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Cityland says Congressman Villanueva resigned as independent director

Listed property developer Cityland Development Corp. (CDC) on Wednesday announced the resignation of Congressman Eduardo C. Villanueva as independent director, citing personal reasons.

In a disclosure to the stock exchange, the company said its board accepted and approved Mr. Villanueva’s resignation, effective Dec. 10.

CDC also said the submission of his Securities and Exchange Commission (SEC) Form 23-B has been discontinued.

Mr. Villanueva is a lawmaker and representative of the Citizens’ Battle Against Corruption (CIBAC) Party-list.

The company likewise announced the resignation of Hazel Anne C. Paule as head of internal audit, effective Dec. 31, also due to personal reasons.

She will be replaced by Rudy Go, who will assume the role of senior vice-president and head of internal audit effective Jan. 1, 2026.

CDC also reappointed Emma A. Choa as executive vice-president and chief operating officer and Melita L. Tan as vice-president and treasurer.

The developer focuses on acquiring and developing land for residential, office, commercial, institutional, and industrial use.

Its projects include the 50-story CityNorth Tower condominium in Quezon City and the 24-story Pioneer Heights 1 condominium in Mandaluyong City.

CDC shares closed down 1.85% or one centavo at P0.53 on Wednesday. — Beatriz Marie D. Cruz

BPI taps Savers Depot as agency banking partner

BANK of the Philippine Islands has opened a “prime phygital” branch in Davao City.

BANK of the Philippine Islands (BPI) has tapped retail chain Savers Depot to help expand its presence in Visayas and Mindanao via agency banking, offering its products and services at the latter’s stores.

Savers Depot will be BPI’s first partner in the do-it-yourself (DIY) retail store category to offer the full range of BPI Partner Store services under its Agency Banking initiative, including product onboarding, deposits, with-drawals, cash-outs, and the BPI OneQR scan and pay payment solution.

“This will allow customers to enjoy seamless banking experiences while doing their usual store visits,” BPI said in a statement.

“This partnership reflects BPI’s commitment to financial inclusion, community development, and customer convenience by leveraging trusted establishments to deliver secure and seamless banking services.”

Savers Depot branches in Lapu-Lapu and Ormoc are already offering BPI’s products and services in-store. Five more stores are expected to follow suit before yearend to bring the total to seven locations.

“This initiative means a lot to us. For years, our goal at Savers Depot has been simple: to serve, to build value. We understand that not everyone has easy access to a bank branch or an ATM (automated teller machine), especially in busy or remote areas. By bridging that gap, we’re helping make financial transactions more accessible, more convenient, and more personal. That’s something we can all be proud of,” Savers Depot Chief Executive Officer Kendrick Sia Sulay said.

Savers Depot is the bank’s 32nd partner store for its “May BPI Dito” agency banking initiative, which aims to make financial services more accessible.

BPI’s attributable net income inched up by 0.6% to P17.526 billion in the third quarter amid lower trading gains.

This brought its nine-month profit to P50.48 billion, up by 5.21% from the same period last year.

BPI’s shares went down by P1.30 or 1.13% to close at P113.70 apiece on Wednesday. — A.M.C. Sy

How PSEi member stocks performed — December 10, 2025

Here’s a quick glance at how PSEi stocks fared on Wednesday, December 10, 2025.

Breaking down LoA controversies: Lessons for businesses

BW FILE PHOTO

As 2025 draws to a close, taxpayers are looking forward to a stabler and more predictable tax audit environment following the Bureau of Internal Revenue’s (BIR) Revenue Memorandum Circular (RMC) No. 107-2025. The circular suspended the issuance of Letters of Authority (LoAs) and Mission Orders (MOs), as well as the examination of taxpayer records, following numerous complaints regarding irregularities and inconsistencies in the tax audit process. While the BIR typically suspends audits during the holiday season, the RMC stands out for starting the suspension earlier and extending it until the Commissioner formally lifts it.

