in the international oil market,” said Petron Corp. on Monday.
All the companies that sent their advisories as of late afternoon yesterday said they would be raising prices at 6:00 a.m. today, May 22.
Diesel products will increase by P1.15/L and kerosene by P1.00/L.
Sought for comment, the Department of Energy (DoE) said a number of world events had “directly” affected oil prices, citing US sanctions on Iran, and that oil importers had been advised to look for alternative supply.
The DoE pointed out that Iran owns 12% of the Organization of the Petroleum Exporting Countries’ (OPEC) supply, amounting to 32 million barrels a year.
It also cited a crude production decline in Venezuela “due to the ongoing economic and political crisis.”
DoE also said OPEC “is deepening the supply cut led by Saudi Arabia,” which wants the price of crude to be at least $80 per barrel to balance its budget.
Last week, oil companies raised the per liter price of gasoline, diesel and kerosene by P1.10, P1.20 and P0.95, respectively. — Victor V. Saulon

BBL tops House agenda

By Charmaine A. Tadalan
The proposed Bangsamoro Basic Law (BBL) and other measures will top the legislative agenda of the House of Representatives, with Speaker Pantaleon D. Alvarez set to recommend to President Rodrigo R. Duterte that he certify this measure as urgent.
“(If we have to finish it by) May 30, the Speaker will request to the President to certify it as urgent para ma-approve na natin ‘yan ng second at third reading, then papunta sa Senate. (so we can have it approved on second and third reading, then transmit it to the Senate),” Majority Leader Rodolfo C. Fariñas told reporters in a press briefing, Monday.
House Speaker Pantaleon D. Alvarez has met with the chairpersons of the Committees on Muslim Affairs, on Local Government, and on Peace, Reconciliation and Unity. He is also set to meet on Tuesday with representatives of the Bangsamoro Transition Commission.
Bukas mag-uusap pa kami with BTC and then, tingnan namin ‘yung mga na-raise na concerns… kung paano i-aaddress, so kinakailangan kasama rin sila para hindi masyadong maging problema sa plenary. (Tomorrow, we will talk with the BTC and then, we’ll look into concerns that have been raised…how to address them, so we need them to join us to avoid problems during the plenary.)” Mr. Alvarez said.
The House of Representatives targets passing the BBL on third reading ahead of Mr. Duterte’s State of the Nation Address in July.
The joint panels on May 15 approved the committee report adopting House Bill (HB) 6475, principally authored by Mr. Alvarez, for the proposed BBL without amendments.

Prima facie correctness of a tax assessment: When does it not apply?

