Facebook Instagram Linkedin X Youtube
Home Blog Page 12972

Mindanao rail construction due to start in 3rd quarter

CONSTRUCTION of the Mindanao Rail Project (MRP) is expected to start by the third quarter this year.

The Department of Transportation (DoTr) said in a statement that Phase 1, expected to reduce travel time from Davao del Norte to Davao del Sur from 3.5 hours to just 1.3 hours, is targeted for completion by 2021.

Mindanao rail system

Phase 1 which cost P35.26 billion via general appropriations, is a 105-km line and will have eight stations: Tagum, Carmen, Panabo, Mudiang, Davao Terminal, Toril, Sta. Cruz, and Digos.

Phase 1 of MRP forms part of the entire 1,530-km circumferential and spur rail lines that will connect the Davao provinces, Iligan, Cagayan de Oro, General Santos, and Zamboanga.

The DoF said last month that the government plans to tap a $5-million grant from the Asian Development Bank for funding the preparation activities of Phase 1. — Patrizia Paola C. Marcelo

Health dep’t calls for more private investment in affordable medicine, hospitals, digital systems

HEALTH Secretary Francisco T. Duque III on Wednesday asked the business sector to invest in improving health services for Filipinos, particularly in the areas of affordable medicine and the construction of medical facilities.

“I propose this challenge to the business sector to innovate and bridge the existing gaps (in health care) and become a partner with DoH in providing better health outcomes to Filipinos,” he said at a European Chamber of Commerce of the Philippines (ECCP) luncheon in Makati City.

Mr. Duque also proposed investment in medical equipment, electronic health systems, and medical tourism.

The Department of Health (DoH) is currently evaluating eight public-private proposals for its health programs, as well as four unsolicited proposals covering vaccine production, research and development as well as equipment maintenance and radiation therapy for DoH regional hospitals.

“I encourage you, the private sector, to take part of these private-public partnership opportunities,” he said.

Mr. Duque said the department’s focus is on reforming health financing, regulation, service delivery, governance and performance accountability, with the goal of making Filipinos the healthiest in Southeast Asia by 2022, supported by a universal health care system.

Proposed measures for universal health care remained pending in Congress. The House of Representatives approved its version last year while the Senate has been conducting public consultations.

Sen. Joseph Victor G. Ejercito, chair of the Senate committee on health and demography, has committed to passing the proposed measure at the Senate before the end of the year.

Mr. Duque also hoped to increase the resources available to the Philippine Health Insurance Corp. (PhilHeath), with measures including increasing the premiums. — Camille A. Aguinaldo

Inconsistencies in the IAET

The concept of improperly accumulated earnings tax (IAET) has been present in our jurisdiction even prior to the 1939 Tax Code. Although it was momentarily absent from our tax laws from 1986 to 1997 due to its repeal under Executive Order No. 37, IAET was reinstated 12 years after in the 1997 Tax Code. Despite its long-standing presence in our tax system, however, its application and interpretation continues to challenge our tax authorities, as well as our tax courts.

The 10% IAET is imposed on improperly accumulated taxable income of a corporation formed for the purpose of avoiding the income tax with respect to its shareholders, by permitting the earnings and profits of the corporation to accumulate instead of distributing them to the shareholders.

The rationale is that if the earnings and profits were distributed, the shareholders would then be liable for income tax, whereas if there was no distribution, they would incur no tax with respect to the undistributed earnings and profits of the corporation. Thus, IAET is a penalty on the corporation for the improper accumulation of earnings to avoid the payment of dividends tax on the distribution to shareholders. However, if the failure to pay dividends is due to some other causes, such as the use of undistributed earnings and profits for the reasonable needs of the business, such purpose would not generally make the undistributed earnings subject to tax.

As explained by the Supreme Court (SC) (G.R. No. L-26145 dated Feb. 20, 1984), in order to determine whether profits are accumulated for the reasonable needs of the business, the controlling intention of the taxpayer is that which is manifested at the time of accumulation, not subsequently declared intentions which are mere afterthoughts. A speculative and indefinite purpose will not suffice. The mere recognition of a future problem and the discussion of possible and alternative solutions is not sufficient. Definiteness of plan coupled with action taken towards its consummation are essential.

Through Revenue Regulation No. 2-2001, the Bureau of Internal Revenue (BIR) considered the accumulation of earnings up to 100% of the paid-up capital of the corporation as within the “reasonable needs of the business.” Likewise, earnings that are reserved for a justified purpose (e.g. definite corporate expansion, compliance with any loan covenants, earnings reserve subject to legal prohibition against its distribution) were also considered within the purview of “reasonable needs of the business.”