The RMC also underscored a lingering concern among taxpayers: the issuance and handling of LoAs and tax assessments, being criticized by some as leading to costly disputes and prolonged uncertainty for businesses.

By itself, an LoA formally initiates a tax investigation and authorizes BIR officers to review a taxpayer’s records. Its issuance must strictly comply with the Tax Code and BIR regulations. Failure to do so ren-ders assessments void, as affirmed by jurisprudence and Court of Tax Appeals (CTA) rulings.

Here are recent court decisions from the recent years that reveal systemic challenges regarding the proper issuance of LOAs that businesses should take note of:

TAX INVESTIGATIONS MAY ONLY BE CONDUCTED BY AUTHORIZED REPRESENTATIVES INDICATED IN THE LOA
In multiple 2025 CTA rulings, the Court invalidated BIR assessments for lack of proper LoA. In March, the CTA canceled the Warrant of Distraint and/or Levy along with the Assessment Notices because the reassigned Revenue Officer acted under a Memorandum of Assignment, without the authority of an LoA. Similarly, the tax court voided assessments where the revenue officers solely relied on a Memorandum of Assignment, with the LoA issued belatedly two years after the assessment notices were issued. In one other case, the Court struck down all Assessment Notices as the recommending Group Supervisor was not named in the LoA.

In these cases, the CTA cited a 2021 Supreme Court ruling which held that substituting revenue officers named in an LoA without issuing a separate or amended LoA: (i) violates taxpayers’ due process rights; (ii) usurps the CIR’s statutory au-thority to authorize audits; and (iii) breaches BIR rules, particularly Revenue Memorandum Order (RMO) No. 43-90.

ASSESSMENTS BASED ON LETTER NOTICES ARE NOT VALID
The CTA likewise held in a 2024 case that Assessment Notices based on Letter Notices (LN), which were not converted to LoAs, are void. In its decision, the Court cited a Supreme Court case that differentiated LNs from LoAs. An LoA addressed to a revenue officer is specifically required under tax law before an examination of a taxpayer may be conducted. On the other hand, an LN is not specifically provided under the law and is only issued for the purpose of notifying the taxpayer that a discrepancy was found based on the BIR’s RELIEF System. Due process demands, as recognized under RMO No. 32-2005, that after an LN has served its purpose, the revenue officer should have properly secured an LoA before proceeding with the further examination and assessment of the petitioner.

LOAS MUST BE PROPERLY SERVED
In another CTA ruling, the Court voided the Formal Letter of Demand, Assessment Notices, and Warrant of Garnishment because the LoA was improperly served. The Revenue Officer admitted resorting to substituted service by delivering the LoA to a barangay traffic enforcer after the taxpayer’s employees refused to receive it. The Court held that this violated prescribed procedures on the service of LoAs.

Under RMO No. 9-2015 and Revenue Regulations (RR) No. 12-99, as amended by RR No. 18-2013, LoAs must be served personally, by delivering a copy thereof to the party at his registered or known address or wherever he may be found. If the party is not present at the registered or known address or refuses to accept the notice, substituted service may be conducted. Substituted service entails leaving the LoA with a clerk or person in charge at the registered or known business address; or a responsible adult at the taxpayer’s residence. If there is no one available, the revenue officers concerned may bring a barangay official and two disinterested witnesses to the address so that they may per-sonally observe and attest to such absence. The notice (including the LoA) may then be provided to the said barangay official. Such facts shall be contained in the bottom portion of the notice, as well as the names, official positions, and signatures of the witnesses. Lastly, service by registered mail to the registered address or known address can also be done with instructions to return if undelivered within 10 days.

Based on the above rules, the Court found the LoA invalid as it was improperly served on an unauthorized person.

LOAS COVERING TWO TAXABLE YEARS ARE INVALID
In another 2024 CTA case, the Court ruled that an LoA covering two taxable years is void. It cited a Supreme Court case which held that under RMO No. 43-90, an LoA should cover a period not exceeding one taxable year. If the audit of a taxpayer includes more than one taxable period, the other periods or years must be specifically indicated in the LoA.

These CTA rulings reaffirm several key principles: (1) LoAs must be issued to carry out tax investigations; (2) only the revenue officers authorized under an LoA must conduct tax audits; (3) reassignment of revenue officers requires a new LoA; (4) each taxable year needs a separate LoA; and (5) proper service of an LoA is crucial. For businesses, these decisions highlight the importance of monitoring audit procedures and asserting their rights when due process is compro-mised.

The recent CTA decisions serve as a wake-up call for both the BIR and taxpayers. Strict adherence to LoA rules is not just a legal requirement but a cornerstone of fair tax administration. While RMC No. 107-2025 temporarily halted audits, systemic reforms are needed to restore confidence in the tax administration.

 

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.

 

Nestine P Buisan is a senior manager at the Tax Services department of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728
nestine.p.buisan@pwc.com

NAIA operator sets July date for terminal reassignments

PHILSTAR FILE PHOTO

NEW NAIA Infra Corp. (NNIC), the operator of the Ninoy Aquino International Airport (NAIA), said terminal reassignments at the main gateway will be implemented by July, coinciding with the expected opening of Terminal 4.

“Terminal reassignments will be by July, the expected (completion of) Terminal 4 will trigger it,” NNIC Adviser Cesar M. Chiong told BusinessWorld on the sidelines of a committee hearing on Wednesday.

The plan calls for terminals 1 and 3 to continue serving international passengers, with low-cost carriers taking Terminal 1 and full-service airlines assigned to Terminal 3, Mr. Chiong said.

Terminals 2, 4, and the proposed Terminal 5 will be reserved for domestic operations, which account for the majority of NAIA’s passenger traffic, he said.

For the nine months to September, passenger volume at NAIA rose 3.96% to 38.86 million, according to the Manila International Airport Authority (MIAA).

It said NAIA domestic passenger volume for the first nine months rose to 20.75 million, up 3.29% from a year earlier. International passenger volume rose 4.74% to 18.11 million.

NNIC said in April that the construction of the proposed Terminal 5 on the site of the former Philippine Village Hotel will take about two years.

NNIC won in 2024 the P170.6-billion contract to operate, maintain, and upgrade NAIA. The government hopes to earn P900 billion from the project, equivalent to P36 billion per year. This projection compares with the P1.17 billion aver-age annually remitted by the MIAA over the 13 years ending 2023, according to the Department of Transportation.

NNIC’s plan for NAIA includes four years of initial works. Mandatory works will take place within five years, and Civil Aviation Authority of the Philippines (CAAP) works taking place within six years.

The initial works phase for NAIA includes rehabilitating and enhancing existing facilities, including road improvements, terminal expansion, and new parking. — Ashley Erika O. Jose

Biz chambers call for power to be VAT-exempt

ROBERT LINDER-UNSPLASH

THE exemption of electricity from value-added tax (VAT) will help ease the burden on consumers and improve Philippine competitiveness, business groups said.

“Electricity is a basic and indispensable input affecting households, small and large enterprises, and key industries,” the Philippine Chamber of Commerce and Industry (PCCI) said in a statement on Wednesday.

“Exempting electricity from VAT would provide immediate relief to consumers,” it added.

In particular, the PCCI, with the Philippine Exporters Confederation, Inc., expressed support for House Bill No. 6740.

Written by Trade Union Congress of the Philippines Rep. Raymond Democrito C. Mendoza, the bill seeks to exempt electricity sales from VAT.

“This is not only an economic measure; it is a social protection that safeguards workers and families,” he said.

“The benefits of cheaper power for both small entrepreneurs and major industries to grow, attract more investment, and generate decent employment for our people do not merely offset but far outweigh the cost to the gov-ernment,” he added.

PCCI President Enunina V. Mangio said that high power costs remain a barrier to competitiveness, especially in the manufacturing sector.

“Removing VAT on electricity would reduce operating costs, helping factories expand production, attract new investments, and increase the sector’s contribution to gross domestic product and job creation,” she said.

“If we want to attract investors and grow our industrial base, we must address power costs head-on … Removing VAT on electricity is a concrete step toward making the Philippines more competitive,” she added.

PCCI Chairman George T. Barcelon said lower power costs could also support the creation of new jobs.

“With more affordable power, industries can scale up operations, while micro, small and medium enterprises can better manage rising expenses and sustain employment,” he said.

The groups also noted that lower power costs would help attract energy-intensive projects in data centers, advanced manufacturing, and digital infrastructure.

“The proposed VAT exemption should be viewed not as a loss in revenue, but as a strategic investment — one that will yield returns through stronger economic activity, increased business confidence, and broader tax bases in the long run,” they said.

“By reducing the cost of electricity, the government empowers industry to grow, enhances productivity, and creates a more dynamic and resilient economy,” they added. — Justine Irish D. Tabile

Maharlika holds P71B in investable capital

MAHARLIKA Investment Corp. (MIC) said it holds about P71 billion in deployable capital for future investments, including potential stakes in companies preparing to go public.

“We have about P71 billion available for deployment still,” MIC Vice-President for Investments Kheed Ng told BusinessWorld via Viber on Dec. 8.

The sovereign wealth fund is set to receive another P50 billion from the government in the next few months, he said.

State-run Land Bank of the Philippines and Development Bank of the Philippines invested a combined P75 billion in Maharlika earlier this year.

Mr. Ng also said the MIC has reviewed opportunities in water and healthcare for initial public offering (IPO) investments, but added, “due diligence will take more time.”

“We looked at a few. One was in the healthcare space, one was in the water space. But again, it was a bit too late for us in the process to enter because even if we’re brought in early on in the IPO process, there needs to be an alignment with management,” he said separately by phone.

Mr. Ng did not disclose how much Maharlika has earmarked for IPO investments.

“I would say that IPOs for us are more ad hoc. Our business is really private equity. So if we’re going to look at a public company, as I mentioned before, it’s really important that there’s a strategic angle for us to be there,” he said.

MIC remains focused on energy, agriculture, mining, infrastructure, social infrastructure, and climate investments, he said.

In January, the MIC signed a deal to acquire a 20% stake in Synergy Grid & Development Phils., Inc. for P19.7 billion, or about P15 per preferred share, giving it a “foothold” in National Grid Corp. of the Philippines, the country’s sole grid operator.

Regarding investing in public companies, he said some of the options include “to provide primary capital to fund future projects or (if) a big shareholder wants to sell,” he said.

“There needs to be some sort of alignment in the sense of governance and the level of detail of our typical due diligence process, which includes the full suite of financial, reputational, economic and legal due diligence,” Mr. Ng added.

One of MIC’s latest initiatives is a partnership with the National Electrification Administration, the provincial government of Palawan, and Palawan Electric Cooperative, Inc. to help improve the province’s power distribution network.

Last year, the MIC posted earnings of P2.682 billion, up from P154.3 million a year earlier. — Aubrey Rose A. Inosante

Deficit in agricultural trade narrows 15.1% in Oct. after rice import freeze

PHILSTAR FILE PHOTO

THE deficit in the agricultural goods trade narrowed 15.1% in October to $932.97 million, according to preliminary data from the Philippine Statistics Authority (PSA).

The decline in the agricultural trade deficit reverses the 17.1% expansion recorded last year.

Agricultural exports in October rose 0.6% year on year to $755.58 million, accounting for 10.2% of total exports. As a share of the $2.44 billion in two-way trade in farm products, exports accounted for 30.91%.

Imports of agricultural commodities in October dipped 8.7% year on year to $1.69 billion, accounting for 15% of overall imports.

Two-way agricultural trade in October declined 6% year on year.

According to an analyst, the contraction in the trade deficit can be attributed to the ban on rice imports.

“The biggest contributor to the decline in imports is rice due to the temporary import ban to possibly increase farmgate prices of palay (unmilled rice),” Danilo V. Fausto, president of the Philippine Cham-ber of Agriculture and Food, Inc., told BusinessWorld via Viber.

Imports of cereals, which include rice, wheat and corn, declined 45.76% from $536.31 million in October last year. Cereals accounted for the largest share of agricultural imports in October, totaling $290.92 million or 17.2%.

Agricultural exports are expected to rise again in 2026 once the Philippines resumes rice imports starting January.

The PSA said the country’s top export commodities during the period were edible fruit and nuts, peel of citrus fruit or melons, valued at $237.97 million, and accounting for 31.5% of agricultural exports.

Agricultural shipments to members of the Association of Southeast Asian Nations (ASEAN) in October hit $77.79 million, with top buyer Malaysia accounting for $31.52 million or 40.5% of the total.

Exports to the Netherlands, the Philippines’ top destination for agricultural commodities in the European Union (EU), amounted to $160.71 million or 51.3% of Philippine farm exports to the region.

Indonesia was still the leading supplier of agricultural products to the Philippines within ASEAN, accounting for $164.65 million or 29.6% of total imports from the region.

The top agricultural goods imported from ASEAN included animal, vegetable, or microbial fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes.

Within the European Union (EU), Spain was the Philippines’ top supplier of agricultural commodities, with imports valued at $32.40 million, accounting for 23.1% of agricultural imports from the bloc.

The top agricultural goods imported from the EU included meat and edible meat offal. — Vonn Andrei E. Villamiel

ASEAN chairmanship to help PHL make case for investment — BCCP

ASEAN.ORG

THE British Chamber of Commerce Philippines (BCCP) said the ASEAN chairmanship and key reforms will help the Philippines amplify its case as a key investment destination.

“I think that from an optimistic point of view, the Philippines being chair of ASEAN is a very good move for you if it is done properly and supported well,” BCCP Executive Chair Chris Nelson said in a briefing on Wednesday.

“I think the country needs to leverage this very much because I think it is a very opportune time,” he added. “Being ASEAN chair gives the Philippines a lot of opportunities to highlight key areas.”

He said the Philippines is currently competing with other countries for foreign direct investment (FDI), adding to the urgency of passing key legislation, (entrench) digital payments, e-governance, and do more promotion,” he added.

He said that the BCCP is looking in particular at the passage of the Cybersecurity Act, the Digital Payments Act, and the Blue Economy Act.

“The UK is already interested in supporting, as you have seen through the UK-Philippines Joint Economic and Trade Committee, infrastructure, renewable energy, and agriculture,” he said.

“There are a lot of good opportunities. Of course, we need to continue to work harder and promote and also look at the challenges … But I think FDI between the two countries can grow,” he added.

Meanwhile, he said the Philippines’ planned accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) can help boost trade between the Philippines and the UK.

Last month, Trade Undersecretary Allan B. Gepty said that the members of the CPTPP are set to tackle the Philippines’ proposed accession next year.

According to Mr. Nelson, the UK is the fourth biggest foreign investor in economic zones regulated by the Philippine Economic Zone Authority.

The Philippines is the UK’s 59th largest trading partner. — Justine Irish D. Tabile

Wholesale rice prices down, corn up in Nov.

DA.GOV.PH

WHOLESALE PRICES of rice posted sharp year-on-year declines in November, while corn prices inched up, according to preliminary data from the Philippine Statistics Authority (PSA).

The PSA said the national average wholesale price of well-milled rice declined 15.6% from a year earlier to P40.28 per kilo.

The biggest decline in wholesale prices for well-milled rice in November was logged in the Bicol Region, falling 20.4% to P37.36 per kilo. Meanwhile, wholesale prices in the National Capital Region rose 8.6% to P51.58 per kilo.

