Entertainment (07/31/18)

July 31, 2018 | 12:01 am

Music, food and art at the Shangri-La Plaza mall

AMERICAN SINGER John Ford Coley and Pinoy rock band IV of Spades headline August’s festivities at the Shangri-La Plaza mall. This along with art exhibits and gourmet strips await mallgoers this month. John Ford Coley, one-half of the duo behind iconic soft rock ballads like “I’d Really Love to See You Tonight,” “It’s Sad to Belong,” “We’ll Never Have to Say Goodbye Again,” will perform on Aug. 12, 7 p.m., at the mall’s Grand Atrium. Indie band IV of Spades will rock the Shang on Aug. 25, 7 p.m., at the Grand Atrium. Mall guests can discover unique local finds in Urban Pod Fair from Aug. 3 to 5 at the East Atrium. Then, from Aug. 24 to 26, come and enjoy good food from local farmers, organic food producers, and chefs in Garden Gourmet at the Food Forum, which will return on Aug. 31 to Sept. 2. Three luxury car labels — Mercedes Benz, Jeep, Land Rover, and Jaguar — will have car shows at the mall’s Luxury Lane. The Mercedes Benz Exhibit will be from Aug. 3 to 15, the Jeep Exhibit from Aug. 17 to 29, and Jaguar and Land Rover Exhibit from Aug. 31 to Sept. 12. On Aug. 4, Sakura: Coloring the Future by National Bookstore will be held at the Grand Atrium. Coming up from Aug. 10 to 12 and Aug. 17 to 19, is the Artisan Fair at the Food Forum. Unique local novelties will be available in the Urban Pod Fair on Aug. 30 to Sept. 2. Walk through Shang’s Home Exhibit from Aug. 15 to 23 at the Grand Atrium, then explore unique urban finds in Articraft de Charite from Aug. 24 to 26 at the East Atrium. The Astrologist Gallery Exhibit will be from Aug. 11 to 21 at the East Atrium. The mall is now pet friendly, with furry friends allowed to roam around the mall with visitors as long as the owners present proof of anti-rabies vaccination and keep their pets leashed at all times. Also, the Shang mall now offers unlimited Wi-Fi access all day for guests.

Shonda dramas in August on Sony Channel

SHONDA RHIMES’ drama series return on Sony Channel with new seasons of Grey’s Anatomy and Scandal this August. Grey’s Anatomy Season 11 places many of the doctors’ personal relationships in serious jeopardy. Meredith Grey (Ellen Pompeo) struggles to regain a sense of normalcy both at home and in the hospital after best friend Cristina Yang (Sandra Oh) moves to another country. Grey’s Anatomy Season 11 premieres on Aug. 10, and will air back-to-back episodes every Friday at 10:40 p.m. Meanwhile, in Scandal Season 4, Olivia Pope (Kerry Washington) returns to Washington, D.C. It premieres on Aug. 9, and will air back-to-back episodes every Thursday at 10:40 p.m. Sony Channel is available on Cablelink Channel 39, Cignal Channel 120, Destiny Cable Channel 35, G Sat Channel 48, and SKYCable Channel 35.

New seasons of MasterChef and more this August

STARTING on Aug. 7, 9:05 p.m., Married at First Sight Australia Season 5 follows the three expert relationship matchmakers as they put together 11 couples based on neuroscience and psychology. In the first episode, the first two couples prepare for their wedding day. Brand new series Women on Patrol starts on Aug. 7 and airs every Tuesday and Wednesday at 10:30 p.m. The show offers an unfiltered look into the lives of female officers fronting some of the busiest police forces in the US, as well as the toughest streets in their communities. Witness girl power every Monday starting Aug. 6 at 9:30 p.m., as Singaporean beauty influencer Mong Chin Yeoh attempts to finish six runs across six countries in Asia in eight weeks, in Who Runs the World. MasterChef Australia Season 10 is back with new episodes from Monday to Friday starting Aug. 1 at 8 p.m. New episodes of UP! Pretty air every Monday at 10 p.m. starting Aug. 6. On Aug. 25, 9 p.m., catch Griselda: The Godmother, a one-hour special on Griselda Blanco, a.k.a.”The Godmother.” Trafficking cocaine from her native Colombia to New York, Miami, and Southern California, she was also tagged for multiple murders via drive-by shootings. This feature is followed by Lifetime Original Movie Cocaine Godmother at 10 p.m., which stars Catherine Zeta-Jones as the notorious Griselda Blanco who contributed to the Cocaine Cowboy Wars that plagued Miami in the late 1970s. Lifetime is available on SKYCable Ch. 65 and Lifetime HD Ch. 199; Cable Link Ch. 223; Dream Satellite Ch. 28; Destiny Ch. 44.