However, under Revenue Memorandum Circular (RMC) No. 35-2011, the BIR restricted the definition of paid-up capital to the amount contributed to the corporation representing the par value of the shares of stock; hence, any additional paid-in capital (APIC) was excluded from paid-up capital. This interpretation is contrary to the position of the Securities and Exchange Commission (SEC) that paid-in capital includes the APIC.

In addition, the RMC altered the formula in determining the improperly accumulated taxable income by including prior year retained earnings.

In a recently decided case of the Court of Tax Appeals (CTA Case No. 9106 dated Jan. 11, 2018), the tax court had the occasion to rule on the propriety of the exclusion of APIC. Applying the RMC, the BIR excluded the APIC in computing the IAET. However, the taxpayer asserted that the BIR has expanded the coverage of IAET by excluding the APIC to the prejudice of all taxpayers.

In deciding on this issue, the CTA relied on the SC definition of capital. According to the SC, the capital subscribed is the total amount of the capital that subscribers or shareholders have agreed to take and pay for, which need not necessarily be, and can be more than, the par value of the shares. In fine, it is the amount that the corporation receives, inclusive of any premiums, in consideration of the original issuance of the shares. Moreover, the CTA also referred to the SEC’s definition of “paid-in capital” which includes the APIC for purposes of determining the distributable retained earnings of the company.

Deciding in favor of the taxpayer, the CTA emphasized that the IAET is in the nature of a penalty on the corporation for the improper accumulation of its earnings, and as a form of deterrent to the avoidance of tax upon shareholders who are supposed to pay dividends tax on the earnings distributed to them by the corporation. Since APIC is not considered earnings/profits of a corporation generated from the normal and continuous operations of the business, the taxpayer may retain the total amount attributable to its APIC.

Note, however, that despite the favorable ruling of the CTA on the APIC, the taxpayer was still held liable for IAET because the tax court upheld the inclusion of prior-year retained earnings in the calculation of IAET. Such inclusion is a complete turnaround from the CTA’s past decision with regard to IAET.

In the previously decided case by the same division (CTA Case No. 8718 dated July 21, 2016), the tax court held that the formula used by the BIR in computing the deficiency IAET is not in accordance with Section 29 of the Tax Code since it included the prior-year retained earnings.

In recalculating the IAET, the CTA adopted the exact formula provided under Section 29(D) of the Tax Code where the “improperly accumulated taxable income” means current year taxable income adjusted by:

1. Income exempt from tax;

2. Income excluded from gross income;

3. Income subject to final tax; and

4. The amount of net operating loss carry-over deducted;

And reduced by the sum of:

5. Dividends actually or constructively paid; and

6. Income tax paid for the taxable year.

Although there are SC decisions which held that the undistributed earnings or profits of prior years are taken into consideration in determining unreasonable accumulation for purposes of IAET, such decisions are based on the 1939 Tax Code and not on the 1997 Tax Code. The main difference between the two versions of IAET is the explicitly provided formula under the 1997 Tax Code.

It has been well settled in our jurisprudence that tax administrators are not allowed to expand or contract the legislative mandate and that the “plain meaning rule” or verba legis principle in statutory construction should be applied such that where the words of a statute are clear, plain and free from ambiguity, it must be given its literal meaning and applied without attempted interpretation.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Archie D. Guevarra is a Senior Consultant at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network.

(02) 845-2728 local 3170

archie.d.guevarra@ph.pwc.com

TNT routs NLEX to keep quarterfinal hopes alive

By Michael Angelo S. Murillo
Senior Reporter

THE TNT KaTropa stayed in contention for a spot in the PBA Philippine Cup after defeating the NLEX Road Warriors, 101-75, in their final game of the elimination round yesterday at the Mall of Asia Arena.

Needing to win in the game to remain in the hunt for the quarterfinals of the season-opening Philippine Basketball Association (PBA) tournament, the KaTropa delivered accordingly in a big way, using a strong run in the first half and just held on the rest of the way to book their fifth win in 11 matches.

TNT initially fell behind 4-0 to begin the contest before getting its engine going, with Troy Rosario and Roger Pogoy leading the charge, to take a 27-16 lead by the end of the first quarter.

The KaTropa would sustain their strong level play in the second canto with contributions coming from all directions. They established their biggest lead of 30 at that point, 53-23, at the 2:37 mark of the period and eventually maintained the same distance, 58-28, by the halftime break.

NLEX tried to chip away on the huge lead of TNT to start the third quarter but the KaTropa did not allow their opponents to gain much ground as they made sure to stay on top of things, even building a 38-point separation, 69-31, four minutes into third canto.

The Road Warriors continued to fight, cutting down their deficit back to 30 points, 80-50, heading into the final 12 minutes of the match.

