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On top of the heap

To argue that Rafa Nadal dominated the United States Open men’s singles final yesterday would be an understatement. He was on a mission from the get-go; at stake was a second major championship for the year, and a 16th in a career that not a few quarters believed to be on the wane in light of his advancing age and increasing susceptibility to injury. And how overpowering was he? Consider this: Up until his final service game, he prevented eventual runner-up Kevin Anderson from reaching deuce, winning 35 of 40 first serves and 17 of 24 second serves. Moreover, he strove to stay unpredictable, going for tactics that he hitherto appeared less than comfortable with, to great success; for instance, he went to the net 16 times and, astoundingly, won every point.

Granted, Anderson came to play as well. He did all the right things, staying positive and battling even when the outcome appeared inevitable. Despite his best efforts, however, he simply couldn’t keep pace. It wasn’t that he failed to bring his A-game with him; it was that his A-game proved far from enough. For all his booming serves, he found himself under pressure, never mind that Nadal waited to receive close to the back wall, especially on the ad court; only in the middle of the third set was he able to hold at love, and by then, he was already down two sets and a break.

No doubt, naysayers will contend that Nadal prevailed over an underwhelming field. En route to his coronation, he didn’t challenge a single Top 20 player; Juan Martin del Potro was the highest seed at 24th. On the other hand, it cannot be denied that he wrapped his arms around the US Open Trophy by doing what all the other champions did before him: He hurdled the obstacles that came his way. It wasn’t his fault that defending titleholder Stan Wawrinka, 2016 runner-up Novak Djokovic, and erstwhile World Number One Andy Murray bowed out of the tournament due to a variety of ailments, and that archrival Roger Federer exited in the Round of Eight.

In any case, it would have been fair to insist that Nadal was fated to run the table at Flushing Meadows. He wasn’t perfect; three of his matches lasted four sets. Nonetheless, he underscored his ascendancy by making timely and appropriate adjustments. Even as his trademark uppercut forehand remained his biggest weapon, he showed his willingness to learn new tricks; against Anderson, for example, he employed sliced backhands (not a comfortable shot for him) to disrupt the flow of the rally, leading to wrong-footed responses. In this regard, the presence of new coach Carlos Moya has benefited the evolution of his game.

At this point, Nadal has everything going for him, and not because his supposed peers have been facing difficulties of late. He just capped a season in which he reigned over two Grand Slam stops and forged a bridesmaid finish in a third, not an insignificant feat given how much his body seemed to be breaking down due to his physical style of play. Once again, he’s on top of the heap, and it doesn’t look like he’ll be stepping down anytime soon.

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

Rediscount loans surge

REDISCOUNT LOANS taken out by Philippine banks surged in August as the new borrowing rates imposed by the central bank went in full swing.

In a statement, the Bangko Sentral ng Pilipinas (BSP) reported that banks availed of P443 million in peso rediscount loans last month, surging from the P12 million they borrowed in July. This brought the eight-month total to P470 million, sliding from the P10.673 billion borrowed during the comparable year-ago period.

Philippine banks are allowed to borrow from the BSP’s rediscount facility window in order to meet their short-term funding needs, as the central bank fulfills its duty as lender of last resort. Under the facility, banks can submit promissory notes from outstanding client debts as collateral to acquire fresh money supply, which they can use to hand out more loans or service withdrawals.

Bulk of the credit secured by the banks were incurred for commercial credits, which took 83.7% of the sum. On the other hand, borrowing for the services sector accounted for 13.1% of the total, while housing credit stood at 3.2%, the central bank said.

The availments came as new borrowing rates took effect on July 21, which comes after the central bank closed the special window for thrift, rural, and cooperative banks which was in place since 2013.

On the other hand, the dollar and yen rediscount windows still remained untapped as of end-August. Interest rates for foreign currency loans saw mixed movements for September, but such changes were minimal from a month ago.