History of Speed, Alone, Ancient Aliens on HISTORY

THIS AUGUST, HISTORY takes a behind-the-scenes look into the heroic stories of military veterans in the Middle East, unsolved extraterrestrial cases, war stories from around the world, and more. Car Week — which celebrates America’s love affair with cars and revisits the most perilous speed milestones through the years — premieres on Aug. 27, 9:55 p.m. Ancient Aliens Season 11 kicks off on Aug. 8 at 9:55 p.m. The show’s host Giorgio A. Tsoukalos will take part in HISTORYCON 2018 from Aug. 10–12. Another new series to hit the screen is Hunting ISIS, a documentary that follows a group of veteran soldiers and civilian volunteers who travel to Syria and Iraq to fight ISIS and local militias. The first episode airs on Aug. 12, 9 p.m. On Aug. 9, 9:55 p.m., 10 participants return on Alone Season 5 to redeem their pride in Mongolia, a frigid and remote region at the edge of Siberia. The newest season of the history-themed series Days that Shaped America tackles the Space Shuttle Challenger explosion. It starts airing on Aug. 17, 9 p.m. Airing every Thursday at 9 p.m. starting Aug. 2 is Forged in Fire Season 5. To commemorate the late Senator Ninoy Aquino’s legacy and contribution to Philippine democracy, HISTORY airs the special The Assassination of Benigno Aquino, Jr. on Aug. 21 at 4:20 p.m.

New judges on X Factor UK

THE X Factor UK has announced that Robbie Williams, Ayda Williams, and Louis Tomlinson will join Simon Cowell on the new judging panel for the hit singing talent show. Robbie Williams is a global superstar who has sold more than 75 million albums over his career and won 18 BRIT Awards — more than any other artist in history. Ayda Williams — actress, presenter, and Robbie’s wife for eight years — will join her husband on this year’s show. Louis Tomlinson is the first judge to have also been a contestant on the show. As a member of One Direction he has sold more than 150 million records worldwide and achieved more than 100 global No. 1s. As a solo artist, his single “Back to You” hit No. 1 in 37 countries and has been streamed more than 220 million times. Acts from The X Factor UK have sold more than 250 million records globally to date. Cowell told gathered media at a press conference: “This new panel is all about optimism, everyone has a real passion for finding a new star. The three new judges bring a whole new energy and I’m excited.” Sharon Osbourne will also return as a judge for The X Factor UK’s live shows while Dermot O’Leary is back as presenter. The X Factor UK S15 will air same day as the UK on Blue Ant Entertainment this September. Blue Ant Entertainment is available on SKYcable channels 53 (SD) and 196 (HD), SKYdirect channel 35, Destiny Cable channel 53, and Cablelink channels 37 (SD) and 313 (HD).

How PSEi member stocks performed — July 30, 2018

July 31, 2018 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, July 30, 2018.

Expenditure shares vary across regions (but which stood out?)

July 31, 2018 | 12:00 am

PNR to reopen Caloocan-Dela Rosa line on Aug. 1

July 30, 2018 | 9:26 pm

By Denise A. Valdez
THE Philippine National Railways (PNR) will be sending trains to ply the Caloocan-Dela Rosa route once again, decades after it was closed in the late 1990s due to the Northrail project.
The Department of Transportation (DoTr), in a statement on Monday, said the train line will start running on Aug. 1, Wednesday.
“After 20 years of closure, the Department of Transportation-Philippine National Railways (DOTr-PNR) will be re-opening the PNR Caloocan-Dela Rosa line to public. Minimum fare will still be at PhP 15.00,” it said.
PNR General Manager Junn B. Magno told BusinessWorld in a text message on Monday, “The Caloocan line was shut down in the late ’90s-early 2000 because of the Northrail project. It was supposed to be utilized by that project.”
“However, the project was defunct, it was not resurrected, until we were able to scrounge extra track material and parts. We resurrected the line in June 2018,” he added.
Mr. Magno said the Caloocan line will be used to cater to passengers from Makati and Caloocan while waiting for the new Tutuban-Malolos railway project, also called the North-South Commuter Railway (NSCR) or PNR North 1.
“We will use the line to offload the Caloocan-Makati traffic corridor…. We are keeping our fingers crossed that the new line will add value to the passengers in the corridor,” he said.
The $2.88-billion NSCR project has opened bidding to Japanese and local investors in Mid-may. It is offering two contracts for the 37.9-kilometer railway: the first one covering seven stations, elevated structures and a depot; and the second covering three stations and elevated structures.
Mr. Magno told BusinessWorld in June there are seven to eight Japanese companies that have expressed interest in the project.