With victory evident, the KaTropa spent much of the payoff quarter preserving the control they had established.

NLEX trimmed TNT’s lead to 26 points, 90-64, halfway into the fourth quarter but that was the closest it would get back before slumping to the defeat.

Veteran Kelly Williams led the KaTropa with 17 points and 16 rebounds while new TNT player Jericho Cruz also had 17 markers.

Messrs. Rosario and Pogoy finished with 14 and 13 points, respectively.

JR Quiñahan, meanwhile, paced NLEX with 20 points with Kevin Alas adding 14.

“We knew going into this game that we needed a win to have a chance at getting in the playoffs and this is the one thing that we have control over and just need to wait for how the other teams would do. Hopefully by the end of the Friday schedule it will be clearer,” said TNT coach Nash Racela after their win.

At 5-6, the KaTropa at this point still has inside track for at least a playoff for a quarterfinal spot but are still at risk of missing out on the bus altogether if the quotient does not go their way in the event of multiple ties.

Still fighting for their quarterfinal lives along with TNT are the Rain or Shine Elasto Painters (5-4), which had a game later yesterday, Barangay Ginebra San Miguel Kings (5-5), GlobalPort Batang Pier (5-5), Blackwater Elite (5-6) and Phoenix Fuel Masters (4-6).

Final play date for the elimination round is tomorrow, March 2.

UP snaps losing streak with victory over UST

By Michael Angelo S. Murillo
Senior Reporter

THE University of the Philippines (UP) broke from a chain losses yesterday, defeating the University of Santo Tomas (UST) Golden Tigresses in four sets, 33-31, 25-23, 25-16 and 25-12, in their UAAP Season 80 women’s volleyball encounter to get back in the win column.

Losers of their last four matches in the University Athletic Association of the Philippines (UAAP) entering the contest, the Lady Maroons fought their way from the sting of a tough first-set loss to wind up on top of the Tigresses and notch their second victory in six matches with one game left in their first-round card.

Capitalizing on the service errors of the Lady Maroons, the Tigresses raced to a 16-8 advantage in the opening frame.

UP though would eventually find its rhythm, going on a 16-8 run after to level the count at 24-all and extend the set.

The Lady Maroons had every chance to pull the rug from under the Tigresses, in set point six times, but just could not complete the task to fall one set behind.

In the second set the two teams had it cutthroat at the start with UST holding a slim 8-7 lead by the first technical knockout.

With Tots Carlos clicking in her attack and the team picking up its defense, the Lady Maroons overtook their opponents and went first to the second technical break, 16-13.

UST though did not go down quietly as it rallied back to come within one point, 24-23.

But unlike in the opening set, UP would see its cause through with a block from Ariel Estranero to level the score at one set apiece.

The Lady Maroons fell behind early to begin the third frame before making a sprint, led by Isa Molde and Carlos, to go up by four points, 16-12, halfway into the set.

UP then built on the momentum of the turnaround, outscoring UST, 9-4, the rest of the way to go up, 2-1.

With their motor humming, the Lady Maroons did not relent on the pounding to start the fourth set.

They went on to race to an 8-4 advantage, extending it to 16-7 by the second technical timeout.

League leading scorer Sisi Rondina tried to rally the Tigeresses back but they would not get much headway as the Lady Maroons stood firm on their way to the win.

Carlos led UP with 32 big points, 27 off attacks, three blocks and two service aces.

Molde, meanwhile, added 24 points.

For UST it was Rondina who topscored with 23 points with Christine Francisco and Dimdim Pacres adding 12 and 10, respectively.

“UST is an aggressive team and to beat them you have to play defense which I think we did today and why we are talking to you right now,” said UP coach Gody Okumu in the postgame press conference.

“We’re still a growing team and we hope the fans would continue to support us because we need them,” he added.

UP closes its first-round assignment versus the National University Lady Bulldogs on Sunday, March 4, while UST finishes its opening-round run against the Far Eastern University Lady Tamaraws on Saturday, March 3.

LeBron James becoming an old hand at triple doubles

LOS ANGELES — LeBron James became the oldest player in league history to average a triple-double in a calendar month, scoring 31 points on Tuesday in the Cleveland Cavaliers’ 129-123 win over the Brooklyn Nets.

It is the first time in his brilliant 15-year NBA career that the 33-year-old James has averaged a triple-double for a month, a milestone that he doesn’t take for granted.

“It is a long list of so many great players that have come through this league and for you to be the only one in a category it is pretty cool,” James said.

“I take pride in being a triple threat ever since I started playing basketball.

“I never wanted to be labeled as (just) a scorer. I always wanted to be labeled as a basketball player. I get more gratification from assists more than anything. To give my guys great looks is awesome.”