Rates for dollar borrowings rose to 3.31778% for 90-day loans; 3.38028% for 91- to 180-day loans; and 3.44278% for 181- to 360-day loans, tracking global yield movements which came after US Federal Reserve raised policy rates by another 25 basis points during their June meeting.

Meanwhile, yen-denominated loans will see lower rates at 1.97186% for one to 90-day loans, 2.03436% for 91- to 180-day loans, and 2.09686% for 181- to 360-day loans.

Netflix premieres new Star Trek series, airs all previous episodes

TO CELEBRATE the premiere of Star Trek: Discovery, the latest series in the Star Trek universe (photo), Netflix beams up all 695 episodes of the various Star Trek television series. On Sept. 25, Netflix will exclusively premiere Star Trek: Discovery in 188 countries (excluding the US and Canada). Set roughly a decade before the events of the original Star Trek series and separate from the timeline of the current feature films, Discovery explores the Federation-Klingon cold war while following the crew of the USS Discovery. Analyzing its viewing data, in the Philippines, “End Game” (Voyager Season 7, Episode 24) is the most revisited episode, according to Netflix.

Small banana exporters want surplus produce to go to school feeding program

SMALL-SCALE banana exporters are planning to revive a project on donating surplus produce for feeding programs in public schools. Ireneo D. Dalayon, president of the Federation of Cooperatives in Mindanao, said their group have started discussing with government agencies such as the Education department on how to implement the program. Mr. Dalayon said they are initially looking at Davao del Norte and Compostela Valley, two provinces that are home to banana plantations. “The excess quality but non-exportable Cavendish bananas are just left at the packing plants of banana exporters,” he said, noting that about 10% of banana grown for export usually get classified as rejects. The feeding program that is being planned would include a campaign to entice students to eat bananas. “The nutritional value of the product is remarkable that it would certainly warrant acceptance of the cooperators and likeness of the intended beneficiaries,” he said. A similar project was undertaken in the past, intended to provide bananas to public schools as substitute to junk foods, but the program lost steam. — Carmelito Q. Francisco

Stocks inch higher as investors look for drivers

THE MAIN INDEX posted an uptick on Monday amid slower economic activity, with market focus on the havoc wreaked by Hurricane Irma in the US.

The bellwether Philippine Stock Exchange index (PSEi) rose 0.33% or 26.56 points to 8,049.31.

The broader all-shares index climbed 0.32% or 15.31 points to 4,778.61.

“Philippine stocks closed higher today…with most attention focused on the hurricane hitting the US,” said Regina Capital Development Corp. Managing Director Luis A. Limlingan in a text message on Monday.

Mr. Limlingan noted that US stock indexes closed mostly lower Friday, finishing a holiday-shortened week with modest losses, as investors traded cautiously ahead of a potential missile test by North Korea and Hurricane Irma’s arrival on the Florida coast over the weekend.

On Friday, the Dow Jones Industrial Average rose 13.01 points or 0.06% to 21,797.79; the S&P 500 lost 3.67 points or 0.15% to 2,461.43; and the Nasdaq Composite dropped 37.68 points or 0.59% to 6,360.19.

Summit Securities, Inc. President Harry G. Liu said the market continues to trade in a “lull sideways behavior” as investors wait for significant catalysts to push the index beyond the resistance level of 8,100 points.

“Market investors are on the sidelines but buying at a certain support level. We can only breach that level if there will be good news that will be catalysts,” Mr. Liu said in a phone interview yesterday, still holding on to a speedy resolution to the ongoing battles in Marawi City and a tax reform package more favorable to business players as some of the significant market drivers.

Counters were mixed. Holding firms went up 0.55% or 43.57 points to 7,934.55; property increased 0.54% or 20.72 points to 3,806.03; services climbed 0.32% or 5.64 points to 1,742.37; and industrials edged up 0.22% or 25.59 points to 11,252.58. Mining and oil fell 0.30% or 42.36 points to 13,772.26 and financials shed 0.22% or 4.42 points to 1,966.5.