FEF flags retention of foreign equity provisions

July 30, 2018 | 9:24 pm

By Camille A. Aguinaldo, Reporter
THE Foundation for Economic Freedom (FEF) on Monday raised concerns over the provisions of the draft Federal Constitution on foreign ownership restrictions, saying that it still retained the “out of step and out of sync” limitations under the current Charter.
The draft Federal Constitution proposed by the Consultative Committee (ConCom) has retained the 60%-40% ownership of corporations, public utilities, educational institutions, and land as well as the 100% Filipino ownership of mass media. It also allowed Filipinos or corporations at least 70% Filipino-owned to engage in the advertising industry.
The federal and regional governments may also undertake a joint venture in the exploration, development, and utilization of natural resources with Filipino citizens or entities at least 60% Filipino-owned.
It also provided provisions allowing Congress to change the ownership percentage of these corporations through legislation.
The draft Federal Constitution also gave preference to Filipinos “in the grant of rights, privileges, and concessions covering the national economy and patrimony.”
In a statement, the organization called for the lifting of the foreign equity restrictions in the draft Federal Constitution as a “decisive economic liberalization (move) to promote domestic and foreign investments and to create jobs.”
“The restrictive and protectionist constitutional provisions which the draft proposes to perpetuate should be lifted immediately, even as the other impacts of the federal form of government are subjected to deeper and full study,” the group said.
The organization pointed out that the same restrictions in the 1987 Constitution have been responsible for the country’s “inferior growth relative to the economic aspirations” of the country compared to its neighbors.
“These have sent strong signals to foreign investors that they are not welcome to invest in the Philippines to create jobs, transfer technology, provide healthy competition, and improve the lives of Filipinos,” it stated.
It also said the provisions did not label the Philippines as a “modernizing country embracing the future” but as a “backward-looking, anti-modernist, and protectionist” country.
Even if the draft Federal Constitution has given Congress the authority to decide on the capital requirements, the FEF noted that the provisions still retained the restrictions in the current Charter and only relied on the change to happen “if and when Congress sees fit.”
FEF then proposed instead for Congress to regulate the entry of foreign investments. It also mentioned that this has been the practice of other countries.
“We propose that the default provisions not be restrictions but allow Congress to regulate the entry of foreign investments as conditions, including public welfare and national interest, warrant,” it said.
“Moreover, by removing these restrictions in the fundamental law of the land, we are signaling that change has happened and we are open to investment, foreign or local,” it added.
It also questioned the provisions mandating preference to Filipinos in the “grant of rights, privileges and concessions covering the national economy and patrimony.” It argued that phrase may be interpreted as keeping out foreigners to promote protectionism and monopoly.