The previous oldest player to average a triple double in a calendar month, containing at least 10 games, was Hall of Famer Wilt Chamberlain in March 1968 at 31 years old.

James had 12 rebounds and 11 assists for his 12th triple-double of the season and 67th of his career. He also reached 8,000 assists and became the first player in league history to reach that milestone, along with 30,000 points and 8,000 rebounds.

James and George Hill nailed two free throws each in the final 16 seconds to clinch the victory. The free throws came just after Rodney Hood’s three-point play with 40 seconds left gave Cleveland a 123-121 lead.

Jarrett Allen’s two free throws gave Brooklyn a 119-117 lead with 78 seconds to play.

Jordan Clarkson drained a shot from beyond the arc to give the Cavaliers the lead but the Nets answered with an Allen Crabbe drive to the basket to give Brooklyn a 121-120 lead.

Hood sank a jump shot and made a free throw that gave Cleveland a two-point lead.

The Cavaliers are doubling down every time they beat Boston. Not only do they get the win but it also helps their draft position.

The Cavaliers own Brooklyn’s top draft pick, acquired in a trade. The Brooklyn has now lost nine of their last 10 games and own the seventh-worst record in the league.

D’Angelo Russell led Brooklyn with 25 points while Caris LeVert scored 18 and DeMarre Carroll had 16. — AFP

PSC officials sit down with NSAs

OFFICIALS and athletes representing 52 national sports associations (NSAs) attended the dialogue set by the Philippine Sports Commission (PSC) yesterday, to discuss budget allocations for each association, as well as changes in the allowance policy for athletes and coaches.

Speaking on behalf of the PSC board, Commissioner Celia Kiram said that “the board is listening. While we deemed the changes reasonable we also know that we need to get the input of the other side.”

PSC Acting Deputy Executive Director for COSECSS, Rachel Dumuk also explained that the changes that made were studied, adding that in the research they did found that our rates were at par, and at times, even higher than the rates set by Malaysia. “The rates set by the board were actually generous. We have to keep in mind that we are working on a limited budget which has to be spread out to 54 NSAs and over 1,000 athletes and coaches.”

There will no longer be a priority athletes program. The highest classification will now be “platinum” covering Olympic and World medalists. This classification is the elite of the elite with only eight national athletes qualifying, headed by Rio Olympics silver medalist Hidilyn Diaz. They will receive P45,000 per month for one Olympic cycle.

There are five other classifications after this, namely the Class A athletes (World silver & bronze and Asian gold medalists, Class B (Asian silver & bronze and SEAG gold medalists), Class C (SEAG silver & bronze and SEA Championship and Cup medalists), training pool B (former medalists), and training pool A (new athletes, non-medalists).

Kiram also briefed the media about preparations for the Batang Pinoy Mindanao Leg in Oroquieta which, after two cancellations last year, will finally push through this month from March 6 to 12. “The Batang Pinoy is their first big sporting event, so Oroquieta is very excited to welcome us there.”

AFC Cup: Global Cebu FC looks to do better moving forward after draw with Bali United

YET to book a win and earn the full three points that go with it in its ongoing AFC Cup campaign, local side Global Cebu FC looks to do far better moving forward, knowing it now has less room to work on if it wants to advance to the next round of the tournament.

Currently at the bottom of Group G in the group stage of the AFC Cup with one point from a loss and a draw in its first two matches, Global needs to deliver in its last four remaining games in the classification round to stay in the hunt for a spot in the knockout stage.

Global was held to a 1-1 draw by Bali United FC in its last game on Tuesday at the Rizal Memorial Football Stadium. Previous to that it lost, 1-0, to FLC Thanh Hoa in an away match in Hanoi on Feb. 10.

Against Bali, Global got off to a good start, beating the visitors to the punch with an early goal care of Curt Dizon at the 11th minute.

Bali though stayed the course despite falling a goal behind and kept on with its attack.

Its efforts paid off at the 74th minute as Ilija Spasojevic leveled the count at 1-1 with a header off a corner.

Bali had a chance to add on to it and claim the win minutes later with a penalty shot but Global goalkeeper Patrick Deyto proved up to the challenge and made the key save before the two teams settled for the draw.

The draw earned the two competing teams a point each for joint third place in Group G, behind leader Yangon United FC (2-0-0) with six points and FLC Thanh Hoa (1-0-1) with three points.

“Tonight, for me, was an excellent effort. We played well, especially Patrick. We were almost there but we could not get one more goal,” said Global coach Marjo Allado in the post-match press conference when asked for his assessment of his team’s performance.