Advancers outnumbered decliners, 110 to 87, while 50 names closed unchanged.

Value turnover stood at P6.1 billion on Monday as 899.17 million shares changed hands, down from Friday’s P7.89 billion.

Other Southeast Asian stock markets also ticked up on Monday as investors heaved a sigh of relief after North Korea held back on a missile test, with Vietnam hitting an over 9-1/2-year high.

The US and its allies had been bracing for another long-range missile launch on Saturday, following multiple such launches in recent weeks that heightened tensions globally.

Vietnam shares rose 0.5% to its highest since February 2008, and were also headed for their eighth consecutive session of gains.

Singapore shares gained as much as 0.4%, boosted by lenders and consumer staples stocks.

Malaysian shares inched up 0.2%, while Thai shares rose 0.4%, heading for their eighth straight session of gains — JCL with Reuters

Singapore’s Malay presidency puts minority representation on agenda

SINGAPORE — There are no Muslim Malays in the top echelons of Singapore’s army, and few among the senior ranks of its judiciary, but a member of its poorest ethnic minority will become president of the Southeast Asian city state this month.

Aiming to strengthen a sense of inclusivity in the multicultural country, Singapore has decreed the Sept. 23 election for the largely ceremonial post of president will be reserved for candidates from the Malay community this time.

Even among the presidential hopefuls, however, there is some regret that ethnic Malays still need a leg up.

“It is my hope that in the near future the issue of Malay representation ceases to be relevant in the Singapore context,” said Salleh Marican, a businessman waiting to hear if his election candidacy has been accepted.

Among the other two Malay candidates who have declared their intention to run, Halimah Yacob, the former speaker of Singapore’s parliament, could become the first female head of state if her bid is successful.

Her experience as house speaker automatically qualifies her under the nomination rules, but her rivals, businessmen Farid Khan and Mr. Marican, could be disqualified if a presidential elections panel deems their businesses too small to demonstrate the required levels of responsibility.

The panel will announce its decision by Wednesday.

Ms. Halimah declined to comment for this report.

The last Malay to hold the presidency was Yusof Ishak, whose image adorns the country’s banknotes.

Mr. Yusof was president between 1965 and 1970, the first years of Singapore’s independence following a short-lived union with neighboring Malaysia, but executive power lay with Lee Kuan Yew, the country’s first prime minister.

The separation of Singapore from Malaysia gave ethnic Malays a clear majority in Malaysia, while ethnic Chinese formed the majority in independent Singapore.

PRESERVING HARMONY
Leaders of both countries, however, recognized that peace and prosperity depended on preserving harmony between the two groups.

But living in a Muslim-dominated neighborhood, with Malaysia and Indonesia next door, Singapore’s leaders have long worried about the risk of conflicted loyalties among Malays.

“You put in a Malay officer who’s very religious and who has family ties in Malaysia in charge of a machine-gun unit, that’s a very tricky business,” the late Lee Kuan Yew was widely quoted as saying in 1999.

For Mr. Lee, whose son, Lee Hsien Loong, is now prime minister, the answer to social cohesion lay in creating a culture of meritocracy, rather than adopting policies of positive discrimination to boost the chances of advancement for Singapore’s Malay and Indian minorities.

Still, a government report published in 2013 found Malays felt they were sometimes discriminated against and had limited prospects in some institutions, such as the armed forces.

Singapore’s economic success and education policies have helped swell the ranks of middle-class Malays, but the last census in 2010 showed they lagged other ethnic groups on socioeconomic measures such as household incomes and home ownership.

Malays, who form just over 13% of Singapore’s 3.9 million citizens and permanent residents, also underperform on measures such as university and secondary school education.

Despite being the establishment candidate, Ms. Halimah wears a hijab, which is banned in state schools and public sector jobs that require uniforms. But she has seldom spoken publicly on the issue and there is little sign of change in official attitudes.