Tax assessments by the Bureau of Internal Revenue (BIR) for alleged tax deficiencies are, in most cases, presumed correct; the taxpayer always bears the burden of proving that the correct taxes have been paid and that the BIR’s assessment is incorrect.
This presumption has to do with the established rule in taxation that assessments for alleged tax deficiencies are prima facie presumed correct and made in good faith or accepted as correct until disproved. This essentially signifies that, once a tax assessment is made, the taxpayer has to pay the tax deficiencies, unless they prove otherwise.
In contrast with the norm established in courts that one who alleges must prove their assertions, once a final assessment notice is presented as evidence with the presumption of correctness attached to it such is sufficient to prove that a taxpayer owed taxes to the government. To invalidate the presumption and to avoid a decision in favor of the BIR, the taxpayer must prove that the assessment was issued blatantly without any factual and legal basis.
The presumption of correctness was coined to balance the self-assessing system of internal revenue taxes in the Philippines. Logic dictates that, if a taxpayer has the control to determine his tax liability, it follows that they have all the means to prove that their computation is correct.
Lately, however, the Court of Tax Appeals (CTA) has appeared to depart from this approach and require the BIR to present sufficient evidence as basis for its assessment. The CTA has compelled the BIR to provide evidence to show that its assessment is founded on facts and law. It seems the CTA, in a sense, is relieving the taxpayer of the burden of proof and shifting to the BIR the initial burden of proving the existence of undeclared taxable income.
Taking the case of Commissioner of Internal Revenue (CIR) vs. G&W Architects, Engineers and Project Consultants, Co., (CTA EB Case No. 1572, Feb. 23, 2018), wherein the CTA pronounced that the assessment was being based on unverified information, it could not recklessly take it hook, line, and sinker, absent of any substantiation. The CTA continued that the reliability of the CIR’s assessment is questionable, on account of the CIR’s failure to show that he complied with the guidelines set forth in RMO No. 46-04, which requires the execution and presentation of sworn statements from third-party informants to attest to the veracity of the schedules and data on which the assessment is based. Finally, the CTA held that a presumption that under-declared purchases translated and would automatically result in profit, undeclared income, or additional taxable sales that would, in turn, increase taxpayer’s income tax.
Furthermore, VAT liability is not adequate to uphold the correctness of an assessment. An assessment must be based on facts. The presumption of the correctness of the assessment being a mere presumption cannot be made to rest on another presumption, no matter how reasonable or logical the said presumptions may be.
In another recent CTA case of Keansburg Marketing Corp. vs. Commissioner of Internal Revenue (CTA Case No. 9076, Jan. 5, 2018), the CTA elaborating on a case decided by the Supreme Court had the occasion to explain that, while as a rule, assessments by tax examiners are presumed correct and made in good faith, prima facie correctness of a tax assessment does not apply upon proof that an assessment is utterly without foundation, meaning that it is arbitrarily and capriciously made. The CTA held that, if the BIR has come out with a “naked assessment” or an assessment without any foundation in character, the determination of the tax due is without rational basis. Accordingly, the assessment on the alleged undeclared sales cannot be sustained, since it was based on admittedly unverified amounts extracted from BIR’s own database.
A taxpayer has a remedy when confronted with a tax assessment. If the taxpayer produces sufficient evidence to demonstrate that the assessment is either utterly without foundation or established from another presumption, the presumption of correctness vanishes and the burden of proof shifts to the BIR. It is then incumbent upon the BIR to produce evidence tending to show that the taxpayer has not accurately reported all its income, resulting in reduced tax liabilities. The presumption of the correctness of the tax assessment is not always true.
Although the CTA has provided the taxpayer an antidote to disprove tax assessments, this does not mean that a taxpayer should be complacent. The situations discussed earlier are mere exceptions to the general rule that tax assessments are presumed correct. Taxpayers should always maintain their records and documents to ensure that, once an assessment is made, they can easily retrieve their records and disprove the assessments.
 
Francis B. Rebuldela, Jr. is an associate of the Tax Advisory and Compliance of P&A Grant Thornton. P&A Grant Thornton is one of the leading audit, tax, advisory, and outsourcing services firms in the Philippines.

ConCom proposes three supreme courts

By Gillian M. Cortez
THE Consultative Committee to Review the 1987 Constitution (ConCom) has proposed three supreme courts under a federal system being pushed by the Duterte adminstration.
ConCom Senior Technical and Media Officer Conrado I. Generoso cited the three proposed high courts as follows: the Federal Supreme Court, the Federal Administrative Court, and the Federal Constitution Court. “The highest court of the land will no longer be just one, no longer just the Supreme court. There will be two more additional high courts to be created under the proposed federal constitution,” he said on Monday’s media briefing.
The Federal Supreme Court will consist of a chief justice and eight associate justices. The chief justice and two other justices will be appointed by the president. Three other associate justices will be appointed by Congress and the remaining three will be appointed by Federal Constitutional court.
Former chief justice and ConCom head Reynato S. Puno said the present system of presidential appointments in the judiciary “is too much politicized” and “proves to be a very unsatisfactory system.”
The Federal Supreme Court will have jurisdiction over cases involving federal branches and agencies, the federal government and federated regions.
They will also be tasked with reviewing judgments and orders by the lower courts, as well as with criminal cases in which the possible sentence is capital punishment or life imprisonment.
The Federal Constitutional Court will tackle legislative and constitutional matters. This court will consist of nine members: three law experts appointed by the president, three justices appointed by the Federal Administrative Court, and three appointed by Congress.
This court will also handle impeachment cases, as initiated by Congress as a whole. “Impeachment cases will no longer be tried in the Senate but it will be in the jurisdiction of the federal constitutional court,” Mr. Generoso said.
He added: “The impeachment process for all impeachable officials will become a joint jurisdiction of Congress and (the) judiciary. So hindi naman tatanggalin sa kongreso. Hati lang ang trabaho (So this won’t be taken out from Congress, but this will just be delegated).”
The third high court will be the Federal Administrative Court, which will also be made up of nine members: one presiding justice and eight other associates.
The presiding justice and two justices will be appointed by the president. Three justices will be appointed by the Federal Supreme Court and the last three will be appointed by Congress.
This court will be to review appeals and certiorari cases by quasi-judicial agencies.
Mr. Puno said there will be a “special court” on election cases involving the president, vice-president and members of the House of Representatives.” But he said “appointment of these members still hasn’t been discussed.”

OFW in Saudi Arabia stabbed

By Camille A. Aguinaldo
A FILIPINO nurse in Saudi Arabia was stabbed multiple times by a Saudi national for still unknown reasons, the Department of Foreign Affairs (DFA) said late Sunday.
Consul-General in Jeddah Edgar Badajos said Rolando Mina, 29, was on duty when he was suddenly attacked by a 22-year-old Saudi national who was arrested shortly after the incident. Mr. Mina sustained multiple stab wounds on his arms.
The DFA said Mr. Mina is now in stable condition while the suspect remains in police custody.
Mr. Badajos said the case has already been endorsed to the Saudi Public Prosecutor for further investigation as authorities have yet to determine the motive for the attack.
The hospital management has provided Mr. Mina with a security guard to ensure his safety and assured him the payment of his salary during his recovery.

Occupational safety and health standards bill approved at bicameral level

By Charmaine A. Tadalan
THE Occupational Safety and Health Standards (OSHS) bill was approved by the bicameral conference committee on Monday, May 21.
Under the bill, erring employers will face administrative penalties with a fine of up to P100,000 per day until the violation is corrected. A separate fine of up to P100,000 would be imposed on employers for noncompliance with the OSHS. The collected fine will be used to fund occupational safety and health initiatives.
Gabriela Rep. Arlene D. Brosas said this is an improvement from the current range of P1,000 to P10,000, but still leaves out criminal sanctions for employers.
“This means that the campaign for criminalization of violations will continue. We will definitely file a new bill supplementing the OSH bill once it is signed into law,” she said.
The Department of Labor and Employment (DoLE), meanwhile, may opt to give incentives to compliant employers.
The proposed bill covers “establishments, project sites, including Philippine Economic Zone Authority (PEZA), and all other places where work is being undertaken in all branches of economic activity, except in the public sector.”
Further, among the measures proposed is the workers’ right to refuse unsafe work and to report accidents to the employer as well as to the DoLE.
Employers will now be required to provide hazard-free workplaces, a job safety orientation, and information of the hazards associated with their work. Employees should also be supplied with drinking water in the workplace, separate sanitary and washing facilities for men and women and suitable living accommodations.
Workers will also be entitled to compensation benefits from work-related disability or death and a mandatory eight-hour safety and health seminar, required by the labor agency.
Critical occupations should undergo a mandatory competency assessment and certification from the Technical Education and Skills Development Authority (TESDA). This applies to jobs that require handling of tools and equipment, compromise safety, or a long period of education and training.
The bill also mandates the creation of a committee on occupational safety and health in the workplaces composed of the employer, safety officers, medical workers, and workers’ representatives.
The bicameral conference committee was led by labor committee chairs Senator Joel J. Villanueva and Rep. Randolph S. Ting. The bill is among the priority measures listed by the Legislative-Executive Development Advisory Council (LEDAC).
The bill was first filed in 2014, initiated by Gabriela, with Makabayan lawmakers, following workplace accidents at the time, including the Eton Residences tragedy in Makati and deaths in Hanjin shipyard in Subic.

Senate approves HIV-AIDS Policy Act

By Camile A. Aguinaldo
THE Senate on Monday, May 21, approved on third and final reading the proposed measure strengthening the government’s response to the Human Immunodeficiency Virus (HIV) and Acquired Immunodeficiency Syndrome (AIDS) epidemic in the country.
Senate Bill No. 1390 or the proposed HIV-AIDS Policy Act was approved with 14 affirmative votes, zero negative vote, and no abstention.
The bill seeks to repeal Republic Act No. 8504 or the Philippine AIDS Prevention and Control Act of 1998 and address the rising incidence of HIV/AIDS by adopting a “newer evidence-based, human rights-informed, and gender transformative strategies to prevent and treat the epidemic.”
Senate committee on health chair Joseph Victor G. Ejercito and Senator Risa N. Hontiveros-Baraquel sponsored the bill, which was also identified as a priority bill in the Senate’s May session.
Its counterpart measure at the House of Representatives has been approved on third and final reading last December.
“It is unfortunate that young people are at the losing end of the struggle versus HIV. With his measure, we will mainstream HIV prevention and treatment for the youth,” Ms. Baraquel said in a statement, citing figures which indicated that 80% of the 31 reported daily cases of HIV infection were from the 15 to 30 year-old bracket.
Under the proposed measure, the government is mandated to improve access to HIV services as well as ensure social and financial risk protection for those who need access to the services.
It would allocate more funds on HIV prevention, diagnosis and treatment. It also would mandate to provide an “up-to-date” education about HIV and AIDS in schools, communities, workplaces and other vulnerable areas.
The bill also called on the private and public sectors to prevent acts of discrimination against persons living with HIV and provide procedures to address discrimination.
A human rights provision was also included in the bill mandating the Department of Justice (DoJ) and the Commission on Human Rights (CHR) to develop redress mechanisms to protect the civil, political, economic and social rights of persons coping with HIV.
The bill also provided a penalty of imprisonment of six months to two years and a fine between P50,000 to P150,000 for disclosing HIV status.
A higher penalty of five to seven years of imprisonment and a fine between P350,000 to P500,000 would be imposed on health professionals, workers, employers, recruitment agencies, insurance companies, data encoders or any custodian of any medical record breaching the confidentiality of HIV status.
The Department of Health (DoH) said the number of HIV/AIDS cases has been on the rise, recording 11,103 cases in 2017. The United Nations also indicated the Philippines as having the highest HIV infection rate in the Asia-Pacific, registering a 140% increase.

Nationwide Round-Up

‘Resistance Coalition’ senatorial roster could include Sereno, Isidro

SIX SENATORIAL candidates will run in the 2019 mid-term elections under the “Resistance Coalition,” possibly including the ousted Supreme Court chief justice, Maria Lourdes P.A. Sereno. In a statement Monday, Senator Francis N. Pangilinan, president of the opposition Liberal Party, released the roster with five names: Senator Paolo Benigno A. Aquino, former Quezon representative Lorenzo R. Tañada, Free Legal Assistance Group (FLAG) Chairman Jose Manuel I. Diokno, Magdalo Party-list Rep. Gary C. Alejano, and former Akbayan Party-list rep. Ibarra Gutierrez III. On Ms. Sereno’s possible inclusion in the line-up, Mr. Pangilinan said, “We have to have strong women in our ticket.” Another possible candidate, according to Mr. Pangilinan, is Maria Margarita Amada “Agot” F. Isidro, an entertainer and one of the most vocal public personalities against the present administration of President Rodrigo R. Duterte. — Gillian M. Cortez

DepEd launches annual back-to-school program as teachers’ group sets up monitoring network

THE DEPARTMENT of Education (DedEd) convened yesterday the inter-agency group that will oversee the annual back-to-school program known as Balik Eskwela, which will officially start on May 28. Multi-sectoral groups, including government agencies and the private sector, traditionally participate in the Balik Eskwela wherein public schools are cleaned and refurbished before the new school year starts in June. “This is not only the undertaking of the Department but also the undertaking of all Filipinos who take interest in education,” DepEd Secretary Leonor M. Briones said yesterday.
MONITORING
Meanwhile, the Alliance of Concerned Teachers (ACT) also launched yesterday the Bantay Balik Eskwela, intended to monitor the “real situation” of the country’s public educational system. The group has set up hotlines (0929-720-8193; 0956-067-8193) to receive reports on what it called the same and old problems in the sector such as lack of and substandard classrooms and other facilities. The teachers’ group also reiterated its call for higher salary, improved government subsidy, and the hiring of education support personnel.