His view was shared by Mr. Deyto, who nonetheless gave Bali credit for sticking to its game plan throughout the match.

“We deserved to win this game, but they just so happened to score also. We have to give credit to Bali, they kept coming at us even if we were leading, 1-0,” said Mr. Deyto, who is also the club’s team captain.

He went on to say that now, more than ever, the team has to bring on the wins to give itself a chance to still vie for the top spot and advance.

“We have to be better prepared, now we really have to win the next few games. We’ll just get as many points as we can in the next games, and hopefully, it will be enough for us to go to the next round,” Mr. Deyto said.

Next for Global is an away match with Yangon United on March 7, a game that Mr. Allado said they have to be at full strength to give them a good chance.

“We need to recover fast before our next match so we will have fresh legs,” he said.

Meanwhile, also held to a 1-1 draw was Ceres-Negros FC by Singapore’s Home United FC in Group F.

The home team was first on the board with Shahril Ishak on the scoring end only to be negated by Ceres’ Manuel Herrera “Super” Lopez (79’) late in the match that eventually forced the draw.

Despite the result, Ceres (1-1-0) remains on top of its group with four points.

Home United (1-1-0) also has four points but surrenders an eight-point lead in goal difference to Ceres — 9-1.

Ceres next plays on March 6 against Shan United FC at the Panaad Park and Football Stadium in Bacolod. — Michael Angelo S. Murillo

David explodes anew for Bataan; Batangas extends winning run

GARY “El Granada” David came up with another explosive performance and the Bataan Defenders-Bai Shipping picked up their second straight victory following an inspiring 96-88 victory over home team Navotas Clutch-Big J Sports in the MPBL-Anta Rajah Cup at the Navotas Sports Complex.

A multiple scoring champion in the PBA, Mr. David preserved one of his best games ever, scoring 25 points on a steady eight-of-nine shooting from the foul line as his aggressiveness on the offensive end sparked the Defenders in notching their second win in six games.

Mr. David and the rest of the Defenders’ rise in the tournament put up by Senator Manny Pacquiao with Kenneth Duremdes serving as commissioner, nearly overshadowed Batangas City’s continued dominance.

The Tanduay-backed Athletics banked on another steady game from Teytey Teodoro, who finished with 24 points in powering his squad to a tough 82-77 victory over the Muntinlupa Cagers-Angelis Resort.

Mr. Teodoro picked up from where he left off in Batangas’ hard-fought overtime victory over the Parañaque Patriots-Gamboa Coffee a few days ago as his baskets propelled the Athletics to their sixth straight win in as many games while also snapping the Cagers’ four-game winning streak.

For the Clutch, it was their second home game loss as they slipped to 3-3 into a tie for fifth to sixth places with the Bulacan Kuyas-Ligo Sardines. Prior to this game, Navotas is coming off a huge come-from-behind victory over the Valenzuela Classic-Yulz.

Mr. David presided on the team’s offense just as expected, but it was the plays of the bruising Arvie Bringas, who finished with 12 points and six rebounds, plus the intangibles he provided, which helped the Defenders in picking up another win.

For Bataan coach Kerwin McCoy, seeing the team winning begins with the acceptance of the roles of everyone.

“One win or two can change the complexion of our campaign. Hopefully, the winning culture could come in,” said Mr. McCoy, a former star player in San Beda in the NCAA. “With this win, I’m sure we’re now ready to face the big boys in the league. Our bench players are now beginning to step up. They’re getting the confidence and our rotation is getting better, which is good.” — Rey Joble

New ways to attack

Back in the ’70s almost every other game was a Sicilian, and out of that nearly half is a Najdorf. Nowadays there are very few Sicilian Najdorf devotees. So what happened to all those slashing attacks and dashing players? Nobody likes to win or die trying anymore? Well, the explosion of the information age has a lot to do with that. Too much theory nowadays in the Sicilian and no one wants to have to memorize hundreds of lines and variations in order to survive the opening phase.

Wesley So recently wrote a Chessbase DVD on My Secret Weapon 1.b3 and there is a lot to learn from this (to order go to www.chessbase.com and click “shop”).

As pointed out in the Chessbase Web site (www.chessbase.com), 1.b3 has lately been quite potent. Here are some statistics from its leading promoters (no distinction is made between standard, rapid and blitz games:

Hikaru Nakamura — won 33 drew 14 lost 5

Baadur Jobava — won 35 drew 18 lost 14

Richard Rapport — won 16 drew 11 lost 14

Really? How potent can such a move be? Didn’t Bent Larsen lose a brevity to Boris Spassky in the 1970 “Match of the Century” with precisely this move?