Mr. Khan, the chairman of marine services firm Bourbon Offshore Asia, told Reuters more Malays hold political office, and some are making their way in the corporate world, but “there is still room for improvement.”

The prospect of a Malay president is by itself unlikely to resolve concerns over underrepresentation, but analysts and advocates say it could help foster trust among communities.

Yet the reserved election has also injured some pride.

“It cheapens the credibility of a Malay person that it requires a token election for us to be president,” said Malay comedian and television personality Hirzi Zulkiflie. “Some people intending to run are very capable.” — Reuters

Eagle Cement inks supply deal with EEI

EAGLE CEMENT Corp. forged a supply agreement with Yuchengco-led EEI Corp., riding on the strong pipeline of infrastructure projects throughout the country.

In a statement on Monday, Eagle said the strategic alliance will strengthen the two companies’ existing partnership, as it will expand the EEI projects that will be supplied by the cement manufacturer.

The government is ushering in the “golden age of infrastructure” with a bold P8-trillion “Build, Build, Build” initiative complemented by strong private construction activity.

“This contract is another feather on our cap,” said Eagle Chief Operating Officer and General Manager Manny C. Teng was quoted in the statement as saying.

“EEI is among the biggest players in the infrastructure industry and their confidence in Eagle, as exemplified by this partnership, is testament to the quality of our products and service.”

Eagle is exclusively supplying two landmark EEI projects: the P37.4-billion Metro Manila Skyway Stage 3 Project and the P62.7-billion Metro Rail Transit Line 7 Project.

Both projects are owned by San Miguel Corp., which has Eagle Chairman Ramon S. Ang as its president and chief operating officer.

EEI tapped Eagle to provide its cement requirements ahead of the completion of the latter’s capacity.

“With the excellent experience we’ve had with Eagle Cement, along with the expansion of their capacity, they will be able to provide companies like us with cement that matches the scale and requirements of our projects. Eagle’s cement meets the required strength that we need to be able to build our projects successfully,” EEI Vice-President and Chief Procurement Officer Edwin Constantino said.

Eagle Cement is beefing up its capacity with the completion of a third production line in Bulacan by early 2018, which will add 2 million metric tons (MT) to the firm’s annual capacity. The new line will bring Eagle’s capacity up to 7.1 million metric tons per year.

Construction of its Cebu cement plant will begin in the fourth quarter of 2017, and is slated for completion by 2020. With another 2 million MT in annual capacity, the plant is set to supply the Visayas and Mindanao region.

After the completion of these plants, Eagle will have a total capacity of 9.1 million MT or 230 million cement bags annually. Eagle said this would make it the largest cement firm in the Philippines, in terms of capacity.

Eagle registered a 13% uptick in net income to P2.2 billion in the first half, which the company attributed to higher sales volume despite tight competition and an industrywide decline in prices.

Shares in Eagle added six centavos or 0.4% to close at P15.10 each. — Krista Angela M. Montealegre

Korea is the Philippines Done Correctly

By Rafael Lorenzo G. Conejos

“EXPECTING Korea’s reconstruction is like expecting a rose to come into bloom in a garbage can.” A line from a post Korean War (1948-1953) United Nations report hovers over the Seoul War Museum exhibit. Pictures of a shanty village made of discarded scrap and rinky-dink wooden support by a river instantly made me wonder why the Pasig was being featured in a Korean museum. I quickly found out I wasn’t looking at Manila but actually a picture from 1967 of Cheonggyecheon, a stream which runs across the centre of Seoul. Korea was so poor during the 1960s that people greeted each other not with “Good Morning,” but by asking “Have you had rice today?”

I walked down that very stream after the museum and saw nothing of the stains of hardship but only a tranquil public area reminiscent of New York’s Highline but with colorful lights imbedded into rocks creating a romantic ambience with wild greenery outlining the path. The only clear visible hardship today were awkward couples who didn’t know how to act around each other. The glaring similarities of both our nations recent past (60 years in particular) and yet our vastly different present haunt me with questions. Where did we go wrong? What did they do right? And most importantly, does this mean we aren’t too far away from our own nation’s success?