PHL gov’t assures Joma’s safety if he returns home for peace talks

PHILSTAR

THE GOVERNMENT has again reassured Communist Party of the Philippines (CPP) founder Jose Maria Sison, who has been living in exile in The Netherlands, that steps will be taken to ensure his safety if he returns home for the renewed peace talks. “The President has said he will take steps to ensure that he (Mr. Sison) can come back to the country. He will guarantee his safety, he will probably even absorb the cost for Joma Sison to come home and participate in the peace talks,” Presidential Spokesperson Harry L. Roque, Jr. told reporters in a Palace briefing on Monday, May 21. The CPP is classified as a foreign terrorist organization by the United States and a warrant could be issued for Mr. Sison’s arrest during his transit to the Philippines. In a recent television interview in The Netherlands, Mr. Sison said that he is ready to come home once he sees that there is “substantial progress” in the peace process between the CPP and the Philippine government. — Arjay L. Balinbin

Employees rally behind judicial independence, SC judges

SUPREME COURT (SC) employees on Monday wore red as a statement of support for “judicial independence” and the 14 justices who, on a majority vote, issued a quo warranto decision that ousted the chief justice, Maria Lourdes P.A. Sereno, last May 11. “Hindi ito protesta (This is not a protest,)” said Erwin Ocson, president of the Supreme Court Employees Association (SCEA). Mr. Ocson was reading a joint statement signed by the presidents of other court employees groups, including the Philippine Judges Association, Philippine Association of Court Employees, and Supreme Court Assembly of Lawyer Employees. The statement also urged the public to remain calm and accept the SC’s decision. It added that while the decision was “immediately executory,” Ms. Sereno may still file a motion for reconsideration to reverse or amend the ruling. “We believe that our 14 magistrates manifested judicial independence and voting, whether they belong in the majority or minority. So we praise them all. Having six dissenting opinions only shows that the Supreme Court’s decision went through a careful, in-depth, and thorough process, and proves that democracy is still alive,” the statement said. — Dane Angelo M. Enerio

More than 7,000 NPA members have surrendered — military

A TOTAL of 7,194 New People’s Army (NPA) members and supporters have surrendered since January this year, according to Armed Forces of the Philippines (AFP) Spokesperson Edgard A. Arevalo. Three of the returnees were presented to the media at the capital on Monday, as the military revealed the communist armed group’s recent scheme of relocating members to prevent them from going back to their home communities. The three are originally from Davao but were reassigned by the NPA central committee to operate in Quirino due to the declining strength of the rebels in northern Luzon, AFP Public Affairs chief Lieutenant Colonel Emmanuel R. Garcia said. The rebels are brought to different provinces “so that they will have a hard time communicating and to prevent them from returning to the communities because that is what the [NPA’s central committee] has been worrying about,” Mr. Garcia said in Filipino. — Minde Nyl R. dela Cruz

MMDA traffic enforcers get body cameras from Grab

THE METROPOLITAN Manila Development Authority (MMDA) received on Monday 100 units of body cameras from Grab Philippines. MMDA General Manager Jose Arturo S. Garcia said the cameras would be helpful in the agency’s operations, particularly in going after erring motorists. Grab Philippines Public Affairs head Leo Emmanuel Gonzales said, “We are putting our foot forward in saying that please go ahead. If there is erring TNVS (Transport Network Vehicle Service) driver under Grab that committed any violation, apprehend them by all means.” Each camera has 10 to 12 hours battery life and costs P9,000. The units will be issued to traffic enforcers deployed along the main thoroughfare EDSA. — Minde Nyl R. dela Cruz

Cebu provincial capitol building to be converted into cultural-leisure site

THE 80-YEAR-old Cebu provincial capitol building, declared a National Historical Landmark in 2008, will be turned into a cultural and leisure venue after the proposed 20-storey modern building within the same compound is completed. Provincial Tourism Office head Joselito R. Costas, in a statement, said the old edifice would be “reconfigured in a way that would put it to productive use through the conservation strategy of adaptive reuse.” “Conserving a building does not need to be done purely on the grounds of mere heritage preservation… conservation is also a means of safeguarding a cultural heritage with the view to suitably adapting the society’s needs,” said Mr. Costas during last week’s public consultation on the proposed P1.5 billion new Resource Center, where the provincial government plans to move its offices. Among the income-generating uses eyed for the old Capitol are function rooms, offices, restaurants, art galleries, cafés and showrooms for Cebu products. “The entire effort can be self-sustaining if the buildings are restored and put into productive use,” Mr. Costas said. — BW