Larsen, Bent — Spassky, Boris Vasilievich [A01]
Match/Team URS-World 20,5–19,5 Belgrade (2.1), 29.03.1970

1.b3 e5 2.Bb2 Nc6 3.c4 Nf6 4.Nf3 e4 5.Nd4 Bc5 6.Nxc6 dxc6 7.e3 Bf5 8.Qc2 Qe7 9.Be2 0–0–0 10.f4?

The start of White’s troubles.

10…Ng4! 11.g3?!

Already Larsen is experiencing development problems: 11.0–0? is refuted by 11…Rxd2! 12.Nxd2 Nxe3 and wins.

Removing the knight with 11.Bxg4? Qh4+ 12.g3 Qxg4 leaves too many holes in White’s king position. We can even go so far as to say that Black is winning here as well.

11…h5 12.h3 h4! 13.hxg4 hxg3 14.Rg1 Rh1!! 15.Rxh1 g2 16.Rf1

[16.Rg1 Qh4+ 17.Kd1 Qh1 is hopeless]

16…Qh4+ 17.Kd1 gxf1Q+ 0–1

The end will be something like this: 17…gxf1Q+ 18.Bxf1 Bxg4+ 19.Be2 Qh1# checkmate.

Yes, this game is listed as no. 59 in The World’s Greatest Chess Games by Burgess, Nunn and Emms, and it might be a major reason why 1.b3 didn’t catch on earlier.

But let’s think about it. The secret of 1.b3 is that it is really an attacking move directed against Black’s kingside. The follow-up will be to establish a knight on e5 supported either b6 d2-d4 or f2-f4. Once it is there the attack can commence.

Nimzowitsch, Aron — Saemisch, Friedrich [A06]
Karlsbad–04 International Masters (15), 18.08.1929

This game was played in the great 1929 Karlsbad International Tournament, a huge 21-round event in the Czech spa which is today known as Karlovy Vary. This tournament is also Nimzowitsch’s greatest tournament achievement, scoring 15/21 (10 wins 10 draws and 1 loss), half a point ahead of second-placers Jose Raul Capablanca and Rudolf Spoielmann. Another legend, the great Akiba Rubinstein was 4th. Nimzowitsch’s prize money, 20,000 Crowns, was at that time enough to buy a house!

1.b3 d5 2.Bb2 c5 3.e3 Nc6 4.Bb5

Already fighting for control of e5.

4…Bd7 5.Nf3 Qc7 6.0–0 Nf6 7.d3 e6 8.Nbd2 Be7 9.Bxc6 Bxc6 10.Ne5 0–0 11.f4

People who play the Bird’s Defense are familiar with this formation. White’s queen and rook will soon be taking action in the kingside.

11…Be8 12.Rf3 Nd7 13.Rg3 g6 14.Qg4 Bf6 15.Ndf3 Bg7 16.Rh3

Already threatening 17.Rxh7! Kxh7 18.Qh4+ Kg8 19.Nxd7 followed by 10.Ng5.

16…f5?

Only move is 16…Nf6.

17.Qh4 Nf6 18.Ng5 h5 19.Nxe6 Qe7 20.Nxg7 Qxg7 21.Rg3 Ng4 22.Qg5 Nxe5 23.Bxe5 Qh7 24.c4 Bf7 25.Qxf5 dxc4 26.bxc4 Rad8 27.d4 cxd4 28.exd4 1–0

Another virtue of 1.b3 is that it allows you to castle queenside quickly.

Jobava, Baadur (2690) — Almasi, Zoltan (2682) [A01]
Wch Blitz Riyadh (5), 29.12.2017

This game was played in the World Blitz Chess Championship in Riyadh last December 2017.

1.b3 e5 2.Bb2 d6 3.e3 g6 4.d4 Nd7 5.dxe5 dxe5 6.Nc3 Bg7 7.Qe2 Ngf6 8.0–0–0 0–0 9.g4 c6 10.g5 Nh5?!

A mistake. Better is 10…Nd5 11.h4 (11.Nxd5 cxd5 12.Rxd5 Qxg5 13.Nf3 Qe7 14.e4 is ok for Black) 11…Nxc3 12.Bxc3 Qe7 13.h5 White has the initiative but Black has his chances too.

11.Bh3 Qe7 12.Bg4 Nc5 13.Bxh5 gxh5 14.Qxh5 a5 15.Nge2 a4 16.Ng3 axb3 17.axb3 e4 <D>

Position after 17…e4

18.Rd4! Ne6

[18…Bxd4 19.exd4 Na6 (so as not to allow Nf5) 20.Ncxe4 White’s attack is winning]

19.Nf5 Qxg5 20.Qxg5 Nxg5 21.Nxg7 Kxg7 22.Nxe4 Nxe4 23.Rg1+ 1–0

You can also go into one of those weird move order tricks. For example if you play bullet (1-minute) games in the internet chess servers, you might meet this sequence a lot:

1.e3 d5 2.c4 dxc4 3.Bxc4 Nc6 4.a3 e5 5.b4 a6 6.Bb2 Bd6 7.Qc2 Nge7 8.Nc3 0–0 9.Nf3 Bf5 10.Qb3 Bg6 11.h4

And now White’s attack will soon be full-blown.