Average wholesale prices of regular-milled rice in November also fell 18.8% to P35.65 per kilo.

The Cagayan Valley saw the biggest decline in wholesale prices of regular-milled rice, with the regional average falling 26.4% to P30.7 per kilo.

Premium and special rice also recorded wholesale price declines, with national averages falling 12.4% and 8.9%, respectively.

Meanwhile, the national average wholesale price of yellow corn grains in November rose 16.9% from a year earlier to P23.82 per kilo. For white corn grains, average wholesale prices rose 30.7% to P24.54 per kilo.

Wholesale prices of yellow corn and white corn grits in November increased 1.5% and 2.9% year on year, respectively. — Vonn Andrei E. Villamiel

Anti-corruption body needs full powers — business groups

PRESIDENTIAL COMMUNICATIONS OFFICE

TWENTY business groups called for the creation of a fully empowered anti-corruption body to deal with the multi-billion public works scam.

“Our country urgently needs a far more empowered, broad-based, and truly independent anti-corruption body — one that is equipped with the mandate and authority that the current Independent Commission for Infrastruc-ture (ICI) does not possess,” they said.

In particular, the groups, which include the Management Association of the Philippines (MAP) and the Makati Business Club (MBC), sought the urgent passage of bills that will create the Independent People’s Commission (IPC) and the Independent Commission Against Infrastructure Corruption (ICAIC).

“We also urge President Ferdinand R. Marcos, Jr. to certify the bills as urgent,” the groups added.

They said the ICI currently functions in an advisory capacity, with the power to request the presence of resource persons and recommend courses of action, including the filing of charges, the seizure of assets, or the issuance of hold-departure orders.

The ICI cannot act decisively on its own, unlike the proposed IPC or ICAIC, which will have full investigative and prosecutorial powers.

“A fully empowered IPC or ICAIC will strengthen the capacity of the Ombudsman and the Department of Justice to pursue corruption cases more effectively and restore credibility to the pursuit of integrity in public service,” they said.

“At a time when blatant and widespread misuse of public funds has eroded confidence in our institutions, our nation is confronting a profound crisis of public trust,” they said.

“The Filipino people deserve nothing less than the full truth. A truly independent IPC or ICAIC will guarantee transparency and accountability — no cover-ups, no sacred cows, no political maneuvering,” they added.

The other signatories to the statement were the Bankers Association of the Philippines, Cebu Business Club, Cebu Chamber of Commerce and Industry, Cebu Leads Foundation, Connected Women, and Federation of Filipi-no-Chinese Chamber of Commerce and Industry, Inc.

They also include the Federation of Philippine Industries, Filipina CEO Circle, Financial Executives Institute of the Philippines, FinTech Alliance Philippines, Institute for Solidarity in Asia, Institute of Corporate Directors, and NextGen Organization of Women Corporate Directors.

Also signing were the People Management Association of the Philippines, the Philippine Association of Securities Brokers and Dealers, Inc., the Philippine Women’s Economic Network, the Shareholders’ Association of the Philip-pines, and the UP School of Economics Alumni Association. — Justine Irish D. Tabile

BoI says Spain’s Grupo Enhol eyeing RE projects

A SPANISH energy firm is looking at the Philippines for renewable energy (RE) projects as it expands in the Asia-Pacific, the Board of Investments (BoI) said.

In a statement on Wednesday, the BoI said it met with officials from Grupo Enhol at an investment briefing organized by Philippine Ambassador to Spain Philippe J. Lhuillier.

“Grupo Enhol, which is expanding its operations in the Asia-Pacific region, is considering the Philippines for RE projects and related energy storage systems and energy infrastructure projects,” the BoI said.

The meeting was also attended by representatives from the Department of Energy, the Global Capability Center Council Philippines, and the Bureau of Internal Revenue.

“The meeting focused on presenting Philippine opportunities in RE and its value chain, global shared services capabilities, and government support and facilitation services for foreign investors,” the BoI said. — Justine Irish D. Tabile

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