We are not so different from the Koreans. In fact, it is difficult to tell who loves spam more.

During the Korean War (where the Philippines was proudly one of the first nations to defend the now economic powerhouse Korea is today) food was scarce, and many relied on donations from the US military in order to live day by day, thus the creation of Budae Jijgae (Army Stew). A dish carrying spam, hot dogs, and any scrap of food which could be salvaged and thrown inside a spicy vegetable broth. American processed food is an obsession we share due to the similar hardship we had during World War II, as shown by the fact we have spam for breakfast and add hot dogs into our spaghetti. Just like the Philippines, Korea was compelled to do the bidding of a foreign colonizer (Japan for them and America for us). And both nations were dragged into a great war none of us in particular wanted to fight which resulted in both our capital cities being devastated almost indistinguishably from the other at its conclusion.

A big part of their economic success came not from the construction of cell phones, TVs, and electronics (Samsung, LG) or reliable and affordable cars (Hyundai) but from exported human labor (OFWs).

In 1963, the unemployment rate in Korea was so high that university graduates and the uneducated competed to be selected as miners in West Germany. Choi Hoi-seok, one of these graduates, recounts that one day at the mine he left to take a break and by the time he came back the only remnants of his Korean colleagues were boots sticking out from underneath the pile of rocks due to a cave in. This didn’t deter him from continuing and by doing so, was able to send much needed money back to his impoverished family in Korea. Courage however is no shield from the danger of being stabbed by sharp pieces of coal or being bludgeoned to death by falling rocks. These OFWs provided remittances which eventually lead to the creation of factories and later — the very computer I am using to write this.

And yet while both our nations initially started anew after World War II, Korea was never given a reprieve from violence and division, as they were quickly forced into an internal war between a Communist North and a Democratic South. This war exists to this very day as seen from the Demilitarized Zone and the ever present reality that Seoul could be obliterated by a thermal nuclear bomb by their starving brothers from the North at any given time. The fact that a war which could end all wars is an everyday part of modern life in Korea, albeit now a quiet shadow which people need to ignore day to day in order to live normal lives, is a burden the Philippines never had to go through. Neither did we have to experience a division of the same severity. But these are burdens which Korea continues to face and triumph over every day.

Our country is still heavily reliant on OFW remittances and we are still trying to get even basic infrastructure up and running in our capital.

While we can sit down and play the blame game online and offline today as to why we are where we are, our Korean neighbours continue to excel at what they do best, adapting and being resourceful in the face of political and military disaster. This year alone they peacefully removed a corrupt president, imprisoned the heir to the Samsung empire for bribery, and are deflecting an Intercontinental Ballistic Missile (ICBM) wielding communist North. South Korea shows the world day in and day out that a nation never needs desirable conditions in order to thrive. It makes itself desirable through good leadership and investing in every nation’s biggest asset, its people.

As I bade goodbye to Korea, I am left in awe at the fact that a splintered Korea knows more about being united than a Philippines which is whole yet its people divided in spirit.

Rafael Lorenzo G. Conejos, a lawyer, sits on the Board of Plantation Bay Resort and Spa in Cebu City.

Bombed Manchester concert hall reopens

LONDON – The Manchester music venue where a suicide bomber killed 22 people as they left an Ariana Grande concert in May reopened on Saturday for the first time since the attack.

A benefit concert entitled We Are Manchester raised money for a charitable trust in charge of establishing a permanent memorial in the northern English city.

The victims of the May 22 attack at the Manchester Arena included many young girls, who make up a large part of US singer Grande’s fan base. The youngest, Saffie Roussos, was aged eight.

Parents who had come to pick up their children after the show were also among those killed in the attack carried out by Salman Abedi.

“May’s events will never be forgotten, but they will not stop us, or Mancunian music fans, from coming together to enjoy live music,” James Allen, the venue’s general manager, said in a statement.

The lineup for Saturday’s concert, which was sold out, included Noel Gallagher, formerly of Oasis, one of the most successful bands to emerge from Manchester. – Reuters

DPWH reorganizes panel to review building code

THE Department of Public Works and Highways (DPWH) recently reconstituted the committee in charge of reviewing the National Building Code of the Philippines (NBCP).

In a statement, the DPWH said that it reorganized the National Building Code Review Committee (NBCRC) to strengthen the implementation of the NBCP and its implementing rules and regulations.

The National Building Code (NBC), outlined in Presidential Decree No. 1096, lays out the technical requirements for constructing or renovating buildings and structures.

The provisions of the NBC apply to the design, location, siting, construction, alteration, repair, conversion, use, occupancy, maintenance, moving, demolition of, and addition to public and private buildings and structures, with the exception of traditional indigenous family dwellings.

DPWH Assistant Secretary Gilberto S. Reyes will head the NBCRC.

Other members of the newly reorganized committee include Bureau of Design Director Dante B. Potante, Bureau of Construction Director Walter B. Ocampo, Bureau of Maintenance Director Ernesto S. Gregorio, Jr., Bureau of Research and Standards Director Reynaldo G. Tagundado, Legal Services Director Estrella T. Decena-Zaldivar, Planning Services Director Constante A. Llanes, Jr., UPMO-Buildings Management Cluster Project Director Patrick B. Gatan and NBCP-Board of Consultants Chairman Ernesto S. De Castro.

The NBCRC members will evaluate concerns and recommend courses of action on issues and concerns raised by professional technical organizations.

The NBCRC will be assisted by a technical working group which will initially review and approve the work or proposals to be made by the NBCP-Board of Consultants.

The NBCP-Board of Consultants is composed of representatives from various government offices as well as non-government organizations, such as the Department of Environment and Natural Resources (DENR), Department of the Interior and Local Government (DILG), Department of Health (DoH), Department of Justice (DoJ), Bureau of Fire Protection (BFP), Construction Industry Authority of the Philippines (CIAP), Institute of Electronics Engineers of the Philippines (IECEP), Institute of Integrated Electrical Engineers of the Philippines, Inc. (IIEE), National Master Plumbers Association of the Philippines (NAMPAP), Philippine Association of Building Officials (PABO), Philippine Society of Agricultural Engineers (PSAE), Philippine Institute of Mechanical Engineers (PSME) and Philippine Society of Sanitary Engineers (PSSE).

The consultants will be tasked with identifying the provisions of NBCP that need to be updated or amended. — Patrizia Paola C. Marcelo

How PSEi member stocks performed — September 11, 2017

Here’s a quick glance at how PSEi stocks fared on Monday, September 11, 2017.

Handling your tax assessment: DIY or with a tax agent

It would not come as a surprise if many taxpayers receive tax assessments these days. If they are to stand a chance, it is important for them to have knowledge of their best options to challenge the issues raised by the Bureau of Internal Revenue (BIR). In responding to these assessments, they can either employ the services of a tax agent or manage the assessment on their own — a do-it-yourself (DIY) approach, just as how most millennials are achieving their travel goals by engaging in DIY adventures.

Like other millennials, I am an avid fan of traveling and DIY has been my practice. Most of the time, I travel alone because of two main reasons taxpayers may relate to — cost and experience. 

First, going DIY helps me cut the cost required to reach my destination. In planning my DIY travels, I passionately read travel-related blogs, articles, and reviews. I search for tips that will help me reach my targeted destinations without maxing out, or worse, exceeding my budget. Likewise, in a DIY assessment, you should read tax-related cases, court decisions, and BIR issuances and filter those which can help you in the protest process. On your own, you can draft the so-called “protest letter,” which contains legal and factual support to your tax position. By yourself, you can discuss your responses with the BIR to convey the essence of your arguments.