Or you can do a double fianchetto, keep as many pieces as possible on the board and wait to strike.

Jobava, Baadur (2690) — Ponomariov, Ruslan (2694) [E17]
Wch Blitz Riyadh (3), 29.12.2017

1.b3 Nf6 2.Bb2 e6 3.g3 d5 4.Bg2 Be7 5.Nf3 0–0 6.c4 b6 7.cxd5 exd5 8.0–0 Bb7 9.d4 Na6 10.Nbd2 c5 11.Ne5

White’s idea is to bring his other knight to f5. For example 11…Bd6 12.Ndc4!? Bc7 13.Ne3 Re8 14.Nf5 Bc8 15.Qb1 and the queen gets over to the kingside quickly.

11…Nc7

On the spot. See next note.

12.Ndf3

It is now problematic to go 12.Ndc4 because of 12…cxd4 13.Qxd4 Ne6 14.Qd1 Bc5.

12…Ne6 13.Bh3 Ne4

It turns out that Jobava has a hidden tactical point to his Bh3.

14.Nxf7! Kxf7 15.Ne5+ Kf6 16.dxc5

The bishop on b2 comes to life.

16…d4 17.c6 Kxe5 18.cxb7 Rb8 19.e3 Kd6 20.Bxd4 N6g5 21.Bxb6+ 1–0

The former FIDE World Champion Ruslan Ponomariov has not been playing too much lately but even then this might be his worst loss ever.

Or sometimes the long diagonal will allow you to make magic.

Jobava, Baadur (2687) — Yu, Yangyi (2744) [A01]
FIDE World Cup 2017 Tbilisi (2.5), 08.09.2017

The match between Jobava and Yu Yangyi in the 2nd round of the 2017 FIDE World Cup held in Tbilisi was an extremely tense affair. The two classical games were drawn, as were the first two rapid games. Game 5 of the match was where Jobava finally broke through with a great attacking effort.

1.b3 d5 2.Bb2 Nf6 3.e3 g6 4.c4 dxc4 5.Bxc4

Take note of White’s formation. Do you need any more convincing that 1.b3 is an attacking line?

5…Bg7 6.Nf3 0–0 7.0–0 c5 8.Be2 b6 9.d3 Bb7 10.Nbd2 Nc6 11.a3 Nd5 12.Bxg7 Kxg7 13.Qc2 Qd7 14.Qb2+ f6 15.Rfd1 Rfd8 16.Rac1 Rac8 17.h3 e5 18.Ne4 Qe7 19.Re1 Rd7 20.Bf1 Qd8 21.Rcd1 Nde7 22.b4 cxb4 23.axb4 Nf5 24.Rc1 Qe7 25.b5 Na5 26.Rxc8 Bxc8 27.d4 Bb7?

Yu Yangyi should have simply continued 27…exd4 28.exd4 Qd8. He didn’t realize how powerful the long diagonal had become.

28.Nxf6! Kxf6

[28…Qxf6 29.dxe5 Qe6 30.Ng5 wins]

29.dxe5+ Kf7 30.e6+! Kxe6

[30…Qxe6 31.Ng5+]

31.e4 Ng7 32.Qa2+ Kd6 33.Rc1!

Cutting off the Black king’s retreat and now threatening the murderous e4–e5+.

33…Bxe4 34.Qd2+ Ke6 35.Ng5+ Kf5 36.g4+ Kf6 37.Nxe4+ Qxe4 38.Qxd7 Ne6 39.Bg2 Qd4 40.Qxh7 Nf4 41.Qh8+ Ke6 42.Re1+ 1–0

Black’s forces have been completely routed.

You should try 1.b3 and see if it suits you. GM Wesley So in his DVD shows you how to attack with it, the various opening setups that you can strive for and how to maximize your chances. As I usually say when there is a great opportunity for our readers, you should also beg, borrow or steal, but get Wesley’s DVD on his secret weapon 1.b3.