Senate to review ERC’s delay on PSALM petitions

July 30, 2018 | 9:24 pm

THE SENATE will scrutinize the operations of the Energy Regulatory Commission (ERC) in its upcoming budget hearings in Congress due to the delays in its approval of petitions filed since 2015 by the Power Sector Assets and Liabilities Management (PSALM) Corp.
The PSALM said during Monday’s hearing by the Senate committee on energy that delays in ERC approval of its petitions have led to an additional P34.78 billion shouldered by consumers, equivalent to a power rate increase of P0.193 per kWh.
Under Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 (EPIRA), PSALM is allowed to collect the charges from electricity consumers. It seeks approval from the ERC for the monthly amount to be charged.
Asked to explain, ERC Energy Regulation chief Alvin Jones Ortega said the agency has been following due process on the applications filed in their office. ERC’s lawyer Krisha Buela also pointed out that the regulatory agency was already reviewing its procedures to fast-track the pending applications.
“(The ERC) should improve its process. This coming budget season, of course we will see what happens in their operations. Every delay has costs. And those costs are being passed to consumers,” Senator Sherwin T. Gatchalian, who heads the committee, told reporters after the Senate hearing.
On another matter, the senator also sees the bill allocating the P204-billion Malampaya funds to cover universal charge as the fastest and simplest measure of reducing the cost of electricity rates in the country.
“Over the last two years, this committee has been looking for ways in reducing our electricity bills. We’ve been tackling different measures to effectively reduce the amount that our consumers pay on their electricity bill,” said Mr. Gatchalian.
“After a thorough study on the various bills being proposed in the Senate, the chair (sees) that this bill is one of the fastest, one of the simplest and one of the clearest ways of reducing our electricity bill,” he added.
Senate Bill No. 924 or the proposed Cheaper Electricity Bill Act, filed by Senate President Pro Tempore Ralph G. Recto in 2016, seeks to allocate the net national government share from the Malampaya natural gas project for the payment of the stranded contract costs (SCC) and stranded debts (SD) of the National Power Corp. (Napocor).
The bill also directs the Malampaya funds to be remitted to a “Special Trust Fund” to be administered by PSALM.
Based on the computations by PSALM, applying the P204-billion Malampaya fund would avoid an increase of P0.874 per kilowatt hour (kWh) in retail power rates. This would result in annual savings of P2,033.76 for an average household consuming 200 kWh monthly.
Mr. Gatchalian said the committee is now studying the proposed measure on precisely how much of the remaining Malampaya funds should applied for the purpose.
The Malampaya project is a joint undertaking of the national government and Shell Philippines Exploration B.V. on behalf of joint venture partners Chevron Malampaya LLC and PNOC Exploration Corp. The gas find is expected to run out around 2022 to 2024. — Camille A. Aguinaldo

Other markets eyed in World Coconut Congress

July 30, 2018 | 9:23 pm

THE United Coconut Association of the Philippines (UCAP) will take part in the upcoming World Coconut Congress, as it seeks to tackle both supply and demand issues in the coconut industry.
UCAP President Dean A. Lao, Jr. in a press conference in Quezon City said the congress will provide a venue for stakeholders to develop their marketing and innovation strategies and for farmers to improve their practices.
Through the congress, Mr. Lao also said they “will try to find as much value-added market as [they] can.”
“Because a lot of the branding is done overseas, we want to bring it here. We want to encourage the people to be aware of [other local companies] who are doing a good job…” he told BusinessWorld.
UCAP Managing Director Marco C. Reyes said the industry should focus on improving raw materials and developing a marketing strategy to increase the earning capacity of the farmers.
“[Filipino coconut farmers] have the lowest yield [compared to other countries] at 46 nuts per tree a year. To increase the yield is to increase the income of our farmers,” he added.
“There is [also] demand from other countries [for what] we call emerging and non-traditional products. It offers very wide opportunities [so] we want to develop these products,” Mr. Reyes said.
UCAP Executive Director Yvonne T. V. Agustin said they expect coconut oil exports to reach almost 1 million metric tons (MT) this year.
Data from the US Department of Agriculture’s Foreign Agricultural Service projected that the country’s coconut oil exports are set to grow 3% by 2019, brought about by better copra supply and substitution.
In the first half of the year, Ms. Agustin said exports so far have reached around 414,000 MT. She said this is because of the new demand in emerging markets.
“Our main market is still the US and Europe. They account for 80% of our markets. But other markets are growing like Japan, Malaysia and Indonesia,” Ms. Agustin said.
“These [exporting countries] could be facing their own shortage so they have to buy from us. Maybe they re-export it or process it for themselves.”
Philippines Coconut Authority Division Chief III Rose B. Villaruel said the local coconut industry should not be too dependent on the export market. — A.G.A. Mogato

DTI makes fresh pitch on Japanese investments

July 30, 2018 | 9:20 pm

THE Department of Trade and Investments is encouraging more investments from Japan, one of the country’s biggest sources of foreign direct investments until last year when fund flows started to plunge.
“The Philippines is on an economic breakout. It is the perfect time to invest and do business in our country, which has a 6.8% GDP growth and an 8% growth in manufacturing industry. We are the best country to invest in,” Trade Secretary Ramon M. Lopez was quoted in a statement on Monday.
The official was speaking at an event attended by over 400 Japanese manufacturing companies during a series of Investment Seminars on July 25-28.
Manufacturing is one of the priority industries under DTI’s Inclusive, Innovation-led, Industrial Strategy which covers and eyes other sectors for growth, including electronics, automotive, shipbuilding, aerospace, and furniture.
“We are very keen in engaging with Japan, especially on the aspect of manufacturing and innovation, and how we can work together to strengthen not only manufacturing but the MSMEs in their value chain as well,” Mr. Lopez added.
According to the official, Japan is the top source of foreign investments in the country and has been providing technical assistance that can facilitate more trade and investments through the Japan International Cooperation Agency and Japan External Trade Organization (JETRO).
However, preliminary data from JETRO also show that total January to March investments to the Philippines slumped $104 million, well below the $1 billion logged in the comparable period last year.
In 2017, Japan’s investments brought into the Philippines plunged 56.28% to $1.014 billion from $2.31 billion.
The Japan Chamber of Commerce and Industry had attributed this drop to uncertainty from ongoing legislative discussions over the second package of the Duterte administration’s tax-reform program. — J.C. Lim

SB Corp considering up to P1.7 billion for MSMEs

July 30, 2018 | 9:19 pm

By Janina C. Lim, Reporter

SB Corp. President and Chief Executive Officer Ma. Luna Cacanando — SBGFC.ORG.PH

THE Small Business Corp. (SB Corp.) is considering up to P1.7 billion in funds to lend to micro, small and medium entrepreneurs this year, more than double last year’s funding.
President and Chief Executive Officer Ma. Luna Cacanando said the funds will be channeled through the Pondo sa Pagbabago at Pag-asenso (P3) Program.
The administrations’s flagship program, the P3 is established as an alternative source of financing to MSMEs and do away with the sector’s reliance on the informal 5-6 scheme.
According to the SB Corp.’s 2017 financial statement posted on its Web site, the P3 program released P840.61 million for MSMEs’ borrowing last year.
“We are keeping the momentum going, targeting the release of at least P1.7 billion in P3 loans by end 2018,” Ms. Cacanando said in a statement Monday.
The P1-billion annual fund allotted to the program is said to extend support to at least 40,000 micro enterprises serviced by more than 200 credit delivery partners across the country.
“For every P1 billion from the national government, each province will be allocated at least P10 million in P3 funds,” she said.
SB Corp. said it has 2,000 active SME borrowers nationwide and 154 partner financial institutions.
The agency’s shift of focus to lending is in line with Mr. Duterte’s recently signed Executive Order 58 which merges government-run guarantee funds with newly formed agency Philippine Guarantee Corp.
“We welcome this new development as a step towards more standardized policies and processes that will facilitate timely delivery of services to the public. It is very clear that the national government is trying to address the concerns of operational redundancies,” Ms. Cacanando said.
The agency added that it aims for MSMEs “to receive an increased share in the allocation of the country’s national resources and put into place actual measures to implement the laws developed and passed by Congress that are beneficial to the MSME sector.”

Group to bring campaign on mining safety to Baguio officials

July 30, 2018 | 9:19 pm

THE Philippine Mine Safety and Environment Association (PMSEA) said it will embark on a campaign to deal with small-scale mining, beginning with efforts to promote mining safety to the local government of Baguio.
“We have had talks with the governor, the mayor, and we’re trying to tell him — I told him — ‘Look, you have to support us with this. You are allowing illegal operations,’” PMSEA president Walter William B. Brown said in a press conference in Quezon City on Monday, adding that the group will travel to Baguio on Wednesday to meet with officials there.
“Unless you show the people that you are willing to follow the law, our problem really is a problem of discipline.”
Mr. Brown also emphasized that small-scale miners are not at fault. “[That’s why we] buy their stockpile, we give time to take their goods out and if the government allows to take them out, we allow them to do so. We give them the chance to be integrated in our system,” he said.
“They don’t seem to understand what we’re trying to do but I feel that we have to offer them alternatives because they have no other place to go.”
Mr. Brown said each accredited mining firm is already deputized to manage its own operations and area to avoid further casualties.
“For one thing, it’s an obligation for an MPSA (Mineral Production Sharing Agreement holder) to police itself and its own area. If you don’t do it, you’re at fault, don’t blame the small-scale miner,” he said.
Mr. Brown reiterated that there is no need for new laws, given that there is enough legislation to regulate the industry.
“We have a good mining law, it’s just not implemented properly. In fact, we have one of the best mining laws in the world, but it’s not implemented,” he said. — AGAM

Taxpayer, are you surprised?

July 30, 2018 | 9:18 pm

Plot 1: NEJ, the protagonist, heard unknown voices and odd footsteps. Convinced that her family’s house is haunted, she went to find a local priest, but failed. More antagonistic events ensued, and then the plot twist came: Grace and her two children are the ghosts, and the voices and odd footsteps they’ve been hearing are from living people. They only realized that they’ve been dead when they were being cast away by a séance hired by the new owners of the house.
Plot 2: TP, the protagonist, got to his corporate office early. He saw a mail envelope on his desk. It was from the Bureau of Internal Revenue (BIR). He briskly opened it. He read every word on the letter, sighed, then continued to read the numbers in Philippine pesos. There is no plot twist. He almost dropped the letter. He is being assessed for deficiency taxes. After all the clarifications, he paid the assessment accordingly.
Between these two plots, I prefer to watch Plot 1, and will even produce and direct it. It is actually the plot of a 2001 film, entitled The Others, directed by Academy award winner Alejandro Amenábar. The I-didn’t-see-it-coming feeling and the tinge of shock-of-your-life experience at the end are extremely entertaining. Plot 1, however, is not relatable as it is far from reality. Plot 2, on the other hand, is close to, if not completely, a reality.
To showcase the reality of Plot 2, the BIR recently issued Revenue Memorandum Order (RMO) No. 32-2018, prescribing the audit/investigation of individual and non-individual taxpayers with gross sales/receipts of P10 million and below. The audit/investigation shall be conducted by the Revenue Officers (ROs) of the Office Audit Section (OAS) of the Assessment Divisions in the Regional Offices. The thrust of RMO No. 32-20118 is to generate additional revenues by conducting audits for taxable year 2017 without field investigation by ROs who must submit the report of investigation within 90 days from the issuance of the Electronic Letters of Authority (eLA). Nevertheless, the RMO has the following policies: (1) the Electronic Letters of Authority (eLAs) shall be issued; and (2) that all existing policies and procedures for issuing assessment notices shall be strictly observed.
Letters of Authority (LOA), as described by the Supreme Court in MediCard Philippines, Inc. vs. Commissioner of Internal Revenue (G.R. No. 222743) is the authority given to the appropriate revenue officer assigned to assess functions pursuant to Section 6(A) of the National Internal Revenue Code (NIRC) of 1997, as amended. In this case, the Court emphasized the importance of the LOA in all assessments by expressly stating that an LOA cannot be dispensed with simply because none of the financial books or records being physically kept by the taxpayer were examined. The Court also ruled that a Letter Notice (LN) is entirely different and serves a different purpose than an LOA. An LN, which is issued to notify the taxpayer that a discrepancy is found based on the BIR’s RELIEF System as prescribed in Revenue Regulations (RR) No. 12-2002, as amended, cannot stand as an LOA. An LOA must still be secured because, in the absence of which, the assessment or examination is a nullity.
As for the policies and procedures for issuing assessment notices, these are delineated under RR No. 12-1999, as amended by RR No. 18-2013 and RR No. 7-2018 as follows:
The taxpayer shall be informed of the tax deficiency by the revenue officer who audited the taxpayer’s records. A Notice of Informal Conference (NIC) shall be sent to the taxpayer, giving the latter an opportunity to present its side of the case within 30 days from receipt of the NIC;
If the taxpayer failed to present his side, a Preliminary Assessment Notice (PAN) shall be issued to the taxpayer by the Commissioner of Internal Revenue (CIR) or his duly authorized representative. The PAN shows in detail the facts and the law, rules and regulations, or jurisprudence on which the proposed assessment is based;
If the taxpayer failed to reply or, in cases where no PAN is required, the Formal Letter of Demand and Final Assessment Notice (FLD/FAN) shall be issued by the CIR or his duly authorized representative; and
Then a Final Decision on a Disputed Assessment (FDDA) of the CIR or his duly authorized representative shall be issued to the taxpayer.
Pursuant to Section 228 of the Tax Code, as amended, a PAN shall not be required in any of the following cases:
When the finding for any deficiency tax is the result of a mathematical error in computing the tax appearing on the face of the tax return filed by taxpayer;
When a discrepancy has been determined between the tax withheld and the amount actually remitted by the withholding agent;
When the taxpayer who opted to claim a refund or tax credit of excess creditable withholding tax for a taxable period was determined to have carried over and automatically applied the same amount claimed against the estimated tax liabilities for the taxable quarter or quarters of the succeeding taxable year;
When the excise tax due on excisable articles has not been paid; or
When an article locally purchased or imported by an exempt person, such as, but not limited to, vehicles, capital equipment, machinery, and spare parts, has been sold, traded, or transferred to non-exempt persons.
The Supreme Court had already settled in the case of CIR vs. Metro Star Superama, Inc. (GR No. 185371) (https://cdasiaonline.com/jurisprudences/54034) the issue on the effect of failure to strictly comply with the notice requirements prescribed under Section 228 of the NIRC (https://cdasiaonline.com/laws/10608)and RR No. 12-99 (https://cdasiaonline.com/taxations/20841), as amended. The Court ruled that sending a PAN to a taxpayer to inform them of the assessment made is but part of the due process requirement in issuing a deficiency tax assessment, the absence of which renders nugatory any assessment made by the tax authorities.
As can be culled from the foregoing reality, the scenes in Plot 2 should be as predictable for any taxpayer being assessed by the BIR. The rules are settled. There is no plot twist. All characters are protagonists and contribute to the lifeblood of the nation — taxes. Hence, if I may ask: Taxpayer, are you surprised? The answer should be a resounding “No!”

Rhino T. Chua is a senior 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.
Rhino.Chua@ph.gt.com
+63(2) 988-2288

A Development Puzzle: Granaries and Poverty

July 30, 2018 | 9:15 pm

Why is it that top grain producers in the country differ widely in poverty incidence?
In this article, we compare four Luzon provinces with four Mindanao provinces. They ranked among the top in production and harvested areas in 2015. Why 2015? That was the latest year of official poverty statistics.
Findings:
1. The average poverty incidence of the Luzon granaries — Nueva Ecija, Isabela, Pangasinan, and Cagayan — was 17% in 2015. This was exceedingly lower than the average poverty incidence of 50% of the Mindanao granaries — North Cotabato, Bukidnon, Sultan Kudarat, and Maguindanao.
2. Production in Luzon is far higher in part due to high productivity as it has larger and higher percentage of irrigated areas than Mindanao: 83% of total rice areas versus 59%. Cagayan and Nueva Ecija are served by large dams, Magat and Pantabangan.
3. Luzon grows the high-yielding yellow corn for feeds than white corn: 93% vs. 60% for Mindanao.
4. Luzon leads in yield: 4.4 tons per hectare (ha) for rice and 4.6 tons for corn. These are higher than Mindanao’s at 3.6 tons per ha and 3.2 tons per ha.

There are merits in having irrigation when water supply is available and capital costs considered as well as farming yellow corn for feeds.
However, there are questions why the irrigated yields of Mindanao are far lower compared to Luzon: 4.0 tons per ha versus 4.7 tons per ha. The story is similar for yellow corn: 3.6 tons per ha vs. 5.4 tons per ha. Cultural practices are key.
Maguindanao has very high poverty (57.2%) because, among other reasons, it has low yields across the crops. Low productivity makes it the second poorest in the country.
Bukidnon is an enigma. It has relatively high yields for rice and corn but its poverty incidence is very high at 53.6% (fifth poorest) not that far from Maguindanao’s. It is higher than the Mindanao’s average of about 36%. The province also hosts large sugar (65,000 ha) and pineapple (24,000 ha) areas as well as poultry farms.
Why is this? Average landholding cannot be the factor as Bukidnon’s average is higher than North Luzon provinces. Are farm costs higher and farm prices lower due to lack of rural roads? Is tenancy high?
A Mindanao expert said that, perhaps, having more corn makes the province more poverty prone. Even if productive, the price swing during the harvest season may be more considerable for corn.
These questions deserve answers from the authorities
This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.

Rolando T. Dy is the Chair of the MAP AgriBusiness and Countryside Development Committee, and the Executive Director of the Center for Food and AgriBusiness of the University of Asia & the Pacific.
map@map.org.ph
rdyster@gmail.com
http://map.org.ph

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