In DIY travel, research also includes asking relatives and friends for free advice. In a DIY assessment, on the other hand, you have friends, auditors, and colleagues who can give advice for free. Although it is not part of a regular financial auditor’s scope of work, you can ask for their point of view for free as part of their value-adding services. You can ask them what the necessary documents are or how to reconcile the noted discrepancies, among others. Like my travel friends, these financial auditors will gladly share what they know, though they may not claim to be experts in tax assessments. Then, the savings a taxpayer may get from not paying a tax agent can be devoted to other business needs, such as acquiring supplies, new investments, or employee benefits.

Second, DIY is very challenging yet a great learning experience. It needs your utmost diligence, patience, and time. In DIY travel, it is not easy to prepare the itinerary, to haggle with travel operators, or to negotiate with the homestay owners. In a DIY assessment, it takes time to learn the ins and outs of handling a tax assessment, let alone to organize or prepare supporting documents and draft the response letter. Despite the various inputs you gather based on your research, there might come a time when it becomes difficult, especially on where or on how to begin your response to the BIR. It is challenging to put together all your research to come up with a protest letter that will argue the BIR findings. You also have to be patient in constantly inquiring with your BIR examiner in order to set a meeting. If you successfully hack all these challenges, however, there is a deep sense of accomplishment, as signified by the new knowledge and skills acquired in the process. 

Yes, DIY is a great learning experience. It is because it allows us — as travelers or taxpayers — to better immerse ourselves in traveling or tax assessments. Since you are doing all the tasks, you are able to better absorb all the learning and you feel you’ll do better next time.

However, DIY makes us move at a slower pace. Travel allows travelers to explore at their own time and pace; tax assessment does not give taxpayers the luxury of time, because of the strict timeline as specified in tax rules and issuances. 

If you miss a turn while traveling, you just have to go back. If you miss your bus, you just wait for the next one. Besides, it will not cost you that much. In a tax assessment, though, it is costlier to miss something. If you are unable to send your protest letter or submit the required documents in the subpoena on time, you may lose the assessment. This can cost you a lot, which might even exceed the amount that you thought in the first place, was your savings in DIY. So, it is reassuring to have a tax professional you can rely on to ensure compliance with the requirements within the set deadline.

Travel agents help travelers cover many destinations within a short period because they have organized the logistics. They also prepare the itinerary. The same goes with responding to a tax assessment with a tax agent. Tax agents are well-experienced in protesting assessments. A tax agent works with taxpayers to sort through vast amounts of information. Working with a tax agent can save hours of DIY research and hours of thinking where and how to begin writing your protest letter.

With their accumulated experience and being well-versed on the assessment process, tax agents can share legal and factual defenses for assessments mentioned in court decisions, BIR rulings, and BIR issuances that we may have not yet read or researched. Tax agents ask questions which help make an informed decision. They can offer options that we may not have considered.

Tax assessment is a special field in our country’s eccentric tax practice, which requires more than technical knowledge. By handling it DIY, you can save on costs and learn from personal experience. Getting a tax agent’s help could cost you more, as they often go above and beyond to provide you with their advice. Working with tax agents minimizes errors and may result in less hassle; although you might not feel as accomplished had you done it by yourself.

Choosing between going DIY or hiring a tax agent in handling tax assessments is like travel — it all comes down to your budget, appetite for research, and need for a sense of accomplishment. If you decide to pursue a DIY approach, it is important to know whether, at some point, you should seek professional help. We must be able to evaluate when to select either option — to hire a tax agent or to do it yourself — or to select both. It is because, other than obtaining the necessary knowledge about what options are available, we also have to ensure that we reach our desired destination — to successfully challenge the BIR’s tax assessment — on time.

Rey Mark M. Mondragon is a senior with the Tax Advisory and Compliance division of P&A Grant Thornton.

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