 

Bobby Ang is a founding member of the National Chess Federation of the Philippines 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

James is the Cavs

Considering how yesterday’s match developed, it’s clear that the Cavaliers are still a work in progress. Facing the lowly Nets — who had hitherto lost eight of the last nine games sandwiching the All-Star break — at home, they found themselves in a dogfight and needing some breaks in the crunch to eke out a much-needed victory. For all their supposed improvements on defense, they allowed their otherwise-overmatched opponents to shoot 53.7% from the field and actually take the lead with under a minute left to play. Had there been a little more time on the game clock, the outcome may well have been different.

Parenthetically, the Cavaliers needed yet another outstanding showing from All-World LeBron James to prevail for the fifth time in seven outings since pulling the trigger on a stunning trade deal that all but rebooted their roster. Not that he went above and beyond his usual exertions; in finishing the set-to with a triple-double, he ensured that he would average the same for the entire month of February. It’s no small achievement given his advancing age and increased wear and tear. If anything, it’s telling that he accomplished the feat for the first time in his 15-year career.

Needless to say, James is the Cavaliers’ engine. In light of his myriad contributions on and off the court, it isn’t even much of an embellishment to argue that he is the Cavaliers, period. They go where he goes, and it’s to their benefit that he’s extremely engaged of late. Since being informed that personnel changes were to be made early last month, he has been on a tear. Conventional wisdom doesn’t have him as the front-runner for Most Valuable Player honors, but no matter. He remains the National Basketball Association’s best of the best. It’s why speculation is already rampant on where he will be plying his trade next season, never mind that the current one is still to be finished. And it’s why the requisite wooing — the three Pro-Sixers billboards along Interstate 480 in Cleveland included — is already under way.

In the meantime, James is focused on keeping his streak of Finals appearances since 2011 alive. Unless injury woes befall the Warriors or Rockets, he isn’t likely to claim the Larry O’Brien Trophy, but darned if he won’t try. If nothing else, he’s enjoying himself anew, confident that the Cavaliers are getting better contest by contest.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.

Peso, other Asian currencies retreat as Fed chief’s remarks support dollar

THE PESO and most other emerging Asian currencies fell on Wednesday, while the dollar held firm near a three-week high after Federal Reserve Chair Jerome Powell struck a hawkish tone in debut Congressional testimony.

In his first public appearance as head of the US central bank, Powell vowed to prevent the economy from overheating while sticking with a plan to gradually raise interest rates.

The dollar index was steady at 90.40, after hitting a high near 90.50 on Tuesday, its strongest level in almost three weeks.

The Fed is expected to approve its first rate increase of 2018 at its next policy meeting in March, when it will also provide updated economic projections.

“The tone of Chair Powell’s testimony suggests that on the whole, the Fed policy isn’t about to shift abruptly under his leadership, and that the pace of gradual rate hikes will continue to be the mainstay of the Fed narrative,” said Stephen Innes, head of trading for Asia Pacific at Oanda.

Among Asian currencies, South Korea’s won was the biggest drag, falling as much as one percent, marking its biggest intraday percentage loss in more than three weeks.

The peso weakened for the second straight day on Wednesday, giving up 7 centavos to close P52.10 to the greenback against its P52.03-per-dollar finish on Tuesday. The Philippine currency opened the day retreating by 12 centavos to P52.15 and traded within a weaker 51.99-52.18 range compared to Tuesday’s 51.95-52.07 band.

The Malaysian ringgit slipped as much as 0.5% to its lowest in two weeks, while the Indonesian rupiah and the Indian rupee both lost 0.3%.

The Thai baht slid as much as 0.5%, while the Singapore dollar — like the Philippine peso — inched down slightly.

The Chinese yuan lost 0.2%.

“I think the higher interest rate profile triggers ‘risk-off’ in equities, and higher bond yields in US dent regional bond sentiment — both negative for local currencies,” Oanda’s Mr. Innes said.

Taiwan’s financial markets were closed on Wednesday for Peace Memorial Day.

The Korean won fell sharply against the US dollar on Wednesday, hit by Mr. Powell’s comments that revived concerns of faster-than-expected US rate rises. The won was quoted at 1,080.1 per dollar on the onshore settlement platform, 0.81% weaker than its previous close at 1,071.3.’

China’s yuan weakened against the US dollar on Wednesday, reflecting the greenback’s gathering gained support from Powell’s hawkish tone. China manufacturing growth in February dropped to the lowest in more than one-and-a-half years, raising concerns of a sharper-than-expected slowdown in the economy this year as regulators tighten the screws on financial risks.

“Faster US interest rate normalisation poses the greatest challenge to regional currency sentiment,” Mr. Innes said, “but to rub salt into the wounds, China’s PMI dropped the most in six years.”

The Chinese currency was on course to show a fall over February, its first month of losses since September. — report mainly from Reuters

1...12,97112,97212,973...14,239Page 12,972 of 14,239
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube